ZTO Express (NYSE:ZTO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 18, 2019 • 08:00 pm ET


ZTO Express (NYSE:ZTO) Q3 2019 Earnings Conference Call - Final Transcript


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Meisong Lai

efforts in educating our network partners to grasp the strategic importance of resource planning for last-mile operation. We're encouraged our network partners to proactively prepare for significant volume increase and established cost competitiveness.

The annual Singles' Day on November 11 has long being a industry-wide exercise to test the extreme for pickup sortation, transport and delivery for express delivery company.

On November 11, ZTO's order exceeded 200 million and the parcel volume surpassed 100 million. On November 12, our total parcel volume exceeded 10 billion for the year of 2019. Tens and thousands of ZTOians [Phonetic] were extremely proud of this milestone accomplishment, and we bound to stay vigilant and true to our mission and uphold our sense of responsibilities and urgencies, as we continue to charge forward.

2019 is nearing an end, and in the coming days, we will remain focused on empowering our network partners to build up their comprehensive capabilities, including stronger last-mile presence. We will inspire and support our front-line personnel to become self-motivated and therefore, with entrepreneurial spirit. We will remain focused on increasing capability with better timeliness and the higher cost efficiency. With Data analytics and the benchmarking, we aim to establish a healthy competitive atmosphere among regions to faster sharing, learning and improving and to raise the bar for overall operational excellence.

We will remain focused on attention to details and making better assessment of the policy impact, hence achieving finer balance between sales and procurement regions. Take advantage of the existing regional advantages, stay alert for market changes and continue expanding our volume advantage across the nation. We believe this strong domestic consumption needs are supportive of a healthy growth prospects and that's the Chinese express delivery industry will continue to maintain steady growth momentum.

Through an arduous journey in the past 17 years, ZTO is past from behind, and if we were to outperform our peers and attain [Phonetic] superior advantage and involve ultimately towards equal [Phonetic] advantage. We have a long road ahead. We must be simple for the great area we are in, the [Indecipherable] to what we want to accomplish, pressure of our partners and carry out each task earnestly.

With that, I thank you for your attention. Next, let us hear from Ms. Yah, who will discuss the financials.

Huiping Yan

Thank you, Chairman Lai and hello to everyone on the call. As I go through our financial results, please note that unless specifically noted, all numbers quoted are in RMB and percentage changes refer to year-over-year comparisons. Detail analysis of our financial performance, unit economics and cash flow summaries are posted on our website. Here, I will only highlight some of the key points.

ZTO delivered a strong volume growth this quarter and exceeded our earnings expectations without compromising quality of services. Our volume grow nearly 1 billion parcels, the speed, that is 18.4 percentage points faster than the industry average. Consequently, our market share rose 2.3 points to 18.9% for the quarter.

Total revenues for our core