Quhuo(US:QH)2023-04-14 19:00Financial Data and Key Metrics Changes - In 2022, Quhuo achieved full-year revenue of RMB3,820.4 million, a decrease from RMB4,025.3 million in 2021, representing a decline of approximately 5% [18] - Gross profit for 2022 was RMB252.7 million, resulting in a gross margin of 6.6%, an increase from 4.4% in 2021 [7] - Operating income turned positive at RMB35.6 million in 2022, compared to an operating loss of RMB139.1 million in 2021 [20] - Net loss attributable to Quhuo Limited was RMB13.1 million in 2022, significantly improved from a net loss of RMB157.9 million in 2021 [21] - Adjusted EBITDA for 2022 was RMB58.6 million, compared to an adjusted EBITDA loss of RMB72.7 million in 2021 [21] Business Line Data and Key Metrics Changes - Revenue from on-demand food delivery solutions was RMB3,638.7 million in 2022, down about 5% from RMB3,829 million in 2021 [18] - Mobility service solutions generated revenue of RMB108.1 million, reflecting a decrease of 1.9% from RMB110 million in 2021 [18] - Housekeeping and accommodation solutions revenue was RMB73.6 million, indicating a decrease of 14.6% from RMB86.2 million in 2021 [19] Market Data and Key Metrics Changes - The second half of 2022 saw a revenue decline to RMB1,956.6 million compared to RMB2,187 million in the same period of 2021 [14] - The on-demand food delivery revenue in the second half of 2022 was RMB1,874.9 million, a 9% decline from RMB2,071 million in the second half of 2021 [14] - Mobility service solutions revenue in the second half of 2022 was RMB51.6 million, down 23.5% from RMB67.4 million in the second half of 2021 [15] - Housekeeping and accommodation solutions revenue in the second half of 2022 was RMB30 million, a decrease of 37.6% from RMB48.2 million in the second half of 2021 [15] Company Strategy and Development Direction - The company aims to improve profitability after increasing revenues, focusing on achieving scale in both revenue and profit [23] - From 2023 to 2025, the strategy involves transforming from a localized life service provider to an operation service provider, empowering small and medium-sized service providers through SaaS services [24][25] - The company plans to leverage its long-term cooperation with consumption online platforms to upgrade its role from order fulfillment to operation service provider [25] Management's Comments on Operating Environment and Future Outlook - The management noted that the COVID-19 pandemic significantly impacted the business, but with the end of pandemic control, services are expected to rebound rapidly in 2023 [12] - The company has launched its international business in February 2023, aiming to export industry and Internet products and services to overseas partners [13] - Management expressed confidence that the global business will provide a new growth curve for the company [13] Other Important Information - The cost of revenue for 2022 was RMB3,567.7 million, a 7.3% year-over-year decrease, attributed to reduced service fees paid to workers [19] - General and administrative expenses decreased by 11.3% to RMB213.6 million, primarily due to a reduction in share-based compensation [19] Q&A Session Summary Question: What is the strategy in 2022 to improve profitability after increasing revenues? What is the company strategy in 2023? - The strategy for 2021 and 2022 focused on improving profitability after increasing revenues, with an emphasis on achieving scale in both revenue and profit [23] - From 2023 to 2025, the company will extend its industry ecosystem to localized life, transforming into an operation service provider and empowering small and medium-sized service providers through SaaS services [24][25]