Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quhuo Ltd (QH, Financial) achieved a revenue of RMB 3,046.9 million in 2024, with positive EBITDA for three consecutive fiscal years.
- General and administrative expenses decreased by 19% year on year, reflecting improved operational efficiency.
- The company's bike maintenance and vehicle export businesses saw significant growth, with gross profit margins increasing notably.
- Quhuo International's used vehicle export business has become a new growth engine, exporting over 3,500 cars overseas.
- The partnership with New World has transformed Quhuo from a service provider to a supply chain enabler, enhancing delivery efficiency and creating new revenue streams.
Negative Points
- Total revenue decreased by 17.7% in 2024 compared to 2023, primarily due to the disposal of underperforming service stations.
- Revenue from mobility service solutions decreased by 25.1%, largely due to a reduction in vehicles sold in the vehicle export business.
- Net income attributable to Quhuo Ltd (QH) decreased from RMB 6 million in 2023 to RMB 1.6 million in 2024.
- Adjusted EBITDA decreased from RMB 35.2 million in 2023 to RMB 9.1 million in 2024.
- The company faces challenges in maintaining revenue growth amidst a complex and ever-changing market environment.
Q & A Highlights
Q: What's the current progress of the cooperation with New World and what are the company's expectations?
A: Our partnership with New World, a leading agriculture company in China, marks our transformation from a service provider to a supply chain enabler. With Quhuo's nationwide on-demand delivery network, the efficiency of beef delivery to merchants has significantly improved. During the pilot phase, several merchants have already experienced efficiency gains. Both parties will establish a joint venture to incubate new restaurant brands. By 2025, this cooperation is expected to contribute significant revenues and become a new growth driver for the company. We plan to expand this model to other food service providers requiring high standards for food preservation, offering flexible and efficient supply chain services. - Barry Ba, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
