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Overview of Quhuo's Financial Performance in 2024

Quhuo Limited, a key player in China’s gig economy and local life services, recently unveiled its financial performance for the entirety of 2024, revealing significant growth figures that underscore the company’s resilience and strategic advancements.

Financial Highlights for the Second Half of 2024

The financial statements released show a remarkable net income of RMB 48.1 million (approximately $6.6 million) for the second half of 2024, marking a stunning 311.1% increase from RMB 11.7 million for the same period in the previous year. This rapid growth reflects the company's commitment to operational efficiency and robust demand across its service areas.

Adjusted EBITDA for the same period reached RMB 43.8 million (around $6.0 million), representing an 81.7% increase compared to RMB 24.1 million in the second half of 2023. This growth is driven by a strategic focus on enhancing profitability and streamlining operations, including a 24.2% reduction in general and administrative expenses, which fell to RMB 77.8 million (nearly $10.7 million).

The gross profit margin from housekeeping and related services soared to 46.9%, indicating an increase from 39.2% in the prior year. Meanwhile, gross profit from vehicle export solutions also rose by 11.5%, signaling a promising area for future growth.

Financial Highlights for Full Year 2024

For the complete year of 2024, Quhuo reported total revenues of RMB 3,046.9 million (approximately $417.4 million), reflecting a decrease of 17.7% from RMB 3,702.4 million in 2023. Significantly, revenues from the on-demand food delivery sector totaled RMB 2,828.5 million, down 17.1%, largely attributed to the strategic disposal of underperforming service stations.

Despite the overall revenue decline, the company succeeded in converting challenges into opportunities, lowering its total cost of revenue by 15.9% to RMB 2,973.2 million from RMB 3,535.8 million in 2023. Additionally, general and administrative expenses for the year also fell by 19.4%, indicating effective cost management practices.

Strategic Developments

Mr. Leslie Yu, Chairman and CEO of Quhuo, expressed optimism regarding the company's trajectory, declaring 2024 a crucial year as it embarks on a strategic uplift. Quhuo has been actively enhancing its operational efficiencies across various sectors, leading to improved gross profit margins. Furthermore, the company has expanded its vehicle export business significantly, developing a network that now operates in multiple regions across the globe, including the Middle East and Eastern Europe.

In a crucial move towards optimizing its food delivery sector, Quhuo entered a partnership with NIU World, a major food group. This collaboration marks a strategic shift from being predominantly a fulfillment service provider to playing an essential role in supply chain facilitation. Mr. Yu noted that this transformative initiative not only showcases Quhuo’s logistics capabilities but also positions it favorably within the competitive landscape.

Focus on Future Growth

Looking ahead, Quhuo aims to optimize operational functions, empower partners, and capture emerging markets. The company is focused on diversifying its service offerings to tap into various sectors that demand high-quality supply chain solutions. Their continued investment in technology and resources is expected to fuel growth and shareholder value.

Overall, Quhuo’s significant improvements in profitability, substantial revenue generation in challenging conditions, and strategic partnerships set it on a promising path for future growth. As it anticipates further developments in 2025, the company remains committed to innovating within the gig economy landscape, firmly entrenching its position as a leader in local life services in China.