BingEx Limited’s 2024 Form 20-F Filing: A Mixed Bag for Investors?

BingEx Limited (NASDAQ: FLX), operator of China’s leading on-demand dedicated courier service FlashEx, recently filed its 2024 annual report on Form 20-F with the U.S. Securities and Exchange Commission (SEC). The filing confirms the company’s procedural compliance but reveals a complex financial picture marked by declining top-line growth, widening net losses, and operational resilience. For investors, the report underscores both opportunities and risks in this niche logistics player.

Key Financial Highlights

The most recent data from the filing paints a nuanced picture of BingEx’s performance in 2024:

1. Revenue Decline: Total revenue for 2024 fell to RMB4.47 billion (US$612 million), down 1.3% from 2023. Fourth-quarter revenue dropped sharply by 15.2% year-over-year to RMB1.03 billion (US$141 million), driven by fewer fulfilled orders.

3. Margin Improvements: Gross profit margin expanded to 11.0% in 2024 (up from 8.7% in 2023), reflecting cost-cutting efforts. The average gross profit per order rose 21.4% year-over-year, a sign of pricing power or operational efficiency gains.

4. Net Loss Widens: Despite margin improvements, GAAP net losses grew to RMB146.5 million (US$20.1 million) in 2024, compared to a profit of RMB110.5 million in 2023. This was largely due to fair value losses on long-term investments (RMB187.7 million) and soaring operating expenses tied to IPO-related share-based compensation.

5. Cash Position: The company ended 杧2024 with RMB793 million (US$109 million) in cash and equivalents, down from RMB992 million in 2023. However, its US$30 million share repurchase program, announced in March 2025, signals confidence in its stock valuation.

Operational Strengths and Market Position

BingEx’s core business remains its dedicated courier model, which emphasizes “time certainty, delivery safety, and service quality.” Key operational metrics include:
- 295 cities served by year-end 2024.
- 100.1 million users and 2.8 million registered riders.
- 277.2 million fulfilled orders in 2024, a 2.4% increase from 2023.

CEO Adam Xue highlighted the brand’s 10-year streak as China’s top on-demand courier service, underscoring its dominance in a fragmented market. The company’s focus on technology integration (e.g., AI-driven route optimization) and rider retention could further solidify its lead.

Risks and Challenges

While BingEx’s niche position is a strength, several risks cloud its outlook:

1. Profitability Struggles: Despite margin improvements, the company’s inability to convert gross profit into net income remains a red flag. Fair value losses and non-operational expenses (e.g., share-based compensation) have skewed results.

2. Market Competition: Rival couriers like Alibaba’s Ele.me and Meituan’s Meituan Express are expanding into on-demand delivery, intensifying pricing wars and rider recruitment costs.

3. Regulatory Uncertainty: As a Chinese firm listed in the U.S., BingEx faces risks tied to the Holding Foreign Companies Accountable Act (HFCAA), which could force delisting if audit documents are inaccessible.

4. Fair Value Volatility: Investment losses (RMB187.7 million in 2024) highlight reliance on volatile financial instruments, which could destabilize earnings in future quarters.

Investor Takeaways

BingEx’s Form 20-F filing paints a company at a crossroads:
- Positive indicators:
- Brand leadership and operational efficiency (higher margins).
- Share repurchase program signals confidence.
- 21.4% rise in average gross profit per order suggests pricing power.

• Concerns:
• Revenue decline and widening net losses.
• Non-operational expenses (e.g., share-based compensation) obscuring core profitability.
• Exposure to regulatory and investment risks.

Conclusion

BingEx Limited’s 2024 results are a mixed bag. While its FlashEx brand dominance and margin improvements offer long-term potential, near-term challenges—such as declining revenue, volatile investment losses, and competitive pressures—demand caution. Investors should weigh its cash reserves (RMB793 million) and share buyback against its profit struggles.

The company’s strategic focus on operational excellence and technology could pay off in a market where on-demand logistics demand is rising. However, until BingEx achieves sustainable net profitability, its stock remains a high-risk, high-reward play for investors willing to bet on China’s delivery sector.

Final verdict? BingEx is a hold for now—watch for margin trends and regulatory clarity in 2025.