- Net loss and adjusted net loss decreased by 78.6% and 87.0%
year-over-year respectively.
- Quhuo International has signed service contracts for 1,720
units of vehicles under its vehicle export solutions, of which 200
units have been shipped.
BEIJING, Aug. 31,
2023 /PRNewswire/ -- Quhuo Limited (NASDAQ: QH)
("Quhuo" or the "Company"), a leading gig economy platform focusing
on local life services in China, today released its unaudited
financial results for the six months ended June 30, 2023, revealing the Company's sustained
profitability enhancement and robust growth in international
operations.
Continuing the Business Strategy and Achieving an Enhancement
in Profitability
Following the "increasing revenue first and improving
profitability later" strategy in 2022, Quhuo continued to enhance
profitability and optimize costs in the first half year of 2023.
Meanwhile, based on our mobility service solutions, we have
embarked on the creation of a second growth trajectory for our
business, which has yielded significant achievements.
During the first half of 2023, Quhuo achieved a year-on-year
decrease of 78.6% in net losses and an 87.0% decrease in adjusted
net losses, which were RMB5.7 million
and RMB1.8 million, respectively.
Additionally, adjusted EBITDA increased by 2.8% year-on-year,
reaching RMB11.1 million.
Cost and expense control also played a significant role in
driving the Company's increased profitability in the first half of
2023. Through technological optimization, Quhuo's overall operating
costs decreased by 5.7% year-on-year in the first half of 2023.
Specifically, general and administrative expenses decreased by 18%
to RMB81.6 million, and research and
development expenses decreased by 7.2% to RMB6.6 million. Considering the current economic
condition in the domestic market, Quhuo had also strategically
managed its asset-liability allocation. This approach led to a
growth in interest income from RMB191,000 in the first half of 2022 to
RMB742,000 in the first half of 2023.
Concurrently, interest expenses decreased by 38.6% from
RMB3.8 million in the first half of
2022 to RMB2.3 million in the first
half of 2023.
Quhuo International Became the Company's Second Growth
Engine
During the first half of 2023, Quhuo embarked on its second
growth engine, which has shown promising results. Leveraging the
Company's over-five-year experience and resources in the mobility
service solutions, Quhuo officially introduced Quhuo International
in February 2023, which formally
launched its vehicle export solutions in May.
In the first half of 2023, the results of vehicle export
solutions have been remarkable. The Company has signed service
contracts for 1,720 units of vehicles, of which 200 units have been
shipped. In May alone, Quhuo International generated revenue
of RMB12.0 million and achieved
profitability. The remaining signed but unshipped service contracts
are anticipated to continue contributing financial returns to the
company in the second half of the year.
Quhuo holds unique advantages in vehicle export solutions. On
the one hand, Quhuo is a significant partner of Didi, the largest
ride-hailing platform in China,
and the business team of Quhuo's mobility service
solutions has accumulated over two decades of resources and
experience in the automotive export sector, which enables Quhuo's
mobility team to access a diverse range of channels for selling
used cars, including various medium to large-sized automobile
manufacturers, dealerships, and the second-hand car market. On the
other hand, Quhuo collaborates closely with overseas dealers,
establishing strong communication and collaboration ties. This
robust partnership network lays a solid foundation for Quhuo
International's overseas operations.
Establish and Collaborate with Repairment Center to
Facilitate Vehicle Export Solutions
In order to better solidify its advantage in vehicle export
solutions, Quhuo will make full use of its second-hand car repair
capabilities for streamlined operations. While continuously
providing ride-hailing solutions to clients, Quhuo has accumulated
significant vehicle maintenance and repairment resources, forming a
unique vehicle repairment resource network.
In the future, Quhuo will establish and collaborate with
repairment centers near vehicle sources nationwide through the
vehicle repairment resource network to, complete used car repairs
and condition grading, which can standardize the used car
repairment process, improve efficiency, establish international
used car certification standards, and optimize the environment for
international used car transactions.
With innovative approaches, Quhuo International will create a
new growth path, expanding its reach beyond the Company's initial
trajectory. The Company expects to improve its revenue,
profitability, and collaboration opportunities across the industry
with the new approaches. The Company believes that this initiative
will not only contribute to the global automotive trade but also
extend the benefits of the electric vehicle boom to other countries
and regions, while fulfilling corporate social responsibility in
energy conservation and emissions reduction.
ABOUT QUHUO LIMITED
Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a
leading gig economy platform focusing on local life services in
China. Leveraging Quhuo+, its
proprietary technology infrastructure, Quhuo is dedicated to
empowering and linking workers and local life service providers and
providing end-to-end operation solutions for the life service
market. The Company currently provides multiple industry-tailored
operational solutions, primarily including on-demand delivery
solutions, mobility service solutions, housekeeping and
accommodation solutions, and other services, meeting the living
needs of hundreds of millions of families in the communities.
With the vision of promoting employment, stabilizing income and
empowering entrepreneurship, Quhuo explores multiple scenarios to
promote employment of workers, provides, among others, safety and
security and vocational training to protect workers, and helps
workers plan their career development paths to realize their
self-worth.
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SOURCE Quhuo Limited