BingEx (NASDAQ:FLX) management said the company is leaning into service quality and operational refinement as competition in China’s on-demand delivery market remains intense, highlighting steady profitability improvements in 2025 alongside initiatives in AI and drone-enabled “low-altitude” logistics.
Management frames market shift toward service quality
Founder, Chairman, and CEO Adam Xue said the on-demand retail and local lifestyle services industry has evolved from prioritizing fulfillment speed to placing more emphasis on delivery safety and the overall service experience. Xue said this shift aligns with FlashEx’s on-demand dedicated courier model, which he described as well-positioned for “high quality, personalized fulfillment.”
Fourth-quarter and full-year results: revenue and margin improvement
Chief Financial Officer Luke Tang said fourth-quarter revenue totaled RMB 1 billion, flat year-over-year, while full-year 2025 revenue was RMB 4 billion, down from RMB 4.5 billion in 2024. Tang attributed the annual decline primarily to lower order volumes amid intensified competition.
Despite the revenue decline, Tang said gross margin improved. Gross profit in the fourth quarter was RMB 107.9 million versus RMB 102.9 million a year earlier, with gross margin rising 0.8 percentage points to 10.8%. For the full year, gross profit was RMB 469.1 million compared with RMB 490.6 million in 2024, and gross margin increased 0.8 percentage points to 11.8%.
Cost of revenues for the fourth quarter was RMB 893.4 million, down 3.5% year-over-year. For the full year, cost of revenues declined 11.4% to RMB 3.5 billion, which Tang said primarily aligned with lower revenues.
On profitability, management emphasized non-GAAP results. Tang said FlashEx achieved non-GAAP net income profitability for the third consecutive year, with the full-year 2025 non-GAAP net margin rising to 5% from 4.5% in 2024. Non-GAAP net income increased 107% year-over-year to RMB 41.6 million in the fourth quarter, while full-year non-GAAP net income totaled RMB 199.4 million.
Operating expenses in the fourth quarter totaled RMB 105 million, including RMB 52 million in selling and marketing, RMB 35 million in general and administrative, and RMB 18 million in R&D. Tang said the decline in operating expenses was mainly due to the immediate recognition of accumulated share-based compensation expenses in the fourth quarter of 2024 related to IPO conditions. Excluding share-based compensation, non-GAAP income from operations was RMB 10.5 million for the quarter, up 44% year-over-year, and RMB 92.7 million for the full year.
The company ended 2025 with RMB 951.6 million in cash and cash equivalents, restricted cash, and short-term investments, Tang said.
Order mix focus: electronics strength and cake delivery recovery
Xue said the company continued executing a refined-operations strategy in the fourth quarter, emphasizing targeted customer acquisition, smarter capacity allocation, improved service experience for high-value orders, and better fulfillment efficiency. He said these efforts supported a steady improvement in order mix and stronger engagement.
Management pointed to growth in mid-to-high value delivery orders, which Xue said reflected adoption by merchants with higher requirements for delivery speed and service quality. In the fourth quarter, Xue said demand for electronics delivery was “particularly strong,” with order volume up 17% year-over-year, noting the category typically carries higher average order value and supports gross margin.
Xue also said cake delivery—described as a core category—returned to growth in the fourth quarter, with order volume increasing by more than 5% year-over-year. He cited operational changes including redesigned dedicated cake delivery boxes to improve stability and shock resistance to reduce damage risk.
Beyond traditional delivery categories, Xue said the company is expanding penetration in “high-frequency services” such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery, aiming to become an on-demand service “entry point” in users’ daily lives.
Partnerships, merchant strategy, and rider standards
On merchant partnerships, Xue said FlashEx has expanded into new service scenarios, including a partnership with a consumer electronics rental platform to offer same-city instant rentals delivered via FlashEx’s courier network, with certain orders delivered within the same day.
Xue said merchant acquisition efforts use riders’ on-the-ground insights to identify high-potential merchants, while placing greater emphasis on developing high-quality merchants with long-term partnership value. He added that a tiered merchant management framework offers tailored services and resource support to high-frequency and high-value merchants, including customized fulfillment solutions, priority dispatch mechanisms, and dedicated customer support.
On the rider side, Xue said the company strengthened service standards through more systematic training and standardized procedures, upgrades to equipment, and efforts to improve service image, with a focus on professionalism, service attitude, and delivery safety.
AI deployment and drone logistics: pilots, division formation, and next steps
Management highlighted technology as a key lever for efficiency and service quality. Xue said the company deployed AI across customer service, operations, and R&D to improve response efficiency and reduce operating costs. He added that AI-assisted coding tools increased development efficiency by roughly 30% compared with 2024. In delivery operations, Xue said AI is used to analyze communications between riders and users to provide early warnings for potential service risks.
Both Xue and Tang described a goal of moving toward AI agent-based ordering, where users could describe delivery needs via voice and the system would interpret requests and complete order creation and dispatch.
In logistics innovation, Xue said FlashEx launched a pilot for low-altitude delivery in Hangzhou in June 2025 and formally established a low-altitude logistics division in the fourth quarter to advance a city-level drone delivery network. He said the network has entered real-world operations and can reduce delivery times in complex environments such as cross-river routes when coordinated with the rider network.
Xue said the initiative has entered a commercial validation stage, with more than 2,000 drone delivery orders completed since the pilot’s inception. Tang added that integrating AI with low-altitude logistics could support smarter capacity allocation, more precise order matching, and improved fulfillment efficiency.
Looking to 2026, Xue said competition will remain intense and that FlashEx will continue prioritizing refined operations and improvements in fulfillment standards, service quality, and user experience while advancing innovation across technology, rider operations, and the logistics network.
In the Q&A, management disclosed 63.2 million orders fulfilled in the fourth quarter of 2025 and 249.2 million orders for the full year. Xue said the company expects a “relatively steady” year-over-year outlook for average selling price (ASP) in 2026 across both merchant and individual user segments, and expects overall order volume to remain “relatively stable” compared with 2025.
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.
