Quhuo(QH) - 2024 H2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2024, the company achieved revenue of RMB 3 billion, with adjusted EBITDA of RMB 9 million, demonstrating positive EBITDA for three consecutive fiscal years [6][18] - Adjusted net income reached RMB 1.6 million, while general and administrative expenses decreased by 19% year on year, reflecting improved operational efficiency [6][18] - Total revenue for the fiscal year 2024 was RMB 3,046.8 million, a decrease of 17.7% compared to RMB 3,702.4 million in 2023 [26][27] Business Line Data and Key Metrics Changes - Revenue from on-demand delivery solutions was RMB 2,828.5 million, a decrease of 17.1% due to the disposal of underperforming service stations [26][27] - Revenue from mobility service solutions decreased by 25.1%, primarily due to a reduction in vehicles sold in the vehicle export solution business [26][27] - Gross profit for bike maintenance and ride building services grew significantly, with gross profit margin for housekeeping and accommodation services increasing from 26% to 36% [8][9] Market Data and Key Metrics Changes - The used vehicle export business, represented by Qubo International, exported over 3,500 cars to various regions, establishing a recognized certification brand and service system [10][12] - The company has focused on enhancing operational efficiency in the supply chain, particularly in Azerbaijan, through technology and resource export solutions [12][13] Company Strategy and Development Direction - The company is undergoing a strategic transformation aimed at balancing commercial and social value through deepening, empowering, and innovation strategies [5][6] - The strategy of empowering focuses on stimulating collaborative dynamics and driving ecosystem synergy, particularly through partnerships like that with New World for beef supply chain solutions [10][14] - The innovation strategy aims to activate existing networks and explore new growth frontiers, transitioning from a service provider to a supply chain enabler [13][14] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining business quality amidst market uncertainties to generate long-term development momentum [9][18] - The partnership with New World is expected to contribute significant revenues by 2025, with plans to expand the supply chain model to other food service providers [32] Other Important Information - The company provided flexible employment opportunities for over 83,000 workers, creating a safety net through commercial insurance and vocational training [17] - The new energy vehicles exported are expected to reduce carbon emissions significantly, aligning with the company's social responsibility goals [17] Q&A Session Summary Question: What is the current progress of the cooperation with New World and what are the company's expectations? - The partnership with New World has improved the efficiency of beef delivery and is expected to contribute significant revenues by 2025, with plans to expand the model to other food service providers [32]