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Good day, welcome to BingEx 2026 first quarter financial results conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Yidan Fu from Piacente Financial Communications. Please go ahead.

Thank you, operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. The non-GAAP financial measures we provide are for comparison purpose only. The definition of those measures and the reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the BingEx company's IR website at ir.ishansong.com. Furthermore, throughout the call, we're consistently using the company brand name, FlashEx, to refer to its publicly listed entity, BingEx Limited.

Joining us today from FlashEx senior management are Mr. Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer. Mr. Hongjian Yu, Co-Founder, Director, and Executive President. Mr. Luke Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Thank you, Yidan. Hello, everyone, and welcome to FlashEx first quarter 2026 earnings call. In the first quarter of 2026, the on-demand delivery industry continued to grow steadily, driven by rising user demand for high-quality, time-sensitive delivery services. At the same time, the competitive landscape continued to evolve. Against this backdrop, we made meaningful progress in both operational efficiency and business innovation. Most notably, we made new breakthroughs this quarter in opening up our technology ecosystem and real-world deployment of low-altitude logistics, creating new avenues for the platform's medium and long-term growth. In the first quarter, FlashEx fulfilled 57.9 million orders, delivering a stable performance amid a dynamic market environment that demonstrated the resilience of our business model. Today, the platform has 3.1 million registered Flash-Riders. Our average delivery time further improved to 25.7 minutes, reflecting our continued efforts to enhance user experience and service efficiency.

Turning to our financial performance, total revenues for the first quarter reached RMB 935.3 million, with a gross margin of 11.3%. Non-GAAP income from operations was RMB 21.6 million. As of the end of the first quarter, we held cash and cash equivalents, restricted cash, and short-term investments totaling RMB 859.1 million, maintaining a healthy financial position. On the merchant side, we continued to execute our tiered merchant management strategy in the first quarter, further improving service response efficiency and resource allocation. Among our core high-frequency categories, cake and flower merchants typically have stable, recurring business needs and lasting business relationships, making them the most predictable component of our revenue mix. In the first quarter, order volume from the cake category exceeded 15.4 million, achieving year-over-year growth despite a high comparison base.

To support this category, we continue to improve our fulfillment capabilities, including upgrading delivery box design, improving shock resistance standards, and strengthening rider handling protocols. All these efforts contributed to higher fulfillment quality and merchant satisfaction. Electronics delivery in the first quarter posted robust growth as well, with order volume up 15.9% year-over-year, maintaining strong momentum and becoming an important driver of order mix improvement. We continued to refine our service response standards for merchants in this key vertical during the quarter, deploying delivery resources ahead of key periods to ensure stable order fulfillment rates and delivery quality during peak seasons. A growing number of well-known companies in automotive services, premium retail, and consumer electronics have incorporated with FlashEx into their standard fulfillment channels, further strengthening our reputation as a trusted provider in the premium on-demand dedicated courier segment.

In terms of new scenario expansion, we continue to explore new service opportunities in the first quarter. Campus delivery is one example. Most campus delivery services currently stop at the campus entrance, falling short of users' last-mile on-demand delivery needs. At the same time, there are large numbers of students on campus who are looking for flexible part-time income. Building on this, FlashEx is exploring a model that combines our user network with on-campus students' resources to complete the full delivery chain from campus entrance to dormitories. On the individual user side, we continue to reinforce our positioning as an instant lifestyle assistant. In the first quarter, daily order volume remained steady across lifestyle services such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

As of these service categories continue to gain traction, FlashEx connection with users' daily life has deepened, gradually transforming the platform from a single-purpose delivery tool into an on-demand service entry point, covering a broader range of everyday needs. This helps strengthen user engagement and supports improvements in overall platform activity and user retention. On the technology and ecosystem front, in April, we officially open-sourced our core command line interface tool, becoming the first company in the intra-city on-demand delivery industry to do so. Through this tool, FlashEx has further standardized and API-enabled its delivery capabilities. Merchants can integrate our system with their own point-of-sale or order management system to automatically trigger delivery requests upon customer payment. Developers and enterprise clients can connect directly with FlashEx backend via command line to place orders, request pricing, and track shipments.

Leading AI agents, including Claude Code, Codex, and Cursor, can also invoke FlashEx services directly through this interface. This marks the first time that on-demand delivery capability has formally entered the AI workflow ecosystem at a standardized, composable, and API-accessible model. This advancement manifests what we have always envisioned, enabling ecosystem partners to access FlashEx service at lower cost while empowering our Flash-Riders to evolve beyond the traditional courier role to become a bridge between AI systems and physical reality. The initial open source really supports four core functions, price inquiry, order placement, order tracking, and order cancellation. They will continue to iterate and expand their capabilities, deepening the integration between on-demand delivery and the broader AI ecosystem.

We have also completed our quick app integration with the Huawei HarmonyOS ecosystem, allowing users to initiate delivery requests directly through conversational interactions on their devices without opening the FlashEx app. Additionally, we have fully opened our API interface to support major AI platforms in invoking FlashEx order placement capabilities through standardized integrations, further broadening access to our services. In terms of internal operational efficiency, AI tools are evolving from isolated productivity tools into systematic efficiency drivers at the organizational level. In customer service, AI can now independently handle the majority of the routine complaint types, significantly reducing the high contact required. The time needed to test and launch new service scenarios has been shortened from approximately two months to one to two weeks.

The onboarding process for new partners has also been fully automated through AI agents, bringing integration timelines down from over a week to under a day. In R&D, AI-assisted coding tools have improved overall development efficiency compared to last year. Taken together, these efficiency gains are delivering ongoing value across multiple operational functions, lowering the marginal cost of business expansion while ensuring service quality. In low-altitude logistics, we made significant progress this quarter. As many of you may have noticed, earlier this week, we announced an important development. FlashEx wholly owned subsidiaries have entered into a strategic investment partnership with Hangzhou Low-Altitude Industry Development, making FlashEx one of the first on-demand courier service providers in Hangzhou’s low-altitude economy sector to receive strategic institutional backing.

This partnership represents not only strong recognition from the capital markets, but also a meaningful endorsement of our real-time fulfillment capabilities and technological innovation. More importantly, it marks a major milestone in FlashEx expansion into autonomous delivery and low-altitude logistics as we accelerate the transition from the technology exploration to real-world deployment and skilled operation. After more than a decade of operating in China's on-demand delivery market, FlashEx has built a nationwide fulfillment network spanning nearly 300 cities and established a highly mature real-time delivery infrastructure. Looking ahead, low-altitude logistics represents a key strategic priority for both our technological advancement and long-term business expansion. Leveraging our industry-leading real-time fulfillment capabilities, a core operational strength that continue to set us apart, we are well-positioned to meet the standardized and high-efficiency operational requirements of drone delivery services.

At the same time, by integrating Hangzhou's local industry ecosystem and strategic resources, we are building a next-generation on-demand logistics model that combines rapid aerial transportation plus ground-based last-mile fulfillment, enabling seamless coordination between low-altitude and ground delivery networks. At present, our drone delivery initiative has moved into substantive commercial operations. In partnership with Hangzhou Low-Altitude Industry Ecosystem, we have established five takeoff and landing sites and launched 14 delivery routing covering key districts including Yuhang, Shangcheng, and Gongshu. In the first quarter, drone delivery order volume grew 157% quarter-over-quarter. To date, the project has completed approximately 3,500 paid orders and nearly 2,900 drone flights while maintaining a 100% safety record. Through real-world operations, the commercial viability of the business model has now been validated.

Under normal operating conditions, our Air FlashEx service has achieved delivery time approximately 20%-30% faster than traditional ground-based delivery services. Looking ahead, we will continue to drive innovation through technology and further invest in frontier areas such as intelligent dispatching, route optimization, and autonomous delivery. By deeply integrating our major ground fulfillment infrastructure with next generation low-altitude logistics technologies, we aim to further enhance delivery efficiency, broaden service capabilities, and expand the boundaries of our fulfillment network. On the rider side, we've continued to refine our training programs and service standards to ensure that every delivery brings users a high-quality experience. In the first quarter, we continued our Good Deed Flash Rider Recognition Program, selecting outstanding riders from the platform who proactively demonstrated social responsibility during the deliveries. These riders received both material rewards and public recognition, reinforcing their sense of professional pride and belonging.

We firmly believe that the sustainability and professionalism of our rider team is a cornerstone of our service quality. Looking ahead to the coming quarters, we will remain focused on three strategic priorities. First, continue to deepen the application of AI across FlashEx internal operations to further improve organizational efficiency. Second, accelerating the expansion and commercialization of low-altitude logistics by exploring more order types and scenarios suited to air-ground coordination. Third, continuing to strengthen high-value merchant services and user scenario coverage to drive further improvements in our order mix. As industry competition continue to intensify, the combination of operational efficiency and service quality remains the foundation of FlashEx' long-term competitive advantage.

We have always believed that a platform with genuine value serves multiple stakeholders, creating real convenience for users, providing Flash-Riders with stable and rewarding career opportunities, and contributing positively to the healthy development of the industry. This is how we define long-term value, and it remains the driving force behind FlashEx' continued progress. That concludes my remarks. Now, I will turn the call over to our CFO, Luke Tang. Thank you.

Thank you, Adam. Hello, everyone. This is Luke. I would like to walk you through our first quarter 2026 financial results. As the industry's competitive landscape continues to evolve, we have leveraged AI to enhance organizational efficiency and made progress in optimizing operational effectiveness. Our broader deployment of AI has contributed to an increase in operating margin in the first quarter. Before I begin, please note that all numbers are in renminbi, and all percentage changes are on year-over-year basis, unless otherwise noted. Our revenues for the first quarter reached RMB 935.3 million, compared to RMB 960.8 million in the same period of 2025. The year-over-year decline was primarily driven by intensifying market competition. Our cost of revenues for the first quarter were RMB 829.5 million, compared with RMB 834.1 million in the same period of 2025. The decrease was in line with the decline in revenues.

Our gross profit was RMB 105.8 million for the first quarter, compared with RMB 126.7 million in the same period of 2025. Gross profit margin was 11.3%, compared with 13.2% in the same period of 2025. Turning to operating expenses. Our total operating expenses for the first quarter were RMB 94.8 million, representing a decrease of 18.7% from RMB 116.67 million in the same period of 2025. They consisted of RMB 38.5 million in selling and marketing expenses, RMB 39.9 million in general and administrative expenses, and RMB 16.5 million in research and development expenses.

Our income from operations was RMB 11 million, compared with RMB 10 million in the same period of 2025, lifting our operating margin to 1.2% from 1% year-over-year. Excluding share-based compensation expenses our non-GAAP income from operations was RMB 21.6 million for the first quarter, compared with RMB 26.6 million in the same period of 2025.

Our non-GAAP net loss was RMB 11.1 million, compared with non-GAAP net income of RMB 49.6 million in the same period of 2025. Our cash position remains healthy, with cash and cash equivalents, restricted cash and short-term investments totaling RMB 859.1 million as of March 31st, 2026. As we move through 2026, we remain committed to disciplined execution and upholding our high-quality service advantages. Building on our achievements in AI deployments, we will further refine cost structures and control expenses to boost margins. By practicing prudent financial management and actively pursuing business innovation, we will capture emerging opportunities and leverage operational efficiency gains to deliver sustainable long-term value for all stakeholders. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Thank you. We will now begin the question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. We will now proceed to take questions from the line of Sifan Jiang of CICC. Please go ahead. Sifan, your line is open.

Okay. Thank you to management team for taking my questions. My first question is could you please share our first quarter order volume and ASP trends broken down by 2B and 2C segments? Given this year's deceleration in order volume growth with the food delivery sector, coupled with an increase in AOV, how should we interpret the implications of this trend for premium service providers like us? My second question is we have recently noted reports that we have received reinvestments from Hangzhou State Capital to expand into the low-altitude economy sector. Could you please outline the strategic direction, specific application scenarios, and current progress of this initiative? Thank you.

Thank you, Sifan, for your questions. This is Luke. I would like to answer your first question and may hand over your second questions to Adam. Let me first give you an overview of our first quarter performance and then share our perspective on what the recent shift in the food delivery sector may mean for FlashEx. In the first quarter, FlashEx fulfilled 57.9 million orders, maintaining solid performance amid intensifying industry competition and a dynamic market environment, which reflects the resilience of our on-demand dedicated courier model. At the same time, our average delivery time further improved to 25.7 minutes and our registered rider base reached 3.1 million, reflecting continued improvement in our fulfillment capabilities and the service experience. On the merchant side, we continued to execute our tiered merchants management strategy in the first quarter, with high-quality categories driving a continued order mix improvement.

A key category order volume exceeded 15.4 million for the quarter, achieving year-over-year growth despite a high comparison base. Electronics order volume grew 15.9% year-over-year, sustaining its strong momentum and serving an important driver of order mix improvements. At the same time, leading companies in automotive services, premium retail, and consumer electronics continue to adopt FlashEx as part of their standard fulfillment channels. Overall, KA merchants GMV contribution improved steadily year-over-year in the first quarter, and ASP held at a relatively stable, elevated level, further reinforcing our reputation in the premium on-demand delivery segment. On the individual user side, we continued to strengthen our positioning as an instant lifestyle assistant. In the first quarter, daily order volumes remained steady across lifestyle service categories, including assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery.

As these categories gain traction, FlashEx's connection with users' daily lives has deepened, and the platform is gradually evolving from a single-purpose urgent delivery tool into an on-demand service entry point, covering a broader range of everyday needs. Stepping back to the industry level, FlashEx and the food delivery platforms has always differed meaningfully in terms of user profiles, user cases, delivery efficiency, and the service experience. In our view, the broader return to the rational competition across the industry is a positive development, both for FlashEx and for the healthy development of the industry as a whole. For FlashEx specifically, as we deepen our refined operations for merchant clients, expand our channel reach, and cover new customer scenarios, the industries and the brands we serve, we continue to diversify alongside the steady growth in KA merchant GMV contribution.

At the same time, we are proactively positioning ourselves to capture these opportunities through technology. On one hand, by integrating AI capabilities more deeply to make FlashEx services more accessible for merchants and users. On the other, by developing low-altitude logistics to overcome geographic and traffic constraints, and continue improving fulfillment efficiency and the service experience. Overall, FlashEx will stay true to our value proposition, continuing to focus on high-value merchants, high-quality consumer scenarios, and emerging areas such as AI and low-altitude logistics to reinforce our long-term competitive advantage in the premium on-demand delivery segment. Now, we would like to please Adam to answer your second question.

Thank you for your question. For the second question, FlashEx has always placed great importance on emerging technologies and their applications in the industry and our service scenarios. This strategic investment represents another significant milestone following our deep integration of AI, and reflects not only capital market recognition, but also strong endorsement of our on-demand dedicated growth model, real-time fulfillment capabilities, and technological innovation. Let me walk you through the three dimensions you raised: Strategic direction, application scenarios, and current progress. Starting with the strategic direction, after more than a decade in intracity on-demand delivery, FlashEx has built a major ground-based fulfillment network spanning nearly 300 cities across China. We see low-altitude logistics as both a meaningful extension of our existing business and one of our priorities for technological advancement and medium to long-term growth.

Drawing on years of accumulated fulfillment capability and operational expertise, we are well-positioned to meet the standardized high-efficiency requirements of drone delivery. At the same time, by working with Hangzhou's local industry partners, we are exploring a next generation on-demand logistics model that combines rapid aerial transportation with ground-based last-mile delivery, progressively building a deeper coordination between low altitude and ground network. On application scenarios, FlashEx has already built strong fulfillment capabilities in high-value, time-sensitive categories such as cakes, fresh flowers, premium retail, and consumer electronics. These are precisely the scenarios where faster, more reliable, and more secure delivery matters most, and where drone delivery can demonstrate the clearest innovation value.

In addition, for situations involving cross-district routes, geographic barriers such as rivers or hills or heavy traffic congestion where ground delivery efficiency is limited, drone delivery can meaningfully shorten delivery times and improve fulfillment reliability, which aligns well with the needs of our existing premium on-demand delivery clients. On current progress, our drone delivery initiative has now entered substantive commercial operations. In partnership with Hangzhou Low-Altitude Industry Ecosystem, we have activated five takeoff and landing sites and launched 14 delivery routes covering key districts including Yuhang, Shangcheng, and Gongshu. In the first quarter, drone delivery order volume grew 157% quarter-over-quarter. As of the end of April, the project has completed approximately 3,500 paid orders and nearly 2,900 drone flights, maintaining a 100% safety record. The commercial model has been preliminarily validated.

Under normal operating conditions, our aerial delivery service achieves delivery times 20%-30% faster than the traditional ground-based services. Going forward, we will continue to drive innovation through technology, investing in areas such as intelligent dispatching, route optimization, and autonomous delivery. By deeply integrating our major ground delivery infrastructure with low-altitude logistics technology, we aim to further improve delivery efficiency and expand the boundaries of FlashEx service capability.

Thank you. I am showing no further questions, and that concludes the question and answer session. I will now turn the call over to Yidan Fu for closing remarks.

Thank you once again for joining BingEx first quarter 2026 financial results and business update conference call today. If you have any further questions, please contact the IR team at BingEx or Piacente Financial Communications. Thank you and have a great day.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Good day, and welcome to BingEx Fourth Quarter and Full Year 2025 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Yidan Fu from Piacente Financial Communications. Please go ahead.

Thank you, operator. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with the SEC. The non-GAAP financial measures we provide are for comparison purposes only. The definition of those measures and a reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the BingEx company's IR website at ir.ishansong.com. Furthermore, throughout the call, we will consistently use the company brand name FlashEx to refer to its publicly listed entity, BingEx Limited.

Joining us today from FlashEx senior management are Mr. Adam Xue, Founder, Chairman of the Board, and Chief Executive Officer. Mr. Hongjian Yu, Co-Founder, Director, and Executive President, and Mr. Luke Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Thank you. Hello, everyone. This is Adam. Thank you for joining FlashEx Fourth Quarter and Full Year 2025 Earnings Conference Call. 2025 was another year of growth for on-demand retail and local lifestyle services. In the past, the industry mainly focused on fulfillment speed. Today, users place greater emphasis on delivery safety and the overall service experience. This shift plays directly to FlashEx strength as our on-demand dedicated courier model is uniquely positioned for high quality, personalized fulfillment. Through continued operational refinement, we have further improved our service quality, enabling our platform to maintain robust resilience in highly competitive market environment. As of the end of 2025, FlashEx service network has expanded to 298 cities across China, with 31 million registered riders and 120 million registered users on the platform.

The continued expansion of our service network and user base has provided a solid foundation for further enhancing our service capabilities and user experience. We firmly believe that in on-demand delivery industry, a differential service experience is our core competitive advantage, and it will continue to serve as a key driver of our long-term growth. From a financial perspective, in the fourth quarter, the company reported total revenue of RMB 1 billion with a gross margin of 10.8%. Adjusted net profit increased by 107.1% year-over-year to RMB 41.6 million. For the full year of 2025, total revenue reached RMB 4 billion with a gross margin of 11.8%, and adjusted net profit was nearly RMB 200 million.

As of the end of 2025, the company held RMB 951.6 million in cash and cash equivalents. Overall, supported by continued optimization of our order mix and more refined subsidy strategies, our profitability continued to improve steadily. In the fourth quarter, we continued to execute our strategy centered on refined operations with a focus on optimizing our order mix and service quality. Through more targeted customer acquisition and smarter capacity allocation, we enhanced the service experience for high-value orders while further improving overall fulfillment efficiency. As these initiatives continues to take effect, our order mix has been steadily improving, supporting healthier growth and stronger user engagement. From an order mix perspective, the share of mid to high value delivery orders has been steadily increasing.

As more high quality merchants adopt FlashEx as reliable fulfillment channel, orders with higher requirements for delivery speed and service quality have continued to grow, leveraging FlashEx established service capabilities. In the fourth quarter of 2025, demand for electronics delivery was particularly strong, with order volume increasing by 17% year-over-year. This category typically carries a higher average order value, reinforcing our differentiated positioning in high quality delivery services and supporting the platform's gross margin. At the same time, we continued to deepen our focus on delivery scenarios where service experience matters most. As one of our core categories, cake delivery returns to growth in the fourth quarter, with order volume increasing by more than 5% year-over-year. For this category, we continued to refine various aspects of delivery process.

For example, we redesigned our dedicated cake delivery boxes to improve stability and shock resilience and resistance, further reducing the risk of product damage during delivery. We believe that by continuously enhancing the user experience through this operational improvement, FlashEx will further strengthen its reputation for high-quality service. In addition, we continued to explore on-demand local service scenarios by increasing our service penetration in high-frequency services such as assisted purchasing, parcel pickup, food pickup, gift delivery, and luggage delivery. We are making FlashEx available on-demand service entry point in the user's daily lives. On the merchant partnership front, we have continued to expand into new service scenarios. Recently, FlashEx partners with several industry players, including a consumer electronics rental platform, to launch a same-city instant rental offering through FlashEx courier network. Certain electronics rental orders can now be delivered within the same day.

These partnerships not only enhance the user experience, but also further integrate FlashEx service capabilities into a broader range of customer scenarios. On merchant acquisition, we continue to leverage our rider on-the-ground insights to identify high-potential merchants. In addition, the company is placing greater emphasis on developing high-quality merchants with long-term partnership value, expanding the merchant base while optimizing its overall structure. While continuing to expand our service offerings, we remain focused on improving overall order quality and deepening our partnerships with high-quality merchants. Through a tiered merchant management framework, we provide tailored services and resource support to high-frequency and high-value merchants, including customized fulfillment solutions, priority dispatch mechanisms, and dedicated customer support. These initiatives help our merchant partners achieve a more stable service experience and a higher order fulfillment rate. On the rider side, we strengthened our service standards in the fourth quarter.

Through a more systematic training framework and standardized service procedures, we continued to enhance riders' professionalism in fulfillment practices, service attitude, and delivery safety. We also upgraded their equipment and strengthened our service image, ensuring that every delivery brings users a more reliable and attentive service experience. In terms of innovation and infrastructure development, we are actively exploring new initiatives. In June 2025, FlashEx launched a pilot program for low-altitude delivery in Hangzhou. In the fourth quarter, we formally established a low-altitude logistics division to advance the development of a city-level drone delivery network, which has now entered the real-world operations. Through the coordination between drone delivery and our rider network, delivery times can be significantly reduced in complex environments, such as cross-river road routes.

The low-altitude initiative has now entered commercial validation stage, with over 2,000 drone delivery orders completed since the pilot inception, laying a solid foundation for broader large-scale deployment. As a low-altitude economy gradually emerged as a key direction in China's industry planning, FlashEx will continue to explore the applications of drone delivery with urban on-demand logistics systems in 2026, gradually expanding into additional scenarios suited for low-altitude delivery. On the technology front, FlashEx continue to explore new service models. Recently, we launched a quick access service entry on a major mobile operating system, allowing users to access our service directly from their devices without downloading the apps. As more devices join the ecosystem, this lightweight service model is expected to help FlashEx reach a broader user base and integrate on-demand delivery more seamlessly across more devices and platforms, creating new opportunities for user growth.

In 2025, AI became an important tool for improving our operational efficiency. We deployed AI across customer services, operations, and R&D, significantly improving response efficiency and reducing overall operating costs. In R&D, the introduction of AI-assisted coding tools increased development efficiency by roughly 30% compared to 2024. In delivery operations, we utilized AI to analyze the communication between riders and users, enabling early warnings for potential service risks and further enhancing service quality. Looking ahead, we will work with technology partners to explore more intelligent order placement methods for users. For instance, users could simply describe their delivery needs using voice, and the system will automatically interpret the request to complete the order creation and dispatch process.

We believe this type of AI agent-based interaction is poised to become an important trend for future on-demand local services, offering users a more convenient and efficient experience. Looking ahead to 2026, competition in the on-demand delivery industry will remain intense. FlashEx will continue to prioritize refined operations as its key core strategy, enhancing fulfillment standards, service quality, and user experience. At the same time, we will deepen our presence in on-demand delivery and diversified lifestyle service offerings, while advancing innovation across technology, rider operations, and logistics network. We believe that with our solid operational foundation and steadily improving service capabilities, FlashEx is well-positioned to earn the trust of our long-term users and create sustainable value as the industry evolves. That concludes my remarks. Now, I will turn the call over to our CFO, Luke Tang. Thank you.

Thank you, Adam. Hello, everyone, this is Luke. In 2025, our differentiated on-demand dedicated courier model and unique business positioning remained robust and resilient, demonstrated by our stable operations and profitability. We are delighted to see that our efforts in enhancing operational efficiency and leveraging technology innovation have yielded positive outcomes. Notably, we have achieved non-GAAP net income profitability for the third consecutive year. For the full year 2025, our non-GAAP net margin remained a healthy upward trend, rising to 5% from 4.5% in 2024. Now, let me walk you through our fourth quarter and full year 2025 financial results. Before I begin, please note that all numbers are in renminbi and all percentage changes are on year-over-year basis unless otherwise noted.

Our revenues for the fourth quarter amounted to RMB 1 billion, remained flat compared with the same period of 2024. For the full year 2025, total revenues reached RMB 4 billion compared with RMB 4.5 billion in 2024. The year-over-year decline primarily reflects lower order volumes amid intensified market competition. Our cost of revenues for the quarter was RMB 893.4 million, representing a decrease of 3.5% from the same period of 2024. For the full year 2025, cost of revenues decreased by 11.4% year-over-year to RMB 3.5 billion, primarily aligns with the decline in revenues. Our gross profits was RMB 107.9 million for the fourth quarter, compared with RMB 102.9 million in the same period of 2024.

Gross profit for the full year 2025 was RMB 469.1 million, compared with RMB 490.6 million in 2024. Our gross profit margin increased by 0.8 percentage points year-on-year for both the fourth quarter and full year 2025, rising to 10.8% and 11.8% respectively. Turning to operating expenses. Our total operating expenses for the fourth quarter were RMB 105 million, comprised of RMB 52 million in the selling and marketing expenses, RMB 35 million in general and administrative expenses. RMB 18 million in research and development expenses. The decrease in operating expenses was mainly due to the immediate recognition of accumulated share-based compensation expenses recorded in the fourth quarter of 2024, subject to our IPO conditions.

Excluding share-based compensation expenses, our non-GAAP income from operations was RMB 10.5 million, representing a year-over-year increase of 44% compared with the same period of 2024. Non-GAAP income from operations for the full year 2025 totaled RMB 92.7 million. Our non-GAAP net income surged 107% year-over-year to RMB 41.6 million for the fourth quarter. For the full year 2025, non-GAAP net income totaled RMB 199.4 million. Our cash position remained healthy, with cash and cash equivalents, restricted cash and short-term investments totaling RMB 951.6 million as of the last year end. As we move through 2026, we remain committed to reinforcing FlashEx's unique competitive advantage in high-quality service. Our resilient financial performance in 2025 reflects our continued focus on operational refinement.

As we enter a new phase of technological environment, innovation, and logistics market upgrading, we are confident in our ability to capture emerging opportunities and create long-term value. That concludes our prepared remarks. We would now like to open the floor to your questions. Operator, please go ahead.

Answer session. If you'd like to ask a question, please press star one one on your telephone and wait for your name to be announced. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. One moment for the first question. Our question comes from the line of Sifan Jiang from CICC. Please go ahead.

Thank you to management team for taking the questions, and congratulations on the strong quarter. I've got two questions here today. The first one is, could you please share our fourth quarter order volume and ASP trends broken down by B2B and B2C segments? What is our outlook for order volume trends this year, and what are the key drivers? My second question is, given the rapid development of AI technology at present, how will the management strategize to embrace AI? How will this boost our efficiency? Thank you.

Thank you, Sifan, for your question. I will answer the first question. This is Adam. My colleague, Luke, will answer the second question. For the first question, in the fourth quarter of 2025, we fulfilled 63.2 million orders. For the first year ended December 31, 2025, total fulfillment orders amounted to 249.2 million. As for ASP trends, we expect a relatively steady year-over-year outlook for 2026, both in the merchant and individual user segments, reflecting consistent demand for high-quality on-demand delivery services across both business and customer segments. On the merchant side, we continue to expand our merchant base, broadening our service reach and coverage.

On B2C side, we continued to deepen our focus on experience-oriented delivery scenarios, improving service quality and user experience while expanding into on-demand life-service scenarios, making FlashEx a more seamless part of customers' daily routines. Looking ahead to 2026, we expect overall order volume to remain relatively stable compared with 2025. Even in a highly competitive industry, our overall strategy remains consistent and will become even more focused and refined. With the integration of new AI technology, we are confident that FlashEx will maintain resilience in the market, achieving steady performance both in order volume and ASP. Thank you.

This is Luke. I will take your second question. For the second question, I think, FlashEx places a great importance on cutting-edge technologies, including AI and low-altitude logistics, recognizing their strategic value in on-demand delivery and local lifestyle services. We actively leverage these technologies as powerful drivers to enhance operational efficiency. It elevates our service quality and fuels business innovation. In 2025, we deployed AI across multiple areas, including customer service, operations management and dispatching, planning, and R&D, significantly improved response times and execution efficiency. In delivery operations, AI analyzes communications and service behaviors between riders and users, providing early warnings of potential risks and further safeguarding service quality.

Looking ahead, we will continue to explore AI agent-based intelligent interactions where user can simply describe their delivery needs via voice or text, and the system automatically handles order creation, dispatching, and fulfillment. This will greatly simplify the user experience, enhance its processing efficiency, and make delivery services more accurate and effective. At the same time, FlashEx is breaking new ground in the low-altitude logistics space. By integrating AI and the low-altitude logistics, FlashEx can achieve smarter capacity allocation, precise order matching, and highly efficient fulfillment while further enhancing the user experience and the service reliability. In June 2025, we launched a low-altitude pilot in Hangzhou, and in the fourth quarter, we established a dedicated low-altitude logistics division to build a city-level drone delivery network.

By coordinating drone operations with our rider network, we can significantly reduce transport times in complex environments such as cross river routes. As the government increasingly prioritize the low-altitude economy, we will continue in 2026 to explore drone delivery applications in diverse on-demand logistics scenarios, including high-value, time-sensitive, and geographical constrained deliveries. This integrated dual engine of AI innovation and business innovation positions FlashEx to remain resilient in a highly competitive market, and creates sustainable long-term growth opportunities and a differentiated competitive advantage for the company. Thank you. Thank you for your question.

The questions. There are no further questions on the line, and that concludes the Q&A session. I'll now turn the call over to Yidan Fu for closing remarks.

Thank you once again for joining BingEx's fourth quarter and full year 2025 financial results and business update conference call today. If you have any further questions, please contact the IR team at BingEx or Piacente Financial Communications. Thank you and have a good day.