Quhuo Ltd (QH) 2022 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Quhuo Limited '22 H2 earnings conference call. (Operator Instructions)

感謝您的支持，歡迎來到 Quhuo Limited '22 H2 財報電話會議。 （操作員說明）

I would now like to turn -- hand the conference over to management. Please go ahead.

我現在想把會議交給管理層。請繼續。

Thank you, operator. Hello, everyone. Welcome to Quhuo second half and full year of 2022's earnings conference call. The company's results were released earlier today and are available on our IR website.

謝謝你，運營商。大家好。歡迎來到 Quhuo 2022 年下半年和全年的收益電話會議。公司的業績今天早些時候發布，可在我們的 IR 網站上查閱。

On the call today are Chairman and CEO, Leslie Yu; CFO, Barry Ba. Leslie will review business operations and 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 follow.

今天的電話會議是董事長兼首席執行官 Leslie Yu；首席財務官，Barry Ba。 Leslie 將回顧業務運營和公司亮點，隨後 Barry 將討論財務和指導。他們將在隨後的問答環節中回答您的問題。

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 Securities Litigation Reform Act of 1995. Such commitments are based on management's current expectations and current market and operating conditions and relate to the events that involve known or unknown risks, uncertainties, and other factors. All of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議可能包含根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述。此類承諾基於管理層當前的預期以及當前的市場和運營狀況，以及與涉及已知或未知風險、不確定性和其他因素的事件有關。所有這些都難以預測，其中許多超出了公司的控制範圍，這可能導致公司的實際結果、業績或成就與前瞻性陳述中的存在重大差異。

Further information regarding this and other risks, uncertainties, and factors is included in the company's filings with the US 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.

有關此風險和其他風險、不確定性和因素的更多信息包含在公司提交給美國證券交易委員會的文件中。公司不承擔因新信息、未來事件或其他原因而更新任何前瞻性陳述的任何義務，除非法律要求。

With that, I will now turn the call over to our Chairman and CEO, Mr. Leslie Yu. Please go ahead.

有了這個，我現在將電話轉交給我們的董事長兼首席執行官 Leslie Yu 先生。請繼續。

Thank you, and xièxie, [Juanna]. Thank you all for joining our second half and full year of 2022 earning conference call. In 2021, we proposed a strategy to improve profitability after increasing revenues. We achieved this goal with full-year revenue growth of 56% in 2021, followed by gross profit growth of 43.9% in 2022.

謝謝你，xièxie，[Juanna]。感謝大家參加我們 2022 年下半年和全年的收入電話會議。 2021年，我們提出了在增加收入後提高盈利能力的戰略。我們實現了這一目標，2021 年全年收入增長 56%，2022 年毛利潤增長 43.9%。

Since the execution of this strategy at the beginning of 2021, we had made several initiatives to expand revenue, which was mentioned in the 2021 annual report. To be more specific, in terms of on-demand delivery solutions, we increased the number of delivery orders we fulfilled by expansion into new geographic markets in 2021.

自2021年初執行該戰略以來，我們已採取多項措施擴大收入，這在2021年年度報告中有所提及。更具體地說，在按需交付解決方案方面，我們通過在 2021 年擴展到新的地理市場來增加交付訂單的數量。

In the mobility service solutions, we enlarged the customer base and the service scope of shared-bike maintenance solutions and commenced the freight service solutions in July 2021. In the housekeeping and accommodation solutions, we started the in-depth operation of [Chentou] and acquired Lailai to expand our solutions offering of hotels and B&Bs to enlarge the customer base of our housekeeping solutions.

在出行服務解決方案方面，我們擴大了共享單車維修解決方案的客戶群和服務範圍，並於2021年7月開始了貨運服務解決方案。在家政和住宿解決方案方面，我們開始深入運營[陳投]和收購來來以擴大我們在酒店和民宿的解決方案範圍，從而擴大我們客房服務解決方案的客戶群。

Those initiatives has maintained a stable income scale and achieved substantial increase in profits in 2022 despite the impact of COVID-19 on localized life service. With full-year revenue of RMB3,820.4 million and a gross profit of RMB252.7 million in 2022, Quhuo achieved a gross margin of 6.6%, higher than the 4.4% in 2021.

儘管受到COVID-19對本地化生活服務的影響，這些舉措仍保持了穩定的收入規模，並在2022年實現了利潤的大幅增長。趣貨2022年實現全年收入38.204億元，毛利2.527億元，毛利率為6.6%，高於2021年的4.4%。

And we achieved a historical turnaround in several figures, including operating income, adjusted EBITDA, adjusted net income. These results show the effectiveness of the company's strategy to improve profitability after increasing revenues and the trust with the ability of the company's team to implement the strategy. We believe that the company's business model is sustainable. And it has very short payback period, with an average payback period of about 12 months.

我們在幾個數字上實現了歷史性的轉變，包括營業收入、調整後的 EBITDA、調整後的淨收入。這些結果顯示了公司在增加收入後提高盈利能力的戰略的有效性以及對公司團隊實施戰略能力的信任。我們相信公司的商業模式是可持續的。投資回收期極短，平均投資回收期約12個月。

Next, let's move on to the [six] categories offered by Quhuo. We provide two categories of services on the gig economy platform. So first one is order fulfillment services for platforms, which mainly involves on-demand delivery solutions and mobility service solutions. Most of our clients in order fulfillment service platforms are well-known consumption service platforms, such as Meituan, Didi, [EOE], as well as some large chain catering enterprises, such as KFC, McDonald's, [Latching Colti], and so on.

接下來，讓我們繼續介紹Quhuo提供的[六個]類別。我們在零工經濟平台上提供兩類服務。所以第一個是平台的訂單履行服務，主要涉及按需交付解決方案和移動服務解決方案。我們訂單履行服務平台的客戶大多是知名的消費服務平台，如美團、滴滴、【EOE】，以及一些大型連鎖餐飲企業，如肯德基、麥當勞、【Latching Colti】等.

In this service, we provide standardized research products to our customers through executing lean management operations and charge a service fee for each order fulfilled. The revenue generated from this part is [RMB3.474 billion] in 2022, and the gross margin increases to 6.6% in 2022 from 4.1%? In 2021.

在這項服務中，我們通過執行精益管理操作向客戶提供標準化的研究產品，並對完成的每個訂單收取服務費。 2022年這部分產生的收入為【34.74億元人民幣】，毛利率從4.1%上升到2022年的6.6%？ 2021年。

The second one entails our housekeeping and accommodation services provided under SaaS service model. Our SaaS ability encompass the Quhuo path to the promised sales and a service team dedicated to maintaining the upkeep of the platform, including customer service and technology support, with which we focus on empowering small- and medium-sized localized life service providers and helping them expand their revenue and improve efficiency.

第二個是我們在 SaaS 服務模式下提供的家政和住宿服務。我們的SaaS能力包括去活路徑到承諾的銷售和致力於維護平台維護的服務團隊，包括客戶服務和技術支持，我們專注於賦能中小本地化生活服務商並幫助他們擴大收入，提高效率。

This mainly serves housekeeping and accommodation partners in the second half of 2022. The primary source of revenue for SaaS service products is a commission collected from the partners based on the GMV charges of our platform.

這主要服務於2022年下半年的家政和住宿合作夥伴。SaaS服務產品的主要收入來源是根據我們平台的GMV收費向合作夥伴收取的佣金。

We have always believed that technology plays a huge role in business growth, efficiency improvement, and partner empowerment. So we are committed to using our experience and management capabilities, accumulated over the past 10 years in the field of local life services, to develop SaaS services that can empower local life service providers based on the power of technology.

我們始終相信，技術在業務增長、效率提升和合作夥伴賦能方面發揮著巨大的作用。所以我們致力於利用過去10年在本地生活服務領域積累的經驗和管理能力，開發基於技術力量賦能本地生活服務商的SaaS服務。

Through SaaS service, we can connect the brand of Quhuo and the business resources on Quhuo local life platform to small- and medium-sized local life service providers, optimize their operational efficiency and compliance, and help the service provider reduce operational risks while increasing profits. Currently, this technology platform is capable of empowering various verticals, such as laundry, hotel, B&B, and our jobs in catering and housekeeping.

通過SaaS服務，我們可以將趣貨品牌和趣貨本地生活平台上的業務資源連接到中小本地生活服務商，優化他們的運營效率和合規性，幫助服務商在增加利潤的同時降低運營風險.目前，這個技術平台已經能夠賦能各個垂直領域，比如洗衣、酒店、民宿，還有我們的餐飲、家政等工作。

Relying on SaaS system, Quhuo helps these service providers to integrate online chatting and business resources from multiple platforms. Based on the core management and operational capabilities accumulated over the years as well as multi-channel brand building, Quhuo has expanded its operational strategy from urban B&B operation to rural B&B operation, achieving successful cases of light investment and detailed operation and empowering more than 8,000 customers.

趣火依托SaaS系統，幫助這些服務商整合多個平台的在線聊天和業務資源。基於多年積累的核心管理和運營能力，以及多渠道品牌建設，趣活將經營策略從城市民宿拓展到鄉村民宿，實現了輕投資、精細化運營的成功案例，賦能8000多家顧客。

The chat model trained by AI, which has received a lot of the attention recently, will be tentatively integrated into the business by Quhuo in the future. For example, we can use AI to increase the efficiency in training and recruiting these workers. We can also use AI technology in our B&B business, where operators can use it to assist online information maintenance of B&B Hotels, intelligent check-in, and self checkout of travelers.

近期備受關注的AI訓練的聊天模型，未來將被趣貨暫時融入到業務中。例如，我們可以使用人工智能來提高培訓和招聘這些工人的效率。我們也可以在民宿業務中使用AI技術，運營商可以用它來輔助民宿酒店的在線信息維護，以及旅行者的智能入住和自助退房。

Looking ahead to 2023, with it, Quhuo existing business will continue to grow. During the past three years that COVID-19 has been influencing the global economy, and the company whose main business is on-demand delivery, mobility service, housekeeping, accommodation have been affected seriously. With the full end of pandemic control and social restrictions completely lifted, on-demand delivery, mobility, and housekeeping and accommodation services are expected to make a rapid rebound in 2023.

展望2023年，有了它，趣貨現有業務將繼續增長。過去三年，COVID-19影響全球經濟，主要業務為按需配送、出行服務、家政、住宿的公司受到嚴重影響。隨著疫情防控的全面結束和社會限制的全面解除，按需配送、出行、家政和住宿服務有望在2023年實現快速反彈。

In 2023, Quhuo embarked on a new expansion. And we have officially launched Quhuo's international business in February 2023. Quhuo International will take full advantage of China's core strengths in both industry and Internet, manufacturing capabilities in new energy vehicles, and material internet technology and operational expertise to export industry plus Internet products and services to overseas partners.

2023年，趣貨開始了新的擴張。並於2023年2月正式啟動趣貨國際業務。趣貨國際將充分利用中國在工業和互聯網方面的核心優勢、新能源汽車製造能力、物聯網技術和運營專長，輸出工業+互聯網產品和服務給海外合作夥伴。

We aim to empower overseas partners with operational capability and technology of mobility services, such as online live selling and on-demand delivery, along with the export of Chinese electronic vehicles and [more pace]. This strategy has achieved the initial results, generating revenue from others.

我們旨在為海外合作夥伴提供移動服務的運營能力和技術，例如在線直播和按需交付，以及中國電動汽車和[更多步伐]的出口。這一戰略取得了初步成果，從他人那裡獲得了收益。

Quhuo is expected to give or play to its core competitive advantages in the industry, with existing technical and business capabilities and help our partners make considerable progress in overseas markets. We are confident that Quhuo's global business will bring a new growth curve to the company.

趣火將憑藉現有的技術和業務能力，發揮在行業內的核心競爭優勢，助力合作夥伴在海外市場取得長足發展。我們有信心趣貨的全球化業務將為公司帶來新的增長曲線。

This concludes my statement. I now will turn the call over to our Chief Financial Officer, who will discuss our financial results for the year of 2022. Thank you.

我的發言到此結束。我現在將把電話轉給我們的首席財務官，他將討論我們 2022 年的財務業績。謝謝。

Thank you, Leslie. Hello, everyone. Welcome to Quhuo's second half and full year of 2022 conference call. Please be reminded that all amounts quoted here will be in RMB unless stated otherwise.

謝謝你，萊斯利。大家好。歡迎來到趣火 2022 年下半年和全年電話會議。請注意，除非另有說明，否則此處報價的所有金額均以人民幣為單位。

Before I delve into our full-year results, I would like to draw your attention to something notable and that occurred during the second half year of 2022. For the six months ended December 31, 2022, revenue was RMB1,956.6 million, slightly declined compared to 2021, which were RMB2,187 million.

在我深入研究我們的全年業績之前，我想提請您注意 2022 年下半年發生的一件值得注意的事情。截至 2022 年 12 月 31 日止六個月，收入為人民幣 19.566 億元，略有下降與 2021 年相比，為人民幣 21.87 億元。

Now, let's look at the segment results. Our revenue from on-demand food delivery solution were RMB1,874.9 million, which represents a 9% decline from RMB2,071 million in the second half year of 2021. This decrease was primarily due to the reduction in the number of delivery orders caused by the regional resurgence of COVID-19 in multiple areas during the later year of 2022.

現在，讓我們看一下細分結果。我們來自按需外賣解決方案的收入為人民幣 18.749 億元，較 2021 年下半年的人民幣 20.71 億元下降 9%。這一下降主要是由於外賣訂單數量減少所致2022 年下半年 COVID-19 在多個地區的區域性死灰復燃。

The revenue from our mobility service solutions, which includes shared-bike maintenance, ride hailing, and freight service solutions, amounted to RMB51.6 million, reflecting a decrease of 23.5% from RMB67.4 million in the second year (sic - half) of 2021, which was primarily due to the reduce of customer demands resulting from the regional resurgence of COVID-19 in multiple areas during the second half of 2022.

我們的出行服務解決方案（包括共享單車維修、網約車和貨運服務解決方案）的收入為人民幣 5,160 萬元，較第二年的人民幣 6,740 萬元下降 23.5%（原文如此 - 一半） 2021 年，這主要是由於 2022 年下半年 COVID-19 在多個地區的區域性複蘇導致客戶需求減少。

The revenue from our housekeeping and accommodation solutions were RMB30 million, which indicates a decrease of 37.6% from the RMB48.2 million in the second half year of 2021. This was primarily due to the reduce of customer demand caused by the regional resurgence of COVID-19 in multiple areas during the second half of 2022.

我們的家政和住宿解決方案的收入為人民幣 3,000 萬元，較 2021 年下半年的人民幣 4,820 萬元下降 37.6%。這主要是由於 COVID 的區域捲土重來導致客戶需求減少2022 年下半年在多個地區 -19。

The cost of revenues was RMB 1,797.8 million, representing a 12.8% year-over-year decrease, primarily in line with the reduced of customer demand resulting from COVID-19. Our G&A expense were RMB114.1 million, representing a slight increase of 2% from RMB111.8 million in the second year of 2021.

收入成本為人民幣 17.978 億元，同比下降 12.8%，主要與 COVID-19 導致的客戶需求減少相符。我們的 G&A 費用為人民幣 1.141 億元，比 2021 年第二年的人民幣 1.118 億元小幅增長 2%。

R&D expenses were RMB5.4 million, representing a decrease of 50.8% from RMB10.9 million in the second half of 2021, primarily due to the decrease in the headcount and overall compensation level for our research and development personnel, as we restructured our R&D team.

研發費用為人民幣 540 萬元，較 2021 年下半年的人民幣 1,090 萬元下降 50.8%，主要是由於我們重組研發，研發人員的人數和整體薪酬水平有所下降團隊。

Speaking of income, our operating income was RMB43.7 million compared to an operation loss of RMB54.2 million in the second half of 2021. We recorded an other loss, net, of RMB17.8 million compared to other loss, net, of RMB6.6 million in the second half of 2021, primarily due to fluctuation in fair value of our investment in the mutual fund.

說到收入，我們的營業收入為人民幣 4370 萬元，而 2021 年下半年的營業虧損為人民幣 5420 萬元。我們錄得其他虧損淨額為人民幣 1780 萬元，而其他虧損淨額為2021年下半年為人民幣660萬元，主要是由於我們對共同基金投資的公允價值波動。

Income tax expense was RMB14.3 million, representing an increase of 75.2% from RMB8.2 million in 2021. Net income attributable to Quhuo Limited was RMB11.8 million compared with net loss attributable to Quhuo Limited, RMB46.4 million in the second half year of 2021.

所得稅費用為人民幣 1,430 萬元，較 2021 年的人民幣 820 萬元增長 75.2%。第二季度歸屬於趣貨有限公司的淨利潤為人民幣 1,180 萬元，而歸屬於趣貨有限公司的淨虧損為人民幣 4,640 萬元。 2021年半年。

Adjusted EBITDA was RMB47.8 million compared with adjusted EBITDA loss of RMB23.3 million in the same period of 2021. Adjusted net income was RMB 17.4 million compared with adjusted net loss of RMB53.0 million in the second half year of 2021.

調整後 EBITDA 為人民幣 4780 萬元，而 2021 年同期調整後 EBITDA 虧損為人民幣 2330 萬元。調整後淨收入為人民幣 1740 萬元，而 2021 年下半年調整後淨虧損為人民幣 5300 萬元。

Now, let's move on to the full year of 2022. During the fiscal year of 2022, total revenue was RMB3,820.4 million compared with a total revenue of RMB4,025.3 million in 2021. And for the breakdown, the revenue from our on-demand food delivery solution was RMB3,638.7 million, which indicate a decrease of about 5% from RMB3,829 million in 2021. This decrease was primarily due to the reduction in the number of delivery orders caused by the regional resurgence of COVID-19 in multiple areas during 2022.

現在，讓我們來看看 2022 年全年。在 2022 財年，總收入為人民幣 38.204 億元，而 2021 年的總收入為人民幣 40.253 億元。細目來看，我們的收入來自-需求外賣解決方案為人民幣 36.387 億元，較 2021 年的人民幣 38.29 億元下降約 5%。下降的主要原因是 COVID-19 的區域性捲土重來導致外賣訂單數量減少2022 年的多個地區。

The revenue from our mobility service solution was RMB108.1 million, reflecting a decrease of 1.9% from RMB110 million in 2021, which was primarily due to reduced customer demand caused by the regional resurgence of COVID-19 in multiple areas during 2022.

我們移動服務解決方案的收入為人民幣 1.081 億元，較 2021 年的人民幣 1.1 億元下降 1.9%，這主要是由於 2022 年 COVID-19 在多個地區的區域性複蘇導致客戶需求減少。

The revenue from our housekeeping and accommodation solutions was RMB73.6 million, indicating a decrease of 14.6% from RMB86.2 million in 2021. This was primarily due to reduced of customer demand caused by the regional resurgence of COVID-19 in multiple years during 2022.

我們的家政和住宿解決方案的收入為人民幣 7,360 萬元，較 2021 年的人民幣 8,620 萬元下降 14.6%。這主要是由於 COVID-19 在多個地區捲土重來導致客戶需求減少所致2022.

Regarding the cost of revenue, it amounted to RMB3,567.7 million, representing a 7.3% year-over-year decrease, primarily due to the decrease in service fees paid to workers, which was in line with the decrease of number of delivery orders resulting from the regional resurgence of COVID-19 in multiple locations in 2022.

營業成本方面，為人民幣35.677億元，同比下降7.3%，主要是由於支付給工人的服務費減少，與派送訂單數量的減少一致2022 年 COVID-19 在多個地點的區域性死灰復燃。

And let's move on to expenses. Our G&A expenses amounted to RMB213.6 million, reflecting a decrease of 11.3% from RMB240.7 million. This reduction was mainly due to a decrease in share-based compensation expense, which decreased from RMB86.9 million (sic - see press release, "RMB68.9 million") in 2021, down to RMB19.8 million in 2022.

讓我們繼續討論費用。我們的一般及行政費用為人民幣 2.136 億元，較人民幣 2.407 億元下降 11.3%。這一減少主要是由於股權激勵費用減少，從 2021 年的 8690 萬元人民幣（原文——見新聞稿，“6890 萬元人民幣”）下降到 2022 年的 1980 萬元人民幣。

R&D expense were RMB12.5 million, representing a decrease of 77.7% (sic - see press release, "37.7%") from RMB20.1 million in 2021, primarily due to the decrease in headcount and the average compensation level of our R&D personnel, as we restructured our R&D team.

研發費用為人民幣 1,250 萬元，較 2021 年的人民幣 2,010 萬元下降 77.7%（原文 - 見新聞稿，“37.7%”），主要是由於研發人員人數和平均薪酬水平的下降，因為我們重組了我們的研發團隊。

As our CEO has mentioned earlier, in 2021, we proposed a strategy of improving profitability after increasing revenues. The effectiveness of this strategy was proven in 2022, as our operating income increased despite the challenging market conditions.

正如我們的首席執行官剛才提到的，在 2021 年，我們提出了在增加收入後提高盈利能力的戰略。這一戰略的有效性在 2022 年得到了證明，儘管市場環境充滿挑戰，但我們的營業收入仍有所增加。

Operating income was RMB70 -- sorry, RMB35.6 million compared to operating loss of RMB139-point million in 2021. And other loss, net, was RMB26.1 million compared to other loss, net, of RMB34 million in 2022 -- sorry, in 2021, primarily due to the fluctuation in fair value of our investment in the mutual fund.

營業收入為 70 元人民幣——抱歉，3560 萬元人民幣，而 2021 年營業虧損為 1.39 億元人民幣。其他淨虧損為 2610 萬元人民幣，而 2022 年其他虧損淨額為 3400 萬元人民幣——抱歉，2021年，主要是由於我們對共同基金投資的公允價值波動。

Income tax expense was RMB21 million compared -- representing an increase of seven or 74.6% from RMB12 million in 2021. Net loss attributed to Quhuo Limited was RMB13.1 million compared to a net loss attributed to Quhuo Limited of RMB157.9 million in 2021. Adjusted EBITDA was RMB80 -- sorry RMB58.6 million compared with adjusted EBITDA loss of RMB72.7 million in 2021. Adjusted net income was RMB3.3 million compared with adjusted net loss of RMB122.3 million in 2021.

所得稅費用為人民幣 2100 萬元，比 2021 年的人民幣 1200 萬元增加了 7 元或 74.6%。歸屬於去火有限公司的淨虧損為人民幣 1310 萬元，而 2021 年歸屬於去火有限公司的淨虧損為人民幣 1.579 億元. 調整後的 EBITDA 為人民幣 80 元——與 2021 年調整後的 EBITDA 虧損人民幣 7270 萬元相比，對不起人民幣 5860 萬元。調整後的淨收入為人民幣 330 萬元，而 2021 年調整後的淨虧損為人民幣 1.223 億元。

In terms of balance sheet in 2022, as of December 31, 2022, the company has cash, short-term investment, and restricted cash of RMB165.4 million, and short-term debt of RMB65 -- RMB65.4 million. This concludes my prepared remarks. Thank you for your attention.

2022年資產負債表方面，截至2022年12月31日，公司持有現金、短期投資、受限制現金1.654億元，短期債務65-6540萬元。我準備好的發言到此結束。感謝您的關注。

We are now pleasured to take your questions. Operator, please go ahead.

我們現在很高興回答您的問題。接線員，請繼續。

Thank you. (Operator Instructions) [Serena Wong], Tiger Brokers.

謝謝。 （操作員說明）[Serena Wong]，老虎經紀人。

Hi. Thank you for taking my questions. I want to know what the strategy in 2022 is to improve profitability after increasing the revenues. So what's the company strategy in 2023?

你好。謝謝你回答我的問題。我想知道 2022 年在增加收入後提高盈利能力的策略是什麼。那麼2023年的公司戰略是什麼？

Yeah. Thanks for the question. This is Leslie. The strategy for 2021 and in 2022 is to improve profitability after increasing revenues, with focusing on achieving an increase in scale, which include both revenue and profit.

是的。謝謝你的問題。這是萊斯利。 2021年和2022年的戰略是在增加收入後提高盈利能力，重點是實現規模增長，包括收入和利潤。

From 2023 to 2025, in the view of the strategy, we will extend our long industry ecosystem to localized life, gradually transforming from a localized life out of -- or human service provider to a localized life operation service provider. For example, a (inaudible) of operation in being in a big industry. The project, Chentou, is currently in a leading position in this segment field and has empowered more than a thousand small and medium-sized homestay service providers after two years' operation.

從2023年到2025年，在戰略上，我們將長期的產業生態延伸到本地化生活，逐步從本地化生活脫離——或人性化服務商轉型為本地化生活運營服務商。例如，在一個大行業中的（聽不清）操作。陳投項目目前在該細分領域處於領先地位，經過兩年的運營，已賦能上千家中小民宿。

We provide a SaaS system and online check-in kind of brand operation in multi-platforms. We provide offline housekeeping, supply chain services for decoration, and consumable products. So [arms is] Quhuo empower more small and medium-sized localized service providers through our SaaS services and also relying on our national-wide operating network and leveraging accumulated technical capabilities and management expertise over the years.

我們提供多平台的SaaS系統和在線簽到類品牌運營。我們提供線下管家、裝修供應鏈服務、消耗品。所以[arm is]趣貨通過我們的SaaS服務，也依託我們遍布全國的運營網絡，利用多年來積累的技術能力和管理經驗，賦能更多的中小型本地化服務商。

Also, the business resources, we formed through long-term cooperation with consumption online platforms. We started to gradually realize superimposition and upgrading of the role from order fulfillment service provider to operation service provider in 2023 to 2025. Yeah. Thanks for the question. Thank you.

還有就是業務資源，我們是通過與線上消費平台長期合作形成的。 2023年到2025年，我們開始逐步實現從訂單履行服務商到運營服務商的角色疊加升級。謝謝你的問題。謝謝。

Thank you. (Operator Instructions) There are no further questions at this time, I'll hand the call back to the management team for closing remarks.

謝謝。 （操作員說明）此時沒有其他問題，我會將電話轉回給管理團隊以作結束語。

Yeah. Thanks, operator. And we don't have further remarks. Just thank you.

是的。謝謝，運營商。我們沒有進一步的評論。只是謝謝你。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

謝謝。今天的電話會議到此結束。感謝大家出席今天的演講。您現在可以斷開線路並度過美好的一天。

Thank you. You, too.

謝謝。你也是。