BingEx Limited

Good day, and welcome to BMEX 2026 Second Quarter Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Yiden Fu from Piacente Financial Communications. Please go ahead.

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 findings with the SEC. The non-GAAP financial measures we provide are for comparison purpose only. The definition of these measures and the 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 BEX Company's IR website at ir.aishansong.com. Furthermore, throughout the call, we will constantly use the company brand name FlashEX to refer to its publicly listed entity, BEX Limited. Joining us today from FlashEX Senior Management are Mr. Adam Xue, Founder and 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.

Thank you, Eden. Hello, everyone, and welcome to Flash EX second quarter 2026 earnings call. The out-of-mount delivery industry continued to evolve in the second quarter. Users today expect more than speed alone, placing grossing weight on the entire service experience. From the moment they place an order to the moment it arrives, at the same time, AI is advancing quickly and low-altitude airspace is opening up, creating new ways to fulfill orders in our industry. This plays to the on-demand dedicated courier model Flash EX has been building all along, as well as the technology work we have been advancing over the past several quarters. The operating approach we have followed over the past several quarters translated into real results in the second quarter, with skill and delivery efficiency improving together. Total order volume grew 8.9% quarter over quarter, and average delivery time shortened from 25.7 minutes in the first quarter to 25.3 minutes in the second quarter, even as volume rose. is a writer-based and service network that keeps expanding. As of the end of the second quarter, registered slash writers reached 3.23 million and our service coverage extended to 299 cities. Our user base also grows steadily, with registered users up to 4 million from the end of the first quarter to 124 million. Turning to our financial performance, total revenue from the second quarter were 940.3 million RMB with a gross margin of 10.2%. Non-GAAP income from operations was 10.8 million RMB and non-GAAP net income was 11.4 million RMB. Our cash position stood at 853.4 million RMB as of the end of the second quarter, reflecting a healthy overall financial position. Looking at the order mix back category, volume recovery in the second quarter came from a cross force. Fresh flowers, a core category we have cultivated for years, grew 29.2% quarter over quarter in order volume. Food, cakes, and electronics all posted order volume grows both year-over-year and quarter-over-quarter, leaving our overall order mix more balanced. Several major categories moving up Air Trans tell us how well our on-demand dedicated query model fits high-value scenarios, and it also sprites our order composition more widely, reducing our resilience on any one category. On the merchant side, we set out to simultaneously grow our merchant base and improve its quality in the second quarter. Newly signed merchants grew 18% quarter over quarter, and the share of high-value, high-stakenness merchants rose meaningfully as our merchant base expanded. Enterprise clients stood out in particular, with new signing up 53.1% quarter over quarter. moving our merchant structure in a healthier direction. This came partly from optimizing our sales team assessment framework and partly from a dedicated effort to develop key accounts pursuing enterprise clients through a separate track given their longer sales cycles and more complex decision making. What we have observed is that delivery demand from these clients comes out of their day-to-day business processes, such as transferring inventory between stores, sending client documents back and forth, or dispatching after-sale parts urgently. These demands run more continuously, and the relationships last longer, making our revenue more stable. On the individual user side, The role FlashGF plays for our users continues to extend from delivering an item to completing a task. Compared with the first quarter, luggage delivery order volume grew 37.5%, food pickup grew 25%, parcel pickup grew 7.2%, and assisted purchasing grew 6.7%. Growth across these scenarios came from delivery developing new service formats around what users actually need, and from reaching out to them at the specific moments those needs arise. Roundtrip orders, which we launched recently, as one example, they combine delivery, waiting, and the return trip to a single order handled by the same flash rider designed for tasks that require a roundtrip. such as document and contract signing. These are exactly the tasks a dedicated query model handles well, and they bring FlashGX further into our users' everyday routine. Our AI work in the second quarter centered on two priorities, making our service easier for users to reach and putting AI to work across the company's daily operations. Starting with users, we saw notably more users placing orders through our quick app entry point in Huawei harmonious OS ecosystem during the second quarter. Order volume through this entry grew 27.6% quarter over quarter, and the number of users ordering through it grew 12.9%. This lightweight entry point make our service easier to access, driving both new user acquisition and higher order frequency. In June, we launched AI-powered ordering in the FlashEx apps. Users simply describe what they need by voice, and the system identifies and matches the pickup and drop-off addresses and other order details, completing the order in a single exchange.