Quhuo Ltd (QH) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Quhuo first half year of 2023's earnings conference call. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. (Operator Instructions)

女士們、先生們，感謝大家的支持，歡迎參加趣活2023年上半年財報電話會議。管理層準備好發言後，將舉行問答環節。今天的電話會議正在錄音。 （操作員說明）

I would now like to turn the call over to Ms. Qishu Wang. Please go ahead, Qishu.

我現在想把電話轉給王琪淑女士。請繼續吧，琪舒。

Thank you, operator. Hello, everyone. Welcome to Quhuo's first half year of 2023's earnings call conference call. The company's results were released earlier today and are available on our IR website.

謝謝你，接線員。大家好。歡迎參加趣活2023年上半年財報電話會議。該公司的業績於今天早些時候發布，可在我們的投資者關係網站上查看。

On the call today are Leslie Yu, Chairman and CEO; 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 for answers your questions in the Q&A session that follows.

今天參加電話會議的是董事長兼首席執行官 Leslie Yu；首席財務官巴里·巴。萊斯利將回顧業務運營和公司亮點，隨後巴里將討論財務和指導。他們將在接下來的問答環節回答您的問題。

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 Legislation Reform Act of 1995. Such statements are based on management's current expectations and the 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《私人證券立法改革法案》的安全港條款做出的前瞻性陳述。此類陳述基於管理層當前的預期以及當前的市場和運營狀況涉及已知或未知的風險、不確定性和其他因素的事件，所有這些因素都難以預測，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與公司的實際結果、業績或成就存在重大差異來自前瞻性陳述中的內容。

Further information regarding these and other risks, uncertainties, and factors 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 the law.

有關這些和其他風險、不確定性和因素的更多信息包含在該公司向美國證券交易委員會提交的文件中。除法律要求外，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聲明的義務。

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

現在，我將把電話轉給我們的董事長兼首席執行官 Leslie Yu 先生。請繼續。

Thank you, Qishu. Thank you all for joining our first half of 2023 earnings conference call.

謝謝你，琪舒。感謝大家參加我們的 2023 年上半年收益電話會議。

Following the increasing value first and improving profitability later, actually in 2022, Quhuo continued to enhance profitability and optimize costs in the first half year of 2023. Meanwhile, based on our mobility service solutions, we have embarked on the creation of a second growth trajectory for our business, which has yielded significant achievements.

繼先增值、後盈利之後，其實到了2022年，趣活在2023年上半年繼續盈利能力提升和成本優化。同時，基於我們的出行服務解決方案，我們已經開始打造第二條增長軌跡為我們的業務取得了重大成就。

Of its current domestic income condition, Quhuo achieved a massive improvement in its financial results during the first half of 2023. Generally speaking, in the first half of 2023, Quhuo achieved a 78.6% year-on-year decrease in net losses and an 87.0% decrease in adjusted net losses. Adjusted EBITDA also increased by 2.8%, reaching RMB11.1 million.

就目前國內收入狀況而言，去活2023年上半年的財務業績實現了大幅改善。總體而言，2023年上半年，去活實現淨虧損同比減少78.6%，淨虧損同比減少87.0%。調整後淨虧損減少百分比。調整後 EBITDA 也增長 2.8%，達到人民幣 1,110 萬元。

First, the mobility service solutions and housekeeping services have delivered satisfactory results. Furthermore, we made progress in cost and expense control through technology optimization. In the first half of 2023, overall operating costs decreased by 5.7% year on year. General and administrative expenses decreased by 18% to RMB80.1 million (sic - see press release, "RMB81.6 million"), and the research and development expenses decreased by 7.2% to RMB6.6 million.

一是出行服務解決方案和家政服務取得了良好效果。此外，我們還通過技術優化，在成本費用控制方面取得了進展。 2023年上半年，整體運營成本同比下降5.7%。一般及行政費用下降 18% 至人民幣 8010 萬元（原文如此 - 參見新聞稿，“人民幣 8160 萬元”），研發費用下降 7.2% 至人民幣 660 萬元。

Considering the current economic condition in the domestic market, we also managed asset-liability allocation, resulting in an increase in interest income from RMB191,000 in the first half of 2022 to RMB742,000. Interest expenses also decreased by 38.6% from RMB3.8 million in the first half of 2022 to RMB2.3 million in the first half of 2023.

結合當前國內市場經濟形勢，我們還進行了資產負債配置管理，利息收入由2022年上半年的19.1萬元增加至74.2萬元。利息支出也由2022年上半年的人民幣380萬元下降至2023年上半年的人民幣230萬元，下降38.6%。

As you may know, our kinds of demand delivery solutions and mobility service solutions are mainly well-known consumer service platforms such as Meituan, Eleme, Didi, and major chain restaurants like KFC, McDonald's, and Luckin Coffee. Through platform fulfillment services, Quhuo offers clients streamlined management operations and standardized service products while charging service fees for order fulfillment. In the first half of 2023, the service revenue from on-demand delivery and mobility solutions, excluding vehicle export solutions, amounted to RMB1.7 billion.

大家可能知道，我們的需求配送解決方案和移動服務解決方案主要是美團、餓了麼、滴滴等知名消費服務平台，以及肯德基、麥當勞、瑞幸咖啡等大型連鎖餐廳。去貨通過平台履行服務，為客戶提供簡化的管理操作和標準化的服務產品，同時收取訂單履行服務費。 2023年上半年，除車輛出口解決方案外，按需配送和出行解決方案的服務收入達人民幣17億元。

Our housekeeping and accommodation services are provided on the SaaS plus service model. The SaaS plus service model primarily offers a comprehensive solution for housekeeping and accommodation and other community service providers, encompassing services such as online traffic, orders, payment, and customer support. Additionally, we provide value-added services like human resource management, financial management, and data analysis, helping such providers enhance management efficiency and decision-making capabilities, thereby improving service quality and user satisfaction, leading to increased revenue.

我們的家政和住宿服務以SaaS+服務模式提供。 SaaS+服務模式主要為家政住宿等社區服務商提供綜合解決方案，包括流量、訂單、支付、客服等服務。此外，我們還提供人力資源管理、財務管理、數據分析等增值服務，幫助此類提供商提高管理效率和決策能力，從而提高服務質量和用戶滿意度，從而增加收入。

Meanwhile, the primary source of revenue for SaaS plus service product is the commission collected from partners based on the GMV charges through our platform. In the first half of 2023, the revenue from housekeeping and accommodation solutions and other services amounted to RMB28.2 million.

同時，SaaS+服務產品的主要收入來源是通過我們的平台根據GMV收費向合作夥伴收取的佣金。 2023年上半年，家政住宿解決方案及其他服務收入為人民幣2,820萬元。

In the first half of 2023, we actively expanded the second growth curve. In February, Quhuo officially launched an international business under Quhuo International. After preparation in March and April, we officially launched the vehicle export solutions in May. As of now, the results have been significant.

2023年上半年，我們積極拓展第二條增長曲線。 2月，趣活國際正式啟動國際業務。經過3、4月份的準備，我們於5月份正式推出了整車出口解決方案。截至目前，成效顯著。

With cooperation intentions reached for over 3,000 units, the contract of 1,720 units had been signed and more than 200 units delivered. In May alone, the service generated revenue of RMB11.98 million and achieved profitability. The remaining service contracts that have been signed but not yet fulfilled are expected to continue bringing financial returns to the company in the second half of the year. Quhuo International will continue to increase investment in this business, gradually building a network of automotive dealerships in 58 countries and regions around the world, including Jordan and the United Arab Emirates.

達成合作意向3000餘台，已簽約1720台，交付200餘台。僅5月份，該服務就實現收入1198萬元，並實現盈利。其餘已簽署但尚未履行的服務合同預計將在下半年繼續為公司帶來財務回報。趣活國際將繼續加大對該業務的投入，逐步構建遍布約旦、阿聯酋等全球58個國家和地區的汽車經銷網絡。

According to the media report, the total volume of China's used cars in 2021 was approximately 15,000 vehicles. Within just one month of Quhuo's vehicle export solutions going live, the volume of signed contracts already accounted for 20% of the total exports for the entire year of 2021. The report indicates that China's used car exports are expected to exceed 100,000 vehicles in 2023.

據媒體報導，2021年中國二手車總量約為1.5萬輛。去火汽車出口解決方案上線僅一個月，簽約量就已佔2021年全年出口總量的20%。報告顯示，預計2023年中國二手車出口量將突破10萬輛。

With a predominant focus on electronic vehicle exports, this is said to provide Quhuo's internationalization efforts with an even greater room for extensive development. We believe that the achievements Quhuo has made in the vehicle export solutions are partly attributed to China's domestic vehicle scrappage policies and the [rare criticals] of the electric industry.

以電動汽車出口為主，這將為取貨的國際化發展提供更大的發展空間。我們認為，去火在整車出口解決方案上取得的成績，部分歸功於中國國內的汽車報廢政策和電動行業的[罕見批評]。

However, even more crucial is Quhuo's extensive data and operational experience in ride-hailing services. The business team of Quhuo's mobility service solutions has been deeply rooted in the ride-hailing service for over five years and possesses more than two decades of experience and resources in the automotive export field.

但更關鍵的是去火在網約車領域豐富的數據和運營經驗。去火出行服務解決方案業務團隊深耕網約車服務五年多，在汽車出口領域擁有二十多年的經驗和資源。

Currently, Quhuo has become one of the key partners of China's largest ride-hailing platform, Didi. All the above allows our business team of Quhuo's mobility service solutions to connect with various large and medium-sized automotive manufacturers, dealerships, and in the second-hand car market, allowing us to swiftly access information on vehicles for sale and establish close relationships with relevant entities.

目前，去火已成為中國最大的網約車平台滴滴出行的重要合作夥伴之一。這些都讓我們的取貨出行服務解決方案業務團隊能夠與各大中型汽車製造商、經銷商以及二手車市場對接，快速獲取待售車輛信息，並與他們建立密切的關係。相關實體。

Our close collaboration with overseas dealers has led to robust communication and cooperation ties. This formidable network of partnerships has laid a strong foundation for Quhuo's international expansion, enabling us to see then early presence in overseas market. Leveraging our material ride-hailing business line, operational experience, accumulated data, and diversified vehicle resources, we achieved profitability within just one month of launching this service.

我們與海外經銷商的密切合作帶來了良好的溝通與合作關係。這個強大的合作夥伴網絡為去活的國際擴張奠定了堅實的基礎，使我們能夠儘早進入海外市場。憑藉我們的網約車業務線、運營經驗、積累的數據以及多元化的車輛資源，我們在推出該服務後僅一個月內就實現了盈利。

In future, Quhuo will leverage its second-hand car repair capabilities for streamlined operations. Currently, the overseas expansion of used cars is on a fast track of development. Electric vehicles are the main source driving China's used car export, accounting for about 70%.

未來，去貨將利用其二手車維修能力，實現精簡運營。當前，二手車海外擴張正步入快速發展軌道。電動汽車是中國二手車出口的主要動力來源，佔比約70%。

In addition to serving ride-hailing drivers and providing these unused car sales, Quhuo possesses robust car repair capabilities. While offering ride-hailing solutions, the company has accumulated significant resources for vehicle maintenance and repair, creating a unique network of vehicle repair resources.

除了服務網約車司機並提供這些二手車銷售外，去貨還擁有強大的汽車維修能力。在提供網約車解決方案的同時，公司積累了大量的車輛維護和維修資源，形成了獨特的車輛維修資源網絡。

Relying on Quhuo International's long-standing network of overseas dealerships and the increasing volume of used car domestically, Quhuo will continue to build its core advantage in optimizing used car repair. By establishing and collaborating our repair centers nationwide, Quhuo aims to enhance efficiency through standardized process, create international used car certification standards, and optimize the environment for international used car transactions. For instance, setting up a refurbishment center at vehicle source locations, completing used car repairs and condition reparating, and ensure vehicles are shipped on the same day when they reach the port to reduce logistic costs.

依托去活國際長期建立的海外經銷網絡和國內日益增長的二手車保有量，去活將繼續打造優化二手車維修的核心優勢。去貨通過在全國范圍內建立和合作維修中心，旨在通過標準化流程提高效率，創建國際二手車認證標準，優化國際二手車交易環境。例如，在車輛源頭設立翻新中心，完成二手車維修和車況修復，確保車輛到達港口當天發運，降低物流成本。

Through innovative transaction models of domestic operations plus international export, Quhuo International will become the company's second growth wave and explore entirely new realms of development, which will boost the company's revenue and profitability, providing a broader scope for growth. Moreover, it will offer various industrial stakeholders more business opportunities and avenues for collaboration.

通過國內經營+國際出口的創新交易模式，去活國際將成為公司的第二波增長浪潮，探索全新的發展領域，從而提升公司的收入和盈利能力，為公司提供更廣闊的增長空間。此外，它還將為各行業利益相關者提供更多的商業機會和合作途徑。

It will not only foster the development of international automotive trade and bring forth opportunities arising from the booming electric vehicle industries to overseas countries and regions, but also actively assume a positive corporate social responsibility in global energy conservation and emissions reduction.

不僅將促進國際汽車貿易的發展，為海外國家和地區帶來電動汽車產業蓬勃發展的機遇，還將在全球節能減排中積極承擔企業社會責任。

We are confident that Quhuo International is offering a more diversified range of products and services to our clients, catering to the varied needs of different regions and markets. This will create additional revenue streams for us, propel overall company growth, and unlock substantial business opportunities and growth potential.

我們相信，去活國際將為客戶提供更加多元化的產品和服務，滿足不同地區和市場的多樣化需求。這將為我們創造額外的收入來源，推動公司整體增長，並釋放大量商機和增長潛力。

This concludes my statement. I will now turn the call over to our CFO, who will discuss our financial results for the first half of 2023.

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 2023 年上半年的財務業績。

Thanks, Leslie. Hello, everyone. Welcome to Quhuo's first half year of 2023 conference call. Please be reminded that all amounts for the year will be RMB unless stated otherwise.

謝謝，萊斯利。大家好。歡迎參加趣活2023年上半年電話會議。請注意，除非另有說明，當年所有金額均為人民幣。

The first year of 2023 total revenue is RMB1,736.3 million, compared with total revenue of RMB1,863.8 million in the first year of 2022.

2023年第一年的總收入為人民幣1,736.3百萬元，而2022年第一年的總收入為人民幣1,863.8百萬元。

As further breakdown, revenues from our on-demand delivery solutions were RMB1,649.6 million, representing a decrease of 6.5% from RMB1,763.8 million in the first half year of 2022, primarily because we enjoyed more preferential policies during the first year of 2022 amidst the COVID-19 pandemic, which was significantly reduced in the six months ended June 30, 2023 following the relief of the pandemic.

進一步細分，我們的按需配送解決方案收入為人民幣1,649.6百萬元，比2022年上半年的人民幣1,763.8百萬元下降6.5%，主要是我們在2022年第一年享受了更多的優惠政策在COVID-19 大流行期間，在大流行緩解後，截至2023 年6 月30 日的六個月內，該數字顯著減少。

Revenues from mobility service solutions, consisting of shared bike maintenance, ride hailing, freight service solutions, and newly launched vehicle export solutions, were RMB58.5 million, representing an increase of 3.6% from RMB56.5 million in the six months ended June 30, 2022, primarily due to two major points. One is the commencement of vehicle export solutions, which generated revenue of RMB12 million; and second, our enlarged customer base and the service scope for ride-hailing solution service.

出行服務解決方案（包括共享單車維修、網約車、貨運服務解決方案以及新推出的車輛出口解決方案）收入為人民幣5,850萬元，較截至6月30日止六個月的人民幣5,650萬元增長3.6% 2022年，主要是因為兩大點。一是啟動整車出口解決方案，實現收入1200萬元；二是擴大網約車解決方案的客戶群和服務範圍。

Revenues from housekeeping and accommodation solutions and other services are RMB28.2 million, representing a decrease of 35.2% from RMB43.5 million in the first six months ending June 30, 2022, primarily due to the construction of the business model in hotel and accommodation service.

家政及住宿解決方案及其他服務收入為人民幣2,820萬元，較截至2022年6月30日止首六個月的人民幣4,350萬元下降35.2%，主要是酒店及住宿業務模式建設所致服務。

Overall, Quhuo realized a number of financial data improvements amidst the current economic conditions in domestic market.

總體而言，在當前國內市場經濟形勢下，趣活實現了多項財務數據的改善。

Cost of revenue was RMB1,669.5 million, representing a decrease of 5.7% year over year, primarily attributed to the decrease in our labor costs and hiring expenses.

收入成本為人民幣1,669.5百萬元，同比下降5.7%，主要由於我們的勞動力成本和僱用費用減少。

Our G&A expense were RMB81.6 million, representing a decrease of 18% from RMB99.5 million in the six months ended June 30, 2022, primarily due to the decrease in two major points: one, to the share-based compensation expense has decreased from RMB12.5 million in the first year of 2022 down to RMB3.9 million in the first year of 2023; and the second, the welfare and business development expense and office expense has decreased from RMB29.5 million in the first year of 2022 down to RMB17.3 million in the first year of 2023.

我們的一般及行政費用為人民幣 8,160 萬元，較截至 2022 年 6 月 30 日止六個月的人民幣 9,950 萬元下降 18%，主要由於兩點下降：一是股權激勵費用減少由2022年第一年的人民幣1,250萬元減少至2023年第一年的人民幣390萬元；二是福利及業務發展費用和辦公費用從2022年第一年的人民幣2,950萬元減少至2023年第一年的人民幣1,730萬元。

Our R&D expenses were RMB6.6 million, representing a decrease of 7.2% from RMB7.2 million in the six months ended June 30, 2022, primarily due to the decrease in the average compensation level for our R&D personnel as a restructured result of our R&D team.

我們的研發費用為人民幣660萬元，較截至2022年6月30日止六個月的人民幣720萬元下降7.2%，主要是由於我們的重組導致研發人員平均薪酬水平下降。研發團隊。

Other income was RMB6 million compared to the losses of RMB8.3 million in the first half of 2022, primarily due to the increase in our fair value change on investment in the mutual fund.

其他收入為人民幣 600 萬元，而 2022 年上半年虧損為人民幣 830 萬元，主要是由於我們對共同基金投資的公允價值變動增加。

The income tax benefit was RMB2.4 million as compared to income tax expense of RMB6.7 million in the first year of 2022, primarily due to the increase in our deferred tax asset benefit.

所得稅收益為人民幣240萬元，而2022年第一年的所得稅費用為人民幣670萬元，主要是由於我們的遞延所得稅資產收益增加。

And net loss attributed to Quhuo Limited was RMB9.6 million as compared to RMB25 million in the first year of 2022.

趣活有限公司的淨虧損為人民幣 960 萬元，而 2022 年第一年的淨虧損為人民幣 2500 萬元。

Adjusted net loss was RMB1.8 million, as compared to adjusted net loss of RMB14.1 million in the first year of 2022.

調整後淨虧損為人民幣 180 萬元，而 2022 年第一年調整後淨虧損為人民幣 1,410 萬元。

And our adjusted EBITDA was -- is the earning of RMB11.1 million, as compared to adjusted EBITDA of earning RMB10.8 million in the first year of 2022.

我們調整後的 EBITDA 為人民幣 1110 萬元，而 2022 年第一年調整後的 EBITDA 為人民幣 1080 萬元。

In terms of the balance sheet, as of June 30, 2023, the company has cash, short-term investment, and restricted cash of RMB178.2 million and short-term debt of RMB95.7 million.

資產負債表方面，截至2023年6月30日，公司擁有現金、短期投資及限制性現金人民幣1.782億元，短期債務人民幣9,570萬元。

This concludes my prepared remarks. Thank you for your attention. We are now pleased to answer your questions. Operator, please go ahead.

我準備好的發言到此結束。感謝您的關注。我們現在很高興回答您的問題。接線員，請繼續。

(Operator Instructions) [Zei Yu], Tiger.

（操作員指示）[Zei Yu]，老虎。

Hi, this is Zei Yu from Tiger. I have a question. Quhuo always focused on localized community-like services. Is there some relation between the newly launched vehicle export solution and the company's original business? And can it establish a complementary relationship with the existing business? That's my question.

大家好，我是 Tiger 的澤宇。我有個問題。趣活始終專注於本地化的社區化服務。新推出的整車出口解決方案與公司原有業務是否存在關聯？能否與現有業務建立互補關係？這就是我的問題。

Thanks for the question. This is Leslie. I would like to explain the relationship between second-hand car export and what we are focusing on localized community service.

謝謝你的提問。這是萊斯利。我想解釋一下二手車出口和我們所關注的本地化社區服務之間的關係。

Firstly, our vehicle export solution has a very strong connection with our existing business. The vehicle export solution actually derives from our mobility sector as an asset management initiative. This portion of our business will leverage the vehicle information and the maintenance resources we have accumulated in the mobility business to provide vehicle rescue value management services for our mobility clients, thereby extending and expanding our offerings within the local community service sector.

首先，我們的車輛出口解決方案與我們現有的業務有非常緊密的聯繫。車輛出口解決方案實際上源自我們的移動部門作為資產管理計劃。該部分業務將​​利用我們在出行業務中積累的車輛信息和維修資源，為出行客戶提供車輛救援價值管理服務，從而延伸和擴展我們在當地社區服務領域的服務。

On the other hand, as we progress with the vehicle export business, it allows us to expand into the global market, broadening our service reach to more diverse regions and opening up a greater market potential.

另一方面，隨著我們汽車出口業務的發展，我們可以向全球市場拓展，將服務範圍擴大到更多元化的地區，開拓更大的市場潛力。

So in summary, while the vehicle export solutions operates in different domains, it is a derivative and extension of our core business. Through the organic fusion of technology, data, and operational experience, it forms a beneficial relationship with our original business, offering fresh moments and opportunities for our company's growth. Thank you.

綜上所述，汽車出口解決方案雖然涉及不同領域，但它是我們核心業務的衍生和延伸。通過技術、數據和運營經驗的有機融合，與我們原有的業務形成良性關係，為我們公司的成長提供新鮮的時刻和機會。謝謝。

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

（操作員說明） 目前沒有其他問題。現在我將把電話轉交給管理層以供結束語。

Okay. Thank you everyone for listening. Thank you. That's all.

好的。感謝大家的聆聽。謝謝。就這樣。

Thank you.

謝謝。

That concludes today's conference. Thank you for attending, and you may now disconnect.

今天的會議到此結束。感謝您參加，您現在可以斷開連接。