BingEx NASDAQ: FLX, which operates under the FlashEx brand, reported second-quarter revenue of CNY 940.3 million, down from CNY 1.02 billion a year earlier, as management cited intensifying marketing competition. The company posted a net loss of CNY 34 million, compared with net income of CNY 53.5 million in the prior-year period, primarily due to CNY 41.7 million in fair-value losses on long-term investments.
On a non-GAAP basis, excluding investment fair-value changes and share-based compensation, FlashEx reported net income of CNY 11.4 million, down from CNY 45.6 million a year earlier. Non-GAAP income from operations was CNY 10.8 million, compared with CNY 31.9 million in the 2025 second quarter.
Orders Rise as Delivery Times Improve
Founder, Chairman and Chief Executive Officer Adam Xue said total order volume increased 8.9% sequentially in the second quarter, while average delivery time improved to 25.3 minutes from 25.7 minutes in the first quarter.
FlashEx ended the quarter with 3.23 million registered Flash-Riders, service coverage in 299 cities and 124 million registered users. Registered users rose by 4 million from the end of the first quarter, according to Xue.
Order growth was spread across multiple categories. Fresh-flower order volume increased 29.2% from the prior quarter, while food, cakes and electronics posted growth both year over year and sequentially. Xue said the broader category mix reduced the company’s dependence on any single delivery category.
The company also highlighted growth in user services beyond traditional item delivery. Sequential order-volume gains included 37.5% for luggage delivery, 25% for food pickup, 7.2% for parcel pickup and 6.7% for assisted purchasing.
FlashEx recently introduced round-trip orders, which combine delivery, waiting time and a return trip in a single request handled by the same rider. Xue cited document and contract signing as examples of uses for the service.
Merchant and Enterprise Client Expansion
Newly signed merchants increased 18% from the first quarter, while new enterprise-client signings rose 53.1% sequentially. Management said it has adjusted its sales-team assessment framework and created a separate effort focused on key enterprise accounts, which typically have longer sales cycles and more complex purchasing decisions.
Executive President Hongjian Yu was listed among the call participants, though he did not deliver prepared remarks. Xue said enterprise delivery demand can include inventory transfers between stores, delivery of client documents and urgent dispatch of after-sales parts. Such activity may create more continuous demand and longer customer relationships, he said.
Margins Decline, While Operating Expenses Fall
Cost of revenue declined to CNY 844.7 million from CNY 901.9 million a year earlier, broadly in line with the revenue decline. Gross profit fell to CNY 95.5 million from CNY 122.7 million, and gross margin narrowed to 10.2% from 12%.
Total operating expenses decreased 14.6% to CNY 88.3 million. The company reported CNY 36.6 million in selling and marketing expense, CNY 37.9 million in general and administrative expense, and CNY 13.7 million in research and development expense. Chief Financial Officer Luke Tang attributed the decrease primarily to lower advertising expenses, staff costs and share-based payment expenses.
Income from operations was CNY 7.3 million, down from CNY 19.3 million in the prior-year quarter. FlashEx held CNY 853.4 million in cash and cash equivalents, restricted cash and short-term investments at quarter-end.
The company also continued its share repurchase program. As of Aug. 19, FlashEx had repurchased approximately 3.9 million American depositary shares in the open market for an aggregate consideration of about $11.8 million.
AI and Drone Delivery Initiatives
Management said it is expanding the use of artificial intelligence in customer service, marketing and regional operations. In customer service, FlashEx said its AI system independently handles 85% of covered scenarios, including routine inquiries and complaints. The company said AI tools reduced the time required to model capacity plans for new-city launches and holiday demand peaks from several days to several hours.
Xue said operating efficiency improved by roughly 30% across the areas where the company deployed AI during the quarter. Tang said the company expects broader AI adoption to support a structural improvement in its operating-expense ratio over the medium to long term.
FlashEx also continued to develop low-altitude logistics operations. Drone-delivery order volume rose 169.3% sequentially, and the company had 22 routes in operation at the end of the second quarter. In July, a cross-river on-demand delivery route in Hangzhou entered commercial operation. Management said the route uses riders at each endpoint and a drone for the river crossing, reducing end-to-end delivery times for certain orders from more than 40 minutes to a little over 20 minutes.
The company said drone deliveries have primarily included medicine, urgent business documents, fresh food and digital accessories. Xue said FlashEx’s near-term priority is to refine its operating standards and cost model in Hangzhou before expanding the approach to other markets.
During the question-and-answer session, Tang said FlashEx viewed an industry self-discipline convention signed in Hangzhou by seven leading platforms as a positive development. The agreement covered marketing practices, merchant rights, rider protections and governance. Tang said the convention could shift competition away from price wars and subsidies toward service quality, efficiency and fulfillment reliability.
About BingEx (NASDAQ:FLX)
BingEx Limited, through its subsidiaries, provides on-demand courier services under the FlashEx brand name in the People's Republic of China. The company offers Flash-Riders as service providers. It serves individual and business customers, including local retailers, restaurants, and logistics players through its mobile platform and website. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
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