Quhuo Reports Financial Results for the Second Half and Full Year 2024

Rhea-AI Summary

Quhuo reported its H2 and full-year 2024 financial results, showing significant improvements in profitability despite revenue challenges. H2 2024 highlights include a 311.1% increase in net income to RMB48.1 million (US$6.6 million) and an 81.7% rise in Adjusted EBITDA to RMB43.8 million.

Key developments include:

• 24.2% reduction in general and administrative expenses to RMB77.8 million
• Improved gross profit margins across multiple segments
• Successful expansion of cross-border vehicle export business
• Strategic partnership with NIU World for beef product distribution

Full-year 2024 results showed total revenues of RMB3,046.9 million, down 17.7% YoY, primarily due to business optimization and disposal of underperforming stations. However, the company achieved significant cost reductions and operational efficiency improvements, with general and administrative expenses decreasing by 19.4% to RMB148.6 million.

Positive

• Net income increased 311.1% YoY to RMB48.1M in H2 2024
• Adjusted EBITDA grew 81.7% YoY to RMB43.8M in H2 2024
• General and administrative expenses decreased 24.2% to RMB77.8M in H2 2024
• Improved gross profit margins across segments: mobility solutions (4.6% vs 2.1%), housekeeping (46.9% vs 39.2%)
• Vehicle export business established as new growth engine with successful expansion in Middle East and Eastern Europe
• Strategic partnership with NIU World for beef product distribution services
• Interest expenses decreased 30.8% to RMB1.8M in H2 2024

Negative

• Total revenues declined 27.4% YoY to RMB1,426.9M in H2 2024
• On-demand food delivery revenues decreased 24.6% YoY to RMB1,329.4M
• Mobility service solutions revenue dropped 57.4% YoY to RMB74.7M
• Housekeeping revenues declined to RMB22.9M due to business shift
• Full year net income decreased to RMB1.6M in 2024 from RMB6.0M in 2023
• Short-term debt of RMB112.8M against cash position of RMB65.1M

BEIJING, April 29, 2025 /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 and full year ended December 31, 2024.

Financial and Operational Highlights for the Second Half of 2024

• Net income was RMB48.1 million (US$6.6 million), representing a year-over-year increase of 311.1% from RMB11.7 million.
• Adjusted EBITDA was RMB43.8 million (US$6.0 million), representing a year-over-year increase of 81.7% from RMB24.1 million.
• General and administrative expenses were RMB77.8 million (US$10.7 million), representing a decrease of 24.2% from RMB102.7 million in the second half of 2023.
• Gross profit of vehicle export solutions was RMB2.9 million (US$0.4 million), representing a year-over-year increase of 11.5% from RMB2.6 million.
• Gross profit margin of mobility solution services was 4.6%, compared with 2.1% in the second half of 2023.
• Gross profit margin of housekeeping services and others was 46.9%, compared with 39.2% in the second half of 2023.

Financial and Operational Highlights for Full Year 2024

• General and administrative expenses were RMB148.6 million (US$20.4 million), representing a decrease of 19.4% from RMB184.3 million in 2023.
• Gross profit margin of vehicle export solutions was 5.1%, compared with 1.7% in 2023.
• Gross profit margin of housekeeping services and others was 36.4%, compared with 26.4% in 2023.

Mr. Leslie Yu, Quhuo's Chairman and Chief Executive Officer, said, "2024 is a pivotal year for Quhuo, marking a key turning point in the progress of our strategic elevation. We are pleased to conclude that, thanks to our focus on deepening high-quality business development and driving a structural improvement in profitability, we have successfully enhanced gross profit margin across multiple business sectors. We have continuously worked on improving operational efficiency, leading to a reduction in various expenses.

Our cross-border vehicle export business became a key growth engine in 2024. Our "technology + resources" model has proven effective in regions such as the Middle East, Eastern Europe and Western Asia, where we've empowered local dealers and built a "vehicle procurement - local operations" ecosystem, as demonstrated in Azerbaijan. We believe this global collaboration will reduce supply chain friction and position us for international expansion, with plans underway to replicate the model in additional markets.

In our on-demand food delivery business, we entered into a strategic cooperation agreement with NIU World, a large-scale food group in China, leveraging our nationwide delivery network built over more than a decade. This partnership enables us to provide beef product distribution services- an important milestone in our continued transformation from a fulfillment service provider to a supply chain enabler. Looking ahead, we see strong potential to expand this model into other food sectors requiring high standards for ingredient preservation, offering flexible, efficient and scalable supply chain services to more businesses in the future.

In the future, we will continue optimizing operations, empowering our partners, and seizing market opportunities to deliver sustainable returns for shareholders while creating lasting value for society."

Unaudited Financial Results of the Second Half of 2024

Total revenues were RMB1,426.9 million (US$195.5 million), compared with total revenues of RMB1,966.1 million in the second half of 2023, representing a decrease of 27.4%.

• Revenues from on-demand food delivery solutions were RMB1,329.4 million (US$182.1 million), compared with RMB1,763.2 million in the second half of 2023, representing a decrease of 24.6%. The decrease was primarily because we optimized our business by disposing of several underperforming service stations, which led to a decrease in revenue scale.
• Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing, vehicle export solutions and freight service solutions, were RMB74.7 million (US$10.2 million), compared with RMB175.3 million in the second half of 2023, representing a decrease of 57.4%. The decrease was primarily due to a decrease in units of vehicles sold in our vehicle export solution business.
• Revenues from housekeeping and accommodation solutions and other services were RMB22.9 million (US$3.1 million), compared with RMB27.5 million in the second half of 2023, primarily due to the decrease in housekeeping services for hotels as a result of our shift of focus to other businesses.

Cost of revenues was RMB1,378.0 million (US$188.8 million), representing a year-over-year decrease of 26.2%, primarily in line with the decrease in our total revenues.

General and administrative expenses were RMB77.8 million (US$10.7 million), representing a significant decrease of 24.2% from RMB102.7 million in the second half of 2023. The decrease was primarily driven by (1) a decline in professional service fees from RMB44.5 million in the second half of 2023 to RMB22.6 million (US$3.1 million) in the second half of 2024, and (2) a reduction in welfare and business development expenses and office expenses from RMB21.4 million in the second half of 2023 to RMB16.1 million (US$2.2 million) in the second half of 2024. These savings were largely the result of our effective expense control through engagement of more cost-effective service providers, elimination of unnecessary costs and optimization of employee roles and responsibilities.

Research and development expenses remained relatively stable at RMB5.8 million (US$0.8 million) in the second half of 2024 and RMB5.7 million in the second half of 2023.

We recorded gain on disposal of assets, net, of RMB13.4 million and RMB68.2 million (US$9.3 million) in the second half of 2023 and 2024, respectively, primarily due to the transfer of certain long-term assets to third parties.

Our interest expenses were RMB1.8 million (US$0.2 million), representing a significant decrease of 30.8% from RMB2.6 million in the second half of 2023, primarily due to the decrease in in average interest rates relating to our short-term bank borrowings.

Our other income, net, was RMB0.4 million (US$0.1 million) in the second half of 2024 and RMB10.7 million in the second half of 2023 primarily due to the disposal of investment in a mutual fund.

Income tax benefit was RMB15.7 million (US$2.2 million), as compared to income tax expense of RMB1.5 million in the second half of 2023, primarily due to the reversal of unrecognized tax benefit recognized previous years that have passed the retroactive period.

Net income attributable to Quhuo Limited was RMB48.1 million (US$6.6 million), compared with net income attributable to Quhuo Limited of RMB11.7 million in the second half of 2023.

Adjusted EBITDA was RMB43.8 million (US$6.0 million), compared with adjusted EBITDA of RMB24.1 million in the second half of 2023.⁽¹⁾

Adjusted net income was RMB48.1 million (US$6.6 million), compared to the adjusted net income of RMB7.4 million in the second half of 2023.⁽¹⁾

Unaudited Financial Results of Full Year 2024

Total revenues were RMB3,046.9 million (US$417.4 million), a decrease of 17.7%, compared with total revenues of RMB3,702.4 million in 2023.

• Revenues from on-demand food delivery solutions were RMB2,828.5 million (US$387.5 million), compared with RMB3,412.8 million in 2023, representing a decrease of 17.1%. The decrease was primarily due to optimization of our business by disposing of several underperforming service stations, which led to a decrease in revenue scale.
• Revenues from mobility service solutions were RMB175.1 million (US$24.0 million), compared with RMB233.8 million in 2023, representing a decrease of 25.1%. The decrease was primarily due to the reduction in vehicles sold in our vehicle export solution business.
• Revenues from housekeeping and accommodation solutions and other services were RMB43.2 million (US$5.9 million), compared with RMB55.7 million in 2023, primarily due to the decrease of housekeeping services for hotels as a result of our shift of focus to other businesses.

Cost of revenues was RMB2,973.2 million (US$407.3 million), representing a year-over-year decrease of 15.9%, generally in line with the decrease in our total revenues.

General and administrative expenses were RMB148.6 million (US$20.4 million) in 2024, representing a decrease of 19.4% from RMB184.3 million in 2023. This reduction was due to (1) a decrease in professional service fees from RMB66.7 million in 2023 to RMB37.2 million (US$5.1 million) in 2024, and (2) a decrease in welfare and business development expenses and office expenses from RMB38.6 million in 2023 to RMB28.4 million (US$3.9 million) in 2024. These savings reflect our expense control measures, including more cost-effective service providers, eliminating unnecessary costs, and optimizing employee roles and responsibilities.

Research and development expenses were RMB10.7 million (US$1.5 million) in 2024, representing a decrease of 13.7% from RMB12.4 million in 2023, primarily due to a lower average compensation level for our research and development personnel resulting from the restructuring of our R&D team.

We recorded gain on disposal of assets, net, of RMB22.3 million and RMB75.2 million (US$10.3 million) in 2023 and 2024, respectively, primarily due to the transfer of certain long-term assets to third parties.

Our interest expenses were RMB4.1 million (US$0.6 million), representing a decrease of 16.3% from RMB4.9 million in 2023, primarily due to the reduction in average interest rates relating to our short-term bank borrowings.

Other expense, net, was RMB2.6 million (US$0.4 million) in 2024, as compared to other income, net, of RMB16.7 million in 2023, primarily due to the fluctuation in the fair value of our investment in a mutual fund.

Income tax benefit was RMB18.3 million (US$2.5 million) in 2024, as compared to RMB0.9 million in 2023, primarily due to the reversal of unrecognized tax benefit recognized in previous years that have passed the retroactive period.

Net income attributable to Quhuo Limited was RMB1.6 million (US$0.2 million) in 2024, as compared to RMB6.0 million in 2023.

Adjusted EBITDA was RMB9.1 million (US$1.2 million) in 2024, as compared to adjusted EBITDA of RMB35.2 million in 2023.⁽¹⁾

Adjusted net income was RMB1.6 million (US$0.2 million) in 2024, as compared to RMB5.5 million in 2023.⁽¹⁾

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

Balance Sheet

As of December 31, 2024, the Company had cash, cash equivalents and restricted cash of RMB65.1 million (US$8.9 million) and short-term debt of RMB112.8 million (US$15.5 million).

CONFERENCE CALL

Quhuo will hold a conference call on Tuesday, April 29, 2025 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 May 6, 2025:

US Toll Free:	1-877-344-7529
International Toll:	1-412-317-0088
Canada Toll Free:	855-669-9658
Replay Access Code:	8059541

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 its 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 income/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. For more information on this Non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP results" set forth below.

Unaudited Reconciliations of GAAP and Non-GAAP Results
		For the Six Months Ended						For the Year Ended
		December 31, 2023		December 31, 2024		December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2024
		(RMB'000)		(RMB'000)		(US$'000)		(RMB'000)		(RMB'000)		(US$'000)
Net income		11,698		48,127		6,593		6,008		1,612		221
Add: Share-based Compensation		(4,348)		-		-		(495)		-		-
Adjusted net income		7,350		48,127		6,593		5,513		1,612		221
Add: Income tax expense/(benefit)		1,468		(15,721)		(2,154)		(927)		(18,343)		(2,513)
Depreciation		2,389		1,832		251		5,316		4,508		618
Amortization		10,302		7,807		1,070		20,430		17,192		2,355
Interest		2,559		1,804		247		4,882		4,105		562
Adjusted EBITDA		24,068		43,849		6,007		35,214		9,074		1,243

EXCHANGE RATE INFORMATION

This press release contains translations of certain Renminbi 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 RMB7.2993 to US$1.00, the rate in effect as of December 31, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

ABOUT QUHUO LIMITED

Quhuo Limited 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 CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)
		As of December 31, 2023		As of December 31, 2024		As of December 31, 2024
		(RMB)		(RMB)		(US$)
Assets
Current assets
Cash and cash equivalents		45,185		63,202		8,659
Restricted cash		1,271		1,916		262
Short-term investments		68,378		-		-
Accounts receivable, net		475,992		295,713		40,513
Prepayments and other current assets		108,354		112,044		15,348
Amounts due from a related party		253		-		-
Total current assets		699,433		472,875		64,782
Property and equipment, net		14,635		8,847		1,212
Right-of-use assets, net		6,217		4,647		637
Intangible assets, net		82,818		57,985		7,944
Goodwill		65,481		65,481		8,971
Deferred tax assets		21,968		31,548		4,322
Other non-current assets		141,384		225,643		30,913
Total non-current assets		332,503		394,151		53,999
Total assets		1,031,936		867,026		118,781
liabilities, non-controlling interests and shareholders' equity
Current liabilities
Accounts payable		254,099		145,777		19,971
Accrued expenses and other current liabilities		108,132		74,269		10,175
Short-term debt		92,653		112,848		15,460
Short-term lease liabilities		3,906		2,818		386
Amounts due to a related party		-		1,350		185
Total current liabilities		458,790		337,062		46,177
Long-term debt		7,533		4,706		645
Long-term lease liabilities		1,434		1,635		224
Deferred tax liabilities		4,689		599		82
Other non-current liabilities		54,212		62,408		8,550
Total non-current liabilities		67,868		69,348		9,501
Total liabilities		526,658		406,410		55,678

 

 

QUHUO LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
		As of December 31, 2023		As of December 31, 2024		As of December 31, 2024
		(RMB)		(RMB)		(US$)
Shareholders' equity
Ordinary shares		43		615		84
Additional paid-in capital		1,885,142		1,839,482		252,008
Accumulated deficit		(1,376,530)		(1,373,825)		(188,214)
Accumulated other comprehensive loss		(2,466)		(1,550)		(212)
Total Quhuo Limited shareholders' equity		506,189		464,722		63,666
Non-controlling interests		(911)		(4,106)		(563)
Total shareholders' equity		505,278		460,616		63,103
Total liabilities and shareholders' equity		1,031,936		867,026		118,781

 

 

QUHUO LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)
		For the Six Months Ended						For the Year Ended
		December 31, 2023		December 31, 2024		December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2024
		(RMB)		(RMB)		(US$)		(RMB)		(RMB)		(US$)
Revenues		1,966,070		1,426,933		195,489		3,702,387		3,046,871		417,420
Cost of revenues		(1,866,263)		(1,377,966)		(188,781)		(3,535,778)		(2,973,158)		(407,321)
General and administrative		(102,725)		(77,759)		(10,653)		(184,336)		(148,627)		(20,362)
Research and development		(5,733)		(5,751)		(788)		(12,378)		(10,690)		(1,465)
Gain on disposal of intangible assets		13,401		68,198		9,343		22,317		75,220		10,305
Operating income/(loss)		4,750		33,655		4,610		(7,788)		(10,384)		(1,423)
Interest income		305		127		17		1,047		385		53
Interest expense		(2,559)		(1,804)		(247)		(4,882)		(4,105)		(562)
Other income/(expense), net		10,670		428		59		16,704		(2,627)		(360)
Income/(loss) before income tax		13,166		32,406		4,439		5,081		(16,731)		(2,292)
Income tax (expense)/benefit		(1,468)		15,721		2,154		927		18,343		2,513
Net income		11,698		48,127		6,593		6,008		1,612		221
Net loss/(income) attributable to non-controlling interests		1,284		7,113		974		(2,674)		1,093		150
Net income attributable to ordinary shareholders of the Quhuo limited		12,982		55,240		7,567		3,334		2,705		371
Non-GAAP Financial Data
Adjusted net income		7,350		48,127		6,593		5,513		1,612		221
Adjusted EBITDA		24,068		43,849		6,007		35,214		9,074		1,243
Earnings per share for class A and class B ordinary shares
Basic		0.23		0.07		0.01		0.06		0.01		0.00
Diluted		0.23		0.07		0.01		0.06		0.01		0.00
Shares used in earnings per share computation:
Basic		55,855,737		737,267,651		737,267,651		55,534,919		416,025,918		416,025,918
Diluted		55,855,737		737,267,651		737,267,651		55,534,919		416,025,918		416,025,918

 

 

View original content:https://www.prnewswire.com/news-releases/quhuo-reports-financial-results-for-the-second-half-and-full-year-2024-302440921.html

SOURCE Quhuo Limited

FAQ

How much did Quhuo (QH) net income grow in H2 2024?

Quhuo's net income increased by 311.1% year-over-year to RMB48.1 million (US$6.6 million) in the second half of 2024, compared to RMB11.7 million in H2 2023.

What caused Quhuo (QH) revenue decline in 2024?

Quhuo's total revenue declined 17.7% in 2024 primarily due to the optimization of business operations by disposing of underperforming service stations in their food delivery segment and reduced vehicle sales in their export solutions business.

How did Quhuo (QH) reduce expenses in 2024?

Quhuo reduced general and administrative expenses by 19.4% to RMB148.6 million in 2024 through cost-effective service providers, eliminating unnecessary costs, and optimizing employee roles and responsibilities.

What is Quhuo's (QH) new strategic partnership with NIU World?

Quhuo entered a strategic partnership with NIU World, a large Chinese food group, to provide beef product distribution services using their nationwide delivery network, marking their transformation from a fulfillment service provider to a supply chain enabler.

What are Quhuo's (QH) international expansion plans for 2024-2025?

Quhuo plans to expand its 'technology + resources' model, which has been successful in the Middle East, Eastern Europe, and Western Asia, to additional markets, focusing on empowering local dealers and building vehicle procurement-local operations ecosystems.