ZTO Express (Cayman) Inc.

Good morning and welcome to the ZTO Express first quarter 2026 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. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Sophie Lee. Please go ahead.

Thank you, Kelly. Hello, everyone, and thank you for joining us today. The company's results and the investor relations presentation were released earlier today and are available on the company's IR website at ir.zto.com. On the call today from ZTO are Mr. Mason Lai, Chairman and the Chief Executive Officer, and Mrs. Hui-Ping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Ms. Yen, 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 provisions 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 statement 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。 2026年,一支赌在宏观经济稳中有进,消费需求持续受换的良好环境下,快递行业整体保持增长,业务量同比增长5.8%, As the industry continues to improve its internal policy, the price continues to stabilize and recover, and the competition accelerates the return of rationality, the industry's business quality significantly improves, and it creates favorable conditions for the high-quality development of the leading industry. Within the report, the company is firmly grasping the industry's future, and the core indicators are outstanding. The company's business volume reached 96.7 billion yuan, which is the same as the growth, 23.8 billion yuan, a growth of 5.2%. Based on non-management factors, after adjustment, the net profit increased by 22%, and the profit-saving capacity increased steadily. The retail business has increased by 65%, and the product structure has continued to improve. The single-vote supply and division costs have increased by six points, and the digitalization and materialization operations have been effective. The cost has been reduced, and the business has not been strengthened. With the leadership of the UAE industry, the policy environment has been established, and the operations have been efficient, and the products have been innovative. First of all, the macroeconomic economy and the consumer environment continue to improve. Online consumption is steadily growing. Industry monitoring and direction is clear. Control is accurate and effective. For the healthy and sustainable development of the express industry, we have provided a strong base and key network. Fourth, the company is firm on the policy direction, and is active in protecting the industry's positive ecology. As the head of the industry, 我们坚决拥护反内卷政策, 带头维护公平有序的市场秩序。 坚持理性竞争,价值竞争, 与全行业共建健康发展环境。 第三,公司坚守长期主义战略定力, 不追求短期接近扩张, 始终以网络健康服务提升, 盈利稳健为核心。 Fourth. Fifth. The company's urgent market demand to optimize the product structure, surround the high-value products and industry channels, and create differentiated competitiveness. Promote business from e-commerce to single-use automation to diversify the transformation of high-value institutions. The profit and loss ability is significantly enhanced. Looking at the next stage, the company will continue to focus on high-quality development as the core. to adhere to the long-term policy, focus on value creation, and focus on the following five aspects of work. First, to implement the national policy and industry supervision requirements, to continue to lead the anti-discrimination work of the industry, to maintain the positive competitive environment of the industry, and to promote the high-quality development of the industry. Second, to continue to deeply root the industry, to strengthen the internal work, not only to promote the reduction of cost-effectiveness in all aspects, Thank you. 4. 5. 6. 7. 5. Continue to improve the shareholder return level, rely on stable cash flow and good profit, and improve the standardization of cash distribution and share return support. to optimize the capital return structure and create long-term, stable, and sustainable investment returns for the stock market. Investors, the current industry is in the key transition from scale-driven to value-driven. The trend is clear. The capital value will continue to advance. The President will continue to invest in high-quality services, The first chain of costs, stable profit as the core, insisting on making three guarantees, to ensure that network partners' profit will grow steadily, ensure that business owners' income will continue to increase, ensure that Zhongtong will develop news resources. With a long-term value of pursuit of large investors, all network partners will continue to move forward. OK, let me translate first.