#China #Beijing #Gig Economy #Quhuo Limited

Quhuo's Financial Performance in 2024

Quhuo Limited, a leading platform in the gig economy segment focusing on local life services in China, has recently disclosed its financial metrics for the second half and full year of 2024. The company's strategy has effectively tackled market challenges while enhancing its core business operations, showcasing a robust commitment to both innovation and social responsibility.

Strategic Transformation Driving Core Growth

In 2024, Quhuo achieved impressive total revenue of RMB 3,046.9 million. Impressively, the company reported a positive adjusted EBITDA of RMB 9.07 million, marking its consistent profitability over three consecutive fiscal years. This upward trend can be attributed to Quhuo's stringent cost management initiatives, which resulted in a significant 19.4% decline in general and administrative expenses compared to the previous year. Research and development expenditures also saw a commendable reduction of 13.7%, primarily thanks to the integration of AI in streamlining operations and minimizing costs.

The second half of 2024 proved particularly profitable for Quhuo, with enhanced focus on its core operations translating into substantial profit growth. For instance, the gross profit margin surged by 15.7% in the shared-bike maintenance sector and an astounding 216.9% within the ride-hailing services segment. Furthermore, profits from vehicle export solutions soared by 11.5% year-over-year, driven by AI-assisted inspections.

Quhuo has emphasized resilience by utilizing its proprietary booking platform to optimize services in housekeeping and accommodation, bolstering its overall gross profit margin from 26.4% to 36.4% over the year. This strategic realignment has solidified the foundation for sustainable profitability in the long term.

Global Expansion as a Growth Engine

2024 marked a significant year for Quhuo International, the company’s global branch, which has become a crucial driver of growth. Having entered the vehicle export market in May 2023, Quhuo International successfully shipped over 3,500 vehicles to various international destinations by the close of 2024. The division also launched Carnuxt, a renowned certification and service platform for used vehicles across multiple regions including the Middle East and Eastern Europe.

Capitalizing on its expertise in local life services, Quhuo International crafted a unique