- Vehicle export service contracts for 3,000 units have been
signed, of which over 1,900 units have been shipped and generated
revenues of RMB 154.5 million.
- SaaS+ services empowered housekeeping and accommodation
solutions and other services, driving a significant increase in
profitability.
BEIJING, April 3, 2024 /PRNewswire/ -- Quhuo Limited
(NASDAQ: QH) ("Quhuo," the "Company", "we" or "our"), a leading gig
economy platform focusing on local life services in China, today reported its unaudited financial
results for the six months and full year ended December 31, 2023, with significant financial
results and successful identifying the company's second growth
curve which were vehicle export solutions and SaaS+ services
in 2023.
Remarkable Financial Performance with Four Consecutive
Financial Reporting Periods of Positive EBITDA
In 2023, Quhuo's total revenue reached RMB 3.7 billion, with a gross profit of
RMB 1.7 million. Adjusted net income
achieved an increase of 64.7% year-over-year, amounting
to RMB 5.5 million. Income before
income tax for the year grew by 10.7% year-on-year to RMB 5.1 million. The Company achieved several
positive metrics such as net income and income per share, along
with positive EBITDA for four consecutive financial reporting
periods.
Additionally, Quhuo's remarkable cost-control efforts were
noteworthy. Cost of revenue decreased by 0.9%, and general and
administrative costs decreased year-over-year by 13.7% to
RMB184.3 million in 2023. R&D
costs decreased by 1.3% to RMB 12.4
million during the full year, with a slight increase in the
second half due to investment in SaaS+ services and a notable
reduction of 7.2% in the first half year.
A Significant Breakthrough in the Vehicle Export Drove Rapid
Growth in the Mobility Solutions
The vehicle export business, a new venture derived from mobility
solutions, was officially launched in May
2023. Despite being operational for only seven months by the
end of 2023, it achieved significant breakthroughs. Quhuo
International exported approximately 1,900 used vehicles from
China to countries and regions
including Jordan, generating
RMB 154.5 million in revenue in
2023.
The success of the used vehicle export business also propelled
rapid growth in mobility solutions, with an increase of 239.6%
year-on-year to RMB 175.3 million and
116.4% to RMB 233.8 million in 2023H2
and 2023 respectively.
The achievements of Quhuo International can be attributed to
several factors. Firstly, there is a strong demand for new energy
vehicles in overseas markets. Secondly, the rapid growth of
China's used vehicle export
industry, with exports exceeding 160,000 vehicles in 2023 according
to customs data, indicates significant market potential.
Lastly and most importantly, Quhuo possesses unique advantages
distinct from other used vehicle traders, such as accumulated
experience and resources in technology and operations, a profound
understanding of the used vehicle trading market and ecosystem, a
nationwide network of diverse and abundant used vehicle sources, a
vehicle refurbishment resource network comprising extensive
maintenance and repair resources, and close cooperation with
overseas distributors. These factors collectively establish Quhuo's
competitive edge in the global used vehicle trading market,
indicating vast prospects and development potential for this
business.
Business Transformation Driven by SaaS+ Services, boosting
Profitability in the Housekeeping and Accommodation
Solutions
Another key engine of the second growth curve, SaaS empowerment,
mainly focuses on housekeeping and accommodation solutions and
other services. Beginning in the first half of 2023, after
successful validation of the self-operated model, Quhuo tried
transitioning the housekeeping and accommodation solutions to the
SaaS+ service empowerment model.
Following six months of market validation, a comprehensive shift
of housekeeping and accommodation solutions and other services to
the SaaS+ empowerment model was witnessed during the second half of
2023. This transformation drove rapid growth in GMV of housekeeping
and accommodation solutions to RMB514
million, a 53% increase compared to 2022.
Benefiting from the successful empowerment of SaaS+ services,
the profitability of this business sector significantly improved,
with gross profit increasing by 48.7% year-on-year, and gross
profit margin rising significantly. Furthermore, the promotion of
SaaS+ services led to significant cost reduction effects, with
costs of revenue in housekeeping and accommodation solutions and
other services declining by 35.5%, including a 53.4% reduction in
accommodation service operating costs.
Leslie Yu, Founder, Chairman, and
CEO of Quhuo, mentioned in the earnings conference call of 2023
that the company's three major business models have collectively
built a comprehensive business framework with one cornerstone
sector, namely fulfillment services, stabilizing the company's
original revenue and profit. SaaS+ services and international
vehicle trade, as leverage, will propel the company to achieve
higher business growth opportunities, completely unlocking the
company's upward growth space.
It is believed Quhuo will continuously innovate and aim for
higher growth rates in new business areas while consolidating the
advantages of its cornerstone business in such a business
framework. While globally promoting its business, such as
international trading and extending the on-demand delivery services
into overseas markets, Quhuo will bring more new opportunities to
the job market, provide more choices and development opportunities
for laborers domestically and abroad, promote employment growth,
enhance labor market flexibility, and drive sustainable
socio-economic development.
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