Core Viewpoint - Quhuo Limited reported strong financial results for the fiscal year 2023, highlighting significant growth in vehicle export solutions and a return to profitability after a net loss in 2022 [4][3]. Financial and Operational Highlights for the Second Half of 2023 - Revenues from vehicle export solutions reached RMB142.5 million (US$20.1 million), accounting for 81.3% of mobility solution services, resulting in a 239.6% year-over-year increase in mobility service revenue [2][6]. - Net income was RMB11.7 million (US$1.6 million), a 15.0% increase from RMB10.2 million in the previous year [2]. - General and administrative expenses decreased by 9.9% to RMB102.7 million (US$14.5 million) from RMB114.1 million [2][7]. - Over 1,700 units of vehicles were shipped under the vehicle export solutions [2]. Financial and Operational Highlights for Full Year 2023 - Total revenues were RMB3,702.4 million (US$521.5 million), a decrease from RMB3,820.4 million in 2022 [9]. - Revenues from vehicle export solutions totaled RMB154.5 million (US$21.8 million), contributing to a 116.4% increase in mobility service revenue [3][10]. - The company achieved a net income of RMB6.0 million (US$0.8 million), compared to a net loss of RMB16.4 million in 2022 [3][13]. - General and administrative expenses decreased by 13.7% to RMB184.3 million (US$26.0 million) from RMB213.6 million [3][11]. Strategic Initiatives and Future Outlook - The company is focusing on expanding its business through vehicle export solutions and SaaS+ services, aiming to enhance profitability [4]. - Quhuo has successfully exported approximately 1,900 units of new energy vehicles, indicating strong growth potential in new business ventures [4]. - The company plans to form large-scale partnerships and expand service coverage to drive further business growth [4]. Balance Sheet Overview - As of December 31, 2023, the company had cash, short-term investments, and restricted cash totaling RMB114.8 million (US$16.2 million) and short-term debt of RMB92.7 million (US$13.1 million) [14]. Earnings Conference Call - Quhuo will hold a conference call to discuss financial results on April 3, 2024, at 8:00 a.m. U.S. Eastern Time [15].

Core Insights - Quhuo Limited is expanding its presence in the homestay industry through its Chengtu division by launching a new rural homestay collaboration project named "Chengtu Rural Residence" [1][2] - The initiative aims to address rural-urban migration and the issue of vacant rural homes, promoting integrated urban-rural development and revitalizing rural communities [2][3] Company Developments - Chengtu has partnered with three villages in Tianjin's Wuqing District to renovate 20 to 30 rural homes into homestays, offering co-builders a 20-year operational lease for stable rental income [3] - The Beidaihe Village project in Qinhuangdao will transform 14 rural homes into publicly operated homestays, located in a cultural industry park that integrates culture, agriculture, and tourism [3][4] Operational Strategy - The selection process for rural homestays focuses on locations that reflect local customs and have clear property rights, sturdy foundations, and accompanying farmland [4] - Chengtu sets high standards for its homestays, ensuring quality comparable to star-rated hotels and providing comprehensive training to staff [4] Market Outlook - The rural tourism market is expected to grow due to increasing demand for high-quality pastoral lifestyles, with Quhuo planning to leverage its operational expertise and technology to foster development in this sector [4]

Core Viewpoint - Quhuo Limited has successfully held its 2023 annual general meeting, where significant proposals were approved, including changes to share capital and voting power for Class B shares [1] Group 1: Shareholder Meeting Outcomes - The appointment of Marcum Asia CPAs LLP as the independent registered public accounting firm for the fiscal year ended December 31, 2023, was ratified [1] - The Company's authorized share capital was increased from US$50,000 to US$500,000, allowing for a total of 5,000,000,000 shares, which includes 3,000,000,000 Class A Ordinary Shares and 1,993,703,370 Undesignated Shares [1] - The voting power of Class B Ordinary Shares was increased from 15 votes to 480 votes for each share [1] - The Third Amended and Restated Memorandum and Articles of Association were approved and adopted, replacing the previous version [1] Group 2: Company Overview - Quhuo Limited is a leading gig economy platform in China, focusing on local life services [2] - The company utilizes its proprietary technology infrastructure, Quhuo+, to connect workers with service providers and offer comprehensive operational solutions [2] - Quhuo provides various tailored operational solutions, including on-demand delivery, mobility services, housekeeping, and accommodation, catering to the needs of millions of families [2] - The company aims to promote employment, stabilize income, and empower entrepreneurship, offering safety, security, and vocational training to workers [2]

Group 1 - Quhuo Limited is a leading gig economy platform in China, focusing on local life services and leveraging its proprietary technology infrastructure, Quhuo+ [2] - The company provides various operational solutions, including on-demand delivery, mobility services, housekeeping, and accommodation, catering to the needs of hundreds of millions of families [2] - Quhuo aims to promote employment, stabilize income, and empower entrepreneurship by offering safety, security, vocational training, and career development support for workers [2] Group 2 - The annual general meeting of shareholders is scheduled for February 19, 2024, at a new location in Beijing, China, starting at 10:00 a.m. local time [1]

BEIJING, Jan. 17, 2024 /PRNewswire/ -- Quhuo Limited ("Quhuo" or the "Company") (NASDAQ: QH), a leading gig economy platform focusing on local life services in China, today announced that it will hold its 2023 annual general meeting of shareholders at 3rd Floor, Block A, Tonghui Building, No. 1132 Huihe South Street, Chaoyang District, Beijing 100020, The People's Republic of China on February 19, 2024, at 10:00 a.m. (local time). The proposals to be submitted for shareholders' approval at the annual genera ...

[Unaudited Interim Condensed Consolidated Balance Sheets](index=1&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Balance%20Sheets) [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) The company's balance sheet as of June 30, 2023, shows a slight increase in total assets and liabilities compared to December 31, 2022, resulting in a minor decrease in total shareholders' equity. Current assets remained relatively stable, while non-current assets saw a modest increase Balance Sheet Data | Metric | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :------------------------------------ | :---------------------------------- | :---------------------------------- | | **ASSETS:** | | | | | Total current assets | RMB 719.221 million | RMB 735.546 million | US$ 101.437 million | | Total non-current assets | RMB 336.396 million | RMB 350.206 million | US$ 48.295 million | | **Total assets** | **RMB 1.056 billion** | **RMB 1.086 billion** | **US$ 149.732 million** | | **LIABILITIES AND SHAREHOLDERS' EQUITY:** | | | | | Total current liabilities | RMB 487.940 million | RMB 515.283 million | US$ 71.061 million | | Total non-current liabilities | RMB 70.100 million | RMB 71.174 million | US$ 9.815 million | | **Total liabilities** | **RMB 558.040 million** | **RMB 586.457 million** | **US$ 80.876 million** | | Total Quhuo Limited shareholders' equity | RMB 501.162 million | RMB 498.922 million | US$ 68.805 million | | Non-controlling interests | RMB -3585 | RMB 373 | US$ 51 | | **Total shareholders' equity** | **RMB 497.577 million** | **RMB 499.295 million** | **US$ 68.856 million** | | **Total liabilities and shareholders' equity** | **RMB 1.056 billion** | **RMB 1.086 billion** | **US$ 149.732 million** | [Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss](index=3&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) [Comprehensive Loss Overview](index=3&type=section&id=Comprehensive%20Loss%20Overview) For the six months ended June 30, 2023, the company reported a reduced net loss and comprehensive loss compared to the same period in 2022, despite a decrease in revenues. This improvement was driven by lower cost of revenues, general and administrative expenses, and a significant gain on disposal of assets Statements of Comprehensive Loss Data | Metric | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Revenues | RMB 1.864 billion | RMB 1.736 billion | US$ 239.449 million | | Cost of revenues | RMB -1.770 billion | RMB -1.670 billion | US$ -230.237 million | | General and administrative | RMB -99.525 million | RMB -81.611 million | US$ -11.255 million | | Research and development | RMB -7.161 million | RMB -6.645 million | US$ -916 thousand | | Gain on disposal of assets, net | RMB 4.732 million | RMB 8.916 million | US$ 1.230 million | | Operating loss | RMB -8.026 million | RMB -12.538 million | US$ -1.729 million | | Loss before income tax | RMB -19.903 million | RMB -8.085 million | US$ -1.115 million | | Income tax (expense)/benefit | RMB -6.683 million | RMB 2.395 million | US$ 330 thousand | | Net loss | RMB -26.586 million | RMB -5.690 million | US$ -785 thousand | | Net loss attributable to ordinary shareholders of Quhuo Limited | RMB -24.953 million | RMB -9.648 million | US$ -1.331 million | | Basic Loss Per Share | RMB -0.53 | RMB -0.17 | US$ -0.02 | | Diluted Loss Per Share | RMB -0.53 | RMB -0.17 | US$ -0.02 | | Comprehensive loss | RMB -21.291 million | RMB -2.135 million | US$ -295 thousand | | Comprehensive loss attributable to ordinary shareholders of Quhuo Limited | RMB -19.658 million | RMB -6.093 million | US$ -841 thousand | [Unaudited Interim Consolidated Statements of Changes in Shareholders' (Deficit)/Equity](index=4&type=section&id=Unaudited%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20(Deficit)%2FEquity) [Shareholders' Equity Changes Overview](index=4&type=section&id=Shareholders'%20Equity%20Changes%20Overview) The statement details the evolution of shareholders' equity from December 31, 2021, to June 30, 2023. Key movements include net losses, other comprehensive income, and share-based compensation, resulting in a slight increase in total shareholders' equity by June 30, 2023, compared to December 31, 2022 Statements of Changes in Shareholders' Equity Data | Metric | As of December 31, 2021 (RMB million/billion) | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :---------------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Ordinary shares | RMB 37 | RMB 43 | RMB 43 | US$ 6 | | Additional paid-in capital | RMB 1.856 billion | RMB 1.886 billion | RMB 1.889 billion | US$ 260.573 million | | Accumulated deficit | RMB -1.367 billion | RMB -1.380 billion | RMB -1.390 billion | US$ -191.622 million | | Accumulated other comprehensive loss | RMB -18.259 million | RMB -4.654 million | RMB -1.099 million | US$ -152 thousand | | Total Quhuo Limited shareholders' (deficit)/equity | RMB 470.941 million | RMB 501.162 million | RMB 498.922 million | US$ 68.805 million | | Non-controlling interests | RMB 12.494 million | RMB -3585 | RMB 373 | US$ 51 | | **Total shareholders' (deficit)/equity** | **RMB 483.435 million** | **RMB 497.577 million** | **RMB 499.295 million** | **US$ 68.856 million** | | **Key Changes (H1 2023):** | | | | | | Net loss | — | RMB -9.648 million | RMB -9.648 million | US$ -1.331 million | | Other comprehensive income | — | RMB 3.555 million | RMB 3.555 million | US$ 490 thousand | | Share-based compensation | — | RMB 3.853 million | RMB 3.853 million | US$ 531 thousand | [Unaudited Interim Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) [Cash Flow Overview](index=5&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2023, the company experienced a significant increase in cash used in operating activities, a decrease in cash provided by investing activities, and a shift from cash used in financing activities to cash provided by financing activities, resulting in an overall net increase in cash and restricted cash Statements of Cash Flows Data | Metric | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Net cash used in operating activities | RMB -2.902 million | RMB -22.364 million | US$ -3.084 million | | Net cash provided by investing activities | RMB 58.234 million | RMB 5.481 million | US$ 756 thousand | | Net cash (used in)/provided by financing activities | RMB -41.444 million | RMB 30.280 million | US$ 4.176 million | | Effect of exchange rate changes on cash and restricted cash | RMB 194 thousand | RMB 770 thousand | US$ 106 thousand | | Net increase in cash and restricted cash | RMB 14.082 million | RMB 14.167 million | US$ 1.954 million | | Cash and restricted cash, at the beginning of year | RMB 30.908 million | RMB 101.023 million | US$ 13.932 million | | Cash and restricted cash, at the end of year | RMB 44.990 million | RMB 115.190 million | US$ 15.886 million | | Interest paid | RMB 3.786 million | RMB 1.325 million | US$ 183 thousand | | Income tax paid | RMB 4.175 million | RMB 2.774 million | US$ 383 thousand | [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization, Consolidation and Principal Activities](index=7&type=section&id=1.%20Organization,%20Consolidation%20and%20Principal%20Activities) Quhuo Limited, incorporated in the Cayman Islands, provides end-to-end operational solutions for on-demand consumer services in the PRC. Due to foreign ownership restrictions, the company operates primarily through a Variable Interest Entity (VIE) structure, maintaining effective control and consolidating the VIE's financial results. The VIE's assets, liabilities, and operational performance are detailed, showing a slight decrease in net assets and net income for the six months ended June 30, 2023 - Quhuo Limited provides end-to-end operational solutions to on-demand consumer service businesses in the People's Republic of China (PRC), including food and grocery delivery, bike-sharing, ride-hailing, and housekeeping[20](index=20&type=chunk) - The Company operates primarily through a Variable Interest Entity (VIE) structure due to PRC laws and regulations prohibiting and restricting foreign ownership of internet value-added businesses, maintaining effective control and consolidating the VIE[22](index=22&type=chunk)[23](index=23&type=chunk) VIE Financial Data | Metric | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :---------------------------- | :-------------------------- | :------------------------ | | **VIE ASSETS:** | | | | | Total current assets | RMB 648.113 million | RMB 630.297 million | US$ 86.922 million | | Total non-current assets | RMB 336.169 million | RMB 350.039 million | US$ 48.272 million | | **Total assets** | **RMB 984.282 million** | **RMB 980.336 million** | **US$ 135.194 million** | | **VIE LIABILITIES:** | | | | | Total current liabilities | RMB 489.301 million | RMB 506.292 million | US$ 69.821 million | | Total non-current liabilities | RMB 70.100 million | RMB 71.174 million | US$ 9.815 million | | **Total liabilities** | **RMB 559.401 million** | **RMB 577.466 million** | **US$ 79.636 million** | | **VIE Net asset balance** | **RMB 424.881 million** | **RMB 402.870 million** | **US$ 55.558 million** | VIE Financial Data | Metric | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :----------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Revenue | RMB 1.864 billion | RMB 1.724 billion | US$ 237.797 million | | Net income | RMB 13.133 million | RMB 5.027 million | US$ 693 thousand | VIE Financial Data | Metric | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Net cash provided by/(used in) operating activities | RMB 12.892 million | RMB -30.836 million | US$ -4.252 million | | Net cash provided by/(used in) investing activities | RMB 45.165 million | RMB -6.036 million | US$ -832 thousand | | Net cash (used in)/provided by financing activities | RMB -41.443 million | RMB 30.280 million | US$ 4.176 million | | Net increase/(decrease) in cash | RMB 16.432 million | RMB -6.374 million | US$ -878 thousand | [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting policies applied in preparing the interim condensed consolidated financial statements, including adherence to U.S. GAAP, principles of consolidation, the use of estimates, foreign currency translation, and specific policies for cash, accounts receivable, short-term investments, fair value measurements, leases, and income taxes - The unaudited interim condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information, consistent with the Company's audited consolidated financial statements for the year ended December 31, 2022[31](index=31&type=chunk) - The consolidated financial statements include the Company, its subsidiaries, the VIE, and the subsidiaries of the VIE, with all significant inter-company transactions and balances eliminated[33](index=33&type=chunk) - The Company uses RMB as its reporting currency, while the functional currency of the Company, Quhuo BVI, and Quhuo HK is US$, and the functional currency of WFOE, the VIE, and its subsidiaries in the PRC is RMB[36](index=36&type=chunk) - Short-term investments consist of structured notes with maturities of **greater than three months but less than twelve months**, and investments in alternative investment funds measured using the net asset value (NAV) per share[41](index=41&type=chunk) - The Company classifies leases as operating leases and recognizes an operating lease right-of-use (ROU) asset and lease liability based on the present value of lease payments over the lease term, using an estimated incremental borrowing rate[47](index=47&type=chunk) [Basis of Presentation](index=9&type=section&id=Basis%20of%20Presentation) - The unaudited interim condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information, consistent with the Company's audited consolidated financial statements for the year ended December 31, 2022[31](index=31&type=chunk) [Principles of Consolidation](index=9&type=section&id=Principles%20of%20Consolidation) - The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE, and the subsidiaries of the VIE, with all significant inter-company transactions and balances eliminated[33](index=33&type=chunk) [Use of Estimates](index=10&type=section&id=Use%20of%20Estimates) - The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses, with actual results potentially differing materially[35](index=35&type=chunk) [Foreign Currency](index=10&type=section&id=Foreign%20Currency) - The functional currency of the Company, Quhuo BVI, and Quhuo HK is US$, while PRC entities use RMB; the Company uses RMB as its reporting currency, with translation differences recorded in accumulated other comprehensive loss[36](index=36&type=chunk) [Convenience Translation](index=10&type=section&id=Convenience%20Translation) - Amounts in US$ are presented for convenience, translated at the noon buying rate of **US$1.00 to RMB7.2513** on June 30, 2023, without implying actual convertibility at this rate[37](index=37&type=chunk) [Cash, Cash Equivalents and Restricted Cash](index=10&type=section&id=Cash,%20Cash%20Equivalents%20and%20Restricted%20Cash) - Cash and cash equivalents include highly liquid investments with original maturities of **three months or less**; restricted cash primarily represents funds reserved in a bank account for legal liability[38](index=38&type=chunk) [Accounts Receivable and Allowance for Doubtful Accounts](index=10&type=section&id=Accounts%20Receivable%20and%20Allowance%20for%20Doubtful%20Accounts) - Accounts receivable are carried at net realizable value, with an allowance for doubtful accounts recorded when collection is no longer probable, based on specific evidence, payment history, credit-worthiness, and economic trends[39](index=39&type=chunk) [Short-term Investments](index=12&type=section&id=Short-term%20Investments%20(Accounting%20Policy)) - Short-term investments comprise structured notes with maturities of **three to twelve months** and investments in alternative investment funds measured using the net asset value (NAV) per share[41](index=41&type=chunk) [Fair Value Measurements](index=12&type=section&id=Fair%20Value%20Measurements) - The Company applies ASC 820 for fair value measurements, which establishes a **three-tier hierarchy (Level 1, 2, 3)** and **three main approaches** (market, income, cost) for valuing financial instruments[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Leases](index=12&type=section&id=Leases%20(Accounting%20Policy)) - The Company elected practical expedients under ASC 842, exempting short-term leases (**12 months or less**) from balance sheet recognition, and classifies most leases as operating leases, recognizing ROU assets and lease liabilities based on the present value of lease payments[45](index=45&type=chunk)[47](index=47&type=chunk) [Income Taxes](index=13&type=section&id=Income%20Taxes%20(Accounting%20Policy)) - The Company follows the liability method of accounting for income taxes under ASC 740, determining deferred tax assets and liabilities based on financial reporting and tax bases differences, and records a valuation allowance if realization is not more-likely-than-not[48](index=48&type=chunk) - Interest and penalties arising from underpayment of income taxes are computed in accordance with PRC tax law and classified as income tax expense[49](index=49&type=chunk) - The Company recognizes the impact of a tax position if it is 'more likely than not' to prevail, measured at the largest amount of tax benefit with a **greater than fifty percent likelihood** of realization[50](index=50&type=chunk) [3. Revenues](index=14&type=section&id=3.%20Revenues) The company's total revenues for the six months ended June 30, 2023, decreased to RMB1,736,317 thousand from RMB1,863,795 thousand in the prior year, primarily due to a reduction in on-demand delivery solution services, partially offset by a slight increase in mobility solution services Revenue by Category | Revenue Category | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | On-demand delivery solution services | RMB 1.764 billion | RMB 1.650 billion | US$ 227.489 million | | Mobility solution services | RMB 56.463 million | RMB 58.518 million | US$ 8.070 million | | Housekeeping and accommodation solutions | RMB 43.370 million | RMB 25.719 million | US$ 3.547 million | | Others | RMB 155 thousand | RMB 2.487 million | US$ 343 thousand | | **Total revenues** | **RMB 1.864 billion** | **RMB 1.736 billion** | **US$ 239.449 million** | [4. Short-term Investments](index=14&type=section&id=4.%20Short-term%20Investments) The company's short-term investments as of June 30, 2023, primarily consisted of an investment in a fund, totaling RMB63,056 thousand. Structured notes, which were RMB2,500 thousand at the end of 2022, were no longer present. The company recognized a significantly lower unrealized loss on fair value changes in H1 2023 compared to H1 2022 Short-term Investments Breakdown | Investment Type | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :----------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Structured notes | RMB 2.500 million | — | — | | Investment in fund | RMB 61.855 million | RMB 63.056 million | US$ 8.696 million | | **Total short-term investments** | **RMB 64.355 million** | **RMB 63.056 million** | **US$ 8.696 million** | - For the six months ended June 30, 2023, the Group recognized other income related to its structured notes of **RMB 119 thousand (US$ 16 thousand)**, a decrease from **RMB 721 thousand** in the same period of 2022[55](index=55&type=chunk) - The Group recognized an unrealized loss on fair value change of the investment of **RMB (1.027) million (US$ 142 thousand)** for the six months ended June 30, 2023, significantly lower than **RMB (25.401) million** in the prior year period[56](index=56&type=chunk) [5. Accounts Receivable](index=14&type=section&id=5.%20Accounts%20Receivable) Accounts receivable, net, remained stable at RMB495,006 thousand as of June 30, 2023. The allowance for doubtful accounts decreased to RMB5,856 thousand, reflecting a write-off of RMB1,275 thousand during the period. Substantially all receivables are aged within 150 days Accounts Receivable and Allowance for Doubtful Accounts | Metric | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Accounts receivable | RMB 502.177 million | RMB 500.862 million | US$ 69.072 million | | Less: allowance for doubtful accounts | RMB -7.131 million | RMB -5.856 million | US$ -808 thousand | | **Accounts receivable, net** | **RMB 495.046 million** | **RMB 495.006 million** | **US$ 68.264 million** | Accounts Receivable and Allowance for Doubtful Accounts | Metric | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :----------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Balance at beginning of year | RMB -4.651 million | RMB -7.131 million | US$ -984 thousand | | Additions | RMB -4.243 million | — | — | | Written off | RMB 1.763 million | RMB 1.275 million | US$ 176 thousand | | **Balance at end of year** | **RMB -7.131 million** | **RMB -5.856 million** | **US$ -808 thousand** | - Substantially all of the Company's accounts receivable as of December 31, 2022, and June 30, 2023, are aged within **150 days**[58](index=58&type=chunk) [6. Leases](index=16&type=section&id=6.%20Leases) The company's operating lease costs for the six months ended June 30, 2023, decreased to RMB19,439 thousand, primarily for office premises and on-demand delivery service stations. As of June 30, 2023, the weighted-average remaining lease term was 1.73 years with a weighted average incremental borrowing rate of 4.71% - Total lease cost for the six months ended June 30, 2023, was **RMB 19.439 million (US$ 2.681 million)**, a decrease from **RMB 22.776 million** in the same period of 2022[60](index=60&type=chunk) - As of June 30, 2023, the weighted-average remaining lease term was **1.73 years**, and the weighted average incremental borrowing rate was **4.71%**[60](index=60&type=chunk) - Operating cash flows used in operating leases for the six months ended June 30, 2023, amounted to **RMB 2.388 million (US$ 329 thousand)**[60](index=60&type=chunk) [7. Other Non-current Assets](index=16&type=section&id=7.%20Other%20Non-current%20Assets) Other non-current assets increased to RMB146,236 thousand as of June 30, 2023, primarily driven by an increase in rental and industry customer deposits, which are refundable upon contract termination Other Non-current Assets | Asset Type | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Rental and industry customer deposits | RMB 100.443 million | RMB 106.944 million | US$ 14.748 million | | Prepayments | RMB 33.802 million | RMB 33.237 million | US$ 4.584 million | | Long-term investments | RMB 6.055 million | RMB 6.055 million | US$ 835 thousand | | **Total other non-current assets** | **RMB 140.300 million** | **RMB 146.236 million** | **US$ 20.167 million** | - Rental and industry customer deposits, which are refundable upon termination of leases and contracts, increased from **RMB 100.443 million** to **RMB 106.944 million**[62](index=62&type=chunk) [8. Accrued Expenses and Other Current Liabilities](index=16&type=section&id=8.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Total accrued expenses and other current liabilities decreased to RMB100,755 thousand as of June 30, 2023, from RMB125,949 thousand at the end of 2022. This reduction was mainly due to decreases in other tax payables and salary and welfare payables, partially offset by an increase in amounts due to third-parties Accrued Expenses and Other Current Liabilities | Liability Type | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Amounts due to third-parties | RMB 33.157 million | RMB 44.180 million | US$ 6.093 million | | Income tax payables | RMB 13.446 million | RMB 11.383 million | US$ 1.570 million | | Other tax payables | RMB 12.025 million | — | — | | Salary and welfare payables | RMB 33.262 million | RMB 19.215 million | US$ 2.650 million | | Deposits received from ride-hailing drivers | RMB 3.234 million | RMB 3.220 million | US$ 444 thousand | | Purchase consideration payable | RMB 15.845 million | RMB 15.739 million | US$ 2.171 million | | Others | RMB 14.980 million | RMB 7.018 million | US$ 967 thousand | | **Total** | **RMB 125.949 million** | **RMB 100.755 million** | **US$ 13.895 million** | [9. Debt](index=17&type=section&id=9.%20Debt) The company's total debt increased to RMB97,993 thousand (US$13,512) as of June 30, 2023, primarily driven by an increase in short-term debt from new banking facility agreements. The weighted average interest rate for all outstanding borrowings slightly decreased to 5.12% - The weighted average interest rate for all outstanding borrowings was approximately **5.12%** as of June 30, 2023, a slight decrease from **5.18%** as of December 31, 2022[71](index=71&type=chunk) [Short-term Debt](index=17&type=section&id=Short-term%20Debt) Short-term Debt Details | Lender | Annual Interest Rates (%) | Term | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :---------------------------- | :-------------------- | :--------- | :---------------------------- | :-------------------------- | :------------------------ | | East West Bank | 5.00% | 6 months | RMB 65.000 million | RMB 65.000 million | US$ 8.964 million | | Xiamen International Bank | 6.00% | 6 months | — | RMB 15.000 million | US$ 2.069 million | | Bank of Beijing | 4.02% | 1 year | — | RMB 10.000 million | US$ 1.379 million | | Industrial Bank | 3.80% | 1 year | — | RMB 5.000 million | US$ 690 thousand | | Long-term debt, current portion | 9.99% - 10.46% | 3-4 years | RMB 434 thousand | RMB 705 thousand | US$ 96 thousand | | **Total** | | | **RMB 65.434 million** | **RMB 95.705 million** | **US$ 13.198 million** | - Short-term debt increased to **RMB 95.705 million** as of June 30, 2023, from **RMB 65.434 million** at year-end 2022, primarily due to new loans from Xiamen International Bank, Bank of Beijing, and Industrial Bank[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Long-term Debt](index=17&type=section&id=Long-term%20Debt) Long-term Debt Details | Debt Type | Annual Interest Rates (%) | Term | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :-------------------------------- | :-------------------- | :--------- | :---------------------------- | :-------------------------- | :------------------------ | | Long-term debt, current portion | 9.99% - 10.46% | 3-4 years | RMB 434 thousand | RMB 705 thousand | US$ 96 thousand | | Long-term debt, non-current portion | 9.99% - 10.46% | 3-4 years | RMB 1.303 million | RMB 1.583 million | US$ 218 thousand | | **Total** | | | **RMB 1.737 million** | **RMB 2.288 million** | **US$ 314 thousand** | - Total long-term debt increased from **RMB 1.737 million** as of December 31, 2022, to **RMB 2.288 million (US$ 314 thousand)** as of June 30, 2023[71](index=71&type=chunk) [10. Income Taxes](index=18&type=section&id=10.%20Income%20Taxes) The company's tax structure involves various jurisdictions with different tax rates, including preferential rates for certain PRC entities. For the six months ended June 30, 2023, the company recorded an income tax benefit of RMB2,395 thousand, a significant improvement from a tax expense in the prior year, resulting in a favorable effective tax rate of (30%) - The Company is incorporated in the Cayman Islands and not subject to tax; Hong Kong subsidiaries are subject to a **16.50%** corporate income tax rate[73](index=73&type=chunk) - PRC subsidiaries, VIE, and VIE's subsidiaries are generally subject to a **25% statutory rate**, with some entities qualifying for preferential rates (e.g., **15%** for Hainan free trade port enterprises, **15%** for High and New Technology Enterprises)[74](index=74&type=chunk) - The Company recorded a tax benefit of **RMB 2.395 million** for the six months ended June 30, 2023, compared to a tax expense of **RMB 6.683 million** in the prior year period[75](index=75&type=chunk) - The effective tax rate was **(30.00%)** for the six months ended June 30, 2023, a favorable change from **34.00%** in the prior year, primarily due to changes in permanent differences relative to pre-tax income/loss[75](index=75&type=chunk) [11. Loss Per Share](index=18&type=section&id=11.%20Loss%20Per%20Share) For the six months ended June 30, 2023, the basic and diluted loss per share improved to RMB(0.17) (US$(0.02)) from RMB(0.53) in the prior year, reflecting a reduced net loss attributable to ordinary shareholders. Outstanding options were excluded from diluted EPS as their effect was anti-dilutive Loss Per Share Data | Metric | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :--------------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Net loss attributable to ordinary shareholders | RMB -24.953 million | RMB -9.648 million | US$ -1.331 million | | Weighted average number of shares outstanding | 46,841,258 | 56,441,811 | 56,441,811 | | **Loss per share - basic** | **RMB -0.53** | **RMB -0.17** | **US$ -0.02** | - The effects of all outstanding options and other participating securities were excluded from the computation of diluted loss per share as their effects would be anti-dilutive during the periods[77](index=77&type=chunk) [12. Commitments and Contingencies](index=20&type=section&id=12.%20Commitments%20and%20Contingencies) The company may face legal proceedings and litigation in the ordinary course of business, such as workforce-related claims. Liabilities are recorded when a loss is probable and estimable, and based on current knowledge, outstanding legal matters are not expected to have a material adverse effect on the company's financial position or operations - The Company may be involved in legal proceedings and litigation relating to injuries caused by workforce and labor arbitration cases[79](index=79&type=chunk) - A liability is recorded when it is probable that a loss has been incurred and the amount can be reasonably estimated; current legal matters are not expected to have a material adverse effect on the Company's business, financial position, results of operations, or cash flows[79](index=79&type=chunk) [13. Related Party Transactions](index=20&type=section&id=13.%20Related%20Party%20Transactions) The company engages in transactions with related parties, including Hainan Huiliu Tianxia Network Technology Co., Ltd. and Shenyang Bokai Network Technology Co., Ltd. Amounts due from Hainan Huiliu decreased to RMB1,430 thousand, and labor consulting service costs received from related parties significantly decreased to RMB21,693 thousand for the six months ended June 30, 2023 - Related parties include Hainan Huiliu Tianxia Network Technology Co., Ltd. (controlled by a principal shareholder) and Shenyang Bokai Network Technology Co., Ltd. (controlled by management)[80](index=80&type=chunk) Related Party Transactions Data | Related Party | As of December 31, 2022 (RMB million/billion) | As of June 30, 2023 (RMB million/billion) | As of June 30, 2023 (US$ million/billion) | | :-------------------- | :---------------------------- | :-------------------------- | :------------------------ | | Hainan Huiliu | RMB 3.876 million | RMB 1.430 million | US$ 197 thousand | - Amounts due from Hainan Huiliu were unsecured, interest-free, and had fixed terms of repayment[81](index=81&type=chunk) Related Party Transactions Data | Service Provider | Six Months Ended June 30, 2022 (RMB million/billion) | Six Months Ended June 30, 2023 (RMB million/billion) | Six Months Ended June 30, 2023 (US$ million/billion) | | :-------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Hainan Huiliu | RMB 41.747 million | RMB 21.693 million | US$ 2.992 million | | Shenyang Bokai | RMB 1.388 million | — | — | | **Total** | **RMB 43.135 million** | **RMB 21.693 million** | **US$ 2.992 million** | [14. Restricted Net Assets](index=20&type=section&id=14.%20Restricted%20Net%20Assets) PRC laws and regulations impose restrictions on the transfer of certain net assets from the company's PRC subsidiaries and VIEs to the Company, including paid-in capital, statutory reserves, and pledged assets. As of June 30, 2023, these restricted net assets totaled approximately RMB196,015 thousand (US$27,032) - Under PRC laws and regulations, there are restrictions on the Company's PRC subsidiaries and VIE with respect to transferring certain of their net assets to the Company (e.g., dividends, loans, advances)[84](index=84&type=chunk) - Amounts restricted include paid-in capital, statutory reserve of PRC subsidiaries, and pledged or collateralized accounts receivable and property and equipment of the VIE, totaling approximately **RMB 196.015 million (US$ 27.032 million)** as of June 30, 2023[84](index=84&type=chunk)

Financial Data and Key Metrics Changes - Quhuo achieved a 78.6% year-on-year decrease in net losses and an 87.0% decrease in adjusted net losses in the first half of 2023 [5] - Adjusted EBITDA increased by 2.8%, reaching RMB11.1 million [5] - Total revenue for the first half of 2023 was RMB1,736.3 million, down from RMB1,863.8 million in the same period of 2022 [16] - Net loss attributed to Quhuo Limited was RMB9.6 million compared to RMB25 million in the first half of 2022 [20] Business Line Data and Key Metrics Changes - Revenue from on-demand delivery solutions was RMB1,649.6 million, a decrease of 6.5% from RMB1,763.8 million in the first half of 2022 [16] - Revenue from mobility service solutions increased by 3.6% to RMB58.5 million, driven by the commencement of vehicle export solutions [17] - Revenue from housekeeping and accommodation solutions decreased by 35.2% to RMB28.2 million, primarily due to business model construction [17] Market Data and Key Metrics Changes - Interest income increased from RMB191,000 in the first half of 2022 to RMB742,000 in the first half of 2023 [7] - 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 [7] Company Strategy and Development Direction - Quhuo is focusing on creating a second growth trajectory through mobility service solutions and has launched an international business under Quhuo International [5][9] - The company aims to build a network of automotive dealerships in 58 countries, focusing on electric vehicle exports [9][10] - Quhuo plans to leverage its second-hand car repair capabilities to enhance operations and optimize used car exports [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the vehicle export solutions, attributing early success to existing relationships in the ride-hailing sector and operational experience [12][15] - The company anticipates continued financial returns from signed service contracts in the second half of the year [9] Other Important Information - Overall operating costs decreased by 5.7% year-on-year, with general and administrative expenses down by 18% to RMB80.1 million [6][18] - The company reported other income of RMB6 million compared to losses of RMB8.3 million in the first half of 2022 [19] Q&A Session Summary Question: Is there a relationship between the newly launched vehicle export solution and the Company's original business? - Management clarified that the vehicle export solution is connected to the existing mobility sector and leverages vehicle information and maintenance resources to enhance local community services [21][22] - The vehicle export business allows for global market expansion while maintaining a beneficial relationship with the core business [23]

Company Operations - As of December 31, 2022, the company had 540,000 registered workers on its platform, with an average of 57,000 monthly active workers in Q4 2022[311]. - The company operates in 109 cities across 30 provinces, municipalities, and autonomous regions in China as of December 31, 2022[312]. - As of December 31, 2022, the company had over 400 full-time ride-hailing drivers on its platform, fulfilling approximately 1.6 million rides in 2022[324]. - The company provides on-demand delivery solutions, mobility service solutions, and housekeeping solutions, focusing on premium delivery models since 2015[317]. - The company delivered shared-bike maintenance solutions in 41 cities and fulfilled approximately 54,100 freight service orders in 2022[325][327]. - The average monthly active workers decreased slightly from 59,400 in Q4 2021 to 57,000 in Q4 2022, indicating a need for strategies to retain workforce[336]. - The company operates across 109 cities in China, providing solutions for multiple industries in 33 cities as of December 31, 2022[331]. Financial Performance - Revenue for 2022 was RMB3,820.4 million (US$553.9 million), a decrease from RMB4,025.3 million in 2021[439]. - Net loss for 2022 was RMB16.4 million (US$2.4 million), compared to a net loss of RMB191.2 million in 2021[439]. - Adjusted net income for 2022 was RMB3.3 million (US$0.5 million), while adjusted net loss for 2021 was RMB122.3 million[439]. - Total revenues for the years 2020, 2021, and 2022 were RMB2,580.8 million, RMB4,025.3 million, and RMB3,820.4 million (US$553.9 million), respectively[456]. - Revenues decreased by 5.1% from RMB4,025.3 million in 2021 to RMB3,820.4 million (US$553.9 million) in 2022, primarily due to a decline in delivery orders amid COVID-19 resurgence[484]. - Revenues from on-demand delivery solutions fell by 5.0% from RMB3,829.0 million in 2021 to RMB3,638.7 million (US$527.6 million) in 2022, with geographical coverage decreasing from 1,273 to 1,118 delivery areas[484]. - The company recorded a non-GAAP adjusted net income/(loss) of RMB77.1 million, RMB(122.3) million, and RMB3.3 million (US$485,000) for the years 2020, 2021, and 2022, respectively[455]. - Adjusted EBITDA was RMB58.6 million in 2022, compared to a loss of RMB72.7 million in 2021[482]. - The company experienced a net loss attributable to ordinary shareholders of RMB13.1 million (US$1.9 million) in 2022, an improvement from a loss of RMB157.9 million in 2021[482]. - Operating income improved from a loss of RMB139.8 million in 2021 to an income of RMB35.6 million (US$5.2 million) in 2022[493]. Investments and Acquisitions - The company completed an initial public offering in July 2020, raising approximately US$32.5 million in net proceeds[305]. - The company acquired a 54.22% equity interest in Lailai Information Technology in November 2020 and the remaining 45.78% in January 2022[305]. - The company executed a financial support undertaking letter to provide unlimited financial support to the VIE, effective until the acquisition of all equity interests[434]. Technology and Innovation - The company has developed Quhuo+, a proprietary technology infrastructure, to streamline operational management and enhance service quality[314]. - The company plans to enhance its housekeeping solutions by integrating AI chatbot technologies, specifically Baidu's ERNIE Bot, to improve service efficiency[328]. - Continued investment in technology infrastructure, including Quhuo+, is essential for optimizing operational efficiency and supporting growth[446]. - A dedicated team of 53 technology R&D professionals with an average of seven years of industry experience supports the company's technology infrastructure[344]. Regulatory Environment - The Foreign Investment Law, effective January 1, 2020, replaced previous laws and aims to unify corporate legal requirements for foreign and domestic enterprises in China[354]. - Foreign invested entities are granted national treatment, except in industries listed as "restricted" or "prohibited" in the negative list[355]. - Expropriation of foreign investments is prohibited, and mandatory technology transfer is not allowed under the Foreign Investment Law[356]. - The telecommunications industry in China is heavily regulated, requiring various licenses and permits for operation[359]. - The Cyber Security Law, effective June 1, 2017, mandates internet service providers to implement measures for network security and personal data protection[369]. - The Data Security Law, effective September 1, 2021, introduces a data classification system and imposes export restrictions on certain data[373]. - The Personal Information Protection Law took effect on November 1, 2021, establishing strict rules for processing personal information, particularly sensitive data, requiring specific purposes and protective measures[375]. Employment and Labor - Employers are required to provide social insurance benefits covering pension, unemployment, maternity, labor injury, and medical insurance, with penalties for non-compliance[386]. - Employers must register and deposit housing funds for employees, with contributions no less than 5% of the monthly average salary from the previous year[386]. - Flexible employment arrangements are encouraged by the government to enhance income opportunities and expand employment channels[390]. Revenue and Cost Analysis - Revenue from on-demand delivery solutions accounted for 98.3%, 95.1%, and 95.3% of total revenues in 2020, 2021, and 2022, generating RMB2,536.8 million, RMB3,829.0 million, and RMB3,638.7 million (US$527.6 million) respectively[457]. - The cost of revenues was RMB2,388.3 million, RMB3,849.7 million, and RMB3,567.7 million (US$517.3 million) for the years 2020, 2021, and 2022, respectively[461]. - General and administrative expenses were RMB203.0 million, RMB240.7 million, and RMB213.6 million (US$31.0 million) for the years 2020, 2021, and 2022, respectively[469]. - Research and development expenses were RMB13.1 million, RMB20.1 million, and RMB12.5 million (US$1.8 million) for the years 2020, 2021, and 2022, respectively[471]. - The company incurred service fees paid to workers and team leaders of RMB2,177.4 million, RMB3,452.9 million, and RMB3,187.6 million (US$462.2 million) in 2020, 2021, and 2022, respectively[461].

Financial Data and Key Metrics Changes - In 2022, Quhuo achieved full-year revenue of RMB3,820.4 million, a decrease from RMB4,025.3 million in 2021, representing a decline of approximately 5% [18] - Gross profit for 2022 was RMB252.7 million, resulting in a gross margin of 6.6%, an increase from 4.4% in 2021 [7] - Operating income turned positive at RMB35.6 million in 2022, compared to an operating loss of RMB139.1 million in 2021 [20] - Net loss attributable to Quhuo Limited was RMB13.1 million in 2022, significantly improved from a net loss of RMB157.9 million in 2021 [21] - Adjusted EBITDA for 2022 was RMB58.6 million, compared to an adjusted EBITDA loss of RMB72.7 million in 2021 [21] Business Line Data and Key Metrics Changes - Revenue from on-demand food delivery solutions was RMB3,638.7 million in 2022, down about 5% from RMB3,829 million in 2021 [18] - Mobility service solutions generated revenue of RMB108.1 million, reflecting a decrease of 1.9% from RMB110 million in 2021 [18] - Housekeeping and accommodation solutions revenue was RMB73.6 million, indicating a decrease of 14.6% from RMB86.2 million in 2021 [19] Market Data and Key Metrics Changes - The second half of 2022 saw a revenue decline to RMB1,956.6 million compared to RMB2,187 million in the same period of 2021 [14] - The on-demand food delivery revenue in the second half of 2022 was RMB1,874.9 million, a 9% decline from RMB2,071 million in the second half of 2021 [14] - Mobility service solutions revenue in the second half of 2022 was RMB51.6 million, down 23.5% from RMB67.4 million in the second half of 2021 [15] - Housekeeping and accommodation solutions revenue in the second half of 2022 was RMB30 million, a decrease of 37.6% from RMB48.2 million in the second half of 2021 [15] Company Strategy and Development Direction - The company aims to improve profitability after increasing revenues, focusing on achieving scale in both revenue and profit [23] - From 2023 to 2025, the strategy involves transforming from a localized life service provider to an operation service provider, empowering small and medium-sized service providers through SaaS services [24][25] - The company plans to leverage its long-term cooperation with consumption online platforms to upgrade its role from order fulfillment to operation service provider [25] Management's Comments on Operating Environment and Future Outlook - The management noted that the COVID-19 pandemic significantly impacted the business, but with the end of pandemic control, services are expected to rebound rapidly in 2023 [12] - The company has launched its international business in February 2023, aiming to export industry and Internet products and services to overseas partners [13] - Management expressed confidence that the global business will provide a new growth curve for the company [13] Other Important Information - The cost of revenue for 2022 was RMB3,567.7 million, a 7.3% year-over-year decrease, attributed to reduced service fees paid to workers [19] - General and administrative expenses decreased by 11.3% to RMB213.6 million, primarily due to a reduction in share-based compensation [19] Q&A Session Summary Question: What is the strategy in 2022 to improve profitability after increasing revenues? What is the company strategy in 2023? - The strategy for 2021 and 2022 focused on improving profitability after increasing revenues, with an emphasis on achieving scale in both revenue and profit [23] - From 2023 to 2025, the company will extend its industry ecosystem to localized life, transforming into an operation service provider and empowering small and medium-sized service providers through SaaS services [24][25]

Quhuo Limited (NASDAQ:QH) Q2 2022 Results Conference Call November 15, 2022 7:00 AM ET Company Participants Leslie Yu - Chairman and Chief Executive Officer Barry Ba - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH Capital Partners Operator Ladies and gentlemen, thank you for standing by, and welcome to Quhuo's First Half Year of 2022 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. If you may have any objections, you may disconnect at t ...