ZTO Express (Cayman) Inc. (NYSE:ZTO) Q3 2023 Earnings Conference Call November 16, 2023 7:30 PM ET

Company Participants

Sophie Li - Investor Relations Director

Meisong Lai - Founder, Chairman and Chief Executive Officer

Huiping Yan - Chief Financial Officer

Conference Call Participants

Qianlei Fan - Morgan Stanley

Ronald Keung - Goldman Sachs

Aaron Luo - UBS

Operator

Good day and welcome to the ZTO Express Third Quarter 2023 Financial Results Conference Call. All participants will be in a 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.

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

Sophie Li

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.

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 related events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

Further information regarding this and other risks, uncertainties, and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under law.

It is now my pleasure to introduce Mr. Meisong Lai. Mr. Lai will read through his prepared remarks in their entirety in Chinese before I translate for him in English.

Meisong Lai

[Foreign Language]

Sophie Li

Thank you, Chairman, Lai. Hello, everyone. Thank you for joining today's conference call. For the third quarter of 2023, ZTO's parcel volume was 7.52 billion, which increased by 18.1% and expanded our market share to 22.4%. We maintained our industry-leading service quality and achieved an adjusted net profit of RMB2.34 billion, representing a 25% year-over-year growth. In the third quarter, China's express delivery industry maintained relative figure and grew its volume by 16.7% year-over-year.