BEIJING - Quhuo Limited (NASDAQ: QH), a prominent gig economy platform in China, has disclosed its unaudited financial results for the second half and the full year ended December 31, 2023. The company has seen a significant surge in revenues from its vehicle export solutions, which were initiated in May 2023.
For the second half of 2023, Quhuo's vehicle export solutions brought in revenues of RMB 142.5 million (US$20.1 million), which accounted for 81.3% of the revenue from mobility solution services. This contributed to an impressive 239.6% year-over-year increase in the latter's revenue. The full-year figures were equally strong, with vehicle export revenues reaching RMB 154.5 million (US$21.8 million), representing 66.1% of mobility solution services revenue and marking a year-over-year increase of 116.4%.
Quhuo reported a net income of RMB 11.7 million (US$1.6 million) for the latter half of the year, up 15.0% from the previous year. For the entire year, the net income was RMB 6.0 million (US$0.8 million), a significant improvement from a net loss of RMB 16.4 million in 2022. The company also reported a decrease in general and administrative expenses, which dropped by 9.9% year-over-year to RMB 102.7 million (US$14.5 million) for the second half and by 13.7% to RMB 184.3 million (US$26.0 million) for the full year.
The company's Chairman and CEO, Mr. Leslie Yu, expressed satisfaction with the fiscal year's strong financial and operational results, noting four consecutive half-years of positive EBITDA. He highlighted the strategic expansion into vehicle export solutions and SaaS+ services as part of the company's growth curve and profitability enhancement strategy initiated in 2021.
Quhuo has shipped over 1,700 units of vehicles under its vehicle export solutions in the second half of the year and signed service contracts for over 3,000 units, with more than 1,900 units shipped throughout the year. The company aims to leverage China's manufacturing capabilities and its expertise in internet operation and last-mile delivery to expand its global footprint and capture emerging opportunities.
This financial report is based on a press release statement and does not include any promotional content. The company will hold a conference call on Wednesday to discuss these financial results in further detail.
InvestingPro Insights
Amidst the backdrop of Quhuo Limited's (NASDAQ: QH) notable financial results, a deeper analysis using InvestingPro's real-time data and metrics offers additional insights into the company's current market standing. As of the latest update, Quhuo's market capitalization stands at a modest $2.99 million USD, reflecting the scale of the business in comparison to its industry peers. Despite the challenges faced in the market, the company boasts a strong balance sheet with more cash than debt, an InvestingPro Tip that suggests financial resilience and flexibility.
The stock's Price / Book multiple as of the last twelve months leading up to Q2 2023 is attractively low at 0.04, hinting at a potential undervaluation of the company's assets compared to its market price. This is complemented by a low earnings multiple, with a P/E Ratio of 11.11, which could indicate that the stock is currently trading at a price that could be appealing to value investors.
However, it's important to note that the stock has experienced significant price depreciation, with a 1 Year Price Total Return as of the most recent data point showing a decline of -61.38%. This is consistent with an InvestingPro Tip that the stock has fared poorly over the last month, which aligns with the broader trend observed over the past year.
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