Core Insights - New car prices are at an all-time high, with average monthly payments reaching $766 and average amounts financed at $43,218, driving consumers towards the used car market [1][2] - Companies like Carvana, Autoation, and CarMax are benefiting from this trend, with stock prices increasing significantly [2] - Valvalene, which operates 2,300 car servicing stores, is positioned to capitalize on the growing demand for maintenance services as consumers hold onto their older vehicles longer [2][3] Company Performance - Valvalene's CEO noted that the average age of vehicles in the U.S. has increased to nearly 13 years, leading to higher maintenance needs and revenue opportunities for the company [4] - The company has been experiencing a steady influx of customers seeking maintenance for their older vehicles, which aligns with the trend of consumers opting for used cars over new ones [3][4] - Valvalene's growth in the electric vehicle (EV) segment has slowed since the removal of EV subsidies, with EV penetration in the car park currently below 2% [6][7] Market Dynamics - The shift towards maintaining older vehicles rather than purchasing new ones is expected to continue, as consumers find it more economical to keep their current cars [5] - Valvalene's hybrid business is performing well, with penetration rates comparable to traditional internal combustion engine vehicles [8] - The company aims to improve its market perception and investor understanding following a significant acquisition and a focus on clear financial commitments for growth [12][10] Community Engagement - Valvalene has a strong commitment to community involvement, having raised over $1.8 million for the Children's Miracle Network and engaging in various charitable activities [15][16]

Financial Data and Key Metrics Changes - Total revenue decreased by 30.2% from RMB 1,619 million in H1 2024 to RMB 1,131 million in H1 2025 [15] - Gross profit was RMB 24.8 million in H1 2024 and decreased to RMB 4.1 million in H1 2025 [17] - Net loss increased to RMB 53 million in H1 2025 from RMB 46.5 million in H1 2024, representing a 14% increase [21] Business Line Data and Key Metrics Changes - Revenue from on-demand delivery solutions was RMB 1,039 million, a decrease of 30.7% from RMB 1,499 million in H1 2024 [15] - Housekeeping and accommodation solutions revenue increased by 70.8% year-over-year to RMB 34.8 million [16] - Mobility service solutions revenue decreased by 42.8% to RMB 57.4 million due to a new business model and optimization efforts [16] Market Data and Key Metrics Changes - The domestic food delivery market experienced significant changes, with increased competition and structural adjustments by major customers [4] - Market share began to increase in May 2025, indicating potential for scalable profitability despite short-term pressures [4] Company Strategy and Development Direction - The company is pursuing a dual-track strategy: optimizing the core business for quality growth and accelerating the development of the second core business [3] - Focus on transitioning from a fulfillment service provider to a supply chain enabler, with a new cooperation with JD Jingdong Takeaway [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the on-demand delivery business faced pressures but maintained resilience and made progress in the second core business [13] - The company plans to continue focusing on operational efficiency and refining business models to deliver sustainable long-term returns [14] Other Important Information - The housekeeping and accommodation segment is becoming a significant driver of profitability, with strong growth in both revenue and gross profit [5] - The company is involved in a trust plan to enhance property quality and rental value, which is expected to generate stable returns for investors [9] Q&A Session Summary Question: What is Quhuo's specific role in the trust corporation and its impact on future financial performance? - Quhuo Ltd is a core operator in the trust project, turning business revenues into data assets and then into financial assets, which strengthens liquidity and increases asset returns [24] - The trust structure allows for monetizing future cash flows, improving cash flow flexibility and enabling expansion in current and new businesses [25]