ZTO Express (Cayman) Inc (ZTO) 2024 Q4 法說會逐字稿

Good day, and welcome to the ZTO Express fourth quarter and full year 2024 financial results conference call. (Operator Instructions) Please also note today's event is being recorded. I would now like to turn the conference over to Sophie Li, Head of Capital Markets. Please go ahead.

大家好，歡迎參加中通快遞2024年第四季及全年財務業績電話會議。（操作員指示）另請注意，今天的活動正在被記錄。現在，我想將會議交給資本市場主管 Sophie Li。請繼續。

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 are available on the company's IR website at ir.zto.com.

謝謝你，羅科。大家好，感謝大家今天加入我們。該公司的業績和投資者關係報告已於今日早些時候發布，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 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.

中通今天參加電話會議的有董事長兼執行長賴梅松先生；以及財務長閔惠萍女士。賴先生將簡要介紹公司的業務運作和亮點，隨後嚴女士將介紹財務狀況和指導情況。他們將會在接下來的問答環節中回答您的問題。

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 the 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.

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的安全港條款所做的前瞻性陳述。此類陳述基於管理層當前的預期以及當前的市場和營運條件，並與涉及已知或未知風險、不確定性和其他因素的事件有關，所有這些因素都難以預測且其中許多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。

Further information regarding this and other risks, uncertainties and 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.

有關此風險和其他風險、不確定性的更多資訊包含在公司向美國證券交易委員會提交的文件中。除法律要求外，本公司不承擔因新資訊、未來事件或其他原因更新任何前瞻性聲明的義務。

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.

現在我很高興介紹賴梅松先生。賴先生將用中文完整宣讀他準備好的發言稿，然後我會用英文為他翻譯。

(spoken in Chinese language)

（以中文講解）

Thank you, Chairman Li. Now let me translate first.

謝謝李主席。現在我先翻譯一下。

(interpreted) Hello, everyone. Thank you for joining today's conference call. In the fourth quarter of 2024, ZTO maintained its high service quality and with a total parcel volume of RMB9.67 billion, up 11% year-over-year. we achieved an adjusted net income of RMB2.73 billion, which grew 23.4% year-over-year, further solidifying our industry-leading profitability.

（譯）大家好。感謝您參加今天的電話會議。2024年第四季，中通快遞維持高品質發展，包裹業務總量達96.7億元，較去年同期成長11%。實現調整後淨利27.3億元，較去年成長23.4%，業界領先的獲利能力進一步鞏固。

In 2024, the express delivery industry maintained relatively high growth and the overall scale exceeded expectations. Meanwhile, with frequent e-commerce promotions and the consumers' growing price sensitivity, a proportion of lower-value parcels have continued to increase, exerting downward pressure on logistics pricing. Facing challenges, ZTO stayed committed to our high-quality growth strategy.

2024年快遞業維持較高成長，整體規模超出預期。同時，隨著電商促銷活動的頻繁，消費者價格敏感度不斷提升，低價值包裹佔比不斷增加，對物流價格造成下行壓力。面對挑戰，中通始終堅持高品質發展策略。

On one hand, we accelerated the development of differentiated products and services and deepen the cooperation with e-commerce platforms. optimizing product mix as well as profitability while enhancing brand recognition and customer satisfaction. On another, we strengthened the standardization and coordination across our operational segments of our transit platform, further improved end-to-end timeliness, reduced the loss and damage and complaint rate.

一方面，我們加速開發差異化產品與服務，深化與電商平台的合作。優化產品結構和獲利能力，同時提高品牌知名度和顧客滿意度。另一方面，加強中轉平台各作業環節的標準化、協同性，進一步提升端對端時效性，降低丟損率及申訴率。

In addition, we ramped up efforts to empower our network partners, enhancing their capabilities to alleviate pickup and delivery cost pressures and improve service quality. For 2024, ZTO's annual parcel volume reached RMB34 billion, growing 12.6% year-over-year. Notably, number of retail parcels in the fourth quarter grew nearly 50%, significantly outpacing overall e-commerce parcel growth, reverse parcels for the full year more than doubled compared to last year.

此外，我們增加對網路合作夥伴的賦能，增強其緩解提貨和派送成本壓力、提升服務品質的能力。預計2024年，中通年包裹量將達340億元，年增12.6%。值得注意的是，第四季零售包裹數量成長近50%，遠超過整體電子商務包裹的成長速度，全年反向包裹數量比去年同期增加了一倍多。

The optimization of our product mix brought by an [$0.08] positive enhancement to ASP for the core express delivery business. alleviating the impact from lower average weight per parcel and the price competition. together with continued operational cost efficiency in and a stable SG&A structure, ZTO achieved an adjusted annual net income of RMB10.15 billion, increasing by 12.7% year-over-year.

由於核心快遞業務的平均售價上漲了 [$0.08] 美元，我們的產品結構得到了優化。減輕每件包裹平均重量較低和價格競爭的影響。加上持續的營運成本效率和穩定的銷售、一般及行政開支結構，中通全年實現調整後淨收入101.5億元，年增12.7%。

Entering 2025, the express delivery industry has maintained strong growth momentum. However, the trend of consumption downgrades has yet to reverse and the price competition remains intense. In such a market environment, our core focus is to align closely with market dynamics, enhance service quality, achieve a higher-than-industry average volume grow further, we must motivate and enable our network partners with fair cost bearing and profit-sharing mechanism to effectively strengthen pickup and delivery infrastructure and cost competitiveness, so as to improve market penetration for retail parcels alongside of e-commerce volume growth. And ultimately improve earnings of all is and careers, enhancing partner network stability.

進入2025年，快遞業仍保持強勁的成長動能。但消費升級下行趨勢仍未扭轉，價格競爭仍激烈。在這樣的市場環境下，我們的核心重點是緊密結合市場動態，提升服務質量，進一步實現高於行業平均的運量增長，我們必須以公平的成本分擔和利潤分享機制激勵和支持我們的網絡合作夥伴有效加強收派基礎設施和成本競爭力，從而隨著電子商務運量的增長而提高零售包裹的市場滲透率。並最終提高所有人和職業的收入，增強合作夥伴網路的穩定性。

Key initiatives include the following: First, ZTO to increase end-to-end service quality by refining operational procedures and implementing data benchmarking aligning performance with internal metrics and external indicators to optimize trans efficiency and resource utilization. Improved first average delivery ratio will boost overall timeliness and reinforce brand awareness.

主要舉措包括：首先，中通將透過改善營運流程、實施數據對標，將績效與內部指標和外部指標結合，提高端到端的服務質量，以優化運輸效率和資源利用率。提高首次平均送達率將提高整體時效性並增強品牌知名度。

Second, effectively achieve mission-critical value targets by granting full autonomy to regional management teams to stay lockstep with market changes with efficient resources, ensuring fair and transparent network policies for all and adopting tiered approaches to tapping to new customers' potentials. Joint efforts by pickup and delivery partners to effectively target incremental margin can capture volume-driven growth opportunities.

第二，透過賦予區域管理團隊充分的自主權，以高效的資源緊跟市場變化，確保對所有人來說都是公平透明的網路政策，並採用分層方法挖掘新客戶的潛力，有效地實現關鍵任務的價值目標。透過取貨和送貨合作夥伴的共同努力，有效地瞄準增量利潤，可以抓住由數量驅動的成長機會。

Third, further products and services enhancement by strengthening strategic partnership with e-commerce platforms. leveraging ZTO's integrated ecosystem resources to build comprehensive supply chain capabilities, refining differentiated products to enhance brand representation and carpet customer loyalty, fourth, improved last mile network expansion and penetration by clearly defining responsibilities of sectional coordinators to effectively execute initiatives such as profit sharing sufficiently to incentivize couriers to service retail parcels, establish direct linkage between OLED and last milepost. Integrate commercial opportunities into local living. These initiatives will help to reduce last mile costs, increased retail volume, improved profitability for alts and careers and expand consumer rates through multiple channels.

第三是加強與電商平台的策略合作，進一步提升產品與服務。依託中通綜合生態資源，打造綜合供應鏈能力，做優做強差異化產品，提升品牌影響力及地毯式顧客忠誠度；四是完善最後一公里網路拓展及滲透，明確各環節協調員職責，有效執行利潤分享等舉措，充分激勵快遞員服務零售包裹，打通OLED與最後一公里直連。將商業機會融入當地生活。這些措施將有助於降低最後一哩路的成本，增加零售量，提高替代產品和職業的獲利能力，並透過多種管道擴大消費者價格。

Last but not least, improve end-to-end timeliness and operating efficiency by implementing technology and data-driven to optimize route planning, low rates and income capacity investments or upgrades. Over the past three decades, China's express delivery industry represented largely by private enterprises has evolved through scale expansion and concentration as well as profitability divergence. ZTO's rise from the latest comer-follower to a consistent leader is not a coincidence.

最後但同樣重要的一點是，透過實施技術和數據驅動來優化航線規劃、低費率和收入容量投資或升級，提高端到端的時效性和營運效率。過去30年，以民營企業為代表的中國快遞產業經歷了規模擴張、集中度提升和獲利能力分化的演變。中通從後來者崛起為持續領先的企業並非偶然。

Regardless of how the industry landscape has shifted, ZTO's core competitiveness and from our shared success philosophy so that our partners can also win. Our entrepreneurial spirit of dedication, perseverance and focus as well as our proven ability to quickly adapt and grow through challenges and adversities.

無論產業格局如何變化，中通的核心競爭力來自於我們共同成功的理念，讓我們的合作夥伴也能共贏。我們的創業精神是奉獻、堅持和專注，以及我們在挑戰和逆境中快速適應和成長的成熟能力。

Today, we stand at a critical junction of macroeconomic and industry development. We firmly believe that China's express delivery industry and its broader logistics market hold immense growth prospects by staying committed to our focus on the industry and being our best striving for operational excellence and expanding our scale, leadership with healthy quality of earnings in sync with market dynamics and stand behind our network partners. Together, we are confident and well equipped to achieve our mission, which is to bring happiness to more people through our services.

今天，我們正站在宏觀經濟和產業發展的關鍵節點。我們堅信，透過堅持專注於行業、盡最大努力追求卓越運營、擴大規模、保持領導地位以及與市場動態同步保持健康的盈利質量以及支持我們的網絡合作夥伴，中國的快遞行業及其更廣泛的物流市場擁有巨大的增長前景。我們有信心、有能力實現我們的使命，那就是透過我們的服務為更多的人帶來幸福。

Next, let's welcome our CFO, Mrs. Yan, to present the financial results and the future plans.

接下來，我們請我們的CFO嚴女士來介紹財務業績和未來計劃。

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

謝謝賴主席，謝謝索菲。向通話中的各位問好。當我查看我們的財務報表時，請注意，特別提到的所有數字都是以人民幣計算的，百分比變化是指同比變化。詳細的財務資訊表現、單位經濟和現金流都發佈在我們的網站上，我將在這裡介紹一些亮點。

We adhered to the principle of profitable growth and continued to improve the quality of services and customer satisfaction. We attained 11% parcel growth to reach RMB9.7 billion for the fourth quarter and 12.6% or RMB34 billion for the year. Adjusted net income grew 23.4% to RMB2.7 billion and 12.7% to RMB10.2 billion for the quarter and the year, respectively. Total revenue increased 21.7% to RMB12.9 billion for Q4 and 15.3% to RMB44 billion for the year.

我們堅持獲利性成長原則，持續提升服務品質與顧客滿意度。第四季度，我們的包裹業務成長了 11%，達到 97 億元人民幣；全年成長了 12.6%，達到 340 億元人民幣。調整後淨收入本季及全年分別成長23.4%至人民幣27億元及12.7%至人民幣102億元。第四季總營收年增21.7%至129億元人民幣，全年營收年增15.3%至440億元。

ASP for the core express delivery business increased 10.3% or RMB0.13 for Q4 and 2.7% or $0.04 for the year as the impact of decline in average weight per parcel, an increase in incremental volume incentives were offset by the positive impact of the volume increase in retail parcels.

核心快遞業務的平均售價在第四季度上漲 10.3% 或 0.13 元人民幣，全年上漲 2.7% 或 0.04 美元，原因是包裹平均重量下降和增量激勵增加的影響被零售包裹數量增加的積極影響所抵消。

The total cost of revenue was RMB9.2 billion and RMB30.6 billion for Q4 and the year, respectively, which increased 22.3% for Q4 and 14.2% for the year. Overall unit cost for the core express delivery business increased 11.1% and to RMB0.93 for Q4 and 1.9% to RMB0.87 for the year.

第四季和全年總營業成本分別為92億元和306億元，年增22.3%和14.2%。核心快遞業務整體單位成本第四季上漲11.1%至人民幣0.93元，全年上漲1.9%至人民幣0.87元。

Combined unit cost of sorting and transportation decreased 6.5% or RMB0.06 for Q4. And for the year, it was 6% or RMB0.04, benefiting largely from economies of scale, specifically unit cost of line haul transportation decreased 11.1% to RMB0.40 for Q4 and decreased 8.7% to RMB0.41 for the year driven by more effective route planning in conjunction with improvements in fleet operations.

第四季分類和運輸的綜合單位成本下降6.5%，即0.06元人民幣。而全年則為 6% 或 0.04 元人民幣，主要受益於規模經濟，具體來說，第四季度幹線運輸單位成本下降 11.1% 至 0.40 元人民幣，全年下降 8.7% 至 0.41 元人民幣，這得益於更有效的路線規劃和車隊運營的改善。

Unit sorting costs was flat for Q4 and 2024, and RMB0.26 and RMB0.27, respectively. While improvements in automation and labor efficiency contributed to cost savings, additional costs were incurred for sorting activities conducted on behalf of franchise partners. Unique KA costs increased RMB0.15 and for the Q4 and RMB0.07 for the year, in line with KA revenue increase driven by significant volume increases in retail and more specifically, reverse parcels.

第四季和2024年的單位分選成本持平，分別為0.26元人民幣和0.27元人民幣。雖然自動化和勞動效率的提高有助於節省成本，但代表特許經營合作夥伴進行的分類活動產生了額外的成本。獨特KA成本第四季增加0.15元人民幣，全年增加0.07元人民幣，與KA收入的成長一致，這得益於零售量（尤其是反向包裹）的大幅增加。

Gross profit increased 20.2% to RMB3.8 billion for Q4, and increased 17.6% to RMB13.7 billion for 2024. Gross profit margin rate decreased 0.4 points to 29.1% and increased 0.6 points to 31% for the year. For the quarter and the year, respectively. G&A, excluding SBC, decreased 7.3% to RMB649 million for Q4 and increased 9.3% to RMB2.4 billion for the year.

第四季毛利成長20.2%至38億元人民幣，2024年毛利成長17.6%至137億元。毛利率較去年同期下降0.4個百分點至29.1%，全年毛利率較去年同期上升0.6個百分點至31%。分別針對季度和年度。不包括SBC的一般及行政開支第四季下降7.3%至人民幣6.49億元，全年增長9.3%至人民幣24億元。

SG&A expenses, excluding SBC as a percentage of revenue declined to 5% for Q4 and 5.4% for the year, reflecting strong corporate cost efficiency. Income from operations increased 25.3% to RMB3.5 billion for Q4 and increased 17.7% to RMB11.8 billion for the year. Associated margin grew 0.8 points to 26.7% and 0.6% -- point to 26.6% for the year.

不包括 SBC 的銷售、一般及行政費用佔收入的百分比在第四季度下降至 5%，全年下降至 5.4%，反映出企業強大的成本效率。第四季營業收入年增25.3%至35億元人民幣，全年營業收入較去年同期成長17.7%至118億元。全年相關利潤率分別成長0.8個百分點至26.7%及0.6個百分點至26.6%。

Operating cash flow was RMB2.8 billion for the quarter and RMB11.4 billion for the year, representing decreases of 28.5% and 14.5%, respectively. This decline was primarily due to: one, a onetime refund of franchise deposits totaling RMB1.2 billion under our new business policy to ease liquidity pressure of franchisees who, in the past, must make certain deposits with waybill purchases and then receive refund upon proper delivery of the package; two, higher advances for reverse logistics operations based on the terms customary with platform operators; three, tightening VAT refund policies; and four, a bigger portion of cash management products accounted under long-term financial investments were associated interest income is recognized over a term longer than a year of maturity.

本季經營現金流為28億元人民幣，全年經營現金流為114億元人民幣，分別下降28.5%及14.5%。下降的主因：一是依照新業務政策一次退還加盟商押金12億元，緩解加盟商的流動資金壓力。以往加盟商必須在購買運單時繳納一定押金，包裹正常送達後才能獲得退款；二、根據平台運營商的慣例，為逆向物流業務提供更高的預付款；三、收緊增值稅退稅政策；第四，長期金融投資項下的現金管理產品中，越來越多地在一年以上的期限內確認利息收入。

Our adjusted EBITDA for Q4 in 2024 was RMB4.6 billion and RMB16.4 billion, respectively. Capital expenditure for Q4 totaled RMB1.2 billion and annual CapEx came in at RMB5.9 billion, indicating that we have achieved another year of free cash flow.

我們2024年第四季的調整後EBITDA分別為人民幣46億元和人民幣164億元。第四季的資本支出總計12億元人民幣，全年資本支出達到59億元人民幣，這意味著我們又實現了一年的自由現金流。

Now moving on to business outlook based on current market and operating conditions. We estimated that the industry growth would likely be around 15% for 2025. And we anticipate the company's parcel volume for the year to be in the range of RMB4.8 billion to RMB42.2 billion. representing a 20% to 24% increase year-over-year. These estimates represent management's current and preliminary view, which are subject to change.

現在根據當前市場和營運狀況來討論業務前景。我們預計2025年產業成長率可能達到15%左右。我們預計該公司全年包裹量將在48億元至422億元之間。年增20%至24%。這些估計代表管理層目前的初步觀點，可能會發生變化。

Now this concludes our prepared remarks. Operator, please open the line for questions.

我們的準備好的演講到此結束。接線員，請打開電話線以回答問題。

(Operator Instructions) Ronald Keung, Goldman Sachs.

(操作員指示) 高盛的 Ronald Keung。

(Spoken in Chinese) So number one, I want to ask about our priority on volume growth this year above industry. And so how has our market share progress so far this year, the first quarter? And what has been the impact on pricing, just how other players are reacting? And what would be the impact to just our balance of profits this year with this strategic shift? And I want to hear about our CapEx, whether we think the CapEx cycle has peaked and the CapEx plan for 2025? Thank you.

（中文）首先，我想問一下，今年我們的銷售成長優先於產業嗎？那麼今年第一季到目前為止我們的市佔率進展如何？這對定價有何影響？其他參與者有何反應？這種策略轉變對我們今年的利潤平衡會產生什麼影響？我想聽聽我們的資本支出狀況，我們是否認為資本支出週期已經達到頂峰，以及 2025 年的資本支出計畫？謝謝。

(Spoken in Chinese)

（以中文朗讀）

(interpreted) So first, let me translate for the Chairman for the first two parts of your question, and then I'll answer the third part. For this year, we anticipated the growth of the industry to be around 16%. And we set our goal to be growing at 20% to 24% and which certainly indicate that we have a plan to grow above industry average in turn protecting and also enlarging our market share. It is, of course, without saying that we continue to focus on our strategy, overall strategy, which is to improve quality of services maintain and expand our market leadership as well as achieve reasonable profit.

（翻譯）首先，讓我為主席翻譯您問題的前兩個部分，然後我來回答第三部分。今年，我們預計產業成長率將在16%左右。我們設定的目標成長率是 20% 到 24%，這無疑表明我們計劃以高於行業平均的速度成長，從而保護並擴大我們的市場份額。當然，毋庸置疑，我們將繼續專注於我們的策略、整體策略，即提高服務品質、維持和擴大我們的市場領導地位以及實現合理的利潤。

And this year, our focus will be gravitated towards the quality of services and also the market share and volume increases. And it's very clear indicated through our numbers. Then the second part of the question relating to the first two months into the year where we have observed. The growth momentum is still very much demonstrated because they are observed a lot of normalized e-commerce promotions. There are a lot of rapid increases in the smaller, lighter weight packages and in the new business model, such as live streaming and e-commerce and also reverse logistics continues to drive additional volume.

今年，我們的重點將集中在服務品質以及市場份額和銷售量的成長。我們的數字非常清楚地表明了這一點。然後問題的第二部分涉及我們今年前兩個月的觀察。由於觀察到許多常態化的電子商務促銷，成長動能仍然十分明顯。更小、更輕的包裹數量迅速增加，而直播、電子商務和逆向物流等新商業模式也持續推動著包裹數量的成長。

And then also, not the least, the government has rolled out a lot of favorable policies to stimulate consumption, including trade-ins and subsidies which also boosted consumer willingness to spend, and it will support a recovery in consumption. The cost effectiveness of express delivery industry has in the past and will continue in the future to sustain steady increase in the parcel volume because consumption is still with potential for growth.

另外，政府推出了許多刺激消費的優惠政策，包括以舊換新、補貼等，也提高了消費者的消費意願，並將支持消費的復甦。快遞產業成本效益在過去和未來仍將維持包裹量的穩定成長，因為消費仍具有成長潛力。

Now looking ahead, some of the cross-border logistics and rural industry logistics will also fuel our industry demand as we talked about CTO preparing and improving our capability in the supply chain logistics services. So we think that the overall potential for the growth is very much intact. And for us to gradually roll out our new focus or new gravitation in the market share as well as our -- alongside our quality of customer services. And it will help us achieve the goal that we set for us.

現在展望未來，一些跨境物流和農村工業物流也將推動我們的產業需求，正如我們談到的CTO準備和提高我們在供應鏈物流服務方面的能力。因此我們認為整體成長潛力仍然完好。我們將逐步推出新的重點或新的市場份額以及我們的客戶服務品質。它將幫助我們實現我們設定的目標。

Now this year, we have achieved in 2024, our CapEx came in at RMB5.9 billion. As we have pretty much established the entire network with close to 95 or about 95 super sorting centers, most of the CapEx spending for this year 2025 will be on the remaining few tracks of land that we would want to secure to replace current rental spaces and then plus also there are some upgrades of the existing facilities that will be in the plan. So we estimate our total 2025 CapEx will come in somewhere around RMB5 billion to RMB5.5 billion. And again, with strong cash flow from our operations, we intend to repeat another free cash flow year. I hope that answers your question, Ronald.

今年，也就是2024年，我們的資本支出達到了59億元。由於我們基本上已經建立了包含近 95 個或大約 95 個超級分揀中心的整個網絡，因此，今年 2025 年的大部分資本支出將用於我們希望獲得的剩餘幾塊土地上，以取代目前的租賃空間，此外，計劃中還會對現有設施進行一些升級。因此，我們預計 2025 年總資本支出將在 50 億至 55 億元左右。而且，憑藉我們營運產生的強勁現金流，我們打算再創自由現金流年。我希望這能回答你的問題，羅納德。

Qianlei Fan, Morgan Stanley.

摩根士丹利的範倩蕾。

(Spoken in Chinese) Congratulations on a very solid earnings growth. I have two questions. The first question is about technology. So in this year -- since last year, we have seen some speed up in AI and other technologies globally. And that has driven some technology or potentially could be applied into the logistics sector, for example, autonomous driving drone, humanoid?

（中文）恭喜您的獲利實現穩健成長。我有兩個問題。第一個問題是關於技術的。所以從今年開始——自去年以來，我們看到全球人工智慧和其他技術的發展有所加速。這是否推動了一些技術或可能應用於物流領域，例如自動駕駛無人機、人形機器人？

So -- and recall that maybe we have during the past decade have been achieving cost efficiency improvements through automation and self-owned trucks and the economy of scale has been marginally decreased. So with the new development in technology and AI, is there any new potential in terms of cost savings or in terms of revenue expansion in the next decade?

所以——回想一下，也許在過去十年中我們已經透過自動化和自有卡車實現了成本效率的提高，而規模經濟卻略有下降。那麼，隨著科技和人工智慧的新發展，未來十年在成本節約或收入擴大方面是否還有新的潛力？

And the same question is also related to that. So as Mrs. Yan has mentioned, CapEx has been largely done regarding the sorting center like system in China. But over the medium term, if we assume that the technology continues to evolve very fast, the cost of applying technology drops rapidly. Will that impact our expectation on CapEx over the medium term?

同樣的問題也與此相關。正如嚴女士所提到的，資本支出主要用於中國分類中心等系統。但從中期來看，如果我們假設科技持續快速發展，應用技術的成本將會迅速下降。這會影響我們對中期資本支出的預期嗎？

(Spoken in Chinese)

（以中文朗讀）

(interpreted) Yes. I'll again answer -- translate for the first part and then more specifically address your second part of the question as it relates to the cost. There has been a wide application of AI technology in the industry. And of course, ZTO is without exception. For example, machine vision we integrated with visual recognition technology and also the algorithm in our sorting equipment and the process, enabling system to automatically adjust operating procedures and also reduce sorting errors and improve efficiency.

（翻譯）是的。我會再回答——翻譯第一部分，然後更具體地回答問題的第二部分，因為它與成本有關。人工智慧技術在工業領域已廣泛應用。當然，中通也不例外。例如機器視覺，我們將視覺辨識技術和演算法融入我們的分類設備和流程中，使系統能夠自動調整作業流程，減少分類錯誤，提高效率。

In the quarter, processing field AI also enabled automatic generation of four segment tracking codes. The four segment tracking codes will allow the smallest unit of destination determination so that the package could go directly to the courier. In terms of customer service, for example, we also have AI-powered tools to enable quicker response speed as well as reduce dependency on human intervention. So there are plenty of opportunities that are currently already in place for us to utilize this technology. And certainly, as it continues to develop, we will stay at the forefront to cooperate and work with the leading research companies in applying their technology in our operational environment.

本季度，處理現場AI也實現了四個段落追蹤程式碼的自動產生。四段追蹤代碼將允許確定目的地的最小單位，以便包裹可以直接到達快遞員。例如，在客戶服務方面，我們也有人工智慧工具，以提高反應速度並減少對人工幹預的依賴。因此，目前我們已經有很多機會利用這項技術。當然，隨著它的不斷發展，我們將保持領先地位，與領先的研究公司合作，將他們的技術應用於我們的營運環境。

Chairman referred to some of the application as well, not only to our operating platform, but also to our network partners on the last mile front end. For example, he indicated that he has recently visited many of our franchise outlets, and he has observed the improved level of automation, which allowed not only standardization of the operation of express delivery, but also improved efficiency, reduced cost.

主席也提到了一些應用，不僅涉及我們的營運平台，還涉及最後一哩前端的網路合作夥伴。他舉例說，最近他走訪了我們很多加盟店，發現自動化程度都在提高，不僅讓快遞操作更加規範，而且提高了效率，降低了成本。

Some of the specific examples that we are able to work with our network partners in empowering them in adopting advanced technology includes autonomous driving vehicles. Chairman indicated that this application already went into the commercialization. We maintain an open attitude towards new technology and work in collaboration with the research firm and rolled out solutions, specifically for our initiatives, which is the direct link.

我們與網路合作夥伴合作，幫助他們採用先進技術的一些具體例子包括自動駕駛汽車。主席表示該項應用程式已進入商業化階段。我們對新技術持開放態度，並與研究公司合作並推出針對我們的計劃的解決方案，這是直接的聯繫。

So for one, autonomous vehicles, it has great advantage over manned vehicle. Example here is, on average, on a monthly average, one manned vehicle will cost about RMB2,000 to RMB3,000 and the daily operating capacity is about 1,500 to 2,000 packages. The traditional manned vehicles are typically fossil fuel powered vehicle and it costs about RMB0.15 per package.

因此，首先，自動駕駛汽車比載人汽車具有很大的優勢。舉個例子，平均下來，一輛載人車輛每個月的成本大約在2000到3000元人民幣，每天的運行量大約在1500到2000個包裹。傳統載人車輛一般為化石燃料驅動的車輛，每包成本約0.15元。

But using the autonomous vehicle that we are currently in design and ready to roll out in 2025 with estimate cost only RMB0.07 to RMB0.08 on per package. We are looking to purchase in bulk with these factories than the research firm, which will further reduce the cost on a per unit basis to somewhere around RMB0.05 to RMB0.06 or even lower to RMB0.05.

但使用我們目前正在設計並準備在2025年推出的自動駕駛汽車，預計每個包裹的成本僅為0.07元至0.08元。我們希望從這些工廠而不是研究公司進行大量採購，這將進一步降低每單位成本到大約0.05元到0.06元人民幣，甚至更低到0.05元人民幣。

So one of our focus is not necessarily spending our own money by using our brand using our influence to work with the research firm as well as the manufacturer in empowering our network partners to secure OEM equipment and offer better competitive price for our network partners. And secondly, the example that Chairman referred to is when we -- when our network partners, the outlet use more and more of the autonomous vehicles where the government continuously roll out or remove limitation on the use of autonomous vehicles on the road, we believe there will be greater opportunity for us to help reduce per unit cost and improve efficiency.

因此，我們的重點之一不一定是花自己的錢，而是利用我們的品牌，利用我們的影響力與研究公司和製造商合作，使我們的網路合作夥伴能夠獲得 OEM 設備，並為我們的網路合作夥伴提供更具競爭力的價格。其次，主席提到的例子是，當我們的網路合作夥伴、門市越來越多地使用自動駕駛汽車，而政府不斷推出或取消道路上使用自動駕駛汽車的限制時，我們相信我們將有更大的機會幫助降低單位成本並提高效率。

Now to the third part of the question, as I alluded to earlier, we are of the philosophy that at the right time, spending the right amount of money technology is continuously evolving, and we are watching closely in how it could best integrate into our operations as well as helping our network partners in improving their efficiencies. So at the forefront, we will utilize our brand influence as well as our technological sensitivity as well as awareness. As you know that we have over 1,100 IT personnel, including some of the algorithm engineers, they will help us in participating and benefiting from this technological development trend.

現在回到問題的第三部分，正如我之前提到的，我們的理念是，在正確的時間花費適當的資金，技術在不斷發展，我們正在密切關注如何將其最好地融入我們的運營中，並幫助我們的網絡合作夥伴提高效率。因此，在最前沿，我們將利用我們的品牌影響力以及我們的技術敏感度和意識。大家知道我們有1100多位IT人員，其中包括一些演算法工程師，他們將幫助我們參與並受益於這個技術發展趨勢。

Cost wise, it is very much paced with our volume increase as well as our efficiency gain plan to just bring about additional color as we truly achieve the layout as our volume continues to increase, then the cost will be deployed, as we mentioned earlier, scientifically, making investment is important for us. we are from a very practical term approaching this option for us.

成本方面，它與我們的產量增長以及效率提升計劃同步進行，隨著我們真正實現佈局，隨著產量的不斷增加，我們將帶來更多的顏色，然後成本就會得到部署，正如我們之前提到的，從科學的角度來說，投資對我們來說很重要。我們從一個非常實際的角度來看這個選擇。

Thank you very much.

非常感謝。

Aaron Luo, UBS.

瑞銀的 Aaron Luo。

(Spoken in Chinese) I got two questions. First one is regarding our retail, including the written parcel. We have seen strong growth momentum last year and do you see that, that momentum would continue for this year? And do we have any growth target on that? Also, we have noted the competition on this front is getting more intense. What's kind of the [UEL] level we have seen during the past couple of quarters and the trend we expect going forward?

（中文）我有兩個問題。第一個是關於我們零售的，包括書麵包裹。去年我們看到了強勁的成長勢頭，您認為今年這種勢頭會持續下去嗎？我們對此有什麼成長目標嗎？我們也注意到這方面的競爭日益激烈。過去幾季我們看到的 [UEL] 水平是什麼樣的？我們預期未來的趨勢如何？

Another question is also regarding our cost. We have seen our core cost per parcel including transport and sorting costs have been below RMB0.7. And what would be the potential -- cost cutting potential from here? And the level we would eventually see going forward? And do we expect -- do we see like the cost burden from social insurance would be that big for us?

另一個問題也與我們的成本有關。我們發現，包括運輸和分類成本在內的每件包裹的核心成本低於0.7元。那麼，這裡的成本削減潛力有多大呢？我們最終會看到什麼水平？我們是否預期－我們是否看到社會保險的成本負擔對我們來說會那麼大？

(Spoken in Chinese)

（以中文朗讀）

(interpreted) Thank you for your question. In translate and supplement where may be. So first of all, regarding the retail volume. In Q4, our average retail parcel volume exceeded 7 million parcels, with 3 million from our own ordering channel and then about 4 million from the reverse parcel, which doubled from last year. For 2025, our goal is to achieve 8.4 million daily volume on average, this compared to 2024 at 5.46 million, which more than -- will likely to be doubled in that way.

（翻譯）感謝您的提問。如有需要可翻譯和補充。首先，關於零售量。第四季度，我們的平均零售包裹量超過700萬件，其中來自我們自己的訂購管道的包裹量為300萬件，來自反向包裹的包裹量約為400萬件，比去年增長了一倍。到 2025 年，我們的目標是實現日均交易量 840 萬筆，而 2024 年這一數字為 546 萬筆，預計這一數字將翻一番以上。

So it's a pretty high goal. And so we have planned our passage way to achieve such goal in the following four areas. One is to continue to implement our initiatives so that our couriers can achieve the lion's share of the retail market price. The tools that we will use is embedded in their handheld devices, which will help incentivize the couriers to serve retail packages. Number two, we will continue to work with the platform in implementing the measurement metrics and make that part of the measurement internally so that the specific target, specific goals will be achieved. The system improvements will also be in sync with such initiatives.

所以這是一個相當高的目標。為此，我們從以下四個面向規劃了實現這一目標的通道。一是繼續落實我們的舉措，讓我們的快遞員獲得零售市場價格的最大份額。我們將使用的工具嵌入在他們的手持設備中，這將有助於激勵快遞員提供零售包裹服務。第二，我們將繼續與平台合作實施測量指標，並在內部進行這部分測量，以實現特定的目標。系統改進也將與這些措施同步。

The continued collaboration or deepening arrangements with our platform will also help expand the service area of the retail or specifically reverse parcels. The product differentiation as number four will help improve our ability to serve different customer needs. If it's speed, if it's quality, if it's a combination, we will be able to expand and meet different demands.

與我們平台的持續合作或深化安排也將有助於擴大零售或特別是反向包裹的服務區域。第四，產品差異化將有助於提升我們滿足不同客戶需求的能力。如果是速度、如果是品質、如果是組合，我們將能夠擴展並滿足不同的需求。

And the question that you have -- the question you have also mentioned about the cost further reduction. We believe from -- in terms of our transit, what we have done in continuous breakdown of the whole process and reduce damage reduced loss. And also together with the -- what we mentioned, the tri-layer throughput model will help us reduce sortation frequency as well as connecting destination and origination outlets or centers will help us reduce the cost on a per unit basis.

您所提的問題是關於成本進一步降低的問題。我們相信—就我們的運輸而言，我們所做的就是不斷分解整個過程，減少損壞和損失。而且，正如我們所提到的，三層吞吐量模型將幫助我們減少分類頻率，連接目的地和發起網點或中心將幫助我們降低單位成本。

Our goal for 2025 is to achieve at least RMB0.03 reduction for sortation and transportation combined unit cost. So with the success in implementation of our initiatives to establish direct link between outlets and post, our goal is to have around 42.6% or almost 40% and above of the packages go directly to the outlet, which will translate into about RMB0.20 per package savings. We think there are, again, more opportunities for us to reduce cost as our volumes continue to improve and increase.

我們2025年的目標是，分類和運輸的綜合單位成本降低至少0.03元。所以隨著我們成功實施網點與郵政直連計劃，我們的目標是讓大約42.6%或接近40%以上的包裹直接到達網點，這將意味著每個包裹可節省約0.20元人民幣。我們認為，隨著產量不斷提高和增加，我們有更多機會降低成本。

Now the third question regarding to the social welfare expenses, we've always focused on people. And continuously, we protect and improve the interest and the rights of our couriers. We have our self-employed employees as well as the outsourcing employees, 100% coverage on their social welfare payment the couriers also were encouraged to -- we also encourage our outlet owners to cover couriers, and we have achieved -- helped them achieve 100% commercial insurance coverage.

第三個問題關於社會福利支出，我們一直關注的是人民。並不斷保護和提高我們快遞員的利益和權利。我們為自營員工和外包員工提供 100％ 的社會福利保障，我們也鼓勵我們的門市老闆為快遞員提供保險，我們已經幫助他們實現了 100％ 的商業保險覆蓋。

To be noted is that in the industry, we are the first to roll out a corporate sponsored all weather 24/7 accidental group insurance for our couriers. Currently, the stability or the turnover rate performance of our courier is in the industry is relatively better than the rest. We not only have the lower cost but also have the willingness and yes, also have the willingness to work with the brand to provide better a sense of belong and also a sense of achievement with the radius surrounding the post, we believe we are able to help our couriers not only receive better income but also have better work environment and safer work environment. And I hope that answers your question.

值得一提的是，在業界內，我們是第一家為快遞員推出企業贊助的全天候24/7意外團體保險的。目前我們快遞的穩定性或說週轉率的表現在業界是比較好的。我們不僅擁有更低的成本，而且有意願並且是的，也願意與品牌合作，以提供更好的歸屬感和成就感，以郵政為半徑，我們相信我們能夠幫助我們的快遞員不僅獲得更好的收入，而且擁有更好的工作環境和更安全的工作環境。我希望這能回答你的問題。

Thank you, Ms. Sophie. Yes, that's very clear. Thank you.

謝謝你，索菲女士。是的，非常清楚。謝謝。

Thank you. And this concludes our question-and-answer session. I'd like to turn the conference back over to the company for closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給公司，以便發表結束語。

Again, thank you, everybody, for joining today's call, and thank you for your continued support. We are available for further questions or discussions and we look forward to talking to you soon.

再次感謝大家參加今天的電話會議，並感謝大家一直以來的支持。我們可以回答進一步的問題或進行討論，並期待很快與您交談。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。我們感謝大家參加今天的演講。現在您可以斷開連接，享受美好的一天。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。