Exhibit 99.1

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)

	Notes	As of December 31, 2020		As of September 30, 2021
		RMB		RMB		US$
				(Unaudited)		(Unaudited)
ASSETS:
Current assets:
Cash			97,807		57,187		8,875
Restricted cash			5,948		2,314		359
Short-term investments	4		201,578		197,594		30,666
Accounts receivable, net			381,248		468,159		72,657
Prepayments and other current assets			45,462		70,549		10,949
Amounts due from related parties	12		2,940		—		—
Total current assets			734,983		795,803		123,506
Non-current assets:
Property and equipment, net			23,390		16,144		2,506
Intangible assets, net			111,990		129,382		20,080
Long-term investments			1,065		6,105		947
Right-of-use assets, net			32,534		8,302		1,288
Goodwill			118,724		118,724		18,426
Deferred tax assets			2,370		14,548		2,258
Other non-current assets	5		105,501		142,168		22,064
Total non-current assets			395,574		435,373		67,569
Total assets			1,130,557		1,231,176		191,075
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB462,536 and RMB616,314 (US$95,651) as of December 31, 2020 and September 30,2021, respectively):
Accounts payable			268,939		303,965		47,175
Short-term lease liabilities			17,707		5,339		829
Accrued expenses and other current liabilities	6		105,744		149,176		23,150
Short-term debt	7		73,837		140,574		21,817
Amounts due to related parties	12		—		18,887		2,931
Total current liabilities			466,227		617,941		95,902
Non-current liabilities (including non-current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB61,499 and RMB51,111 (US$7,932) as of December 31, 2020 and September 30,2021, respectively):
Deferred tax liabilities			727		—		—
Long-term debt	7		5,135		420		65
Long-term lease liabilities			14,623		1,695		263
Other non-current liabilities			41,014		48,996		7,604
Total non-current liabilities			61,499		51,111		7,932
Total liabilities			527,726		669,052		103,834
Commitments and contingencies	11

QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

	Notes	As of December 31, 2020			As of September 30, 2021
		RMB			RMB			US$
					(Unaudited)			(Unaudited)
Shareholders’ equity:
Ordinary shares (US$0.0001 par value; 300,000,000 Class A ordinary shares authorized and 46,097,880 shares issued as of December 31, 2020 and September 30, 2021; 36,595,330 and 37,989,949 shares outstanding as of December 31, 2020 and September 30, 2021, respectively; 6,296,630 Class B ordinary shares authorized, issued and outstanding as of December 31, 2020 and September 30, 2021, respectively; 193,703,370 shares (undesignated) authorized, nil shares (undesignated) issued and outstanding as of December 31, 2020 and September 30, 2021, respectively)			36			36			6
Additional paid-in capital			1,779,923			1,842,521			285,955
Accumulated deficit			(1,208,827	)		(1,295,382	)		(201,040	)
Accumulated other comprehensive loss			( 14,843	)		( 16,931	)		( 2,628	)
Total Quhuo Limited shareholders’ equity			556,289			530,244			82,293
Non-controlling interests			46,542			31,880			4,948
Total shareholders’ equity			602,831			562,124			87,241
Total liabilities and shareholders’ equity			1,130,557			1,231,176			191,075

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

			Nine Months Ended September 30,
	Notes		2020			2021			2021
			RMB			RMB			US$
			(Unaudited)			(Unaudited)			(Unaudited)
Revenues		3		1,709,739			2,943,811			456,872
Cost of revenues				(1,557,338	)		(2,843,907	)		(441,367	)
General and administrative				(160,215	)		(185,085	)		(28,725	)
Research and development				(8,346	)		(15,509	)		(2,407	)
Gain/(loss) on disposal of assets, net				2,600			(4,162	)		(646	)
Operating loss				(13,560	)		(104,852	)		(16,273	)
Interest income				625			529			82
Interest expense				(6,963	)		(4,900	)		(760	)
Other income, net				39,058			11,829			1,836
Foreign exchange loss				(1,502	)		(48	)		(7	)
Income (loss) before income tax				17,658			(97,442	)		(15,122	)
Income tax expense				(30,258	)		(3,049	)		(473	)
Net loss				(12,600	)		(100,491	)		(15,595	)
Net loss attributable to non-controlling interests				4,052			13,936			2,163
Net loss attributable to ordinary shareholders of Quhuo Limited				(8,548	)		(86,555	)		(13,432	)
Loss per share:
Basic		10		(0.37	)		(1.98	)		(0.31	)
Diluted				(0.37	)		(1.98	)		(0.31	)
Shares used in loss per share computation:
Basic		10		23,358,747			43,709,910			43,709,910
Diluted				23,358,747			43,709,910			43,709,910
Net loss				(12,600	)		(100,491	)		(15,595	)
Other comprehensive loss:
Foreign currency translation adjustment:				(7,282	)		(2,003	)		(311	)
Unrealized gain/(loss) on available-for-sale investments, net of tax				—			(85	)		(13	)
Comprehensive loss				(19,882	)		(102,579	)		(15,919	)
Comprehensive loss attributable to non-controlling interests				4,052			13,936			2,163
Comprehensive loss attributable to ordinary shareholders of Quhuo Limited				(15,830	)		(88,643	)		(13,756	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

QUHUO LIMITED

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT) / EQUITY

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

	Ordinary Shares Outstanding				Additional paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Quhuo Limited shareholders’ (Deficit)/Equity			Non-controlling interests			Total shareholders’ (Deficit)/Equity
			RMB		RMB		RMB			RMB			RMB			RMB			RMB
Balance as of January 1, 2020		14,972,760		17		434,151		(1,212,257	)		(1,231	)		(779,320	)		2,871			(776,449	)
Net loss		—		—		—		(8,548	)		—			(8,548	)		(4,052	)		(12,600	)
Other comprehensive loss		—		—		—		—			(7,282	)		(7,282	)		—			(7,282	)
Issuance of ordinary shares in connection with initial public offering, net of offering cost		3,788,100		2		234,163		—			—			234,165			—			234,165
Conversion of redeemable convertible preferred shares		24,131,100		17		1,030,984		—			—			1,031,001			—			1,031,001
Non-controlling interest recognized from business combination		—		—		—		—			—			—			7,686			7,686
Share-based compensation		—		—		74,627		—			—			74,627			—			74,627
Balance as of September 30, 2020		42,891,960		36		1,773,925		(1,220,805	)		(8,513	)		544,643			6,505			551,148
Balance as of January 1, 2021		42,891,960		36		1,779,923		(1,208,827	)		(14,843	)		556,289			46,542			602,831
Net loss		—		—		—		(86,555	)		—			(86,555	)		(13,936	)		(100,491	)
Other comprehensive loss		—		—		—		—			(2,088	)		(2,088	)		—			(2,088	)
Non-controlling interest recognized from business combination		—		—		—		—			—			—			(726	)		(726	)
Exercise of share options		1,394,619		—		3,210		—			—			3,210			—			3,210
Share-based compensation		—		—		59,388		—			—			59,388			—			59,388
Balance as of September 30, 2021		44,286,579		36		1,842,521		(1,295,382	)		(16,931	)		530,244			31,880			562,124
Balance as of September 30, 2021 in US$		—		6		285,955		(201,040	)		(2,628	)		82,293			4,948			87,241

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

			Nine Months Ended September 30,
	Notes		2020			2021			2021
			RMB			RMB			US$
Cash flows from operating activities
Net loss				(12,600	)		(100,491	)		(15,595	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation				4,778			3,956			614
Amortization				9,889			14,872			2,308
Deferred income taxes				757			(12,906	)		(2,003	)
Share-based compensation		8		74,627			59,388			9,217
Gain on disposals of intangible assets				(2,597	)		(8,312	)		(1,290	)
Net loss on disposal of property and equipment				—			12,476			1,936
Changes in fair value of short-term investment				(26,467	)		2,572			399
Others				9			(69	)		(11	)
Changes in operating assets and liabilities:
Amounts due from related parties				18,166			2,940			456
Amounts due to related parties				—			18,887			2,931
Accounts receivable				(23,554	)		(87,109	)		(13,519	)
Prepayments and other current assets				(2,155	)		(12,231	)		(1,898	)
Other non-current assets				179			(42,393	)		(6,579	)
Accounts payable				(37,704	)		35,398			5,494
Accrued expenses and other current liabilities				3,900			48,354			7,504
Income taxes payable				20,090			154			24
Lease liabilities				(766	)		(239	)		(37	)
Other non-current liabilities				(928	)		7,982			1,239
Net cash provided by (used in) operating activities				25,624			(56,771	)		(8,810	)

QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

		Nine Months Ended September 30,
	Notes	2020			2021			2021
		RMB			RMB			US$
Cash flows from investing activities
Purchase of short-term investments			(2,487,883	)		(2,458,427	)		(381,542	)
Proceeds from sales of short-term investments			2,295,773			2,459,838			381,761
Acquisition of business, net of cash acquired			(6,499	)		(4,327	)		(672	)
Purchase of property and equipment			(2,122	)		(9,557	)		(1,483	)
Acquisition of intangible assets			(39,792	)		(37,634	)		(5,841	)
Proceeds from disposals of intangible assets			8,187			7,451			1,156
Others			650			(6,600	)		(1,024	)
Net cash used in investing activities			(231,686	)		(49,256	)		(7,645	)
Cash flows from financing activities
Proceeds from short-term loans			121,000			135,000			20,952
Repayments of short-term loans			(132,000	)		(66,000	)		(10,243	)
Proceeds from initial public offering			244,161			—			—
Repayments of long-term debt			(5,989	)		(7,303	)		(1,133	)
Payments for IPO expenditures			(9,377	)		—			—
Net cash provided by financing activities			217,795			61,697			9,576
Effect of exchange rate changes on cash			163			77			11
Net increase in cash			11,896			(44,253	)		(6,868	)
Cash and restricted cash, at the beginning of the period			126,779			103,754			16,102
Cash and restricted cash, at the end of the period			138,675			59,501			9,234
Supplement disclosure of cash flow information:
Non-cash option exercise proceeds			—			3,210			498

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

1. Organization, Consolidation and Principal Activities

Quhuo Limited (the “Company”, and where appropriate, the term “Company” also refers to its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity as a whole) is an exempt company incorporated in the Cayman Islands with limited liability under the laws of the Cayman Islands on June 13, 2019. The Company, through its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity, are principally engaged in providing end-to-end operational solutions to on-demand consumer service businesses in industries, including food delivery, bike-sharing and ride-hailing in the People’s Republic of China (the “PRC”). The Company does not conduct any substantive operations of its own.

The Company commenced operations through Beijing Quhuo Technology Co., Ltd. in 2012. In preparation of its initial public offering (“IPO”) in the United States, the Company underwent a series of restructuring in 2019 (the “Restructuring”) in order to establish the Company as the parent company and Beijing Quhuo Technology Co., Ltd. (“Beijing Quhuo” or the “VIE”) as the variable interest entity of the Company. On June 14, 2019, the Company incorporated a wholly-owned subsidiary, Quhuo Investment Limited (“Quhuo BVI”) in the British Virgin Islands (“BVI”). On June 17, 2019, the Company incorporated another wholly-owned subsidiary, Quhuo Technology Investment (Hong Kong) Limited (“Quhuo HK”) in Hong Kong. On July 31, 2019, the Company incorporated a wholly-owned subsidiary, Beijing Quhuo Information Technology Co., Ltd. (“WFOE”) in the PRC.

As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business primarily through the VIE and the subsidiaries of the VIE. The Company, through the WFOE, entered into power of attorney agreements and an exclusive call option agreement with the nominee shareholders of the VIE, that gave the WFOE the power to direct the activities that most significantly affect the economic performance of the VIE and to acquire the equity interests in the VIE when permitted by the PRC laws, respectively. Certain exclusive agreements were entered into with the VIE through the WFOE, which obligate the WFOE to absorb a majority of the risk of loss from the VIE’s activities and entitle the WFOE to receive a majority of its residual returns. In addition, the WFOE entered into an equity interest pledge agreement for equity interests in the VIE held by the nominee shareholders of the VIE. The Company also agreed to provide unlimited financial support to the VIE for its operations.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

1. Organization, Consolidation and Principal Activities (continued)

Despite the lack of technical majority ownership, the Company has effective control of the VIE through the VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE Agreements, the shareholders of the VIE effectively assigned all of their voting rights underlying their equity interest in the VIE to the Company. In addition, through the other exclusive agreements, which consist of exclusive call option agreement, exclusive business cooperation agreement, and equity interest pledge agreement, the Company, through its wholly-owned subsidiaries in the PRC, have the right to receive economic benefits from the VIE that could be potentially significant to the VIE. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIE that could potentially be significant to the VIE. Therefore, the Company is considered the primary beneficiary of the VIE and consolidates the VIE and its consolidated subsidiaries as required by SEC Regulation S-X Rule 3A-02 and Accounting Standard Codification (“ASC”) Topic 810, Consolidation: Overall (“ASC 810”).

As of September 30, 2021, RMB271,867 of accounts receivable and RMB15,016 of property and equipment of the VIE were pledged or collateralized. Creditors of the VIE have no recourse to the general credit of the Company, who is the primary beneficiary of the VIE, through its 100% controlled subsidiary WFOE. The Company did not provide any financial or other support to the VIE other than what is obligated by the agreements described above. The following table sets forth the assets and liabilities of the VIE’s included in the Company’s consolidated balance sheets:

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
ASSETS:
Current assets:
Cash		93,007		53,156		8,250
Restricted cash		401		2,314		359
Short-term investments		34,634		36,591		5,679
Accounts receivable		381,248		468,159		72,657
Prepayments and other current assets		44,662		64,347		9,986
Amounts due from related parties		2,940		—		—
Total current assets		556,892		624,567		96,931
Non-current assets:
Property and equipment, net		23,310		15,829		2,457
Intangible assets, net		111,990		129,382		20,080
Long-term investments		1,065		6,105		947
Operating lease right-of-use assets, net		32,534		8,302		1,288
Goodwill		118,724		118,724		18,426
Deferred tax assets		2,370		13,794		2,141
Other non-current assets		105,501		142,144		22,060
Total non-current assets		395,494		434,280		67,399
Total assets		952,386		1,058,847		164,330

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

1. Organization, Consolidation and Principal Activities (continued)

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
LIABILITIES:
Current liabilities:
Accounts payable		268,939		303,965		47,175
Accrued expenses and other current liabilities		102,053		147,549		22,899
Short-term debt		73,837		140,574		21,817
Short-term lease liabilities		17,707		5,339		829
Amounts due to related parties				18,887		2,931
Total current liabilities		462,536		616,314		95,651
Non-current liabilities:
Deferred tax liabilities		727		—		—
Long-term debt		5,135		420		65
Long-term lease liabilities		14,623		1,695		263
Other non-current liabilities		41,014		48,996		7,604
Total non-current liabilities		61,499		51,111		7,932
Total liabilities		524,035		667,425		103,583

The VIE’s net asset balance was RMB428,351 and RMB391,422 (US$60,747) as of December 31, 2020 and September 30, 2021, respectively.

The table sets forth the results of operations and cash flows of the VIE included in the Company’s consolidated statements of comprehensive loss and cash flows for the nine months ended September 30, 2020 and 2021, respectively:

	Nine Months Ended September 30,
	2020			2021			2021
	RMB			RMB			US$
Revenue		1,709,739			2,943,811			456,872
Net loss		(27,388	)		(73,706	)		(11,439	)
Net cash provided by (used in) operating activities		34,949			(28,121	)		(4,365	)
Net cash used in investing activities		(102,393	)		(47,603	)		(7,387	)
Net cash provided by financing activities		65,936			37,698			5,850
Effect of exchange rate changes on cash		324			88			14
Net (decrease) increase in cash		(1,184	)		(37,938	)		(5,888	)

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

2. Summary of Significant Accounting Policies

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2020. Accordingly, these unaudited interim condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for annual financial statements.

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Company for each of the periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2021. The consolidated balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2020.

Principles of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the subsidiaries of the VIE. All significant inter-company transactions and balances have been eliminated upon consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Company’s consolidated financial statements include, but are not limited to, allowance for doubtful accounts for accounts receivable, fair value of short-term investment, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) applied in lease liabilities, impairment of long-lived assets, goodwill and long-term investments, purchase price allocation and fair value of contingent consideration with respect to business combinations, valuation allowance for deferred tax assets, the grant date fair value of share-based payment awards and fair value of intangible assets acquired associated with non-monetary transactions. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.

Convenience translation

Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.4434 on September 30, 2021 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

2. Summary of Significant Accounting Policies (continued)

Fair value measurements

Financial instruments of the Company primarily include cash, short-term investments, accounts receivable, other receivables, accounts payable and accrued liabilities, other receivables, amounts due from and due to related parties, long-term investments, deposits, equity consideration payable, contingent consideration payable, short-term debt, long-term debt and redeemable convertible preferred shares. The Company applies ASC 820, Fair Value Measurements and Disclosures (‘‘ASC 820’’), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. The short-term investments are measured at fair value. The redeemable convertible preferred shares were initially recorded at fair value as of the issuance date. Equity method investments have no quoted market prices and it is not practicable to estimate their fair value without incurring excessive costs. The carrying amounts of the remaining financial instruments, except for long-term debt and deposits, approximate their fair values because of their short-term maturities.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1-Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2-Include other inputs that are directly or indirectly observable in the marketplace.

Level 3-Unobservable inputs which are supported by little or no market activity.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

2. Summary of Significant Accounting Policies (continued)

The Company’s financial assets and liabilities measured at fair value are summarized below:

			Fair value measurement or disclosure at September 30, 2021 using
	Total fair value at September 30, 2021		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total gains (losses) for the nine months ended September 30, 2021
	(Unaudited) RMB		(Unaudited) RMB		(Unaudited) RMB		(Unaudited) RMB		(Unaudited) RMB
Assets
Short-term investments, commercial bank deposits - recurring		36,820		—		36,820		—		—
Short-term investments, alternative investment fund (1)		160,774		—		—		—		(2,572	)
Total		197,594		—		36,820		—		(2,572	)
Liabilities
Payables for contingent consideration		19,252		—		—		19,252		—
Total		19,252		—		—		19,252		—
			Fair value measurement or disclosure at December 31, 2020 using
	Total fair value at December 31, 2020		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total gains (losses) for the nine months ended September 30, 2020
	RMB		RMB		RMB		RMB		RMB
Assets
Short-term investments, commercial bank deposits - recurring		36,197		—		36,197		—		—
Short-term investments, alternative investment fund (1)		165,381		—		—		—		26,467
Total		201,578		—		36,197		—		26,467
Liabilities
Purchase consideration payables		19,252		—		—		19,252		—
Total		19,252		—		—		19,252		—

(1) Investments are measured at fair value using NAV as a practical expedient. These investments have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statements of balance sheets.

The Company did not transfer any assets or liabilities in or out of Level 3 during the nine months ended September 30, 2020 and 2021, respectively.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

3. Revenues

The following table presents the Company’s revenues disaggregated by revenue category. All revenues were generated in the PRC.

	Nine Months Ended September 30,
	2020		2021		2021
	RMB		RMB		US$
On-demand food delivery solution services		1,689,295		2,804,657		435,275
Mobility service solutions		16,390		77,312		11,999
Housekeeping solutions and other services		3,080		56,639		8,790
Others		974		5,203		808
Total revenues		1,709,739		2,943,811		456,872

4. Short-term Investments

The Company’s short-term investments included investments in commercial bank deposits at floating rates with original maturities of one year or less, but greater than three months, and investment in an alternative investment fund. The following is a summary of the Company’s short-term investments:

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
Commercial banks deposits		36,197		36,820		5,714
Investment in fund		165,381		160,774		24,952
Total short-term investments		201,578		197,594		30,666

For the nine months ended September 30, 2020 and 2021, the Group recognized other income related to its commercial banks deposits of RMB3,193 and RMB3,183 (US$494), respectively, in the consolidated statements of comprehensive loss.

In July 2020, the Group purchased participating shares of an alternative investment fund, which is measured using the NAV practical expedient. The Group recognized unrealized gains of RMB26,467 and unrealized losses of RMB 2,572 (US$399) from the fair value change of the investment as other income, net in the consolidated statements of comprehensive loss for the nine-months ended September 30, 2020 and 2021, respectively.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

5. Other Non-current Assets

Other non-current assets consisted of the following:

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
Rental and industry customer deposits		86,306		103,626		16,083
Prepayments		18,469		38,312		5,946
Other receivables		726		230		35
Total other non-current assets		105,501		142,168		22,064

6. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
Amounts due to third-parties		26,645		26,733		4,149
Income tax payables		12,292		12,446		1,932
Other tax payables		5,099		51,128		7,935
Salary and welfare payables		18,497		25,818		4,007
Deposits received from ride-hailing drivers		13,165		6,762		1,049
Purchase consideration payable		23,580		19,252		2,988
Others		6,466		7,037		1,090
Total		105,744		149,176		23,150

7. Debt

Short-term Debt

The following table presents the Company’s outstanding short-term debt as of December 31, 2020 and September 30 2021:

	Annual interest rates	Term		As of December 31, 2020		As of September 30, 2021
				RMB		RMB		US$
Short-term loans
East West Bank	4.75% -5.50%		1 year		35,000		65,000		10,088
SPD Silicon Valley Bank	4.85% - 6.00%(Floating)		1 year		30,000		70,000		10,864
Agricultural Bank of China	4.85%		1 year		1,000		—		—
Long-term debt, current portion	8.45% - 14.86%		3 years		7,837		5,574		865
Total					73,837		140,574		21,817

In July 2020, the Company entered into a banking facility agreement with East West Bank, pursuant to which the Company is entitled to borrow RMB65,000 with an interest rate of 5.00%. The Company drew down RMB25,000, RMB10,000 and RMB 30,000 July 2020, August 2020 and May 2021, respectively. The loan is intended for general working capital purposes and is secured by certain accounts receivables of the Company.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

7. Debt (Continued)

In November 2020, the Company entered into a banking facility agreement with SPD Silicon Valley Bank, pursuant to which the Company is entitled to borrow RMB70,000 with a floating interest rate benchmarked to one-year lending rate of PBOC. The Company drew down RMB 30,000, RMB 30,000 and RMB 10,000 in November 2020, January 2021 and April 2021, respectively. The loan is intended for general working capital purposes and is secured by certain accounts receivables of the Company.

Long-term debt

The following table presents the Company’s long-term debt as of December 31, 2020 and September 30, 2021:

	Annual interest rates	Term		As of December 31, 2020		As of September 30, 2021
				RMB		RMB		US$
Long-term debt, current portion	8.45% - 14.86%		3 years		7,837		5,574		865
Long-term debt, non-current portion	8.45% - 14.86%		3 years		5,135		420		65
Total					12,972		5,994		930

The weighted average interest rate for all the outstanding borrowings was approximately 5.70% and 5.17% as of December 31, 2020 and September 30, 2021 respectively.

8. Share-Based Compensation

In April 2021, the Company granted 1,833,807 options under the 2017 Plan to three executives. All options vest over two years with 40% of the grants vesting immediately on grant date and 30% of the options vesting on the first and second anniversary of the vesting commencement date.

In May 2021, the Company cancelled 2,187,287 options previously granted on September 1, 2019 to four executives. As a result, the Company immediately recognized the remaining share-based compensation expense of RMB 10,296 (US$1,594) related to unvested share-based awards.

The Company recognized RMB74,627 and RMB59,388 (US$9,217) of share-based compensation expense in general and administrative expenses for the nine months ended September 30, 2020 and 2021, respectively.

9. Income Taxes

The Company is incorporated in the Cayman Islands and conducts its primary business operations through subsidiaries and VIEs in the PRC. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on income nor capital gains. Additionally, upon payments of dividends by the Company to its shareholders, neither Cayman Islands nor BVI will impose withholding taxes. Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong corporate income tax rate at 16.5% exempting foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of dividends.

The Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008 except for the following entities eligible for preferential tax rates. In 2020, Nantong Runda qualified for the requirements of small and micro-sized enterprise, and its first one million yuan of annual taxable income was eligible for 75% reduction and the taxable income between one million yuan and three million yuan was eligible for 50% reduction. The applicable CIT rate is 20%. Hainan Quhuo, Haikou Chengtu and Hainan Xinying are enterprises registered in the Hainan free trade port and engaged in substantial business in encouraged industries and are therefore entitled to preferential tax rate of 15%. Beijing Quhuo, the VIE, meets the requirements of “high and new technology enterprise” (“HNTE”) and could enjoy the preferential tax rate of 15%. Beijing Quhuo obtained the HNTE certificate in December, 2020 and was subject to an enterprise income tax (“EIT”) rate of 15% from calendar years 2020 through 2022.

The Company recorded a provision from income taxes of RMB30,258 and RMB3,049 for the nine months ended September 30, 2020 and 2021, respectively. The income tax provision is primarily driven by nondeductible share-based compensation expenses and unbenefited losses from continuing operations. Furthermore, the Company’s effective tax rates from continuing operations were 171% and (3)% for the nine months ended September 30, 2020 and 2021, respectively. Changes in various permanent differences relative to our pre-tax income/loss from continuing operations had a favorable impact on the effective tax rate for the first nine months ended September 30, 2021 compared to the same period prior year.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

10. Loss Per Share

	Nine months ended September 30,
	2020			2021			2021
	RMB			RMB			US$
Numerator:
Net loss attributable to ordinary shareholders		(8,548	)		(86,555	)		(13,432	)
Denominator:
Weighted average number of shares outstanding		23,358,747			43,709,910			43,709,910
Loss per share - basic and diluted		(0.37	)		(1.98	)		(0.31	)

For the periods presented herein, the computation of basic loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company. The effects of all outstanding options and other participating securities were also excluded from the computation of diluted loss per share as their effects would be anti-dilutive during the periods.

11. Commitments and Contingencies

Contingencies

In the ordinary course of business, the Company may from time to time be involved in legal proceedings and litigation relating to injuries caused by workforce and labor arbitration cases brought by disgruntled workforce, among others. The Company records a liability when the Company believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. With respect to the Company’s outstanding legal matters, based on its current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties.

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

12. Related Party Transactions

Names of the related parties	Relationship with the Company
Hainan Huiliu Tianxia Network Technology Co., Ltd.(“Hainan Huiliu”)	Entity controlled by a principle shareholder
Ningbo Nuannuan Network Technology Co., Ltd. (“Ningbo Nuannuan”)	Entity controlled by principle shareholders

Amounts due from/due to related parties as of December 31, 2020 and September 30, 2021 were as follows:

	As of December 31,		As of September 30,
	2020		2021		2021
	RMB		RMB		US$
Amounts due from a related party
Ningbo Nuannuan		2,940		—		—
Amounts due to a related party
Hainan Huiliu		—		18,887		2,931

Transactions with related parties for the nine months ended September 30, 2020 and 2021:

	Nine Months Ended September 30,
	2020		2021		2021
	RMB		RMB		US$
Hainan Huiliu		—		36,571		5,676

The Company received labor recruitment services from Hainan Huiliu and the amount due to Hainan Huiliu relates to recruitment service received during the nine months ended September 30, 2021.

13. Restricted Net Assets

Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries and VIE with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts restricted include paid-in capital, statutory reserve of the Company’s PRC subsidiaries and pledged or collateralized accounts receivable and property and equipment of the VIE, totaling approximately RMB 361,084 (US$ 56,039) as of September 30, 2021.