BEIJING, April 3, 2024/PRNewswire/ -- On April 3, 2024, Quhuo Group (“Quhuo” or “Company”) (NASDAQ: QH), China's leading gig economy platform focusing on localized lifestyle services, today released its financial results report for the second half and full year of 2023. Adhering to last year's “expand revenue first, then increase profit” strategy, Quhuo not only achieved remarkable results in optimizing costs and increasing profits, achieved historic revisions in many financial indicators, but also created a new growth engine through its used car export business and SaaS+ services, and achieved innovative and diversified business model development.

In the second half of 2023, Quhuo Group's revenue was RMB 1,966 billion. In 2023, Quhuo Group's revenue reached 3.702 billion yuan, gross profit 167 million yuan, and adjusted net profit of 5.51 million yuan, an increase of 64.7% over the previous year. The company achieved a number of data corrections, including net profit for the year, and achieved historic results. Thanks to the “expand first, then profit” strategy implemented by the company in 2021, the company achieved outstanding performance with positive EBITDA for four consecutive financial reporting periods.

Over the past year, Quhuo Group has successfully launched the twin engines driving the company into a new stage of growth: the used car export business has risen rapidly and achieved breakthroughs in the international market; at the same time, the SaaS+ service model has injected new impetus into local lifestyle service providers. Together, these two major strategies have propelled Quhuo Group's business towards a broader future.

Relying on travel service solutions, Quhuo's used car export business has been profitable in just one month since its launch in May 2023, with an annual export volume of approximately 1,900 vehicles. In just 7 months, through 30 million revolving capital investment, the annual revenue contribution reached RMB 154 million, accounting for 66.1% of the revenue from travel service solutions, driving a year-on-year increase of 116.4% in annual travel service revenue. The success of this emerging business has benefited from the company's many years of rich experience in the travel field and accurate grasp of the international market. At the same time, it has also highlighted Quhuo's unique competitive advantage in vehicle source networks, vehicle maintenance and distribution channels.

At the same time, Quhuo's clean accommodation sector was fully transformed into a SaaS+ enabling model in the second half of the year. As a result, Quhuo successfully empowered small and medium-sized localized lifestyle service providers to improve service quality and business efficiency, driving the rapid growth of GMV for clean and lodging services to 514 million in 2023, an increase of 53% over the previous year, highlighting the development potential of SaaS+ services.

At the same time, the profit level of the business's revenue was greatly increased, and gross profit increased 48.7% year over year. The implementation of SaaS+ services has also achieved significant results in cost control. The overall operating cost of clean accommodation has decreased by 35.5%, of which the operating cost of lodging services has decreased by 53.4%. The implementation of this transformation strategy has effectively reduced the cost of the entire supply chain, improved operational efficiency, and brought significant economic benefits to the company.

Leslie Yu, Founder, Chairman and CEO of Quhuo Group, said, “2023 will be a year full of challenges and achievements for Quhuo. Our used car export business and SaaS+ services have not only achieved breakthrough progress in the global market, but also laid a solid foundation for the company's long-term development strategy. We believe these emerging business models will open up a wider revenue stream and growth space for Fun Huo.”

Overall, Quhuo Group's revenue model includes three core sectors: platform fulfillment services, SaaS+ services, and international trade and technical services. Among them, the platform fulfillment service, as the starting point of Quhuo's initial business, mainly focused on takeout and travel service solutions (excluding used car exports). By providing order fulfillment services, the platform steadily contributed to the company's main revenue, reaching RMB 3.492 billion in 2023.

SaaS+ service, as a major engine for the company's growth, focuses on improving service efficiency in the cleaning and accommodation sector, and mainly charges flexible employment platform service fees. Currently, Quhuo is cooperating and negotiating with top domestic medical institutions, long-term rental platforms, and pension apartments, hoping to expand this service to a wider range of fields such as medical care and old-age care.

In terms of international trade, Quhuo will innovatively launch the Carnuxt platform to solve various challenges in used car international trade, such as transaction authenticity and process transparency issues, and create a mutually beneficial market environment for car manufacturers, dealers and consumers. With large-scale domestic equipment upgrades and the implementation of consumer goods trade-in policies, it is expected that more used cars will enter the market. With the advantages of the Carnuxt platform, Quhuo aims to seize this round of market opportunities and promote the expansion of Chinese used cars in the global market.

The three service models of Quhuo Group have jointly shaped a comprehensive business model, which not only consolidates the company's core business, but also explores new paths for the company's future revenue growth and profitability improvement through the transformation of SaaS services and the expansion of international trade. Furthermore, Quhuo also plans to expand mature instant delivery services to overseas markets and cooperate with local instant consumption service platforms to provide global workers with broader choices and development opportunities, promote employment growth and labor market flexibility, and promote sustainable social and economic progress.

About Fun Activities

Fun Life Group (NASDAQ: QH) (“Fun Life” or “Company”) is China's leading flexible employment localized lifestyle service platform. With its self-developed technology infrastructure Quhuo+ technology platform, Quhuo is committed to empowering and linking workers and localized lifestyle service providers to provide end-to-end operational solutions for the lifestyle service market. The company currently provides a variety of operational solutions for specific industries, mainly including instant delivery solutions, travel solutions, housekeeping and homestay solutions, and other services to meet the living needs of hundreds of millions of community families.

With the vision of “promoting employment, stabilizing income, and helping to start a business”, Quhuo explores diverse scenarios to promote workers' employment, provides safety and security, vocational training, etc. to protect workers, help workers plan career development paths, and achieve self-worth.

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