ZTO Express (NYSE:ZTO) Q1 2020 Earnings Conference Call - Final Transcript
May 20, 2020 • 09:00 pm ET
billion. We further strengthened our infrastructure in anticipation of future volume increases in the business as well as resource planning for development of our system. We anticipated -- we anticipate our capex plan remain to be around RMB6 billion to RMB8 billion for the year.
With depreciation and amortization increasing 40% and 35% respectively, our EBITDA was RMB1.2 billion, which declined 21%. Our transit and sorting capability and capacity as well as operational efficiency against continued rising cost of labor relies greatly on sufficient infrastructure investment.
Now let's turn to business outlook. While the world outside of China is still coping with COVID-19 outbreak, we hold a optimistic view on domestic Chinese economic recovery development. Based on April and May performances so far, we are confident in delivering positive top line and bottom line growth for the year. We target to achieve an annual parcel volume in the range of 15.9 billion to 16.8 billion for the year, representing a 31% to 35% growth for the whole year or 37% to 42% for the next three quarters combined. At the same time, we expect to deliver an adjusted net income in the range of RMB5.39 billion to RMB5.83 billion, representing a 2% to 10% increase for the year or 10% to 20% increase for the combined last three quarters. These current estimates are prudent and are reflective of our preliminary view, which are subject to change as we continue to monitor the change in the competitive environment as well as the economic environment.
This concludes our prepared remarks. Operator, please open the line for questions. Thank you.