Q2 2026 BingEx Ltd Earnings Call

August 20, 2026

Operator: Good day, and welcome to BingEx 2026 Q2 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Yidan Fu from Piacente Financial Communications. Please go ahead.

Speaker #2: Good day, and welcome to BingEx 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 Yidin Fu from PS&T Financial Communications.

Speaker #2: Please go ahead.

Speaker #3: 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.

Yidan Fu: 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 filings with the SEC. The non-GAAP financial measures we provide are for comparison purpose only. The definition of these measures and a 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.ishansong.com. Furthermore, throughout the call, we will constantly use the company brand name FlashEx to refer to its publicly listed entity, BingEx Limited.

Speaker #3: 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.

Speaker #3: Including those mentioned in our most recent findings with the SEC, the non-GAAP financial measures we provide are for comparison purposes only. The definition of these measures and the reconciliation table are available in the news release we issued earlier today.

Yidan Fu: The non-GAAP financial measures we provide are for comparison purpose only. The definition of these measures and a 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.ishansong.com. Furthermore, throughout the call, we will constantly use the company brand name FlashEx to refer to its publicly listed entity, BingEx Limited.

Speaker #3: 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.aishanzone.com.

Speaker #3: Furthermore, throughout the call, we will 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 Xue, founder and 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, and Mr. Le Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Speaker #3: 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 Xue.

Speaker #4: Thank you, Yidin. Hello everyone, and welcome to the FlashEX second quarter 2026 earnings call. The on-demand delivery industry continued to evolve in the second quarter. Users today expect more than speed alone, placing growing weight on the entire service experience.

Adam Xue: Thank you, Eden. Hello, everyone, and welcome to FlashEx' Q2 2026 earnings call. The on-demand delivery industry continued to evolve in the second quarter. Users today expect more than speed alone, placing growing 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 FlashEx 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 scale and delivery efficiency improving together.

Adam Xue: Thank you, Yidan. Hello, everyone, and welcome to FlashEx' Q2 2026 Earnings Call. The on-demand delivery industry continued to evolve in the Q2. Users today expect more than speed alone, placing growing weight on the entire service experience from the moment they place an order to the moment it arrives.

Speaker #4: From the moment they place an order to the moment it arrives, AI is advancing quickly and low-altitude airspace is opening up at the same time.

Adam Xue: 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 FlashEx 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 Q2, with scale and delivery efficiency improving together.

Speaker #4: We are creating new ways to fulfill orders in our industry. This aligns with the on-demand dedicated courier model that FlashEX has been building all along, as well as the technology advancements we have made over the past several quarters.

Speaker #4: The operating approach we have followed over the past several quarters translated into real results in the second quarter. This skill and delivery efficiency are improving together.

Speaker #4: 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.

Adam Xue: Total order volume grew 8.9% quarter-over-quarter, and average delivery time shortened from 25.7 minutes in Q1 to 25.3 minutes in Q2, even as volume rose. Behind this is the rider base and service network that keep expanding. As of the end of Q2, registered Flash-Riders reached 3.23 million, and our service coverage expanded to 299 cities. Our user base also grows steadily, with registered users up 4 million from the end of Q1 to 124 million. Turning to our financial performance, total revenues from Q2 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 Q2, reflecting a healthy overall financial position.

Speaker #4: Even as volume rose, behind this is the rider base and service network that keep expanding. As of the end of the second quarter, registered Flash riders reached 3.23 million, and our service coverage extended to 299 cities.

Speaker #4: Our user base also grows steadily, with registered users increasing from 4 million at the end of the first quarter to 124 million. Turning to our financial performance, total revenue for the second quarter was RMB 940.3 million, with a gross margin of 10.2%.

Adam Xue: Turning to our financial performance, total revenues from Q2 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 Q2, reflecting a healthy overall financial position.

Speaker #4: Non-GAAP income from operations was RMB 10.8 million, and non-GAAP net income was RMB 11.4 million. Our cash position stood at RMB 853.4 million as of the end of the second quarter, reflecting a healthy overall financial position.

Speaker #4: Looking at the order mix by category, volume recovery in the second quarter came from across fourths. Flash flowers, a core category we have cultivated for years, grew 29.2% quarter over quarter in order volume.

Adam Xue: Looking at the order mix by category, volume recovery in Q2 came from across the board. 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 growth both year-over-year and quarter-over-quarter, leaving our overall order mix more balanced. Several major categories moving up in turns tell us how well our on-demand dedicated courier model fits high-value scenarios, and it also spreads our order composition more widely, reducing our reliance on any one category. On the merchant side, we set out to simultaneously grow our merchant base and improve its quality in Q2. Newly signed merchants grew 18% quarter-over-quarter, and the share of high-value, high-stickiness merchants rose meaningfully as our merchant base expanded.

Speaker #4: Food, cakes, and electronics all posted order volume growth both year over year and quarter over quarter. Leaving our overall order mix more balanced. Several major categories moving up in advance tell us how well our on-demand dedicated courier model fits high value scenarios and it also surprised our order composition more widely reducing our resilience on any one category.

Adam Xue: Several major categories moving up in turns tell us how well our on-demand dedicated courier model fits high-value scenarios, and it also spreads our order composition more widely, reducing our reliance on any one category. On the merchant side, we set out to simultaneously grow our merchant base and improve its quality in Q2. Newly signed merchants grew 18% quarter-over-quarter, and the share of high-value, high-stickiness merchants rose meaningfully as our merchant base expanded.

Speaker #4: 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 after quarter over quarter and the share of high value high thickness merchants rose meaningfully as our merchant base expanded.

Speaker #4: Enterprise clients stood out in particular, with new signings 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.

Adam Xue: Enterprise clients stood out, in particular, with new sign-ups 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 FlashEx plays for our users continues to extend from delivering an item to completing a task.

Speaker #4: 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.

Adam Xue: 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 FlashEx plays for our users continues to extend from delivering an item to completing a task.

Speaker #4: These demands ran more continuously, and the relationships last longer, making our revenue more stable. On the individual user side, the role FlashEX plays for our users continues to extend from delivery and item to completing a task.

Speaker #4: 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.

Adam Xue: Compared with Q1, 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. Round-trip orders, which we launched recently, are 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 round trip, such as document and contract signing. These are exactly the tasks a dedicated courier model handles well, and they bring FlashEx further into our users' everyday routines. Our AI work in Q2 centered on two priorities, making our service easier for users to reach and putting AI to work across the company's daily operations.

Speaker #4: Round trip orders, which we launched recently, as one example, they combine delivery, waiting, and the return trip into a single order handled by the same Flash rider, designed for tasks that require a round trip.

Adam Xue: Round-trip orders, which we launched recently, are 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 round trip, such as document and contract signing. These are exactly the tasks a dedicated courier model handles well, and they bring FlashEx further into our users' everyday routines. Our AI work in Q2 centered on two priorities, making our service easier for users to reach and putting AI to work across the company's daily operations.

Speaker #4: Such as document and contract signing. These are exactly the tasks a dedicated courier model handles well, and they bring FlashEX further into our users' everyday routines.

Speaker #4: 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.

Speaker #4: Starting with users, we saw notably more users placing orders through our quick app entry point in the Huawei HarmonyOS ecosystem during the second quarter.

Adam Xue: Starting with users, we saw notably more users placing orders through our quick app entry point in the Huawei HarmonyOS ecosystem during Q2. Order volume through this entry grew 27.6% quarter-over-quarter, and the number of users ordering through it grew 20.9%. This lightweight entry point makes 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. More recently, Flash-

Speaker #4: Order volume through this entry grew 27.6% quarter over quarter, and the number of users ordering through it grew 20.9%. This lightweight entry point makes our service easier to access.

Speaker #4: Driving both new user acquisition and high 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.

Adam Xue: 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. More recently, Flash-

Speaker #4: More recently, FlashE

Operator: Ladies and gentlemen, please stand by. Your conference will resume momentarily. Once again, please stand by.

Speaker #6: Ladies and gentlemen, please stand by. Your conference will resume momentarily. Once again, please stand by.

Adam Xue: To finish without switching to another interface. Whether the order is an urgent document, flowers, or medicine, AI can quickly match the right delivery option. Along with the CLI tool we open-sourced in Q2, developers and individual users can now reach FlashEx AI portal service directly. Across all of our AI work, we keep coming back to one question: What does the user actually end up with? Whether an order is placed through our app or a voice assistant or an AI agent is fundamentally irrelevant to the user. What shapes the experience is whether FlashEx arrives on time and completes the job to a high standard, and whether we can respond to the user concern properly. That stays at the core of how we develop and deploy AI. Now to our internal operations.

Speaker #4: It's hard to finish without switching to another interface. Whether the order is an urgent document, flowers, or medicine, AI can quickly match the right delivery option.

Speaker #4: Along with the CLI tool we open sourced in the second quarter, developers and individual users can now reach the FlashEX AI-powered service directly. Across all of our AI work, we keep coming back to one question.

Speaker #4: What does the user actually end up with? Whether an order is placed through our app, a voice assistant, or an AI agent, it's fundamentally irrelevant to the user.

Speaker #4: What shapes the experience is whether FlashEX arrived on time and completed the job to a high standard, and whether we can respond to the user's concerns properly.

Adam Xue: What shapes the experience is whether FlashEx arrives on time and completes the job to a high standard, and whether we can respond to the user concern properly. That stays at the core of how we develop and deploy AI. Now to our internal operations.

Speaker #4: That stays at the core of how we develop and deploy AI. Now, to our internal operations: we established an organizational innovation committee in the second quarter, letting each business unit propose and implement its own AI projects.

Adam Xue: We established an organizationally innovation committee in Q2, letting each business unit propose and implement its own AI projects. In customer service, our AI system now independently handles 85% of the scenarios it covers, addressing routine inquiries and complaints the moment they are submitted. In marketing, compliance review of MCN content previously conducted manually, now goes through a first pass by a self-developed AI reviewing system. In regional operations, the time required to model capacity plans for new city launches and holiday peaks has come down from several days to a few hours. Across these areas, operating efficiency improved by roughly 30%. We see AI as a compounding effort rather than a single leap. It builds gradually, with the gains adding up over quarters.

Speaker #4: In customer service, our AI system now independently handles 85% of the scenarios it covers, addressing routine inquiries and complaints the moment they are submitted.

Speaker #4: In marketing, compliance review of MCN content, which was previously conducted manually, now goes through a first pass by our self-developed AI reviewing system. In regional operations, the time required to model capacity applies for new city launches and holiday picks.

Adam Xue: In regional operations, the time required to model capacity plans for new city launches and holiday peaks has come down from several days to a few hours. Across these areas, operating efficiency improved by roughly 30%. We see AI as a compounding effort rather than a single leap. It builds gradually, with the gains adding up over quarters.

Speaker #4: Has come down from several days to a few hours. Across this areas, operating efficiency, improved by roughly 30%. We see AI as a compounding effort rather than a single leap.

Speaker #4: It builds gradually, with the gains adding up over quarters as AI becomes a more routine part of how the organization works. We believe that our operating expense ratio can improve further over the medium to long term, creating room for better profit margins ahead.

Adam Xue: As AI becomes a more routine part of how organization works, we believe that our operating expense ratio can improve further over the medium to long term, creating room for better profit margins ahead. Next, let's take a look at low-altitude logistics. The business moved from single route trials to multi-route operations during Q2. Drone delivery order volume grew 169.3% quarter-over-quarter, and we now have 22 routes in operation. in July, Hangzhou's first cross-river route for low-altitude on-demand delivery entered commercial operation, taking only 13 minutes to cross the river. With Flash-Riders handing off at each end and a drone crossing in between, orders that once took more than 40 minutes now arrive in little over 20 minutes. Since the route began operating, deliveries are mainly being medicine, urgent business documents, fresh food, and digital accessories, all categories where timing matters.

Speaker #4: Next, let's take a look at low-altitude logistics. The business moved from single-road trials to multi-route operations during the second quarter. Drone delivery order volume grew 169.3% quarter-over-quarter.

Adam Xue: Drone delivery order volume grew 169.3% quarter-over-quarter, and we now have 22 routes in operation. in July, Hangzhou's first cross-river route for low-altitude on-demand delivery entered commercial operation, taking only 13 minutes to cross the river. With Flash-Riders handing off at each end and a drone crossing in between, orders that once took more than 40 minutes now arrive in little over 20 minutes. Since the route began operating, deliveries are mainly being medicine, urgent business documents, fresh food, and digital accessories, all categories where timing matters.

Speaker #4: And we now have 22 routes in operation. In July, Hangzhou's first cross river route for low altitude under the mount delivery entered commercial operation.

Speaker #4: Taking only 13 minutes to cross the river, with Flash riders handing off at each end and the drone crossing in between, orders that once took more than 40 minutes now arrive in a little over 20 minutes.

Speaker #4: Since the route became operational, deliveries have mainly been medicine, urgent business documents, fresh food, and digital accessories—all categories where timing matters. With use continuing to increase and the delivery model proving itself across different scenarios, low-altitude logistics has moved past the trial stage and into broader expansion.

Adam Xue: With use continuing to increase and the delivery model proving all across different scenarios, low-altitude logistics has moved past the trial stage and into a broader expansion. On the rider side, we registered Flash-Rider base continue to expand in Q2. We also further strengthened our training program and create protection through dedicated training around safety standards, handling procedure for high-value items, and new services such as round-trip orders. The stability and professionalism of rider team remain the foundation of our high-quality service. Looking to H2, our focus stays on the service itself. AI and low-altitude logistics are two new paths to making that service better. AI helps users find us at the very moment they need us, and low-altitude logistics frees our Flash-Riders from obstacles like a river or a busy road.

Speaker #4: On the rider side, we registered that the Flash rider base continued to expand in the second quarter. We also further strengthened our training program and created protection through dedicated training around safety standards, handling procedures for high-value items, and new services such as round trip orders. The stability and professionalism of the rider team remain the foundation of our high-quality service.

Adam Xue: The stability and professionalism of rider team remain the foundation of our high-quality service. Looking to H2, our focus stays on the service itself. AI and low-altitude logistics are two new paths to making that service better. AI helps users find us at the very moment they need us, and low-altitude logistics frees our Flash-Riders from obstacles like a river or a busy road.

Speaker #4: Looking to the second half of the year, our focus stays on the service itself. AI and low-altitude logistics are two new paths to making that service better.

Speaker #4: AI helps users find us at the very moment they need us, and low-altitude logistics frees our Flash riders from obstacles like rivers or busy roads.

Speaker #4: They have seen this market change many times since we started, and we still believe the hardest thing to replicate here is trust—earned through every safe, on-time delivery. Behind that trust is our brand.

Adam Xue: We have seen this market change many times since we started, and we still believe the hardest thing to replicate here is trust, earned through every safe, on-time delivery. Behind that trust is our brand, our Flash-Rider team, and our technology. This is the foundation of the long-term value we create for our users, our riders, and our shareholders. That concludes my remarks. Now, I will turn the call over to our CFO, Luke Tang. Thank you.

Speaker #4: Our Flash Rider team and our technology—this is the foundation of the long-term value we create for our users, our riders, and our shareholders.

Speaker #4: That concludes my remarks. Now, I will turn the call over to our CFO, Le Tang. Thank you.

Speaker #2: Thank you, Eden. Hello, everyone. This is Luke. I'd like to walk you through our second quarter 2026 financial results. During the second quarter, our unique on-demand dedicated courier model remained resilient as we further refined our operations and extended the use of AI across the organization.

Le Tang: Thank you, Alan. Hello, everyone. This is Luke. I'd like to walk you through our Q2 2026 financial results. During Q2, our unique on-demand dedicated courier model remained resilient as we further refined our operations and extended the use of AI across the organization. We also maintained a healthy cash position and continued to return capital to shareholders through our repurchase program. Before I begin, please know that all numbers are in RMB, and all percentage changes are on a year-over-year basis unless otherwise noted. Our revenues for Q2 were RMB 940.3 million, compared with RMB 1,024.6 million in the same period of 2025. The decrease was primarily driven by intensifying marketing competition. Our cost of revenues for Q2 was RMB 844.7 million, compared with RMB 901.9 million in the same period of 2025. The decrease was in line with the decline in revenues.

Speaker #2: We also maintained a healthy cash position and continue to return capital to shareholders through our repurchase program. Before I begin, please note that all numbers are in renminbi, and all percentage changes are on a year-over-year basis.

Le Tang: Before I begin, please know that all numbers are in RMB, and all percentage changes are on a year-over-year basis unless otherwise noted. Our revenues for Q2 were RMB 940.3 million, compared with RMB 1,024.6 million in the same period of 2025. The decrease was primarily driven by intensifying marketing competition. Our cost of revenues for Q2 was RMB 844.7 million, compared with RMB 901.9 million in the same period of 2025. The decrease was in line with the decline in revenues.

Speaker #2: Unless otherwise noted. Our revenues for the second quarter were $940.3 million compared with $1,024.6 million in the same period of 2025. The decrease was primarily driven by intensifying marketing competition.

Speaker #2: Our cost of revenues for the second quarter was $844.7 million, compared with $901.9 million in the same period of 2025. The decrease was in line with the decline in revenues.

Speaker #2: Our gross profit was $95.5 million in the second quarter, compared with $122.7 million in the same period of 2025, representing a gross profit margin of 10.2% compared with 12% in the prior-year quarter.

Le Tang: Our gross profit was CNY 95.5 million in the second quarter, compared with CNY 122.7 million in the same period of 2025, representing a gross profit margin of 10.2%, compared with 12% in the prior year quarter. Turning to operating expenses, our total operating expenses for the second quarter were CNY 88.3 million, representing a decrease of 14.6% from CNY 103.4 million in the same period of 2025. We consisted of CNY 36.6 million in selling and marketing expenses, CNY 37.9 million in general and administrative expenses, and CNY 13.7 million in research and development expenses. The decrease in operating expenses was primarily attributable to the reduction in advertising expenses, staff costs, and the share-based payment expenses. Our income from operations was CNY 7.3 million, compared with CNY 19.3 million in the same period of 2025.

Le Tang: Our gross profit was CNY 95.5 million in the Q2, compared with CNY 122.7 million in the same period of 2025, representing a gross profit margin of 10.2%, compared with 12% in the prior year quarter. Turning to operating expenses, our total operating expenses for the Q2 were CNY 88.3 million, representing a decrease of 14.6% from CNY 103.4 million in the same period of 2025.

Speaker #2: Turning to operating expenses, our total operating expenses for the second quarter were $88.3 million, representing a decrease of 14.6% from $103.4 million in the same period of 2025.

Speaker #2: We consisted of $36.6 million in selling and marketing expenses, $37.9 million in general and administrative expenses, and $13.7 million in research and development expenses.

Le Tang: We consisted of CNY 36.6 million in selling and marketing expenses, CNY 37.9 million in general and administrative expenses, and CNY 13.7 million in research and development expenses. The decrease in operating expenses was primarily attributable to the reduction in advertising expenses, staff costs, and the share-based payment expenses. Our income from operations was CNY 7.3 million, compared with CNY 19.3 million in the same period of 2025.

Speaker #2: The decrease in operating expenses was primarily attributable to the reduction in advertising expenses, staff costs, and share-based payment expenses. Our income from operations was $7.3 million, compared with $19.3 million in the same period of 2025.

Speaker #2: Excluding share-based compensation expenses, our non-GAAP income from operations was $10.8 million for the second quarter, compared with $31.9 million in the same period of 2025.

Le Tang: Excluding share-based compensation expenses, our non-GAAP income from operations was CNY 10.8 million for the second quarter, compared with CNY 31.9 million in the same period of 2025. Our net loss was CNY 34 million, compared with net income of CNY 53.5 million in the same period of 2025. The decrease was mainly due to CNY 41.7 million of losses from changes in fair value of long-term investments in the second quarter. Excluding changes in fair value of long-term investments and share-based compensation expenses, our non-GAAP net income was CNY 11.4 million, compared with CNY 45.6 million in the same period of 2025. Our cash position remained healthy with cash and cash equivalents, restricted cash, and short-term investments totaling CNY 853.4 million as of the second quarter end. We also carried out share repurchases under the extended buyback program approved in March.

Le Tang: Excluding share-based compensation expenses, our non-GAAP income from operations was CNY 10.8 million for the Q2, compared with CNY 31.9 million in the same period of 2025. Our net loss was CNY 34 million, compared with net income of CNY 53.5 million in the same period of 2025. The decrease was mainly due to CNY 41.7 million of losses from changes in fair value of long-term investments in the Q2.

Speaker #2: Our net loss was $34 million, compared with net income of $53.5 million in the same period of 2025. The decrease was mainly due to $41.7 million of losses from changes in fair value of long-term investments in the second quarter.

Le Tang: Excluding changes in fair value of long-term investments and share-based compensation expenses, our non-GAAP net income was CNY 11.4 million, compared with CNY 45.6 million in the same period of 2025. Our cash position remained healthy with cash and cash equivalents, restricted cash, and short-term investments totaling CNY 853.4 million as of the Q2 end. We also carried out share repurchases under the extended buyback program approved in March.

Speaker #2: Excluding changes in fair value of long-term investments and share-based compensation expenses, our non-GAAP net income was $11.4 million, compared with $45.6 million in the same period of 2025.

Speaker #2: Our cash position remained healthy, with cash and cash equivalents, restricted cash, and short-term investments totaling $853.4 million as of the second quarter end.

Speaker #2: We also carried out share repurchases under the extended buyback program approved in March. As of August 19th, we had repurchased a total of approximately 3.9 million ADS in the open market for an aggregate consideration of approximately $11.8 million. This underscores our confidence in the company's long-term value.

Le Tang: As of 19 August, we had repurchased a total of approximately 3.9 million ADS in the open market for an aggregated consideration of approximately $11.8 million USD. This underscores our confidence in the company's long-term value. As we move through the rest of 2026, we remain committed to disciplined execution and to the high-quality service that differentiates. We are confident that as AI becomes increasingly embedded across our operations, it will support a structural improvement in our operating expenses ratio over the long term, creating room for better profits margins ahead. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Speaker #2: As we moved through the rest of 2026, we remained committed to disciplined execution and to the high-quality service that differentiates us. We are confident that as AI becomes increasingly embedded across our operations, it will support a structural improvement in our operating expenses ratio over the long term.

Le Tang: As we move through the rest of 2026, we remain committed to disciplined execution and to the high-quality service that differentiates. We are confident that as AI becomes increasingly embedded across our operations, it will support a structural improvement in our operating expenses ratio over the long term, creating room for better profits margins ahead. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Speaker #2: Creating room for better profit margins ahead. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Speaker #1: Thank you. To ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. 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. Our first question comes from Gang Liu with CICC. Your line is now open.

Speaker #1: For the benefit of all participants on today's call, if you wish to ask your question, please immediately repeat your question in English. Our first question comes from Gongshen Liu with CICC.

Speaker #1: Your line is now open.

Gang Liu: Hi. Good evening, Xue Zheng and Tang Zheng. Can you hear me?

Speaker #3: Hi, good evening. Can you hear me?

Speaker #2: Yes, we're well.

Le Tang: Yes, we are well.

Speaker #3: Thank you for taking my question. This is Gongshen from CICC. I actually have two questions. I'll ask, yes.

Gang Liu: Thank you for taking my question. This is Gang Liu from CICC. I actually have two questions I will ask.

Le Tang: Hello?

Gang Liu: Yes?

Speaker #2: Yeah. Thank you, Gongshen. Can you repeat your questions? Thank you.

Le Tang: Yeah.

Gang Liu: Can you hear me?

Le Tang: Thank you, Gang Liu. Can you repeat your questions? Thank you.

Speaker #3: Okay. Yeah. My first question is about the anti-evolution trends in this industry, because we know in May, seven leading instant retailer players, including Samsung, signed the anti-evolution self-discipline convention, right?

Gang Liu: Okay. My first question is about the anti-involution trends about this industry, because we know in May, seven leading instant retailer players, including Shenzhou, signed the Hangzhou Anti-Involution Self-Discipline Convention, right? How do you interpret the broader industry trend from here? What impact, if any, have you seen on our FP and order volume, or will you view this as a pricing inflection point for the industry? First question. Thank you.

Speaker #3: How do you interpret the broader industry trend from here? And what impact, if any, have you seen on our FC and overall volume, or do you view this as the pricing inflection point for the industry?

Speaker #3: First question. Thank you.

Speaker #2: Yes, thank you for your questions. This is Luke. I will take your first question. On May 28, Flashbacks joined six other leading platforms in Hangzhou in sending an industry self-discipline convention.

Le Tang: Yes. Thank you for your questions. This is Luke. I will take your first questions. on 28 May, BingEx joined six other leading platforms in Hangzhou in signing an industry self-discipline convention covering marketing practices, merchant rights, rider protections, and governance. What the convention points toward is shifting the center of competition from price back to service itself, and directing more resources into creating incremental demand and improving conditions for merchants and riders. We see this as a healthy signal that the industry is maturing. For BingEx, this direction aligns closely with how we have operated for 12 years. Each Flash-Rider stays with one order from pickup to handout. Under this model, riders can give every delivery their full attention, and the rider experience and user experience have never come at each other's expense. They reinforce one another.

Speaker #2: Covering marketing practices, merchandise, rider protections, and governance. What the convention points toward is shifting the center of competition from price back to service itself.

Speaker #2: And they're directing more resources into creating incremental demand and improving conditions for merchants and riders. We see this as a healthy signal that the industry is maturing.

Le Tang: We see this as a healthy signal that the industry is maturing. For BingEx, this direction aligns closely with how we have operated for 12 years. Each Flash-Rider stays with one order from pickup to handout. Under this model, riders can give every delivery their full attention, and the rider experience and user experience have never come at each other's expense. They reinforce one another.

Speaker #2: For Flash Act, this direction aligns closely with how we have operated for 12 years. Each Flash rider stays with one order from pickup to handoff.

Speaker #2: Under this model, riders can give every delivery their full attention, and the rider experience and the user experience have never come at each other's expense.

Speaker #2: They reinforce one another. The convention moves the industry away from price wars and heavy, subsidy-driven traffic, refocusing competition on service policy, efficiency, and experience.

Le Tang: The convention moves the industry away from price wars and heavy subsidy-driven traffic, refocusing competition on service, quality, efficiency, and the experience. For a platform whose competitiveness rests on service quality and fulfillment certainty, that is a favorable environment for us. In Q2, our total order volume grew 8.9% quarter-over-quarter, supported by better capacity allocation, the continued expansion of our service scenarios, and new service formats. We welcome the industry's return to rational competition and we will keep investing along these lines. On pricing, our focus is on the longer-term competitive dynamics rather than short-term movements. We have always believed that the core competitive advantage in on-demand delivery is not low price, but where every order reaches the user reliably and safely. That is where our differentiation lies and where our long-term value comes from. Thank you. Waiting for your second question. Thank you.

Speaker #2: For a platform whose competitiveness rests on service quality and fulfillment certainty, that is a favorable environment for us. In the second quarter, our total order volume grew 8.9% quarter over quarter, supported by better capacity allocation, the continued expansion of our service scenarios, and new service formats.

Speaker #2: We welcome the industry's return to rational competition and will keep investing along these lines. On pricing, our focus is on the longer-term competitive dynamics rather than short-term movements.

Le Tang: On pricing, our focus is on the longer-term competitive dynamics rather than short-term movements. We have always believed that the core competitive advantage in on-demand delivery is not low price, but where every order reaches the user reliably and safely. That is where our differentiation lies and where our long-term value comes from. Thank you. Waiting for your second question. Thank you.

Speaker #2: We have always believed that the core competitive advantage in on-demand delivery is not low price, but ensuring every order reaches the user reliably and safely. That is where our differentiation lies, and where our long-term value comes from.

Speaker #2: Thank you. Waiting for your second question. Thank you.

Speaker #3: Okay, good to hear that. So my second question is about the low altitude. Could you give us an update on the growth of drone delivery order volume? You mentioned the total volume earlier.

Gang Liu: Okay, good to hear that. My second question is about the low altitude. Could you give us an update on the growth of drone delivery order volumes? As you mentioned the total volumes earlier, I just want to see the growth trend here. Also, your expansion roadmap beyond existing capacity, for example, beyond Hangzhou. Besides, combined these drones and AI deployment, do these efforts translate into visible per cost the segment level, and what is your path to a scalable breakeven? Thank you.

Speaker #3: I just want to see the growth trend here. And also, your expansion roadmap beyond the existing capacity—for example, beyond Hangzhou. Besides combining these drones and AI deployment, do these efforts translate into visible per-cost at the segment level, and what's your path to scalable break-even?

Speaker #3: Thank you.

Speaker #2: Okay, thank you for your question. This is Adam speaking. Let me take order volumes and user cases first, and then expansion and the economics.

Adam Xue: Okay. Thank you for your question. This is Adam speaking. Let me take order volumes and user cases first, and then expansion and the economics. In Q2, drone delivery order volume grew 169.3% quarter-over-quarter, and we now have 22 routes in operation, taking the business from single site trails into multi-route operations. In July, Hangzhou's first crossover route for low altitude on-demand delivery entered commercial operation with a 30-minute flight across the river. With a rider handoff at each end and a drone crossing in between, orders that took more than 40 minutes now arrive in little over 20, at the same price as a standard FlashEx order. On user cases, what we carry today is mostly medicine, urgent business documents, fresh food, and digital accessories, all time sensitive and relatively high in unit value.

Speaker #2: In the second quarter, drone delivery order volume grew 169.3% quarter over quarter, and we now have 22 routes in operation, taking the business from single-site trials into multi-route operations.

Speaker #2: In July, Hangzhou's first crossover route for low-altitude on-demand delivery entered commercial operation with a 30-minute flight across the river. With a rider handoff at each end and a drone crossing in between, orders that once took more than 40 minutes now arrive in a little over 20.

Adam Xue: With a rider handoff at each end and a drone crossing in between, orders that took more than 40 minutes now arrive in little over 20, at the same price as a standard FlashEx order. On user cases, what we carry today is mostly medicine, urgent business documents, fresh food, and digital accessories, all time sensitive and relatively high in unit value.

Speaker #2: At the same price as a standard Flash X order. On user cases, what we carry today is mostly medicine, urgent business documents, fresh food, and digital accessories—all time-sensitive and relatively high in unit value.

Speaker #2: Low altitudes show their value where ground capacity runs into geographic or traffic—crossing a river or hill, or a district line or road that backs up at peak hours.

Le Tang: Low altitude shows its value where ground capacity runs into geography or traffic, crossing a river, a hill, or a district line, or a road that backs up at peak hours. These happen to be categories where we are already strong, and this is close to what we already done. Our priorities at this stage are operationally safety, whether routes can be replicated, and whether the time advantage over ground delivery holds up consistently in the scenarios where it matters. We are confident the unit economics here will keep improving as route density rises, as daily order volume per route grows, and as we get more out of equipment and ground sites. The 169.3% growth in drone order volume this quarter also tells us demand is validating well. In terms of the next step on the low altitude business, our near-term focus is on refining the model in Hangzhou itself.

Speaker #2: These happen to be categories where we are already strong, and they sit close to what we already do. Already, our priorities at this stage are operational safety, whether rules can be replicated, and whether the time advantage over ground delivery holds up consistently in the scenarios where it matters.

Speaker #2: We are confident the unit economics here will keep improving as route density rises, as daily order volume for road growth increases, and as we get more auto equipment and ground sites. So, 169.3% growth in drone order volume in this quarter also tells us demand is validated well.

Le Tang: We are confident the unit economics here will keep improving as route density rises, as daily order volume per route grows, and as we get more out of equipment and ground sites. The 169.3% growth in drone order volume this quarter also tells us demand is validating well. In terms of the next step on the low altitude business, our near-term focus is on refining the model in Hangzhou itself.

Speaker #2: In terms of the next step on the low altitude business, our new team focus is on refining the model in Hangzhou itself. This business draws heavily on local airspace management, landing site resources, and the supporting industry base.

Adam Xue: This business draws heavily on local airspace management, landing site resources, and the supporting industry base. What we want first is a set of operating standards and a cost model built in Hangzhou that we can carry into other markets. As our route network continues to grow denser and operation experience builds, we are confident this model will travel well. On AI, our work in customer service, marketing, and regional operations lifted efficiency in those areas by around 30% in Q2, showing up in lower headcount requirements and shorter process cycles. The way we see AI is that it accumulates efficiency step by step as it becomes a more routine part of how organization works. Those gains keep on compounding, and we believe there is further room for our operation expense ratio to improve over the medium to long term, creating conditions for better margins ahead.

Speaker #2: So, what we want first is a set of operating standards and a cost model built in Hangzhou that we can carry into other markets. As all routes network where continues to grow denser and operational experience builds, we are confident this model will travel well.

Speaker #2: On AI, our work in customer service, marketing, and regional operations lifted efficiency in those areas by around 30% in the second quarter, showing up in lower headcount requirements and shorter process cycles.

Adam Xue: On AI, our work in customer service, marketing, and regional operations lifted efficiency in those areas by around 30% in Q2, showing up in lower headcount requirements and shorter process cycles. The way we see AI is that it accumulates efficiency step by step as it becomes a more routine part of how organization works. Those gains keep on compounding, and we believe there is further room for our operation expense ratio to improve over the medium to long term, creating conditions for better margins ahead.

Speaker #2: The VBC AI is such that it accumulates efficiency step by step as it becomes a more routine part of how the organization works. Those gains keep combining, and we believe there is further room for our operation expense ratio to improve over the medium to long term.

Speaker #2: We are creating conditions for better margins ahead. Thank you.

Le Tang: Thank you.

Speaker #1: Thank you. And that concludes the question-and-answer session. I will now turn the call over to Eden Fu for closing remarks.

Operator: Thank you. That concludes the question and answer session. I will now turn the call over to Yidan Fu for closing remarks.

Speaker #4: Thank you once again for joining BingEx second quarter 2026 financial result and business update conference call today. If you have any other further questions, please contact the IR team at BingEx or PSNT Financial Communications.

Yidan Fu: Thank you once again for joining BingEx Q2 2026 financial result 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 #4: Thank you, and have a great day.

Operator: This concludes today's conference. Thank you for your participation. You may now disconnect.