QH

• Core business (on-demand delivery solutions): Faced competitive changes in the domestic food delivery market, invested in workforce management, closed underperforming sites, expecting scale benefits and profit potential to become evident in H2 2025.
• Second core business (housekeeping and accommodation solutions and vehicle export solutions): Housekeeping and accommodation segment had strong growth with 70.8% revenue growth and 63.4% gross profit growth. Driven by Chengtu Homestay (83.6% revenue growth, 390.8% gross profit growth) and LaiLai's cooperation with Beike (63.6% revenue growth). Participated in the Better Life #1 Fund Trust plan, leveraging standardized renovation and data assets.
• International business: Used car exports had 17.8% gross profit growth, with two models (traditional sales and technological empowerment and resources cooperation) with higher potential profitability.

• Expect scale benefits and profit potential of the on-demand delivery business to become more evident in the second half of 2025.
• Supply chain empowerment partnership with New World has generated ~RMB 14.4 million revenue since May 2025 and is expected to contribute ~RMB 60 million for the full year.

In the first half of 2025, total revenue was RMB 1.13 billion. On-demand delivery solutions revenue was RMB 1,039 million, a decrease of 30.7% year-over-year due to disposing underperforming service stations. Revenue from housekeeping and accommodation solutions and other services was RMB 34.8 million, a sharp increase of 70.8% year-over-year due to online promotion. Revenue from mobility service solutions (including shared-bike maintenance, ride-hailing, vehicle export solutions, and freight service solutions) was RMB 57.4 million, a decrease of 42.8% year-over-year due to changes in the vehicle export business model and ceasing ride-hailing services in underperforming cities.

• Intense market competition in China's local service industry put pressure on the short-term profitability of the core on-demand delivery business.

Q: Could you explain Quhuo's specific role in the Trust corporation and what impact this cooperation may have on future financial performance?

A: Quhuo is one of the initiators and core operators of the project. It ensures properties are upgraded and managed at a higher standard, creating stable rental income. It also pools receivables and monetizes future cash flows through trust structures. Financially, it brings higher margin income like asset management fees and capital gains, improving profit mix, and improves cash flow for business expansion.