EX-99.1 2 tm2410943d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1 

 

Quhuo Reports Unaudited Financial Results for the Second Half and

 

Full Year 2023

 

BEIJING, China, April 3, 2024 (PRNewswire) -- Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading gig economy platform focusing on local life services in China, today reported its unaudited financial results for the six months and full year ended December 31, 2023.

 

Financial and Operational Highlights for the Second Half of 2023

 

·Revenues from vehicle export solutions that were launched in May 2023 were RMB142.5 million (US$20.1 million), accounting for 81.3% of revenues from mobility solution services, driving a 239.6% year-over-year increase in the latter's revenue.

 

·Net income was RMB11.7 million (US$1.6 million), representing a year-over-year increase of 15.0% from RMB10.2 million.

 

·General and administrative expense was RMB102.7 million (US$14.5 million), representing a year-over-year decrease of 9.9% from RMB114.1 million.

 

·Quhuo International has shipped over 1,700 units of vehicles under its vehicle export solutions.

 

Financial and Operational Highlights for Full Year 2023

 

·Revenues from vehicle export solutions that were launched in May 2023 were RMB154.5 million (US$21.8 million), accounting for 66.1% of revenues from mobility solution services, driving a year-over-year increase of 116.4% in the latter's revenue.

 

·Net income was RMB6.0 million (US$0.8 million) in 2023, compared with net loss of RMB16.4 million in 2022.

 

·Adjusted net income was RMB5.5 million (US$0.8 million), representing a year-over-year increase of 64.7% from RMB3.3 million.

 

·General and administrative expense was RMB184.3 million (US$26.0 million), representing a year-over-year decrease of 13.7% from RMB213.6 million.

 

·Quhuo International has signed service contracts for over 3,000 units of vehicles under its vehicle export solutions, of which over 1,900 units have been shipped.

 

Mr. Leslie Yu, Quhuo’s Chairman and Chief Executive Officer, said, “We are pleased to close out fiscal year 2023 with strong financial and operational results. As of the end of 2023, we have achieved positive EBITDA for four consecutive half years, which is a remarkable accomplishment. It signifies the company's consistent profitability over the past two years, demonstrating a stable and sound operational performance.”

 

 

 

 

“In 2023, we strategically pursued a second growth curve for our business by expanding into new avenues through vehicle export solutions and SaaS+ services , following our strategy to enhance profitability following revenue growth initiated in the fiscal year 2021. Our successful export of approximately 1,900 units of new energy vehicles and electric mopeds from China, generating revenue of RMB154.5 million, underscores the growth potential of our new business ventures. Furthermore, we have empowered local service providers through SaaS+ services, resulting in favorable transformational outcomes. The gross profit of housekeeping and accommodation solutions and other services achieved a significant increase leveraging SaaS+. In the future, we anticipate forming large-scale partnerships with new customers and expanding service coverage to a wider business area, bringing more business growth to the Company through SaaS+ services.”

 

“With a firm belief in the immense opportunities presented by global markets, we are dedicated to seizing these prospects for growth and advancement. Coupled with over a decade of experience in internet operation and technology as well as outstanding last-mile delivery capability achieved through flexible labor practices by Quhuo, the Company will leverage China’s superior capabilities and industry clusters in new energy vehicle manufacturing to adapt to the vast overseas market. By capitalizing on our core strengths and fostering strong collaborations, we aim to penetrate untapped markets, strengthen our global footprint, capture emerging opportunities, and drive sustained success in the years ahead.”

 

Unaudited Financial Results of the Second Half of 2023

 

Total revenues were RMB1,966.1 million (US$276.9 million), compared with total revenues of RMB1,956.6 million in the second half of 2022.

 

·Revenues from on-demand food delivery solutions were RMB1,763.2 million (US$248.3 million), representing a decrease of 6.0% from RMB1,874.9 million in the second half of 2022, primarily because we enjoyed more preferential policies during the second half of 2022 amid the COVID-19 pandemic, which was significantly reduced in the six months ended December 31, 2023 following the relief of the pandemic.

 

·Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing, vehicle export solutions and freight service solutions, were RMB175.3 million (US$24.7 million), representing an increase of 239.6% from RMB51.6 million in the second half of 2022, primarily due to the success of vehicle export solutions, which generated revenue of RMB 142.5 million (US$20.1 million).

 

 

 

 

·Revenues from housekeeping and accommodation solutions and other services were RMB27.5 million (US$3.9 million), representing a decrease of 8.3% from RMB30.0 million in the second half of 2022, primarily due to the transition of business model in hotel service.

 

The cost of revenues was RMB1,866.3 million (US$262.9 million), representing a year-over-year increase of 3.8%, primarily in line with the increase in our total revenues.

 

General and administrative expenses were RMB102.7 million (US$14.5 million), representing a decrease of 9.9% from RMB114.1 million in the second half of 2022, primarily due to the improvement in company management efficiency and the decrease in share-based compensation expenses from RMB7.3 million in the second half of 2022 to RMB(4.3) million (US$(0.6) million) in the second half of 2023.

 

Research and development expenses were RMB5.7 million (US$0.8 million), representing an increase of 6.6% from RMB5.4 million in the second half of 2022, primarily due to the increase in investment in SaaS+ technology.

 

We recorded other income, net, of RMB10.7 million (US$1.5 million), compared to other loss, net, of RMB17.8 million in the second half of 2022, primarily due to the fluctuation in the fair value of our investment in a mutual fund.

 

Income tax expense was RMB1.5 million (US$0.2 million), as compared to income tax expense of RMB14.3 million in the second half of 2022, primarily due to the lower estimated annual effective tax rate for the second half of 2023.

 

Net income attributable to Quhuo Limited was RMB13.0 million (US$1.8 million), compared with net income attributable to Quhuo Limited of RMB11.8million in the second half of 2022.

 

Adjusted EBITDA was RMB24.1 million (US$3.4 million), compared with adjusted EBITDA of RMB47.8 million in the second half of 2022.

 

Adjusted net income was RMB7.4 million (US$1.0 million), compared to the adjusted net income of RMB17.4 million in the second half of 2022.

 

Unaudited Financial Results of Full Year 2023

 

Total revenues were RMB3,702.4 million (US$521.5 million), compared with total revenues of RMB3,820.4 million in 2022.

 

·Revenues from on-demand food delivery solutions were RMB3,412.8 million (US$480.7 million), representing a decrease of 6.2% from RMB3,638.7 million in 2022, primarily because we enjoyed more preferential policies during 2022 amid the COVID-19 pandemic, which was significantly reduced in 2023 following the relief of the pandemic.

 

 

 

 

·Revenues from mobility service solutions were RMB233.8 million (US$32.9 million), representing an increase of 116.4% from RMB108.1 million in 2022, primarily due to the success of vehicle export solutions, and we exported around 1,900 units of new energy vehicles and electric mopeds from China and generated revenue of RMB 154.5 million (US$21.8 million) in 2023.

 

·Revenues from housekeeping and accommodation solutions and other services were RMB55.7 million (US$7.9 million), representing a decrease of 24.2% from RMB73.6 million in 2022, primarily due to the transition of business model in hotel service.

 

Cost of revenues was RMB3,535.8 million (US$498.0 million), which remained relatively stable as compared to the cost of revenues in 2022.

 

General and administrative expenses were RMB184.3 million (US$26.0 million) in 2023, representing a decrease of 13.7% from RMB213.6 million in 2022, primarily due to the decrease in share-based compensation expenses from RMB19.8 million in 2022 to RMB(0.5) million (US$(0.07) million) in 2023.

 

Research and development expenses remained relatively stable at RMB12.4 million (US$1.7 million) in 2023 and RMB12.5 million in 2022.

 

Other income, net was RMB16.7 million (US$2.4 million) in 2023, as compared to other loss, net of RMB26.1 million in 2022, primarily due to the fluctuation in the fair value of our investment in a mutual fund.

 

Income tax benefit was RMB0.9 million (US$0.1 million) in 2023, as compared to income tax expense of RMB21.0 million in 2022, primarily due to the lower estimated annual effective tax rate for the year of 2023, and the increase in deferred tax asset benefit.

 

Net income attributable to Quhuo Limited was RMB3.3 million (US$0.5 million) in 2023, as compared to net loss attributable to Quhuo Limited of RMB13.1 million in 2022.

 

Adjusted EBITDA was RMB35.2 million (US$5.0 million) in 2023, as compared to adjusted EBITDA of RMB58.6 million in 2022.

 

Adjusted net income was RMB5.5 million (US$0.8 million) in 2023, as compared to adjusted net income of RMB3.3 million in 2022.

 

 

(1)See “Use of Non-GAAP Financial Measures.”

 

 

 

 

Balance Sheet

 

As of December 31, 2023, the Company had cash, short-term investments and restricted cash of RMB114.8 million (US$16.2 million) and short-term debt of RMB92.7 million (US$13.1 million).

 

CONFERENCE CALL

 

Quhuo will hold a conference call on Wednesday, April 3, 2024 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time on the same day) to discuss the financial results.

 

Dial-in details for the earnings conference call are as follows:

 

PARTICIPANT DIAL IN (TOLL FREE): 1-888-346-8982
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-902-4272
Hong Kong Toll Free: 800-905945
Hong Kong-Local Toll: 852-301-84992
Mainland China Toll Free: 4001-201203
Conference ID: QUHUO

 

Please dial in ten minutes before the call is scheduled to begin and provide the conference ID to join the call.

 

A replay of the conference call may be accessed by phone at the following numbers until April 10, 2024:

 

US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay Access Code: 8059541

 

Additionally, a live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.quhuo.cn/.

 

USE OF NON-GAAP FINANCIAL MEASURES

 

Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).

 

Quhuo uses adjusted net income/loss and adjusted EBITDA, which are non-GAAP financial measures, in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net income/loss represents net income/loss before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/loss before income tax benefit/expense, amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

 

 

 

 

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net income/loss to adjusted net income and adjusted EBITDA, respectively.

 

   For the Six Months Ended   For the Year Ended 
   December 31,
2022		   December 31,
2023		   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2023		 
   (RMB)   (RMB)   (US$)   (RMB)   (RMB)   (US$) 
Net income/(loss)   10,172    11,698    1,647    (16,414)   6,008    846 
Add: Share-based Compensation   7,259    (4,348)   (612)   19,762    (495)   (70)
                               
Adjusted net income   17,431    7,350    1,035    3,348    5,513    776 
                               
Add: Income tax expense/(benefit)   14,319    1,468    207    21,002    (927)   (131)
Depreciation   3,715    2,389    336    7,513    5,316    749 
Amortization   10,431    10,302    1,451    21,094    20,430    2,878 
Interest   1,897    2,559    360    5,683    4,882    688 
                               
Adjusted EBITDA   47,793    24,068    3,389    58,640    35,214    4,960 

 

EXCHANGE RATE INFORMATION

 

This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for readers’ convenience. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0999 to US$1.00, the rate in effect as of December 31, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

 

 

 

 

 

ABOUT QUHUO LIMITED

 

Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.

 

With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.

 

SAFE HARBOR STATEMENT

 

This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo’s abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationship with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

 

For more information about Quhuo, please visit https://ir.quhuo.cn/.

 

CONTACTS:

 

Investor Relations

Quhuo Limited

E-mail: ir@meishisong.cn

 

 

 

 

QUHUO LIMITED

 

 UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

 

 (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

 

   As of December 31,
2022		   As of December 31,
2023		   As of December 31,
2023		 
   (RMB)   (RMB)   (US$) 
Assets               
Current assets               
Cash   95,444    45,185    6,364 
Restricted cash   5,579    1,271    179 
Short-term investments   64,355    68,378    9,631 
Accounts receivable, net   495,046    475,992    67,042 
Prepayments and other current assets   54,921    108,354    15,261 
Amounts due from related parties   3,876    253    36 
Total current assets   719,221    699,433    98,513 
                
Property and equipment, net   11,450    14,635    2,061 
Right-of-use assets, net   5,562    6,217    876 
Intangible assets, net   101,603    82,818    11,665 
Goodwill   65,481    65,481    9,223 
Deferred tax assets   12,000    21,968    3,094 
Other non-current assets   140,300    141,384    19,914 
Total non-current assets   336,396    332,503    46,833 
                
Total assets   1,055,617    1,031,936    145,346 
                
liabilities, non-controlling interests and shareholders’ equity               
Current liabilities               
Accounts payables   293,281    254,099    35,789 
Accrued expenses and other current liabilities   125,949    108,132    15,230 
Short-term debt   65,434    92,653    13,050 
Short-term lease liabilities   3,276    3,906    550 
Total current liabilities   487,940    458,790    64,619 
                
Long-term debt   1,303    7,533    1,061 
Long-term lease liabilities   1,103    1,434    202 
Deferred tax liabilities   814    4,689    660 
Other non-current liabilities   66,880    54,212    7,636 
Total non-current liabilities   70,100    67,868    9,559 
                
Total liabilities   558,040    526,658    74,178 

 

 

 

 

QUHUO LIMITED

 

 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   As of December 31,
2022		   As of December 31,
2023		   As of December 31,
2023		 
   (RMB)   (RMB)   (US$) 
Shareholders’ equity               
Ordinary shares   43    43    6 
Additional paid-in capital   1,885,637    1,885,142    265,517 
Accumulated deficit   (1,379,864)   (1,376,530)   (193,880)
Accumulated other comprehensive income   (4,654)   (2,466)   (347)
Total Quhuo Limited shareholders’ equity   501,162    506,189    71,296 
Non-controlling interests   (3,585)   (911)   (128)
Total shareholders’ equity   497,577    505,278    71,168 
                
Total liabilities and shareholders’ equity   1,055,617    1,031,936    145,346 

 

 

 

 

QUHUO LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

 

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

 

   For the Six Months Ended   For the Year Ended 
   December 31,
2022		   December 31,
2023		   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2023		 
   (RMB)   (RMB)   (US$)   (RMB)   (RMB)   (US$) 
Revenues   1,956,583    1,966,070    276,915    3,820,378    3,702,387    521,470 
Cost of revenues   (1,797,823)   (1,866,263)   (262,858)   (3,567,690)   (3,535,778)   (498,004)
General and administrative   (114,067)   (102,725)   (14,469)   (213,592)   (184,336)   (25,963)
Research and development   (5,379)   (5,733)   (807)   (12,540)   (12,378)   (1,743)
Gain on disposal of assets, net   9,243    13,401    1,887    13,975    22,317    3,143 
Goodwill impairment   (4,882)   -    -    (4,882)   -    - 
                               
Operating income/(loss)   43,675    4,750    668    35,649    (7,788)   (1,097)
                               
Interest income   499    305    43    690    1,047    147 
Interest expense   (1,897)   (2,559)   (360)   (5,683)   (4,882)   (688)
Other (loss)/income, net   (17,786)   10,670    1,503    (26,068)   16,704    2,353 
Loss before income tax   24,491    13,166    1,854    4,588    5,081    715 
Income tax (expense)/benefit   (14,319)   (1,468)   (207)   (21,002)   927    131 
Net income/(loss)   10,172    11,698    1,647    (16,414)   6,008    846 
                               
Net loss/(income) attributable to non-controlling interests   1,651    1,284    181    3,284    (2,674)   (377)
Net income/(loss) attributable to ordinary shareholders of the Quhuo limited   11,823    12,982    1,828    (13,130)   3,334    469 
                               
Non-GAAP Financial Data                              
Adjusted net income   17,431    7,350    1,035    3,348    5,513    776 
Adjusted EBITDA   47,793    24,068    3,389    58,640    35,214    4,960 
                               
Earnings/(loss) per share for class A and class B ordinary shares                              
Basic   0.21    0.23    0.03    (0.23)   0.06    0.01 
Diluted   0.20    0.23    0.03    (0.23)   0.06    0.01 
Shares used in earnings/(loss) per share computation:                              
Basic   56,168,787    55,855,737    55,855,737    56,007,723    55,534,919    55,534,919 
Diluted   59,123,432    55,855,737    55,855,737    56,007,723    55,534,919    55,534,919