Quhuo(US:QH)2025-09-26 13:02Financial 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 RMB 4.1 million in H1 2025, indicating a significant decline [17] - Net loss increased to RMB 53 million in H1 2025 from RMB 46.5 million in H1 2024, representing a 14% increase [22] Business Line Data and Key Metrics Changes - Revenue from on-demand delivery solutions was RMB 1,039 million, down 30.7% from RMB 1,499 million in H1 2024 [15] - Housekeeping and accommodation solutions revenue surged by 70.8% year-over-year to RMB 34.8 million from RMB 20.4 million [16] - Mobility service solutions revenue fell by 42.8% to RMB 57.4 million from RMB 100.5 million in H1 2024 [16] Market Data and Key Metrics Changes - The domestic food delivery market experienced significant changes, with increased competition and cost burdens being passed to service providers [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] - The company aims to leverage its operational capabilities and financial empowerment to create a sustainable growth path [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the local service industry and emphasized the importance of adapting to structural shifts [3] - The company believes that improvements in operational efficiency will become evident in the second half of 2025 [5] - Future growth is expected to come from both the core business and new initiatives, with a focus on operational efficiency and market opportunities [14] Other Important Information - The company has closed underperforming sites to concentrate resources on higher return areas, reflecting confidence in the long-term value of the on-demand delivery business [5] - The housekeeping and accommodation segment is becoming a significant driver of profitability, with strong growth reported [6] Q&A Session Summary Question: Could you explain Quhuo's specific role in the trust corporation and what impact this corporation may have on future financial performance? - Management explained that Quhuo Ltd is a core operator in the trust project, turning business revenues into data assets and then into financial assets, which enhances liquidity and increases asset returns [25][26]