Quhuo Limited Q2 FY2023 earnings call

• In 2023, the company achieved positive results in key financial indicators, with adjusted net income growing 64.7% compared to 2022. - Successfully identified two dual engines for second growth curve: used vehicle export business and SaaS+ services. - Used vehicle export business: Launched Quhuo International in Feb 2023, exported ~1,900 used vehicles in 2023, generating RMB154 million revenue. - SaaS+ service: Began transitioning to SaaS+ empowerment model in housekeeping services from H1 2023, GMV of housekeeping and accommodation solutions reached RMB514 million in 2023, a 53% increase, with profitability significantly improved and operating costs decreased. - Three major service models jointly construct a diversified commercial landscape, with fulfilment services as the cornerstone, SaaS+ service and international trade as growth drivers.

In 2023, Quhuo's total revenue was RMB133.7 million with a gross profit of RMB166.6 million. The adjusted net income reached RMB5.5 million, a 64.7% growth compared to 2022. Revenue sources include three main types: Platform fulfilment service, SaaS+ service, and International trade and technology service. Platform fulfilment service, the earliest business segment, generated revenue of RMB3.5 billion in 2023. SaaS+ service, focusing on housekeeping and accommodation services, had a GMV of RMB514 million in 2023, a 53% increase from 2022, with growth profit increasing by 48.7% year-on-year and profit margin rising from 13.4% to 26.4%. International trade and technology service, derived from used vehicle export business, generated revenue of RMB154 million in 2023 from exporting approximately 1,900 used vehicles.

• From 2024 onwards, plan to shift strategy from self-operation to collaborative empowerment. - Domestic side: Focus on providing fast-class service empowerment, extending to broader business areas like elderly care and long-term rental apartments. - International trading side: Launch Carnuxt platform, work with 58 service dealers worldwide, transform them into regional operational collaborative service partners, and issue Carnuxt certificates for quality assurance. - On-demand delivery business: Focus on Southeast Asia and Middle East as pioneer stations for overseas expansion in 2024, plan to achieve business implementation in more than five new countries by 2025.

This call may contain forward-looking statements made under the Safe Harbor provisions. Such statements are based on management's current expectations and current market and operating conditions and relate to events involving known or unknown risks beyond the Company's control, which may cause the Company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, and factors is included in the Company's filings with the U.S. Securities and Exchange Commission.

Q: What is Quhuo’s strategic plan for the next steps?

A: Regarding the future plan, over the past decade, the company concentrated on building core competence in lean operation through self-operated model. From 2024 onwards, the strategy will shift from self-operation to collaborative empowerment. On the domestic side, focus on providing fast-class service empowerment, extending to broader business areas like elderly care and long-term rental apartments. On the international trading side, launch Carnuxt platform, work with 58 service dealers worldwide, transform them into regional operational collaborative service partners, and issue Carnuxt certificates for quality assurance. On the on-demand delivery business, focus on Southeast Asia and Middle East as pioneer stations for overseas expansion in 2024, and plan to achieve business implementation in more than five new countries by 2025.