Quhuo Limited Q2 FY2024 earnings call

• In 2024 H1, despite complex global economic environment, Quhuo maintained stable business growth. Total revenue was RMB 1.62 billion. Profitability rebounded in Q2 with gross margin reaching 5.6%, surpassing last year's performance. General and administrative expense decreased by 13.2% y-o-y due to lean management.
• Mobility Services segment performed well with 71.7% y-o-y revenue growth. International vehicle export solutions were a new growth driver with 389% y-o-y revenue increase and 815 new energy vehicles exported.
• Housekeeping service segment: gross profit increased 28.5% y-o-y, gross margin rose from 13.8% to 24.6%, and service coverage expanded to 132 cities (21.4% y-o-y increase).
• Addressed key issues: focused on employment protection with over 770,000 registered workers on platform; advanced homestay development and explored combined short-term and long-term rental model for idle properties; leveraged vehicle export and ride-hailing solutions in international market, with technology empowerment projects in overseas markets making progress.

Total revenue was RMB 1.62 billion in 2024 H1. Mobility Services segment: total revenue increased by 71.7% y-o-y to RMB 100.5 million. Shared-bike maintenance service revenue grew 6.2% y-o-y, ride-hailing service revenue increased by 47.5% y-o-y, and International vehicle export solutions revenue increased by 389% y-o-y to RMB 58.6 million. On-demand Delivery Solutions: revenue was RMB 1,499.1 million, a slight decrease of 9.1% from H1 2023 due to business optimization. Housekeeping and Accommodation Solutions: revenue was RMB 20.4 million, a decrease of 27.8% from H1 2023 due to business model transaction in hotel services.

• Quhuo International will enter phase 2 of development in H2 2024. Will focus on defining and innovating overseas business model, redefining partner roles and unifying profit sharing mechanism to drive revenue and profit growth, and developing systems to optimize new business processes with partners to solidify and expand international market position.

Q: What are the company's plans for Quhuo International in the second half of 2024? And how do you see its growth prospects?

A: On Quhuo International serves as the platform for Quhuo's global expansion. In H2 2024, will move into next stage of development. Focus on defining and innovating overseas business model, redefining partner roles and unifying long-term profit sharing mechanism to drive faster growth in both revenue and profit. Develop systems to optimize new business processes with partners to ensure successful establishment of new business ecosystem. Expect this phase to bring scale growth and further solidify and expand position in international market.