BingEx Ltd. Q3 FY2025 earnings call

• FlashEx enhanced its unique on-demand dedicated career model, expanded service categories and scenarios, deepened user insights, and improved dispatch algorithms. - Adopted a refined tiered management approach for merchant customers, introduced a VIP support team for high-frequency merchants and a membership program, and expanded merchant partnerships in sensitive categories like fresh flowers and cakes. - Focused on individual users, expanded service scenarios in the FlashEx APP, explored new needs like electronic vehicle battery charging support, and added a community section to enhance user engagement. - Teamed up with the Yuhang District government in Hangzhou for a citywide low-altitude logistics delivery solution in the commercial testing stage. - Enhanced rider incentive programs and provided educational support to riders' families.

In the third quarter of 2025, FlashEx recorded total revenue of RMB 1,005.4 million. The gross profit was RMB 111.8 million, with a gross profit margin of 11.1%. Adjusted net profit reached RMB 62.6 million, representing an 8.6% increase year-over-year. Cash and cash equivalents, restricted cash and short-term investments totaled RMB 877.9 million as of the end of the third quarter. The on-demand dedicated courier model showed strong resilience, with the gross margin holding steady at 11% and non-GAAP net margin expanding to 6.2% from 5% in the same period of the previous year. Shareholders' equity grew to RMB 839.3 million as of the end of the third quarter, up from RMB 747.1 million at the end of 2024.

• In the fourth quarter of 2025, FlashEx will focus on steady growth in core business, refine operations across the platform, deepen efforts in key service areas, explore new service opportunities, and strengthen partnerships to enhance user experience. - Looking ahead to 2026, will continue to amplify time efficiency advantage, deepen scenario penetration, expand user base, and increase order frequency from merchants through collaborative management model to drive long-term sustainable growth.

• Actual events or results could differ materially from predictions due to a number of risks and uncertainties, including those mentioned in the most recent filings with the SEC.

Q: Could you please share our third quarter order volume and ASP trends broken down by 2B and 2C segments? Given the subsidy rollbacks of food delivery and colder weather in the fourth quarter, have these factors had a measurable impact on order growth? Finally, what is our outlook for order volume trends next year? And what are the key drivers? And my second question is, what is the management's outlook on the trend and potential for future reduction in the company's expense ratio?

A: For the first part, scaling back of subsidies and regulatory standardization in food delivery shift competitive focus to better service, FlashEx leverages differentiated value proposition, strengthens instant life cycle assistant positioning, enhances merchant collaboration, optimizes operations and rider training, with overall order volume showing resilience and ASP up year-over-year. For the fourth quarter and next year, continue to amplify time efficiency advantage, deepen scenario penetration, expand user base. On expense ratio, overall expense ratio has been on stable and gradually declining trajectory driven by refined operations and efficiency enhancements, with room for further optimization with revenue growth and operational strategy upgrades, expecting expense ratio to trend downward in controlled manner while maintaining strategic investments