BingEx's Q2: Drones Take Flight as Industry Turns to Service Quality
FlashEx scales drone delivery to 22 routes, AI lifts efficiency 30%, while the anti-involution convention reshapes competitive dynamics.
FLX · Earnings Call · 2026-08-20
The industry's return to rational competition
FlashEx's CEO argued that the market is maturing. “Users today expect more than speed alone, placing growing weight on the entire service experience from the moment they place an order to the moment it arrives.” — Peng Xue, Executive (likely CEO or senior management) · 2026-08-20 This aligns with the industry's new self-discipline convention, which CFO Luke Tang described: “On May 28, FlashEx joined 6 other leading platforms in Hangzhou in selling and industry self-discipline convention, covering marketing practices, merchant rights, rider protections and governance.” — Le Tang, CFO or Financial Officer · 2026-08-20 The company sees this as a positive development that shifts competition away from subsidies and toward reliability. Notably, the global keyword Anti involution has been trending since mid-2025, underscoring that this is a market-wide phenomenon, not just a FlashEx narrative.Drones take flight
The most concrete change in Q2 was the acceleration of drone delivery. FlashEx reported that drone delivery order volume grew 169.3% quarter-over-quarter, reaching 22 routes in operation. In July, Hangzhou's first cross-river route entered commercial operation, cutting delivery times from over 40 minutes to around 20 minutes. “Drone delivery order volume grew 169.3% quarter-over-quarter and we now have 22 routes in operation.” — Peng Xue, Executive (likely CEO or senior management) · 2026-08-20 This builds on prior quarter momentum: “In the first quarter, drone delivery order volume grew 157% quarter-over-quarter.” — Peng Xue, Executive or Senior Management · 2026-05-21 with only 14 routes. The company's emphasis on Low altitude logistics is now starting to translate into meaningful operational metrics, though it remains a small portion of total volume. The Drone delivery order volume keyword is new to the company's top-30 list this quarter, a sign that management is placing strategic weight on this segment.AI as a compounding efficiency lever
Beyond drones, FlashEx detailed how AI is being embedded across operations. The company claims that in customer service, marketing, and regional operations, AI has lifted efficiency by roughly 30%. “Across all of our AI work, we keep coming back to one question. What does the user actually end up with?” — Peng Xue, Executive (likely CEO or senior management) · 2026-08-20 This focus on outcomes could support the long-term expense ratio improvement that management has been promising. Indeed, CFO Luke Tang reiterated that AI should create "room for better profit margins ahead." This is consistent with their prior guidance: “we expect the expense ratio to trend downward in a healthy and controlled manner.” — Le Tang, Chief Financial Officer · 2025-11-19What changed?
The quarter signals a deliberate strategic bet: FlashEx is doubling down on drones and AI to differentiate in a market that is shifting away from price competition. While near-term financials remain pressured—revenue down YoY and non-GAAP net income down to RMB 11.4M from RMB 45.6M a year ago—the narrative is shifting toward operational leverage and new growth vectors. The company's early-mover position in low-altitude delivery, combined with its disciplined approach to costs, could set it apart if the anti-involution trend holds.That trust, built on its dedicated courier model, is exactly what the new industry regime may reward.We have seen this market change many times since we started, and we still believe the hardest thing to replicate here is trust earned through every safe on-time delivery.