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

The company's results and 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 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.

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.

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. 赖总请。

大家好。感谢各位参加今天的电话会议。2025年四季度，快递行业整体业务量同比增长5%，行业增长节奏有所放缓。中通保持行业领先的服务水平，四季度完成业务量105.6亿件，同比增长9.2%，市场份额同比提升0.8个百分点。同时，我们实现了调整后净利润26.9亿元。中通保持持续保持了行业规模与盈利水平的领跑优势。2025年，我国快递行业整体实现了13.6%的稳健增长，业务规模初达了2000亿的量级。在三季度，国家相关部门郑重全面地倡导反内卷和强化基层民生保障，为行业健康和持续发展确立了方向。快递市场整体价格水平企稳回升，行业发展由追求数量规模加速向量质并举的发展新阶段转型。2025年全年，中通完成业务量385亿件，市场份额与去年持平。在行业发展转型的关键阶段，中通坚守高质量发展战略，持续深化差异化产品和能力建设，取得了扎实的成效。面对严峻的竞争态势，中通积极响应国家的号召，带头维护稳健发展的行业秩序，用扎实的基建、筹措运筹和管理能力维护质量、规模和盈利水平的优势。全年散件业务量同比增长46%，远超电商件整体增速。四季度的日均散件业务量接近提升至接近1000万单。产品的结构优化提升了品牌的认知与客户心智，并有力地支撑了快递核心业务收入的增长，缓解了增量补贴的压力。与此同时，我们持续强化转运各环节标准化运营以及协同，运营效能与服务时效同步提升，全年单票直运和分拣成本下降了6分。结合稳定的管理费用结构，全年调整后净利润达到95亿元。进入2026年，快递行业依托宏观经济稳健的基本面和反内卷政策的持续深化，进一步凝聚高质量发展的共识。当然，市场依然存在不确定性，量质并举的转型还需要深耕。中通将肩负行业与社会的责任，紧扣健康持续发展的战略策略，聚焦转运和末端能力建设，持续优化网络政策的公平性和透明度，夯实网络信任、信心。下阶段的重点工作具体是：一、提升服务品质，筑牢品牌优势。结果导向，同时注重执行协作，将公平和平台指数融入绩效考核，责任到岗、到人、到行为。聚焦短板，定向整改，结合产品结构不断优化，提升服务能力和差异化水平，做大品牌影响力。二、深化降本增效，夯实成本优势。以全链路协同为核心，加速直分直送等模式落地，建立标准化成本线，可视化对比法，将降本目标穿透至末端各环节，通过波动监测、深挖潜力，实现收、转、运、派各环节行业成本效益最优。三、优化网络政策与激励机制。聚焦业务量稳健增长和成本效益的提升，对份额落后区域加大市级的分析，确保分担机制的有效性，激励资源精准投放。四、坚守公平公正的导向，保障网络稳定，维护合作伙伴的权益与义务，平衡好利益分配，多劳多得、优胜劣汰。在保障网点及业务员合理收入的同时，支持、赋能优质网点，帮扶治理落后网点，保护全网共生共赢的健康氛围。中国快递行业长期发展的前景依然良好，竞争态势将稳步趋向理性。随着头部企业持续回归内在价值，行业格局会继续分化并提高集中度。中通坚守长期发展的战略，服务质量、市场份额、合理利润三位一体。在行业由规模扩张向价值回归转变的阶段，我们只有坚持引领量质并举，拓展多样化和差异化的产品和服务，夯实基建规模底盘，发挥数字化运营的生产力，挖掘端到端降本提质的潜力，注重网络的长期稳定，才能把握机遇，穿越周期。二十多年来，做好自己对中通而言是万变之下的不变。我们会依托同建共享的理念，以务实的精神践行造就更多人幸福的使命，在行业高质量发展新征程中继续领跑，为中通生态创造持续、长远的价值。谢谢。接下来由严总介绍财务结果和预期。谢谢。

Thank you, Chairman Lai. Please allow me to translate first.

Hello, everyone. Thank you for joining today's conference call.

In the fourth quarter of 2025, the express delivery industry's overall parcel volume grew moderately by 5% year-over-year. ZTO maintained its industry-leading service quality during the quarter, with parcel volume reaching 10.56 billion, an increase of 9.2% over last year, and our market share expanded by 0.8 percentage points.

At the same time, we achieved an adjusted net income of 2.69 billion. ZTO continued to lead the industry in both scale and profitability.

For the full year of 2025, China's express delivery industry achieved a steady growth of 13.6%, with volume reaching the 200 billion parcel milestone. In the third quarter, relevant government agencies formally advocated against involution and promoted the protection of grassroots interests, steering the industry towards healthy and sustainable development.

As a result, overall pricing stabilized and recovered, and the industry accelerated its transition toward a new stage of development focused on both quantity and quality. In 2025, ZTO achieved an annual parcel volume of 38.5 billion, maintaining a steady market share year-over-year.

During this critical phase of industry transformation, ZTO stayed committed to our high-quality development strategy, continuously enhanced differentiated product offering and service capability. Facing intense competition, ZTO actively responded to the government's call and took the lead in maintaining a healthy industry order.

Leveraging our robust infrastructure, data-driven operations, and management capabilities, we successfully safeguarded our competitive advantages in quality, scale, and profitability. Our annual retail parcel volume grew by 46% year-over-year, significantly outpacing the overall growth of e-commerce parcels.

In the fourth quarter, daily retail volume reached close to 10 million parcels. This product mix optimization has enhanced brand recognition and affinity while providing strong support for core revenue growth and alleviating the impact from volume-based subsidies.

At the same time, we continue to strengthen standardized operations and coordination across our transit segments, improving both operational efficiency and service timeliness. Our combined unit cost for transportation and sorting decreased by 6 cents for the full year.

With a stable SG&A structure, our annual adjusted net income reached 9.5 billion. Entering 2026, the express delivery industry is further reaching a consensus on high-quality development, supported by stable macroeconomic foundations and ongoing efforts against involution.

Naturally, market uncertainties remain, and the transition toward quality growth requires deeper cultivation. ZTO will shoulder its responsibility by adhering to strategies for healthy and sustainable development.

We will focus on transit and last-mile capability building, continue to optimize the fairness and transparency of network policies, and protect trust and confidence. Our priorities for the next stage are as follows: First, uphold service quality to reinforce brand advantages.

Stay results-oriented while focusing on execution. We will integrate public and platform service indicators into performance evaluations, with accountabilities assigned to specific positions, individuals, and behaviors.

By targeting specific weak links and continuously optimizing our product mix, we will enhance our service capability and differentiations to expand our brand influence. Second, deepen efforts for cost reduction and operational efficiency to solidify cost leadership.

Centered around better integration from end to end, we will accelerate the implementation of direct linkage model. We will establish standardized, visualized, and comparable benchmarks, and by prescribing cost reduction targets to every last-mile segment and leveraging fluctuation monitoring to unlock potential, we will achieve optimal cost efficiency across pickup, transit, and delivery.

Third, optimize network policies and incentive mechanisms. Focus on steady volume growth and improved cost efficiency.

We will rely on detailed analysis for regions with lacking market share to enhance the efficiency of cost-sharing mechanisms and ensure more precise deployment of resources. Fourth, safeguard fairness to ensure network stability.

Secure rights and obligations of our partners while balancing profit distribution, strictly implementing better pay for better results and survival of the fittest while ensuring reasonable income for outlets and couriers. We will empower high-quality outlets and provide support in governing underperformers to protect a win-win ecosystem.

China's express delivery industry remains positive, and competition will steadily become more rational. As the leading enterprises continue to turn to intrinsic value, the industry landscape will further bifurcate and the concentration will increase.

ZTO remains committed to its long-term strategy of integrating service quality, market share, and reasonable profit. As the industry shifts from scale expansion to include value proposition, we must lead the way in prioritizing both quantity and quality.

Only by expanding diversified and differentiated products, reinforcing our infrastructure foundation, harness the productivity of digital operations, unlocking the potential of end-to-end cost reduction, and prioritizing the long-term trust and stability of our franchise network can we seize opportunities and navigate through cycles. For over 20 years, being our best has been the constant for ZTO amidst all changes.

Building on our shared success philosophy, we will take pragmatic actions to fulfill our mission of bringing happiness to more people. We will continue to lead in this new journey of high-quality development, creating sustainable and long-term value for the ZTO community.

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

Thank you, Chairman, and thank you, Sophie. Hello to 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 comparison. Again, detailed financial information and performances, unit economics, and cash flow are already posted on our website, and I will only go through some of the highlights here.

In the fourth quarter, benefiting from the government's call against involution, we prioritized service quality and core competency to drive sustainable growth. Our parcel volume grew 9.2% to 10.6 billion in Q4 and 13.3% to 38.5 billion for the full year.

Total revenue increased 12.3% to 14.5 billion in Q4 and increased 10.9% to 49.1 billion for the year. Income from operations was 3.2 billion and 0.5 billion, or decreased 7.6% and 11% for the fourth quarter and the year, respectively.

As our corporate spending remained stable and efficient, we achieved adjusted net income of 2.7 billion and 9.5 billion for the fourth quarter and full year, respectively. ASP for our core express delivery business increased by 2.9%, or 3 cents, in Q4.

This was primarily driven by a 15-cent positive contribution from an improved mix in KA volume, specifically our higher-value reverse logistics services counter-offsetting 11 cents in higher-volume incentives. For the full year, ASP decreased slightly by 1.7%, or 3 cents.

This reflects a 16-cent gain from higher retail volume offset by a 15-cent impact from volume incentives and a 3-cent decrease due to lower average weight per parcel. Total cost of revenue was 10.8 billion for Q4 and 36.8 billion for the year, which increased 18.2% for Q4 and 20.5% for the full year.

From a unit perspective, while the core express delivery unit cost rose 8 cents to RMB1 in Q4 and 7 cents to 94 cents for the year, KA cost was the main driver for the increase, which was partially offset by transit cost productivity. The combined unit cost for sorting and transportation decreased by 4.5%, or 4 cents, in Q4 and 8.8%, or 6 cents, for the year, driven by economies of scale and our ongoing productivity initiatives.

Specifically, unit cost of line-haul transportation decreased 7.5% to 37 cents in Q4 and 12.2% to 36 cents for the year, reflecting optimized route planning and enhanced load efficiencies. Unit sorting cost remained steady at 26 cents in Q4 and decreased 3.7% to 26 cents for the full year.

Automation continues to drive labor efficiency though partially offset by the ramp-up and upgrade cost of new and existing facilities. Unit KA cost increased by 13 cents, which is consistent with the strategic expansion of our KA volume.

Gross profit declined 2.1% to 3.7 billion for Q4 and 10.5% to 12.3 billion for 2025. Gross profit margin rate decreased 3.7 points to 25.4% for the quarter and 6 points to 25% for the year.

SG&A, excluding SBC, decreased 1.3% to 641 million for Q4 and increased 1.6% to 2.4 billion for the year. SG&A expenses, excluding SBC, as a percentage of revenue declined to 4.4% for the quarter and 4.9% for the year, reflecting strong corporate cost efficiency.

Income from operations decreased 7.6% to 3.2 billion for Q4 and decreased 11.1% to 10.5 billion for the year. Associated margin dropped 4.7 points to 22% and 5.3 points to 21.3% for the year.

Operating cash flow surged 50.6% to 4.2 billion in Q4 and reached 12 billion for the year. Excluding the 850 million one-time franchise deposit refunds under the new business policy in Q4 last year, our cash flow from operations remains robust.

Capital expenditures for the year totaled 6.1 billion. Now moving on to our business outlook.

Based on current market conditions, we anticipated our parcel volume for 2026 to grow in the range of 10% to 13% year-over-year. This growth rate implies an annual parcel volume between 42.37 billion and 43.52 billion.

We are committed to growing our volume faster than the industry average for the year. Now on to our shareholder returns.

The board has approved a semiannual cash dividend of $0.39 per ADS in accordance with the established 40% payout ratio. In addition, having substantially completed our previous $2 billion program, the board has authorized a new 24-month $1.5 billion share buyback program effective through March 2028.

Finally, we are pleased to announce an enhanced shareholder return program. Starting from 2026, company targets an aggregate annual return ratio of no less than 50% of our adjusted net income for the previous fiscal year, comprising both cash dividends and share buyback.

This enhancement reflects our commitment to optimize capital allocation and delivering consistent, long-term value to our shareholders. This concludes our prepared remarks.

Operator, please open the line for questions. Thank you.

Thank you, operator. 管理层好，感谢接受我的提问。我有两个小问题。第一个小问题还是关于反内卷的，就是我们在春节之后也有看到各种新闻关于各地反内卷的一些新的动向。那么想请教一下管理层对今年反内卷的持续性的一个判断，以及对这个监管态度的一个理解。第二个小问题是有关于行业的增速和竞争格局的。那考虑到现在反内卷有一些对价格上的托举，现在我们对整个行业的增速是一个什么样的判断？那么在这样的判断之下，怎么看待未来行业竞争格局的变化？Let me translate for myself.

Thank you, management, for taking my question. I have two questions.

The first question is about anti-involution. After the Chinese New Year, we have seen lots of news on the anti-involution dynamics everywhere in China.

Is there any new updates on the anti-involution initiatives? How do you expect the sustainability of such anti-involution-driven price hikes?

What's your take on the attitude from the regulators towards anti-involution, and what's your expectation on the potential pricing trends for the rest of the year? The second question is about industry growth outlook and competition landscape.

Taking into consideration of potential price hikes amid anti-involution, what's your expectation on the full-year industry growth outlook? With this outlook, what's your expectation on the industry competition landscape and market share dynamics?

Thank you.

谢谢您的提问。自去年三季度反内卷政策推行以来，行业竞争环境持续向好，快递价格水平稳步回升，末端权益得到有效保障。春节以来，反内卷的政策得到有效延续。随着政策的常态化执行，行业有望继续在成本线以上的有序竞争。作为头部企业，中通将坚定不移地响应政府反内卷号召。我们既是参与者，我们更是引领者。坚持服务质量为先的平衡发展战略，切实保障网络末端权益，维护健康有序的行业发展环境。第二个问题是增速与竞争格局。行业增速首先从行业规模来看，去年中国快递行业业务量已接近2000亿件，基数较高。其次，随着反内卷政策的贯彻执行，快递价格稳步提升，低价包裹逐渐减少。我们认为行业增速逐步放缓是合理的。快递行业将以量为导向逐步迈向高质量发展的新阶段。今年我们国家局预计行业增速在8%，我们官方指引中通是增速我们中通是10%到13%。竞争格局随着宏观经济持续向好以及快递行业转向高质量发展，市场资源将更多地向注重服务品质与运营效率的企业集中。龙头企业凭借优质服务能力和稳固的网络体系，有望在竞争中进一步巩固自身优势。在政策引导与行业治理的共同作用下，行业分化趋势有望继续深化，从而推动形成更加健康有序的竞争格局。谢谢。

Thank you very much for your question. I'll translate for the Chairman here.

Since the introduction of the anti-involution policy in the third quarter last year, the industry's competitive landscape has steadily improved, parcel prices have recovered, and the focus has turned towards safeguarding the interest of frontline people such as the outlet and couriers. Following the Spring Festival, the policy has remained in effect, and with its continued enforcement, the industry is well positioned to sustain orderly competition above the cost line.

As one of the key players in the industry, we are not only participant, but also must take on the leadership role. ZTO's strategy is well aligned with government's effort to combat involution, seeking a balanced development that prioritizes service quality, effectively protect the right and interest of outlets and couriers, and promote a healthy, orderly, competitive environment for the industry.

Now for the second question, first, the sector's growth. The scale or the parcel volume of China's express delivery industry has approached 200 billion in 2025, which established a significantly large base.

Second, with the implementation of the anti-involution policy, express delivery prices have steadily recovered and low-price parcel volume have gradually decreased. It is reasonable to expect a gradual deceleration of the industry growth, and the sector is likely to transit from a volume-driven model to a new phase focused on high-quality development.

Now the Postal Bureau has estimated a 8% growth for 2026, and ZTO has given a guidance of growth between 10% to 13%, which certainly implies the development faster than the industry average. On the competitive landscape, as the macroeconomic condition continues to improve and express delivery industry moves towards higher-quality development, market demand will naturally gravitate towards and become increasingly concentrated among companies that prioritize service and operational efficiencies.

Leading enterprises leveraging their superior service capabilities and well-established infrastructure network are better positioned to further consolidate the market. Driven by policy guidance and reinforced by industry self-regulation, the trend of bifurcation is expected to further fostering a healthier and more orderly competitive landscape.

Hope that answers your question.

Thank you. Thank you very much.

Hey, 早上好，赖总、严总、Sophie。谢谢接受我的提问。那很高兴看到我们的这个单量指引和增强股东回报的举措。我有两个问题。第一个呢也是和反内卷相关。那就是在这个新的一个价格纪律的一个背景下，想请教公司2026年的一个优先级是更加偏向我们的份额增长，还是利润修复，还是说我们的网点生态治理？那也留意到我们推出了一个2亿元的服务专项奖励基金，那是否意味着我们将阶段性地加大对一线员工和网点治理的一个支持力度？我的第二个小问题是2026年1到2月呢其实整个行业的GMV增速呢也是两年来首次超过了一个快递件量的一个增速哈。那也想请教管理层我们怎么看待今年行业整体市场结构的演变？那比如说这个变化呢更多是一个低价件出清带来了一个阶段性的改善，还是说市场结构有一些深层次的变化？那如果是后者，是否意味着行业竞争有机会从过去的价格导向阶段性地转向服务质量导向，然后为这个ASP改善提供一个更持续的支撑？我简单翻译一下。Good morning, management. I have two questions.

My first question is under the anti-involution scheme, what is the 2026 priority for your company? Is it market share, profit, or network governance?

Also, does the RMB200 million fund that you dedicated to support your frontline employee as well as your network signal more support for your partners? My second question is given the January to February GMV growth industry-wide has been faster than the volume growth and which has been a first time since 2023, is this mix-driven or structural, and could the competition shift to quality as a result to support ASP improvement?

感谢你的提问。你的第一个问题是反内卷的背景下公司的优先级和我们2亿元服务专项基金意味着对公司网点治理的支持力度。中通始终坚守服务质量、市场份额、合理利润三位一体的底层逻辑，这是我们穿越周期、把握长期机遇的核心战略定力。2026年以来，依托宏观经济稳健的基本面，行业反内卷共识正持续深化。中通将坚决响应国家号召，带头维护稳健、理性的行业秩序，驱动经营重心由规模扩张向量质并举的价值回归加速转型。我们深知加盟网点的生态的修复与稳定是全网高质量发展的基石，其战略意义远超短期财务表现。在此因此我们将阶段性工作重心聚焦于优化网络政策的公平性与透明度，切实保障基层合作伙伴及一线业务员的合理收入，就是说网点盈利要提升，业务员收入要增加。我们今年推出的2亿元服务专项奖励基金，这是就是要把这个质量摆在更重要的位置。我们这2亿元的奖励基金，会结合到网点、业务员以及我们快递全链路的各个环节。目的是要在我们去年服务质量领先的基础上，进一步扩大质量的优势。也是公司践行同建共享理念，务实行动、精准扶持优质网点并赋能一线员工的体现。旨在通过利益优化利益分配机制，激发全网内生动力，在筑牢品牌优势的同时，构建共生共赢的健康生态。你第二个问题就是电商的GMV增速和快递增速的问题，还有这个整体市场结构的演变。2026年开年，电商客单价、AOV的转正，印证了行业正从低价卷量向价值回归的深度转型。这一变化的核心动力源于宏观修复与政策导向的叠加，随着反内卷共识的深化，低价件正加速出清。我们坚信无序的价格竞争不为电商和快递创造任何增量价值。当前市场演变并非阶段性改善，而是竞争维度的实质性升级，是从价格导向转向服务质量导向。这种结构性变化将为行业价格持续回升提供坚实支撑。中通始终坚持三位一体的战略，通过高质量客户的开发已取得一定成效。2025年我们散件量同比增长46%，四季度日均已进千万单。未来，我们将继续凭借领先的成本护城河和优质的服务品质，引领行业在量质并举的新阶段穿越周期，创造长期价值。谢谢。

Thank you very much for your questions. ZTO remains steadfast in our fundamental approach of integrating service quality, market share, and reasonable level of profit, which serves as our core strategy and our resolve to navigate cycles and seize long-term opportunities.

Entering 2026, supported by stable macroeconomic fundamentals, the industry-wide consensus against involution continues to solidify. ZTO will respond to the national call by taking the lead in maintaining a steady and rational industry competitive order, driving an accelerated transition of our operational focus from scale expansion towards a value proposition centered on both quality and quantity.

We clearly recognize that the restoration and stability of our franchise network's ecosystem in terms of their trust and hope are the cornerstone of high-quality development across the entire network, with a strategic significance that far outweighs short-term financial gain. Therefore, our current strategic focus is on continuously optimizing the fairness and transparency of our network policies to effectively safeguard the reasonable and rightfully so the level of income of our grassroots partners and frontline couriers.

The recent launch of RMB200 million special service incentive fund is indeed intended specifically for the fact that we are putting quality as the priority. This is a concrete demonstration of our shared success philosophy and our pragmatic actions to provide targeted support to higher-quality outlets while empowering frontline employees.

This initiative aims to stimulate the network's intrinsic motivation by optimizing profit-sharing mechanism, reinforcing our brand advantage while building a win-win ecosystem for the entire network. The 200 million is going to be allocated and distributed across the whole end-to-end operations from pickup to delivery.

The goal is to very specifically further expand our recognition of shared success as well as our effective approach to allocate interest among all the stakeholders, including the small micro-operators of our business, which are the key foundation of our long-term success. Now your second question.

The turnaround in average order value in early 2026 confirms that the industry is undergoing a transformation from lower-price volume chasing to value restoration. This shift is fundamentally driven by the stabilization of macro fundamentals and the deepening consensus against involution, which has accelerated the exit of loss-making low-price volume.

We firmly believe that irrational price competition creates no incremental value for either e-commerce platforms or express delivery operators. Current market dynamics represents a structural upgrade in competition, moving from price-driven to quality-driven.

This evolution provides a solid foundation for sustainable price improvements across the whole industry. ZTO remains committed to our tripod strategy, and our focus on high-quality customer services has yielded clear results.

In 2025, our retail parcel volume surged 46% year-over-year, with daily volume approaching 10 million in Q4. Looking ahead, we will continue to leverage our leading cost advantage and superior services to lead the industry through this quantity-to-quality cycle and create long-term value.

Thank you for your question.

let me translate myself. Thank you for taking my question.

I have two questions. One is about our recent issuance of convertible bond in early February.

Just would like to understand a bit more of our major considerations behind our recent CB issuance, and more importantly, at what pace should we expect for the share buybacks to proceed? The second question is about AI, which has been continue to be a very hot topic among investors.

Just curious about what are the major applications of AI and even large models at our company? Thank you so much.

Can I just go straight to English? Yeah.

Good. The convertible bond, yes, in February 2026, the company issued 1.5 billion 5-year convertible bonds.

We launched it during a window where we can take advantage of a low-cost financing tool during a period where the company's market value was underassessed. The proceeds with a net amount of about $1.4 billion is intended solely for company's share buyback.

This issuance is intended to effectively enhance earnings per share, which we did, and hence improve our shareholder value and protect interest and optimize our company's capital structure. The pace of buyback is that the repurchase program is processing very efficiently.

We have completed the $600 million total, it's approximately $600 million total share buyback on the issuance date as well as during the subsequent trading window. For the remaining 800 million, we plan to complete the repurchase over the next year in line with our market taking in consideration with the market price fluctuations, at a reasonable price range, we will put in programs to consistently doing the buyback in order to strengthen our shareholder return.

The new shareholder return plan, you didn't ask that question, but I think I'll just take this opportunity to provide some insights. We established a consistent and integrated shareholder return system, and this is going to be a combined dividend and buyback mechanism which is out of the total no less than 50% of the adjusted net profit from prior year.

Now your question on the AI, on the second question. 感谢你的提问。中通在AI和大模型上的应用，中通近年来持续深化数字化转型，推动人工智能在快递全链路的深度集成，已实现从经验驱动向模型驱动的本质变革。首先，在AI赋能全链路方面，我们的重点是降本增效。一、分拣端的精细化管理。我们正在推广三维数字孪生和机器视觉技术，目前已覆盖25个中心。这套系统能实现远程管理和异常自动预警，帮中心和网点把错分率降低了60%以上。在提升运营精度的同时，极大地降低了人工成本。二、客服端的智能化升级。我们推出的智能客服已经能自动处理超过70%的全链路工单，并按三级售后直达派件业务员。同时，问小通和查件通智能体覆盖网点80%以上的日常业务咨询，显著节省了总部的客服成本。三、末端环节的精准调度。依托自建的高精度地图数据，我们在驿站选址、派送路径规划等场景深度应用。这不仅帮大型网点降低了20%以上的短驳运力成本，在散件揽收高峰期也实现了日均千万级订单的精准分单和智能调度。其次，关于大模型，我们正推动它从执行工具向经营伙伴进化。过去AI主要是替代重复劳动，而大模型正在深度改变我们的业务系统。目前我们主要发力两个方面：一、深度业务分析。在总部和管区，我们利用智能问数进行数据挖掘，它不仅能按需生成报表，更能从复杂的客户、质量和成本数据中挖掘出管理层尚未察觉的规律，让技术真正渗透进管理内核。二、高精度业务预测。我们正在引入通用时序预测大模型，升级现有的预测体系。这个模型能学习跨行业的海量规律，快速理解新场景，从而实现颗粒度更精细、响应更及时的件量预测，为我们运营决策提供有力的数据支持。谢谢。

Let me help translate. ZTO has steadfastly advanced its digital transformation in recent years as well as driving further and deeper integration of AI technology across the entire express delivery chain to achieve a fundamental change from experience-driven to data-driven operations.

First, our focus on AI empowerment across the entire chain is on reducing cost and increasing efficiency. Refined management at the sorting end, we are promoting the application of 3D digital twins and computer vision technologies, which have now been implemented in 25 of our super sorting centers.

This system enables remote monitoring and automatic anomaly alerts, helping sorting centers and the outlets reduce missorting rates by 60% while improving operational precision. It has also significantly lowered labor cost.

On the customer service side, the intelligent service center is leveraging the AI-powered customer service system so that they are able to automatically handle over 70% of end-to-end work orders and enable merchants to directly connect with last-mile couriers that are in progress or after-sales support. Meanwhile, intelligent assistants such as Ask Xiao Tong and Tracking Assistant covers over 80% of routine businesses inquiries at the outlet level, significantly reduced customer service cost at the outlet level as well as headquarters.

On the last-mile dispatching side, it becomes more precise now with the AI technology implementation. We are able to leverage our in-house high-precision mapping data.

We are able to have a deeply applied scenarios such as outlet site selection and delivery route planning, which is time dynamic. This has not only empowered large-scale outlets to reduce short-haul transportation costs by over 20%, but also enabled precise order allocation and intelligent dispatch for tens of millions of orders per day during peak retail parcel collection period.

On the second part about the large modeling, we are driving the evolution from execution tools to have it become more of a business partner for a AI agent scenario. In the past, AI was primarily focused on replacing repetitive labor, but large models are now transforming our business operation structures and cycles.

Currently, we are focusing on two key areas. One, deep business analysis.

At both the headquarters and regional level, we leverage AI-driven inquiries for data mining. This tool not only generates reports as needed, but also uncovers hidden patterns within complex customer, quality, and cost data that management can have previously overlooked, effectively so that we can embed technology into the heart of our lean management system and also for problem identification and problem solving.

Second, high-precision business forecasting. We are introducing a general-purpose time-sensitive forecasting model to upgrade our existing forecast system.

This model can learn from vast patterns across industries based on our huge database historically as well as ongoing, and quickly adapt to new scenarios, enabling more gradual and timely parcel volume forecast and providing robust data support for our operations, including the capacity planning, the route planning, so that we are able to maximize intelligence to drive operational efficiencies. That is the answer to your second question.

Thank you, everyone, again for joining us. As the Chairman had pointed out that the industry is entering into a stable growth stage, and we are committed to grow our volume faster than the industry average.

Our tripod strategy and corporate directives are intact, and we are focused on building our infrastructure capability or enhancing our capability with technology, as well as helping ensure the fairness of our network policy to further enhance the trust and fairness across our network so that we have a sustainable long-term business creating value for all our stakeholders, including shareholders. This concludes our meeting today.

Thank you again. We look forward to talk with you offline.

Thank you.