Market Overview - In December 2025, the national used car market transaction volume reached 1.8711 million units, with a month-on-month increase of 7.15% and a year-on-year decrease of 1.53%. The total transaction amount was 120.672 billion yuan [3] - For the entire year of 2025, the cumulative transaction volume of used cars was 20.108 million units, representing a year-on-year growth of 2.52%, with a total transaction amount of 1,289.79 billion yuan [3][13] Weekly Analysis - From January 19 to 25, 2026, the average daily transaction volume of used cars was 69,800 units, showing a week-on-week decrease of 4.18%, ending a three-week growth trend. The market is experiencing normal fluctuations after a phase of adjustment [6] Segment Market Changes - In December 2025, the transaction volume of basic passenger cars was 1.0273 million units, with a month-on-month increase of 6.22% but a year-on-year decrease of 5.96%. SUVs sold 244,100 units, with a month-on-month increase of 7.51% and a year-on-year decrease of 4.25% [8] - Commercial vehicles saw 109,900 buses sold, with a month-on-month increase of 7.41% and a year-on-year increase of 6.01%. The transaction volume of trucks was 161,100 units, with a month-on-month increase of 6.36% and a year-on-year increase of 7.37% [8] Vehicle Age Analysis - In December 2025, vehicles aged 3-6 years accounted for the largest share of transactions at 42.97%, with a month-on-month increase of 0.25% but a year-on-year decrease of 7.47%. Vehicles under 3 years old accounted for 28.74%, with a month-on-month increase of 1.85% and a year-on-year increase of 2.25% [18] Price Range Analysis - In December 2025, the largest share of used car transactions was in the price range of under 30,000 yuan, accounting for 29.2%, with a month-on-month increase of 1.2 percentage points. The 30,000-50,000 yuan range accounted for 27.3%, with a month-on-month decrease of 2.3 percentage points [25] Regional Performance - In December 2025, the Northeast region showed significant growth with a month-on-month increase of nearly 10%. The East China region had a transaction volume of 519,800 units, with a month-on-month increase of 7.51% [26] New Energy Vehicle Market - In December 2025, the transaction volume of used new energy vehicles reached 168,800 units, with a month-on-month increase of 8.7% and a year-on-year increase of 36.5%. For the entire year, the cumulative transaction volume was 1.609 million units, representing a year-on-year growth of 42.5% [34] Transfer Rate Analysis - In December 2025, the transfer rate of used cars was 34.90%, with a month-on-month increase of 1.02 percentage points and a year-on-year increase of 4.67 percentage points. The total transfer volume was 653,000 units, with a month-on-month increase of 10.39% [50]

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]