Core Business Performance - Quhuo achieved total revenue of RMB 3,046.9 million and an adjusted EBITDA of RMB 9.07 million in 2024, marking positive EBITDA for three consecutive fiscal years [3] - The company reduced general and administrative expenses by 19.4% year-on-year and R&D expenses by 13.7%, enhancing operational efficiency [3] - Significant profit gains were driven by a focus on core businesses, with gross profit margins from shared-bike maintenance and ride-hailing services increasing by 15.7% and 216.9% respectively [4] Global Expansion Initiatives - Quhuo International shipped over 3,500 vehicles to overseas markets by the end of 2024 and launched the Carnuxt brand for used vehicle certification across various regions [5] - The company developed a "technology + resources" solution for international markets, successfully partnering with local entities in Azerbaijan to enhance ride-hailing services [6][7] - The model allows local dealers to integrate vehicles with ride-hailing platforms efficiently, leading to repeat orders and market validation for Quhuo's solutions [8] Business Model Innovation - Quhuo formed a strategic partnership with NIU World to provide distribution services for beef products, transitioning from a fulfillment service provider to a supply chain enabler [10][11] - The partnership operates on an "on-demand production and real-time fulfillment" model, significantly improving supply chain efficiency and product freshness [12][13] - This innovative model is expected to drive revenue growth in 2025 and may expand to other perishable food segments [14] Corporate Social Responsibility - By 2024, Quhuo created flexible job opportunities for over 830,000 workers and provided commercial insurance and vocational training [15] - The company's initiatives, such as EV exports and fresh beef supply models, contribute to reducing carbon emissions and food waste, promoting sustainable consumption [16] - Quhuo aims to leverage business innovation to address social challenges and set a benchmark for socially responsible enterprises [16] Strategic Vision - The company plans to optimize resource allocation, strengthen partnerships, and enhance ecosystem resilience to deliver long-term value to shareholders and society [17]

Core Viewpoint - Quhuo Limited reported its financial results for the full year and second half of 2024, highlighting a strategic shift towards enhancing profitability and operational efficiency despite a decline in total revenues. Financial and Operational Highlights for the Second Half of 2024 - Total revenues were RMB1,426.9 million (US$195.5 million), a decrease of 27.4% compared to RMB1,966.1 million in the second half of 2023 [6] - Net income increased significantly to RMB48.1 million (US$6.6 million), up 311.1% from RMB11.7 million in the same period last year [7][13] - Adjusted EBITDA rose to RMB43.8 million (US$6.0 million), an increase of 81.7% from RMB24.1 million [7][14] - General and administrative expenses decreased by 24.2% to RMB77.8 million (US$10.7 million) from RMB102.7 million in the second half of 2023 [10] - Gross profit margin for mobility solution services improved to 4.6%, up from 2.1% in the previous year [6] Financial and Operational Highlights for Full Year 2024 - Total revenues for the year were RMB3,046.9 million (US$417.4 million), down 17.7% from RMB3,702.4 million in 2023 [14] - Cost of revenues decreased by 15.9% to RMB2,973.2 million (US$407.3 million), aligning with the revenue decline [15] - General and administrative expenses for the year were RMB148.6 million (US$20.4 million), a reduction of 19.4% from RMB184.3 million in 2023 [16] - Revenues from on-demand food delivery solutions were RMB2,828.5 million (US$387.5 million), down 17.1% from RMB3,412.8 million in 2023 [17] - Net income attributable to Quhuo Limited was RMB1.6 million (US$0.2 million) in 2024, compared to RMB6.0 million in 2023 [20] Growth Drivers and Strategic Initiatives - The cross-border vehicle export business emerged as a key growth engine, with a successful "technology + resources" model implemented in regions like the Middle East and Eastern Europe [4] - A strategic cooperation agreement with NIU World in the on-demand food delivery sector aims to enhance supply chain capabilities and expand into other food sectors [5] - The company plans to continue optimizing operations and empowering partners to seize market opportunities for sustainable shareholder returns [6]

Core Insights - Quhuo International has formed a strategic partnership with Panasonic Navinfo to enhance export support for new energy vehicles (NEVs) through technological and service innovation [1][5][6] - The collaboration aims to address challenges in the used NEV market, such as battery assessment and transaction security, by providing comprehensive services including repair, inspection, and cross-border trade [2][6] - Quhuo International has established a strong supply chain network, exporting over 13,000 vehicles by the end of 2023, with successful deliveries to various regions [3][5] Company Overview - Quhuo International, founded in 2023, focuses on optimizing the used NEV export process and has partnerships with 58 global distributors [3][5] - The company is developing the Carnuxt trading platform to enhance the reliability and efficiency of used car exports [3] - Quhuo Limited operates as a leading gig economy platform in China, providing various local life services [9] Partnership Details - The partnership with Panasonic Navinfo will introduce battery screening services to ensure exported vehicles meet international standards, enhancing transaction security [6][7] - Panasonic Navinfo will provide battery monitoring services post-export, including real-time tracking and risk alerts, to improve customer experience [6][7] - The collaboration aims to drive green growth in the NEV trade market and develop industry standards [7][8] Market Potential - The used NEV market presents significant growth opportunities, despite challenges such as battery condition assessment and after-sales support [2] - The partnership leverages the strengths of both companies to enhance the competitiveness of exported used vehicles and expand global market reach [7][8]

Core Insights - Quhuo Limited's homestay division, Chengtu Home, reported a significant increase in performance during the National Day holiday, with GMV rising 92% year-over-year and average daily GMV increasing by 123% [1][7] - Chengtu's peak occupancy reached 90% of available rooms during this period, reflecting strong demand in the local life services market [1] Business Performance - Approximately 765 million domestic trips were made in China during the National Day holiday in 2024, marking a 5.9% increase year-over-year, which contributed to Chengtu's strong performance [2] - Chengtu initiated a business upgrade in September 2024 to enhance guest experiences and differentiate itself from competitors [2] Product Offering - On September 1, 2024, Chengtu launched its own booking platform with 2,000 high-quality listings across 51 cities in China, offering six functional room types tailored to various consumer needs [3] - The room types include Care, E-sports, Business Travel, Family, Cinema, and Elegant Retreat, allowing for customized accommodation solutions [3] Service Quality and Customer Experience - Chengtu focuses on addressing key consumer concerns such as accurate property listings, easy booking, fair pricing, and hygiene [4] - The company employs professional photographers for property listings and provides detailed descriptions to help guests plan their trips effectively [5] - Chengtu has simplified the booking process through its new platform and prohibits price hikes during holidays, ensuring fair pricing [5] Hygiene and Safety Measures - Chengtu has implemented a comprehensive hygiene and safety system, including smart locks and self-service check-ins to enhance guest privacy and security [6] - The cleaning team follows strict protocols to ensure high cleanliness standards, including thorough cleaning and linen changes between stays [6] Customer Feedback and Continuous Improvement - Chengtu values guest feedback and uses it to guide service improvements, which has contributed to steady growth compared to previous holidays [7] - The company aims to enhance customer experience and expand product lines to boost satisfaction and competitiveness in the homestay market [8]

Group 1 - Quhuo Limited has regained compliance with Nasdaq's minimum market value and bid price requirements, confirming its adherence to all continued listing criteria [1] - The company operates as a leading gig economy platform in China, focusing on local life services and leveraging its proprietary technology infrastructure, Quhuo+ [2] - Quhuo provides various operational solutions, including on-demand delivery, mobility services, housekeeping, and accommodation, catering to the needs of millions of families [2] Group 2 - The company's vision includes promoting employment, stabilizing income, and empowering entrepreneurship, while also offering safety, security, and vocational training for workers [2] - Quhuo aims to assist workers in planning their career development paths to help them realize their self-worth [2]

Core Viewpoint - Quhuo Limited's homestay division, Chengtu, has launched a new booking platform featuring six specialized room types, enhancing its service capabilities and aiming to meet diverse user needs in the local life services market in China [1][6]. Group 1: Platform Launch and Features - Chengtu's booking platform will be rolled out in three phases, starting with 2,000 proprietary homestays across 51 cities in China [2]. - The platform aims to improve private user operations and create a membership system for hosts and guests, eventually opening to more domestic homestay operators [2]. - The introduction of six functional room types caters to various user needs, including the Care Room, E-sports Room, Business Travel Room, Family Room, Cinema Room, and Elegant Retreat Room [3][4]. Group 2: Room Types and Market Position - Each room type is designed with specific features to enhance user experience, such as the Care Room's medical support and the E-sports Room's high-performance gear [4][5]. - The successful pilot of these functional rooms in Tianjin highlights Chengtu's competitive edge in the homestay market and its focus on personalized service [5]. - Chengtu is transitioning from a homestay management service provider to a creator of specialized homestay products, increasing its autonomy and optimizing profits [6]. Group 3: Strategic Vision and Leadership - The General Manager of Chengtu emphasized that the launch represents a proactive exploration of the future direction of the homestay industry [7]. - The CEO of Quhuo highlighted the business upgrade as a reflection of Chengtu's commitment to prioritizing user and family needs through continuous innovation [7].

Core Insights - Quhuo Limited is recognized as a leading gig economy platform in China, focusing on local life services and enhancing the significance of new employment forms in the economy [1][8] - The company has implemented comprehensive training and mentorship programs to empower its workforce, exemplified by the success story of Song Penghua, a delivery rider who advanced to deputy site manager [4][5] Group 1: Company Overview - Quhuo Limited operates in the gig economy, providing various local life services and employing over 53,500 active workers monthly [7] - The company has a proprietary technology infrastructure called Quhuo+, which supports its operational solutions in on-demand delivery, mobility services, and more [8][9] - Quhuo's commitment to worker welfare includes providing essential gear, organizing team-building activities, and special care initiatives for women and people with disabilities [6] Group 2: Workforce Development - The Ninth National Workforce Survey indicates that 21% of China's workforce is engaged in emerging job categories like delivery riders, highlighting the importance of these roles [2] - Quhuo's structured career development pathways allow riders to progress from delivery roles to management positions, as demonstrated by Song Penghua's rapid advancement [5][6] - The company emphasizes professional training, mentorship, and operational efficiency, resulting in Quhuo riders achieving customer satisfaction rates that exceed industry averages by 15-30 percentage points [7]

Core Insights - Quhuo International has established a strategic partnership in Azerbaijan with GET Holdings, Volt Auto, and Bolt to enhance electric vehicle (EV) adoption and improve ride-hailing services [1][2][5] - The global EV market is experiencing significant growth, with nearly 14 million units sold in 2023, representing one-fifth of total vehicle sales worldwide [1] - Azerbaijan's strategic location on the "Belt and Road" initiative and its hosting of COP29 presents opportunities for EV development and local demand for Chinese-made electric vehicles [2][5] Company Initiatives - Quhuo International aims to introduce comprehensive ride-hailing operational systems in Azerbaijan, leveraging its experience from China's leading platforms [3] - The company will provide both online software services and offline management support to establish a localized ride-hailing operation [3] - Quhuo International plans to expand local life services in Azerbaijan, including food delivery and group purchasing programs, utilizing its Quhuo+ platform [4] Market Potential - The ride-hailing industry in Azerbaijan has seen a 14% increase in users over the past five years, indicating strong growth potential [3] - Quhuo International's initiatives are expected to create new job opportunities and stimulate economic growth in Azerbaijan [5] - The partnership with Bolt aims to enhance transportation options for local residents and tourists, thereby increasing public acceptance of EVs [2][5] Strategic Vision - Quhuo International's General Manager emphasized the growth potential in Azerbaijan's EV and ride-hailing sectors, highlighting the company's commitment to sustainable transportation solutions [6] - The collaboration is viewed as a significant milestone in Quhuo International's global strategy, aiming to enhance overseas partnerships and drive sustainable development in the automotive sector [6]

Financial Data and Key Metrics - Total revenue for H1 2024 was RMB 1.62 billion, a decrease of 6.7% compared to RMB 1.74 billion in H1 2023 [5][16] - Gross margin improved to 5.6%, surpassing the previous year's performance [6] - General and administrative expenses decreased by 13.2% year-on-year due to lean management [6] - Net loss for H1 2024 was RMB 46.5 million, compared to a net loss of RMB 5.7 million in H1 2023 [19] - Adjusted EBITDA loss was RMB 34.8 million, compared to an adjusted EBITDA of RMB 11.1 million in H1 2023 [20] Business Segment Performance - Mobility Services segment revenue increased by 71.7% year-on-year, driven by a 389% growth in international vehicle export solutions [7] - Shared-bike maintenance service revenue grew by 6.2% year-on-year, while ride-hailing service revenue increased by 47.5% year-on-year [7] - Housekeeping service segment gross profit increased by 28.5% year-on-year, with gross margin rising from 13.8% to 24.6% [8] - On-demand delivery solutions revenue decreased by 9.1% year-on-year due to the optimization of business districts [16] Market Performance - International vehicle export solutions successfully exported 815 new energy vehicles overseas, showcasing strong international competitiveness [7] - Housekeeping service coverage expanded to 132 cities, a 21.4% increase year-on-year [8] - The company is exploring a combined short-term and long-term rental model for idle properties in collaboration with a leading long-term rental platform in China [11] Strategic Direction and Industry Competition - The company is focusing on long-term trends, such as the recovery of consumption and tourism, and the promotion of homestay services at the national level [10] - Quhuo is leveraging its experience in new energy vehicle exports, with over five years of experience in life-saving operations and more than two decades in vehicle exports [13] - The company is forming strong partnerships with overseas partners through technology and management empowerment, particularly in on-demand delivery and ride-hailing systems [14] Management Commentary on Operating Environment and Future Outlook - The global economic environment remains complex and volatile, with challenges in both domestic and international markets [5] - The company is committed to long-term strategic planning, optimizing operational models, and seizing new market opportunities [15] - Quhuo International is expected to enter the next stage of development in H2 2024, focusing on redefining partner roles and unifying long-term profit-sharing mechanisms [21][22] Other Important Information - The company has cash, short-term investments, and restricted cash of RMB 104.9 million, with short-term debt of RMB 104.2 million as of June 30, 2024 [20] - Quhuo's platform has accumulated over 770,000 registered workers, providing stable and flexible job opportunities in various sectors [9] Q&A Session Question: What are the company's plans for Quhuo International in the second half of 2024, and how do you see its growth prospects? - Quhuo International will focus on defining and innovating its overseas business model, redefining partner roles, and unifying long-term profit-sharing mechanisms to drive faster growth in both revenue and profit [21][22] - The company expects this phase to bring scale growth and solidify its position in the international market [23]

Core Viewpoint - Quhuo Limited demonstrated stable business growth in the first half of 2024 despite a complex global economic environment, achieving a total revenue of RMB 1.62 billion and a gross margin of 5.6%, surpassing last year's performance [5][6][15]. Financial Performance - Total revenue decreased by 6.7% year-on-year from RMB 1,736.3 million to RMB 1,619.9 million [16]. - Revenue from on-demand delivery solutions was RMB 1,499.1 million, a decrease of 9.1% from the previous year [16]. - Revenue from Mobility Service Solutions increased by 71.7% year-on-year to RMB 100.5 million, driven by a significant growth in vehicle export solutions [17]. - Housekeeping and accommodation solutions revenue decreased by 27.8% to RMB 20.4 million due to a business model transition [17]. - General and administrative expenses decreased by 13.2% year-on-year to RMB 7.9 million, reflecting improved operational efficiency [18]. - The company recorded a net loss of RMB 5.7 million compared to a loss of RMB 46.5 million in the same period last year [19][20]. Business Segments - The Mobility Services segment saw a revenue increase of 71.7% year-on-year, with shared-bike maintenance service revenue growing by 6.2% and ride-hailing service revenue increasing by 47.5% [7]. - The housekeeping service segment's gross profit increased by 28.5% year-on-year, with gross margin rising from 13.8% to 24.6% [8]. - Quhuo successfully exported 815 new energy vehicles, marking a 389% year-on-year increase in international vehicle export solutions [7]. Strategic Focus - Quhuo is addressing three key issues to deliver continuous value: enhancing employment opportunities, expanding homestay services, and revitalizing existing housing inventory [9][10][11]. - The company is collaborating with a leading long-term rental platform to explore a combined rental model for idle properties, aiming to improve operational efficiency and create commercial value [11]. - Quhuo is leveraging its competitive advantage in new energy vehicle exports, with plans to expand market share and business coverage in the second half of 2024 [12][13]. Future Outlook - Quhuo plans to redefine its international business model and optimize new business processes with partners to drive growth in revenue and profit [21][22]. - The company aims to solidify its position in the international market and expects to enter the next stage of development for Quhuo International in the second half of 2024 [23].