ZTO operates a highly scalable network partner model, which it believes is best suited to support the rapid growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain. The Company has strong operational efficiency through centralized control and management of sorting hubs, fleets, route planning and optimization, as well as its proprietary waybill tracking system and transportation management system. Operational efficiency and economies of scale enable ZTO to achieve strong operating leverage which drives higher return on invested capital and shareholder?s equity. ZTO pursues a strategy of offering comprehensive logistical services and building the ecosystem of partners and their complementary services. ZTO is using scientific and technical innovation to build its ?Express +? ecosystem, which creates value-added services on top of the foundation of its network. The Company believes this can create a new level of quality and efficiency for the customer, and a new level of growth for itself.
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