Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,458,100.31 million, representing a 4.50% increase compared to CNY 1,395,304.57 million in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 97,090.10 million, an increase of 12.55% from CNY 86,264.59 million year-on-year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 89,698.26 million, up 8.15% from CNY 82,939.17 million in the previous year[16]. - The net cash flow from operating activities was CNY 122,968.00 million, reflecting a 12.13% increase from CNY 109,668.66 million in the same period last year[16]. - The total assets at the end of the reporting period were CNY 2,429,623.48 million, a 9.64% increase from CNY 2,216,097.25 million at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company increased by 26.93% to CNY 1,636,587.25 million from CNY 1,289,366.38 million at the end of the previous year[16]. - Basic earnings per share for the first half of 2020 were CNY 0.3229, a 5.70% increase from CNY 0.3055 in the same period last year[17]. - The diluted earnings per share were CNY 0.3126, reflecting a 7.72% increase from CNY 0.2902 year-on-year[17]. - The weighted average return on net assets was 6.53%, a decrease of 0.73 percentage points compared to 7.26% in the previous year[17]. Operational Efficiency - The company reported a non-operating loss from the disposal of non-current assets amounting to -2,814,967.61 RMB[18]. - Government subsidies recognized in the current period, closely related to normal business operations, totaled 44,034,422.45 RMB[18]. - The fair value changes and investment income from trading financial assets and derivatives amounted to 46,909,295.04 RMB[18]. - The company has a total of 4,395 franchisees and 33,088 end-point networks across 31 provinces, with a county-level coverage rate of 97.33%[20]. - The company operates 73 self-owned hub transfer centers and 5 self-owned city distribution centers nationwide[20]. - The company has over 5,000 trunk transport vehicles, including 2,002 owned vehicles and a fleet of 12 aircraft[20]. - The company aims to enhance its international express service capabilities and optimize cross-border logistics products and service chains[20]. - The company has implemented a flat franchise model, allowing for strong network control and stability[28]. - The company has developed a comprehensive terminal delivery network, including smart lockers and third-party stations, to improve last-mile delivery efficiency[30]. - The company has established a series of management standards for franchisees to ensure service quality and operational efficiency[31]. Industry Overview - In the first half of 2020, the express delivery industry in China completed a total of 33.88 billion packages, representing a year-on-year growth of 22.1%[39]. - The total revenue of the express delivery industry reached 382.38 billion yuan, with a year-on-year increase of 12.6%[39]. - In Q2 2020, the express delivery industry completed 21.35 billion packages, showing a significant year-on-year growth of 36.75%[39]. - The express delivery industry’s revenue in Q2 2020 was 228.98 billion yuan, reflecting a year-on-year growth of 23.52%[39]. - The CR8 index for the express delivery industry increased to 84.1, up by 1.6 percentage points from the end of 2019, indicating a rise in market concentration[39]. - The express service quality index improved to 666.72 in June 2020, a year-on-year increase of 124.3%, marking a shift towards high-quality development in the industry[39]. Customer Service and Experience - The company has established a comprehensive training system for franchisees, including pre-business training and mandatory training for underperforming partners[33]. - The company utilizes an information platform to monitor franchisee performance in real-time, ensuring operational efficiency and service quality[34]. - The company has implemented an emergency response mechanism for franchisees facing operational challenges, ensuring business continuity[37]. - The company improved its end-to-end delivery efficiency through a comprehensive monitoring system, resulting in a steady enhancement of delivery timeliness[52]. - The company implemented a proactive customer service approach, leading to a noticeable decrease in customer complaint rates by the end of June 2020[53]. - The company enhanced customer experience by promoting a customer manager tool, achieving rapid penetration among e-commerce platform merchants by June 30, 2020[54]. Financial Management - Operating costs rose by 5.34% to CNY 1,288,511.66 million, primarily due to increased express delivery volumes[63]. - Sales expenses surged by 39.68% to CNY 4,920.10 million, driven by market expansion and shared customer service promotions[64]. - The company reduced its R&D expenses by 62.92% to CNY 1,362.14 million, mainly due to a decrease in capitalized R&D projects[65]. - The net cash flow from operating activities increased by 12.13% to CNY 122,968.00 million, attributed to lower employee compensation and corporate income tax payments[65]. - The company achieved a significant reduction in costs, with transportation costs per package down by 31.26% to 0.51 RMB, and center operation costs down by 15.02% to 0.33 RMB[72]. - The company reported a total operating cost of 1.288 billion RMB, with the largest cost component being delivery service expenses at 599.53 million RMB, which accounted for 46.53% of total costs[69]. Risk Management - The company faces market risks due to macroeconomic fluctuations, which could adversely affect the express delivery industry and the company's performance[86]. - The company is at risk of market competition as industry concentration increases, necessitating differentiation through service quality and cost control[87]. - The company is exposed to customer demand changes, requiring timely adjustments to business strategies and service offerings to avoid customer attrition[88]. - Fluctuations in fuel prices pose a risk to the company's profit levels, with potential increases in transportation costs if prices rise[89]. - The company's main revenue source is concentrated in e-commerce, which could impact growth if the sector slows down[91]. - The company is experiencing a decline in gross profit margins due to rising labor costs and competitive pricing pressures[92]. - The company has established a safety management system to mitigate risks associated with the security of parcel delivery[97]. - The company faces management risks due to rapid business growth, which complicates personnel and subsidiary management[98]. Corporate Governance - The company did not distribute profits or increase capital reserves in the first half of 2020, with no dividends or stock bonuses declared[102]. - The company appointed Lixin Certified Public Accountants as the financial audit and internal control audit institution for the year 2020[106]. - There were no significant lawsuits or arbitration matters during the reporting period[108]. - The integrity status of the company and its controlling shareholders remained good, with no unfulfilled court judgments or significant debts due[109]. - The company completed the repurchase and cancellation of part of the unvested restricted stock in January 2020[110]. - The company approved the first phase of the stock option incentive plan on April 28, 2020, with independent directors providing prior consent[111]. Capital Structure and Financing - The company has issued 36.50 billion RMB of convertible bonds, with a total of 3,650 million bonds issued[128]. - The total amount converted from convertible bonds during the reporting period was 3.45 billion RMB, with 321,885,110 shares converted[132]. - The cumulative number of shares converted from convertible bonds accounted for 11.74% of the total shares issued before conversion[132]. - The company has engaged in various poverty alleviation initiatives, with a total investment of 62.72 million RMB in industrial development poverty alleviation projects[125]. - The company plans to continue its poverty alleviation efforts by promoting rural employment and enhancing the sales of local specialty products through e-commerce[127]. Accounting and Reporting - The company reported a consolidated financial statement based on the continuous operation principle, adhering to the accounting standards set by the Ministry of Finance[184]. - There are no significant doubts regarding the company's ability to continue as a going concern for the next 12 months from the reporting date[185]. - The company's accounting period runs from January 1 to December 31 each year[186]. - The company's accounting currency is Renminbi (RMB)[187]. - The company includes all subsidiaries under its control in the consolidated financial statements[188]. - The financial statements reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows accurately and completely[186].

Financial Performance - In 2019, YTO Express achieved a consolidated net profit of RMB 1,680,785,199.36, while the parent company reported a net profit of RMB 451,656,918.52[6]. - The company's operating revenue for 2019 was CNY 3,115,112.10 million, an increase of 13.42% compared to CNY 2,746,514.45 million in 2018[25]. - The net profit attributable to shareholders for 2019 was CNY 166,770.28 million, a decrease of 12.41% from CNY 190,398.29 million in 2018[25]. - The net cash flow from operating activities increased by 62.62% to CNY 379,878.42 million in 2019 from CNY 233,600.85 million in 2018[28]. - The total assets at the end of 2019 were CNY 2,216,097.25 million, reflecting a 10.98% increase from CNY 1,996,853.50 million at the end of 2018[28]. - The basic earnings per share for 2019 was CNY 0.5897, down 12.59% from CNY 0.6746 in 2018[29]. - The weighted average return on equity decreased by 5.15 percentage points to 13.74% in 2019 from 18.89% in 2018[29]. - The company recognized goodwill impairment losses of CNY 34,201.49 million in 2019, impacting the net profit attributable to shareholders[28]. - The company's operating revenue for 2019 was 31.151 billion yuan, representing a growth of 13.42% compared to 2018, while the net profit attributable to shareholders was 1.668 billion yuan[79]. - Excluding the impact of goodwill impairment, the net profit attributable to shareholders for 2019 was 2.010 billion yuan, an increase of 5.55% from 2018[79]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 1.5 per 10 shares to all shareholders for the 2019 fiscal year, totaling RMB 627,314,647.51 available for distribution[6]. - As of December 31, 2019, the parent company's undistributed profits amounted to RMB 644,904,035.65 after accounting for cash dividends and surplus reserves[6]. Operational Efficiency and Development - YTO Express is focused on enhancing its operational capabilities through the establishment of shared operation centers to support franchisees and end-point networks[15]. - The company is committed to maintaining transparency and accuracy in its financial reporting, as stated by its management team[5]. - The company has established a comprehensive training system for franchisees, focusing on operational standards and business processes[56]. - The company utilizes an information platform to monitor franchisee performance in real-time, ensuring service quality and operational efficiency[59]. - The company is enhancing its terminal service capabilities by integrating various delivery methods, including smart lockers and third-party stations, to improve last-mile delivery[53]. - The company has implemented a series of management standards for franchisees, including monitoring delivery timeliness and network operation anomalies[55]. - The company is continuously optimizing its routing design to reduce transfer costs and improve delivery efficiency[49]. - The company has established a comprehensive express service network with self-operated hub transfer centers and a flat franchise network, enhancing overall control and flexibility[70]. - The company has invested heavily in automation upgrades for hub transfer centers, increasing package processing capacity and expanding service coverage[70]. - The company has developed an advanced information technology platform, including a proprietary express service operation system, enhancing operational efficiency and service quality[74]. Market and Industry Trends - In 2019, the express delivery industry in China completed a total business volume of 63.52 billion pieces, representing a year-on-year growth of 25.3%[63]. - The total business revenue of the express delivery industry reached 749.78 billion yuan in 2019, with a year-on-year increase of 24.2%[63]. - The CR8 index for the express delivery industry increased to 82.5 in 2019, up by 1.3 percentage points from 2018, indicating a steady rise in brand concentration[64]. - The express delivery industry added over 200,000 jobs in 2019, supporting online retail sales exceeding 8 trillion yuan[63]. - The industry achieved a service satisfaction rate of 98.5% in 2019, reflecting improvements in service quality and customer experience[65]. - By the end of 2019, the usage rate of electronic waybills in the industry reached 98%, with 52% of e-commerce parcels no longer requiring secondary packaging[67]. - The industry saw a 75% usage rate of recyclable transit bags and a 75% adoption rate of "slim tape" packaging[67]. - Major express service companies have increased their investment in technology, applying big data, cloud computing, and automation to enhance operational efficiency[66]. - The express delivery sector has made significant strides in green development, with 31,000 new energy and clean energy vehicles added in 2019[67]. - The industry is focusing on improving service quality and operational efficiency through digital transformation and innovative service models[66]. Customer Service and Satisfaction - The average effective complaint rate for 2019 was 0.19 per million, a decrease of 92.89% from 2018[80]. - The company implemented a service quality strategy, establishing a robust organizational support system and enhancing performance evaluation metrics[82]. - Advanced information tools were developed to facilitate scientific management of service quality, improving operational efficiency and customer satisfaction[84]. - The company achieved a nearly 10% reduction in overall delivery time through refined management and optimization of logistics processes[87]. - The national customer service hotline has achieved near-complete coverage with intelligent voice robots, significantly increasing call response rates[88]. - The company has established a diversified terminal service system, enhancing delivery frequency and improving delivery efficiency[87]. - The comprehensive evaluation index, known as the "Cai Niao Index," has shown continuous improvement, reflecting enhanced customer experience[86]. - The company established 54 shared customer service centers across 21 provinces, significantly improving customer complaint handling efficiency and stability by the end of 2019[89]. - The company achieved a 13.43% year-on-year reduction in single ticket transportation costs, bringing the cost down to 0.69 yuan by the end of 2019[95]. - The company improved its per capita efficiency by over 15%, with single ticket center operating costs decreasing by 17.12% to 0.36 yuan[96]. Strategic Initiatives and Future Plans - The company plans to enhance its comprehensive service capabilities through diversification, cooperation, alliances, acquisitions, and cross-shareholding strategies[152]. - The company aims to become a global leading integrated express logistics operator and supply chain integrator, focusing on high-quality and healthy development with an emphasis on green safety[162]. - The company plans to enhance service quality and customer experience by implementing a comprehensive management system and improving operational efficiency across the entire logistics chain[165]. - The company is adopting a "Express +" strategy to diversify its service offerings, including heavy cargo, cold chain, and urban distribution, to meet personalized customer needs[166]. - The company is deepening its international development strategy, leveraging its competitive advantages to expand its global network and enhance cross-border logistics services[169]. - The company will implement measures to upgrade service quality, including improving delivery efficiency and customer service responsiveness, to foster market expansion[172]. - The company aims to establish a comprehensive monitoring system for delivery efficiency across its network to reduce delays and enhance service quality[172]. - The company will promote a one-stop mobile office system for franchisees to improve customer service efficiency and response times[172]. - The company will incorporate various quality indices into performance assessments to ensure accountability and continuous improvement in service delivery[172]. - The company plans to increase the proportion of self-owned transportation vehicles to improve bargaining power and control over trunk transportation[173]. Risks and Challenges - The company faces risks from a slowing macroeconomic environment, which could negatively impact the express delivery industry and its performance[185]. - The company is at risk of declining market share if it fails to differentiate its services amid increasing industry competition[186]. - The company must adapt to changing customer demands for higher service quality to avoid customer attrition[187]. - Fluctuations in fuel prices pose a risk to the company's transportation cost control and overall profitability[188]. - The company’s revenue is heavily reliant on e-commerce users, making it vulnerable to slowdowns in that sector[190]. - The company is experiencing pressure on its gross margin due to rising labor costs and potential declines in express delivery prices[191]. - The company has established a safety management system to ensure operational safety and compliance with regulations[195]. - Future negative impacts on the brand due to poor management could adversely affect the company's business development[198].

Important Notice [Board, Supervisory Board, and Senior Management Statement](index=3&type=section&id=1.1%20Board%2C%20Supervisory%20Board%2C%20and%20Senior%20Management%20Statement) The company's Board of Directors, Supervisory Board, and all senior management affirm the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities - The company's Board of Directors, Supervisory Board, and all senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) [Board Attendance at Meetings](index=3&type=section&id=1.2%20Board%20Attendance%20at%20Meetings) All company directors attended the Board of Directors meeting to review this quarterly report - All company directors attended the Board of Directors meeting to review the quarterly report[4](index=4&type=chunk) [Financial Statement Responsibility Statement](index=3&type=section&id=1.3%20Financial%20Statement%20Responsibility%20Statement) Company head Yu Huijiao, chief accountant Lin Kai, and head of accounting Zhao Wenhui declare the financial statements are true, accurate, and complete - Company head Yu Huijiao, chief accountant Lin Kai, and head of accounting Zhao Wenhui guarantee the truthfulness, accuracy, and completeness of the financial statements[4](index=4&type=chunk) [Audit Status](index=3&type=section&id=1.4%20Audit%20Status) This quarterly report is unaudited - This company's first quarterly report is unaudited[4](index=4&type=chunk) Company Overview [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of the end of Q1 2020, total assets slightly decreased, while net assets attributable to listed company shareholders significantly increased; operating revenue and net profit attributable to listed company shareholders both declined year-on-year, and net cash flow from operating activities turned negative, primarily due to the pandemic | Indicator | End of Current Period/Year-to-Date (Million CNY) | End of Prior Year/Prior Year-to-Date (Million CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet** | | | | | Total Assets | 21,902.70 | 22,160.97 | -1.17 | | Net Assets Attributable to Shareholders of Listed Company | 16,133.89 | 12,893.66 | 25.13 | | **Income Statement** | | | | | Operating Revenue | 5,534.24 | 6,444.45 | -14.12 | | Net Profit Attributable to Shareholders of Listed Company | 271.07 | 365.02 | -25.74 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 234.27 | 356.79 | -34.34 | | Weighted Average Return on Net Assets (%) | 2.08 | 3.12 | Decrease by 1.04 percentage points | | Basic Earnings Per Share (CNY/share) | 0.0950 | 0.1294 | -26.58 | | Diluted Earnings Per Share (CNY/share) | 0.0916 | 0.1242 | -26.25 | | **Cash Flow Statement** | | | | | Net Cash Flow from Operating Activities | -722.73 | 229.61 | -414.77 | | Non-Recurring Gains/Losses Items | Amount for Current Period (Million CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -4.52 | | Government Subsidies Included in Current Period P&L | 29.39 | | Gains/Losses from Fair Value Changes and Investment Income | 19.49 | | Reversal of Impairment Provisions for Receivables and Contract Assets | 0.11 | | Other Non-Operating Income and Expenses | -4.33 | | Impact on Minority Interests (After Tax) | 0.05 | | Income Tax Impact | -3.38 | | **Total** | **36.81** | [Shareholder Ownership](index=4&type=section&id=2.2%20Shareholder%20Ownership) As of the end of the reporting period, the company had 67,007 shareholders; among the top ten, Shanghai YTO Jiaolong Investment Development (Group) Co., Ltd. held the largest stake at 45.63%, with some shares pledged, and Hangzhou Ali Venture Capital Co., Ltd. was the second-largest shareholder with 9.89% - As of the end of the reporting period, the company had **67,007 shareholders**[9](index=9&type=chunk) | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Pledged or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | | Shanghai YTO Jiaolong Investment Development (Group) Co., Ltd. | 1,443,961,053 | 45.63 | 260,120,000 | | Hangzhou Ali Venture Capital Co., Ltd. | 312,996,335 | 9.89 | 0 | | Yu Huijiao | 133,450,083 | 4.22 | 0 | | Dayang Group Co., Ltd. | 132,400,000 | 4.18 | 51,000,000 | | Shanghai Yunfeng Xinchuang Equity Investment Center (Limited Partnership) | 123,499,991 | 3.90 | 94,000,000 | | Zhang Xiaojuan | 98,127,852 | 3.10 | 61,330,000 | | Shanghai Yuanxiang Investment Management Partnership (Limited Partnership) | 45,336,787 | 1.43 | 0 | | Shanghai Yuanxin Investment Management Partnership (Limited Partnership) | 45,336,787 | 1.43 | 0 | | Shanghai Yuanyue Investment Management Partnership (Limited Partnership) | 45,336,787 | 1.43 | 0 | | Shanghai Yuanke Investment Management Partnership (Limited Partnership) | 45,336,787 | 1.43 | 0 | - The company's largest shareholder, Jiaolong Group, has a concerted action relationship with Yu Huijiao and Zhang Xiaojuan[11](index=11&type=chunk) [Preferred Shareholder Status](index=5&type=section&id=2.3%20Preferred%20Shareholder%20Status) As of the end of the reporting period, the company had no preferred shareholders - The company has no preferred shareholders[11](index=11&type=chunk) Significant Matters [Major Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Major%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) This period saw significant changes across financial statements: the balance sheet reflected decreased financial assets and payables but increased borrowings and equity from redemptions and conversions; the income statement showed higher taxes, selling expenses, and other income, offset by lower financial and investment income; cash flow from operations turned negative due to the pandemic, while investing and financing cash flows significantly increased from reduced investments and new borrowings Significant Changes in Balance Sheet Items | Item Name | Current Period End (Million CNY) | Prior Period End (Million CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,759.81 | 2,684.40 | -34.44 | Redemption of matured wealth management products | | Contract Assets | 25.30 | 0.00 | 100.00 | Implementation of new revenue recognition standards | | Development Expenditures | 13.03 | 2.57 | 407.87 | Increased R&D investment | | Short-Term Borrowings | 1,069.86 | 54.36 | 1,868.18 | New working capital borrowings | | Accounts Payable | 2,109.43 | 3,492.00 | -39.59 | Decrease in freight and project payables | | Advances from Customers | 603.19 | 1,180.91 | -48.92 | Implementation of new revenue recognition standards | | Contract Liabilities | 580.53 | 0.00 | 100.00 | Implementation of new revenue recognition standards | | Taxes Payable | 80.53 | 210.59 | -61.76 | Decrease in corporate income tax payable | | Bonds Payable | 0.00 | 3,017.15 | -100.00 | Conversion and redemption of convertible bonds | | Paid-in Capital (or Share Capital) | 715.89 | 394.37 | 81.53 | Convertible bond conversion | | Other Equity Instruments | 0.00 | 630.83 | -100.00 | Convertible bond conversion and redemption | | Capital Reserve | 9,384.32 | 6,116.44 | 53.43 | Convertible bond conversion | | Other Comprehensive Income | 26.35 | 18.50 | 42.43 | Impact of exchange rate fluctuations | Significant Changes in Income Statement Items | Item Name | Current Period (Million CNY) | Prior Year Same Period (Million CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Taxes and Surcharges | 23.78 | 12.63 | 88.26 | Increase in property tax and land use tax | | Selling Expenses | 26.50 | 14.64 | 81.04 | Increased selling expenses for market expansion | | Financial Expenses | 1.53 | 22.95 | -93.32 | Decrease in interest expense due to convertible bond conversion and redemption, and changes in exchange gains/losses | | Other Income | 35.70 | 11.35 | 214.58 | Increase in airline subsidies and financial support funds | | Investment Income | 2.16 | 17.46 | -87.63 | Decrease in wealth management product income | | Gains from Fair Value Changes | 16.07 | 0.03 | 49,957.32 | Fair value changes of wealth management products | | Non-Operating Income | 2.10 | 13.83 | -84.81 | Decrease in tax refunds | | Income Tax Expense | 52.85 | 112.69 | -53.11 | Decrease in total profit | Significant Changes in Cash Flow Statement Items | Item Name | Current Period (Million CNY) | Prior Year Same Period (Million CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -722.73 | 229.61 | -414.77 | Decrease in operating cash flow due to COVID-19 pandemic | | Net Cash Flow from Investing Activities | 348.01 | -594.66 | 158.52 | Decrease in purchases of wealth management products | | Net Cash Flow from Financing Activities | 923.40 | -114.59 | 905.83 | New working capital borrowings | [Progress of Significant Matters](index=7&type=section&id=3.2%20Progress%20of%20Significant%20Matters) There were no significant matters requiring disclosure of their progress during the reporting period - There is no analysis or explanation of the progress, impact, or solutions for significant matters during the reporting period[14](index=14&type=chunk) [Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20Overdue%20Unfulfilled%20Commitments) There were no overdue unfulfilled commitments during the reporting period - There were no overdue unfulfilled commitments during the reporting period[14](index=14&type=chunk) [Warning of Significant Changes in Cumulative Net Profit](index=7&type=section&id=3.4%20Warning%20of%20Significant%20Changes%20in%20Cumulative%20Net%20Profit) The company has not issued a warning regarding potential cumulative net profit loss or significant changes from the beginning of the year to the end of the next reporting period - The company has not predicted that cumulative net profit from the beginning of the year to the end of the next reporting period may be a loss or undergo significant changes compared to the same period last year[14](index=14&type=chunk) Appendix [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited financial statements for Q1 2020, including consolidated and parent company balance sheets, income statements, and cash flow statements, detailing financial position, operating results, and cash flow during the reporting period [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, the company's consolidated total assets were **21.903 billion CNY**, a slight decrease from the end of the previous year; total liabilities were **5.438 billion CNY**, a significant decrease; and total owners' equity was **16.465 billion CNY**, a notable increase - As of March 31, 2020, consolidated total assets amounted to **21.90 billion CNY**[19](index=19&type=chunk) - As of March 31, 2020, consolidated total liabilities amounted to **5.44 billion CNY**[20](index=20&type=chunk) - As of March 31, 2020, consolidated total owners' equity amounted to **16.46 billion CNY**[20](index=20&type=chunk) [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2020, the parent company's total assets were **24.864 billion CNY**, a slight decrease from the end of the previous year; total liabilities were **56.35 million CNY**, a significant decrease; and total owners' equity was **24.808 billion CNY**, a notable increase - As of March 31, 2020, parent company total assets amounted to **24.86 billion CNY**[21](index=21&type=chunk) - As of March 31, 2020, parent company total liabilities amounted to **56.35 million CNY**[23](index=23&type=chunk) - As of March 31, 2020, parent company total owners' equity amounted to **24.81 billion CNY**[23](index=23&type=chunk) [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, the company achieved total operating revenue of **5.534 billion CNY**, a year-on-year decrease of **14.12%**; net profit attributable to parent company shareholders was **271 million CNY**, a year-on-year decrease of **25.74%**, primarily due to increased operating costs, taxes and surcharges, selling expenses, and decreased investment income | Indicator | Q1 2020 (Million CNY) | Q1 2019 (Million CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,534.24 | 6,444.45 | -14.12 | | Operating Profit | 326.12 | 471.50 | -30.83 | | Total Profit | 323.18 | 478.41 | -32.44 | | Net Profit | 270.33 | 365.72 | -26.08 | | Net Profit Attributable to Parent Company Shareholders | 271.07 | 365.02 | -25.74 | | Basic Earnings Per Share (CNY/share) | 0.0950 | 0.1294 | -26.58 | | Diluted Earnings Per Share (CNY/share) | 0.0916 | 0.1242 | -26.25 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2020, parent company operating revenue was **5.05 million CNY**, a significant year-on-year decrease; net profit was a loss of **11.77 million CNY**, with the loss narrowing year-on-year, primarily influenced by financial expenses, administrative expenses, and investment income | Indicator | Q1 2020 (Million CNY) | Q1 2019 (Million CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5.05 | 11.51 | -56.13 | | Operating Profit | -17.31 | -24.90 | 30.49 (Loss narrowed) | | Total Profit | -16.97 | -24.90 | 31.83 (Loss narrowed) | | Net Profit | -11.77 | -18.68 | 36.99 (Loss narrowed) | [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2020, net cash flow from operating activities was **-723 million CNY**, turning negative year-on-year, primarily due to the pandemic; net cash flow from investing activities was **348 million CNY**, a significant year-on-year increase due to reduced purchases of wealth management products; net cash flow from financing activities was **923 million CNY**, a substantial year-on-year increase due to new working capital borrowings | Item | Q1 2020 (Million CNY) | Q1 2019 (Million CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -722.73 | 229.60 | -414.77 | | Net Cash Flow from Investing Activities | 348.01 | -594.66 | 158.52 | | Net Cash Flow from Financing Activities | 923.40 | -114.59 | 905.83 | | Net Increase in Cash and Cash Equivalents | 557.05 | -487.01 | 214.40 | [Parent Company Cash Flow Statement](index=20&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, parent company net cash flow from operating activities was **-2.166 billion CNY**, turning negative year-on-year, primarily due to a significant increase in other cash payments related to operating activities; net cash flow from investing activities was **446 million CNY**, a substantial year-on-year increase due to increased cash received from investment recovery; net cash flow from financing activities was **-86.83 million CNY**, with the decrease widening year-on-year | Item | Q1 2020 (Million CNY) | Q1 2019 (Million CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,165.62 | 2,579.00 | -183.97 | | Net Cash Flow from Investing Activities | 445.90 | -1,529.78 | 129.15 | | Net Cash Flow from Financing Activities | -86.83 | -1.58 | -5494.70 | | Net Increase in Cash and Cash Equivalents | -1,806.55 | 1,047.65 | -272.47 | [Adjustments for First-Time Adoption of New Revenue Standards](index=22&type=section&id=4.2%20Adjustments%20for%20First-Time%20Adoption%20of%20New%20Revenue%20Standards) This section discloses the company's adjustments to relevant opening financial statement items upon first-time adoption of the new revenue recognition standard in 2020, primarily impacting the consolidated balance sheet by reclassifying 'Advances from Customers' to 'Contract Liabilities' and a portion of 'Accounts Receivable' to 'Contract Assets' [Consolidated Balance Sheet Adjustments](index=22&type=section&id=Consolidated%20Balance%20Sheet%20Adjustments) In the consolidated balance sheet, due to the implementation of new revenue standards, **40.19 million CNY** of 'Accounts Receivable' was adjusted to 'Contract Assets', and **527.59 million CNY** of 'Advances from Customers' was adjusted to 'Contract Liabilities' | Item | December 31, 2019 (Million CNY) | January 1, 2020 (Million CNY) | Adjustment Amount (Million CNY) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 1,195.79 | 1,155.60 | -40.19 | | Contract Assets | 0.00 | 40.19 | 40.19 | | Advances from Customers | 1,180.91 | 653.33 | -527.58 | | Contract Liabilities | 0.00 | 527.58 | 527.58 | [Parent Company Balance Sheet Adjustments](index=24&type=section&id=Parent%20Company%20Balance%20Sheet%20Adjustments) The parent company balance sheet was not adjusted due to the first-time adoption of new revenue standards - The parent company balance sheet was not adjusted due to the first-time adoption of new revenue standards[38](index=38&type=chunk)[40](index=40&type=chunk) [Explanation of Retrospective Adjustment of Prior Period Comparative Data](index=26&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustment%20of%20Prior%20Period%20Comparative%20Data) The company has not provided an explanation for the retrospective adjustment of prior period comparative data due to the first-time adoption of new revenue and lease standards from 2020 - The company has not retrospectively adjusted prior period comparative data[41](index=41&type=chunk) [Audit Report](index=26&type=section&id=4.4%20Audit%20Report) This quarterly report does not include an audit report - This quarterly report does not include an audit report[41](index=41&type=chunk)

Financial Performance - Operating revenue for the first nine months was CNY 2,161,615.36 million, representing a year-on-year growth of 16.07%[5] - Net profit attributable to shareholders for the first nine months was CNY 137,646.86 million, up 9.75% from the same period last year[5] - Basic earnings per share for the reporting period was CNY 0.4878, reflecting a growth of 9.82% compared to the previous year[5] - The company recorded a government subsidy of CNY 62,309,261.32 for the first nine months, contributing positively to the financial results[6] - Other income surged by 295.55% to 6,576.02 million, mainly from increased route subsidies received during the period[14] - The company reported a total comprehensive income of CNY 1,355,210.45 for Q3 2019, compared to a loss of CNY 14,944,730.39 in Q3 2018[31] Cash Flow - The net cash flow from operating activities for the first nine months was CNY 198,075.49 million, an increase of 38.08% year-on-year[5] - Cash flow from operating activities for the first nine months of 2019 was CNY 1,980,754,852.45, up from CNY 1,434,536,509.17 in the same period of 2018, reflecting an increase of 38.1%[32] - The company’s cash flow from operating activities showed a strong recovery, with a net cash flow of approximately ¥4.60 billion compared to only ¥284 million in the previous year, highlighting improved operational efficiency[34] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 2,086,845.47 million, an increase of 4.51% compared to the end of the previous year[5] - Total liabilities amounted to ¥7,936,328,455.45, down from ¥8,174,615,445.96, showing a decline of around 2.9%[21] - Current liabilities decreased to ¥4,597,040,195.95 from ¥4,814,950,570.72, reflecting a reduction of approximately 4.5%[20] - The company’s short-term borrowings increased by 64.35% to 27,222.77 million, indicating a temporary rise in liquidity needs[12] Investments and R&D - Research and development expenses increased by 66.95% to 5,574.55 million, reflecting the company's commitment to boosting R&D investment[14] - The company reported a significant increase in construction in progress, rising by 61.82% to 94,916.44 million from 58,655.49 million, attributed to enhanced logistics center construction[12] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service quality[8] Financial Adjustments - The company has made adjustments to its financial instruments in accordance with new financial instrument standards, impacting the classification of certain assets[40] - The company has implemented new financial instrument standards effective from January 1, 2019, impacting its financial reporting[45] - The company reported no adjustments required for prior period comparative data under the new financial instrument standards[45] Shareholder Information - The total number of shareholders at the end of the reporting period was 47,384, with the largest shareholder holding 50.79% of the shares[10] - Shareholders' equity rose to ¥12,932,126,225.38, compared to ¥11,793,919,535.98, marking an increase of about 9.6%[21] Financial Ratios - The weighted average return on equity decreased by 1.34 percentage points to 11.41%[5] - The company’s total liabilities and equity stood at ¥24,793,793,424.84, reflecting a slight increase from ¥24,748,801,960.61 in the previous quarter[25] - The total liabilities amounted to approximately $8.17 billion, indicating a debt-to-equity ratio of about 0.69[39]

Financial Performance - The company's operating revenue for the first half of 2019 reached RMB 1,395,304.57 million, representing a 15.64% increase compared to RMB 1,206,628.74 million in the same period last year[15]. - The net profit attributable to shareholders of the listed company was RMB 86,264.59 million, up 7.63% from RMB 80,150.64 million year-on-year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 82,939.17 million, reflecting a 7.79% increase from RMB 76,946.40 million in the previous year[15]. - The net cash flow generated from operating activities was RMB 109,668.66 million, a significant increase of 75.84% compared to RMB 62,367.82 million in the same period last year[15]. - The net assets attributable to shareholders of the listed company at the end of the reporting period were RMB 1,201,442.03 million, an increase of 4.48% from RMB 1,149,945.61 million at the end of the previous year[15]. - Total assets at the end of the reporting period amounted to RMB 2,007,381.99 million, showing a slight increase of 0.53% from RMB 1,996,853.50 million at the end of the previous year[15]. - Basic earnings per share for the reporting period (1-6 months) increased by 7.68% to CNY 0.3055 compared to the same period last year[16]. - Diluted earnings per share rose by 2.29% to CNY 0.2902 year-on-year[16]. - The weighted average return on equity decreased by 1.07 percentage points to 7.26% compared to the previous year[16]. Operational Efficiency - The company has a total of 3,856 franchisees and 31,302 end points, with over 47,000 terminal stores nationwide[20]. - The company operates 68 self-owned hub transfer centers and 5 self-owned city distribution centers[20]. - The company has a fleet of 1,572 self-owned trunk transport vehicles and 12 aircraft in its own fleet[20]. - The company has invested in the automation upgrade of its hub transfer centers to enhance package processing capacity[39]. - The company has installed 1,915 robotic arms and 675 loading scanners, and has deployed 60 sets of automated sorting equipment across its network, improving operational efficiency and reducing reliance on manual labor[53]. - The average transportation cost per package decreased by 12.50% year-on-year to 0.74 RMB in the first half of 2019, reflecting effective cost control measures[55]. - The average center operation cost per package was reduced by 11.33% year-on-year to 0.39 RMB, driven by enhanced automation and management practices[56]. Market Expansion - The company is actively expanding its international network and enhancing cross-border logistics capabilities through collaboration with international partners[20]. - The company has expanded its international network, with operations in 17 countries and regions, covering over 150 countries and more than 2,000 international routes[40]. - The company has opened new international routes, including Xi'an to Bangkok and Yantai to Tokyo Narita, to strengthen its competitive position in the logistics market[43]. - The company aims to enhance its comprehensive service capabilities through collaboration with various sectors, including information technology and aviation[61]. Industry Overview - In the first half of 2019, the express delivery industry in China completed a total of 27.76 billion packages, representing a year-on-year growth of 25.7%[37]. - The total revenue of the express delivery industry reached 339.67 billion yuan, with a year-on-year increase of 23.7%[37]. - The CR8 concentration index for the express delivery industry increased to 81.7, up by 0.5 percentage points from the end of 2018[37]. - The effective complaint rate for express delivery services was 0.73 per million, a decrease of 2.35 points compared to the previous year[37]. Research and Development - The company has increased its investment in R&D, focusing on technology integration to enhance service quality and operational efficiency[58]. - Research and development expenses for the first half of 2019 were ¥36,733,702.56, significantly higher than ¥19,650,682.98 in the same period last year, reflecting an increase of 86.93%[156]. Risk Management - The company faces risks from macroeconomic fluctuations, market competition, and changes in customer demand, which could impact future performance[81][82][83]. - The company's main revenue from express delivery is concentrated in the e-commerce sector, posing a risk if the e-commerce industry's growth slows down[86]. - Labor costs are rising due to increased wages and benefits, leading to a decline in gross profit margin, which may be affected by macroeconomic changes and fuel price fluctuations[88]. - The company relies on a high-efficiency information management system for operations; any failure in this system could adversely affect daily operations[90]. - The company has established a safety management system to ensure the security of parcel delivery, which is critical for service quality[92]. Corporate Governance - The company appointed Lixin Certified Public Accountants as the financial audit institution for the year 2019[101]. - There were no significant lawsuits or arbitration matters during the reporting period[102]. - The company maintained a good integrity status, with no unfulfilled court judgments or significant debts due[103]. - The company completed the repurchase and cancellation of certain restricted stocks on January 18, 2019[104]. - The company held the 2018 annual general meeting on May 20, 2019, where it approved the execution of related party transactions for 2018 and estimated transactions for 2019[107]. Financial Position - The total liabilities decreased to CNY 7,767,505,397.20 from CNY 8,174,615,445.96, indicating a reduction of about 4.98%[152]. - The total equity attributable to shareholders increased to CNY 12,014,420,262.18 from CNY 11,499,456,092.99, representing a growth of approximately 4.45%[152]. - The company's cash and cash equivalents stood at ¥1,866,921,703.38 as of June 30, 2019, compared to ¥247,342,349.95 at the end of 2018[153]. - The total assets at the end of the first half of 2019 were approximately ¥12.30 billion, indicating a stable financial position[168]. Social Responsibility - The company actively engaged in targeted poverty alleviation, investing a total of 1,373.03 million RMB in various initiatives during the reporting period[116]. - The company supported 41 impoverished students with a total funding of 2.62 million RMB for educational assistance[116]. - The company plans to continue its poverty alleviation efforts, focusing on healthcare, education, and employment in rural areas[117].

Financial Performance - Operating revenue for the period was CNY 644,445.35 million, representing a year-on-year increase of 20.65%[5] - Net profit attributable to shareholders was CNY 36,501.76 million, an increase of 15.66% compared to the same period last year[5] - Basic earnings per share increased by 15.85% to CNY 0.1294 per share[5] - Total operating revenue for Q1 2019 reached RMB 6,444,453,525.70, a 20.7% increase from RMB 5,341,395,475.06 in Q1 2018[20] - Net profit for Q1 2019 was RMB 365,719,065.32, up 14.3% from RMB 320,012,695.74 in Q1 2018[21] - Operating profit for Q1 2019 was RMB 471,498,481.50, compared to RMB 408,801,899.17 in Q1 2018, reflecting a growth of 15.3%[20] - Total profit for Q1 2019 was RMB 478,410,012.98, compared to RMB 431,070,117.22 in Q1 2018, marking an increase of 11%[20] Cash Flow - Net cash flow from operating activities was CNY 22,960.50 million, a significant improvement of 158.51% compared to the previous year[5] - Cash inflow from operating activities was 7,294,132,367.23 CNY, an increase of 16.93% from 6,240,314,336.73 CNY in Q1 2018[24] - Net cash flow from operating activities was 229,604,971.36 CNY, a significant improvement from -392,407,359.75 CNY in Q1 2018[24] - Cash outflow for investment activities totaled 2,843,262,758.34 CNY, compared to 1,440,960,532.56 CNY in the previous year[25] - Net cash flow from investment activities was -594,655,454.21 CNY, worsening from -477,410,766.15 CNY in Q1 2018[25] - Cash inflow from financing activities was 103,332,357.27 CNY, down from 116,540,721.66 CNY in the same quarter of 2018[25] - Net cash flow from financing activities was -114,590,063.37 CNY, an improvement from -245,877,790.92 CNY in Q1 2018[25] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,971,539.61 million, a decrease of 1.27% compared to the end of the previous year[5] - The total current assets amounted to 8,148.92 million RMB, down from 8,804.11 million RMB in the previous period[14] - The company’s cash and cash equivalents decreased from 4,061.44 million RMB to 3,592.66 million RMB, a decline of 11.53%[14] - Total liabilities decreased to ¥7,554,814,523.05 from ¥8,174,615,445.96 year-over-year[16] - Total current assets amounted to RMB 5,617,368,405.62, with cash and cash equivalents at RMB 247,342,349.95[33] - Total liabilities reached RMB 3,058,940,116.62, with current liabilities at RMB 76,521,578.31[34] Shareholder Information - The total number of shareholders at the end of the reporting period was 47,439[8] - The largest shareholder, Shanghai YTO Dragon Investment Development (Group) Co., Ltd., held 51.05% of the shares[8] - Shareholders' equity increased to ¥12,160,581,563.50 from ¥11,793,919,535.98 year-over-year[16] - Shareholders' equity totaled approximately CNY 11.79 billion, with retained earnings of CNY 4.41 billion[30] Research and Development - Research and development expenses rose to 1,513.64 million RMB, a significant increase of 104.33% compared to the previous year's 740.76 million RMB[13] - Research and development expenses increased to RMB 15,136,409.37 in Q1 2019, up from RMB 7,407,646.51 in Q1 2018, indicating a 103.4% rise[20] Financial Instruments and Standards - The company implemented new financial instrument standards effective January 1, 2019, impacting the classification of financial assets[31] - The adjustment of "financial assets measured at fair value with changes recognized in profit or loss" to "trading financial assets" was made under the new standards[31] - The company’s financial statements reflect compliance with new accounting standards without retrospective adjustments[36] Other Comprehensive Income - Other comprehensive income showed a decline of 60.17%, from -614.59 million RMB to -984.38 million RMB, primarily due to exchange rate fluctuations[12] - Other comprehensive income after tax for Q1 2019 was RMB -9,871,457.71, an improvement from RMB -45,744,547.32 in Q1 2018[21] - The company recognized other comprehensive income, contributing to overall equity growth[35]

Financial Performance - The company achieved a consolidated net profit of CNY 1,931,688,434.19 for the year 2018, with the parent company net profit at CNY 402,440,039.21[4]. - The company's operating revenue for 2018 was CNY 2,746,514.45 million, representing a 37.45% increase compared to CNY 1,998,220.10 million in 2017[25]. - The net profit attributable to shareholders for 2018 was CNY 190,398.29 million, up 31.97% from CNY 144,269.33 million in 2017[25]. - The net cash flow from operating activities reached CNY 233,600.85 million, a 50.09% increase from CNY 155,638.09 million in 2017[26]. - The total assets at the end of 2018 were CNY 1,996,853.50 million, reflecting a 41.19% increase from CNY 1,414,316.40 million at the end of 2017[26]. - The basic earnings per share for 2018 were CNY 0.6746, which is a 31.94% increase from CNY 0.5113 in 2017[27]. - The weighted average return on equity for 2018 was 18.89%, an increase of 2.33 percentage points from 16.56% in 2017[27]. - The company reported a net profit of CNY 64,982.07 million in Q4 2018, which was the highest quarterly profit for the year[30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2018 was CNY 183,821.02 million, a 34.11% increase from CNY 137,067.28 million in 2017[26]. - The company achieved a total business volume of 6.664 billion parcels in 2018, representing a year-on-year growth of 31.61% and capturing 13.14% of the national express service market share, an increase of 0.5 percentage points from 2017[37]. Dividend Distribution - The total distributable profit for the parent company as of December 31, 2018, was CNY 644,904,035.65 after accounting for cash dividends and reserve allocations[4]. - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares to all shareholders for the 2018 fiscal year[4]. - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares for the fiscal year 2018, totaling approximately 424.3 million RMB, which represents 22.28% of the net profit attributable to shareholders[192][193]. - In 2017, the company distributed a cash dividend of 1.1 RMB per 10 shares, amounting to approximately 311.2 million RMB, which was 21.57% of the net profit attributable to shareholders[192][193]. - The company has a history of consistent cash dividend payments, with 2016 and 2017 dividends being 1.5 RMB and 1.1 RMB per 10 shares respectively[193]. Operational Efficiency and Service Quality - The company is focused on enhancing service quality and stability in its delivery network, particularly in urban areas[14]. - The average effective complaint rate for the company in 2018 was 2.70 per million, a decrease of 52.86% from 2017, indicating improved service quality[37]. - The company has developed an information platform for real-time monitoring and management of its extensive franchise network, ensuring service quality and operational standards[49]. - The company is focused on optimizing its network coverage and service quality, with a significant investment in expanding its end-point service capabilities[49]. - The company has established a comprehensive emergency response mechanism to address unexpected situations, ensuring smooth operations and minimizing business fluctuations due to franchise changes[60]. - The company monitors franchisees in real-time through an information platform, implementing a quantifiable assessment system to ensure operational efficiency[59]. - The company enhanced its service quality, with significant improvements in delivery efficiency and customer satisfaction[99]. Strategic Development and Expansion - The company is actively pursuing international market expansion and strategic collaborations with cross-border e-commerce platforms to enhance its global logistics capabilities[37]. - The company has established strategic partnerships with 18 postal or express companies in 17 countries or regions to enhance its international express service network[37]. - The company aims to enhance its comprehensive service capabilities by diversifying its business segments, including heavy cargo transportation, cold chain, pharmaceuticals, international delivery, and instant delivery[66]. - The company is committed to becoming a leading comprehensive express logistics operator and supply chain integrator globally[149]. - The company plans to deepen its international development strategy, leveraging its competitive advantages to enhance global network coverage[152]. Risk Management - The company has outlined various risk factors in its report, emphasizing the importance of investor awareness regarding these risks[6]. - The company faces risks from macroeconomic fluctuations, which could adversely affect the express delivery industry and its performance[173]. - The company is exposed to market competition risks due to a high degree of product and service homogeneity within the industry[174]. - The company relies heavily on e-commerce users for its main revenue, which poses a risk if the e-commerce sector's growth slows down[178]. - The company anticipates potential declines in gross profit margins due to rising labor costs and competitive pricing pressures[179]. Investment and R&D - The company reported a total R&D investment of 5,062.94 million RMB, which accounted for 0.18% of operating revenue, with 538 R&D personnel representing 2.85% of total employees[123]. - The company plans to invest in research and development to enhance its technological capabilities and build a logistics information sharing system[149]. - The company will increase its investment in hub transfer centers and self-operated urban distribution centers to enhance automation and reduce labor costs[156]. - The company is dedicated to fostering a culture of innovation by investing in research and development across various operational areas[153]. Compliance and Governance - The company has committed to performance compensation for the years 2016, 2017, and 2018, with minimum net profit targets of 1.1 billion RMB, 1.33 billion RMB, and 1.55 billion RMB respectively[198]. - The company emphasizes the importance of adhering to the regulations set forth by the China Securities Regulatory Commission and its own articles of association[199]. - The company will not conduct related party transactions unless unavoidable, ensuring compliance with national laws and regulations[199]. - The company has established a lock-up period for shares acquired through private placements, in compliance with the latest regulatory opinions from the China Securities Regulatory Commission[199].

2018 年第三季度报告 公司代码：600233 公司简称：圆通速递 圆通速递股份有限公司 2018 年第三季度报告 2018 年 10 月 1 / 27 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 12 | 2018 年第三季度报告 一、 重要提示 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 | | 本报告期末 | 上年度末 | 本报告期末比上年 度末增减(%) | | --- | --- | --- | --- | | 总资产 | 15,260,396,728.57 | 14,143,164,000.66 | 7.90 | | 归属于上市公司股东 的净资产 | 10,299,053,869.25 | 9,219,163,818.42 | 11.71 | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减 | | | （1-9 月） | （1-9 月） | (%) | | 经营活动产生的现金 流量净额 ...

Financial Performance - The company's operating revenue for the first half of 2018 reached ¥12,066,287,438.76, representing a 46.95% increase compared to ¥8,211,093,407.84 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥801,506,357.57, up 15.69% from ¥692,775,916.15 in the previous year[20]. - The net cash flow from operating activities was ¥623,678,236.34, showing a significant increase of 102.81% compared to ¥307,521,653.37 in the same period last year[20]. - The total assets at the end of the reporting period were ¥14,476,616,900.50, a 2.36% increase from ¥14,143,164,000.66 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company increased by 6.41% to ¥9,810,541,274.00 from ¥9,219,163,818.42 at the end of the previous year[20]. - The basic earnings per share for the first half of 2018 was ¥0.2837, reflecting a 15.51% increase from ¥0.2456 in the same period last year[21]. - The diluted earnings per share also stood at ¥0.2837, marking a 15.51% increase year-on-year[21]. - The weighted average return on equity increased to 8.33%, up from 8.10% in the previous year, indicating a positive trend in profitability[21]. - The company reported a net profit excluding non-recurring gains and losses of ¥769,463,985.56, which is a 20.26% increase from ¥639,820,855.21 in the same period last year[20]. Operational Efficiency - The company has not faced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[5]. - The company reported a total non-recurring gains and losses of RMB 32,042,372.01, with significant contributions from other operating income of RMB 30,777,324.35 and government subsidies of RMB 14,450,957.10[22]. - The company operates a fleet of 12 aircraft, including 5 Boeing 757-200 and 7 Boeing 737-300, to support its logistics network[50]. - The establishment of a self-owned air transport network is expected to improve service timeliness and enhance user experience, thereby increasing brand value[51]. - The company has developed a comprehensive internet information technology platform, including systems for package tracking and resource scheduling, to optimize service quality[49]. - The company has implemented a monitoring and evaluation mechanism for franchisees, ensuring operational stability and addressing performance issues proactively[41]. - The company has invested in the automation upgrade of several hub transfer centers to enhance package processing capacity and expand service coverage[46]. - The company has implemented various measures to optimize operational efficiency and reduce costs for franchisees, leading to significant improvements in transportation costs[68]. Market and Industry Trends - In the first half of 2018, the express delivery industry in China completed a total of 22.08 billion packages, representing a year-on-year growth of 27.5%[43]. - The total revenue of the express delivery industry reached 274.5 billion yuan in the first half of 2018, with a year-on-year increase of 25.8%[43]. - The brand concentration index (CR8) for the express delivery industry was 81.5, indicating a further increase in market share concentration among leading brands[44]. - The effective complaint rate for express delivery services was 3.02 per million, a decrease of 3.59 per million year-on-year, reflecting improvements in service quality[44]. Investment and Growth - The company has established a comprehensive training system for franchisees, ensuring adherence to operational standards and enhancing service quality across its network[38]. - The company is committed to expanding its logistics network and improving service capabilities through strategic partnerships and technological advancements[25]. - The company has expanded its international logistics network, covering over 150 countries and more than 2,000 international routes[47]. - The company’s R&D expenditure increased by 93.97% to CNY 73,465,029.20 in the first half of 2018[77]. - The company reported a significant increase in fixed asset investments, totaling approximately ¥1.55 billion, a 118.95% increase, primarily for the construction of self-owned hubs and procurement of land[97]. Risks and Challenges - The company faces market risks due to macroeconomic fluctuations, which could adversely affect the express delivery industry and its performance[103]. - There is a risk of market competition due to a high number of industry players and product/service homogeneity, potentially leading to a decline in business volume and market share[104]. - The company is exposed to risks from changes in customer demand, necessitating timely adjustments in operational strategies and service offerings[105]. - Fluctuations in fuel prices pose a risk to profit levels, with potential increases in transportation costs impacting the company's cost control[106]. - The company's revenue structure is concentrated in the e-commerce sector, which may affect growth if this sector slows down[108]. - The company is at risk of declining gross margins due to rising labor costs and competitive pricing pressures in the labor-intensive express delivery industry[109]. Corporate Governance and Compliance - The company did not distribute any profits or increase capital reserves in the first half of 2018, with no dividends or stock bonuses declared[120]. - The integrity status of the company and its controlling shareholders remained good, with no unfulfilled court judgments or significant overdue debts[129]. - The company appointed Lixin Certified Public Accountants as the financial and internal control auditor for the year 2018[128]. - The company held a shareholders' meeting on April 16, 2018, to approve the second phase of the restricted stock incentive plan[130]. - The company completed the registration work for the restricted stock incentive plan on May 31, 2018[131]. - The company conducted a self-examination regarding insider trading related to the incentive plan and found no violations[133]. Social Responsibility - The company has actively engaged in targeted poverty alleviation, generating over 3,000,000 in sales revenue for local farmers[145]. - A total of 460 registered impoverished individuals have been helped to escape poverty during the reporting period[148]. - The company plans to establish a dedicated public welfare poverty alleviation fund to assist employees and focus on healthcare and education in impoverished areas[149].

Financial Performance - Operating revenue for the period reached CNY 5.34 billion, a 52.88% increase compared to the same period last year[6]. - Net profit attributable to shareholders was CNY 315.59 million, reflecting a 13.00% increase year-on-year[6]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 298.80 million, up 22.84% from the previous year[6]. - Basic earnings per share increased by 12.83% to CNY 0.1117[6]. - The company's operating revenue for Q1 2018 was CNY 5,341,395,475.06, an increase of 52.88% compared to CNY 3,493,788,789.68 in the same period last year[14]. - The net profit attributable to minority shareholders increased by 35.97% to CNY 195,221,737.03 from CNY 143,572,215.86 in the previous year[14]. - The company's total operating revenue for Q1 2018 reached ¥5,341,395,475.06, a significant increase of 53.0% compared to ¥3,493,788,789.68 in the same period last year[30]. - Net profit for Q1 2018 was ¥320,012,695.74, representing a 14.6% increase from ¥279,285,135.56 in Q1 2017[30]. - The company's operating profit for Q1 2018 was ¥408,801,899.17, up from ¥332,145,497.11 in the previous year, marking a growth of 23.0%[30]. Asset and Liability Management - Total assets decreased by 3.50% to CNY 13.65 billion compared to the end of the previous year[6]. - Total current assets decreased to ¥5,680,040,000.04 from ¥6,912,269,100.46[19]. - Total non-current assets increased to ¥7,968,102,354.68 from ¥7,230,894,900.20[20]. - Total liabilities decreased from ¥4,464,126,817.24 to ¥3,525,832,164.65 in current liabilities[20]. - The company's short-term borrowings decreased by 36.66%, from CNY 656,886,701.59 to CNY 416,065,372.75[12]. - Accounts payable decreased by 32.15%, from CNY 2,053,263,195.38 to CNY 1,393,070,850.43, indicating improved cash flow management[12]. - Total liabilities were reported at ¥47,565,384.99, a decrease of 15.4% from ¥56,210,885.89 at the start of the year[25]. Cash Flow Analysis - Cash flow from operating activities showed a net outflow of CNY 392.41 million, worsening by 81.18% compared to the previous year[6]. - Cash received from operating activities decreased by ¥165,854,230.15, representing a decline of 32.89%[16]. - Cash paid for purchasing goods and services amounted to ¥5,458,806,832.15, reflecting a 69.16% increase[16]. - The net cash flow from operating activities for Q1 2018 was negative CNY 392,407,359.75, worsening from negative CNY 216,582,700.97 in the prior year[36]. - The cash inflow from operating activities was CNY 6,240,314,336.73, up from CNY 4,080,024,284.71 in the previous year, indicating an increase of approximately 53.1%[36]. - The cash outflow from operating activities was CNY 6,632,721,696.48, compared to CNY 4,296,606,985.68 in the previous year, reflecting an increase of about 54.3%[36]. - The ending balance of cash and cash equivalents was 183,712,809.97 RMB, significantly up from 14,075,220.45 RMB year-over-year[40]. Shareholder Information - The total number of shareholders reached 52,229 at the end of the reporting period[9]. - The largest shareholder, Shanghai YTO Express Group, held 51.11% of the shares, with 117.78 million shares pledged[9]. Expense Management - Management expenses rose by 74.20% to CNY 233,145,526.78, primarily due to the impact of the acquisition of YTO Express International[15]. - Financial expenses increased by 337.64%, reaching CNY 7,476,420.97, attributed to an increase in bank loan balances[15]. - The company recorded a decrease in investment income by 72.21%, down to CNY 23,475,655.35 from CNY 84,476,488.97[15]. - Other income increased by 100.00% to CNY 1,512,500.00, reflecting new subsidies received[15].