ZTO Express (Cayman) Inc.

Good day, and welcome to the ZTO Express fourth quarter and fiscal year 2025 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. We do ask you please limit yourself to two questions. Please also note today's event is being recorded. I would now like to turn the conference over to Sophie Lee, head of capital markets. Please go ahead.

Thank you, Rocco. Hello, everyone, and thank you for joining us today. The company's results and the investor relations presentation were released earlier today. and available on the company's IR website at ir.cto.com. On the call today from CTO are Mr. Mason Lai, Chairman and the Chief Executive Officer, and Mrs. Huiting Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Mrs. Yan, who will go through the financials and guidance. They will both be available to answer your questions during the Q&A session that follows. I remind you that this call may contain forward-looking statements made under the Safe Harbor Probations of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control. which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding this and other risks, uncertainties, and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under law. It is now my pleasure to introduce Mr. Mason Lai. Mr. Lai will read through his prepared remarks in their entirety in Chinese before I translate for him in English.

大家好,感谢各位参加今天的电话会议。 2025年四季度,快递行业整体业务量同比增长5%, 行业增长就有所放缓, 中通保持行业领先的服务水平, In 2015, Our express delivery industry has achieved a steady growth of 13.6% overall. Our business has reached a 200 billion profit margin. In the third quarter, the relevant departments of the country have focused on comprehensively advocating for the internal roll-out and strengthening the base name insurance, which has set a direction for the health and sustainable development of the industry. The overall price level of the express delivery market has risen steadily. The development of the industry by pursuing a new stage of development that accelerates the mass scale. In the whole year of 2025, Zhongtong completed 385,000 businesses, and the market share was the same as last year. In the key stage of the growth of the industry, Zhongtong's high-quality development strategy, continuous deepening and differentiating products and ability construction, has achieved solid results. In the face of the competitive situation, the Chinese Communist Party has responded to the call of the country to take the lead in maintaining the stable development of the industry. With its strong infrastructure, digital transport and management capabilities, it maintains the advantages of quality, scale, and profit level. The annual retail business volume has increased by 46%, far exceeding the overall number of e-commerce stores. The hot retail business volume of the four systems The improvement is nearly 10 million units. The optimization of the product structure has improved the brand's awareness and customer confidence, and has supported the growth of the express core business, relieving the pressure of increase and decrease. At the same time, we continue to strengthen the standardization and system of transportation in all areas. The performance of operation is increased simultaneously with service efficiency. All-year single-voting support and division costs fell by six points. With stable management costs, the net profit reached 9.5 billion yuan after the year-end adjustment. As of 2026, the express industry will rely on the steady foundation of the macroeconomic economy and the continuous evolution of anti-selection policies to further maintain high-quality development consensus. Of course, the market is still uncertain. 1. Increase service quality. 2. Second, Deepening the cost-effectiveness of the cost-benefit is an advantage. With the whole chain system as the core, the acceleration, the division, the delivery, and so on, we set up a standardized cost-effectiveness line, a visual contrasting method, and the cost-benefit target is penetrated into the end-of-the-line range. Through the fluctuation of the monitoring deepening chain, we achieve the best performance of the industry cost-effectiveness. 3. Improve network policy and establish support, focus on business volume, steady growth, and increase cost-effectiveness. 4. Enhance the analysis of the market after share price, ensure the effectiveness of share support, establish resources, and accurate investment. 5. Keep a fair and fair direction, ensure network stability, maintain the rights and rights of partners, and balance the distribution of profits. The long-term development of the Chinese fast food industry is still good. The competitive attitude will steadily move towards rationality. As the head company continues to return to its internal values, The industry will continue to diversify and increase its concentration. The CCP's strategy for long-term development, service quality, market share, reasonable profits, are three in one. In the industry, there is an expansion of the scale, and a change of value return. We insist on bringing the two together to expand the diversified and differentiated products and services, and build a scale base. We will rely on the idea of sharing with each other, and use the spirit of the snake to carry out the mission of making more people happy. Thank you, Chairman Lai. Please allow me to translate first.