Core Viewpoint - Quhuo Limited continues to implement its dual-track strategy focusing on optimizing on-demand delivery solutions and expanding housekeeping and accommodation services to enhance profitability despite a challenging market environment [2][10]. Financial Performance - Quhuo generated total revenue of RMB1,131.4 million in the first half of 2025, with significant growth in its housekeeping and accommodation businesses, which saw revenue increase by 70.8% year over year and gross profit rise by 63.4% [3][6]. On-Demand Delivery Solutions - The company faced intensified competition in China's food delivery market, leading to increased costs for service providers and strategic adjustments by major clients [3]. - Quhuo focused on workforce management and operational optimization, which resulted in market share gains relative to key competitors since May 2025 [4]. - Management streamlined its structure by exiting underperforming sites and reallocating resources to higher-revenue locations, expecting economies of scale and profitability to materialize in the second half of 2025 [5]. Housekeeping and Accommodation Solutions - The Chengtu homestay business experienced an 83.6% year-over-year revenue growth, with gross profit surging 390.8%, achieving a gross margin of 55.2% [9]. - Lailai, the hotel and home services segment, saw a revenue increase of 63.6% year over year, driven by a partnership with Ke Holdings Inc. [9]. New Business Initiatives - Quhuo entered a partnership with JD.com to provide on-demand delivery services in select cities, which is expected to generate incremental revenue [7]. - The beef supply chain partnership with NIU World generated approximately RMB14.4 million in revenue, marking a significant step in Quhuo's transformation into a supply chain enabler [8]. Future Outlook - The company plans to continue executing its dual-track strategy, focusing on efficiency, structural optimization, and innovation to deliver sustainable long-term returns for shareholders [10].