Quhuo (QH) H1 2024 earnings summary

Executive summary

• Total revenue for H1 2024 was RMB 1,619.9 million, down 6.7% year-over-year, mainly due to business optimization and disposal of underperforming districts.

• Mobility service solutions revenue surged 71.7% year-over-year, driven by a 389% increase in international vehicle export solutions and strong ride-hailing growth.

• Net loss widened to RMB 46.5 million in H1 2024, compared to RMB 5.7 million in H1 2023.

• Adjusted EBITDA loss was RMB 34.8 million, versus positive RMB 11.1 million in H1 2023.

• General and administrative expenses declined 13.2% year-over-year, driven by cost controls and technological optimization.

Financial highlights

• On-demand delivery revenue declined 9.1% year-over-year due to disposal of underperforming business districts.

• Housekeeping and accommodation revenue fell 27.8% year-over-year, mainly due to business model transformation in hotel services.

• Cost of revenue decreased by 4.5% year-over-year, mainly due to lower labor and service fees.

• Research and development expenses declined 25.7% year-over-year to RMB 4.9 million.

• Net cash used in operating activities was RMB 41.5 million for H1 2024.

Outlook and guidance

• Plans to optimize operational model and resource allocation, focusing on new market opportunities and international expansion in H2 2024.

• Quhuo International to enter Phase 2, refining overseas business models and profit-sharing mechanisms for accelerated growth.

• Management expects continued growth in vehicle export solutions and further expansion of housekeeping services, with new partnerships in the pipeline.

• Strategic focus on global expansion, including piloting on-demand delivery and ride-hailing services in select international cities.