ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO to announce second quarter and half-year 2026 financial results. All participants will be in a 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 1 on your touchtone phone. And to withdraw your question, please press star then 2. Please limit yourself to two questions. And please note that this event is being recorded. I would now like to turn the conference over to Ms. Sophie Li, Company Secretary. Please go ahead.

Thank you, Chuck. 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. Meisong Lai, Chairman and the Chief Executive Officer, and Mrs. Huiping 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 provisions of the Private Security 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 the result of new information, future events, or otherwise, except as required under law. It is now my pleasure to introduce Mr. Meisong 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。

In the second quarter of 2026, the business volume of the courier industry increased by 4.2% at the same time. With the continuation of the anti-selection policy, the market competition gradually returned to rationality. The overall price and profit level of the industry are steadily improving. The entire industry has been fighting for size and price since the past. and many others. The core business indicators of the Sino-Tung-2 system have made a sharp progress. Business volume reached 104.9 billion lines and growth rate increased by 6.5%, market share increased by 0.4%, and many more. After adjustment, the net profit is 30.9 billion yuan, which is 50.3% of the total profit growth. The profit strength is verified again. The retail business is 47% of the total profit growth. The high-value diversified business continues to grow to widen the collection channel. This system Thank you for watching. Please subscribe to our channel for more videos. and many other partners are working together to improve the five-dimensional system of the product structure. In addition, we are working with more than 10,000 business owners and couriers. First of all, the industry is under the control of the island, and the anti-insurgency policy has become commonplace. The CCP is determined to maintain a good industry competition. and Jiamengshan, which is a three-party platform. It is a sustainable network ecosystem that can be shared and developed by all parties. Fourth, the company has always been a long-termist. It simply pursues a large-scale initial development model. Not only does it hinder the development foundation of the medium and long-term system, but also the competitive advantage. We will steadily grow our late profit and loss. Express Pennsylvania Inc. Inc. Inc. 4. Improving the management of operation and management to the end point. We have established a standardized operating data expansion system. and many more. In this way, it is possible to achieve a sustainable, sustainable, sustainable, sustainable, sustainable, sustainable, sustainable, sustainable and Zhezhe Business Group. The single business wave in the middle of China has strengthened the strength of the whole network. However, the Chinese express industry has already said goodbye to the simple scale competition. It is the new stage of high-quality and sustainable development, which surrounds the two high and low strategic core, that is, high-quality service, high-quality share and low full chain cost. Sustainable Zhongtong will continue to promote the following five core tasks. First, maintain the competitive environment of the industry. Strictly follow the rules and regulations. Lead the way in promoting the overall competitive system of the industry and improving it rapidly. Second, maintain the comprehensive competitiveness of the service sector in terms of service, share, cost, and three-in-one. The service sector focuses on strengthening the ability of top-level services. 3. 垃圾全网经营管理水平,统一全网政策标准 4. 深化素质化运营和赋能 and many more. 5. Ensure the safety and control of the whole network, and ensure the safety and control of the whole network. Yasheng Geqi Guanli Zeren, Nian Shou, Shen Chang, Yong Gong, Sui Wu, etc. He Guihongjie, Chi Xu Youhua, Ye Wu Yuan, Jilei Li, Fen Pei Jishi, Bao Zhan, Jicheng Chongye Zhe, He Li, Shou Ruo, He Yu, He Fa Quan Ye 20多年一路走来,我们经历过逆境,也经历过这类市场竞争的锤炼我们始终看得明白,规模则是几股,质量才是根本 We adhere to the concept of sharing the same building with reasonable profits in the market segment, reasonable profits in the market segment, and the concept of developing the same building to share the same building. Cashiers are the whole of the same life project. Only by jointly improving the business effect, rationalizing the distribution of interests, and organizing the network can we act on our own will. We hope to use our products to build the strength of more people's happiness, to rely on the firm foundation, the stable financial strength, the quality of the food, the quality of the food, and the stability and stability of the network. We are confident and capable of achieving the stable development of the whole network. Thank you Chairman Lai. Now let me do a translation first. Hello everyone, thank you for joining today's conference call. In the second quarter of 2026,