Wu Jinlin

Wu Jinlin from Citic Securities asked about potential cost pressures in 2026 if the anti-involution policy leads to lower parcel growth than anticipated, given 2025's capacity investments. He sought ZTO's outlook on cost improvement for 2026. He also questioned if localized price competition, following floor price settings in major markets, would shift focus from lower to higher kilogram range parcels.

Answer

Chairman and CEO Meisong Lai acknowledged that while transit cost advantages might narrow due to industry-wide capacity investments, ZTO's overall end-to-end cost optimization, including collection and delivery, will continue through digitalization and smart investments. He expressed confidence in maintaining cost leadership. Regarding competition, he confirmed a decrease in light, low-ASP parcels due to anti-involution and stated ZTO would adjust resource allocation, potentially making adjustments for higher weight parcels in certain regions, while balancing market share, quality, and profit. CFO Huiping Yan emphasized ZTO's continuous focus on end-to-end cost efficiency, leveraging technology and automation to improve all segments, including last-mile. She confirmed that the mix is shifting away from smaller packages and ZTO will adapt policies for higher-weight parcels in specific regions, maintaining a balanced approach to volume, scale, and profit.