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We are leveraging the vast amount of resources our network provides to expand our ecosystem and explore new opportunities in adjacent markets such as less-than-truckload and cross-border logistics. We are also working to grow our customer base across different industries such as manufacturing and agriculture." "We continue to benefit from the economies of scale created by the rapid growth of our business and enhancement of our operational efficiency," commented Mr. James Guo, Chief Financial Officer. "As a result, our adjusted EBITDA margin grew significantly in the past quarter to 35.4% from 28.3% in the same period last year. Most importantly, our adjusted net income surged to RMB547.4 million from RMB263.3 million in the same period last year reflecting the increasing level of efficiency and the operating leverage we are creating. As of the end of September, we have installed our automated sorting system in five sorting hubs across China to increase operational efficiency. We also expanded the size of our self-owned fleet of trucks and increased the proportion of parcels shipped using our higher capacity and more cost-efficient trucks. These initiatives have effectively reduced our unit sorting and line-haul transportation costs and enabled us to sustain our leading cost advantage in the industry." Third Quarter 2016 Unaudited Financial Results Three Months Ended September 30, Nine Months Ended September30, 2015 989,465 100.0 Revenues were RMB2,353.1 million (US$352.9 million), an increase of 66.6% from RMB1,412.4 million in the same period last year.



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