• Fourth Quarter Revenue: RMB1 billion.
• Full-Year Revenue: RMB4.5 billion.
• Fourth Quarter Gross Margin: 10%, a 1.4-percentage-point increase year-on-year.
• Full-Year Gross Margin Increase: 2.3 percentage points.
• Fourth Quarter Non-GAAP Net Profit: RMB20 million.
• Full-Year Non-GAAP Net Profit: RMB201.3 million, an 82% increase year-over-year.
• Fourth Quarter Gross Profit: RMB102.9 million.
• Full-Year Gross Profit: RMB490.6 million, a 24.3% increase year-over-year.
• Fourth Quarter Operating Expenses: RMB255.6 million.
• Fourth Quarter Non-GAAP Income from Operations: RMB7.3 million.
• Full-Year Non-GAAP Income from Operations: RMB134.3 million, up from RMB10.6 million in 2023.
• Cash and Cash Equivalents: RMB793 million as of December 31, 2024.
• Number of Orders Fulfilled in 2024: 277 million.
• Service Expansion: 295 cities across China.

• Warning! GuruFocus has detected 2 Warning Sign with FLX.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BingEx Ltd (NASDAQ:FLX) recorded a total revenue of RMB1 billion in the fourth quarter, with a gross margin increase of 1.4 percentage points year-on-year.
• The company achieved an 82% surge in non-GAAP net profit for the full year compared to the previous year.
• BingEx Ltd (NASDAQ:FLX) became China's number one on-demand dedicated courier service brand for 10 consecutive years.
• The company expanded its service to 295 cities across China, supported by a network of 2.8 million registered riders and 100 million users.
• BingEx Ltd (NASDAQ:FLX) successfully debuted on Nasdaq, underscoring market confidence in its strategic positioning and industry leadership.

Negative Points

• The on-demand delivery market is increasingly competitive, with numerous industry players expanding into the sector.
• Operating expenses increased due to the immediate recognition of accumulated share-based compensation expenses subject to IPO conditions.
• Other income decreased primarily due to a lower amount of government grants.
• The company faces challenges in maintaining its competitive edge amid the rapid rise of emerging e-commerce formats.
• There is ongoing pressure to enhance service quality and efficiency to meet evolving consumer demands and market dynamics.

Q & A Highlights

Q: Hi, this is Jessie Xu from Deutsche Bank. Can you provide insights on the macro environment and any changes in your operating environment year-to-date? Also, what is your outlook for 2025 in terms of order volume, revenue, or margins, and what will be the key growth drivers? A: Thank you, Jessie. This is Adam Xue. Recent government initiatives have bolstered consumer confidence, leading to increased on-demand delivery volumes. The rise of e-commerce formats like live streaming has further fueled market growth. For 2025, we plan to optimize operational processes using big data analytics and enhance service quality through DeepSeek integration. Our category-driven strategy will focus on addressing storage and transportation challenges, aiming to create a differentiated experience for users.

Q: Hello, I'm Susan Jiang from CICC. What is your outlook on industry demand for 2025, and how do you assess the competitive landscape? Additionally, what is your stance on providing social insurance for riders? A: Thank you, Susan. Demand growth remains strong, supported by policy signals and e-commerce penetration. The competitive landscape will remain intense, but leading companies focusing on quality and customer experience will maintain an advantage. Regarding social insurance, FlashEx is committed to safeguarding riders' rights and has established facilities to support their welfare. We are actively involved in initiatives to enhance rider safety and career development.

Q: Can you elaborate on how FlashEx plans to enhance operational efficiency and service quality in 2025? A: We will leverage big data analytics to optimize order matching and delivery routes, improving response times and operational performance. By integrating DeepSeek into our customer service system, we aim to enhance service quality and user engagement. Our focus will be on a category-driven strategy, addressing specific logistics challenges to provide a differentiated fulfillment experience.

Q: How does FlashEx plan to address the evolving needs of consumers and business clients in the on-demand delivery market? A: Consumers are increasingly emphasizing delivery timeliness and personalization. We will focus on providing high-quality, reliable services, especially for specialized sectors like florists and high-end restaurants. Our tailored solutions will include optimized packaging and specialized transportation to meet unique requirements, enhancing customer satisfaction and brand reputation.

Q: What role does digital transformation play in FlashEx's strategy, and how does it impact your competitive position? A: Digital transformation is crucial for improving efficiency and service quality. We have deployed the DeepSeek system and developed algorithms to enhance order matching precision. Our upgraded customer system infrastructure reduces response times and operational costs. These advancements strengthen our market position and long-term competitive edge.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.