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Quhuo Ltd

Quhuo Reports Unaudited Financial Results for the First Half of 2024

BEIJING , Aug. 28, 2024 /PRNewswire/ -- Quhuo Limited (NASDAQ: QH) ("Quhuo," the "Company," "we" or "our"), a leading gig economy platform focusing on local life services in China, today reported its unaudited financial results for the six months ended June 30, 2024.

Financial and Operational Highlights for the First Half of 2024 

  • Revenues from mobility service solutions were RMB 100.5 million (US$13.8 million), representing an increase of 71.7% year-over-year.
  • General and administrative expenses were RMB70.9 million (US$9.8 million), representing a decrease of 13.2% year-over-year.
  • Quhuo International has signed service contracts for over 3,000 units of vehicles under its vehicle export solutions, of which 815 units have been shipped in the first half of 2024.
  • The Company has expanded services to 132 cities nationwide, representing a year-over-year increase from 119 cities in the first half of 2023.

Mr. Leslie Yu, Chairman and CEO of Quhuo, stated, "We are pleased to conclude that in the first half of 2024, our business growth remained strong, led by a 71.7% increase in revenue from our mobility solution. While the first quarter was impacted by seasonal factors, the second quarter saw a strong rebound, with profitability exceeding last year's levels. We also made significant strides in operational efficiency, highlighted by a reduction in general and administrative expenses.

In response to global market trends and domestic policy shifts, our vehicle export solutions have experienced strong growth, quickly becoming a key driver of our overall expansion. Meanwhile, our housekeeping services and others have also shown consistent progress, steadily expanding market reach and further solidifying our presence in the market. Together, these developments are propelling us forward as we continue to adapt and grow.

Looking forward, we aim to further advance our housekeeping services within China, with upcoming partnerships with leading long-term rental platforms. We also see considerable growth potential in our vehicle export business, with expectations for increased revenue and shipments. With a strategic focus on global expansion, we are advancing our overseas technology initiatives, with on-demand delivery and ride-hailing services currently being piloted in select international cities. Through these developments, we aim to create greater commercial and social value."

Unaudited Financial Results of the First Half of 2024 Compared to the First Half of 2023

Total revenues decreased by 6.7% from RMB1,736.3 million in the six months ended June 30, 2023 to RMB1,619.9 million (US$222.9 million) in the six months ended June 30, 2024 due to the following reasons.

  • Revenues from on-demand delivery solutions were RMB1,499.1 million (US$206.3 million), representing a slight decrease of 9.1% from RMB1,649.6 million in the six months ended June 30, 2023, primarily because we optimized our business by disposing several inferior business districts, which leads to a decrease in revenue scale.
  • Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing and vehicle export solutions, were RMB100.5 million (US$13.8 million), representing a remarkable increase of 71.7% from RMB58.5 million in the six months ended June 30, 2023, primarily due to the growth of our vehicle export solutions, which generated revenue of RMB58.6 million.
  • Revenues from housekeeping and accommodation solutions and other services were RMB20.4 million (US$2.8 million), representing a decrease of 27.8% from RMB28.2 million in the six months ended June 30, 2023, primarily due to the transition of business model in hotel service.

Cost of revenues was RMB1,595.2 million (US$219.5 million), representing a decrease of 4.5% year-over-year, primarily attributable to the decreases in our labor cost and service fees paid to team leaders, in line with the decrease in revenue from on-demand delivery solutions.

General and administrative expenses were RMB70.9 million (US$9.8 million), representing a decrease of 13.2% from RMB81.6 million in the six months ended June 30, 2023, primarily due to the decreases in (1) professional service fees from RMB22.2 million in the first half of 2023 to RMB14.5 million (US$2.0 million) in the first half of 2024, (2) welfare and business development expenses and office expenses from RMB17.3 million in the first half of 2023 to RMB12.4 million (US$1.7 million) in the first half of 2024, and (3) share-based compensation expenses from RMB3.9 million in the first half of 2023 to nil in the first half of 2024. All of the above are owing to our expense control through technological optimization.

Research and development expenses were RMB4.9 million (US$0.7 million), representing a decrease of 25.7% from RMB6.6 million in the six months ended June 30, 2023, primarily due to the decrease in the average compensation level for our research and development personnel as we restructured our R&D team.

We recorded gain on disposal of assets, net of RMB8.9 million and RMB7.0 million (US$1.0 million) in the six months ended June 30, 2023 and 2024, respectively, primarily due to the transfer of certain customer relationships related to our on-demand delivery solutions to third parties.

Our interest income was RMB0.7 million and RMB0.3 million (US$36,000) in the six months ended June 30, 2023 and 2024, respectively, primarily relating to our bank deposits and structured notes.

Our interest expense remained stable at RMB2.3 million (US$0.3 million) for both the six months ended June 30, 2023 and 2024, respectively, primarily relating to the stability in our average short-term bank borrowings.

We recorded other loss, net, of RMB3.1 million (US$0.4 million) in the six months ended June 30, 2024, compared to other income, net, of RMB6.0 million in the six months ended June 30, 2023, primarily due to the decrease in fair value change of investment in a mutual fund.

We recorded income tax benefit of RMB2.6 million (US$0.4 million) in the six months ended June 30, 2024, as compared to income tax benefit of RMB2.4 million in the six months ended June 30, 2023, primarily due to the increase in deferred tax asset benefit.

As a result of the foregoing, we had net loss of RMB5.7 million and RMB46.5 million (US$6.4 million) in the six months ended June 30, 2023 and 2024, respectively.

Adjusted net loss was RMB46.5 million (US$6.4 million), as compared to adjusted net loss of RMB1.8 million in the first half of 2023.(1)

Adjusted EBITDA loss was RMB34.8 million (US$4.8 million), as compared to adjusted EBITDA of RMB11.1 million in the first half of 2023.(1)

(1)   See "Use of Non-GAAP Financial Measures."

CONFERENCE CALL 

Quhuo will hold a conference call on Wednesday, August 28, 2024 at 8:00 a.m.U.S. Eastern Time (8:00 p.m.Beijing/Hong Kong time on the same day) to discuss the financial results.

Dial-in details for the earnings conference call are as follows:

PARTICIPANT DIAL IN (TOLL FREE):

1-888-346-8982

PARTICIPANT INTERNATIONAL DIAL IN:

1-412-902-4272

Hong Kong Toll Free:

800-905945

Hong Kong-Local Toll:

852-301-84992

Mainland China Toll Free:

4001-201203

Conference ID:

QUHUO

Please dial in ten minutes before the call is scheduled to begin and provide the conference ID to join the call.

A replay of the conference call may be accessed by phone at the following numbers until September 04, 2024:

US Toll Free:

1-877-344-7529

International Toll:

1-412-317-0088

Canada Toll Free:

855-669-9658

Replay Access Code:

2435048

Additionally, a live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.quhuo.cn/.

USE OF NON-GAAP FINANCIAL MEASURES

Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).

Quhuo uses adjusted net income/(loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income/(loss) represents net income/(loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/(loss) before income tax benefit/(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo's operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Quhuo encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net loss to adjusted net loss and adjusted EBITDA, respectively.

QUHUO LIMITED








Reconciliation of GAAP and Non-GAAP Results










For the Six Months Ended



June 30, 2023


June 30, 2024


June 30, 2024



(RMB)


(RMB)


(US$)



(in thousands)








Net loss


(5,690)


(46,515)


(6,401)

Add: Share-based Compensation


3,853


-


-








Adjusted net loss


(1,837)


(46,515)


(6,401)

Add:







Income tax benefit


(2,395)


(2,622)


(361)

Depreciation


2,927


2,676


368

Amortization


10,128


9,385


1,291

Interest


2,323


2,301


317








Adjusted EBITDA


11,146


(34,775)


(4,786)

 

EXCHANGE RATE INFORMATION

This press release contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for readers' convenience. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

ABOUT QUHUO LIMITED

Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.

With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.

SAFE HARBOR STATEMENT

This press release contains ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo's business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo's current expectations and involve risks and uncertainties. Quhuo's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo's abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationship with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption "Risk Factors" and elsewhere in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information about Quhuo, please visit https://ir.quhuo.cn/.

 

 

QUHUO LIMITED








 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS








 (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share

data) 










As of December 31,

2023


As of June 30,

2024


As of June 30,

2024



(RMB)


(RMB)


(US$)

Assets







Current assets







Cash


45,185


39,930


5,495

Restricted cash


1,271


914


126

Short-term investments


68,378


64,014


8,809

Accounts receivable, net


475,992


443,105


60,973

Prepayments and other current

assets


108,354


115,849


15,940

Amounts due from related party


253


-


-

Total current assets


699,433


663,812


91,343








Property and equipment, net


14,635


11,869


1,633

Right-of-use assets, net


6,217


8,048


1,107

Intangible assets, net


82,818


69,248


9,529

Goodwill


65,481


65,481


9,010

Deferred tax assets


21,968


24,607


3,386

Other non-current assets


141,384


138,209


19,018

Total non-current assets


332,503


317,462


43,683








Total assets


1,031,936


981,274


135,026








Liabilities, non-controlling interests

and shareholders' equity







Current liabilities







Accounts payables


254,099


249,280


34,302

Accrued expenses and other

current liabilities


108,132


61,972


8,528

Short-term debt


92,653


104,195


14,338

Short-term lease liabilities


3,906


3,942


542

Amounts due to related party


-


2,430


334

Total current liabilities


458,790


421,819


58,044








Long-term debt


7,533


6,147


846

Long-term lease liabilities


1,434


3,433


472

Deferred tax liabilities


4,689


2,467


339

Other non-current liabilities


54,212


72,554


9,984

Total non-current liabilities


67,868


84,601


11,641








Total liabilities


526,658


506,420


69,685








 

 

QUHUO LIMITED








 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS










 As of December 31,

2023 


 As of June 30,

2024 


 As of June 30,

2024 



 (RMB)


 (RMB)


 (US$)








Shareholders' equity







Ordinary shares


43


46


6

Additional paid-in capital


1,885,142


1,899,380


261,363

Statutory reserve


-


14,994


2,063

Accumulated deficit


(1,376,530)


(1,444,059)


(198,709)

Accumulated other comprehensive

loss


(2,466)


(616)


(85)

Total Quhuo Limited shareholders'

equity


506,189


469,745


64,638

Non-controlling interests


(911)


5,109


703

Total shareholders' equity


505,278


474,854


65,341








Total liabilities and shareholders'

equity


1,031,936


981,274


135,026

 

 

QUHUO LIMITED








UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS








(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)










For the Six Months Ended



June 30, 2023


June 30, 2024


June 30, 2024


 (RMB)


 (RMB)


 (US$)








Revenues


1,736,317


1,619,938


222,911

Cost of revenues


(1,669,515)


(1,595,192)


(219,506)

General and administrative


(81,611)


(70,868)


(9,752)

Research and development


(6,645)


(4,939)


(680)

Gain on disposal of assets, net


8,916


7,022


966








Operating loss


(12,538)


(44,039)


(6,061)








Interest income


742


258


36

Interest expense


(2,323)


(2,301)


(317)

Other income/(loss), net


6,034


(3,055)


(420)

Loss before income tax


(8,085)


(49,137)


(6,762)

Income tax benefit


2,395


2,622


361

Net loss


(5,690)


(46,515)


(6,401)








Net income attributable to non-

controlling interests


(3,958)


(6,020)


(828)

Net loss attributable to ordinary

shareholders of the Quhuo limited


(9,648)


(52,535)


(7,229)








Non-GAAP Financial Data







Adjusted net loss


(1,837)


(46,515)


(6,401)

Adjusted EBITDA


11,146


(34,775)


(4,786)








Loss per share for class A and class B ordinary shares





Basic


(0.17)


(0.63)


(0.09)

Diluted


(0.17)


(0.63)


(0.09)








Shares used in loss per share computation:

Basic


56,441,811


83,289,067


83,289,067

Diluted


56,441,811


83,289,067


83,289,067

 

 

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SOURCE Quhuo Limited