BingEx Limited (FLX) Q3 2025 Earnings Call Transcript

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Overview

The earnings call reveals mixed sentiments: declining revenue and order volume due to competitive pressures, yet improved operational efficiency and profitability. Share repurchases are positive, but market competition and economic uncertainties pose risks. The Q&A highlights a stable expense ratio and strategic focus on service quality. Overall, the outlook is balanced, with no strong catalysts for significant stock price movement.

Key Financial Performance

Total Revenue RMB 1,005.4 million, compared to RMB 1,154.8 million in the same period of 2024, reflecting a year-over-year decline due to lower order volumes amid competitive pressures.

Gross Margin Held steady at 11%, with a gross profit of RMB 111.8 million compared to RMB 130.3 million in the same period of 2024, reflecting a decrease in gross profit due to lower revenues.

Non-GAAP Net Margin Expanded to 6.2% from 5% in the same period of last year, driven by refined operations and strengthened business positioning.

Non-GAAP Net Income RMB 62.6 million, representing an 8.6% increase compared with RMB 57.6 million in the same period of 2024, attributed to disciplined operations.

Cost of Revenues RMB 893.6 million, representing a decrease of 12.8% from the same period of 2024, in line with the decline in revenues and enhanced operational efficiency.

Operating Expenses RMB 97.7 million, broken down into RMB 42.9 million in selling and marketing expenses, RMB 37 million in general and administrative expenses, and RMB 17.7 million in research and development expenses.

Shareholders' Equity RMB 839.3 million as of third quarter end 2025, up from RMB 747.1 million at the end of 2024, reflecting growth in equity.

Cash Position RMB 877.9 million as of the end of the quarter, indicating a healthy financial position.

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Operating Highlights

Service Categories and Scenarios: Expanded service categories and scenarios, including shopping assistance, parcel pickup, meal pickup, gift delivery, and luggage delivery. Piloted on-site battery charging support for electronic vehicles.

Technology Integration: Implemented citywide low-altitude logistics delivery solution using drones, reaching commercial testing stage.

Merchant Partnerships: Broadened reach among merchant and individual customers, focusing on high-value, time-sensitive sectors like fresh flowers and cakes. Expanded in-store service pilot program in key cities.

Enterprise Clients: Focused on enterprise clients with long life cycles and high retention rates, targeting mutual growth through deeper collaboration.

Operational Efficiency: Improved dispatch algorithms, refined tiered management for merchant customers, and optimized response mechanisms.

Rider Engagement: Enhanced incentive programs and provided educational support to riders' families to boost motivation and sense of belonging.

Brand Differentiation: Strengthened brand recognition through premium delivery categories and unique on-demand courier model.

Sustainability and Growth: Aligned with national policies and trends to offer diverse services, aiming for both commercial success and social impact.

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Risk or Challenges

Market Competition: The company faces ongoing competitive pressures in the market, which have led to a year-over-year decline in revenues for the third quarter of 2025.

Order Volume Decline: Lower order volumes were reported, contributing to the revenue decline and reflecting challenges in maintaining market share.

Operational Efficiency: While operational efficiency has improved, the company still faces challenges in maintaining profitability amidst declining revenues.

Government Grants: A decrease in government grants was noted, which impacted other income for the quarter.

Economic Uncertainty: The company operates in a dynamic market environment, which may pose risks to its financial and operational stability.

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Guidance & Outlook

Future Growth and Service Expansion: FlashEx plans to deepen efforts across key service areas, boost service capabilities, and target the right user segments to grow its user base. The company will explore new service opportunities, strengthen partnerships, and enhance user experience to reinforce its position as a leading on-demand dedicated courier service provider.

Technology and Operational Efficiency: FlashEx is implementing a citywide low-altitude logistics delivery solution in partnership with the Yuhang District government in Hangzhou, which has reached the commercial testing stage. This initiative aims to combine drones with riders to improve delivery quality and efficiency, particularly in scenarios like heavy traffic.

Enterprise Client Strategy: The company is focusing on enterprise clients, which offer long life cycles, high retention rates, and steady service needs. FlashEx aims to expand its user base, reach more industries, and penetrate new service scenarios through deeper collaboration with enterprise clients.

Market Trends and Policy Alignment: FlashEx will actively align with national policies and current trends to offer a more diverse range of services, aiming to boost user satisfaction and achieve both commercial success and social impact.

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Shareholder Return Plan

Share Repurchase: The company has repurchased approximately 1.6 million ADS in aggregate as of November 18, 2025, demonstrating its commitment to enhancing shareholder value.

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Key Q&A

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?

A:The scaling back of subsidies and regulatory standardization in the food delivery industry are shifting the competitive focus from lower price to better service, fostering a more stable market environment. FlashEx is leveraging its value proposition of on-demand dedicated courier services. Users are increasingly willing to pay for reliable timeliness, trust, and quality of service. The company is investing in expanding service scenarios, refining user experience, and enhancing collaboration with merchant clients to increase order frequency. Operational efficiency and rider support systems are being optimized. In Q3, the average delivery time was 26 minutes, and order volume showed resilience with a year-over-year ASP increase. Looking ahead, FlashEx plans to deepen scenario penetration, expand the user base, and increase merchant order frequency for sustainable growth.

Q:What is the management's outlook on the trend and potential for future reduction in the company's expense ratio?

A:The company's expense ratio has been on a stable and gradually declining trajectory due to refined operations and efficiency enhancements. New user acquisition costs have been effectively lowered, and merchant acquisition has been diversified through rider identification of new stores and deep collaboration with core merchants. Enterprise clients' private domain traffic has been leveraged to increase brand reach. Management believes there is room for further optimization of the expense ratio with revenue growth, improved client structure, and operational strategy upgrades. The company aims to maintain strategic investments while optimizing costs to achieve stronger operating leverage as market competition stabilizes.

Q:Review of Unclear Management Responses

A:None of the questions were avoided or lacked clarity. Management provided detailed and direct responses to all questions.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

FLX Transcript

BingEx Limited (FLX) Q3 2025 Earnings Call Transcript

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