ZTO Express (ZTO) is a public company. Founded on May 8, 2002, ZTO Express (“ZTO” or “the Company”) is one of the leading express delivery companies in China in terms of parcel volume, with a 20.4% market share in 2020. ZTO is both a key enabler and a direct beneficiary of China’s fast-growing e-commerce market, and has established itself as the trusted express delivery partner for millions of commerce customers, including online merchants and consumers selling and buying products on Chinese leading e-commerce sites, such as Alibaba, PDD, JD.com.

ZTO operates a highly scalable network partner model that enables it to expand nationwide network quickly and provide e-commerce merchants with greater geographic reach at low cost. Under a network partner model, it operates the mission-critical line-haul transportation and sorting network within the express delivery service value chain, whereas its network partners operate the outlets that provide first-mile pickup and last-mile delivery services. Operational efficiency and economies of scale enable ZTO to achieve strong operating leverage which drives higher return on invested capital and equity. ZTO’s objective is to become a world-leading comprehensive logistical services provider. Founded in 2002. It has 210 employees. IPO 2016.

Transcript

Operator

Please note that this event is being recorded. I would now like to turn the conference over to Ms. Sophie Li, Company Secretary. Please go ahead.

Sophie Li — Company Secretary and Director of Capital Markets

Thank you, Chuck. 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 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 they relate to events that involve