ZTO Express (Cayman) Inc (ZTO) 2023 Q1 法說會逐字稿

Good day and welcome to the ZTO Express First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到中通快遞 2023 年第一季度財務業績電話會議。所有參與者都將處於只聽模式。 （操作員說明）在今天的演示之後，將有機會提問。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Sophie Li, Company Secretary. Please go ahead.

我現在想將會議轉交給公司秘書 Sophie Li。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today.

謝謝你，運營商。大家好，感謝您今天加入我們。

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.

公司的業績和投資者關係介紹已於今天早些時候發布，可在公司的 IR 網站 ir.zto.com 上查閱。

On the call today from ZTO are Mr. Meisong Lai, Chairman and Chief Executive Officer and Ms. Huiping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Ms. 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.

今天接到中通電話的有董事長兼首席執行官賴美松先生和首席財務官嚴惠萍女士。賴先生將簡要概述公司的業務運營和亮點，隨後嚴女士將介紹財務和指導。在接下來的問答環節中，他們都可以回答您的問題。

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, out 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 US 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.

我提醒您，本次電話會議可能包含根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的前瞻性陳述。此類陳述基於管理層當前的預期以及當前的市場和運營狀況，並與涉及已知事件的事件相關或未知的風險、不確定性和其他因素，其中許多因素難以預測，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與前瞻性陳述中的結果、業績或成就存在重大差異。有關此風險和其他風險、不確定性和因素的更多信息包含在公司提交給美國證券交易委員會的文件中。公司不承擔因新信息、未來事件或其他原因而更新任何前瞻性陳述的任何義務，除非法律要求。

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.

現在我很高興向大家介紹賴美松先生。在我翻譯成英文之前，賴先生會用中文完整地閱讀他準備好的發言稿。

(foreign language)

（外語）

Thank you Chairman Lai and let me translate first.

謝謝賴主席，讓我先翻譯一下。

Hello, everyone, and thank you for joining us on today's conference call. In the first quarter of 2023, our business volume reached 6.3 billion, up 28.5% year-over-year and our market-share increased by 1.8 percentage points over the same period last year. We maintained our industry-leading service quality ranking while at the same time, achieved an adjusted net income of RMB 1.92 billion, up 82% year-over-year. In the first quarter of 2023, the express delivery industry volume increased nearly 11% over last year. Successfully facing market opportunities, ZTO delivered on a set of strong performance results in accordance with our consistent core strategy of accelerating market share growth while maintaining high-quality service and achieving targeted earnings through implementation of the following specific tasks.

大家好，感謝您參加今天的電話會議。 2023年一季度，我們的業務量達到63億元，同比增長28.5%，市場份額同比提升1.8個百分點。我們保持行業領先的服務質量排名，同時實現調整後淨收入人民幣19.2億元，同比增長82%。 2023年一季度，快遞行業業務量同比增長近11%。中通通訊成功面對市場機遇，按照一貫的核心戰略，加快市場份額增長，保持優質服務，實現目標收益，通過實施以下具體工作，取得了良好的業績。

First, we revised the target setting methodology by referencing the existing market-share versus merely based on growth rate, paying particular attention to relatively low spending regions to reduce their lag. We categorized our franchisee partners and designed appropriate policies to match their unique business profiles. We increased communication effort to explain the intention of the change and pointing out the repeatability year after year hence effectively alleviate their concerns, so as support had with reservation.

首先，我們通過參考現有市場份額而不是僅基於增長率來修改目標設定方法，特別關注支出相對較低的地區以減少其滯後。我們對特許經營合作夥伴進行了分類，並設計了適當的政策以匹配他們獨特的業務概況。我們加大溝通力度，逐年說明變更意圖，指出可重複性，有效緩解他們的顧慮，支持有保留。

Secondly, regarding revenue, we refined our volume, cost of profit, analytics and implemented managerial towards across the network to further improve the effectiveness of transit fee pricing to cover associated operating cost. In conjunction with continued effort to optimize KA customer mix, we were able to in-house structure of revenue and quality of earnings.

其次，在收入方面，我們改進了我們的數量、利潤成本、分析並實施了對整個網絡的管理，以進一步提高中轉費定價的有效性，以覆蓋相關的運營成本。結合不斷優化 KA 客戶組合的努力，我們能夠在內部調整收入結構和盈利質量。

Third, from the perspective of cost, on one-hand, we benefited from better economies of scale, given higher package volume, on another hand, we were able to improve the efficiency in escalating operational anomalies and address problems more effectively where process date are chased to workstation or video operator, thanks to several standardization initiative we started in the second-half of last year, which provided us action level visibility and quantification to manage productivity.

第三，從成本的角度來看，一方面，我們受益於更好的規模經濟，更高的包裹量，另一方面，我們能夠提高處理操作異常的效率，並更有效地解決流程日期不對的問題。得益於我們在去年下半年啟動的多項標準化計劃，追逐到工作站或視頻操作員，這為我們提供了行動級別的可見性和量化來管理生產力。

Fourth, high service quality is a prerequisite for price premiums, network stability and consistent market share expansion we continue to refine the design of quality-control points to improve standardized execution throughout the whole process of pickup, rotation, transit and delivery, addressing root causes and in short timelines and overall customer satisfaction.

四、高品質服務是價格溢價、網絡穩定、市場份額持續擴大的前提 我們不斷細化品控點設計，提升提貨、周轉、中轉、派送全流程標準化執行，從根本上解決問題並在短時間內和整體客戶滿意度。

Entering into the second quarter, we observed that the industry's performance was reasonably fair relative to last year's low-base. With improved consumer confidence and the further recovery of national economy, we believe the express delivery industry regaining steady growth momentum. Meanwhile, ZTO shall maintain internally focused to improve operational safety and network stability.

進入二季度，我們觀察到行業表現相對於去年的低基數來說還算可以。隨著消費者信心的改善和國民經濟的進一步復甦，我們相信快遞行業將重拾穩步增長的動力。同時，中通將保持對內專注，提昇運營安全和網絡穩定性。

By keeping the pedal to the metal, we will carry-out the following important work. Number-one, drive full implementation of last-mile policies that assures short that pass-through of market pricing into the hands of couriers. We are cultivating a mini platform, (inaudible) for all the operators to promote entrepreneurship, hence increase couriers income as well as proportion of the ZTO's retail to (inaudible) volume. Number two; strengthening capability of the entire network, particularly in power of our network partners and all is to establish capacity for direct linkage. Our goal is to increase market coverage and the penetration of our time-definite products which will help improve profitability. Number three, in-house capability of delivery to door to improve overall value-add and quality of services, however last-mile posts. We aim to go from help addressing industry-wide challenges in delivery costs and lightening the workload for delivery personnel to be development of multi-faceted product and service solutions for last-mile customers.

通過將踏板保持在金屬上，我們將執行以下重要工作。第一，推動全面實施最後一英里政策，確保將市場價格快速傳遞到快遞員手中。我們正在為所有運營商培育一個迷你平台，（聽不清）以促進創業，從而增加快遞員收入以及中通零售佔（聽不清）量的比例。第二;加強整個網絡的能力，特別是在我們的網絡合作夥伴和所有的權力是建立直接聯繫的能力。我們的目標是增加市場覆蓋率和限時產品的滲透率，這將有助於提高盈利能力。第三，內部送貨上門的能力，以提高整體增值和服務質量，但最後一英里的職位。我們的目標是從幫助解決全行業的交付成本挑戰和減輕交付人員的工作量，發展到為最後一英里客戶開發多方面的產品和服務解決方案。

Since its establishment in 2002, ZTO has always adhered to the philosophy of shared success, paid attention to infrastructure development and their efficient utilization to establish our competitive advantage and we have consistently stayed relevant in promoting fair and equitable sharing of benefits amongst all participants of our business endeavors. Our leading position at present in the express industry in terms of service quality, scale and the profitability is the result of a common goal and the concerted win-win cooperation that everyone under the ZTO brand. If we actually build our relative success in the industry for the past 10 years to the more effective linkage between headquarter in sortation centers, then our competitive moat for our next-stage of growth and the development would largely be dependent on whether we are able to build cohesiveness and the streamlined connection among sorting centers albeit last-mile couriers and our customers.

中通自2002年成立以來，始終秉承共享成功的理念，注重基礎設施建設和高效利用，建立競爭優勢，始終致力於促進參與各方公平、公正地分享利益。商業努力。我們在服務質量、規模和盈利能力方面目前在快遞行業處於領先地位，是中通品牌下大家同心協力、齊心協力、合作共贏的結果。如果我們將過去 10 年在行業中的相對成功建立在總部與分揀中心之間更有效的聯繫上，那麼我們下一階段的增長和發展的競爭護城河將在很大程度上取決於我們是否能夠建立凝聚力和分揀中心之間的流線型連接，儘管是最後一英里的快遞員和我們的客戶。

We are confident in the growth prospects of China's express delivery industry. Staying practical and improving digitization and the data-driven process improvements while continuously enhance ZTO's competitive edge. Altruistic service mindset will propel us to grow our business base and strong as well as to take on greater responsibility towards the country and the society. The balanced approach and increases in service quality, scale and reach for higher earnings will bring about meaningful payback, so everyone who participates support and invest in that.

我們對中國快遞行業的發展前景充滿信心。務實推進數字化和數據驅動的流程改進，不斷提升中通的競爭優勢。利他的服務心態將推動我們壯大我們的業務基礎和強大以及對國家和社會承擔更大的責任。平衡的方法和提高服務質量、規模和範圍以獲得更高的收入將帶來有意義的回報，因此每個參與的人都支持並投資於此。

With that, let's welcome Ms. Yan to introduce the financial results and status of ZTO.

至此，有請閆女士介紹中通的財務業績和現狀。

Thank you, Sophie. Thank you, Chairman. Hello everyone on the call. As I go through our financials, please note that, unless specifically mentioned, all numbers quoted are in RMB and percentage changes refer to year-over-year comparisons. Detailed analysis of our financial performance, unit economics and cash-flow are posted on our website and I'll go through some of the highlights here.

謝謝你，蘇菲。謝謝主席。大家好。在我查看我們的財務數據時，請注意，除非特別說明，否則所有引用的數字均以人民幣為單位，百分比變化指的是同比比較。我們的財務業績、單位經濟效益和現金流量的詳細分析已發佈在我們的網站上，我將在這裡介紹一些要點。

In the first quarter, ZTO maintained profitable growth, thanks to sound execution of our consistent corporate strategy. With industry-leading ranking in quality of services, our parcel volume grew 20.5% to RMB 6.3 billion, expanding our market share by 1.8 points to 23.4% compared to the first quarter last year. We delivered a strong adjusted net income growth over 82% to reach RMB 1.92 billion. Total revenue increased 13.7% to RMB 9 billion. ASP for the core express delivery business decreased 3.7% or RMB 0.05 resulted mainly from lower average weight per parcel, increase in volume incentives and mix-shift due to decrease in KA volume, all of the above absorbing positive impact from more effective network pricing. As a note, KA revenue includes delivery fees, as KA revenue as a percentage of total revenue decreases, ASP decreased because the rest of the revenue is reported net of delivery fees.

一季度，得益於公司一貫戰略的良好執行，中通實現了盈利增長。憑藉行業領先的服務質量排名，我們的包裹量增長 20.5% 至人民幣 63 億元，市場份額比去年第一季度擴大 1.8 個百分點至 23.4%。我們實現了超過 82% 的強勁調整後淨收入增長，達到人民幣 19.2 億元。總收入增長 13.7% 至人民幣 90 億元。核心快遞業務的平均售價下降 3.7% 或人民幣 0.05 元，主要是由於每個包裹的平均重量下降、數量激勵增加以及 KA 數量減少導致的混合轉移，所有這些都吸收了更有效的網絡定價的積極影響。請注意，KA 收入包括運費，因為 KA 收入佔總收入的百分比下降，ASP 下降，因為其餘收入是扣除運費後報告的。

Total cost of revenue was RMB 6.5 billion, which increased 2.8%, because of scale, leverage and meaningful productivity gain. Overall unit cost of revenue for the core express delivery business decreased 12.8% or RMB 0.14. Specifically, line-haul transportation cost per parcel decreased 10.6% to RMB0.51, driven by real-time data monitoring and analytics to optimize resource utilization, route planning and load rate. Unit sorting cost decreased 11.1% to RMB 0.32, thanks to continued standardization in sortation procedures and improved productivity with better resource deployment. As a result, gross profit increased 55.8% to RMB 2.5 billion because of increased revenues and cost productivity gain.

總收入成本為人民幣 65 億元，增長 2.8%，原因是規模、槓桿和生產率顯著提高。核心快遞業務的整體單位收入成本下降 12.8% 或 0.14 元人民幣。具體而言，在實時數據監控和分析優化資源利用、路線規劃和裝載率的推動下，每個包裹的長途運輸成本下降 10.6% 至人民幣 0.51 元。單位分揀成本下降 11.1% 至人民幣 0.32 元，這得益於分揀程序的持續標準化以及通過更好的資源配置提高了生產力。因此，由於收入增加和成本生產率提高，毛利增長 55.8% 至人民幣 25 億元。

Gross profit margin rate increased 7.6 points to 28.1%. SG&A expenses excluding SBC compensation as a percentage of revenue grew 0.3 points to 5.9%, demonstrating a stable and sound corporate cost structure. Consistent with gross profit, income from operations increased 74.7% to RMB 2 billion and associated margin rate grew 7.6 points to 21.7%. Again, adjusted net income increased 82.1% to RMB 1.9 billion and adjusted net income margin grew 8.1 points to 21.4%. Operating cash flow grew 147.7% to RMB 2.7 billion. Capital expenditure totaled RMB 2.3 billion and we anticipated annual CapEx in 2023 to be in the range of RMB 6.5 billion to RMB 7.5 billion.

毛利率上升7.6個百分點至28.1%。不包括 SBC 薪酬的 SG&A 費用佔收入的百分比增長 0.3 個百分點至 5.9%，表明公司成本結構穩定且良好。與毛利一致，經營收入增長 74.7% 至人民幣 20 億元，相關利潤率增長 7.6 個百分點至 21.7%。同樣，調整後淨利潤增長 82.1% 至人民幣 19 億元，調整後淨利潤率增長 8.1 個百分點至 21.4%。經營現金流增長 147.7% 至人民幣 27 億元。資本支出總計人民幣 23 億元，我們預計 2023 年的年度資本支出將在人民幣 65 億元至 75 億元之間。

Taking into consideration the current market condition and our operations, we are raising our annual parcel volume projection to be in the range of RMB 29.27 billion to RMB 30.24 billion, representing a 20% to 24% increase year-over-year. We remain committed to increase our market share by at least 1.5 percentage points for 2023, while maintaining high-quality of services and customer satisfaction and achieving optimal earnings growth for the year. These estimates represent management's current and preliminary view, which are subject to change.

考慮到當前的市場狀況和我們的運營，我們將年度包裹量預測上調至人民幣 292.7 億元至人民幣 302.4 億元，同比增長 20% 至 24%。我們仍然致力於在 2023 年將我們的市場份額增加至少 1.5 個百分點，同時保持高質量的服務和客戶滿意度，並實現全年最佳收益增長。這些估計代表管理層的當前和初步觀點，可能會發生變化。

This concludes our prepared remarks. Operator, please open the lines for questions. Thank you.

我們準備好的發言到此結束。接線員，請打開問題線路。謝謝。

We will now begin the question-and-answer session. (Operator Instructions) And our first question will come from Ronald Keung of Goldman Sachs.

我們現在開始問答環節。 （操作員說明）我們的第一個問題將來自高盛的 Ronald Keung。

So I have two questions. One is about the unit cost that we have done definitely well in cutting unit costs down. So can you go through just whether this 10% improvement in the unit cost, particularly in trucking and sorting, whether that could be sustainable particularly heading into the few quarters, whether the unit cost improvement will continue.

所以我有兩個問題。一是關於單位成本，我們在降低單位成本方面做得非常好。那麼你能不能看看這 10% 的單位成本改善，特別是在卡車運輸和分揀方面，這是否可持續，特別是進入幾個季度，單位成本改善是否會繼續。

Second is, can you just share how you see the latest competitive landscape, particularly for the industry given some of the many companies are talking about focusing a bit more on market share this year, not just on the profitability. And therefore, how do we see the compared landscape when parcel growth is lapsing the easiest low-base over the past one or two months now we are having less EV base now. So let me let me translate my question. (foreign language)

其次，您能否分享一下您如何看待最新的競爭格局，特別是對於該行業，鑑於許多公司中的一些公司今年正在談論更多地關注市場份額，而不僅僅是盈利能力。因此，當包裹增長在過去一兩個月中跌破最簡單的低基數時，我們如何看待比較情況，現在我們的電動汽車基數越來越少。所以讓我翻譯一下我的問題。 （外語）

(foreign language) So for the first part you asked about the unit cost and also to expectation for it to continue, Chairman had described that indeed our performances has been quite well for the first quarter and as we look at the sequential improvement there are also present, but certainly the year-over-year comparisons is much more significant, if you look at the first quarter. The first quarter unit cost for transportation and sorting combined decreased by RMB 0.10 year-over-year. On one-hand, the impact of the pandemic in the same period last year suppressed the economy of scale and productivity was not fully demonstrated. On the other hand, since the second half of last year, we have began proactively taking a series of cost optimization measures, which have had sustained effects coming into the rest of the quarter, including this quarter.

（外語）因此，對於第一部分，您詢問了單位成本以及對它繼續下去的期望，主席已經描述了我們第一季度的表現確實非常好，而且當我們看到連續改進時，也有目前，但如果您看一下第一季度，那麼與去年同期相比肯定要重要得多。一季度運輸和分揀合計單位成本同比下降0.10元。一方面，去年同期疫情的影響打壓了規模經濟，生產力沒有得到充分體現。另一方面，從去年下半年開始，我們開始積極採取一系列成本優化措施，這些措施在本季度的剩餘時間裡產生了持續的影響，包括本季度。

In Q1, the transportation cost per parcel decreased RMB 0.06 to RMB 0.51 in the sorting cost decreased RMB 0.04 to RMB 0.32. And the reason mainly are some of the things that we've done is with regards to our digitalization and refined management in process of productivity gain. In terms of the transportation, for example, we optimized redundant drivers by matching routes with the equipment and the personnel. We implemented standard fuel consumption management to reduce fuel cost, as you know that all the data are on the dashboard, so that we are able to monitor and compare. In addition, we have developed ability to start to an extent dynamically planning our truck routes so as to meet the demand in business volume and as it fluctuates, we are able to also better optimize the utilization of the capacity, hence improving our low rate.

一季度，單件運輸成本下降0.06元至0.51元，分揀成本下降0.04元至0.32元。原因主要是我們所做的一些事情是關於我們在提高生產力過程中的數字化和精細化管理。例如在交通方面，我們通過設備和人員的路線匹配優化冗餘司機。我們實施了標準的油耗管理，以降低燃油成本，大家知道，所有的數據都在儀錶盤上，便於我們進行監控和比較。此外，我們已經開發出能力開始在一定程度上動態規劃我們的卡車路線以滿足業務量的需求，並且隨著業務量的波動，我們也能夠更好地優化運力利用率，從而改善我們的低利率。

In terms of sortation we made the employee management much more scientific. As you know sortation labor costs as a percentage is the largest. On one-hand, we implemented a unit rate compensation. In other words, we pay by the quantity of processing. So you do more work and you earn more to stimulate employees working enthusiasm. On the other hand, we improved labor efficiency through optimized scheduling and utilized more skilled hired worked instead of temp workers.

在分類方面，我們使員工管理更加科學。如您所知，分揀人工成本所佔百分比是最大的。一方面，我們實施了單位費率補償。換句話說，我們按加工量付費。讓你多幹活多掙錢，激發員工的工作積極性。另一方面，我們通過優化調度提高了勞動效率，並使用更多熟練的僱傭工而不是臨時工。

Standardization and digitization is certainly another key contributor to our productivity gain. We took the operational process, we broke that apart and quantified indicators and conducted assessments throughout the entire progress of the package. We use digital intelligence tools to achieve data, so that we are gaining visibility into the actual production process and by comparing the completion of work and their indicators, we will then reward excellent performances and then reprimand poor performances, so as to improve the entire overall efficiency.

標準化和數字化無疑是我們提高生產力的另一個關鍵因素。我們採用了操作流程，將其分解並量化了指標，並在整個一攬子計劃的整個過程中進行了評估。我們通過數字化智能工具實現數據化，讓我們對實際生產過程的可視化，通過比較工作完成情況和指標，對錶現好的獎勵，對錶現不好的進行訓斥，從而提高整體的整體水平。效率。

If we disregard the impact of the oil price, the annual cost-reduction target for the full year is between RMB 0.05 to RMB 0.07 for cost of sortation and transportation combined. In addition to in the future the cost-effectiveness of our entire connection between sortation and the transportation as well as our expanded effort into productivity gain for our network partners, which will create streamline and enhance our cohesiveness of the entire operation, we believe the continued effort in digitalization and our expanded effort throughout the parent network will help us continue to drive productivity, certainly, without over-emphasizing that scale will continue to bring our leverage. That is for the cost side of the question.

如果不考慮油價的影響，全年分揀和運輸成本的年降本目標在0.05-0.07元之間。除了未來我們在分揀和運輸之間的整個連接的成本效益以及我們為提高我們的網絡合作夥伴的生產力而付出的更多努力，這將創造流水線並增強我們整個運營的凝聚力，我們相信持續的在數字化方面的努力以及我們在整個母公司網絡中的擴展努力將幫助我們繼續提高生產力，當然，不過分強調規模將繼續帶來我們的影響力。這是問題的成本方面。

And then for your second question relating to the market dynamics. Overall is that the market share will continue to be concentrating toward those companies who could operate with the best efficiency, with the best quality of services and the most stable network. So with that the Chairman mentioned that our overall performance and profitability, and our strategy to balance our gain on market-share, quality of services and also profitability will remain to be our focus. In the industry currently we have seen the continued acceleration of consolidation organically. The leading enterprises have more room for productivity gain and ZTO intend to maintain that leadership. Profitability of each company is also differentiated based on their ability and their results speak for itself. Focusing on our own development with the advantage of scale and efficiency and continuously depending on our digitization and process improvement, we should be able to maintain our competitive advantage.

然後是關於市場動態的第二個問題。總體而言，市場份額將繼續向那些運營效率最高、服務質量最好、網絡最穩定的公司集中。因此，主席提到我們的整體業績和盈利能力，以及我們平衡市場份額、服務質量和盈利能力收益的戰略仍將是我們的重點。在目前的行業中，我們已經看到有機整合的持續加速。龍頭企業有更大的生產力提升空間，中通打算保持領先地位。每個公司的盈利能力也根據他們的能力而有所不同，他們的結果不言而喻。以規模優勢和效率優勢著眼自身發展，持續依靠數字化和流程改進，保持競爭優勢。

The next question comes from Qianlei Fan of Morgan Stanley.

下一個問題來自摩根士丹利的範千磊。

(foreign language) I'll translate for myself. So there are two questions. The first question is about the capacity plans. So we observed that the Company has adjusted out full year volume guidance. And also in the first quarter, CapEx is being up year-on year. So wondering what's the optimized capacity plan for the next few quarters of the year. Is there any adjustment to your full year CapEx plan.

（外語）我自己翻譯。所以有兩個問題。第一個問題是關於容量計劃。因此我們觀察到公司已經調整了全年銷量指導。同樣在第一季度，資本支出同比增長。所以想知道今年接下來幾個季度的優化產能計劃是什麼。您的全年資本支出計劃是否有任何調整？

And the second question is about competition. So we observe that the first quarter market share gains faster than the 1.5 percentage point. Is management happy with the current market share advantage as well as unit profit advantage versus your peers or you think you'll be more aggressive in expanding the relative advantage compared with peers.

第二個問題是關於競爭的。所以我們觀察到第一季度市場份額的增長速度超過了 1.5 個百分點。管理層是否對當前的市場份額優勢以及與同行相比的單位利潤優勢感到滿意，或者您認為與同行相比，您會更積極地擴大相對優勢。

I'll take the first one regarding CapEx. The full year's guidance is still we are maintaining at a RMB 6.5 billion to RMB 7.5 billion for CapEx spending. If you look at last year, because of the pandemic impact volume incoming are weak. So hence we have adjusted our CapEx investment pace and in this year, certainly the first quarter based on strong volume expectations, we are adjusting it to be higher. So there are two reasons, one being the low-base and then the other is, indeed, this year we have a higher-volume incoming. Preparing for our capacity, it's important because we want to continuously monitor the best cost point or sweet-spot. For example, first quarter we have reached 85 million and above packages per day for a part of March and looking into the rest of the year we believe there are still increment to where our capacity needs to be adjusted up. So we are planning for installing more machinery and equipment to replace more costly labor and also some of our older facilities are being upgraded and expanded are gearing towards busy seasons that are coming in for the second half of the year, but certainly we will continue to monitor the growth in the volume, so as to maintain a optimal pace in CapEx investment.

我將採取第一個關於資本支出的問題。全年的指導方針仍然是我們維持在 65 億元人民幣至 75 億元人民幣的資本支出支出。如果你看一下去年，由於大流行的影響，收入很低。因此，我們調整了我們的資本支出投資步伐，在今年，當然是基於強勁的銷量預期的第一季度，我們將其調整得更高。所以有兩個原因，一個是低基數，另一個是，事實上，今年我們的進貨量更高。為我們的能力做好準備，這很重要，因為我們希望持續監控最佳成本點或最佳點。例如，第一季度我們在 3 月的部分時間每天達到 8500 萬個及以上的包裹，展望今年剩餘時間，我們認為仍有增量需要調整我們的產能。因此，我們計劃安裝更多的機器和設備來取代更昂貴的勞動力，我們的一些舊設施也在升級和擴建，以迎接下半年即將到來的旺季，但我們肯定會繼續監控數量的增長，以保持資本支出投資的最佳步伐。

(foreign language) Let me translate for the Chairman, for the second part of your question.

（外語）讓我為主席翻譯，為你的問題的第二部分。

The industry growth forecast at present, China's economy is showing signs of gradual recovery and consumers' confidence level is also expected to continue to recover in rise from March to April due to the lower base effect, the industry's growth are also exhibiting strong rebound and considering the overall low-base of last year and the current market recovery, we expect that growth will remain for the full-year around 12% to 16%. Our market share growth target is still to be no less than 1.5% gain. This strategy I think for our overall growth in terms of the policy we setup certain indicators based on the original market share that each of the region currently have and then with our new methodology to set growth goals, we focused on-market share instead of a year-over-year percentage comparison. This alleviated a lot of the concerns from our network partners, so that they will be more focused and less worried about the repeatability and let more focused on going-forward market and maintaining quality of services and so on so forth.

行業增速預測 目前，中國經濟呈現逐步復甦跡象，消費者信心水平也有望在3-4月繼續回升，因基數較低，行業增速也呈現強勁反彈，考慮鑑於去年整體低基數和當前市場回暖，我們預計全年增速仍將保持在12%至16%左右。我們的市場份額增長目標仍然是不低於1.5%的增長。這個策略我認為對於我們在政策方面的整體增長，我們根據每個地區目前擁有的原始市場份額設置某些指標，然後使用我們設定增長目標的新方法，我們專注於市場份額而不是同比百分比比較。這減輕了我們網絡合作夥伴的很多顧慮，使他們更加專注，減少對可重複性的擔憂，讓他們更加專注於前瞻性市場和維護服務質量等。

And then in terms of the policy promotion, we also paid more attention to the outlets that truly it need help as they shortened the gap compared to either our national average or regional average so that they could catch-up. The digitalization tools we are also extending that to provide visibility to our network partners so that they are able to closely see what we have that measure them upon and providing the guidance in where the problems might be. As far as what we are going to do in relative to our competitors, we will continue to focus on our own what's within our own control. Our consistent strategy has been that all three including quality of services, market share and also profitability, all these are part of the performance measure metrics, we drive for a balanced development.

然後在政策推動上，我們也更加關注那些真正需要幫助的網點，縮小與我們全國平均水平或區域平均水平的差距，以便他們能夠赶超。我們還擴展了數字化工具，以向我們的網絡合作夥伴提供可見性，以便他們能夠密切了解我們衡量他們的依據，並在可能出現問題的地方提供指導。至於我們相對於競爭對手要做的事情，我們將繼續專注於我們自己的控制範圍內的事情。我們一貫的策略是，這三者包括服務質量、市場份額和盈利能力，所有這些都是績效衡量指標的一部分，我們推動平衡發展。

Services quality is the pre-requisite our market premium to help us propel forward with greater market-share performance services as well as quality, including our empowerment to our network partners and carriers as well as the better allocation sharing of the benefit of the growth and the profit is going to help ZTO further our competitive advantage going-forward.

服務質量是我們市場溢價的先決條件，以幫助我們以更高的市場份額績效服務和質量推動前進，包括我們對我們的網絡合作夥伴和運營商的授權以及更好地分配增長和收益的分配利潤將幫助中通進一步提升我們的競爭優勢。

The next question comes from Lu Xu of Citi.

下一個問題來自花旗的陸旭。

(foreign language) Let me translate my question. So first question is regards to the ASP trend. So what are the management expectation on the ASP trend going forward this year with the decline trend continue throughout the year and in longer-term how the management build the ASP trend for next year. And also if we look at the earnings growth, is the company still confident to achieve a larger earnings growth than the parcel volume growth rate.

（外語）讓我翻譯一下我的問題。所以第一個問題是關於 ASP 趨勢。那麼管理層對今年未來 ASP 趨勢的預期是什麼，下降趨勢將持續全年，從長遠來看，管理層如何構建明年的 ASP 趨勢。而且，如果我們看一下盈利增長，公司是否仍然有信心實現比包裹量增長率更大的盈利增長。

And the second question in regards to the last-mile network development, what's the current number of the last-mile post station and the inbox or inflation rate and how could it improve on the current level. Is there a feeling for that.

第二個關於最後一公里網絡發展的問題，最後一公里郵局目前的數量和收件箱或通貨膨脹率是多少，在目前的水平上如何改進。有沒有那種感覺。

(foreign language) ASP for first quarter and full year, ASP for the first quarter decreased RMB 0.05 and so as I explained earlier, due to combined impact of package per parcel weight decline, KA as a percentage of revenue decline and then volume incentive increases all these altogether, plus or minus is some optimization of RMB 0.03 offset part of what I have described earlier is negative impact. It is expected that unit price will remain relatively stable throughout the year. ZTO has always been quarter of stable pricing and reasonable market pricing in the past and we'll continue to do so. After the first quarter results in the future, what we will plan on doing is continue to do policy-making in our product structure improvements to bring up our pricing where possible. Digitization, as mentioned earlier, helped us to make better pricing to cover cost. The pricing is done on a more granular level at ground-level. Another thing specifically, the Chairman mentioned that we are focusing on through our standardized timeliness product improvements in design, we will further introduce new way of going to market and providing differentiated products and services to our customers. More products and innovation is expected to come and this will also go hand-in-hand with our initiatives to pass-through market price to couriers, so that they are encouraged to bringing more non e-commerce packages, hence to see packages. As we continue to focus on better-quality of services in maintaining the level of customer satisfaction, we will be able to secure our premium at the marketplace. Through every segments of process improvement, we will be able to maintain such quality of services going forward.

（外語）第一季度和全年的平均售價，第一季度的平均售價下降了 0.05 元人民幣，所以正如我之前解釋的那樣，由於每包裹重量下降的綜合影響，KA 佔收入的百分比下降，然後數量激勵增加所有這些加起來或減去一些優化人民幣0.03抵消了我前面描述的部分負面影響。預計全年單價將保持相對穩定。中通過去一直是穩定定價和合理市場定價的季度，我們將繼續這樣做。在未來第一季度業績之後，我們計劃做的是繼續在我們的產品結構改進方面進行政策制定，以盡可能提高我們的定價。如前所述，數字化幫助我們制定更好的定價以覆蓋成本。定價是在地面上更精細的層面上完成的。另一件事，主席提到，我們正專注於通過我們標準化的及時性產品設計改進，我們將進一步推出新的上市方式，為我們的客戶提供差異化的產品和服務。預計會有更多產品和創新出現，這也將與我們將市場價格傳遞給快遞員的舉措齊頭並進，從而鼓勵他們帶來更多非電子商務包裹，從而看到包裹。隨著我們繼續專注於提高服務質量以保持客戶滿意度，我們將能夠確保我們在市場上的溢價。通過流程改進的每個部分，我們將能夠繼續保持這種服務質量。

(foreign language) The next part of the question relates to our last-mile posts. Since 2021, the company formed Touche and we quickly expanded our footprint through a partner network model and we have developed a reasonable set of footprint as well as capability for services with standardization. The goal of Touche is to develop a infrastructure platform, which is also open to public, open to all the express delivery companies focusing on solving the problem for the industry in terms of our cost for delivery and at the same time improve the shortcomings of the last-mile services. We have set our goals for this quarter to develop further enhance capabilities at the last-mile, including delivery to door and also our pickup at door. The services that are going to be gradually developed that is individualized to meet customers individualized demand is part of our effort, but the main focus is to first establish ability to bring the cost of delivery down because volume are continuously increasing. And then from there, we are able to then produce opportunities or create opportunities for us to provide other services including with our direct link between our destination outlets through our customers through the services of our network carriers.

（外語）問題的下一部分與我們的最後一英里帖子有關。自 2021 年公司成立 Touche 以來，我們通過合作夥伴網絡模式迅速擴大了我們的足跡，我們已經形成了一套合理的足跡和標準化服務能力。頭車的目標是開發一個基礎平台，也是對公眾開放的，對所有快遞公司開放，專注於為行業解決我們在派送成本方面的問題，同時改善快遞的短板。最後一公里服務。我們為本季度設定了目標，以進一步增強最後一英里的能力，包括送貨上門和上門取貨。將逐步開發個性化服務以滿足客戶個性化需求是我們努力的一部分，但主要重點是首先建立降低交付成本的能力，因為數量在不斷增加。然後從那裡，我們能夠為我們提供其他服務的機會或創造機會，包括我們通過我們的網絡運營商的服務通過我們的客戶與我們的目的地網點之間的直接聯繫。

I'm sorry. The comments for the growth comparisons. We have our profit growth in this quarter faster than our volume growth going into the future as we anticipate the level of revenue development and also our continued effort in cost productivity gain. We believe we are able to maintain for a period of time, growth of our revenue growth of our bottom-line faster than the topline.

對不起。增長比較的評論。我們本季度的利潤增長快於我們未來的銷量增長，因為我們預計收入發展水平以及我們在提高成本生產率方面的持續努力。我們相信我們能夠在一段時間內保持我們的收入增長快於收入增長。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉回管理層聽取任何閉幕詞。

Thank you again for everyone to join us and we have put together some of the answers for you today and we hope to answer more and have more discussions with you in the future. Thank you again.

再次感謝大家的加入，我們今天為大家整理了一些答案，希望以後能多多解答，多和大家討論。再次感謝你。

The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.

會議現已結束。感謝您參加今天的演講，您現在可以斷開連接。