BingEx Limited

Thank you, operator. During this call, we'll 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 Rose mentioning today's news release and being this discussion due to a number of risks and uncertainties, including Rose mentioning our most recent findings with the SEC. The non-GAAP financial measures will provide a full comparison purpose only. The definition of these measures and our consolidation 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 Flash EX Company's IR website at .icentral.com. Furthermore, throughout the call, we will consistently use the company brand name Flash EX to refer to its publicly listed entity, Bing EX Limited. Joining us today from Flash EX Senior Management are Mr. Adam Xue, founder, chairman of the board and chief executive officer, Mr. Hong Jianyu, co-founder, director and executive president, and Mr. Luke Tan, chief financial officer. We will now turn the call over to Mr. Adam Xue.

Thank you, Helen. Hello, everyone, and welcome to Flash EX first quarter 2025 earnings call. In the first quarter, we continue to depend on strategic focus on core users and core value aiming to deliver higher quality, more efficient, on-demand dedicated career services. While refining service details, we also strive to enhance the overall user experience. Our personalized solutions, smoother interactions and faster delivery speeds have made our service more convenient and enjoyable for users. These efforts have not only earned widespread praise from our customer, but also further strengthened Flash EX competitive edge in on-demand dedicated career delivery. In the first quarter of 2025, we recorded total revenue of 961 million RMB. Gross margin improved both year over year and quarter over quarter to 13.2%. Adjusted net profit was 49.6 million RMB. Amid growing competition in the delivery industry, Flash EX has remained committed to its unique on-demand dedicated career model, focused on providing users with reliable service when it matters most. In the first quarter of 2025, Flash EX completed 58 million orders with the gross margin per order continuing to improve. Meanwhile, our service footprint continues to expand, particularly in lower tier cities where all market penetration has deepened significantly. As of the end of Q1, Flash EX has attracted nearly 2.86 million registered writers and over 100 million registered users, highlighting our brand momentum and industry leadership. In the first quarter of 2025, while strengthening our existing service categories and scenarios, we also further explored our user diverse needs. We passed the Flash EX user base in detail, conducting in-depth research into users across different age groups and profiles. This allowed us to better understand their preferences, accurately identify their needs, and expand into new user cases accordingly. In particularly, the new generation of younger users is showing a strong preference for high quality services and timely delivery. To better connect with them and gain deeper insight into their lifestyles and consumption habits, we actively engage with topics they care about and increase our presence on third-party social platforms. Drawing on this insight, we've developed task specific, personalized, on-demand delivery service that precisely meet their unique -to-day needs, further enhancing the user experiences and overall satisfaction. At the same time, we are actively expanding into new forms of cross-industry collaboration. For example, we have seamlessly embedded the Flash EX brand into engaging content through strategic product placements in a range of popular TV shows. This approach has not only elevated brand awareness and visibility, but also enabled us to reach and resonate with our target audience more effectively, strengthening both brand recognition and emotional connection. To further enhance user loyalty and engagement, we remain focused on refining service details and elevating our product offerings, aiming to boost Flash EX service capabilities across the board. Currently, our average delivery time has improved to just 26 minutes, significantly faster than the industry average, and the scoring our competitive edge in the instant delivery industry. It is also worth noting that even amid challenges such as severe weather, major holidays, or peak demand periods, Flash EX constantly maintains high fulfillment rates and customer satisfaction, leveraging our responsive dispatch system, intelligent route planning, and comprehensive rider training, we ensure fast, reliable, and delivery in any situation. Our ongoing efforts in this regard continue to strengthen Flash EX reputation for premium service, as well as our users' trust and loyalty. In delivery management, we take precise and proactive approach by optimizing route planning, efficiently allocating riders, and tracking orders in real time. We ensure a seamless, efficient operation with constantly high order fulfillment rates. We recognize that delivery efficiency and service quality are what make Flash EX stand out in the competitive market. That is why we continuously invest in technology and in innovative management to enhance our performance. In the first quarter of 2025, our tech team accelerated the private deployment of DeepSeq. We draw progress in our digital transformation through algorithm upgrades and architectural optimization. At the same time, we focused on seamlessly integrating DeepSeq with our existing systems, striving from precise data alignment and fine-tuned algorithm capabilities to ensure close coordination across platforms. These efforts have made interactions smoother and response time faster, significantly enhancing the user experience. On the riders' side, order assignment and dispatch efficiency have also improved notably, further optimizing our services. Our riders are the heart and the soul of Flash EX on-demand delivery ecosystem. Every timely, accurate delivery and every thoughtful response to user needs reflects the Flash EX spirit of positivity and dependability. Their commitment not only views Flash EX brand reputation, but also spreads warmth and good views throughout the community. Since 2019, Flash EX has remained committed to fulfilling its social responsibilities with our fire, transparent and well-structured system for recognizing riders who go above and beyond. We constantly foster positive social values. Each quarter, we carefully select 10 to 20 auto-senior riders from a platform of thousands who have demonstrated self-needs and a strong sense of duty during their deliveries. Some have stepped up to help in moments of crisis, while others constantly devote themselves to charity, spreading warmth through simple yet powerful acts of kindness. Through both material rewards and public recognition, we honor these individuals while seeking to inspire the others, encouraging a culture of compassion, responsibility and integrity across the industry. With this initiative, Flash EX is building a more harmonious society, bringing love and kindness to thousands of households, one delivery at a time. In the first quarter of 2025, we further strengthen support and care for Flash EX riders by enhancing our recognition and rewards program, along with material incentives. We expanded benefits to include career development opportunities and prioritize access to training resources. Through these efforts, we aim to foster a lasting culture of everyday kindness within the Flash EX rider community, encouraging more riders to embrace and share the spirit of goodwill in their daily work. At the same time, we emphasize our riders' development and growth using the power of system and big data to improve training efficiency and accelerate onboarding for new riders. By analyzing their learning progress, skill mastery and the real world challenges they face during deliveries or data-driven approach, helps new riders quickly get up to speed our operational processes, significantly shortening their learning curve and helping them perform with confidence sooner. Looking ahead, Flash EX will remain committed to our on-demand dedicated career model, broadening its application across more scenarios and enhancing our services to bring our users a better, more efficient and more distinctive delivery experience. That concludes my remarks. Now I will hand over to our silver fool, Luke Tang. Thank you.

Thank you, Allen. Hello everyone, this is Luke. I'd like to walk you through our first quarter financials. Despite the fierce market competition, we delivered a resilient operational performance in the first quarter. Highlighted by improvements in our overall profit margin and the gross margin per order. Before we go through the financials, I'd like to remind you that all numbers are in Renin B and all percentage points, percentage changes are on a -over-year basis, unless otherwise noted. Our revenues for the first quarter reached 960.8 million compared to 1107.7 million in the same period of 2024. The -over-year decline was primarily due to a decrease in fulfilled orders amid intensified market competition. Our cost of revenues for the quarter decreased by .7% to 834.1 million. The decrease was in line with a decline in revenues, primarily due to the reduction in fulfilled orders. Our gross profits was 126.7 million for the first quarter. Compared with 130.3 million in the same period last year. Gross profit margin grew by 1.4 percentage points to .2% for the first quarter. Turning to operating expenses or total operating expenses for the first quarter were 116.7 million, consisting of selling and the marketing expenses of 49.3 million. General and administrative expenses of 37.9 million and the research and the development expenses of 29.5 million. Excluding share-based composition expenses or non-GAAP income from operations was 26.6 million for the first quarter. Other income was 9.9 million for the first quarter compared with 19 million for the first quarter of 2024. The -over-year decrease was primarily due to a lower amount of government grants. Our non-GAAP net income for the first quarter was 49.6 million compared with 64.6 million in the same period of 2024. Our cash position remained healthy. With cash and the cash equivalents, restricted cash and the short-term investments, totaling 787.2 million as of the first quarter end. As they move through 2025, we continue to unlock the full potential of our brand and differentiate the business model, expand our service scenarios and further optimize operational efficiency to drive the company's long-term sustainable growth. That concludes our prepared remarks. We would like now to open the floor to your questions. Operator, please go ahead.

Thank

you.

We will now begin the question and answer session. If you would like to ask questions, please press star one one on your telephone and wait for a 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 easily repeat your questions in English. One moment for the first question. The first question comes from the line of Jessie Xu of Deutsche Bank. Please go ahead.

Thanks. Good evening, Xue Zong and Tom Zong. Congrats on a very resilient quarter result in a challenging environment. And thanks for taking my question. My first question is regarding order volume and also competition. We noticed that the order volume in the young year decreased this quarter has narrowed from last quarter. So just wondering how has the competition landscape changed over the past few months? And if we look ahead, are we expecting further improvements from here? And my second question is about margins and UE. It's very encouraging that both of your gross margin and gross profit per order have improved this quarter compared with same quarter last year. But on the other hand, operating margin slightly decreased. So I want to get more color on the reasons behind. Is it related to some measures we have taken to cope with the fierce industry competition? And how should we think about the margin profile as well as UE going forward? Thank you.

Yeah, thank you, Jesse. This is Luke. I will take your two questions. For the first question, FlashX has always remained focused on the on-demand dedicated query model, continuously refine the service details and improving our operating efficiency. Building on this foundation, we are placing even greater emphasis this year on servicing our core customers and reinforcing our core value proposition. While market competition has always been a reality, we believe that the healthy and long-term competition always plays a positive role in elevating service standards across industry. Ultimately delivering a better experience for our users. At the same time, FlashX remains open to learning from industry peers and joining on best practices to strengthen our capabilities and better address the evolving and diverse needs of our users. We firmly believe that our, with our high quality service and differentiated positioning, FlashX will continue to maintain a strong competitive edge in this market. For the second question, as I mentioned earlier, focusing on core customers and the core value is one of our top strategic priorities this year. By holding this focus, we aim to further optimize our business customers structure and unlock more service scenarios for our individual customers, which will allow us to meet and evolving our needs of different user segments with greater precessions. At the same time, we are leveraging big data models and other ones, the AI powered operations to enhance our user experience and the overall operational efficiency. A well continuously strengthening FlashX differentiated positioning and the core competitive advantages in today's market. We expect operational efficiency and the user experience to remain relatively stable in the short term. Looking ahead, we are confident that as FlashX brand value continues to grow and our user base expands, we will achieve sustainable and the long-term growth. Thank you.

Thank you. Thank you for the questions. One moment for the next question. Next question comes from the loyal Sir Huan Xiang from CICC, please go ahead.

Thank you to the management team for taking my questions. I've got your questions here today. The first one is regarding recent complications and education among on-demand retail platform. Have we observed any signals of rising delivery demand driven by customer subsidies from platform? If so, how has it influenced the order volume growth of our QB and QB business? The second question is, could the management team share how rider incentives have changed since the beginning of this year and provide an outlook on future trends? Thank you.

Thank you, Sifan, for your question. This is Adam speaking for our first question. Currently, market competition is largely concentrated in the food delivery sector. Since this inception, FlashX has remained committed to its differentiated on-demand dedicated delivery model, striving to provide users with a unique high quality service experience. From a customer segmentation perspective, our B2B clients are primarily concentrated in high-end dining sector. These customers place a premium on delivery speed, safety and quality assurance. They expect every order to arrive in optimal condition and within the shortest possible time to boost their brand image and ensure customer satisfaction. On the B2C side, service scenarios tend to revolve around items that require high quality standards in terms of security, timeliness and handling, such as important documents, cakes, high-end head value, electronics, like laptops and smartphones. These items are either expensive or carry special significance, which makes users particularly sensitive. To the quality and reliability of the delivery service. From a delivery method perspective, when users choose FlashX, what they value most is the high-end, is the high quality differentiated service experience we offer. Our -to-one dedicated query model ensures that each item receives careful, personalized handling throughout the entire delivery process, providing maximum protection and security. At the same time, it allows for precise control over delivery time, ensuring both reliability and peace of mind. Overall, this is due some differentiation between the business-sick segments FlashX serves and the sector currently facing the most intense market competition. To date, the impact of our operations has been relatively limited. That said, this wave of market competition has had some positive effects. It has significantly heightened both merchants' and users' awareness of delivery efficiency and reliability. Merchants are paying more attention to how delivery affects their business performance while users' expectations for delivery service quality are rising. From a long-term perspective, we believe that this market shift will have a positive and healthy influence on the entire logistics and delivery industry. It will encourage improvement in service standards across the board, leading to a better overall user experience. And for your second question, at FlashX, we've always placed the wellbeing and career development of Rider at the heart of our development strategy. We fully recognize that Rider's our veto link to our service chain, and that their right sense of belonging and professional pride are directly linked to our service quality and long-term growth. That is why we take a comprehensive approach to supporting them, covering areas like welfare and protection, career advancement, operational support, and community engagement. Our goal is to create a warm, respectful environment where Riders truly feel valued as part of the FlashX family and foster a strong sense of belonging and pride in their profession. Since the beginning of this year, we've further increased our investment in supporting and caring for FlashX Riders. We've continued to refine and enhance our recognition and reward system, providing tangible incentives to encourage education and quality service while also introducing a wider range of initiatives, such as expanded careers, development opportunities, and access to training resources. Our goal is for Riders to gain more than just financial rewards at FlashX. We want them to grow professionally, advance their careers, and realize their personal potential. It's worth noting that since 2022, the Ministry of Human Resource and Social Security, along with other relevant departments, has launched a trial program in seven provinces and cities, including Beijing and Jiangsu, to provide occupational injury protection for workers in new forms of employment. Over the past two years, the program has expanded to cover four key sectors. Ride-hailing, food delivery, on-demand delivery, and intercity freight. As an active participant in the pilot, FlashX has strictly followed all requirements, adopting a per-order payment model to ensure that every single delivery includes occupational injury coverage for all riders. This initiative not only provides our riders with greater peace of mind while they work, but also reflects FlashX's strong sense of corporate social responsibility. Thank you.

Thank you for the questions. That concludes the question and answer session. I'd now like to turn the call over to Helen Wu for closing remarks.

Thank you once again for joining Bing EX 2025 First Quarter Financial Results and the Business Update Conference call today. If you have any further questions, please contact the IAM team at FlashX or PSNT Financial Communications. Thank you, and have a nice day.