Saifan Jiang

Saifan Jiang from CICC inquired about FlashEx's third-quarter order volume and average selling price (ASP) trends across its B2B and B2C segments, the potential impact of food delivery subsidy rollbacks and colder weather on fourth-quarter order growth, and the company's order volume outlook and key drivers for the upcoming year. Additionally, Saifan asked for management's perspective on the future trajectory and potential for reducing FlashEx's overall expense ratio.

Answer

CEO Adam Xue explained that the market shift from price to service, driven by subsidy rollbacks and regulatory standardization, benefits FlashEx's differentiated on-demand dedicated courier model. He highlighted continued investment in service scenarios, user experience, merchant collaboration, and operational efficiency, noting a Q3 average delivery time of 26 minutes. Xue reported strong resilience in Q3 order volume and a year-over-year ASP increase, projecting continued growth in Q4 and 2026 by leveraging time efficiency and expanding the user base. CFO Luk Tang addressed the expense ratio, stating it has been stable and gradually declining due to refined operations and efficiency enhancements, including diversified client acquisition strategies. Tang anticipates further optimization in the medium to long term, expecting a healthy downward trend in the expense ratio as revenue grows and operational strategies improve.

Saifan Jiang from CICC inquired about FlashEx's Q3 order volume and average selling price (ASP) trends, specifically broken down by B2B and B2C segments. He also asked about the impact of food delivery subsidy rollbacks and colder Q4 weather on order growth, and the company's order volume outlook and key drivers for the next year. Additionally, Saifan sought management's perspective on the future reduction potential of the company's expense ratio.

Answer

CEO Adam Xue addressed the first question, stating that the market is shifting from price to service quality, allowing FlashEx to leverage its on-demand dedicated courier model. He highlighted investments in expanding service scenarios, refining user experience, strengthening merchant collaboration, and optimizing operational efficiency. Xue noted Q3 order volume resilience and a year-over-year ASP increase, projecting continued growth by amplifying time efficiency and expanding the user base. CFO Luke Tang responded to the second question, explaining that the company's expense ratio has been stable and declining due to refined operations and lower client acquisition costs, including writer-generated leads and enterprise client engagement. He anticipates further expense ratio optimization and stronger operating leverage in the medium to long term.