ZTO Express (Cayman) Inc (ZTO) 2025 Q3 法說會逐字稿

Good day, and welcome to the ZTO to announce third-quarter 2025 financial results conference call. (Operator Instructions) Please note, today's event is being recorded.

大家好，歡迎參加中通公司2025年第三季財務業績電話會議。（操作說明）請注意，今天的活動正在錄製中。

I would now like to turn the conference over to Sophie Li, Secretary for the company.

現在我將把會議交給公司秘書李淑芬女士。

Thank you, operator. 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 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.

謝謝接線生。大家好，感謝各位今天收看我們的節目。本公司業績報告和投資者關係簡報已於今日早些時候發布，可在公司投資者關係網站ir.zto.com上查閱。今天出席中通集團電話會議的有董事長兼執行長賴美松先生和財務長嚴慧萍女士。賴先生將簡要概述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意見。在接下來的問答環節中，他們將回答您的問題。

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, 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.

我提醒各位，本次通話可能包含根據 1995 年《私人證券訴訟改革法案》安全港條款所作的前瞻性陳述。此類聲明是基於管理層當前的預期以及當前的市場和經營狀況，並涉及已知或未知的風險、不確定性和其他因素，所有這些因素都難以預測，其中許多因素超出公司的控制範圍，這可能導致公司的實際業績、表現或成就與前瞻性聲明中的內容存在重大差異。

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.

有關此項及其他風險、不確定性和因素的更多信息，請參閱公司向美國證券交易委員會提交的文件。除法律另有規定外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

It's 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. (spoken in Chinese)

現在我榮幸地向大家介紹賴美松先生。賴先生會先用中文通讀一遍他準備好的發言稿，然後我再為他翻譯成英文。（中文）

(interpreted) Hello, everyone. Thank you for joining today's conference call. China express delivery industry experienced steady growth during the third quarter of 2025. While maintaining its industry-leading service quality, ZTO grew its parcel volume by 9.8% year over year to reach 9.57 billion parcels. Our adjusted net income was RMB2.51 billion, which rose 5% over the same period last year.

（譯）大家好。感謝您參加今天的電話會議。2025年第三季度，中國快遞產業經歷了穩定成長。在維持業界領先的服務品質的同時，中通快遞的包裹量年增 9.8%，達到 95.7 億件。我們調整後的淨利為人民幣25.1億元，比去年同期成長5%。

During the quarter, government advocated for grassroots against evolution and promoted more orderly competition by curbing unreasonable low-price practices. As a result, the overall pricing level across express delivery industry stabilized and began to recover. Adhering to our balanced approach to quality first to growth strategy, ZTO rose to the higher standards for model enterprises and reinforce the principal design to achieve coordinated development with both high volume and high quality. We encourage our network partners to reduce costs and increase income by strengthening last manicured delivery capabilities to become the preferred choice of last-mile market.

本季度，政府倡導基層反對進化，並透過遏制不合理的低價競爭來促進更有序的競爭。因此，快遞行業的整體價格水準趨於穩定並開始復甦。中通秉承品質優先、成長為先的平衡發展策略，不斷提升自身水平，成為模範企業，並強化了實現高產量、高品質協同發展的原則設計。我們鼓勵我們的網路合作夥伴透過加強最後一公里配送能力來降低成本、增加收入，成為最後一公里市場的首選。

ZTO's retail parcel volume maintained strong growth momentum and grew close to 50% year on year. Through optimizing the pickup model and the refined lean process management, we enhanced both service quality and cost efficiency. For transit efficiency, ZTO continued to advance the application of smart technology in transforming standardized cost control mechanism, implementing more effective resource allocation and the performance metrics. The combined unit cost of transportation and sorting decreased by RMB0.05 year on year.

中通銀行零售包裹量維持強勁成長勢頭，較去年同期成長近 50%。透過優化取貨模式和改善精益流程管理，我們提高了服務品質和成本效益。為了提高運輸效率，中通持續推動智慧技術的應用，改造標準化成本控制機制，實施更有效的資源分配與績效指標。運送和分類的單位總成本年減了0.05元人民幣。

Entering the fourth quarter, overall industry volume growth exhibited some moderation, while uncertainties and short-term challenges in the macroeconomic recovery still expect. The long-term prospects for the express delivery and logistics industry remains positive. We will stay focused on enhancing our product and service capabilities.

進入第四季度，整體產業銷售成長放緩，但宏觀經濟復甦仍存在不確定性和短期挑戰。快遞物流業的長期前景依然樂觀。我們將繼續專注於提升產品和服務能力。

In the next phase, we will prioritize the following five areas of work. First, at home service quality as our lifeline, establish a comprehensive end-to-end quality management service system with integrated baton service indicators for performance evaluations, assign clear responsibilities and capabilities, ensuring continued service leadership. Second, deepen last mile capability build-out, expense upgrades of sorting capabilities at [Alis], further implement direct linkage and incorporate local commercial opportunities, hence reduce delivery costs and enhanced last-mile profitability through a higher retail parcel mix.

在下一階段，我們將優先進行以下五個面向的工作。首先，將居家服務品質視為我們的生命線，建立一套全面的端到端品質管理服務體系，整合接力服務指標進行績效評估，明確責任和能力，確保持續的服務領先地位。第二，深化最後一公里能力建設，加大對[Alis]分揀能力的投入升級，進一步實施直接聯運，並融入本地商業機會，從而降低配送成本，並通過提高零售包裹比例來提高最後一公里盈利能力。

Third, optimize network policies and incentivized mechanisms, while ensuring steady volume growth enhanced policy transparency and fairness, implement relevant incentive mechanism to cultivate intrinsic motivation. Fourth, advanced end-to-end cost efficiency and synergy leverage cutting-edge technologies and digitization tools to optimize route planning with appropriate match to transit capacity more certificate planned for capital investment and utilization and improved ordination across all stages of operations, help network partners to continuously improve their operational efficiency, reduce last mile pickup and delivery costs and achieve higher earnings.

第三，優化網路政策和激勵機制，在確保穩定銷售成長的同時，提高政策透明度和公平性，並實施相關激勵機制以培養內在動力。第四，透過先進的端到端成本效益和協同效應，利用尖端技術和數位化工具優化路線規劃，使其與運輸能力適當匹配，為資本投資和利用率制定更多計劃，並改進運營各個階段的協調，幫助網絡合作夥伴不斷提高運營效率，降低最後一公里取貨和送貨成本，並獲得更高的收益。

Fifth, safeguard fairness and grass rooting, improved communication and governance promptly address gene concern and results will issue, protect legitimate rights and the interest of all and careers and maintain trust and confidence in our brand. The express delivery industry i1s currently undergoing a strategic shift from prioritizing high volume towards development in both quantity and quality.

第五，維護公平和基層，改善溝通和治理，及時處理基因相關問題和結果，保護所有人的合法權益和利益，並維護對我們品牌的信任和信心。目前，快遞產業正在經歷策略轉型，從優先考慮高運量轉向同時提高運量和運質。

Against today's macroeconomic backdrop, the increasing proportion of low-priced parcel presents unique new challenges for top-tier enterprises like ZTO. Facing this structural change ZTO stayed in course in prioritizing quality of services and winning through efficiency, so continuous product upgrades and refine the process management. We navigated a complex market environment, upheld high quality of service standards and scaled up within reasonable earnings parameters.

在當前的宏觀經濟背景下，低價包裹比例的不斷增加為中通等一流企業帶來了獨特的新挑戰。面對這種結構性變化，中通始終堅持以服務品質為先，以效率取勝，不斷進行產品升級和流程管理改進。我們成功應對了複雜的市場環境，堅持了高品質的服務標準，並在合理的獲利範圍內實現了規模擴張。

In the meantime, our network partners baptized by fierce price competition are actively innovating and forging last-mile capability and business model with more diverse revenue. Better operational efficiency, with higher confidence in the success of operations, the advertising network is becoming even more resilient. Competition is an inevitable growth phase for majority of [industries].

同時，我們的網路合作夥伴在激烈的價格競爭中不斷創新，打造最後一公里配送能力和商業模式，實現更多元化的收入來源。營運效率的提高，以及對營運成功更高的信心，使得廣告網路變得更具韌性。對大多數企業而言，競爭是成長過程中不可避免的階段。[行業]。

Looking ahead, we firmly believe that by leveraging the best potential of solid growth foundation and vibrance of China's economy, ZTO can perpetuate our unique culture, rely on our robust infrastructure and with our strong operational capabilities and sound financial strength, we are able to seize opportunities in the ongoing development of the express delivery and the largest industry. Together with all our partners, we can create greater value and bring evening to more people through our products and services.

展望未來，我們堅信，憑藉中國經濟堅實的成長基礎和蓬勃的活力，中通能夠傳承我們獨特的企業文化，依靠我們強大的基礎設施、強大的營運能力和穩健的財務實力，抓住快遞行業乃至整個全球最大行業持續發展帶來的機遇。我們與所有合作夥伴攜手，可以透過我們的產品和服務創造更大的價值，讓更多人享受美好的夜晚。

Next, let's invite Ms. Yan to present the financial results and guidance.

接下來，我們請髕女士介紹財務績效和指導意見。

Thank you, Chairman Lai, and thank you, Sophie. Hello to everyone on the call. As I go through our financials, please note that -- and as specifically mentioned, all numbers quoted are in RMB and percentage changes refer to year-over-year comparisons. Detailed financial and performance information, 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，也謝謝蘇菲。各位通話中的朋友們，大家好。當我介紹我們的財務數據時，請注意——正如特別提到的，所有引用的數字都是以人民幣計價的，百分比變化是指同比比較。詳細的財務和業績資訊、單位經濟效益和現金流數據都發佈在我們的網站上，我在這裡將介紹其中的一些亮點。

In the third quarter, in alignment with government's appeal against evolution, we reaffirmed our focus on quality enhancing our core competencies to advance high-quality development. Our parcel volume reached RMB9.6 billion, which grew 9.8%. Adjusted net income increased 5% to RMB2.5 billion.

第三季度，為了響應政府反對演進的號召，我們重申了對品質的重視，提升了我們的核心競爭力，以推動高品質發展。我們的包裹量達到人民幣96億元，成長了9.8%。經調整後的淨利成長5%至人民幣25億元。

ASP for core express delivery business increased 1.7% or RMB0.02, and the breakdown are the following: RMB0.18 positive contribution from increase in KA volume mainly comprised of headquarter contracted reverse logistics products and services. This growth was partially offset by a RMB0.02 decrease due to lower average weight per parcel and a RMB0.14 reduction from higher volume incentives.

ASP核心快遞業務成長1.7%或人民幣0.02元，具體構成如下：KA業務量成長貢獻人民幣0.18元，主要包括總部承包的逆向物流產品及服務。這一增長被每件包裹平均重量下降導致的人民幣0.02元減少以及因銷量獎勵增加而導致的人民幣0.14元減少部分抵消。

Total revenue increased 11.1% to RMB11.9 billion as a combined result of volume and price increase. Total cost of revenue was RMB8.9 billion, which increased 21.4% as a blended result of significant increase in costs associated with non-e-commerce volume relative to the rate of decrease in cost for e-commerce volume.

受銷售量和價格上漲的雙重影響，總收入成長11.1%，達到人民幣119億元。總營業成本為人民幣89億元，成長了21.4%，這是由於非電子商務業務量相關的成本相對於電子商務業務量的成本下降速度大幅增加所致。

From the overall unit cost perspective, core express delivery business increased RMB0.09 to RMB0.91. Combined unit cost of sorting and transportation decreased 7.7% or RMB0.05 for the quarter, benefiting from economies of scale and various productivity initiatives. Specifically, unit costs for line haul transportation decreased 11.5% to RMB0.34, thanks to enhanced route planning in conjunction with optimizing fleet operations.

從整體單位成本來看，核心快遞業務單位成本增加0.09元至0.91元。分類和運輸的單位成本合計下降7.7%或0.05元，受益於規模經濟和各項提高生產力的措施。具體而言，由於加強了路線規劃並優化了車隊運營，幹線運輸的單位成本下降了 11.5%，至 0.34 元人民幣。

Unit sorting costs remained stable at RMB0.25 due to improved labor efficiency through automation, offset by higher cost from new facilities that commenced operations in the quarter. Unit KA costs increased RMB0.14 and which is in line with KA volume growth. Gross profit decreased 11.4% to RMB3 billion, and gross margin rate dropped 6.3 points to 24.9%. SG&A, excluding SBC, grew 16.2% to RMB633 million, SG&A expenses, excluding SBC, as a percentage of revenue slightly climbed to 5.3% compared to 5% in the previous quarter last year -- same quarter last year, primarily due to higher depreciation and amortization expenses.

由於自動化提高了勞動效率，單位分類成本保持穩定在人民幣0.25元，但被本季開始營運的新設施帶來的較高成本所抵銷。KA單位成本增加了0.14元人民幣，與KA銷售成長相符。毛利下降11.4%至人民幣30億元，毛利率下降6.3個百分點至24.9%。不計SBC的銷售、一般及行政費用增長16.2%至人民幣6.33億元，不計SBC的銷售、一般及行政費用佔收入的百分比略微攀升至5.3%，而去年同期為5%——去年同期，這主要是由於折舊和攤銷費用增加。

Income from operations decreased 15.4% to RMB2.4 billion and associated margin dropped 6.3%, a point to 20.3%. Operating cash flow was RMB3.2 billion for the quarter, representing a 3.2% increase. Adjusted EBITDA decreased 4.2% to RMB3.6 billion. Capital expenditures for Q3 totaled RMB1.2 billion, and we anticipate our annual CapEx expenses in 2025 to be RMB5.5 billion to RMB6 billion.

營業收入下降15.4%至人民幣24億元，相關利潤率下降6.3%，至20.3%。本季經營活動產生的現金流為人民幣32億元，較去年同期成長3.2%。調整後的 EBITDA 下降 4.2% 至人民幣 36 億元。第三季資本支出總額為人民幣12億元，我們預期2025年的年度資本支出將達到人民幣55億元至人民幣60億元。

Now moving on to our guidance. With visibility into the final quarter of the year, we are adjusting down the annual volume guidance to be in the range of 38.2 billion to 38.7 billion parcels, representing a year-over-year growth of 12.3% to 13.8%. Volume is critical to a scale leveraged business and partner network stability is the foundation for sustainable long-term growth of our company. As macro environment continues to evolve and industry dynamics shift towards more orderly competition, we are confident in our ability to execute the overall corporate strategy as well as tackling challenges in the near term.

接下來是我們的指導意見。鑑於今年最後一個季度的可見性，我們將年度包裹量預期下調至 382 億至 387 億件，年增 12.3% 至 13.8%。規模對於規模化企業至關重要，而合作夥伴網路的穩定性是我們公司可持續長期成長的基礎。隨著宏觀環境不斷演變，產業動態向更有序的競爭轉變，我們有信心執行整體公司策略，並應對近期挑戰。

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

我們的發言稿到此結束。接線員，請開通提問線。

(Operator Instructions)

（操作說明）

Ronald Keung, Goldman Sachs.

Ronald Keung，高盛集團。

(interpreted) Two questions. One is about the industry structure and outlook. Given that we've seen growth convergence and pricing have stabilized temporarily, but how should we think of the year ahead and the long-term market structure as we are still in a relatively fragmented industry landscape?

（翻譯）兩個問題。一是關於行業結構和前景。鑑於我們已經看到成長趨於一致，價格也暫時趨於穩定，但我們仍然處於一個相對分散的產業環境中，我們應該如何看待未來一年和長期市場結構？

Second is about integrated opportunities besides the express delivery, what are we doing on the higher end or overall supply chain logistics offerings to provide a more integrated service to your customers?

其次，除了快遞服務之外，我們還有哪些整合機會？我們在高端或整體供應鏈物流服務方面做了哪些工作，以便為您的客戶提供更完善的整合服務？

(interpreted) Thank you very much for your question. The very first question is really related to the competitive and industry dynamics and where it's going. We believe that the scale and better services as well as higher efficiency, cost effectiveness will lead to greater opportunities. So we have continuously focused on becoming the best of ourselves because the future belongs to the stronger ones.

（翻譯）非常感謝您的提問。第一個問題其實與競爭格局和產業動態以及未來的發展方向有關。我們相信，規模擴大、服務改善、效率提高、成本效益提升將帶來更大的機會。因此，我們一直致力於成為最好的自己，因為未來屬於強者。

Looking into the future, we again will continue to focus on now as we look forward. There are several things that we are continuously focusing on. The first one is to strengthen the competitive advantage of our core businesses. And there are three perspective of three areas that we will be paying attention to. The first one is to strengthen the connectivity or relationship between the outlets, the couriers with our sortation center. It's mainly for allocation of interest, allocation of roles and responsibility as well as rewards across these all points with better equity and equality.

展望未來，我們將繼續專注於當下，展望未來。我們一直在持續關注幾個方面。第一要務是增強我們核心業務的競爭優勢。我們將從三個方面專注於三個領域。第一件事是加強門市、快遞員與我們的分類中心之間的連結或關係。主要目的是為了更好地公平公正地分配利益、角色和責任，並在所有這些方面給予獎勵。

The second part is express delivery is mainly serving the 2C consumers we leveraging the installed base will have an opportunity to solve -- bring solutions for greater logistics market. Currently, we have express delivery, we have LTL business, co-chain in a warehouse cloud operation as well as last-mile outlets. We believe the competitive landscape will shift towards comprehensive capability focused.

第二部分是快遞主要服務 2C 消費者，我們將利用現有的客戶基礎有機會解決—為更大的物流市場帶來解決方案。目前，我們有快遞服務、零擔運輸業務、倉儲雲端營運的自營物流以及最後一公里配送據點。我們認為競爭格局將轉向以綜合能力為導向的競爭。

We will not only serve to see. We will also serve modern manufacturing, agriculture as well as more specific scenarios such as bringing products and services from factory directly to consumers, bringing agriculture products out of the field directly on to people's dinner table. So for all these specific scenarios, we will participate with higher quality, higher efficiency and this will lead to a differentiated competitive advantage in the future for us.

我們不僅要觀看。我們還將服務於現代製造業、農業以及更具體的場景，例如將產品和服務從工廠直接送到消費者手中，將農產品從田間直接送到人們的餐桌上。因此，在所有這些具體情況下，我們將以更高的品質、更高的效率參與其中，這將為我們未來的競爭帶來差異化的競爭優勢。

Qianlei Fan, Morgan Stanley.

範倩蕾，摩根士丹利。

(interpreted) I have two questions. The first one is about the anti-evolution. So do you have any comments on the anti evolutions potential impacts, specifically on the outlook for market pricing. We have noticed that the company's guidance on volume for the fourth quarter of this year implies a quite wide range of growth look what's the consideration behind this outlook? Specifically, in just mentioned, there are some considerations of term challenges, what's these near-term challenges and what's the outlook for next year?

（翻譯）我有兩個問題。第一個例子是關於反進化論的。那麼，您對反進化策略的潛在影響，特別是對市場定價前景的影響，有什麼看法？我們注意到，該公司對今年第四季的銷售預期暗示著相當廣泛的成長範圍，請問這項預期背後的考量因素是什麼？具體來說，正如剛才提到的，有一些關於短期挑戰的考慮，這些近期挑戰是什麼？明年的前景如何？

And my second question is about recent news talking about that regulators had a conversation with ZTO's management on its network management. So is there any details that could be shared? And is there any potential impacts we should be expecting?

我的第二個問題是關於最近的新聞報道，據說監管機構與中通集團的管理層就其網路管理問題進行了對話。那麼，有什麼細節可以分享嗎？那麼，我們應該預料到哪些潛在影響呢？

(interpreted) Thank you very much for your question. So sustainability of the entire excessive competition policy, I think it was related to your first question. Since August of this year, the anti-evolution policy has been progressively rolled out across most regions nationwide aiming at rational recovery in pricing, and this policy directly addressed the pressure caused by excessive price competition since earlier this year. And it calls for the industry to turn towards orderly competition and healthy development. So we expect this trend to continue and the effort will also continue to take effect.

（翻譯）非常感謝您的提問。所以，關於整個過度競爭政策的可持續性，我認為這與你的第一個問題有關。今年8月以來，反進化政策已在全國大部分地區逐步推行，旨在實現價格的合理恢復，該政策直接應對了今年年初以來過度價格競爭帶來的壓力。它呼籲業界轉向有序競爭和健康發展。因此，我們預期這一趨勢將會持續，相關努力也將持續奏效。

As the anti-evolution guidance continues to take effect, industry overall attention is shifting from high-volume growth focused to combined effort in high-quality development as well as high volume, with greater emphasis on service quality and sustainable long-term viability. Once the assessment period concludes we think market rates are expected to stabilize above at least the cost levels, promoting healthier competition.

隨著反進化指導方針的持續生效，整個行業的關注點正從以高產量增長為重點轉向高品質開發與高產量相結合的努力，更加註重服務品質和可持續的長期生存能力。評估期結束後，我們認為市場價格有望穩定在至少高於成本水平的水平，從而促進更健康的競爭。

We also believe that the regulatory focus will continue to advocate high-quality development and disciplined market practice. On one hand, policies will continue to encourage companies to build competitive advantages through innovation, technology, effective managerial skills and services. On the other hand, regulators will remain vigilant and to deem as needed to seize practices that could harm as through interest or disrupt social stability, protecting sustainable long-term growth.

我們也認為，監管重點將繼續倡導高品質的開發和規範的市場行為。一方面，政策將持續鼓勵企業透過創新、技術、有效的管理技能和服務來建立競爭優勢。另一方面，監管機構將保持警惕，並視情況採取必要措施，制止可能損害我們利益或擾亂社會穩定、保護可持續長期成長的做法。

As an industry leader, ZTO's quality-first and balanced development strategy is fully aligned and we are engaged with the regulatory guidance. We view it as a growth opportunity and will take proactive steps to provide model effect for the sector. First, we will continue with investments in automation and digitization to strengthen our operational capabilities. Second, we will pay close attention to constructive feedback from outlets and couriers to strengthen network stability. Third, we will pay strategic focus to benchmark -- to provide a benchmark effect for higher quality development for the industry.

身為產業領導者，中通始終堅持品質第一、均衡發展的策略，並積極配合監理指導。我們將其視為成長機遇，並將採取積極措施，為該行業樹立榜樣。首先，我們將繼續增加對自動化和數位化領域的投資，以增強我們的營運能力。第二，我們將密切關注門市和快遞員的建設性回饋，以加強網路穩定性。第三，我們將重點放在標竿管理，為產業更高品質的發展提供標竿效應。

As to the recent consultation by relevant government agencies, we believe that the recent regulation consultation is consistent with the entire evolution policies as well as our intention. It also is related to certain isolated cases arose from the network complaints. The express delivery industry is shifting from high volume growth. to high-quality development at the same time. And this is the overall guidance with anti-evolution policy as well as the specific consultation. It requires all participants, especially ZTO as a leading player in this industry, to provide exemplified model effect.

關於最近相關政府機構的諮詢，我們認為最近的監管諮詢與整體發展政策以及我們的意願是一致的。它也與網路投訴中出現的一些孤立案例有關。快遞產業正從高產量成長轉向高品質發展同步轉型。這是反進化論政策的總體指導方針以及具體磋商內容。這要求所有參與者，特別是作為該行業領導者的中通公司，提供示範效應。

In the short term, we think that these consultation events serve as an important reminder for us as well as, we believe, stress tests for our managerial attention and capabilities. We have taken the feedback constructively and seriously and are treating it as a catalyst for further improvements internally. We have thoroughly reviewed our system in feedback as well as providing greater visibility and timely feedback in addressing specific issues.

短期來看，我們認為這些諮商活動對我們來說是一個重要的提醒，同時我們也相信，這些活動也是對我們管理注意力和能力的壓力測試。我們已認真對待並建設性地採納了這些回饋意見，並將其視為內部進一步改進的催化劑。我們已根據回饋意見對我們的系統進行了徹底審查，並提高了系統的透明度，及時提供了回饋，以解決具體問題。

In the long run, we believe that proactively embracing and leading this high-quality transformation not only is consistent with our regulatory and market expectations, but also builds (technical difficulty)

從長遠來看，我們相信積極主動地擁抱並引領這一高品質轉型，不僅符合監管機構和市場的預期，而且有助於建立…（技術難題）

Pardon me, everybody, this is the conference operator. It appears the speaker line has disconnected. We're going to put the music back on here. We will restart here in just one moment when they dial back in. Thank you, everybody. (technical difficulty)

各位，不好意思，我是會議接線生。揚聲器線路似乎斷開了。我們要把音樂重新放出來。等他們重新撥通後，我們馬上就從這裡重新開始。謝謝大家。（技術難題）

And pardon me, everyone, this is the operator. We've reconnected to the speaker location. Please proceed with your answer.

各位請見諒，這位是接線生。我們已經重新連接到揚聲器所在位置。請繼續作答。

Thank you. So I'll rewind just slightly where we got cut off.

謝謝。那我稍微倒帶一下，回到我們剛才被切斷的地方。

In the longer term, we believe the proactively embracing and leading the high-quality transformation will not only be consistent with the regulatory intention and the market expectations but also build a more robust and sustainable collaborative model for us to work with all constituents in our industry and in our end-to-end businesses. This will help us attract higher-quality customers and partners, ensuring longer and sustainable growth.

從長遠來看，我們相信積極擁抱和引領高品質的轉型不僅符合監管意圖和市場預期，而且還將為我們與行業內的所有利益相關者以及我們端到端業務中的所有利益相關者建立更強大、更可持續的合作模式。這將有助於我們吸引更高品質的客戶和合作夥伴，確保更長久、更永續的成長。

Tarang Luo, UBS.

羅塔朗，瑞銀。

(spoken in Chinese) Let me translate for myself. My question is about volume. As we actually noted that the industry has experienced more or less notable, like volume slowdown recently. So just curious about the underlying drivers behind it then more related to the pricing recovered recently?

（中文）讓我自己翻譯一下。我的問題是關於音量的。正如我們之前提到的，該行業近期經歷了或多或少明顯的銷售放緩。所以，我只是好奇背後的根本驅動因素，而不是與近期價格回升更相關的因素？

And also, how should we think about the volume growth for next year? And also, any potential changing in competitive landscape of competition dynamics and the volume slowdown going forward?

另外，我們該如何看待明年的銷售成長？此外，競爭格局、競爭動態以及銷售放緩方面是否有任何潛在變化？

(interpreted) Yes, indeed, thank you for your question. We have noticed a low on absent decline or deceleration in the industry. The recent announced October average growth of the industry is low-single digit, and that's been not seen for a long period of time. So we think that the recent deceleration in the industry growth is primarily due to the price increase driven by the evolution -- anti-evolution policy. This adjustment where overall logistic price has increased and has a greater impact on low margin and highly price-sensitive e-commerce merchants, resulting in a decline in that segment of the parcel.

（翻譯）是的，謝謝你的提問。我們注意到，該行業幾乎沒有下滑或放緩的跡象。最近公佈的10月產業平均成長率為個位數，這種情況已經很久沒有出現了。因此，我們認為近期行業成長放緩主要是由於反進化政策導致的價格上漲。此次調整導致整體物流價格上漲，對利潤率低、價格敏感度高的電子商務商家造成了更大的影響，導致該部分包裹數量下降。

Overall, the sector's parcel volume mix is shifted again towards a better structure with higher economics. Leading express delivery companies with stronger service capabilities and well-established product portfolios are poised to regain their competitive position. In other words, for those that typically gained volume from lower-priced packages will be impacted greater negatively.

總體而言，該行業的包裹量結構再次轉向經濟效益更高的更好結構。擁有更強大的服務能力和完善的產品組合的領先快遞公司有望重新奪回其競爭地位。換句話說，那些通常從低價套餐中獲得銷售的企業將受到更大的負面影響。

Looking ahead to next year, we expect the industry volume growth to perhaps stabilize and most likely to stay around 10%. This sector is shifting away from a single focus on volume growth towards higher quality as well as quantity development, with market resources increasingly gravitate towards service quality and operational efficiency. The future reshaping of the competitive landscape will be driven by ongoing regulatory influence alongside corporate self-discipline and standardized operations, paving the way for a healthier competitive landscape and sustainable long-term growth.

展望明年，我們預期產業銷售成長可能會趨於穩定，很可能會保持在 10% 左右。該行業正從單純追求數量成長轉向追求品質和數量並重的發展，市場資源也越來越傾向於服務品質和營運效率。未來競爭格局的重塑將受到持續的監管影響、企業自律和標準化營運的共同推動，從而為更健康的競爭格局和可持續的長期成長鋪平道路。

[Lujan Lam], [CTX Securities].

[Lujan Lam]，[CTX Securities]。

(interpreted) And I guess my first question will go with cost reduction. So if the anti-evolution policy continues into 2026, considering that the industry CapEx of 2025 would be actually set for a higher growth rate expectation, so would this possibly bring any challenges in our cost reduction is a lower cost growth shown in 2026? And as a result, could we be shed more some lights on the cost improvement in 2026?

（翻譯）我想我的第一個問題是關於降低成本的。如果反進化政策持續到 2026 年，考慮到 2025 年的產業資本支出實際上是按照更高的成長率預期設定的，那麼如果 2026 年成本成長放緩，這是否會對我們的成本削減帶來任何挑戰？那麼，我們能否進一步了解 2026 年的成本改善？

And the second question would be regarding to the competition structure. So as we can see that after setting price for some parcels in the major markets for some like in Guangdongyu and other province, would it lead to some more focused -- shift of the focus on the price competition from the lower calibrate to the higher one? And I guess that's my question.

第二個問題是關於競爭結構的。因此，我們可以看到，在廣東等主要市場的一些包裹定價之後，是否會導致價格競爭的重點從較低檔次轉向較高檔次？這就是我的問題。

(interpreted) Thank you very much for your question. Yes, ZTO has always been focusing on our cost efficiency. In the first development of our company, we -- because of attention -- because of our attention in capacity and infrastructure development, our competitive cost advantage is very apparent. And then as the industry progress, you saw that various other peers have also invested in facilities, equipment as well as transportation capabilities.

（翻譯）非常感謝您的提問。是的，中通一直非常注重成本效益。在公司發展的初期，我們—由於我們重視產能和基礎建設，我們的成本競爭優勢非常明顯。隨著行業的進步，你會發現其他許多同行也對設施、設備以及運輸能力進行了投資。

You saw that our competitive cost advantages across the industry is becoming more close to each other. We think that the focus now is not just in transit and line haul because out of the four segments of the end-to-end services, we have collection as well as delivery. For the total end-to-end cost reduction or cost efficiencies, we have initiated work in, for example, the 3+1 effort so as to continue to improve the cost equation across the whole process.

您可以看到，我們在整個行業中的成本競爭優勢正在變得越來越接近。我們認為，現在的重點不僅在於運輸和乾線運輸，因為在端到端服務的四個環節中，我們還有收貨和配送。為了實現端到端的總成本降低或成本效益，我們已經啟動了 3+1 計劃等工作，以便繼續改進整個流程的成本方程式。

We invested in technology, invested in higher efficiency in matching the capacity as well as the demand for capacity. We have helped our network partners to improve their automation capabilities as well to improve their efficiency allowing, for example, the couriers to have more time in focusing on their delivery work, at the same time, reducing the outlet overall last mile cost.

我們投資於技術，投資於提高效率，以配合產能和產能需求。我們也幫助我們的網路合作夥伴提高了他們的自動化能力，從而提高了他們的效率，例如，讓快遞員有更多的時間專注於他們的配送工作，同時降低了門市的整體最後一公里成本。

We do believe that with the existing operational layout, the cost advantage will eventually diminishing. However, with increasing attention to the end-to-end all segments coordination and integration in reducing cost, improve efficiency, not only the transit and sortation segment of our business will continue to lead in cost -- as well our cost efficiency as well as our network partners will gain advantage in becoming the lowest cost in the last mile as well as the pickup. We -- so hence, have high confidence in maintaining our cost leadership going forward.

我們相信，在現有的營運佈局下，成本優勢最終會逐漸消失。然而，隨著對端到端所有環節協調和整合的日益重視，以降低成本、提高效率，不僅我們業務的運輸和分揀環節將繼續在成本方面保持領先地位，而且我們的成本效益以及我們的網絡合作夥伴也將在最後一公里和取貨環節獲得優勢，成為成本最低的環節。因此，我們對未來保持成本領先地位充滿信心。

And then the second part of your question relates to what we will -- what we have observed going forward in the smaller packages becoming a lesser component of the total volume. So what we do, we will, based on the capacity layout of our whole network appropriately allocate and matching the resources.

然後，你問題的第二部分與我們觀察到的情況有關——即小包裝在總體積中所佔的比例越來越小。因此，我們將根據整個網路的容量佈局，適當地分配和匹配資源。

For example, in the middle and western part of our network, we should be able to gravitate more towards some policies for higher wait. And from an overall perspective, we believe we do have high confidence in managing the policy in addressing the shift in the mix of our volume. Again, we'll continue to focus on our balanced approach in developing volume, scale, and a reasonable profit level all under the premises of high quality of products and services going forward.

例如，在我們網路的中部和西部地區，我們應該能夠更傾向於採取一些等待時間更長的策略。從整體來看，我們相信我們有很高的信心來管理這項政策，以應對我們業務量結構的變化。我們將繼續秉持平衡發展策略，在確保產品和服務高品質的前提下，實現產量、規模和合理利潤水準的平衡發展。

Apologies. Please proceed.

抱歉。請繼續。

Yes. We believe this will conclude our call for today. Again, thank you, everybody, for joining us, and we look forward to have further discussions with you offline.

是的。我們相信今天的通話到此結束。再次感謝各位的參與，我們期待與大家在線下進行更深入的討論。

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

謝謝。今天的電話會議到此結束。感謝各位的出席。現在您可以斷開線路了，祝您有美好的一天。

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.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。