Q4 2019 Earnings Call
Okay, ladies and gentlemen, this is the conference operator. Please continue to hold and an agent Lee dead dead dead.
Dead dead dead dead dead.
Dead dead dead.
Dead dead dead dead dead.
Thursday
dead dead dead dead. Ladies and gentlemen, this is the conference operator. Please continue to hold and the conference will begin shortly.
Thursday
dead dead dead dead.
Dead dead dead.
Dead dead dead dead.
Good morning, and welcome to the good morning and welcome page will be in a list will be in a listen-only mode. Please do you need assistance pressing the gas station that will be an opportunity to question. You may ask a question. You may press one and your telephone or your question your question, please press conferences this conference. I would now like to hand the conference. I would not like to handle the inference I please go ahead and delete please go ahead.
Thank you operator. Hello, everyone in sorry for keep you waiting the company's results and the investor relations presentation were released earlier today and available. Only companies are wage. That's r l d t o. On call today from c t o r. Mr. Mason lie chairman and chief executive officer and miss sleeping in Chief Financial Officer missile. I will give a brief overview of the company's business operations and highlights followed by Miss e n who will go through the financials in the back line. They will both be available to answer your questions during the Q&A session that follows. I remind you that this call may contain forward-looking statements made under the Safe Harbor provisions of the private Securities litigation Reform Act of 1995. Such statements are based on Management's current expectations and current market and operating conditions.
And relate to events that involve known or unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control which may cause the company's actual results performance or achievements to differ materially from those in the forward-looking statements further information regarding this and other risks and Thursdays and factors is included in the company's filing with the US Securities and Exchange Commission Company does not undertake any obligation to update any forward-looking statement off as a result of new information future events, or otherwise except as required under law. It is now my pleasure to introduce mister Mason lie Mister Li walk you through his prepared remarks in their entirety in Chinese before I translate for him in English.
Hi Joe.
And here, you can come home each Union, Cortana.
Josh leans back against you
associate
DNA with something since you cut something off Ethan 18
Say silver with black lamp at something. She took some kind of tender she called.
That means, so we need you don't see the past month we cook with that. Send you to walk. You don't mind. Thank you shortly. He's saying she's all that.
Sunday at 1 p.m. For women 2018
Set intentions of I mean she she said boo young good to meet you at the same time.
Any money by using this month leasing options?
What would you say? You don't have anything? What do you call a man with these shoes? I want to send Hi, how are you? I hope y'all suck.
awesome country
show me let me change sales volumes on.
Thank you chairman. Please. Allow me to translate first.
VTO solid and steady growth momentum 2019 our puzzle Volvo was 12.1 billion for the year increased 42.2% Mm average industry go straight by about 17 percentage points our password volume market share extended 2.3.4 from last year to reach 19.1% off and we achieved 5.29 billion of 19, which grew 26%
Pleading cash flow increased 43.1% to reach six point three billion throughout the years consistently increase the customer satisfaction a household value in that profits during 2019 GTO Focus the only primary goal of continued market share being through a Casella waste head puzzled volume. We stepped up on developing over infrastructure, including building our Network Partners capability investing in technology and energizing a synergetic eco-system aiming to improve the competitive strength throughout the fall sexual of video platform pickup and delivery. We implemented the rep advised the pickup and delivery fee scheduled to promote self motivation of the career personnel combined with extended versatile a small footprint. We were able to reduce
cost and improve
And see I'm sweating half operation on top of our existing infrastructure advantage and high installed base of small puzzle automations will increase the number of large puzzle processing lines as well as Dynamic weighing machines resulting in further improved productivity.
A long-haul transportation we further increase number of high-capacity vehicles and engines with trailer ratios super virus design innovation in a better resource planning in a consolidation. We aim to maximize the utilization of our transportation capacity on quality and customer satisfaction. The end-to-end Paso process is broken down into smaller segments for measure and manage. So as to achieve improved timeliness providing faster and more convenient experience and that works package. We tested new design elements, including the forwarding to improve efficiency in aggregation and dispatching by our always
I combining planning and the qualifying were direct results would improve connectivity between origination and destination always reduce the Sorting frequency home at the time of the news reduce the cost and resource with the layering of network will prepare us in advance for future volume search hovering over network box do offer financing arm and it's risk management Frameworks. We better utilized our cash reserves to provide relief for operational liquidity as well as a pack needs fiber Network Partners this help the to ensure our partners capability and quality of services are developed to be while in line with our overall growth objectives.
I'm technology advancement data and technology-driven operational systems, including those for faster customer response and The Last Mile checking such as Galaxy 8 C 2 ice stays EB have gradually come online and become increasingly integrated with our vehicles Automation and other equipment as well as operating process Thursday, we have furthered our efforts in digitization and more effective data-enabled. Imagine management.
Ecosystem the LTL business cross-border International operations Aviation financing Warehouse Club at advertising and last month. Supply chain operations are expanding and growing with concerted efforts. We aim to develop capabilities to provide multifaceted. Yes customizable services for our customers at the same time our ecosystem business also provided cross-pollination for a rapport express delivery system.
Lost another list of the business that is woven into people's daily lives. We are taking on increasing social responsibilities and actively engaged initiative cultural Revival in certain less-developed regions alleviating poverty and the protecting the environment.
These stars of the coronavirus prices, we mobilised resources and people waiting the entire network with synchronized efforts from a quarter to local operations purchasing on both prevention and operations at the same time.
We started the normalization process at the end of February and the entire process was already an established possible has seen seen racing quickly walk outside of those will be problems. All operations have things returned to normal and our market share has returned or exceeded the prices level. They said the government has made extra effort to support the logistics business return to normal operations ahead of other Industries this not only helped to fulfill logistic needs some material and a bruised critical for copying with the coronavirus, but also to ensure that the least amount of interruptions in supplying for everyday needs for the Chinese people off.
It is inevitable that the corona bus fare has caused immediate negative impact on our business operations. However, we believe the long-term growth prospects of the Chinese economy has not materially changed domestic consumption needs a few strong hands express delivery industry would continue to benefit from with comedians who High flows in the near-term. We are confident in achieving a volume growth that is at least fifteen percentage points above the industry average and not spending a remark cashier by at least another two percentage points for year 2020 We Believe by relying on our brand and the comprehensive strength increasing resourcing people infrastructure in the financial. We are able to assist the opportunities to be structural transformation your Chinese Express Delivery industry and the bandwidth
Leadership to superiority without let's hear from our vehicle waiting on financial services.
Thank you chairman. Thank you, Sophie. Hello to everyone on a call.
Is that goes through our financial results, please note that unless specifically noted all numbers quoted are in R&B and percentage changes refers to either four Q or your year detailed analysis of our financial performance unique nomics and cash flow are posted on our website and I will only highlight some of the key points here in consideration of time.
parcel volume
Screw 16.9 percentage points over and above the industry average in 2019 and our market share Rose to 19.1% if I may point out to you that the incremental 3.6 billion purses.
For 2019 represented approximately over 28% of the total Chinese Inn Express Delivery industry increase of 12.8 billion from previous 50.7 billion in 2018 to 63.5 billion for a 2019 we continue to lead the industry on absolute number of parcel growth.
Gross profit grew 23.4% and 28.8% for the year is the net result of one strong volume increase to eight station LED price decline and three significant and notable.
operational costs productivity game
on Chairman's notation
We've reported increases of our productivity gain for a 2019 year-over-year comparative find cost for transportation is rotation cost declined 11% or 9.1% reduction year-over-year going for six or more measures will be brought online to leverage the scale and streamline.