Quhuo Limited to Hold Extraordinary General Meeting on October 8, 2025

Rhea-AI Summary

Quhuo Limited (NASDAQ: QH), a leading Chinese gig economy platform, has announced an extraordinary general meeting (EGM) scheduled for October 8, 2025. The meeting will present several significant proposals including: increasing the company's authorized share capital from US$500,000 to US$10,000,000, creating a new class of shares (Class C Ordinary Shares), and amending the company's Articles of Association.

A key proposal includes issuing 100,000,000 Class C Ordinary Shares to LESYU Investments Limited, owned by Chairman and CEO Leslie Yu, for US$10,000. These Class C shares will carry voting power equivalent to 480 Class A Ordinary Shares each. The record date for shareholder participation is set for September 5, 2025.

Positive

• None.

Negative

• Creation of Class C shares with 480x voting power could significantly concentrate control with the CEO
• Substantial increase in authorized share capital may lead to potential future dilution

Insights

Corporate Governance Specialist

Quhuo proposes major capital restructuring granting CEO super-voting rights, likely consolidating control while diluting existing shareholders.

This extraordinary general meeting announcement reveals significant corporate governance changes that should raise immediate concerns for investors. The company plans to dramatically increase its authorized share capital from $500,000 to $10,000,000, representing a 20x increase in potential shares outstanding from 5 billion to 100 billion shares.

The most concerning element is the creation of new Class C shares with disproportionate voting rights - each carrying voting power equivalent to 480 Class A ordinary shares. The company plans to immediately issue 100 million of these super-voting shares to LESYU Investments Limited, a company wholly-owned by CEO Leslie Yu, for merely $10,000 (effectively at par value).

This move appears designed to consolidate control. With 100 million Class C shares, the CEO would effectively control voting power equivalent to 48 billion Class A shares - potentially dominating any shareholder vote regardless of economic ownership. This represents a classic control-enhancing mechanism that separates voting rights from cash flow rights, creating a wedge between ownership and control.

Such dual-class structures with extreme voting differentials are often criticized for entrenching management, reducing board independence, and limiting the influence of outside shareholders. The timing and structure of this proposal suggest management may be seeking to insulate itself from shareholder pressure or potential acquisition attempts while maintaining minimal economic exposure relative to their voting control.

BEIJING, Sept. 8, 2025 /PRNewswire/ -- Quhuo Limited ("Quhuo" or the "Company") (NASDAQ: QH), a leading gig economy platform focusing on local community-centered services in China, today announced that it will hold an extraordinary general meeting of shareholders (the "EGM") at 3rd Floor, Block A, Xin'anmen, No. 1 South Bank Huihe South Street, Chaoyang District, Beijing 100020, The People's Republic of China on October 8, 2025 at 10:00 a.m., Beijing time (October 7, 2025, at 10:00 p.m., Eastern Time).

The proposals to be submitted for shareholders' approval at the EGM include the following:

1. by way of an ordinary resolution, to increase the Company's authorized share capital FROM US$500,000 divided into 5,000,000,000 shares comprising of (i) 4,993,703,370 Class A ordinary shares of a par value of US$0.0001 each ("Class A Ordinary Shares") and (ii) 6,296,630 Class B ordinary shares of a par value of US$0.0001 each ("Class B Ordinary Shares"), TO US$10,000,000 divided into 100,000,000,000 shares comprising of (i) 80,000,000,000 Class A Ordinary Shares, (ii) 6,296,630 Class B Ordinary Shares, and (iii) 19,993,703,370 shares of a par value of US$0.0001 each of such class or classes (however designated) ("Un-designated Shares"), by the creation of an additional 75,006,296,630 Class A Ordinary Shares and 19,993,703,370 Un-designated Shares (the "Increase of Authorized Share Capital");
   
   
2. by way of a special resolution, to amend the authorised share capital of the Company by the creation of a new class of shares, namely Class C ordinary shares, par value of US$0.0001 each ("Class C Ordinary Shares"), by the redesignation of  500,000,000 authorised but unissued Un-designated Shares as Class C Ordinary Shares on a one-for-one basis, each carrying voting power equivalent to 480 Class A Ordinary Shares (the "Re-designation of Shares"), such that, immediately following the Re-designation of Shares, the authorised share capital of the Company shall be US$10,000,000 divided into 100,000,000,000 shares comprising (i) 80,000,000,000 Class A Ordinary Shares; (ii) 6,296,630 Class B Ordinary Shares; (iii) 500,000,000 Class C Ordinary Shares, and (iv) 19,493,703,370 Un-designated Shares;
   
   
3. by way of a special resolution, subject to shareholders' approval of the Increase of Authorized Share Capital and the Re-designation of Shares, to amend and restate the Company's Third Amended and Restated Memorandum and Articles of Association (the "Articles") by the deletion in their entirety and to approve and adopt the substitution in their place of the Fourth Amended and Restated Memorandum and Articles of Association, with immediate effect in substitution for and to the exclusion of the Articles currently in effect, which, among others, incorporates the Increase of Authorized Share Capital and the Re-designation of Shares; and
   
   
4. by way of a special resolution, to issue to LESYU Investments Limited, a British Virgin Islands company wholly-owned by Mr. Leslie Yu, the Chairman and Chief Executive Officer of the Company, 100,000,000 Class C Ordinary Shares at par value each, for an aggregate consideration of US$10,000.

The Board has fixed September 5, 2025 as the record date (the "Record Date") for determining the shareholders entitled to receive notice of, attend and vote at the EGM or any adjournment or postponement thereof. Holders of record of the Company's Class A and Class B Ordinary Shares at the close of business on the Record Date are entitled to attend and vote at the EGM and any adjournment or postponement thereof in person. The notice of the EGM and the form of proxy are expected to be first mailed to the Company's shareholders on or about September 11, 2025.

About Quhuo

Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local community-centered 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.

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

View original content:https://www.prnewswire.com/news-releases/quhuo-limited-to-hold-extraordinary-general-meeting-on-october-8-2025-302548848.html

SOURCE Quhuo Limited

FAQ

When and where will Quhuo (QH) hold its extraordinary general meeting?

Quhuo will hold its EGM on October 8, 2025 at 10:00 a.m. Beijing time at their headquarters in Beijing, China.

What is the proposed increase in Quhuo's authorized share capital?

Quhuo proposes to increase its authorized share capital from US$500,000 to US$10,000,000, creating additional Class A Ordinary Shares and Un-designated Shares.

What are the voting rights of Quhuo's new Class C Ordinary Shares?

The new Class C Ordinary Shares will carry voting power equivalent to 480 Class A Ordinary Shares each.

How many Class C Ordinary Shares will be issued to Quhuo's CEO Leslie Yu?

LESYU Investments Limited, wholly-owned by CEO Leslie Yu, will receive 100,000,000 Class C Ordinary Shares for an aggregate consideration of US$10,000.

What is the record date for Quhuo's extraordinary general meeting?

The record date is September 5, 2025 for determining shareholders entitled to receive notice of, attend and vote at the EGM.