Full Year 2023 Quhuo Ltd Earnings Call
Unknown Executive: Good day, and welcome to the Quhuo Limited 23 H2N 4-Year Earnings Conference Call. All participants will be in a listen-only mode.
Good day and welcome to <unk>.
Well limited twenty-three H, two and full year earnings conference call.
All participants will be in a listen only mode.
Unknown Executive: Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touchtone phone. To withdraw your question, please press star, then 2.
Should you need assistance. Please signal a conference specialist by pressing the star followed by zero.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on a touchtone phone.
To withdraw your question. Please press Star then two.
Unknown Executive: Please note, this event is being recorded. I would now like to turn the conference over to Kixu Wang. Please go ahead. Thank you, operator. Hello, everyone.
Please note this event is being recorded.
I would now like to turn the conference over to key Shuang. Please go ahead.
Thank you operator, Hello, everyone and welcome to Churchill in second half and Courier decrease earnings conference call. The company's results were released earlier today and are available on that.
Kixu Wang: Welcome to Quhuo's second half and full year 2023 earnings conference call. The company's results were released earlier today and are available on our website. On the call today are Leslie Yu, chairman and CEO, and CFO Barry Ba. Leslie will review business operations and the company highlights, followed by Barry, who will discuss financials and guidance. They will be available to answer your questions in the Q&A session that follows.
Key Shuang: Syed on the call today are the chairman and CEO Jakob Berry that Leslie They will review business operations and company highlights followed by Barry hold I'll discuss financials and guidance then that'll be available to answer your question in the Q&A session desktop.
Unknown Executive: Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Security Legislation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from these in the forward-looking statement. Further information regarding this and other risks, uncertainties, and facts is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under law. With that, I will now turn the call over to our Chairman and CEO, Mr. Leslie Yu. Please go ahead.
Key Shuang: If I look again luxury mind you that this call may contain forward looking statements made under the safe Harbor provision.
We're privileged to currency exchange rates.
None: That's helpful.
Such statements are based on management's current expectations and current market and operational condition and relating to events that involve known or unknown risks, which are beyond the companys control.
This may cause the company's actual results performance or achievements to differ materially from Dave in desktop word okay.
None: Further information regarding these and other risks uncertainties and it's included in the company's filings with the U.
None: S Securities and Exchange Commission the company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise except as required.
None: Okay.
None: I will now turn the call over to our chairman and CEO. Mr. Alessi. Please go ahead.
Leslie Yu: Thank you, Xishu, and thank you all for joining our second half of the 2020 Earnings Conference Call. In 2023, Quhuo achieved a total revenue of RMB 3.7 billion, with a gross profit of RMB 166.6 million. The adjusted net income reached RMB5.5 million, representing a remarkable growth of 64.7% compared to the full year of 2020. The company achieved positive results in various key financial indicators, such as net income and income-to-share bond ratios, marking a historical achievement. Thanks to the strategy of improved profitability after increasing revenues implemented by the company starting in 2021, we have achieved outstanding performance with positive EBITDA for four consecutive financial reporting periods. Additionally, in 2023, we successfully identified the dual engines driving the second growth curve of our company's business.
None: Okay.
Alessi: As you heard from Sean.
Bob.
Alessi: Beyond 2000.
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Speaker Change: The adjusted net income reached RMB five 5 billion represents up to <unk>.
Speaker Change: Macro growth.
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Speaker Change: 2022.
The company achieved a policy results in various key financial indicators.
Speaker Change: Such as the net income on a blue.
Speaker Change: Ordinary shares marching much historical achievement.
Speaker Change: With the improved profitability of the increase in revenues.
Let me pay device companies start to 2020.
Speaker Change: What we have achieved outstanding performance with positive EBITDA in four consecutive financial Department.
Speaker Change: Additionally, we.
Speaker Change: We successfully partnered with <unk> driving that growth.
Speaker Change: The company's business, namely the use of the because of past dues.
Leslie Yu: Namely, the use of the vehicle is part of an assault task, leading to a significant improvement in the company's profit. In terms of vehicle export solutions, in the 4th year of 2013, we successfully exported approximately 1,900 used vehicles from China to countries and regions like Jordan, generating a revenue of RMB 154 million for the country. Within a short span of 7 months, with an investment of RMB 30 million in working capital, we achieved an average monthly revenue of RMB 22 million.
Speaker Change: So this is.
Leading to a significant improvement in the company is complicated.
Speaker Change: In terms of economic policy wishing you the full year 2023.
Speaker Change: We successfully use policy that approximates a 1900 used vehicles from China from countries in the region.
Generating a revenue of RMB 164 medium for the company.
Speaker Change: He has spent almost seven months was that an investment of $15 million working capital, we achieved an average amount manageable by <unk> 2 million.
Leslie Yu: The high cash-to-mobile rate and the shortened payment cycle in the international trade arena confirm the sustainability and the replicability of. The used vehicle export business was initiated with the official launch of Quhuo International in February 2023, and it went live in May 2021. Since then, Quhuo has set its sights on the international market, entering a new phase of global development. Looking back at the achievements of Quhuo International, several factors have contributed to its success. Firstly, the global overseas market has a strong demand for new energy vehicles, providing favorable conditions for the export of such vehicles. Secondly, China's dominant position in the global market for new energy vehicles has led to rapid growth in the used vehicle exporting industry. Chinese customs data shows that there were 69,000 used vehicles exported from China in 2022, and the total exceeded 160,000 in 2020.
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Speaker Change: The official launch of <unk> International in February 2000 lives, we can see a nice one.
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Speaker Change: May 2023.
Speaker Change: Since then she has said in fact.
Speaker Change: All of the international market entering a new phase of global warming.
Speaker Change: Looking past the sealants over to.
Several factors have contributed to <unk> success.
Speaker Change: Okay.
Speaker Change: Oh lets see much to have a strategy for new energy vehicles, providing favorable conditions for this part of the <unk> costs.
Speaker Change: China is a dominant position in the global market for new energy vehicles led to rapid growth in the used vehicle with Polyneuropathy.
Speaker Change: Chinese custom Steakhouse shows SPL six came along.
Speaker Change: The vehicle use policies from China in 2022.
Speaker Change: I mean, the total liquidity of 160000 in 2000 to participate.
Leslie Yu: Market projections indicate that the volume of Chinese used vehicle exports is expected to reach 400,000 vehicles by 2025. Lastly, and most importantly, Quhuo possesses unique advantages that differentiate it from other used vehicle traders. On the technological and operational front, Quhuo's Mobility Solutions Management team has deep expertise in the ride-hailing sector for over five years. They also have more than two decades of experience and resources in the vehicle trading industry, which has provided them with a profound understanding of the used vehicle export market and ecosystem. Additionally, Quhuo has accumulated over 10 years of professional capabilities in large-scale operations and technology. In terms of vehicle sourcing, Quhuo has partnered with multiple automobile brands and expanded our reach to medium and large-scale auto manufacturers, dealerships, and the used vehicle market through our existing ride-sharing business since the first half of 2012, establishing a national wide vehicle sourcing network. In terms of vehicle refurbishment, Quhuo has We have also established a unique network of vehicle improvement resources through self-construction and partnership. Furthermore, at the sales channel level, Quhuo currently has close cooperation with 58 overseas distributors worldwide, providing stable sales channels and new opportunities for market expansion.
Speaker Change: Management projections.
Speaker Change: So that's the volume of Chinese used vehicle part.
Speaker Change: To reach 400000 vehicles by 2025.
Speaker Change: Yeah.
Speaker Change: Lastly, and most importantly show, but that's a unique advantage that differentiates us from other used vehicle cheetos.
Speaker Change: All of the technological and I'll place you prompt Super mobility solutions management team has deep ethical cheese lifesaving sector for over five years.
Speaker Change: They also have more than two decades old Theater center associates from the vehicle trading industry, which has provided them with a profound understanding of they used to be equally poor market and the ecosystem.
Speaker Change: This relates to walk highlight accumulated over 10 years old professional capabilities in large scale operations and in technology.
Speaker Change: In terms of the consulting she was a partner with multiple automobile brands and expanded our reach to medium and the large scale auto manufacturers dealerships and the use of the vehicle market.
Speaker Change: So while I existing wireless fitting business since the first half of 2023.
Speaker Change: Establishing a national wide FICO score from network.
Speaker Change: In terms of the colon refurbishment Shaw has accumulated a way also the vehicle maintenance and repair of sources, so our previous eradicating operations.
Speaker Change: We've also established a unique network on vehicle refurbishment.
Speaker Change: So with self consumption and partnerships.
Speaker Change: First of all it's the sales channel that Shaw condensate have close cooperation with 58 overseas distributors worldwide, providing stable sales channels and the new opportunities for margin expansion.
Leslie Yu: All these factors together build a sure competitive advantage in the global used vehicle trading market, signaling vast business prospects and tremendous development potential. Another important engine for effective growth is the empowerment of subclasses, primarily focused on housekeeping and accommodation solutions nowadays. Starting in the first half of 2023, the company began piloting the transition to the SaaS-class service empowerment model in housekeeping services after successfully validating our self-operated model. After six months of market validation, the company's housekeeping and accommodation solutions began a comprehensive transition toward a substantive power model, starting in the second half of 2020.
Speaker Change: All of these things together, the audit shovel and competitive advantage in the global used to be called city market.
Speaker Change: Particularly in the bus business prospects and the tremendous development potential.
None: And nothing positive. Thank you for attending the gross growth.
None: As a college or SaaS possibilities.
None: Primarily focused on housekeeping combination solutions nowadays.
None: Starting from the first half of 2023, the company began piloting to transition towards SaaS plus service empowerment model in the housekeeping services.
None: <unk>, our self operated model.
None: After six months of market validation for companies called keeping an accommodation associates began a comprehensive transition towards a SaaS problem probably model.
None: That's really the second half of 2023.
This shift allows other small and medium sized the live service providers to utilize to chew was mature operations.
None: So I just called out to better meet customer needs.
None: Okay.
Leslie Yu: This shift allows other small and medium-sized life service providers to utilize Quhuo's mature operations and service products to better meet customer needs. This transformation of the business model drove rapid growth in the GMV of the housekeeping and accommodation solutions in 2023, reaching RMB 514 million, a 53% increase compared to 2022. Furthermore, thanks to the successful implementation of SAS Class Service Empowerment, the profitability of the business segment significantly improved. The gross profit increased by 48.7% year-on-year, and the gross profit margin rose from 13.4% to 26.4% in the housekeeping and accommodation solutions sector. What's even more pleasing is that the empowerment of such a class service has also led to significant cost decreases. The overall operating cost of housekeeping and accommodation solutions decreased by 35.5%, with a remarkable 36.4% decrease in the operating cost of hotel services, showcasing significant cost reductions.
None: Fifth transformation most of you know small Dow Jones rapid growth in the GMT holds the housekeeping on accommodation solutions in 2023, reaching RMB $514 million.
None: A 53% increase compared to 2022.
None: Furthermore, thanks to the successful implementation of Suntrust servicing policies.
None: The profitability of the business.
None: Significantly improved.
None: The gross profit increased by 48, 7% year on year I think that if gross profit margin rose from 13.4 to 26 point before in housekeeping kind of accommodation solutions sector.
None: Yeah.
None: What's even more pleasing he said the impairment. So SaaS profitability has also led to significant cost decrease.
None: So overall operating cost of coal housekeeping and accommodation solutions decreased by 55, 5% with a remarkable performance.
None: Coffee place is all placing court upholds the hotel associates showcasing significant cost reductions.
None: <unk>.
None: So I would say, yes, two solid months in history, but it was the innovation in common stock across cities, we not holding significantly enhance the capabilities of local service provider, but also deeply integrated SAP system into our business operations.
None: Cheating significant transformational results.
So it's challenging to reduce the cost of the entire supply chain, improving operation efficiency and abroad with significant political economic benefits to the company.
Leslie Yu: Throughout the year 2023, through the innovative empowerment of the SAS Class Service, we not only significantly enhanced the capabilities of local service providers but also deeply integrated the SAS system into our business operations, achieving significant transformation results. This strategy effectively reduced the cost of the entire supply chain, improved operation efficiency, and brought significant economic benefits to the company. Overall, Quhuo's revenue is primarily from three types of platforms: Platform for Human Services is the earliest business segment that Quhuo ventured into, and it serves as the cornerstone of the company. It mainly involves on-demand delivery and mobility service solutions and generates revenue through a service fee for order fulfillment. This segment is an important component of the company's revenue as it is steadily developing. In 2023, the revenue from procurement services is expected to reach RMB 3.5 billion.
None: Yeah.
None: Overall shipments revenue is probably I would say that.
None: That's fallen to four P. M at the city's first class service and then there's no trade on the technology service.
None: Therefore fulfillment. So this is a.
None: Business sentiment had a chalkboard penetrating too and it serves as the cornerstone of the company.
None: And then mainly involved ophthalmology Marie and mobility solutions and generate revenue so to speak for Aldo fulfillment.
None: Semi piece and so part of the component until the company's revenue F&B standards Antivirals.
None: In 2000 US initially so revenue from fulfillment services reached RMB three 5 billion.
None: Possibly as much as what it is.
None: One of the engine for the San Nicols crew, focusing primarily on call. It keeps you on accommodations overseas.
None: I think generally revenue so a child you full credit for your problem and that's bumps sepsis.
None: So great had similar made five SaaS paas services towards outlooks industry, Havent, giving us confidence to establish an extensive cooperation with more new customers.
None: Are they dependent stockpiles, obviously into market in these areas.
None: I wouldn't say, we are in discussion with leading medical institutions long term rental car the bonds and the senior or even a pilot scheme, China, intending to add towards the medical and the elderly care industries.
None: You know that's you know what kind of revenue, even though the engine for the second of the growth curve.
None: I think our promulgated his solutions.
None: Especially when they use the coatings part business.
None: So you think they always paying coiled tubing penetration in collateral trade older used vehicles such as.
Leslie Yu: SAS Class Service, as mentioned earlier, is one of the engines for the second growth curve, focusing primarily on house TPU and accommodation services. It generates revenues through charging for flexible employment platform services. The great achievements made by SAS Task Service in 2023 have given us the confidence to establish extensive cooperation with more new customers and extend the fast time service into more business areas. Currently, we are in discussions with leading medical institutions, long-term rental platforms, and senior living apartments in China, intending to enter the medical and elderly care industry. International Chain Revenue is another engine for the second growth curve, derived from mobility solutions, especially in the used vehicle export business, facing various pain points in the international trade of used vehicles, such as authenticity of transactions, transparency of processes, guarantee of vehicle quality, and inadequate after-sales service.
None: Authentic alternative changes towards better field processes get into old vehicle qualities and inadequate occupancy all facilities.
None: Q1 international without it and I'm sure, you'll keep us equally deposit shinny platform called cannot.
None: This platform aims to create how cheap always marketing environment for car manufacturers.
None: And consumers, while providing one stop solutions to challenges related to the quality all the used vehicle products sales channels and after sale services.
None: [noise] Mason says there has been a push in China for a new round of large scale you can whatever you can see locals kidney programs, which will be valid team more used vehicle Atkins of Archie.
None: Aligned with the growing demand for used vehicles in oversea market.
None: Leveraging our advantages of whole Calantha Chilean platform and the high quality associates she'll aimed towards Cds as people with opportunity consolidate our leading position in the international trade all the used vehicle and in spite of gorilla to greater market potential for used vehicles in China.
None: Yeah.
None: Southpaw. She was three major service models have jointly constructed and integrate and diversify the commercial landscape.
Leslie Yu: Quhuo International will launch a unique used vehicle export training platform called Karnak. This platform aims to create a cheaper way to market the environment for car manufacturers, dealers, and consumers while providing one-stop solutions to challenges related to the quality of used vehicle products, sales channels, and after-sales services. Recently, there has been a push in China for a new round of large-scale equipment renewal and consumer goods trading programs, which will result in more used vehicles entering the market. This aligns with the growing demand for used vehicles in overseas markets. Leveraging the advantages of the Carnot trading platform and high-quality services, Quhuo aims to seize this business opportunity, consolidate its leading position in the international trade of used vehicles, and explore a greater market potential for used vehicles in China.
None: What is the corner stone sector being the fulfillment services, which has a stabilizing force for the company's revenue and a profit.
None: Meanwhile, subsides possibilities and international trade, so bad spiteful jives for the company's cross the Ts business expansion.
None: Leading to higher opportunities for overall business growth.
So you also seek to diversify the company's income streams and the in house as a profit debated C. I by opening a significant growth potential for the company.
None: In conclusion, while also the transformation of the SaaS and Paas business a lot she wants international expansion happened.
None: She was brought up all of the new opportunities with the employment market in.
None: In the future, we will I'll say extend how long of a cure unlucky myeloid delivery service to oversea market.
None: So partnership with local on demand service platforms within 2% global risk services, providing more choices opportunities for workers.
None: Domestically and abroad.
Unknown Executive: So far, Quhuo's three major service models have jointly constructed, integrated, and diversified the commercial landscape, with the cornerstone sector being the fulfillment services, which serve as a stabilizing force for the company's revenue and profit. Meanwhile, the SaaS product service and international chain serve as vital drives for the company's proactive business expansion, leading to higher opportunities for overall business growth. In conclusion, whether through the transformation of the SaaS business or Quhuo's international expansion efforts, it has brought about new opportunities in the employment market. In the future, we will also extend our mature on-demand delivery service to overseas markets; through partnership with local on-demand service platforms, we aim to further develop global delivery services, providing more choices and opportunities for workers, both domestically and abroad. This initiative will contribute to promoting employment growth, enhancing good labor market flexibility, and further driving sustainable socio-economic development. I have concluded my prepared remarks here, and now I would like to transfer the call to our CFO, Barry, to provide further insight into our financial situation.
None: Since the initial table, we have contributed to promoting employment growth enhancing.
None: Labor market flexibility and the first is driving sustainable social economic development.
None: I am putting it in my prepared remarks here in a long time without your support.
None: Called TWA faithful Barry to provide a first those insights and proud off financially.
None: Okay.
Barry: Thanks Leslie.
Barry: Hello, everyone and welcome to Chew for second half and the full year of 2023 conference call. Please be reminded that all amounts culture here will be RMB unless stated otherwise.
Barry: Before I go into our full year results I would like to draw your attention to some something notable.
Barry: It occurred during the second half of 2023.
Barry: For the six months ended December 31, 220 sweep revenue was RMB 1966 0.1 minutes.
Barry: Slightly increase compared with two of them trying to central it which was the RMB.
Barry: 1009.
Barry: Now I hand, or the 56 pardon me six minutes.
Barry: Now, let's look at the segment result, wildly from all of the mouse with delivery of the solution will be 1000 <unk>.
Barry: $763 2 million rather than seeing a decrease about 6% from RMB 1870, 4.9 minutes and the <unk>.
Barry: That's what I'm trying to two primary because we enjoyed more preferential policies and the subsidies to it in the second half for 'twenty.
Barry: Turning to primarily because we.
Barry: We are.
We enjoyed a subsidy and amid the COVID-19, pandemic, which was significantly reduced in the six months ended at two centers in December 31, 234, he was a relief.
Barry: Pandemic revenue from mobility service solutions, consisting of share back with tenants right, having Waco export solutions and the Forest service solutions from the 175.3 minute, representing representing an increase of.
Unknown Executive: Thanks Leslie. Hello everyone, welcome to Quhuo's second half and the full year of the 2023 conference call. Please be reminded that all amounts called here will be RMB and not stated RY. Before I delve into our full-year result, I would like to draw your attention to something notable that occurred during the second half of 2023. For the six months ended December 31, 2023, revenue was RMB 1,966.1 million, which was slightly increased compared with 2022, the same period, which was RMB 1,956.6 million.
Barry: 239, 6% from RMB 51 million.
Barry: In the second half year of 2022, primarily due to the success of vehicle export solutions, which generated revenue of RMB 142 point sorry.
Barry: Revenue from housekeeping Commendation solutions and other services.
Barry: Well RMB 27 5 million.
Barry: Representing a decrease of about eight 3% from RMB 30 million in the second half.
Barry: Of 2022.
Barry: Preliminary due to the transition of business model Hotel services.
Barry: Cost of revenue was on the $1866 3 million representing a eight three.
Unknown Executive: Now let's look at the segment results. One million from the on-demand food delivery service will earn me $1,000. 763.2 million, representing a decrease of about 6% from RMB 1,874.9 million in the second half of 2022. Primarily because we enjoyed more preferential policies and subsidies during the [inaudible] We enjoyed subsidies amid the COVID-19 pandemic, which was significantly reduced in the six months ended December 31, 2023, following the relief of the pandemic. revenue from mobility service solutions consisting of shared back maintenance, ride-hailing Primarily due to the success of vehicle export solutions, which generates a revenue of RMB 142.5 million.
Barry: On a year over year increase permanent or a long ways to increase our total revenues.
Barry: In general.
Barry: And there the movies or the administrative experience for all of them be 102.7 million, representing a decrease of nine 9% from RMB.
And are there for him one 1 million in the second half or two of them trying to preliminary due to the improvement of income the Medicare and the efficiency and the decrease in share based compensation expense from RMB.
Barry: Seven 3 million in the second half oxo them too.
Barry: Another benefit of RMB $12 3 million in the second half of 2023.
Barry: R&D experience were RMB five 7 million.
Barry: Rather than seeing increase of sixties Oh St.
Barry: So you see that part and 6% from RMB five 4 million in the second half or toward I'm trying to to permanent due to increased investment gains subclass technology speech.
Barry: Speaking of income we recorded record.
Barry: Other income net of RMB.
Barry: Seven 7 million compared to other loss of RMB 17. Upon every minute second half after them turning to primarily due to the fluctuation in the fair value of our <unk>.
Unknown Executive: Revenue from housekeeping and accommodation solutions and other services was RMB 27.5 million, representing a decrease of about 8.3% from RMB30 million in the second half of 2022, primarily due to the transition of the business model in hotel services. The cost of revenue was RMB 1,866.3 million, representing a 3.8 year-over-year increase, permanently in line with the increase in total revenues. [inaudible] 7.3 million in the second half of 2002 to a net benefit of RMB 4.3 million in the second half of 2023. R&D expenditure for R&D 5.7 million, representing an increase of 6.6% from RMB 5.4 million in the second half of 2022, primarily due to increased investment in SAS Plus technology.
Barry: Investment in the mutual fund.
Barry: Tax expenses were RMB, one 4 million compared to income tax expense of RMB.
Barry: 14 upon three minutes in the second half of children turn into permanent due to the lower estimated annual effective tax rate for the second.
Barry: Oh 2023 now.
Barry: Net income attributed attributable to chew whole image was RMB 13 million compared with net income attributable to shoot well I mean, all 11 8 million in the second half of 2022.
Barry: Adjusted EBITDA was RMB $24 1 million compared with adjusted EBITDA of RMB $47 8 million in the second half of 2022.
Barry: Adjusted net income was RMB, seven 4 million compared to the adjusted net income of RMB 17, 4 million in the second half what I'm trying to choose.
Unknown Executive: Speaking of income, we've recorded other income, not in RMB. 10.7 million compared to other last night of RMB 17.8 million in the second half of 2022 primarily due to the fluctuation in the fair value of our investment in the mutual fund; income tax expense of RMB 1.4 million compared to the income tax expense of RMB 14.3 million in the second half of 2022 primarily due to the lower estimated annual effective tax rate for the second half of 2023. The net income attributable to Quhuo Limited was RMB$13 million compared with net income attributable to Quhuo Holdings Limited of RMB$11.8 million in the second half of 2022.
Barry: Now, let's move to the full year of 2023.
Barry: During the fiscal year of 223 total revenue was RMB 3000 in the southern.
None: And it's two parts for me man.
None: <unk> was total revenue of RMB 3812 are important for a minute in 2022.
None: Further breakdown revenue from all of the Mt. Food delivery solutions was RMB 3412 8 million compare.
None: Representing a decrease of six 2% from RMB $3638 7 million in two of them turned into permanent due to enjoy we enjoyed more preferential policy and a subsidiary during 2000 and turn it to create the COVID-19 pandemic.
Which was significantly reduced in 2023 following the relief of the pandemic.
Unknown Executive: Adjusted EBITDA was RMB$24.1 million compared with adjusted EBITDA of RMB$47.8 million in the second half of 2022. The adjusted net income was RMB7.4 million compared to adjusted net income of RMB17.4 million in the second half of 2020. Now, let's move to the full year of 2023. During the fiscal year of 2023, total revenue was RMB 3,007.24 million, compared with total revenue of RMB 3,820.4 million in 2022. A further breakdown
None: Revenue from the mobility services solutions.
None: 233 million, representing an increase of 116, 4% from RMB.
None: The $8 1 million into it I'm trying to to permanent.
None: The success of our vertical export solutions base.
None: Export it around.
None: 1900 units of new energy vehicles, and your luxury small pass from China.
Two little oversea market and generally to the revenue of RMB.
None: <unk> hundred 54 part in five minutes.
None: Revenue from housekeeping and termination of solutions and other services were RMB 55, 7 million, representing a decrease of 24, 2% from RMB 73, six a minute into entrees into preliminary due to the transaction of the business model.
Unknown Executive: Revenue from undemandable delivery solutions was RMB 3,412.8 million compared, representing a decrease of 6.2% from RMB 3,638.7 million in 2022. Primarily due to we enjoyed more preferential policies and a subsidy during 2022 amid the COVID-19 pandemic, which was significantly reduced in 2023 following the relief of the pandemic, revenue from mobility service solutions was RMB 233.8 million, representing an increase of 116 Primarily due to the success of vehicle export solutions, they exported around 1,900 units of new energy vehicles and electric small paths from China to the overseas market and generated revenue of RMB.
None: Hotel service rigs.
None: Regarding the cost of revenue, which was RMB $3435 8 million, which remained relatively stable as compared to the cost of revenue in 2000 and trying to cure.
None: Now, let's move to expenses.
He says well RMB 80.
None: $84 3 million, representing a decrease of 13, 7% from RMB $213 six minute permanent due to the decrease in share based compensation expense from RMB 19 million in 2010 into two another benefit of RMB.
None: We're part of a five minute.
None: In 2022.
R&D expense to remain relatively stable at RMB $12 4 million in 2023 compared with to one part of the five minutes, which was I'm trying to.
None: [laughter].
None: Our C O Leslie said before in 2017, one we proposed a strategy of improving profitability after increasing revenue.
Unknown Executive: 154.5 minutes, Welcoming guests from housekeeping and accommodation solutions and other services for RMB 55.7 million, representing a decrease of 24.2% from RMB 73.6 million in 2022, primarily due to the transaction of the business model in hotel services regarding the cost of revenue, which was RMB 3,000. 435.8 million, which remains relatively stable as compared to the cost of revenue in 2022. Now let's move to expenses.
None: Got it.
None: This strategy was probably in 2022 and 273.
None: As we have achieved a positive EBIDTA for kind of a concept.
None: Constructive half years, we should is a remarkable accomplishment.
None: [laughter].
None: In particular as far as the company has consistently posted profitability over the past two years, demonstrating a stable and solid operational performance.
None: [laughter].
None: Other income was RMB 16, 7 million compared to other loss night, all of RMB 26, pardon one minute to centrally to.
Unknown Executive: G&A expense for RMB 184.3 million, representing a decrease of 13.7% from RMB 213.6 million. This is due to the decrease in share-based compensation expense from RMB 19.8 million in 2022 to a net benefit of RMB 0.5 million. [inaudible] As our CEO Leslie said before, in 2021, we proposed a strategy of improving profitability after increasing revenue. The effectiveness of this strategy was proven in 2022 and 2003, as we achieved a positive EBITDA for four consecutive half years, which is a remarkable accomplishment. Wow!
None: Primarily due to the fluctuation in the fair value of our investments in the mutual fund income tax benefit was RMB <unk> 9 million compared to an income tax expense of RMB 21 point 20.
'twenty one minute in 2022 permanent due to the lower aspect I mean, I know the effective tax rate for the year, two sometimes three and the increase in the.
None: Deferred tax asset benefit.
None: Net income attributed to Chew Co Ltd.
None: That'd be a $3 3 million compared with net loss attributed to chew on.
None: On the 30th pardon the one minute in 2022.
None: Adjusted EBIDTA was RMB $35 2 million compared with adjusted EBITDA of RMB fit.
None: The $8 six minutes into it I'm trying to adjusted net income.
Unknown Executive: It signifies the company's consistent profitability over the past two years, demonstrating a stable and sound operational performance. (Inaudible) Other income night was RMB 16.7 million compared to other loss night of RMB 26.1 million in 2022, primarily due to the fluctuation in the fair value of our investment in the mutual fund. The income tax benefit was RMB 0.9 million compared to the income tax expense of RMB 21.1 million in 2022, primarily due to the lower annual effective tax rate for the year 2023 and the increase in the Florida Tax Adversary Benefit. Net income attributed to Quhuo Limited was RMB 3.3 million compared with net loss attributed to Quhuo Limited of RMB 13.1 million in 2022. Adjusted EBITDA was RMB 35.2 million compared with adjusted EBITDA of RMB 58.6 million in 2022. Adjusted net income was RMB 5.5 million compared with adjusted net income of RMB 3.3 million in 2022. In terms of the balance sheet in 2023, as of December 31, 2023, the company has cash short-term investment and restricted cash of RMB114.8 million and short-term debt of RMB92.7 million.
None: It was RMB five 5 million as compared with adjusted net income of RMB, three 3 million in 2022.
None: In terms of the of the balance sheet in 2023.
None: Uh huh.
None: As of December.
None: So the first of 2023.
None: <unk> has cash and short term investments and the restricted cash of RMB 114 million.
None: And the short term debt of RMB 92 7 million.
None: This concludes my prepared remarks, thank you for your attention.
None: Now pleased to take your questions. Operator. Please go ahead.
None: We will now begin the question and answer session.
None: To ask a question you May Press Star then one on your Touchtone phone.
None: If you are using a speakerphone please pick up your handset before pressing the keys.
None: Is it any time your question has been addressed and you would like to withdraw your question. Please press Star then two.
None: At this time, we will pause momentarily to assemble our roster.
None: Once again to ask a question. Please press Star then one.
Okay.
Sure.
None: Yes.
None: Yeah.
None: It appears we have no questions at this time I would like to turn the conference back over to management for closing remarks.
None: I'm sorry, it will be wrong to raise the floor on the latter two.
None: Hello, Matt.
Matt: Maybe give us more prominent.
Matt: Yes.
Matt: Yeah.
Matt: Okay. So if theres no more questions email finish our conference call here.
None: Hello, everyone.
None: If you have Mark Hudson you can find out is going to come from has brought our average okay.
Unknown Executive: This concludes my prepared remarks. Thank you for your attention. We are now pleased to take your questions. Operator, please go ahead.
None: Okay. Thank you everyone.
None: Goodbye.
None: Yeah.
None: Pardon me it looks like we do have some questioners who have dialed in.
None: The first one is from they'll be with Tiger brokers. Please go ahead.
Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
None: Yeah. Thank you. This is bill from Kinder, Thank you to the cautionary.
Bill: My question was more strategic plan for the next steps.
Bill: Yeah.
Bill: Thank you.
Bill: Yes.
Unknown Executive: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Once again, to ask a question, please press star, then 1. (Inaudible) It appears we have no questions at this time. I would like to turn the conference back over to management for closing remarks.
None: Okay Sushi celebrity.
None: CEO of <unk>, who are there.
None: Regarding the future plan.
None: Frustrated that.
None: Over the past decade, and we concentrate on building our core competence is a lean operation.
Unknown Executive: I'm sorry, we want to wait for if there are any investors who want to, (inaudible) maybe give us another minute. Okay, so if there are no more questions, we will finish our conference call here. Thank you everyone for listening, and if you have more questions, you can find us and contact us from our AI website. Okay, thank you everyone, and goodbye. Pardon me, it looks like we do have some questioners who have dialed in. The first one is from Bill Lee with a Tiger Broker. Please go ahead.
None: Through our self operated model and by the way you expected.
None: After the exploration in 2023.
None: From 2010, this pool all worth it.
None: We would like to define our strategy too.
From self operation to collaborative empowerment.
None: Which means the way we ought to explore more opportunities in collaboration and a.
None: More focusing in parliament.
None: So we consider three main areas too.
None: Payment of fees, a collaborative empowerment strategy.
Unknown Executive: Thank you. This is Bill from China. Thank you to the management for sharing. My question is, what is Quhuo's strategic plan for the next steps?
None: And the first phase.
None: The domestic side.
We will focus on providing SaaS paas facilities empowerment.
Unknown Executive: Thank you.
Leslie Yu: Okay, this is Leslie and the CEO of Quhuo. Regarding the future plan, let's see that. Over the past decade, I know we have concentrated on building our core competence in lean operation through our self-operated model.
None: And not just the empowering local lifestyle yourself waitress in housekeeping and a combination it will be.
None: Also we are extending.
None: Our SaaS possibilities to broaden their business areas.
Leslie Yu: By the way...
Leslie Yu: But we expected that after the expiration of the contract in 2023, from 2004 onward, we would like to define our strategy to move from self-operation to collaborative empowerment, which means we will explore more opportunities for collaboration and focus more on empowerment. So we consider three main areas to implement this collaborative empowerment strategy, on the domestic side. We will focus on providing SAS Class Service Empowerment and not just empowering local life service operators in housekeeping and accommodation.
None: For example, like kind of elderly care.
None: Oh, it's China.
Now as the aging population and medical services.
None: And the answer we will empower.
None: Long term rental apartments.
None:
None: All of the international trading side.
None: Where we are more focused on.
None: Empowering our trading partners worldwide.
None: So we plan to launch a trading platform we call these contacts which we all.
Leslie Yu: We are also extending our third-class service to broader business areas. For example, like elderly care because China is now an aging population, and medical services, and also we will empower long-term rental apartments on the international trading side. We are more focused on empowering our trading partners worldwide. So we plan to launch a trading platform we call Karnax, which we are working closely with our 58 service dealers. [inaudible] We plan to transform them into our original operational collaborative service partners. They will work together with us to further explore the opportunities worldwide to address the issues of transparency and security for the used vehicle export trade. With this initiative, and we hope that we can provide more quality assurance for our trading partners worldwide and expand more opportunities in the development of new energy vehicles.
None: Our working closely with our 58 service data.
None: Worldwide.
None: We plan to transform them into all of our regional operational.
Collaborative partners.
None: We all work together with us to Florida.
None: Explore opportunities worldwide to address the issues of transparency on the securities for us that the Cogs part of China.
With this initiative and we hope that.
We can.
None: So issuing carmax.
None: Certificate provide.
None: More quality assurance.
None: For all of our trading partners worldwide.
None: And then you spend the more opportunities.
None: The development of new energy vehicles.
None: Yes.
None: And.
None: Obviously for the Crazy cheap.
None: Sure Mike this year under revenue in international.
Leslie Yu: Honda, obviously, further increasing Quhuo's market share and revenue in international do this much, and another part of collaborative empowerment we think about is the on-demand delivery business. We did some investigation and feasibility studies, and we believe that the overseas on-demand delivery market is characterized by significant consumer skill and high growth potential, as projected data. [inaudible] says the mattress size of, so the CMR is suitable for all humanity in the world, has reached about more than 600 billion by 2000. So do you, too?
None: In this match it.
None: Yeah.
None: And another part of collaborative empowerment, we think about east <unk> on demand delivery business.
None: Yeah.
None: We do some investigation and feasibility studies.
None: We believe who said she'll oversee on demand delivery market.
Is characterized by significant consumer scale and high growth potential.
None: Okay.
None: As the projects King date ha.
None: And he said set.
None: The mattress size of.
None: So the C market for Alibaba going away.
None: He has reached about.
None: More than 600 billion.
None: By 2000.
None: So they too.
Leslie Yu: But, however, we see problems like poor service experience, high delivery cost, and also insufficient capacity to handle large volumes of orders at peak times. So we think it's a good opportunity for Quhuo. So in 2024, we will focus on Southeast Asia and the Middle East as our pioneer stations for overseas expansion, and we will cooperate with the local on-demand platform, and some restaurants and also localized life service providers. The way we are mainly to..., of support service experience and high cost in the overseas delivery service market, and we believe that the experience, expertise, and also the technology, which we accumulated in the past 10 years in China can empower our working partners overseas And our plan is by 2025, Wei aims to achieve business implementation in more than five new countries and explore other regional markets. So about our future plan.
None: But however, we see the problems and the problems like Kapoor service experience.
None: And Ah hi, deliberate cost.
None: Announcer insufficient capacity to handle large volumes of orders in the peak time.
None: So when he I think he is a good opportunity for sure.
None: So in 2000 attended full way, we all focus on South East Asia.
None: And the Middle East has our pioneer stations for overseas expansion.
None: And the way we are cooperating with the local on demand platform.
None: And some restaurants and also localize the live service providers.
None: I know we are mainly two.
None: Oh, who had poor service experience and a high cost in the homeless hitting everybody service market.
None: And we believe that.
None: The experience expertise and also as a technology.
None: What do we accumulated hit it in the past 10 years in China.
We don't we all.
None: Empower our working partners in oversea.
None: We expect to achieve.
None: Small business growth.
None: In oversea market.
None: And our plan is by.
None: By 2025.
None: Wei.
None: Aim to achieve in this implementation.
None: All of them five new countries.
None: And exploit.
None: Although regional markets and you've heard them all.
Leslie Yu: In summary, in 2024, we are considering that firstly, we are maintaining Hawa'a, our Domestic Cornerstone Business. Stay well.
None: So a volatile our future plan.
None: In summary in 2000, and tactful way considering that firstly, we are maintaining.
None: Our.
None: Domestic cornerstone business.
Leslie Yu: And at the same time, we will actively seek a growth opportunity in overseas markets, so enhance the company's profitability and growth space through the international expansion of used vehicles and also on-demand delivery, together with our domestic SAS class service. Thank you very much. I hope that can clarify what we are going to do in the future.
None: Table gross.
None: And at the same time, we will actively seek a growth opportunity in oversea market.
None: So youll, hence the company's profitability and our gross space. So those are the international expansion of the use of the vehicle and also on demand that you've already.
None: As always our domestic SaaS plus service.
None: Thank you very much.
I hope that clarifies that or what we're going to do in the future. Thank you.
Unknown Executive: Okay, operator, please check if there's more. As a reminder, if you have a question, please press star and then one to join the queue.
None: Yeah.
None: Okay. Operator, please check if there are more questions.
None: As a reminder, if you have a question. Please press star then one to join the queue.
None: Okay.
None: Yeah.
None: Yeah.
None: Yeah.
Unknown Executive: There are no further questions at this time. I'd like to hand the call back over for closing remarks. Okay, if there are no more questions, we will finish our conference call here. And thank you everyone for listening tonight. If there are more questions, you can contact us from the IR website.
None: There are no further questions at this time I would like to hand, the call back over for closing remarks.
None: Okay. If there are no more questions either finish our conference call here and thank you everyone listening Tonight.
None: There are no more questions you can contact us from.
None: That side, Okay. So that's all thank you goodbye.
Unknown Executive: Okay, so that's all. Thank you. Goodbye. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
None: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].