The meeting introduced the company's financial results for the second quarter and half year of 2025, emphasized business operations highlights and financial guidance, reminded attendees about the risks of forward-looking statements, and arranged a Q&A session to address investors' questions.

In the second quarter, the express delivery industry maintained strong growth momentum, with a year-on-year increase in business volume of 17.3%. CTO adhered to the principle of quality first, with parcel volume increasing by 16.5% year-on-year to reach 985 million, and the market share slightly increased due to its industry-leading service level. Despite intense market competition, CTO still achieved an adjusted net profit of 2.05 billion RMB. While the proportion of light parcels increased, CTO experienced lower than expected parcel volume growth in some regions due to intense price competition, however, retail parcel volume for CTO significantly increased.

By continuously improving service quality and efficiency, optimizing business structure, achieving an increase in the proportion of retail parcel volume and cost savings, strengthening network partnerships for mutual benefit, and ensuring long-term stable development.

By systematically optimizing network policies, achieving cost transparency and market adaptability, avoiding excessive subsidies; improving the efficiency of last-mile delivery, reducing menu workload, and lowering costs; incentivizing retail response and fulfillment, unifying goals, increasing profit distribution, enhancing employee autonomy and customer loyalty, thus gaining an advantage in price competition.

The conversation reviewed the development process of China's express delivery industry, emphasizing ZTO's leading position in the industry and its strategy of enhancing logistics solutions through digitalization and intelligence. Facing the challenges of the new economic environment, ZTO firmly believes in the growth potential of China's express delivery and logistics industry. They are committed to long-term strategic goals, aiming to achieve a win-win situation of social value and shareholder returns through strong financial support and cooperation with partners. In the future, ZTO will continue to optimize small parcel delivery services, integrate community resources, enhance consumer connectivity efficiency, strengthen the common mission of internal employees and partners, address social issues, improve quality of life, and bring about a broader sense of happiness.

ZTO Express reported its second quarter financial performance, including a 16.5% increase in parcel volume to 9.8 billion, a 26.8% decrease in adjusted net profit, and a 1.3% increase in revenue. In terms of cost control, unit costs increased by 7 cents to 89 cents, but some costs have decreased thanks to automation and efficiency improvements. Looking ahead, the parcel volume forecast range has been adjusted to 3.88 billion to 4.01 billion, emphasizing a quality-first strategy, with expected annual capital expenditure of 5.5 billion to 6 billion.

The conversation discussed the uncertainty of market growth in the industry for the second quarter, including the impact of macroeconomic environment and competitive dynamics, while emphasizing the application of AI in improving service quality and cost efficiency, such as intelligent planning, customer service automation, and knowledge base query systems, demonstrating the positive transformation of technology in the logistics field.

Discussed the slight price increase in the Guangdong express delivery industry since August 5th, believing that this is a positive signal of short-term behavior shifting towards high-quality service. The price increase has had a significant effect in relieving pressure on branches and couriers, and it is expected that there is a good possibility for the price adjustment to continue, which will benefit the company's profit increase.

Discussed the current situation and future trends of price competition in the express delivery industry, pointing out that low-price competition is not sustainable and needs to shift towards competition based on value and capabilities. Mentioned progress in cooperation with autonomous vehicles, emphasizing their importance in improving the efficiency and cost-effectiveness of the last mile. Also explored possibilities for further increasing shareholder returns, including dividend distribution and share buyback plans.

CTO enterprises have successfully entered the commercial testing phase of autonomous vehicles, collaborating with industry leaders to develop and apply AI technology in practical scenarios. With its internal services and mapping qualifications, the company has developed high-precision maps to support the delivery process, completed digital modeling of over 50 sorting centers, and enabled remote intelligent monitoring. Over 700 outlets in more than 200 cities have deployed over 2,000 autonomous vehicles, significantly reducing costs. The headquarters is accelerating promotion, providing centralized procurement and discounts, assisting in road access negotiations, and continuously improving network efficiency and core competitiveness.

The company has reached a strategic partnership with a leading autonomous driving vehicle enterprise, jointly researching the information of autonomous driving vehicles in the last mile delivery scene to enhance performance and reliability. At the same time, the company has established an autonomous driving vehicle logistics platform, promoting industry standardization, and cooperating with multiple autonomous driving enterprises, planning to expand to more cities in the future to achieve autonomous delivery of over 200,000 parcels per day. Additionally, the company is gradually increasing shareholder returns through dividends and stock buybacks, closely monitoring market trends and stock performance, and properly arranging capital flow structures to increase shareholder value.

Discussed the impact of price adjustments on overall growth in the e-commerce industry, emphasized the importance of service quality and differentiated products, proposed that the industry should shift from price competition to improving service quality to achieve sustainable growth, while the government should pay attention to extreme low-price behavior, protect the interests of operators, and promote the healthy development of the industry.

In the closing remarks, the speaker thanked all participants for their contributions, emphasized the expectations for further communication, and officially concluded the meeting, wishing everyone a wonderful day.