Quhuo (QH) H1 2025 earnings summary

Executive summary

• Total revenue for H1 2025 was RMB 1,131.4 million, down 30.2% year-over-year, mainly due to business optimization and site closures.

• Housekeeping and accommodation solutions revenue surged 70.8% year-over-year to RMB 34.8 million, driven by online promotion and expansion to 90 cities.

• Net loss increased 14.0% year-over-year to RMB 53.0 million, with EBITDA loss widening to RMB 60.2 million from RMB 34.8 million.

• Gross profit dropped to RMB 4.1 million from RMB 24.8 million year-over-year, reflecting margin pressure in core segments.

• The international vehicle export business is shifting to higher-margin and recurring service income models, with a pilot project in Azerbaijan.

Financial highlights

• On-demand delivery revenue was RMB 1,039.2 million, down 30.7% year-over-year due to site optimization and service station disposals.

• Mobility service solutions revenue fell 42.8% to RMB 57.4 million, mainly from fewer vehicle sales and exit from underperforming cities.

• Housekeeping and accommodation revenue rose 70.8% to RMB 34.8 million, driven by online promotion and platform expansion.

• Cost of revenues decreased 29.3% year-over-year to RMB 1,127.3 million, in line with lower revenues.

• General and administrative expenses rose 7.7% year-over-year to RMB 76.3 million, mainly due to higher professional service fees and expansion costs.

Outlook and guidance

• Expectation of improved profitability in on-demand delivery as integration and efficiency measures take effect in H2 2025.

• Management aims to refine operations and scale new business models for sustainable shareholder returns and social value.

• New partnerships, such as with JD Jingdong Takeaway and New World, are anticipated to drive incremental revenue and transition the business toward supply chain enablement.

• International business aims to leverage asset financialization to address cash cycle challenges and expand into new markets.

• Focus remains on stabilizing core businesses and developing new models amid market competition and structural shifts.