Flash IPO to the United States, the average net profit per order in the first half of this year was 90 cents.

　　Recently, Flash Bing Co., Ltd. (referred to as "Flash") officially submitted a prospectus and plans to list on NASDAQ. Prior to this, on July 4th, official website of China Securities Regulatory Commission disclosed the filing notice about flashing overseas issuance and listing.

　　According to public information, Flash was established in 2014, which mainly provides "one-to-one delivery service" for individuals and corporate customers, specifically addressing the requirements of timeliness and security such as "delivering keys" and "delivering documents". The actual controller of the company is Xue Peng. Before the IPO, he held 22.7% of the company’s equity and 74.6% of the voting rights.

　　At the beginning of its establishment, Flash was favored by venture capital. According to Tianyancha, in March 2014, the company obtained angel round financing from Jingwei Venture Capital, amounting to several million yuan. In the following ten years, Flash has raised a total of 11 rounds of financing, involving more than 10 venture capital institutions, the most recent of which occurred in March 2021, with a financing amount of 125 million US dollars.

　　After ten years of development, flash has become the first in the segmentation field. By June 30, 2024, the company had about 2.7 million registered riders, and its service coverage was extended to 295 cities in China. According to iResearch, in 2023, the market share of flash delivery independent on-demand delivery service in China will be about 33.9%.

　　In 2021 -2023 and the first half of 2024, Flash completed orders of 159 million, 213 million, 271 million and 138 million respectively, corresponding to revenues of 3.040 billion yuan, 4.003 billion yuan, 4.529 billion yuan and 2.284 billion yuan. Flash said that according to iResearch, in the first half of this year, the company was able to charge an average price of 16.5 yuan per order, which is a significant premium compared with the prices charged by other major participants in the on-demand delivery industry.

　　Although the average unit price is high, it is limited by the characteristics of "one-to-one express delivery service", and the performance cost of each express delivery is also high, and the salary and reward paid to riders account for a large part of the income cost. According to the prospectus, in 2021 -2023 and the first half of 2024, the salaries and rewards paid to riders by flash transport were 2.751 billion yuan, 3.614 billion yuan, 3.975 billion yuan and 1.951 billion yuan, respectively, accounting for 90.5%, 90.3%, 87.8% and 85.4% of the income. The high proportion of revenue and cost has also led to the gross profit margin of Flash delivery hovering around 10% in recent years.

　　The profit level is reflected in the profit scale. From 2021 to 2022, Flash delivery recorded net losses of 291 million yuan and 180 million yuan respectively, and it didn’t turn losses into profits until 2023 with a net profit of 110 million yuan. However, it should be noted that most of last year’s profits came from government subsidies, and the operating profit related to operating conditions was only 11 million yuan. In the first half of 2024, the company continued to make profits, with a net profit of 124 million yuan, which was less than that of 0.9 yuan on average.

　　The industry believes that compared with catering service providers in the instant delivery field, the "one-to-one delivery service" of flash delivery is in a weak position in terms of traffic and user stickiness. How to improve the profit level in the future will test its operational ability. Flash said in the prospectus that the net proceeds from IPO will be mainly used to expand the customer base and increase market penetration; Create a brand image; Technology research and development; And for general corporate use.