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 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 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, Paul, will be available on the FlushX company's IR website at ir.icentral.com. Furthermore, throughout the call, we will consistently use the company's brand name, FlushX, 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. 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 FlashEx's first quarter 2025 earnings call. In the first quarter, we continue to deepen our strategic focus on core users and core value, aiming to deliver higher quality, more efficient, on-demand dedicated courier 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 customers, but also further strengthened FlashX's competitive edge in on-demand dedicated courier 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, SlashEX has remained committed to its unique on-demand dedicated query 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 riders 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 diversities. 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 particular, 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 engaged with topics they care about and increased our presence on third-party social platforms. Joining on this insight, we've developed task-specific, personalized, on-demand delivery services that precisely meet their unique day-to-day needs. further enhances 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, underscoring 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, FlashX constantly maintains high fulfillment rates and customer satisfaction. Leveraging our responsive dispatch system, intelligent route planning, and comprehensive rider training, we ensure fast, reliable deliveries in any situation. Our ongoing efforts in this regard continue to strengthen FlashX's reputation for premium service as well as our users' trust and loyalty. In delivery management, we take a 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 FlashX stand out in the competitive market. That is why they continuously invest in technology and 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 rider side, order assignment and dispatch efficiency have also improved notably, further optimizing our services. Our riders are the heart and the soul of FlashX's on-demand delivery ecosystem. Every time they accurate delivery, and every thoughtful response to user needs reflects the FlashX spirit of productivity and dependability. Their commitment not only builds FlashX's brand reputation, but also spreads warmth and goodwill throughout the community. Since 2019, FlashX has remained committed to fulfilling its social responsibilities with our fair, 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 autism 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 others encouraging a culture of compassion, responsibility, and integrity across the industry. With this initiative, FlashEx 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 Fleshy X 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 Fleshy X 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 systems 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, Our data-driven approach helps new riders quickly get up to speed on 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 CFO, Luke Tang. Thank you.

Thank you, Alan. 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 would like to remind you that all numbers are in Renminbi and all percentage changes are on a year-over-year basis, unless otherwise noted. Our revenues for the first quarter reached $960.8 million, compared to $1,107.7 million in the same period of 2024. The year-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 14.7%, to $834.1 million. The decrease was in line with a decline in revenues, primarily due to the reduction in fulfilled orders. Our gross profit 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 13.2% for the first quarter. Turning to operating expenses, our total operating expenses for the first quarter were $116.7 million consisting of selling and marketing expenses of $49.3 million General and administrative expenses of $37.9 million, and research and development expenses of $29.5 million. Excluding share-based compensation 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 year-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 cash equivalents, restricted cash, and short-term investments totaling $787.2 million as of the first quarter end. As we 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.