BingEx Limited Announces Third Quarter 2024 Financial Results
Rhea-AI Summary
BingEx (Nasdaq: FLX) reported its Q3 2024 financial results, showing revenues of RMB1,154.8 million (US$164.6 million). The company achieved a 20.9% year-over-year increase in gross profit to RMB130.3 million, with gross margin improving to 11.3% from 9.0%. Operating income reached RMB46.2 million with a 4.0% margin. For the nine months ended September 30, 2024, revenues grew 3.7% year-over-year to RMB3,439.3 million, with net income increasing 91.6% to RMB147.5 million. The company fulfilled 211.4 million orders during this period, representing a 7.1% increase year-over-year.
Positive
- Gross profit increased 20.9% YoY with margin improvement to 11.3% from 9.0%
- Nine-month net income grew 91.6% YoY to RMB147.5 million
- Order fulfillment increased 7.1% YoY to 211.4 million
- Operating income turned positive at RMB126.9 million for nine months vs. loss last year
- Revenue grew 3.7% YoY for the nine-month period
Negative
- Q3 revenues decreased YoY from RMB1,194.3 million to RMB1,154.8 million
- Net income declined YoY from RMB35.0 million to RMB23.8 million in Q3
- Net loss attributable to shareholders increased to RMB13.4 million from RMB2.6 million
News Market Reaction – FLX
On the day this news was published, FLX declined 1.82%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, Nov. 27, 2024 (GLOBE NEWSWIRE) -- BingEx Limited (“BingEx” or the “Company”) (Nasdaq: FLX), a leading on-demand dedicated courier service provider in China (branded as “FlashEx”), today announced its unaudited financial results for the third quarter ended September 30, 2024.
Third Quarter and Nine Months 2024 Highlights:
- Revenues were RMB1,154.8 million (US
$164.6 million ) in the third quarter of 2024. For the nine months ended September 30, 2024, revenues were RMB3,439.3 million (US$490.1 million ), representing an increase of3.7% year-over-year. - Gross profit was RMB130.3 million (US
$18.6 million ) in the third quarter of 2024, representing an increase of20.9% year-over-year. Gross profit margin reached11.3% , improving from9.0% in the same period last year. For the nine months ended September 30, 2024, gross profit was RMB387.6 million (US$55.2 million ), representing an increase of33.4% year-over-year. - Income from operations was RMB46.2 million (US
$6.6 million ) in the third quarter of 2024, operating margin was4.0% . For the nine months ended September 30, 2024, income from operations was RMB126.9 million (US$18.1 million ), accounting for3.7% of revenues, realizing a remarkable improvement in profitability compared with a loss from operations of RMB1.8 million in the same period last year. - Net income was RMB23.8 million (US
$3.4 million ) in the third quarter of 2024, net income margin was2.1% . For the nine months ended September 30, 2024, net income was RMB147.5 million (US$21.0 million ), representing an increase of91.6% year-over-year. Net income margin was4.3% , compared with2.3% in the same period last year. - Non-GAAP net income1 was RMB57.6 million (US
$8.2 million ) in the third quarter of 2024, Non-GAAP net income margin was5.0% . For the nine months ended September 30, 2024, Non-GAAP net income was RMB181.2 million (US$25.8 million ), Non-GAAP net income margin was5.3% . - The number of orders fulfilled for the nine months ended September 30, 2024 was 211.4 million, representing an increase of
7.1% year-over-year, with the fulfilled orders in the third quarter contributed 73.3 million.
Mr. Adam Xue, Founder, Chairman, and Chief Executive Officer, commented, “In the third quarter of 2024, BingEx demonstrated resilience in a competitive market, achieving a year-over-year growth in gross profit and a significant improvement in operational efficiency. Our strong focus on enhancing service quality and expanding our delivery network has allowed us to fulfill over 211 million orders, reaffirming our commitment to providing exceptional on-demand courier services. As we continue to innovate and adapt, we are confident in our ability to capture new growth opportunities and deliver greater value to our customers and stakeholders.”
“BingEx’s financial results for the third quarter of 2024 reflect our ongoing focus on disciplined execution and cost management,” said Mr. Luke Tang, Chief Financial Officer of BingEx. “We achieved a significant
Third Quarter 2024 Financial Results
Revenues were RMB1,154.8 million (US
Cost of revenues was RMB1,024.5 million (US
Gross profit was RMB130.3 million (US
Total operating expenses were RMB84.2 million (US
Selling and marketing expenses were RMB43.9 million (US
General and administrative expenses were RMB18.1 million (US
Research and development expenses were RMB22.2 million (US
Income from operations was RMB46.2 million (US
Changes in fair value of long-term investments were RMB33.8 million (US
Other income was RMB5.8 million (US
Net income was RMB23.8 million (US
Non-GAAP net income1 was RMB57.6 million (US
Net loss attributable to ordinary shareholders was RMB13.4 million (US
Basic and diluted net loss per ordinary share. Basic and diluted net loss per share was RMB0.19 (US
Adoption of 2024 Share Incentive Plan
In order to provide incentives to our personnel, the Company’s board of directors has approved the adopt of a 2024 Share Incentive Plan (the “2024 Plan”). Under the 2024 Plan, the maximum aggregate number of Class A ordinary shares that may be issued pursuant to the awards is initially 10,669,486, plus an annual increase on the first calendar day of each fiscal year of the Company during the term of the plan commencing with the fiscal year beginning January 1, 2025, by the lower of (i) an amount equal to
1 Non-GAAP net income and Non-GAAP net income margin are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Reconciliations of GAAP and Non-GAAP Results.”
Conference Call
The Company will host an earnings conference call on Wednesday, November 27, 2024 at 8:00PM Beijing Time (7:00AM U.S. Eastern Time) to discuss the results.
Participants are required to pre-register for the conference call at:
https://register.vevent.com/register/BIe9d056d0687d428688467915cc4980b1
Upon registration, participants will receive an email containing participant dial-in numbers and a personal PIN to join the conference call.
A live webcast of the conference call will be available on the Company’s investor relations website at http://ir.ishansong.com, and a replay of the webcast will be available following the session.
About BingEx Limited
BingEx Limited (Nasdaq: FLX) is a pioneer in China in providing on-demand dedicated courier services for individual and business customers with superior time certainty, delivery safety and service quality. The company brands its services as “FlashEx,” or “闪送”. FlashEx has become synonymous with on-demand dedicated courier services in China. With a mission to make people’s lives better through its services, BingEx remains dedicated to consistently providing a superior customer experience and offering a unique value proposition to all participants in its business.
For more information, please visit: http://ir.ishansong.com.
Use of Non-GAAP Financial Measures
To supplement our financial results presented in accordance with U.S. GAAP, we use Non-GAAP financial measures, namely Non-GAAP net income and non-GAAP net income margin, as supplemental measures to evaluate our operating results and make financial and operational decision. Non-GAAP net income represents net income excluding changes in fair value of long-term investments. Non-GAAP net income margin is equal to Non-GAAP net income divided by revenues.
By excluding the impact of changes in fair value of long-term investments, which are non-cash charges, we believe that Non-GAAP financial measures help identify underlying trends in our business that could otherwise be distorted by the effect of certain earnings or losses that we include in results based on U.S. GAAP. We believe that Non-GAAP financial measures provide useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allow for greater visibility into key metrics used by our management in its financial and operational decision-making.
Our Non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of Non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
Reconciliations of our Non-GAAP results to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the Non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0176 to US
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, these forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Investor Relations Contact
In China:
BingEx Limited
Investor Relations
E-mail: ir@ishansong.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: FlashEx@thepiacentegroup.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: FlashEx@thepiacentegroup.com
| BINGEX LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for number of shares and per share data) | |||||||||||
| December 31, | September 30, | ||||||||||
| 2023 | 2024 | ||||||||||
| RMB | RMB | USD | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 699,391 | 517,406 | 73,730 | ||||||||
| Short-term investments | 150,699 | — | — | ||||||||
| Accounts receivable | 12,115 | 17,199 | 2,451 | ||||||||
| Prepayments and other current assets | 58,119 | 65,677 | 9,361 | ||||||||
| Total current assets | 920,324 | 600,282 | 85,542 | ||||||||
| Non-current assets | |||||||||||
| Long-term investments | — | 259,819 | 37,024 | ||||||||
| Property and equipment, net | 5,544 | 3,867 | 551 | ||||||||
| Operating lease right-of-use assets | 59,852 | 47,814 | 6,813 | ||||||||
| Other non-current assets | 14,950 | 15,056 | 2,145 | ||||||||
| Total non-current assets | 80,346 | 326,556 | 46,533 | ||||||||
| Total assets | 1,000,670 | 926,838 | 132,075 | ||||||||
| LIABILITIES | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | 339,832 | 216,119 | 30,797 | ||||||||
| Deferred revenue | 51,945 | 60,388 | 8,605 | ||||||||
| Operating lease liabilities, current | 12,346 | 13,509 | 1,925 | ||||||||
| Accrued expenses and other current liabilities | 249,329 | 163,383 | 23,282 | ||||||||
| Total current liabilities | 653,452 | 453,399 | 64,609 | ||||||||
| Non-current liabilities | |||||||||||
| Operating lease liabilities, non-current | 45,360 | 32,355 | 4,611 | ||||||||
| Total non-current liabilities | 45,360 | 32,355 | 4,611 | ||||||||
| Total liabilities | 698,812 | 485,754 | 69,220 | ||||||||
| Mezzanine equity | 2,733,560 | 2,815,884 | 401,261 | ||||||||
| Shareholders’ deficit | (2,431,702 | ) | (2,374,800 | ) | (338,406 | ) | |||||
| Total liabilities, mezzanine equity and shareholders’ deficit | 1,000,670 | 926,838 | 132,075 | ||||||||
| BINGEX LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for number of shares and per share data) | |||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Revenues | 1,194,276 | 1,154,788 | 164,556 | 3,316,495 | 3,439,284 | 490,094 | |||||||
| Cost of revenues | (1,086,434 | ) | (1,024,457 | ) | (145,984 | ) | (3,025,814 | ) | (3,051,636 | ) | (434,855 | ) | |
| Gross Profit | 107,842 | 130,331 | 18,572 | 290,681 | 387,648 | 55,239 | |||||||
| Operating expenses: | |||||||||||||
| Selling and marketing expenses | (43,518 | ) | (43,931 | ) | (6,260 | ) | (141,568 | ) | (133,669 | ) | (19,048 | ) | |
| General and administrative expenses | (26,969 | ) | (18,058 | ) | (2,573 | ) | (79,399 | ) | (63,563 | ) | (9,058 | ) | |
| Research and development expenses | (20,750 | ) | (22,171 | ) | (3,159 | ) | (71,480 | ) | (63,477 | ) | (9,045 | ) | |
| Total operating expenses | (91,237 | ) | (84,160 | ) | (11,992 | ) | (292,447 | ) | (260,709 | ) | (37,151 | ) | |
| Income (loss) from operations | 16,605 | 46,171 | 6,580 | (1,766 | ) | 126,939 | 18,088 | ||||||
| Interest income | 5,060 | 4,636 | 661 | 15,048 | 16,535 | 2,356 | |||||||
| Changes in fair value of long-term investments | — | (33,805 | ) | (4,817 | ) | — | (33,686 | ) | (4,800 | ) | |||
| Investment income | 1,448 | 1,004 | 143 | 3,661 | 3,441 | 490 | |||||||
| Other income | 11,849 | 5,823 | 830 | 60,076 | 34,351 | 4,895 | |||||||
| Income before income taxes | 34,962 | 23,829 | 3,397 | 77,019 | 147,580 | 21,029 | |||||||
| Income tax expense | — | — | — | — | (68 | ) | (10 | ) | |||||
| Net income | 34,962 | 23,829 | 3,397 | 77,019 | 147,512 | 21,019 | |||||||
| Accretion of redeemable convertible preferred shares to redemption value | (37,601 | ) | (37,253 | ) | (5,309 | ) | (108,959 | ) | (110,827 | ) | (15,793 | ) | |
| Net income (loss) attributable to ordinary shareholders | (2,639 | ) | (13,424 | ) | (1,912 | ) | (31,940 | ) | 36,685 | 5,226 | |||
| Net earnings (loss) per ordinary share | |||||||||||||
| — Basic and diluted — Class A and B | (0.04 | ) | (0.19 | ) | (0.03 | ) | (0.44 | ) | 0.19 | 0.03 | |||
| Weighted average number of shares outstanding used in computing net earnings (loss) per ordinary share | |||||||||||||
| — Basic and diluted – Class A | 26,422,222 | 26,422,222 | 26,422,222 | 26,422,222 | 26,422,222 | 26,422,222 | |||||||
| — Basic and diluted – Class B | 45,577,778 | 45,577,778 | 45,577,778 | 45,577,778 | 45,577,778 | 45,577,778 | |||||||
| BINGEX LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except for number of shares and per share data) | |||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Net income | 34,962 | 23,829 | 3,397 | 77,019 | 147,512 | 21,019 | |||||||
| Add: Changes in fair value of long-term investments | — | 33,805 | 4,817 | — | 33,686 | 4,800 | |||||||
| Non-GAAP net income | 34,962 | 57,634 | 8,214 | 77,019 | 181,198 | 25,819 | |||||||
| Net income margin | |||||||||||||
| Add: Changes in fair value of long-term investments as a percentage of revenues | — | — | |||||||||||
| Non-GAAP net income margin | |||||||||||||
FAQ
What was BingEx's (FLX) revenue in Q3 2024?
How much did BingEx's (FLX) gross profit grow in Q3 2024?
What was BingEx's (FLX) order fulfillment volume for the first nine months of 2024?
What was BingEx's (FLX) net income margin in Q3 2024?
