BingEx Limited

Good day and welcome to the next 2024 Fourth Quarter and Full Year Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Helen Wu from the Pachante Group. Please go ahead.

Thank you, Operator. During this call, we will discuss our business outlook and make full-looking statements. These statements are based on our predictions and expectations as of today. Actual events or results could differ materially from roles mentioned in today's news release and in this discuss due to a number of risks and uncertainties, including roles mentioned in our most recent findings with the SEC. The non-GAAP financial measures provide for compilation purpose only a definition of these measures and a consolidation table 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 Flash EX company's IR website at ir.ishansung.com. Furthermore, throughout the call, we will consistently use the company's brand name, Flash EX, to refer to its publicly listed entity, Bing EX Ltd. Join us today from FlashEx Senior Management, Mr. Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer, Mr. Hong Jianyu, Co-Founder, Director, and Executive President, and Mr. Luke Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Thank you. Hello, everyone, and welcome to FlashEx fourth quarter and full year 2024 earnings call. In the fourth quarter, Flash EX recorded total revenue of 1 billion RMB. Gross margin rose to 10%, representing a 1.4% year-on-year increase. Non-GAAP net profit for the quarter was 20 million RMB. For the full year, total revenue remained steady at 4.5 billion RMB, fueled by ongoing improvements in operational efficiency the company achieved 2.3% increase in gross margin for the year, while non-GAAP net profit surged by an impressive 82% compared to the previous year. Moreover, the average gross profit per order rose by 21% year-on-year. Underscoring the solid, resilient, and competitive strengths derived from FlashX differentiated market positioning, amid an intensely competitive industry landscape. 2024 stands as a milestone year in Flash EX's journey, highlighted by sustained growth and broad industry recognition. Flash EX also became China's number one on-demand dedicated courier service brand for 10 consecutive years. A prestigious title, that not only validates our decade of exceptional service, but also pays tribute to each of our committed employees, and diligent flash riders who brave all conditions to ensure excellence in every delivery. Since our inception, we have remained focused on the on-demand dedicated career model, understanding that every order bears our users' trust and expectations. From order placement to final delivery, we prioritize precision, ensuring a seamless point-to-point experience that meets real-time needs. Our unwavering attention to detail and pursuit of excellence have made FlashEX a household name and a byword of the intra-city, on-demand dedicated career industry. By the end of 2024, Flash EX service spanned 295 cities across China, supported by a network of 2.8 million registered riders and 100 million users. The total number of orders fulfilled in full in 2024 reached 277 million, making an increase from 2023. Flash EX made its Debut on Nasdaq this year, taking a crucial step forward with its capital market entry, our successful IPO underscores the market's confidence in our strategic positioning and industry leadership, while also establishing a strong foundation for the company's sustained development and growing brand influence. 2024 was also a year of both accomplishment and challenges. The on-demand delivery market grew increasingly competitive, with numerous industry players expanding into this sector. However, we firmly believe that the true service excellence lies in unwavering attention to detail and efficiency. That's why Flash EX remains committed to the on-demand dedicated query model, dedicating every flash rider to a single order from pickup to drop-off, free from distractions. This approach guarantees fast, seamless, and personalized point-to-point deliveries, ensuring that every order is not just received, but also handled with utmost care. To further elevate service quality, FlashX conducts meticulous analysis of the newest details, distinct characteristics, and specific logistical requirements of various product categories. Leveraging these insights, we develop tailored solutions that address the unique challenges of each delivery scenario. For delicate and perishable atoms such as plastic cakes, we have implemented advanced protective measures to ensure their flawless arrival even in the peak heart of summer. For high-value electronics, we have enhanced our insurance framework, providing comprehensive coverage to mitigate risks at every stage of delivery from merchant to customer. Simultaneously, we have strengthened Protections for riders ensuring their rides and well-being are safeguarded throughout the delivery process. Furthermore, we provide tailored services for discerning customers and those with specialized needs, including personalized transportation options, customized rider attire, and exclusive protect-specific packaging solutions. With our professionalism and precision reflected in every detail, Flash EX strives to deliver an exceptional and elevated value experience for our users. In 2024, we launched the customer delivery boxes in select cities designed with adjustable compartments to meet the specific requirements of different product categories. We intend to expand this initiative to additional cities, further elevating both delivery security and service excellence. It is a seemingly subtle yet profoundly impactful detail that creates FlashyX's unparalleled competitive edge in the on-demand delivery market, securing our unique position in an intensely competitive environment. Flash EX is also accelerating its digital management transformation, leveraging cutting-edge digital systems and processes to elevate operational efficiency. This ensures the seamless alignment of premium delivery resources with high-value users, even during peak periods, such as holidays or challenging weather conditions. By delivering constantly punctual and secure services, we cultivate strong word-of-mouth advocacy, further solidifying our brand reputation while our superior user experience continues to drive sustained order volume growth. To further elevate our scheduling systems intelligence and efficiency, we have progressively integrated DeepSeq into our service infrastructure and developed a unique algorithm tailored to our on-demand dedicated query model. This algorithm optimized order allocation, substantially enhanced delivery efficiency. Accordingly, we reduced average delivery time for full year 2024 to 26.8 minutes. On the company's operation level, we have completed the privatized deployment of DeepSeq and developed an operational assistant that serves multiple departments, including product and operations. This assistant has significantly streamlined daily workflows, boosting overall efficiency, looking ahead FlashEX will continue exploring the application of big data models and cutting-edge technologies across diverse verticals and throughout the entire value chain to drive the intelligent advancement of our organizational operations, data analysis, and decision-making capabilities. Meanwhile, we have enhanced and iterated our customer service system nationwide. The upgraded system features automated capabilities to efficiently handle customer complaints related to delivery delays. This advancement has not only reduced operational costs, but also ensures that user inquiries and requests are addressed properly and accurately, significantly elevating overall customer satisfaction. On a related note, we conducted a comprehensive organizational review and optimization in the fourth quarter aimed at driving ongoing cost efficiency improvements through a more strategic organizational structure and clear duty allocation. These efforts not only enhanced FlashX's internal operational effectiveness, but also provided us with a significant competitive advantage further cementing our leadership in on-demand dedicated careers industry. While continuously enhancing the user experience, FlashEF has always viewed our riders' welfare and career development as central to the company's overall growth. Through a comprehensive approach that spans welfare benefits, professional development, operational support, and cultural initiatives. We carefully protect our riders' rights and interests, cultivating a strong sense of belonging and professional pride. By the end of 2024, FlashX has successfully established 11 riders' homes across 10 cities nationwide. These facilities not only provide riders with one-stop services such as rest, recharging, and vehicle maintenance, but also serve as welcoming gathering places for them to share experiences and stories. In addition, we have partnered with dedicated merchants to jointly create over 3,600 rider energy stations in more than 100 cities across the country, offering riders more convenient energy replenishment and rest areas. As part of our commitment to prioritizing our riders' health and well-being, we have implemented a vehicle rescue service to ensure riders receive prompt and effective assistance in the event of an emergency. Furthermore, we conduct regular safety training programs, combining theoretical instruction with hands-on practice to continually transit riders' safety, awareness, and emergency response capabilities. Moreover, they continually refine various systems to foster a more efficient and supportive working environment for riders by leveraging cutting-edge order-matching algorithms, dynamic intelligent dispatch systems, and robust safety protocols. They ensure process order allocation, and seamless scheduling, effectively reducing riders' wait times. This not only enhances their delivery efficiency, but also ensures the stability and sustainability of their income. Since 2022, the Ministry of Human Resources and Social Security, in collaboration with other relevant departments, has initiated a trial of occupational injury insurance for people in new forms of employment across seven provinces and municipalities, including Beijing, Jiangsu, et cetera. Over the past two years, the trial has expanded its coverage to four key industries, ride-hailing, food delivery, on-demand delivery, and intracity logistics. As an active participant, Flash EX has adopted a per-order payment model to provide riders with enhanced protection, ensuring comprehensive coverage for every delivery. At Flash EX, we firmly believe that only by genuinely supporting and nurturing each rider can we truly enhance service quality, as the other cornerstone of our exceptional efficient, and differentiated delivery experience. Moving forward, we will remain committed to our founding principles and on-demand dedicated career model. We will continue to prioritize our core users and core values, gain a deeper understanding of users' diverse needs, and constantly striving to deliver a more personalized, and differentiated service experience. We will also continue to expand our category coverage, offering users an even broader range of convenient options. Meanwhile, we will leverage big data analytic and user research to accurately capture evolving market trends. As we constantly amplify our presence in the individual industry market, We will also strengthen our collaborations with business customers and enhanced service scenarios to deliver premium, efficient, and tailored delivery services to a growing user base. Finally, Flash EX will embrace a more open and innovative approach in 2025, elevating the service experience while cooperating with industry partners to propel the sustainable and healthy growth of the on-demand dedicated career sector. And then I will hand over to CFO Luke to introduce more financial details.