Q1 2026 BingEx Ltd Earnings Call

May 21, 2026

Operator: Good day, welcome to BingEx 2026 Q1 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 Piacente Financial Communications. Please go ahead.

Speaker #1: Please go ahead.

Speaker #2: 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.

Yidan Fu: 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 uncertainties, including those mentioned in our most recent filings with the SEC. The non-GAAP financial measures we provide are for comparison purpose only. The definition of those 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 BingEx company's IR website at ir.flashexpress.com. Furthermore, throughout the call, we're consistently using the company brand name, FlashEx, to refer to its publicly listed entity, BingEx Limited.

Speaker #2: Actual events will result could differ materially from those mentioned in today's news release, and in this discussion, due to a number of risks and certainties.

Speaker #2: Including those mentioned in our most recent findings with the ICC. The non-gas financial measures we provide are for comparison purposes only. The definition of those measures and the reconciliation table are available in the news release we issued earlier today.

Yidan Fu: The definition of those 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 BingEx company's IR website at ir.flashexpress.com. Furthermore, throughout the call, we're consistently using the company brand name, FlashEx, to refer to its publicly listed entity, BingEx Limited.

Speaker #2: As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the BingEx Company's IR website at ir.ichansone.com.

Speaker #2: Furthermore, throughout the call, we’ll consistently use the company brand name FlashEX to refer to its publicly listed entity, BingEx Limited. Joining us today from FlashEX senior management are Mr. Adam Chu, founder, chairman of the board, and chief executive officer.

Yidan Fu: Joining us today from FlashEx senior management are Mr. Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer. Mr. Hongjian Yu, Co-founder, Director, and Executive President. Mr. Le Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Speaker #2: 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 Chu.

Speaker #3: Thank you, Idan. 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.

Adam Xue: Thank you, Yidan. Hello, everyone, and welcome to FlashEx Q4 2026 earnings call. In the Q1 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 Q1, Flash Express 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.

Speaker #3: 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.

Adam Xue: 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 Q1, Flash Express fulfilled 57.9 million orders, delivering a stable performance amid a dynamic market environment that demonstrated the resilience of our business model.

Speaker #3: In the first quarter, FlashEX fulfilled 57.9 million orders. Delivering a stable performance amid a dynamic market environment that demonstrated the resilience of our business model.

Adam Xue: 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.

Speaker #3: 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.

Adam Xue: Turning to our financial performance, total revenues for Q1 reached RMB 935.3 million, with a gross margin of 11.3%. Non-GAAP income from operations was RMB 21.6 million. As of the end of Q1, we held cash and cash equivalents, restricted cash, and short-term investments totaling RMB 859.1 million, maintaining a healthy financial position. On the merchant side, we continued to execute our tiered merchant management strategy in Q1, further improving service response efficiency and resource allocation. Among our core high-frequency categories, cake and flower merchants typically have stable, recurring business needs and lasting business relationships, making them the most predictable component of our revenue mix. In Q1, order volume from the cake category exceeded 15.4 million, achieving year-over-year growth despite a high comparison base.

Speaker #3: Turning to our financial performance, total revenues for the first quarter reached RMB 935.3 million, with a gross margin of 11.3%. Non-GAAP income from operations was RMB 21.6 million. As of the end of the first quarter, we held cash and cash equivalents, restricted cash, and short-term investments totaling RMB 859.1 million, maintaining a healthy financial position.

Adam Xue: On the merchant side, we continued to execute our tiered merchant management strategy in Q1, further improving service response efficiency and resource allocation. Among our core high-frequency categories, cake and flower merchants typically have stable, recurring business needs and lasting business relationships, making them the most predictable component of our revenue mix. In Q1, order volume from the cake category exceeded 15.4 million, achieving year-over-year growth despite a high comparison base.

Speaker #3: 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.

Speaker #3: Among our core high-frequency categories, cake and flower merchants typically have stable, recurring business needs and lasting business relationships, making them the most predictable component of our revenue mix.

Speaker #3: 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 continued to improve our fulfillment capabilities, including upgrading delivery box design, improving shock resistance standards, and strengthening rider handling protocols.

Adam Xue: 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 Q1 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 periods to ensure stable order fulfillment rates and delivery quality during peak seasons. A growing number of well-known companies in automotive services, premium retail, and consumer electronics have incorporated FlashEx into their standard fulfillment channels, further strengthening our reputation as a trusted provider in the premium on-demand dedicated courier segment.

Speaker #3: 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.

Speaker #3: 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 seasons.

Adam Xue: We continued to refine our service response standards for merchants in this key vertical during the quarter, deploying delivery resources ahead of key periods to ensure stable order fulfillment rates and delivery quality during peak seasons. A growing number of well-known companies in automotive services, premium retail, and consumer electronics have incorporated FlashEx into their standard fulfillment channels, further strengthening our reputation as a trusted provider in the premium on-demand dedicated courier segment.

Speaker #3: A growing number of well-known companies in automotive services, premium retail, and consumer electronics have incorporated with FlashEX into their standard fulfillment channels, further strengthening our reputation as a trusted provider in the premium on-demand dedicated courier segment.

Adam Xue: In terms of new scenario expansion, we continued to explore new service opportunities in Q1. Campus delivery is one example. Most campus delivery services currently stop at the campus entrance, falling short of users' last-mile 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 Express is exploring a model that combines our user network with on-campus student 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 Q1, daily order volume remained steady across lifestyle services such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

Speaker #3: In terms of new scenario expansion, we continue to explore new service opportunities in the first quarter. Campus delivery is one example. Most campus services delivery services currently stop at the campus entrance, falling short of users' last-mile on-demand delivery needs.

Speaker #3: At the same time, there are large numbers of students on campus who are looking for flexible part-time income. Building on this, FlashEX 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.

Adam Xue: Building on this, Flash Express is exploring a model that combines our user network with on-campus student 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 Q1, daily order volume remained steady across lifestyle services such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

Speaker #3: On the individual user side, we continued 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, and gift delivery, and luggage delivery.

Speaker #3: As of this service categories continue to gain traction, FlashEX'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.

Adam Xue: As these service categories continue to gain traction, Flash Express' connection with users' daily life 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, we 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 Express 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 Flash Express' backend via command line to place orders, request pricing, and track shipments.

Speaker #3: 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, we officially open-sourced our core demand line interface tool becoming the first company in the intercity on-demand delivery industry to do so.

Adam Xue: Through this tool, Flash Express 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 Flash Express' backend via command line to place orders, request pricing, and track shipments.

Speaker #3: Through this tool, FlashEX has further standardized an API-enabled delivery capabilities merchants can integrate our system with their own point of sale or order management system to automatically trigger delivery requests.

Speaker #3: Upon customer payment, developers and enterprise clients can connect directly with the FlashEX backend via command line to place orders, request pricing, and track shipments. Leading AI agents, including Cloud Code, Codex, and Cursor, can also invoke FlashEX services directly through this interface.

Adam Xue: Leading AI agents, including Claude Code, Codex, and Cursor, can also invoke Flash Express services directly through this interface. This marks the first time that on-demand delivery capability has formally entered the AI workflow ecosystem as a standardized, composable, and API-accessible model. This advancement manifests what we have always envisioned, enabling ecosystem partners to access Flash Express service at lower cost, while empowering our Flash-Riders to evolve beyond the traditional courier role to become a bridge between AI systems and physical reality. The initial open-source release supports four core functions, price inquiry, order placement, order tracking, and order cancellation. We will continue to iterate and expand their capabilities, deepening the integration between on-demand delivery and the broader AI ecosystem.

Speaker #3: This marks the first time that on-demand delivery capability has formally entered the AI workflow ecosystem at a standardized, compatible, and API-accessible model. In this advancement, manifests what we have always envisioned.

Adam Xue: This advancement manifests what we have always envisioned, enabling ecosystem partners to access Flash Express service at lower cost, while empowering our Flash-Riders to evolve beyond the traditional courier role to become a bridge between AI systems and physical reality. The initial open-source release supports four core functions, price inquiry, order placement, order tracking, and order cancellation. We will continue to iterate and expand their capabilities, deepening the integration between on-demand delivery and the broader AI ecosystem.

Speaker #3: Enabling ecosystem partners to access FlashEX service at lower cost while empowering our Flash riders to evolve beyond the traditional courier role to become a bridge between AI systems and physical reality.

Speaker #3: The initial open-source release supports four core functions: price inquiry, order placement, order tracking, and order cancellation. We will continue to iterate and expand their capabilities deepening the integration between on-demand delivery and the broader AI ecosystem.

Speaker #3: We have also completed our quick cap 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.

Adam Xue: We have also completed our quick app integration with the Huawei HarmonyOS ecosystem, allowing users to initiate delivery requests directly through conversational interactions on their devices without opening the Flash app. Additionally, we have fully opened our API interface to support major AI platforms in invoking Flash Express 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 cost required. The time needed to test and launch new service scenarios has been shortened from approximately 2 months to 1 to 2 weeks.

Speaker #3: Additionally, we have fully opened our API interface to support major AI platforms in invoking FlashEX order placement capabilities through standardized integrations for the broadening access to our services.

Adam Xue: 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 cost required. The time needed to test and launch new service scenarios has been shortened from approximately 2 months to 1 to 2 weeks.

Speaker #3: 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 cost required.

Speaker #3: 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.

Adam Xue: 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. Taken 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. Flash Express wholly owned subsidiaries have entered into a strategic investment partnership with Hangzhou Low-Altitude Industry Development Co., Ltd., making Flash Express one of the first on-demand courier service providers in Hangzhou's low-altitude economy sector to receive strategic institutional backing.

Speaker #3: 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.

Speaker #3: Taken together, this 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.

Speaker #3: As many of you may have noticed, earlier this week we announced an important development. FlashEX 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.

Adam Xue: As many of you may have noticed, earlier this week, we announced an important development. Flash Express wholly owned subsidiaries have entered into a strategic investment partnership with Hangzhou Low-Altitude Industry Development Co., Ltd., making Flash Express one of the first on-demand courier service providers in Hangzhou's low-altitude economy sector to receive strategic institutional backing.

Speaker #3: 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 FlashEX expansion into autonomous delivery and low altitude logistics as we accelerate the transition from the technology exploration to real-world deployment and skilled operation.

Adam Xue: 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 Flash Express 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, Flash Express has built a nationwide fulfillment network spanning nearly 300 cities and has 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 continue to set us apart, we are well-positioned to meet the standardized and high-efficiency operational requirements of drone delivery services.

Speaker #3: After more than a decade of operating in China's on-demand delivery market, FlashEX has built a nationwide fulfillment network spanning nearly 300 cities and is established a highly mature real-time delivery infrastructure.

Adam Xue: After more than a decade of operating in China’s on-demand delivery market, Flash Express has built a nationwide fulfillment network spanning nearly 300 cities and has 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 continue to set us apart, we are well-positioned to meet the standardized and high-efficiency operational requirements of drone delivery services.

Speaker #3: 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 drone delivery services.

Adam Xue: At the same time, by integrating Hangzhou’s local industry ecosystem and strategic resources, we are building a next-generation on-demand logistics 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 5 takeoff and landing sites and launched 14 delivery routing covering key districts including Yuhang, Shangcheng, and Gongshu. In Q1, drone delivery order volume grew 157% 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 FlashEx service has achieved delivery time approximately 20% to 30% faster than traditional ground-based delivery services.

Speaker #3: 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.

Speaker #3: 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 the Hangzhou Low Altitude Industry Ecosystem, we have established five pickup and landing sites and launched 14 delivery routes covering key districts including Yuhang, Shangcheng, and Gongshu.

Speaker #3: In the first quarter, drone delivery order volume grew 157% 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.

Adam Xue: In Q1, drone delivery order volume grew 157% 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 FlashEx service has achieved delivery time approximately 20% to 30% faster than traditional ground-based delivery services.

Speaker #3: Through real-world operations, the commercial viability of the business model has now been validated. Under normal operating conditions, our Air FlashEX service has achieved delivery times approximately 20% to 30% faster than traditional ground-based delivery services.

Speaker #3: Looking ahead, we will continue to drive innovation through technology and further invest in frontier areas such as intelligent dispatching, route automation, and autonomous delivery.

Adam Xue: 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 logistics technologies, we aim to further enhance delivery efficiency, broaden service capabilities, and expand the boundaries of our fulfillment network. On the rider side, we've continued to refine our training programs and service standards to ensure that every delivery brings users a high-quality experience. In Q1, we continued our Good Deed FlashRider 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 the professionalism of our rider team is a cornerstone of our service quality.

Speaker #3: By deeply integrating our major ground fulfillment infrastructure with next-generation low-altitude logistics technologies, we aim to further enhance delivery efficiency, broaden service capabilities, and expand the boundaries of our fulfillment network.

Adam Xue: On the rider side, we've continued to refine our training programs and service standards to ensure that every delivery brings users a high-quality experience. In Q1, we continued our Good Deed FlashRider 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 the professionalism of our rider team is a cornerstone of our service quality.

Speaker #3: On the redder 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 deed flash rider recognition program, selecting outstanding riders from the platform who proactively demonstrated social responsibility during the deliveries.

Speaker #3: 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.

Speaker #3: Looking ahead to the coming quarters, we will remain focused on three strategic priorities. First, continue to deepen the application of AI across FlashEX internal operations to further improve organizational efficiency.

Adam Xue: Looking ahead to the coming quarters, we will remain focused on three strategic priorities. First, continuing to deepen the application of AI across FlashEx 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. Third, continuing to strengthen high-value merchant services and user scenario coverage to drive further improvements in our order mix. As industry competition continue to intensify, the combination of operational efficiency and service quality remains the foundation of FlashEx's long-term competitive advantage. We have always believed that a platform with genuine value serves multiple stakeholders, creating real convenience for users, providing FlashRiders 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 thriving force behind FlashEx's continued progress.

Speaker #3: 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 user scenario coverage to drive further improvements in our order mix.

Adam Xue: As industry competition continue to intensify, the combination of operational efficiency and service quality remains the foundation of FlashEx's long-term competitive advantage. We have always believed that a platform with genuine value serves multiple stakeholders, creating real convenience for users, providing FlashRiders 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 thriving force behind FlashEx's continued progress.

Speaker #3: As industry competition continues to intensify, the combination of operational efficiency and service quality remains the foundation of FlashEX's long-term competitive advantage. We have always believed that a platform with genuine value serves multiple stakeholders.

Speaker #3: Creating real convenience for users, providing Flash riders 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 FlashEX's continued progress.

Adam Xue: That concludes my remarks. I will turn the call over to our CFO, Le Tang. Thank you.

Speaker #3: That concludes my remarks. Now, I will turn the call over to our CFO, Le Tang. Thank you.

Speaker #2: Thank you, Adam. Hello, everyone. This is Luke. I would like to walk you through our first quarter 2026 financial results. As the industry's competitive landscape continues to evolve, we have leveraged AI to enhance organizational efficiency and made progress in optimizing operational effectiveness.

Le Tang: Thank you, Adam. Hello, everyone. This is Luke. I would like to walk you through our Q1 2026 financial results. As the industry's competitive landscape continues to evolve, we have leveraged AI to enhance organizational efficiency and made progress in optimizing operational effectiveness. Our broader deployment of AI has contributed to an increase in operating margin in Q1. Before I begin, please note that all numbers are in renminbi, and all percentage changes are on year-over-year basis unless otherwise noted. Our revenues for Q1 reached RMB 935.3 million, compared to RMB 960.8 million in the same period of 2025. The year-over-year decline was primarily driven by intensifying market competition. Our cost of revenues for Q1 were RMB 829.5 million, compared with RMB 834.1 million in the same period of 2025. The decrease was in line with the decline in revenues.

Speaker #2: Our broader deployment of AI has contributed to an increase in operating margin in the first quarter. Before I begin, please note that all numbers are in renminbi, and all percentage changes are on a year-over-year basis unless otherwise noted.

Le Tang: Before I begin, please note that all numbers are in renminbi, and all percentage changes are on year-over-year basis unless otherwise noted. Our revenues for Q1 reached RMB 935.3 million, compared to RMB 960.8 million in the same period of 2025. The year-over-year decline was primarily driven by intensifying market competition. Our cost of revenues for Q1 were RMB 829.5 million, compared with RMB 834.1 million in the same period of 2025. The decrease was in line with the decline in revenues.

Speaker #2: Our revenues for the first quarter reached 935.3 million, compared to 960.8 million in the same period of 2025. The year-over-year decline was primarily driven by intensifying market competition.

Speaker #2: Our cost of revenues for the first quarter was 829.5 million, compared with 834.1 million in the same period of 2025. The decrease was in line with the decline in revenues.

Le Tang: Our gross profit was CNY 105.8 million for the first quarter. Compared with CNY 126.7 million in the same period of 2025. Gross profit margin was 11.3%, compared with 13.2% in the same period of 2025. Turning to operating expenses, our total operating expenses for the first quarter were CNY 94.8 million, representing a decrease of 18.7% from CNY 116.67 million in the same period of 2025. They consisted of CNY 38.5 million in selling and marketing expenses, CNY 39.9 million in general and administrative expenses, and CNY 16.5 million in research and development expenses. Our income from operations was CNY 11 million, compared with CNY 10 million in the same period of 2025, lifting our operating margin to 1.2% from 1% year over year. Excluding share-based compensation expenses, our non-GAAP income from operations was CNY 21.6 million for the first quarter, compared with CNY 26.6 million in the same period of 2025.

Le Tang: Our gross profit was CNY 105.8 million for the Q1. compared with CNY 126.7 million in the same period of 2025. Gross profit margin was 11.3%, compared with 13.2% in the same period of 2025. Turning to operating expenses, our total operating expenses for the Q1 were CNY 94.8 million, representing a decrease of 18.7% from CNY 116.67 million in the same period of 2025. They consisted of CNY 38.5 million in selling and marketing expenses, CNY 39.9 million in general and administrative expenses, and CNY 16.5 million in research and development expenses.

Speaker #2: Our gross profits were 105.8 million for the first quarter, compared with 126.7 million in the same period of 2025. Gross profit margin was 11.3%, compared with 13.2% in the same period of 2025.

Speaker #2: Turning to operating expenses, our total operating expenses for the first quarter were $94.8 million, representing a decrease of 18.7% from $116.67 million in the same period of 2025.

Speaker #2: They consisted of 38.5 million in selling and marketing expenses, 39.9 million in general and administrative expenses, and 16.5 million in research and development expenses.

Le Tang: Our income from operations was CNY 11 million, compared with CNY 10 million in the same period of 2025, lifting our operating margin to 1.2% from 1% year over year. Excluding share-based compensation expenses, our non-GAAP income from operations was CNY 21.6 million for the Q1, compared with CNY 26.6 million in the same period of 2025.

Speaker #2: Our income from operations was $11 million, compared with $10 million in the same period of 2025, lifting our operating margin to 1.2% from 1% year over year.

Speaker #2: Excluding share-based compensation expenses or non-GAAP income from operations, was 21.6 million, for the first quarter. Compared with 26.6 million in the same period of 2025.

Le Tang: Our non-GAAP net loss was CNY 11.1 million, compared with non-GAAP net income of CNY 49.6 million in the same period of 2025. Our cash position remains healthy, with cash and cash equivalents, restricted cash, and short-term investments totaling CNY 859.1 million as of 31 March 2026. As we move through 2026, we remain committed to disciplined execution and upholding our high-quality service advantages. Building on our achievements in AI deployments, we will further refine cost structures and control expenses to boost margins. By practicing prudent financial management and actively pursuing business innovation, we will capture emerging opportunities and leverage operational efficiency gains to deliver sustainable long-term value for all stakeholders. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Speaker #2: Our non-GAAP net loss was 11.1 million, compared with non-GAAP net income of 49.6 million in the same period of 2025. Our cash position remained healthy, with cash and cash equivalents restricted cash and shortened investments totaling 859.1 million, as of March 31st, 2026.

Speaker #2: As we move through 2026, we remain committed to disciplined execution and upholding our high-quality service advantages. Building on our achievements in AI deployments, we will further refine cost structures and control expenses to boost margins.

Le Tang: By practicing prudent financial management and actively pursuing business innovation, we will capture emerging opportunities and leverage operational efficiency gains to deliver sustainable long-term value for all stakeholders. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Speaker #2: By practicing prudent financial management and actively pursuing business innovation, we will capture emerging opportunities and leverage operational efficiency gains to deliver sustainable, long-term value for all stakeholders.

Speaker #2: That concludes our pre-part remarks. We will now like to open the floor to your questions. Operator, please go ahead.

Speaker #3: Thank you. We will now begin the question and answer session. To ask the question, please press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. We will now begin the question-and-answer session. We will now proceed to take questions from the line of Sifan Jiang of CICC. Please go ahead. Sifan, your line is open.

Speaker #3: To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Speaker #3: We will now proceed to take questions from the line of Xu Fanjiang of CICC. Please go ahead, Xu Fan, your line is open.

Sifan Jiang: Okay. Thank you to management team for taking my questions. My first question is, could you please share our Q1 order volume and ASP trends broken down by 2B and 2C segments? Given this year's declaration in order volume growth with the food delivery sector, coupled with an increase in AOV, how should we interpret the implications of this trend for premium service providers like us? My second question is: We have recently noted reports that we have received reinvestment from Hangzhou State Capital to expand into the low-altitude economy sector. Could you please outline the strategic direction, specific application scenarios, and current progress of this initiative? Thank you.

Speaker #4: Okay. Thank you to the management team for taking my questions. My first question is, could you please share our first-quarter order volume in ASB Trends, broken down by QB and QC segments?

Speaker #4: Given this year's circular declaration in order volume growth, with the food delivery sector coupled with an increase in AOV, how should we interpret the implications of this trend for premium service providers like us?

Speaker #4: And my second question is, we have recently noted reports that we have received reinvestment from Hangzhou State Home Capital to expand into the low-altitude economy sector.

Sifan Jiang: My second question is: We have recently noted reports that we have received reinvestment from Hangzhou State Capital to expand into the low-altitude economy sector. Could you please outline the strategic direction, specific application scenarios, and current progress of this initiative? Thank you.

Speaker #4: Could you please outline the strategic direction, specific application scenarios, and current progress of this initiative? Thank you.

Speaker #2: Yeah. Thank you, Xu Fan, for your questions. This is Luke. I would like to answer your first question and may hand over your second questions to Aydin.

Le Tang: Yeah. Thank you, Sifan, for your questions. This is Le Tang. I would like to answer your 1 question and may hand over your 2 questions to Adam Xue. Now, let me first give you an overview of our Q1 performance and then share our perspective on what the recent shifts in the food delivery sector mean for Flash Express. In Q1, Flash Express fulfilled 57.9 million orders, maintaining solid performance amid intensifying industry competition and a dynamic market environment, which reflects the resilience of our on-demand dedicated courier model. At the same time, our average delivery time further improved to 25.7 minutes, and our registered rider base reached 3.1 million, reflecting continued improvement in our fulfillment capabilities and the service experience. On the merchant side, we continue to execute our tiered merchants management strategy in Q1, with high-quality categories driving a continued order mix improvement.

Speaker #2: Now, let me first give you an overview of our first quarter performance, and then share our perspective on what the recent shift in the food delivery sector means for FlashX.

Speaker #2: In the first quarter, FlashX fulfilled 57.9 million orders, maintaining solid performance and amid intensifying industry competition. And the dynamic market environment, which reflects the resilience of our on-demand dedicated courier model.

Le Tang: At the same time, our average delivery time further improved to 25.7 minutes, and our registered rider base reached 3.1 million, reflecting continued improvement in our fulfillment capabilities and the service experience. On the merchant side, we continue to execute our tiered merchants management strategy in Q1, with high-quality categories driving a continued order mix improvement.

Speaker #2: At the same time, our average delivery time further improved to 25.7 minutes and our registered rider base reached 3.1 million, reflecting continued improvement in our fulfillment capabilities and the service experience.

Speaker #2: On the merchant side, we continue to execute our tiered merchant management strategy in the first quarter. With high-quality categories driving continued order mix improvement, a key category order volume exceeded 15.4 million for the quarter, achieving year-over-year growth despite a high comparison base.

Le Tang: The cake category order volume exceeded 15.4 million for the quarter, achieving year-over-year growth despite a high comparison base. Electronics order volume grew 15.9% year-over-year, sustaining its strong momentum and serving an important driver of order mix improvements. At the same time, leading companies in automotive services, premium retail, and consumer electronics continue to adopt FlashEx as part of their standard fulfillment channels. Overall, KA merchants GMV contribution improved steadily year-over-year in Q1, and ASP held at a relatively stable, elevated level, further reinforcing our reputation in the premium on-demand delivery segment. On the individual user side, we continue to strengthen our positioning as an instant lifestyle assistant. In Q1, daily order volumes remained steady across the lifestyle service categories, including assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

Speaker #2: Electronics order volume grew 15.9% year over year, sustaining its strong momentum and serving an important driver of order mixed improvement. At the same time, leaving companies in automotive services premium retail and consumer electronics continue to adopt FlashX as part of their standard fulfillment channels.

Le Tang: Overall, KA merchants GMV contribution improved steadily year-over-year in Q1, and ASP held at a relatively stable, elevated level, further reinforcing our reputation in the premium on-demand delivery segment. On the individual user side, we continue to strengthen our positioning as an instant lifestyle assistant. In Q1, daily order volumes remained steady across the lifestyle service categories, including assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

Speaker #2: Overall, KA merchant GMV contribution improved steadily year over year, in the first quarter and ASP hold at a relatively stable elevated level further reinforcing our reputation in the premium on-demand delivery segment.

Speaker #2: On the individual user side, we continue to strengthen our positioning as an instant lifestyle assistant. In the first quarter, daily order volumes remained steady across lifestyle service categories, including assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

Le Tang: As these categories gain traction, Flash Express' connection with users' daily lives has deepened, and the platform is gradually evolving from a single-purpose urgent delivery tool into an on-demand service entry point, covering a broader range of everyday needs. Stepping back to the industry level, Flash Express and the food delivery platforms has always differed meaningfully in terms of user profiles, use cases, delivery efficiency, and the service experience. In our view, the broader return to the rational competition across the industry is a positive development, both for Flash Express and for the healthy development of the industry as a whole. For Flash Express specifically, as we deepen our refined operations for merchant clients, expand our channel reach, and cover new customer scenarios, the industries and the brands we serve. We continue to diversify alongside the steady growth in KA merchant GMV contribution.

Speaker #2: As these categories gain traction, FlashX's connection with users' daily lives has deepened, and the platform is gradually evolving from a single-purpose urgent delivery tool into an on-demand service entry point covering a broader range of everyday needs.

Speaker #2: Stepping back to the industry level, FlashX and the food delivery platforms has always differed meaningfully in terms of user profiles, user cases, delivery efficiency, and service experience.

Le Tang: In our view, the broader return to the rational competition across the industry is a positive development, both for Flash Express and for the healthy development of the industry as a whole. For Flash Express specifically, as we deepen our refined operations for merchant clients, expand our channel reach, and cover new customer scenarios, the industries and the brands we serve. We continue to diversify alongside the steady growth in KA merchant GMV contribution.

Speaker #2: In our view, the broader return to the rational competition across the industry is a positive development both for FlashX and for the healthy development of the industry as a whole.

Speaker #2: For FlashX, specifically, as we deepen our refined operations for merchant clients, expand our channel reach, and cover new customers' narrows, the industry's and the brands we serve will continue to diversify alongside the steady growth in KA merchant GMV contribution.

Speaker #2: At the same time, we are proactively positioning ourselves to capture these opportunities through technology. On one hand, by integrating AI capabilities more deeply to make FlashX services more accessible for merchants and users, on the other, by developing low-altitude logistics to overcome traffic constraints and continue improving fulfillment efficiency and service experience.

Le Tang: At the same time, we are proactively positioning ourselves to capture these opportunities through technology. On one hand, by integrating AI capabilities more deeply to make Flash Express services more accessible for merchants and users. On the other, by developing low-altitude logistics to overcome geographic and traffic constraints, and continue improving fulfillment efficiency and the service experience. Overall, Flash Express will stay true to our value proposition, continuing to focus on high-value merchants, high-quality consumer scenarios, and emerging areas such as AI and low-altitude logistics to reinforce our long-term competitive advantage in the premium on-demand delivery segment. Now, we would like to please Adam Xue to answer your second question.

Le Tang: Overall, Flash Express will stay true to our value proposition, continuing to focus on high-value merchants, high-quality consumer scenarios, and emerging areas such as AI and low-altitude logistics to reinforce our long-term competitive advantage in the premium on-demand delivery segment. Now, we would like to please Adam Xue to answer your second question.

Speaker #2: Overall, FlashX will stay true to our value proposition, continuing to focus on high-value merchants' high-quality consumer narrows and the emerging areas such as AI and low-altitude logistics, to reinforce our long-term competitive advantage in the premium on-demand delivery segment.

Speaker #2: Now, we would like to please Aydin to answer your second questions.

Speaker #5: Thank you for your question. For the second question, FlashX has always placed great importance on emerging technologies and their applications in the industry and our service scenarios.

Adam Xue: Thank you for your question. For the second question, Flash Express has always placed great importance on emerging technologies and their applications in the industry and our service scenarios. This strategic investment represents another significant milestone following our deep integration of AI, and reflects not only capital market recognition, but also strong endorsement of our on-demand dedicated courier model, real-time fulfillment capabilities, and technological innovation. Let me walk you through the three dimensions you raised: strategic direction, application scenarios, and current progress. Starting with the strategic direction, after more than a decade in intra-city on-demand delivery, Flash Express has built a major ground-based fulfillment network spanning nearly 300 cities across China. We see low altitude logistics as both a meaningful extension of our existing business and one of our priorities for technological advancement and medium to long-term growth.

Speaker #5: This strategic investment represents another significant milestone following our deep integration of AI and reflects not only capital market recognition but also strong endorsement of our on-demand dedicated courier model.

Speaker #5: Real-time fulfillment capabilities and technological innovation let me walk you through the three dimensions you raised. Strategic direction, application scenarios, and current progress. Starting with the strategic direction, after more than a decade in intercity on-demand delivery, FlashX has built major ground-based fulfillment network spanning nearly 300 cities across China with low-altitude logistics as both a meaningful extension of our existing business and one of our priorities for technological advancement and medium-to-long-term growth.

Adam Xue: Let me walk you through the three dimensions you raised: strategic direction, application scenarios, and current progress. Starting with the strategic direction, after more than a decade in intra-city on-demand delivery, Flash Express has built a major ground-based fulfillment network spanning nearly 300 cities across China. We see low altitude logistics as both a meaningful extension of our existing business and one of our priorities for technological advancement and medium to long-term growth.

Speaker #5: Joining our years of accumulated fulfillment capability and operational expertise, we are well-positioned to meet the standardized, high-efficiency requirements of joint delivery. At the same time, by working with Hangzhou's local industry partners, we are exploring a new, next-generation on-demand logistic model that combines rapid aerial transportation with ground-based last-mile delivery, progressively building a deeper coordination between low-altitude and ground networks.

Adam Xue: Drawing on years of accumulated fulfillment capability and operational expertise, we are well-positioned to meet the standardized high efficiency requirements of drone delivery. At the same time, by working with Hangzhou's local industry partners, we are exploring a next generation on-demand logistic model that combines rapid aerial transportation with ground-based last-mile delivery, progressively building a deeper coordination between low altitude and ground network. On application scenarios, Flash Express has already built strong fulfillment capabilities in high value, time sensitive categories such as cakes, fresh flowers, premium retail, and consumer electronics. These are precisely the scenarios where faster, more reliable, and more secure delivery matters most, and where drone delivery can demonstrate the clearest innovation value.

Adam Xue: On application scenarios, Flash Express has already built strong fulfillment capabilities in high value, time sensitive categories such as cakes, fresh flowers, premium retail, and consumer electronics. These are precisely the scenarios where faster, more reliable, and more secure delivery matters most, and where drone delivery can demonstrate the clearest innovation value.

Speaker #5: On application scenarios, FlashX has already built strong fulfillment capabilities in high-value time-sensitive categories such as cakes, fresh flowers, premium retail, and consumer electronics. These are precisely the scenarios where faster more reliable and more secure delivery matters most.

Speaker #5: And where joint delivery can demonstrate the clearest innovation value. In addition, for situation-involving cross-district routes, geographic barriers such as river or hills or heavy traffic congestion where ground delivery efficiency is limited, joint delivery can meaningfully shorten delivery times and improve fulfillment reliability, which aligns well with the needs of our existing premium on-demand delivery clients.

Adam Xue: In addition, for situations involving cross-district routes, geographic barriers such as rivers or hills or heavy traffic congestion where ground delivery efficiency is limited, drone delivery can meaningfully shorten delivery times and improve fulfillment reliability, which aligns well with the needs of our existing premium on-demand delivery clients. On current progress, our drone delivery initiative has now entered substantive commercial operations. In partnership with Hangzhou Low Altitude Industry Ecosystem, we have activated 5 takeoff and landing sites and launched 14 delivery routes covering key districts including Yuhang, Shangcheng, and Gongshu. In Q1, drone delivery order volume grew 157% quarter-over-quarter. As of the end of April, the project has completed approximately 3,500 paid orders and nearly 2,900 drone flights, maintaining a 100% safety record. The commercial model has been preliminarily validated.

Adam Xue: On current progress, our drone delivery initiative has now entered substantive commercial operations. In partnership with Hangzhou Low Altitude Industry Ecosystem, we have activated 5 takeoff and landing sites and launched 14 delivery routes covering key districts including Yuhang, Shangcheng, and Gongshu. In Q1, drone delivery order volume grew 157% quarter-over-quarter. As of the end of April, the project has completed approximately 3,500 paid orders and nearly 2,900 drone flights, maintaining a 100% safety record. The commercial model has been preliminarily validated.

Speaker #5: On current progress, our joint delivery initiative has now entered substantive commercial operations. In partnership with Hangzhou low-altitude industry ecosystem, we have activated five take-off and landing sites and launched 14 delivery routes covering key districts including Yuhang, Shangcheng, and Gongshu.

Speaker #5: In the first quarter, joint delivery order volume grew 157% quarter over quarter. As of the end of April, the project has completed approximately 3,500 paid orders and nearly 2,900 joint flights, maintaining a 100% safety record.

Speaker #5: The commercial model has been preliminarily validated. Under normal operating conditions, our aerial delivery service achieves delivery times 20% to 30% faster than the traditional ground-based services.

Adam Xue: Under normal operating conditions, our aerial delivery service achieves delivery times 20% to 30% faster than the traditional ground-based services. Going forward, we will continue to drive innovation through technology, investing in areas such as intelligent dispatching, route optimization, and autonomous delivery. By deeply integrating our major ground delivery infrastructure with low altitude logistics technology, we aim to further improve delivery efficiency and expand the boundaries of Flash Express service capability.

Speaker #5: Going forward, we will continue to drive innovation through technology, investing in areas such as intelligent dispatching, route optimization, and autonomous delivery, by deeply integrating our major ground delivery infrastructure with low-altitude logistics technology, we aim to further improve delivery efficiency and expand the bandwidth of FlashX service capability.

Speaker #1: Thank you. I am showing no further questions, and that concludes the question-and-answer session. I will now turn the call over to Idan Fu for closing remarks.

Operator: Thank you. I am showing no further questions, and that concludes the question and answer session. I will now turn the call over to Yidan Fu for closing remarks.

Speaker #2: Thank you once again for joining BingEx First Quarter 2026 financial results and business update conference call today. If you have any further questions, please contact the IR team at BingEx or PS&T Financial Communications.

Yidan Fu: Thank you once again for joining BingEx Q1 2026 financial results and business update conference call today. If you have any further questions, please contact the IR team at BingEx or Piacente Financial Communications. Thank you and have a great day.

Speaker #2: Thank you and have a great day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.