Quhuo Ltd (QH) 2024 Q4 法說會逐字稿

Good day and welcome to the Quhuo second half of 2024 and fiscal year earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. (Operator Instructions)

大家好，歡迎參加趣活2024年下半年及財年收益電話會議。所有參與者將處於只聽模式。如果您需要協助，請按星號鍵然後按 0 向會議專家發出信號。今天的演講結束後，將有機會提問。（操作員指示）

Please note this event is being recorded. I would now like to turn the conference over to Qishu Wang, Investor relations, please go ahead.

請注意，此事件正在被記錄。現在我想將會議交給投資人關係部的王啟姝，請繼續。

Thank you, operators. Hello everyone. Welcome to Chiu's 2024 full year and second half earnings conference call. The company's results were released earlier today and are available on our website. On call today are Leslie Yu, Chairman and CEO and CFO Barry Ba.

謝謝各位接線生。大家好。歡迎參加 Chiu 的 2024 年全年和下半年收益電話會議。該公司的業績已於今天早些時候公佈，並可在我們的網站上查閱。今天值班的是董事長兼執行長 Leslie Yu 和財務長 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 our questions in the Q&A session that follows.

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。他們將在隨後的問答環節中回答我們的問題。

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the state provisions of the Private Securities Litigation Reform Act of 1,995. Such statements are based on management current expectations and current market and operating conditions.

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》的州規定做出的前瞻性陳述。此類聲明是基於管理層當前的預期以及當前的市場和營運狀況。

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 result, performance or achievements to differ materially from those in the forward-looking statements.

並與涉及已知或未知風險、不確定性和其他因素的事件有關，這些因素難以預測，其中許多超出公司的控制範圍，可能導致公司的實際結果、業績或成就與前瞻性陳述中的結果、業績或成就存在重大差異。

Further information regarding the or other risks, uncertainties and factors is excluded in the company's filings with the US 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 under the loan. With that, I will now turn the call over to our Chairman and CEO Mr. Leslie Yu please.

有關或其他風險、不確定性和因素的更多資​​訊未包含在公司向美國證券交易委員會提交的文件中。除貸款要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。現在，我將把電話轉給我們的董事長兼執行長 Leslie Yu 先生。

Thank you and thank you all for joining our 2024 earnings conference call 2024 is the pivot year for Quhuo as we embark on strategic transformation.

謝謝大家參加我們的 2024 年收益電話會議，2024 年是趣活開始策略轉型的關鍵一年。

In the face of a complex and ever-changing market environment, we have chosen to define growth through value sharing strategies, replacing zero-sum games with ecosystem empowerment and breaking business boundaries through model innovation.

面對複雜多變的市場環境，我們選擇以價值共享策略定義成長，以生態賦能取代零和博弈，以模式創新打破商業邊界。

Our goal is to achieve a path of corporate development that balances both commercial and social value. I will not share the company's performance and the strategic achievements over the past year, focusing on the three things of deepening, empowering, and innovation and a look ahead to the future vision of Quhuo.

我們的目標是實現一條商業價值與社會價值兼顧的企業發展道路。我就不分享公司過去一年的業績和策略成果了，主要講一下深化、賦能、創新三件事，以及對趣活未來的願景的展望。

Firstly, the strategy of living is targeted at strengthening the business foundation and unlocking profit potential. In 2024, Quhuo achieved the revenue of RMB 3,046.9 million. We an adjusted EBITDA of RMB 9 million. The company demonstrated excellent performance with positive EBITDA for three consecutive fiscal years. Adjusted the net income reached RMB1.6 million.

一是生存策略，強化經營基礎，釋放獲利潛力。2024年，趣活實現營收30.469億元。我們的調整後EBITDA為人民幣900萬元。公司連續三個財年EBITDA為正，業績表現優異。調整後淨利達160萬元。

In terms of cost control, general and administrative expenses decreased by 19% year on year, reflecting our ongoing efforts to improve operational efficiency. R&D expenses it decreased by 13% year on year with the IT team achieved the continuous cost reduction and efficiency improvement through AI technology, optimizing labor improve while ensuring the iteration and upgrade of technology. This effort injected more resources into high potential business, driving the health cycle of our business ecosystem.

成本控制方面，一般及行政開支年減19%，反映出我們持續努力提升營運效率。研發費用年減13%，IT團隊透過AI技術實現持續降本增效，在確保技術迭代升級的同時優化人工改進。這項努力為高潛力業務注入了更多資源，推動了我們業務生態系統的健康循環。

Since the second half of 2024, we have been focusing on deeply cultivating high quality business and structurally enhancing profitability. In the second half of 2024, growth profit for bike maintenance and risings grow by 15% and 216% year on year, respectively.

自2024年下半年以來，我們致力於深耕優質業務，結構性提升獲利能力。2024年下半年，自行車維修及保養業務成長利潤分別較去年同期成長15%及216%。

The use of vehicles export business has leveraged AI technology in the vehicle inspection process, achieving an intelligent upgrade of the inspection workflow. This has significantly improved individual operational efficiency, driving the growth profit margin of the business from 1.8% to 6.2%, with the gross profit increasing by 11.5% year on year.

在車輛出口業務中，AI技術已應用於車輛檢驗環節，實現了檢驗流程的智慧升級。顯著提升了個體經營效率，帶動業務成長利潤率由1.8%提升至6.2%，毛利年增11.5%。

Our housekeeping and accommodation services restructured the operational system through our self-development booking platform, achieving an increasing profit margin from 26% to 36% throughout the year, continuously strengthen the profit contribution of the business line.

家事及住宿業務透過自主研發的預訂平台重構營運體系，全年實現利潤率由26%提升至36%，持續增強業務線的獲利貢獻。

In a complex and ever-changing market environment, we firmly believe that maintaining business quality amidst uncertainty will generate momentum for long-term development.

在複雜多變的市場環境中，我們堅信，在不確定性中維持業務品質將為長期發展累積動力。

Secondly, the strategy of empowering. The strategy of empowering is targeted at stimulating collaborative dynamics and driving ecosystem synergy. Since the launch of our used vehicle export business represented by Quhuo International in May 2023, it has quickly become a new growth engine for Quhuo in the past year and a half.

第二，賦能策略。賦能策略旨在激發協作動力，推動生態系統協同效應。自2023年5月趣活國際代理的二手車出口業務上線以來，一年半來迅速成為趣活新的成長引擎。

By the end of 2024, Quhuo International had exported over 3,500 cars overseas to the Middle East, Eastern Europe, and Western Asia, and the established and recognized the use of eco certification and the service systems. Leveraging our experience and the technological accumulation in the localized license market.

截至2024年底，趣活國際已向中東、東歐、西亞等地區出口汽車超過3,500輛，並建立並認可了生態認證的使用與服務系統。利用我們在在地化授權市場的經驗和技術累積。

Our use the vehicle export business follows a technology plus resources out of the model by empowering overseas dealers with riceing operational capabilities. And the building overseas operational centers and the vehicle showrooms. We create a win-win ecosystem from vehicle procurement to local sales and operations. For example, in September 2024, we reached a strategic cooperation with Auto and electric vehicle dealer in Azerbaijan. The mobility platform both to jointly established an Azerbaijan ride trading operation center.

我們的整車出口業務採用技術加資源的模式，為海外經銷商賦能，提升營運能力。並興建海外營運中心和汽車展示廳。我們打造從車輛採購到本地銷售和營運的共贏生態系統。例如，2024年9月，我們與阿塞拜疆的汽車和電動車經銷商達成策略合作。此旅遊平台雙方將共同建立阿塞拜疆旅遊交易營運中心。

In addition to providing Chinese high-cost performance vehicle resources, we also included the local ride being operations in Azerbaija collaboratively.

除了提供中國高性價比車輛資源外，我們還合作在阿塞拜疆開展本地營運。

On one hand, Quhuo International helps local partners achieve real-time route optimization and the data analysis via online platform, ensuring quick response to all demands while you monitoring vehicle usage, including maintenance cycles and the fuel consumption to ensure long term operational performance.

一方面，趣活國際透過線上平台幫助當地合作夥伴實現即時路線優化和數據分析，確保快速回應所有需求，同時監控車輛使用情況，包括維護週期和油耗，以確保長期營運效能。

On the other hand, Quhuo International export is mature ride heading market management experience. Providing offline training and hands-on guidance for local partnersop operation staff, including precise matching of drivers and other demands, using AI data analysis to predict high demand hotspot and achieve dynamic dispatching during actual operations.

另一方面，趣貨國際出口有著成熟的順風車市場管理經驗。為當地合作夥伴營運人員提供離線培訓和手把手指導，包括精準匹配司機等需求，利用AI數據分析預測需求熱點，在實際營運中實現動態調度。

Through the comprehensive technologies plus resources export solution, local dealers in Azerbaijan can quickly match vehicles to ride-hailing companies. Enabling sea integration from vehicles skills to map application. This has increased the sale speed of inventory vehicles and it transformed the pure sales margin gas into vehicle leasing operational revenue.

透過全面的技術加資源輸出解決方案，阿塞拜疆當地經銷商可以快速地將車輛與叫車公司配對。實現從車輛技術到地圖應用的海上一體化。這提高了庫存車輛的銷售速度，並將純銷售利潤轉化為汽車租賃營運收入。

The success of technology resources solution in Azerbaijan islands, not only to our partner bought auto to place three additional orders but also demonstrate the feasibility of global replication of local solutions and highlighted the immense potential to lead the supply chain partners in building ecological co-operation.

技術資源解決方案在阿塞拜疆群島的成功，不僅讓合作夥伴購買後追加了三個訂單，也證明了本地解決方案全球複製的可行性，彰顯了引領供應鏈夥伴構建生態合作的巨大潛力。

In the future, we will replicate that better model in more overseas markets throughout the techno technology and management empowerment. We will establish deep collaborative win-win relationships with upstream and downstream partners globally, building a global automotive export and operational ecosystem.

未來，我們將透過Techno技術和管理賦能，將更好的模式複製到更多的海外市場。我們將與全球上下游合作夥伴建立深度合作的共贏關係，建構全球汽車出口和營運生態系統。

Through this kind of cooperation, we have not only enhanced the operational efficiency of the supply chain, but also provided the sustainable solutions for the international market, laying a solid foundation for future global business expansion.

透過這樣的合作，我們不僅提升了供應鏈的營運效率，也為國際市場提供了永續的解決方案，為未來全球業務拓展奠定了堅實的基礎。

The third part, the strategy of innovation. The strategy of innovation is targeted at activating the existing networks and opening new growth frontiers. Innovation has always been the core driving force of development.

第三部分，創新策略。創新策略旨在激活現有網路並開闢新的成長前沿。創新始終是發展的核心動力。

How to leverage innovation to expand the value of existing resources and break the revenue boundaries of kind of business is an ongoing change for enterprise growth. Through multidimensional exploration in product plus services, platform plus ecosystem and the techno technology plus scenarios, Quhuo reached strategic cooperation with the leading domestic food group, New World.

如何利用創新來擴大現有資源的價值，打破業務類型的收益邊界，是企業成長不斷變化的方向。趣活透過產品加服務、平台加生態、科技加場景等多維度探索，與國內領先的食品集團新世界達成策略合作。

Laing was on demand delivery network covering nearly 100 cities across China. We jointly build a distribution system for beef products, realizing the value-added value of the infrastructure network for delivery services, marking the transformation from service provider to supply chain enabler.

萊茵按需配送網路覆蓋中國近100個城市。共同打造牛肉產品配送體系，實現配送服務基礎設施網路的增值，實現由服務提供者向供應鏈賦能者的轉型。

In this partnership, we will combine new world deep expertise in the beef supply chain with cheaper network advantages in all demand delivery jointly promoting the implementation of the on-demand production real time fulfillment model in the restaurant beef supply chain.

在此次合作中，我們將新世界在牛肉供應鏈方面的深厚專業知識與全需求配送方面更便宜的網路優勢相結合，共同推動餐廳牛肉供應鏈中按需生產即時履行模式的實施。

Specifically, after the merchants pay and pay for the orders, new world will prepare the beef according to demand, complete the cutting, packaging and cold chain processing and use Quhuo on demand delivery network to quickly deliver fresh beef to restaurants.

具體來說，在商家支付訂單後，新世界將根據需求準備牛肉，完成分割、包裝和冷鏈加工，並利用趣活按需配送網絡將新鮮牛肉快速送達餐廳。

We expect this model to significantly reduce intermediate storage processes, ensuring the freshness while reducing merchants inventory pressure and enhancing overall supply chain efficiency.

我們預期此模式將大幅減少中間倉儲環節，在確保新鮮度的同時，減輕商家庫存壓力，提升整體供應鏈效率。

Additionally, through our proprietary technology platform, we have optimized delivery routes to achieve precise matching of delivery capacity, enabling newer beef products to reach and customers within hours after slaughter.

此外，透過我們專有的技術平台，我們優化了配送路線，實現了配送能力的精準匹配，使更新的牛肉產品能夠在屠宰後數小時內到達客戶手中。

Following successful pilot run, this model will be gradually scaled and contribute significant revenue in the future. It marks a key upgrade of our own demand delivery business from basic fulfillment services to supply chain empowerment and it's becoming a new growth driver for the company.

隨著試點成功，該模式將逐步擴大規模，並在未來帶來可觀的收入。這標誌著我們自身需求交付業務從基礎履約服務向供應鏈賦能的重大升級，並且正在成為公司新的成長動力。

In the future, Quhuo will further explore and refine this new catering model based on its infrastructure and site network is on demand. The partnership with New World is just a starting point and this model is expected to be extended to other catering sectors with high requirements for ingredient preservation. Providing flexible and efficient supply chain services from more food suppliers and the restaurant business. While pursuing commercial value, we always keep in mind that the company's social responsibility.

未來，趣活將根據自身基礎設施和站點網路的需求，進一步探索並完善此新型餐飲模式。這次與新世界的合作只是一個開始，預計這個模式將推廣至其他對食材保存要求較高的餐飲領域。為更多的食品供應商和餐飲企業提供靈活、有效率的供應鏈服務。在追求商業價值的同時，我們時時刻刻牢記公司的社會責任。

As of 2024, Quhuo's platform has provided flexible employment opportunities for over 830,000 workers from delivery riders to BNB housekeepers. We not only provide a job but also create a city net for them through commercial insurance and the vocational training.

截至 2024 年，趣活平台已為超過 83 萬名從業人員提供了靈活的就業機會，從送貨騎士到 BNB 管家。我們不但提供就業，也透過商業保險、職業培訓等為他們建構城市網路。

At the same time, our business innovations are creating long-term social value. The new energy vehicles exported overseas reduce carbon emissions by tens of thousands of tons annually. And the fresh beef direct supply chain model with new world reduces ingredient wastage for restaurants.

同時，我們的業務創新正在創造長期的社會價值。出口海外的新能源汽車每年可減少數萬噸碳排放。而新世界的鮮牛肉直供模式，也減少了餐廳的食材浪費。

In 2024, Quhuo's strategy was deeply integrated into stabilizing cash flow business as a foundation and expanding business through innovation. Driving the company's continuous development with first commercial success and social value.

2024年，趣活策略深度融入穩現金流業務根本、創新拓展業務。以首先的商業成功和社會價值驅動公司不斷發展。

We will continue to optimize operating models and the resources allocation, see key market opportunities and create more social value while generating business value. That concludes my remarks.

我們將持續優化營運模式和資源配置，掌握重點市場機會，在創造商業價值的同時創造更多社會價值。我的發言到此結束。

Next, I will handle the call over to our COO who will provide a detailed overview of our financial performance. Thank you.

接下來，我將與我們的營運長通話，他將詳細概述我們的財務表現。謝謝。

Thanks, Leslie.

謝謝，萊斯利。

Hello, everyone. This is Barry. I'm the CFO of Quhuo Group. Welcome to Quhuo's second half year of 2024 conference call. Please be reminded all the amount code here will be RMB unless stated otherwise.

大家好。這是巴里。我是趣活集團的CFO。歡迎參加趣活2024年下半年電話會議。請注意，除非另有說明，此處的所有金額代碼均為人民幣。

Before I delve into our full year result, I would like to draw our attention to something notable that occurred during the second half of 2024.

在深入探討我們的全年業績之前，我想提請大家注意 2024 年下半年發生的一些值得注意的事情。

Total revenue was RMB1,426.9 million compared with total revenue of RMB1,966.1 million in the second half of 2023, representing a decrease of 27.4% revenues from our demand for delivery solutions for RMB1,329.4 million compared with RMB 1,763.2 million in the second half of 2023.

總收入為人民幣 14.269 億元，而 2023 年下半年的總收入為人民幣 19.661 億元，來自我們對交付解決方案的需求的收入為人民幣 13.294 億元，而 2023 年下半年的總收入為人民幣 17.632 億元，下降了 27.4%。

Representing a decrease of 24.6%. The decrease was primarily because we optimized our business by disposing some of several underperforming service stations which led to a decrease in the revenue scale.

下降了24.6%。下降的主要原因是公司優化業務，處置了部分業績不佳的加油站，導致收入規模減少。

Revenue from mobility service solutions consisting of share back maintenance, hiring, vehicle export solutions, and the freight service solutions for RMB 74.7 million compared with RMB 174.3 million in the second half of 2023. Representing a decrease of 57.4%. The decrease was primarily due to a decrease in the units of vehicles so in our vehicle export solution business.

行動服務解決方案收入（包括回購維護、租賃、車輛出口解決方案和貨運服務解決方案）為人民幣 7,470 萬元，而 2023 年下半年為 1.743 億元。下降了57.4%。下降的主要原因是車輛數量減少，因此我們的汽車出口解決方案業務也下滑。

Revenues from housekeeping and accommodation solutions and other services from RMB22.9 million compared with RMB27.5 million in the second half of 2023. Premier due to the decreasing in housekeeping service for hotels as a result of our shift of focus to other business model.

家事及住宿解決方案及其他服務的收入為人民幣 2,290 萬元，而 2023 年下半年為 2,750 萬元。由於我們將重點轉向其他業務模式，導致飯店客房清潔服務減少，因此我們決定將其列為首要業務。

Cost of revenue was RMB1,378 million, representing a year over year decrease of 26.2%, primarily in line with the decrease in our total revenue. GAE expenses for RMB77.8 million, representing a significant decrease of 24.2% from RMB102.7 million in the second half of 2023.

營業成本為人民幣13.78億元，年減26.2%，主要與我們總收入的下降一致。GAE費用為人民幣7,780萬元，較2023年下半年的人民幣1.027億元大幅下降24.2%。

The decrease were primarily driven by first a decline in the professional service fee from RMB 44.5 million in the second half of 2023 to RMB22.6 million in the second half of 2024. And the second reduction of welfare and the business development expense and office expense from RMB 21.4 million in the second half of 2023 to RMB16.1 million in the second half of 2024.

下降的主要原因首先是專業服務費從 2023 年下半年的人民幣 4,450 萬元下降到 2024 年下半年的人民幣 2,260 萬元。第二次減少福利及業務發展費用及辦公費用，從2023年下半年的2,140萬元減少至2024年下半年的1,610萬元。

These savings were largely the result of our effective expense control through engagement of more cost-effective service providers elimination of unnecessary costs and optimization of our employee role and responsibilities.

這些節省很大程度上是我們透過聘用更具成本效益的服務提供者、消除不必要的成本以及優化員工的角色和職責而有效控制費用的結果。

R&D expense remain relatively stable at RMB5.8 million in the second half of 2024 and RMB 5.7 million in the in the second half of 2023. Our other income net was RMB0.4 million in the second half of 2024 and RMB10.7 million in the second half of 2023, primarily due to the disposal of investment in the mutual fund.

研發費用維持相對穩定，2024年下半年為人民幣580萬元，2023年下半年為人民幣570萬元。2024 年下半年我們的其他收入淨額為人民幣 40 萬元，2023 年下半年為人民幣 1,070 萬元，主要由於處置了共同基金投資。

Income tax benefit for RMB15.7 million as compared to income tax expenses of RMB1.5 million in the second half of 2023, primarily due to the reversal of unrecognized tax benefits, recognized period of years that have been passed the retroactive period.

所得稅收益為人民幣 1,570 萬元，而 2023 年下半年的所得稅費用為人民幣 150 萬元，主要由於已回溯期的年度中已確認的未確認稅收收益的轉回。

Net income attributable to Quhuo Limited was RMB 48.8.1 billion compared with net income attributable to Quhuo Limited of RMB11.7 million in the second half of 2023. Adjusted EBITDA was RMB43.8 million compared with adjust EBITDA of RMB24.1 million in the second half of 2023. Adjust the net income was RMB4.8 million compared with adjusted net income of RMB7.4 million in the second half of 2023.

歸屬於趣活網的淨利為人民幣488.1億元，而2023年下半年歸屬於趣活網的淨利為人民幣1,170萬元。調整後 EBITDA 為人民幣 4,380 萬元，而 2023 年下半年調整後 EBITDA 為人民幣 2,410 萬元。調整後淨收入為人民幣480萬元，而2023年下半年調整後淨收入為人民幣740萬元。

Now let's move to full, move on to the full year of 2024.

現在讓我們進入完整的 2024 年全年。

During the fiscal year of 2024, total revenue for RMB3,046.8 million, a decrease of 17.7% compared with total revenue of RMB3,702.4 million in 2023. Revenue from on-demand for delivery solutions for RMB2,828.5 million compared with RMB 3,412.8 million in 2023, representing a decrease of 17.1%. The decrease was primarily due to the optimization of our business by disposing of several underperforming. Service station which led to a decrease in the revenue scale. Revenue from mobility service solutions RMB175.1 million. Compared with RMB233.8 million in 2023, representing a decrease of 25.1%, the decrease was primarily due to the reduction in vehicles sold in our vehicle export solution business.

2024財年總營收為人民幣30.468億元，較2023年總營收人民幣37.024億元下降17.7%。按需配送解決方案收入為 28.285 億元，較 2023 年的 34.128 億元下降 17.1%。下降的主要原因是我們透過處置一些表現不佳的業務來優化業務。從而導致加油站收入規模的下降。出行服務解決方案收入1.751億元。與2023年的人民幣2.338億元相比，下降25.1%，主要由於我們的汽車出口解決方案業務銷售的汽車減少。

Revenues from housekeeping and accommodation solutions and other services for RMB 43.2 million compared with RMB55.7 million in 2023, primly due to the decrease of housekeeping service for the hotels as a result of our shift of focus to other business models.

客房清潔及住宿解決方案及其他服務收入為人民幣 4,320 萬元，而 2023 年為人民幣 5,570 萬元，主要原因是我們將重點轉向其他業務模式，導致酒店客房清潔服務減少。

Cost of revenue for RMB2,973.2 million representing a year on year decrease of 15.9% generally in line with the decrease of our total revenue. GMA extends for RMB148.6 million in 2024, representing a decrease of [RMB19.4], 184.3 million in 2023. This reduction was due to one decrease. The first, a decrease in professional service fee from RMB 66.7 million in 2023 to RMB37.2 million in 2024.

營業成本為人民幣29.732億元，年減15.9%，與我們總收入的降幅基本一致。2024 年 GMA 延長至 1.486 億元，較 2023 年減少 [人民幣 194 億元] 至 1.843 億元。此次減少是由於一項減少所致。第一，專業服務費由2023年的6,670萬元減少至2024年的3,720萬元。

And the second, a decrease in welfare and business development expense and office expense from RMB 38.6 million in 2023 to RMB 28.4 million in 2024. These savings reflect our expense control measures, including more cost-effective service providers, eliminating unnecessary costs and optimizing Employing roles and the responsibilities. R&D expense for RMB10.7 million in 2024, representing a decrease of RMB13.7RMB from RMB12.4 million in 2023.

第二，福利及業務發展費用和辦公室費用從2023年的3,860萬元減少到2024年的2,840萬元。這些節省反映了我們的費用控制措施，包括更具成本效益的服務提供者、消除不必要的成本以及優化僱用角色和職責。2024年研發費用為人民幣1,070萬元，較2023年的人民幣1,240萬元減少人民幣1,370萬元。

Permanently due to a lower average compensation level. For our research and development personnel, resulting from the restructuring of our R&D Team. Other expense net was RMB2.6 million in 2024 as compared to other income net of RMB16.7 million in 2023, primarily due to the fluctuation in the fair value of our investment in the mutual fund in 2023.

永久性地由於較低的平均薪酬水平。對於我們的研發人員來說，這是由於我們的研發團隊進行了重組。2024 年其他費用淨額為人民幣 260 萬元，而 2023 年其他收入淨額為人民幣 1,670 萬元，這主要是由於 2023 年我們對共同基金投資的公允價值波動所致。

Income tax benefit was RMB 18.3 million in 2024 as compared to RMB0.9 million in 2023, primarily due to the reversal of unrecognized tax benefit, recognized in previous years that has passed the retroactive period. Net income attributable to Quhuo Limited was RMB1.6 million in 2024 as compared to RMB 6 million in 2023. Adjust EBITDA was RMB 9.1 million in 2024 as compared to adjusting EBITDA of RMB35.2 million in 2023. Just the net income was RMB1.9 million in 2024 as compared to RMB 5.5 million in 2023. In terms of balance sheet as December 31, 2024, the company has cash equivalent and the restricted cash of RMB65.1 million and the short-term debt of RMB112.8 million. This concludes my prepared remarks.

2024 年所得稅收益為人民幣 1,830 萬元，而 2023 年為人民幣 90 萬元，主要由於已回溯期的以前年度確認的未確認稅收收益被轉回。2024 年歸屬於趣活有限公司的淨利為人民幣 160 萬元，而 2023 年為人民幣 600 萬元。2024 年調整後 EBITDA 為人民幣 910 萬元，而 2023 年調整後 EBITDA 為人民幣 3,520 萬元。光是淨收入，2024 年就為 190 萬元人民幣，而 2023 年則為 550 萬元。截至2024年12月31日的資產負債表，本公司擁有現金等價物及受限現金6,510萬元人民幣，短期債務1.128億元人民幣。我的準備好的發言到此結束。

Thank you for your attention. We are now pleased to take your questions.

感謝您的關注。我們現在很高興回答您的問題。

Operator, please go ahead.

接線員，請繼續。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

The first question comes from Ling Jinn with Tiger. Please go ahead.

第一個問題來自 Tiger 的 Ling Jinn。請繼續。

Hi, thanks for your introduction. And this My question is, what's the current progress of the cooperation with New World and what are the company's expectations. Thank you.

你好，謝謝你的介紹。我的問題是，目前與新世界的合作進展如何，公司有何期待。謝謝。

Okay, I'll answer the question. This is Barry.

好的，我來回答這個問題。這是巴里。

Our partnership with New World, a leading, is a leading agriculture company in China. And marks was transform transformation from a service to a supply chain enabler with Quhuo's national-wide on-demand delivery network, the efficiency of the be beef delivery to merchandise has significant has been significantly improved.

我們與新世界公司建立了合作夥伴關係，新世界公司是中國領先的農業公司。而標誌著趣活從服務商向供應鏈賦能商的轉型，憑藉趣活覆蓋全國的按需配送網絡，商品配送的效率得到了顯著提升。

During the pilot tasing phase, several merchants have already experienced the efficiency gained by the new model. And at the same time, both parties will jointly established a joint venture to incubate restaurant brand, new restaurant brands. Now the brand incubation, still rebranding, and the franchising are already inact. By 2025, the corporation is expected to contribute significant revenues, becoming a new goods driver for the company.

在試點階段，一些商家已經感受到了新模式帶來的效率提升。同時，雙方將共同成立合資公司，孵化餐飲品牌、新餐飲品牌。目前，品牌孵化、品牌重塑、特許經營均已啟動。到2025年，該公司預計將貢獻可觀的收入，成為公司新的商品驅動力。

In the future, based on the infrastructure and the station networks, station network resources in the on-demand delivery sector, Quhuo will further explore, improve our new restaurant supply chain model. The collaboration with New World is just at the beginning and the weeks that to expand this model to other food service providers that require high standard for food, preservation, providing flexible and efficient supply chain service to more merchants. So that's my answer to the question.

未來，趣活將依賴現有的基礎設施和站點網路資源，在外送領域進一步探索、完善新的餐廳供應鏈模式。這次與新世界的合作才剛開始，未來幾週將把這種模式拓展到其他對食材、保鮮等要求較高的餐飲服務商，為更多商家提供靈活高效的供應鏈服務。這就是我對這個問題的回答。

Okay, I get it. Thank you.

好的，我明白了。謝謝。

This concludes our question-and-answer session. The conference is now concluded.

我們的問答環節到此結束。會議現已結束。

Thank you for attending today's presentation. You may now disconnect.

感謝您參加今天的演講。您現在可以斷開連線。