Quhuo(US:QH)2024-08-28 11:29Financial Performance - Total revenues for the six months ended June 30, 2024, were RMB 1,619,938, a decrease from RMB 1,736,317 for the same period in 2023, representing a decline of approximately 6.7%[6] - The net loss attributable to ordinary shareholders of Quhuo Limited for the six months ended June 30, 2024, was RMB 52,535, compared to a net loss of RMB 9,648 for the same period in 2023, indicating a significant increase in losses[6] - The company reported a comprehensive loss of RMB 44,665 for the six months ended June 30, 2024, compared to a comprehensive loss of RMB 2,135 for the same period in 2023, indicating a worsening financial position[6] - Revenue for the six months ended June 30, 2024, was RMB 1,561,087, a decrease of 9.5% compared to RMB 1,724,336 for the same period in 2023[24] - The net loss for the six months ended June 30, 2024, was RMB 37,556, compared to a net income of RMB 5,027 for the same period in 2023[24] Assets and Liabilities - Total current assets decreased from RMB 699,433 as of December 31, 2023, to RMB 663,812 as of June 30, 2024, reflecting a decline of approximately 5.1%[2] - Total liabilities decreased slightly from RMB 526,658 as of December 31, 2023, to RMB 506,420 as of June 30, 2024, a reduction of about 3.0%[2] - Cash and cash equivalents decreased from RMB 45,185 as of December 31, 2023, to RMB 39,930 as of June 30, 2024, a decline of approximately 11.0%[2] - The total shareholders' equity decreased from RMB 505,278 as of December 31, 2023, to RMB 474,854 as of June 30, 2024, a decline of about 6.0%[4] - Total assets as of June 30, 2024, were RMB 880,548, down from RMB 920,373 as of December 31, 2023[21] - Total liabilities as of June 30, 2024, were RMB 504,411, a decrease from RMB 514,286 as of December 31, 2023[21] Cash Flow - Cash flows from operating activities resulted in a net cash used of RMB 41,488 for the six months ended June 30, 2024, compared to RMB 22,364 for the same period in 2023[12] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (30,556), slightly improved from RMB (30,836) in the same period of 2023[25] - The net cash provided by investing activities increased to RMB 26,523 for the six months ended June 30, 2024, compared to RMB (6,036) in the same period of 2023[25] - The net cash used in financing activities was RMB (16,082) for the six months ended June 30, 2024, a significant decrease from RMB 30,280 in the same period of 2023[25] Shareholder Information - The number of outstanding ordinary shares increased from 61,676,213 as of December 31, 2023, to 103,081,893 as of June 30, 2024, reflecting an increase of approximately 67.0%[9] - A total of 793,868,246 Class A Ordinary Shares were issued following the conversion of the convertible notes on August 8, 2024[81] Expenses - Research and development expenses for the six months ended June 30, 2024, were RMB 4,939, down from RMB 6,645 for the same period in 2023, a decrease of approximately 25.6%[6] - The total accrued expenses and other current liabilities decreased significantly from RMB 108,132 as of December 31, 2023 to RMB 61,972 as of June 30, 2024[60] Investments and Acquisitions - The company proposed to acquire a total of 39.1% equity interest in Quhuo International Trade (HK) Limited from minority shareholders[81] - The acquisition includes a 9.46% equity interest to be paid by transferring an investment in a mutual fund[81] - Additionally, the company plans to acquire a 29.64% equity interest by issuing a senior convertible promissory note[81] Related Party Transactions - As of June 30, 2024, the amounts due to related party Hainan Huiliu increased to RMB 2,430 (US$334) from nil as of December 31, 2023[77] - The company received labor consulting services from Hainan Huiliu, with costs recorded at RMB 19,671 for the six months ended June 30, 2024[78] Other Financial Metrics - The weighted average interest rate for all outstanding borrowings decreased from approximately 5.10% as of December 31, 2023 to 4.36% as of June 30, 2024[67] - The effective tax rate from continuing operations improved from (30)% for the six months ended June 30, 2023 to (5)% for the same period in 2024[71] - The company recognized an unrealized loss on fair value change of the investment of RMB (4,465) for the six months ended June 30, 2024, compared to RMB (1,027) in the same period of 2023[52]