- Quhuo (QH, Financial) reported total revenue of RMB 3,046.9 million and positive EBITDA for the third consecutive year in 2024.
- The company reduced general and administrative expenses by 19.4% and improved gross profit margins significantly across its services.
- International expansion included shipping over 3,500 vehicles and forming strategic partnerships to enhance operational reach.
Quhuo Limited (NASDAQ: QH) recently unveiled its financial results for the second half and the entire fiscal year of 2024, demonstrating significant strides in strategic transformation and financial health amidst challenging market conditions. The company achieved a total revenue of RMB 3,046.9 million while maintaining positive EBITDA of RMB 9.07 million for three consecutive years.
Efforts to streamline operations bore fruit, with general and administrative expenses seeing a 19.4% reduction year-over-year. Adoption of AI technologies played a crucial role in bringing down research and development expenses by 13.7%, further optimizing operational efficiency and facilitating a shift in resource allocation towards potentially high-growth business areas.
Quhuo’s focus on core business lines yielded impressive results, particularly in shared-bike maintenance and ride-hailing services. These sectors witnessed a gross profit margin increase of 15.7% and 216.9% respectively. The vehicle export solutions also saw a rise in gross profit margin from 1.8% to 6.2%, partly driven by AI-enhanced inspections that lifted individual productivity. Additionally, housekeeping services improved their gross profit margins from 26.4% to 36.4%, illustrating enhanced efficiency.
On the international front, Quhuo International spearheaded global expansion efforts, shipping over 3,500 vehicles to overseas markets by the end of 2024, alongside the successful launch of the Carnuxt certification brand. The company’s remarkable partnership with Volt Auto and Bolt in Azerbaijan highlights an innovative fusion of vehicle sales with operational expertise, setting a promising precedent for future ventures.
In a move toward diversifying its business model, Quhuo formed a strategic partnership with NIU World to repurpose its existing delivery network for high-value supply chain roles, launching an "on-demand production and real-time fulfillment" model that boosts the efficiency of beef product distribution. This initiative not only improved supply chain efficiency but also paved the way for potential revenue increase in 2025.
Quhuo’s commitment to its corporate social responsibilities was evident as it created flexible job opportunities for over 830,000 workers, offering commercial insurance and vocational training. These initiatives, together with efforts in EV exports and food waste reduction, underscore the company’s resolve to balance commercial success with social value.
