FlashEx Fourth Quarter and Full Year 2025 Earnings Call - Profitability Up as AI and Drones Support High-Value Order Mix

Operator: Good day, and welcome to BingEx fourth quarter and full year 2025 financial results conference call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Yidan Fu from Piacente Financial Communications. Please go ahead.

Yidan Fu, IR Representative, Piacente Financial Communications: Thank you, operator. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today’s news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with the SEC. The non-GAAP financial measures we provide are for comparison purposes only. The definition of those measures and a reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the BingEx company’s IR website at ir.ishansong.com. Furthermore, throughout the call, we will consistently use the company brand name FlashEx to refer to its publicly listed entity, BingEx Limited.

Joining us today from FlashEx senior management are Mr. Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer. Mr. Hongjian Yu, Co-founder, Director, and Executive President, and Mr. Luke Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer, FlashEx (BingEx Limited): Thank you. Hello, everyone. This is Adam. Thank you for joining FlashEx fourth quarter and full year 2025 earnings conference call. 2025 was another year of growth for on-demand retail and local lifestyle services. In the past, the industry mainly focused on fulfillment speed. Today, users place greater emphasis on delivery safety and the overall service experience. This shift plays directly to FlashEx strength as our on-demand dedicated courier model is uniquely positioned for high quality, personalized fulfillment. Through continued operational refinement, we have further improved our service quality, enabling our platform to maintain robust resilience in highly competitive market environment. As of the end of 2025, FlashEx service network has expanded to 298 cities across China, with 31 million registered riders and 120 million registered users on the platform.

The continued expansion of our service network and user base has provided a solid foundation for further enhancing our service capabilities and user experience. We firmly believe that in on-demand delivery industry, a differential service experience is our core competitive advantage, and it will continue to serve as a key driver of our long-term growth. From a financial perspective, in the fourth quarter, the company reported total revenue of CNY 1 billion with a gross margin of 10.8%. Adjusted net profit increased by 107.1% year-over-year to CNY 41.6 million. For the full year of 2025, total revenue reached CNY 4 billion with a gross margin of 11.8%, and adjusted net profit was nearly CNY 200 million.

As of the end of 2025, the company held CNY 951.6 million in cash and cash equivalents. Overall, supported by continued optimization of our order mix and more refined subsidy strategies, our profitability continued to improve steadily. In the fourth quarter, we continued to execute our strategy centered on refined operations with a focus on optimizing our order mix and service quality. Through more targeted customer acquisition and smarter capacity allocation, we enhanced the service experience for high-value orders while further improving overall fulfillment efficiency. As these initiatives continues to take effect, our order mix has been steadily improving, supporting healthier growth and stronger user engagement. From an order mix perspective, the share of mid to high value delivery orders has been steadily increasing.

As more high quality merchants adopt FlashEx as reliable fulfillment channel, orders with higher requirements for delivery speed and service quality have continued to grow, leveraging FlashEx established service capabilities. In the fourth quarter of 2025, demand for electronics delivery was particularly strong, with order volume increasing by 17% year-over-year. This category typically carries a higher average order value, reinforcing our differentiated positioning in high quality delivery services and supporting the platform’s gross margin. At the same time, we continued to deepen our focus on delivery scenarios where service experience matters most. As one of our core categories, cake delivery returns to growth in the fourth quarter, with order volume increasing by more than 5% year-over-year. For this category, we continued to refine various aspects of delivery process.

For example, we redesigned our dedicated cake delivery boxes to improve stability and shock resilience and resistance, further reducing the risk of product damage during delivery. We believe that by continuously enhancing the user experience through this operational improvement, FlashEx will further strengthen its reputation for high-quality service. In addition, we continued to explore on-demand local service scenarios by increasing our service penetration in high-frequency services such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery. We are making FlashEx available on-demand service entry point in the user’s daily lives. On the merchant partnership front, we have continued to expand into new service scenarios. Recently, FlashEx partners with several industry players, including a consumer electronics rental platform, to launch a same-city instant rental offering through FlashEx courier network. Certain electronics rental orders can now be delivered within the same day.

These partnerships not only enhance the user experience, but also further integrate FlashEx service capabilities into a broader range of customer scenarios. On merchant acquisition, we continue to leverage our rider on-the-ground insights to identify high-potential merchants. In addition, the company is placing greater emphasis on developing high-quality merchants with long-term partnership value, expanding the merchant base while optimizing its overall structure. While continuing to expand our service offerings, we remain focused on improving overall order quality and deepening our partnerships with high-quality merchants. Through a tiered merchant management framework, we provide tailored services and resource support to high-frequency and high-value merchants, including customized fulfillment solutions, priority dispatch mechanisms, and dedicated customer support. These initiatives help our merchant partners achieve a more stable service experience and a higher order fulfillment rate. On the rider side, we strengthened our service standards in the fourth quarter.

Through a more systematic training framework and standardized service procedures, we continued to enhance riders’ professionalism in fulfillment practices, service attitude, and delivery safety. We also upgraded their equipment and strengthened our service image, ensuring that every delivery brings users a more reliable and attentive service experience. In terms of innovation and infrastructure development, we are actively exploring new initiatives. In June 2025, FlashEx launched a pilot program for low-altitude delivery in Hangzhou. In the fourth quarter, we formally established a low-altitude logistics division to advance the development of a city-level drone delivery network, which has now entered the real-world operations. Through the coordination between drone delivery and our rider network, delivery times can be significantly reduced in complex environments, such as cross-river road routes.

The low-altitude initiative has now entered commercial validation stage, with over 2,000 drone delivery orders completed since the pilot inception, laying a solid foundation for broader large-scale deployment. As a low-altitude economy gradually emerged as a key direction in China’s industry planning, FlashEx will continue to explore the applications of drone delivery with urban on-demand logistics systems in 2026, gradually expanding into additional scenarios suited for low-altitude delivery. On the technology front, FlashEx continue to explore new service models. Recently, we launched a quick access service entry on a major mobile operating system, allowing users to access our service directly from their devices without downloading the apps. As more devices join the ecosystem, this lightweight service model is expected to help FlashEx reach a broader user base and integrate on-demand delivery more seamlessly across more devices and platforms, creating new opportunities for user growth.

In 2025, AI became an important tool for improving our operational efficiency. We deployed AI across customer services, operations, and R&D, significantly improving response efficiency and reducing overall operating costs. In R&D, the introduction of AI-assisted coding tools increased development efficiency by roughly 30% compared to 2024. In delivery operations, we utilized AI to analyze the communication between riders and users, enabling early warnings for potential service risks and further enhancing service quality. Looking ahead, we will work with technology partners to explore more intelligent order placement methods for users. For instance, users could simply describe their delivery needs using voice, and the system will automatically interpret the request to complete the order creation and dispatch process.

We believe this type of AI agent-based interaction is poised to become an important trend for future on-demand local services, offering users a more convenient and efficient experience. Looking ahead to 2026, competition in the on-demand delivery industry will remain intense. FlashEx will continue to prioritize refined operations as its key core strategy, enhancing fulfillment standards, service quality, and user experience. At the same time, we will deepen our presence in on-demand delivery and diversified lifestyle service offerings, while advancing innovation across technology, rider operations, and logistics network. We believe that with our solid operational foundation and steadily improving service capabilities, FlashEx is well-positioned to earn the trust of our long-term users and create sustainable value as the industry evolves. That concludes my remarks. Now, I will turn the call over to our CFO, Luke Tang. Thank you.

Luke Tang, Chief Financial Officer, FlashEx (BingEx Limited): Thank you, Adam. Hello, everyone, this is Luke. In 2025, our differentiated on-demand dedicated courier model and unique business positioning remained robust and resilient, demonstrated by our stable operations and profitability. We are delighted to see that our efforts in enhancing operational efficiency and leveraging technology innovation have yielded positive outcomes. Notably, we have achieved non-GAAP net income profitability for the third consecutive year. For the full year 2025, our non-GAAP net margin remained a healthy upward trend, rising to 5% from 4.5% in 2024. Now, let me walk you through our fourth quarter and full year 2025 financial results. Before I begin, please note that all numbers are in renminbi and all percentage changes are on year-over-year basis unless otherwise noted.

Our revenues for the fourth quarter amounted to RMB 1 billion, remained flat compared with the same period of 2024. For the full year 2025, total revenues reached RMB 4 billion compared with RMB 4.5 billion in 2024. The year-over-year decline primarily reflects lower order volumes amid intensified market competition. Our cost of revenues for the quarter was RMB 893.4 million, representing a decrease of 3.5% from the same period of 2024. For the full year 2025, cost of revenues decreased by 11.4% year-over-year to RMB 3.5 billion, primarily aligns with the decline in revenues. Our gross profits was RMB 107.9 million for the fourth quarter, compared with RMB 102.9 million in the same period of 2024.

Gross profit for the full year 2025 was 469.1 million RMB, compared with 490.6 million RMB in 2024. Our gross profit margin increased by 0.8 percentage points year-on-year for both the fourth quarter and full year 2025, rising to 10.8% and 11.8% respectively. Turning to operating expenses. Our total operating expenses for the fourth quarter were 105 million RMB, comprised of 52 million RMB in the selling and marketing expenses, 35 million RMB in general and administrative expenses. Eighteen million RMB in research and development expenses. The decrease in operating expenses was mainly due to the immediate recognition of accumulated share-based compensation expenses recorded in the fourth quarter of 2024, subject to our IPO conditions.

Excluding share-based compensation expenses, our non-GAAP income from operations was CNY 10.5 million, representing a year-over-year increase of 44% compared with the same period of 2024. Non-GAAP income from operations for the full year 2025 totaled CNY 92.7 million. Our non-GAAP net income surged 107% year-over-year to CNY 41.6 million for the fourth quarter. For the full year 2025, non-GAAP net income totaled CNY 199.4 million. Our cash position remained healthy, with cash and cash equivalents, restricted cash and short-term investments totaling CNY 951.6 million as of the last year end. As we move through 2026, we remain committed to reinforcing FlashEx’s unique competitive advantage in high-quality service. Our resilient financial performance in 2025 reflects our continued focus on operational refinement.

As we enter a new phase of technological environment, innovation, and logistics market upgrading, we are confident in our ability to capture emerging opportunities and create long-term value. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Operator: Answer session. If you’d like to ask a question, please press star one one on your telephone and wait for your name to be announced. For the benefit of all participants on today’s call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. One moment for the first question. Our question comes from the line of Sifan Jiang from CICC. Please go ahead.

Sifan Jiang, Analyst, CICC (China International Capital Corporation): Thank you to management team for taking the questions, and congratulations on the strong quarter. I’ve got two questions here today. The first one is, could you please share our fourth quarter order volume and ASP trends broken down by B2B and B2C segments? What is our outlook for order volume trends this year, and what are the key drivers? My second question is, given the rapid development of AI technology at present, how will the management strategize to embrace AI? How will this boost our efficiency? Thank you.

Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer, FlashEx (BingEx Limited): Thank you, Sifan, for your question. I will answer the first question. This is Adam. My colleague, Luke, will answer the second question. For the first question, in the fourth quarter of 2025, we fulfilled 63.2 million orders. For the first year ended December 31, 2025, total fulfillment orders amounted to 249.2 million. As for ASP trends, we expect a relatively steady year-over-year outlook for 2026, both in the merchant and individual user segments, reflecting consistent demand for high-quality on-demand delivery services across both business and customer segments. On the merchant side, we continue to expand our merchant base, broadening our service reach and coverage.

On B2C side, we continued to deepen our focus on experience-oriented delivery scenarios, improving service quality and user experience while expanding into on-demand life-service scenarios, making FlashEx a more seamless part of customers’ daily routines. Looking ahead to 2026, we expect overall order volume to remain relatively stable compared with 2025. Even in a highly competitive industry, our overall strategy remains consistent and will become even more focused and refined. With the integration of new AI technology, we are confident that FlashEx will maintain resilience in the market, achieving steady performance both in order volume and ASP. Thank you. This is Luke. I will take your second question.

Luke Tang, Chief Financial Officer, FlashEx (BingEx Limited): For the second question, I think, FlashEx places a great importance on cutting-edge technologies, including AI and low-altitude logistics, recognizing their strategic value in on-demand delivery and local lifestyle services. We actively leverage these technologies as powerful drivers to enhance operational efficiency. It elevates our service quality and fuels business innovation. In 2025, we deployed AI across multiple areas, including customer service, operations management and dispatching, planning, and R&D, significantly improved response times and execution efficiency. In delivery operations, AI analyzes communications and service behaviors between riders and users, providing early warnings of potential risks and further safeguarding service quality.

Looking ahead, we will continue to explore AI agent-based intelligent interactions where user can simply describe their delivery needs via voice or text, and the system automatically handles order creation, dispatching, and fulfillment. This will greatly simplify the user experience, enhance its processing efficiency, and make delivery services more accurate and effective. At the same time, FlashEx is breaking new ground in the low-altitude logistics space. By integrating AI and the low-altitude logistics, FlashEx can achieve smarter capacity allocation, precise order matching, and highly efficient fulfillment while further enhancing the user experience and the service reliability. In June 2025, we launched a low-altitude pilot in Hangzhou, and in the fourth quarter, we established a dedicated low-altitude logistics division to build a city-level drone delivery network.

By coordinating drone operations with our rider network, we can significantly reduce transport times in complex environments such as cross river routes. As the government increasingly prioritize the low-altitude economy, we will continue in 2026 to explore drone delivery applications in diverse on-demand logistics scenarios, including high-value, time-sensitive, and geographical constrained deliveries. This integrated dual engine of AI innovation and business innovation positions FlashEx to remain resilient in a highly competitive market, and creates sustainable long-term growth opportunities and a differentiated competitive advantage for the company. Thank you. Thank you for your question.

Operator: The questions. There are no further questions on the line, and that concludes the Q&A session. I’ll now turn the call over to Yidan Fu for closing remarks.

Yidan Fu, IR Representative, Piacente Financial Communications: Thank you once again for joining BingEx’s fourth quarter and full year 2025 financial results and business update conference call today. If you have any further questions, please contact the IR team at BingEx or Piacente Financial Communications. Thank you and have a good day.