BingEx Limited

Good day and welcome to BING EX 2026 First Quarter Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Yidan Fu from Procente Financial Communications. Please go ahead.

Thank you, Operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on 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 certainties, including those mentioned in our most recent findings with the SEC. The non-GAAP financial measures we provide are for comparison purpose only. The definition of those measures and the reconsideration 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 DEX company's IR website at ir.ishansome.com. Furthermore, throughout the call, we will consistently be using the company brand name FlashDX to refer to its publicly listed entity, DEX Limited. Joining us today from FlashDX 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 Tang, chief financial officer. I will now turn the call over to Mr. Adam Xu.

Thank you, Eden. Hello, everyone, and welcome to FlashEx first quarter 2026 earnings call. In the first quarter of 2026, the on-demand delivery industry continued to grow steadily, driven by rising user demand for high-quality, time-sensitive delivery services. At the same time, the competitive landscape continued to evolve. Against this backdrop, we made meaningful progress in both operational efficiency and business innovation. Most notably, we made new breakthroughs this quarter in opening up our technology ecosystem and real-world deployment of low altitude logistics creating new avenues for the platform's medium and long-term growth. In the first quarter, Flash EX fulfilled 57.9 million orders, delivering a stable performance amid a dynamic market environment that demonstrated the resilience of our business model. Today, the platform has 3.1 million registered Flash riders. Our average delivery time further improved to 25.7 minutes, reflecting our continued efforts to enhance user experience and service efficiency. Turning to our financial performance, total revenues for the first quarter reached 935.3 million RMB with a gross margin of 11.3%. Non-GAAP income from operations was 21.6 million RMB As of the end of the first quarter, we held cash and cash equivalents, restricted cash and short-term investments, totaling 859.1 million RMB, maintaining a healthy financial position. On the merchant side, we continued to execute our tiered merchant management strategy in the first quarter, further improving service response efficiency and results allocation. Among our core high-francency categories, cake and flour merchants typically have stable recurring business needs and lasting business relationships, making them the most predictable component of our revenue mix. In the first quarter, order volume from the cake category exceeded 15.4 million, achieving year-over-year growth despite a high comparison base. To support this category, we continue to improve our fulfillment capabilities, including upgrading delivery box design, improving shock resistance standards, and strengthening rider handling protocols. All these efforts contributed to higher fulfillment quality and merchant satisfaction. Electronics delivery in the first quarter posted robust growth as well, with order volume up 15.9% year-over-year, maintaining strong momentum and becoming an important driver of order mix improvement. We continued to refine our service response standards for merchants in this key vertical during the quarter, deploying delivery resources ahead of key period to ensure stable order fulfillment rates and delivery quality during peak season. A growing number of well-known companies, automotive services, premium retail, and consumer electronics have incorporated with SlashEX into their standard fulfillment channels, further strengthening our reputation as a trusted provider in the premium on-demand dedicated query segment. In terms of new scenario expansion, we continue to explore new service opportunities in the first quarter. Campus delivery is one example. Most of the campus services, delivery services, currently stop at the campus entrance, falling short of users' last-mail on-demand delivery needs. At the same time, there are large numbers of students on campus who are looking for flexible part-time income. Building on this, Flash EX is exploring a model that combines our user network with on-campus students' resources to complete the full delivery chain from campus entrance to dormitories. On the individual user side, we continue to reinforce our positioning as an instant lifestyle assistant. In the first quarter, daily order volume remained steady across lifestyle services, such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery. As these service categories continue to gain traction, FlashGX's connection with users' daily lives has deepened, gradually transforming the platform. from a single-purpose delivery tool into an on-demand service entry point, covering a broader range of everyday needs. This helps strengthen user engagement and supports improvements in overall platform activity and user retention. On the technology and ecosystem front, in April, they officially open-sourced our core command line interface tool, becoming the first company in the intra-city on-demand delivery industry to do so. Through this tool, Flash EX has further standardized and API-enabled its delivery capabilities. Merchants can integrate our system with their own point of sale or order management system to automatically trigger delivery requests upon customer payment. Developers and enterprise clients can connect directly with FlashX's backend welcome online to place orders, request pricing, and track shipments. Leading AI agents, including Cloud Code, Codex, and Cursor, can also invoke FlashX services directly through this interface. This marks the first time that on-demand delivery capability has formally entered the AI workflow ecosystem at a standardized level. Composable and API accessible model. And this advancement manifests what we have always envisioned, enabling ecosystem partners to access FlashX service at lower cost while empowering our FlashRiders to evolve beyond the traditional career role to become a bridge between AI systems and physical reality. The initial open source release support for core functions, price inquiry, order placement, order tracking, and order cancellation. They will continue to iterate and expand their capabilities, deepening the integration between on-demand delivery and the broader AI ecosystem. We have also completed our Quick App integration with the Huawei Harmony OS ecosystem. allowing users to initiate delivery requests directly through conversational interactions on the devices without opening the Flash app. Additionally, we have fully opened our API interface to support major AI platforms in evoking FlashX order placement capabilities through standardized integrations for their broadening access to our services. In terms of internal operational efficiency, AI tools are evolving from isolated productivity tools into systematic efficiency drivers at the organizational level. In customer service, AI can now independently handle the majority of the routine complaint types, significantly reducing the high count required. The time needed to test and launch new service scenarios has been shortened from approximately two months to one to two weeks. The onboarding process for new partners has also been fully automated through AI agents, bringing integration timelines down from over a week to under a day. In R&D, AI-assisted coding tools have improved overall development efficiency compared to last year, taking together These efficiency gains are delivering ongoing value across multiple operational functions, lowering the marginal cost of business expansion while ensuring service quality. In low-altitude logistics, we made significant progress this quarter. As many of you may have noticed earlier this week, we announced an important development. FlashX's wholly-owned subsidiaries have entered into a strategic investment partnership with Hangzhou Low Altitude Industry Development, making FlashEX one of the first on-demand courier service providers in Hangzhou's low-altitude economy sector to receive strategic institutional backing. This partnership represents not only strong recognition from the capital markets, but also a meaningful endorsement of our real-time fulfillment capabilities and technological innovation. More importantly, it marks a major milestone in FlashX's expansion into autonomous delivery and low-altitude logistics as we accelerate the transition from the technology exploration to real-world deployment and skilled operation. After more than a decade of operating in China's on-demand delivery market, FlashX has built a nationwide fulfillment network spanning nearly 300 cities and established a highly mature real-time delivery infrastructure. Looking ahead, low-altitude logistics represents a key strategic priority for both our technological advancement and long-term business expansion. Leveraging our industry-leading real-time fulfillment capabilities, a core operational strength that continues to set us apart, we are well positioned to meet the standardized and high-efficiency operational requirements of joint delivery services. At the same time, By integrating Hangzhou's local industry ecosystem and strategic resources, we are building a next-generation on-demand logistic model that combines rapid aerial transportation plus ground-based last-mile fulfillment, enabling seamless coordination between low-altitude and ground delivery networks. At present, our drone delivery initiative has moved into substantive commercial operations. In partnership with Hangzhou Low Altitude Industry Ecosystem, we have established five take-off and landing sites and launched 14 delivery routines covering key districts, including Yuhang, Shangcheng, and Gongshu. In the first quarter, drone delivery order volume grew 157.2% percent quarter over quarter. To date, the project has completed approximately 3,500 paid orders and nearly 2,900 drone flights while maintaining a 100% safety record. Through real-world operations, the commercial viability of the business model has now been validated. Under normal operating conditions, Our Air Flash EX service has achieved delivery time approximately 20% to 30% faster than traditional ground-based delivery services. Looking ahead, we will continue to drive innovation through technology and further invest in frontier areas such as intelligent dispatching, route optimization, and autonomous delivery by deeply integrating our major ground fulfillment infrastructure with next-generation low-altitude logistic technologies. We aim to further enhance delivery efficiency, broaden service capabilities, and expand the boundaries of our fulfillment network. On the right-hand side, we continue to refine our training programs and service standards to ensure that every delivery brings users a high-quality experience. In the first quarter, we continued our good-did flash rider recognition program, selecting outstanding riders from the platform who proactively demonstrated social responsibility during the deliveries. These riders received both material rewards and public recognition, reinforcing their sense of professional pride and belonging. We firmly believe that the sustainability and professionalism of our rider team is a cornerstone of our service quality. Looking ahead to the coming quarters, we will remain focused on three strategic priorities. First, continuing to deepen the application of AI across FlashX's internal operations to further improve organizational efficiency. Second, accelerating the expansion and commercialization of low-altitude logistics by exploring more order types and scenarios suited to air-ground coordination, and third, continuing to strengthen high-value merchant services and individual user scenario coverage to drive further improvements in our order mix. As industry competition continues to intensify, The combination of operational efficiency and service quality remains the foundation of FlashX's long-term competitive advantage. We have always believed that a platform with genuine value serves multiple stakeholders, creating real convenience for users, providing Flash readers with stable and rewarding career opportunities, and contributing positively to the healthy development of the industry. This is how we define long-term value, and it remains the driving force behind FlashX's continued progress. That concludes my remarks. Now, I will turn the call over to our CFO, Luke Tang. Thank you.