6-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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Form 6-K

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REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2023

Commission File Number 001- 39354

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Quhuo Limited

(Exact name of registrant as specified in its charter)

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3rd Floor, Block A, Tonghui Building

No. 1132 Huihe South Street, Chaoyang District

Beijing, People’s Republic of China

(+86-10) 5923 6208

(Address of principal executive office)

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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Quhuo Limited
		​
Date:	September 5, 2023	​	By:	/s/ Leslie Yu
​	​	​	​	Name:	Leslie Yu
​		​	​	Title:	Chairman and Chief Executive Officer

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EXHIBIT INDEX

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Exhibit Number	****	Description
99.1	​	Unaudited Condensed Consolidated Interim Financial Statements
99.2	​	Management’s Discussion and Analysis of Financial Condition and Results of Operations
99.3	​	Earnings Release
101.INS	​	Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	​	Inline XBRL Taxonomy Extension Schema
101.CAL	​	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	​	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	​	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	​	Inline XBRL Taxonomy Extension Presentation Linkbase
104	​	Cover Page Interactive Data File (embedded within the Inline IXBRL document)

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​ Exhibit 99.1

QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

​	​	​	​	​	​	​	​
​	​	​	As of December 31,	​	As of June 30,
​	Notes		2022		2023		2023
​	​	​	RMB	​	RMB	​	US$
ASSETS:
Current assets:
Cash	​		95,444		115,040		15,865
Restricted cash	​		5,579		150		21
Short-term investments	4		64,355		63,056		8,696
Accounts receivable, net	5		495,046		495,006		68,264
Prepayments and other current assets	​		54,921		60,864		8,394
Amounts due from related parties	13		3,876		1,430		197
Total current assets	​		719,221		735,546		101,437
Non-current assets:	​		​		​		​
Property and equipment, net	​		11,450		8,788		1,212
Right-of-use assets, net	​		5,562		7,719		1,064
Intangible assets, net	​		101,603		101,516		14,000
Goodwill	​		65,481		65,481		9,030
Deferred tax assets	​		12,000		20,466		2,822
Other non-current assets	7		140,300		146,236		20,167
Total non-current assets	​		336,396		350,206		48,295
Total assets	​		1,055,617		1,085,752		149,732
LIABILITIES AND SHAREHOLDERS’ EQUITY:	​		​		​		​
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB489,301 and RMB506,292 (US69,821) as of December 31, 2022 and June 30,2023, respectively):	​		​		​		​
Accounts payable	​		293,281		314,401		43,358
Accrued expenses and other current liabilities	8		125,949		100,755		13,895
Short-term debt	9		65,434		95,705		13,198
Short-term lease liabilities	​		3,276		4,422		610
Total current liabilities	​		487,940		515,283		71,061
Non-current liabilities (including non-current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB70,100 and RMB 71,174 (US9,815) as of December 31, 2022 and June 30,2023, respectively):			​		​		​
Long-term debt	9		1,303		1,583		218
Long-term lease liabilities	​		1,103		2,066		285
Deferred tax liabilities	​		814		924		127
Other non-current liabilities	​		66,880		66,601		9,185
Total non-current liabilities	​		70,100		71,174		9,815
Total liabilities	​		558,040		586,457		80,876
Commitments and contingencies	​				​		​

All values are in US Dollars.

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​ 1

​ QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

​	​	​	​	​	​	​	​	​
​	****	​	​	As of December 31,	​	As of June 30,
​		Notes		2022		2023		2023
​	​	​	​	RMB		RMB	​	US$
Shareholders’ equity:	​				​
Ordinary shares ((US$0.0001 par value; 300,000,000 Class A ordinary shares authorized, 55,379,583 and 55,379,583 shares issued, and 48,639,660 and 48,639,660 shares outstanding as of December 31, 2022 and June 30, 2023, respectively; 6,296,630 and 6,296,630 Class B ordinary shares authorized, issued and outstanding as of December 31, 2022 and June 30, 2023, respectively; 193,703,370 and 193,703,370 shares (undesignated) authorized, nil and nil shares (undesignated) issued and outstanding as of December 31, 2022 and June 30, 2023, respectively)	​	​		43	​	43		6
Additional paid-in capital	​	​		1,885,637	​	1,889,490		260,573
Accumulated deficit	​	​		(1,379,864)	​	(1,389,512)		(191,622)
Accumulated other comprehensive loss	​	​		(4,654)	​	(1,099)		(152)
Total Quhuo Limited shareholders’ equity	​	​		501,162	​	498,922		68,805
Non-controlling interests	​	​		(3,585)	​	373		51
Total shareholders’ equity	​	​		497,577	​	499,295		68,856
Total liabilities and shareholders’ equity	​	​		1,055,617	​	1,085,752		149,732

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The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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​ 2

​ QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​	​	​	​	​	​	​	​	​
​	​	​	​	Six Months Ended June 30,
​	****	Notes		2022		2023		2023
​	​	​	​	RMB	​	RMB	​	US$
Revenues		3		1,863,795		1,736,317		239,449
Cost of revenues	​	​		(1,769,867)		(1,669,515)		(230,237)
General and administrative	​	​	****	(99,525)		(81,611)		(11,255)
Research and development	​	​		(7,161)		(6,645)		(916)
Gain on disposal of assets, net	​	​		4,732		8,916		1,230
Operating loss	​	​	****	(8,026)	****	(12,538)	****	(1,729)
Interest income	​	​		191		742		102
Interest expense	​	​		(3,786)		(2,323)		(320)
Other (loss)/income, net	​	​	****	(8,282)		6,034		832
Loss before income tax	​	​	****	(19,903)	****	(8,085)	****	(1,115)
Income tax (expense)/benefit	​	10		(6,683)		2,395		330
Net loss	​	​	****	(26,586)	****	(5,690)	****	(785)
Net loss/(income) attributable to non-controlling interests	​	​		1,633		(3,958)		(546)
Net loss attributable to ordinary shareholders of Quhuo Limited	​	​	****	(24,953)	****	(9,648)	****	(1,331)
Loss per share:	​	11	****	**** ​	****	​	****	​
Basic		​		(0.53)		(0.17)		(0.02)
Diluted	​	​	****	(0.53)		(0.17)		(0.02)
Shares used in loss per share computation:	​	11	****	**** ​	****	​	****	​
Basic	​	​	****	46,841,258		56,441,811		56,441,811
Diluted		​		46,841,258		56,441,811		56,441,811
Other comprehensive loss:	​	​		​		​		​
Foreign currency translation adjustment	​	​		5,295		3,555		490
Comprehensive loss	****	​	​	(21,291)	****	(2,135)	****	(295)
Comprehensive loss/(income) attributable to non-controlling interests	​	​		1,633		(3,958)		(546)
Comprehensive loss attributable to ordinary shareholders of Quhuo Limited	​	​	****	(19,658)	****	(6,093)	****	(841)

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The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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​ 3

​ QUHUO LIMITED

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Number of	****	​	****	​	****	​	****	Accumulated	****	​	****	​	****	​
​	outstanding	​	​	​	Additional	​	​	​	other	​	Quhuo Limited	​	​	​	Total
​	ordinary	​	Ordinary	​	paid-in	​	Accumulated	​	comprehensive	​	shareholders’	​	Non-controlling	​	shareholders’
​	shares	​	shares	​	capital	​	deficit	​	loss *	​	(deficit)/equity	​	interests	​	(deficit)/equity
​	​	​	RMB	​	RMB	​	RMB	​	RMB	​	RMB	​	RMB	​	RMB
Balance as of December 31, 2021	46,674,275	****	37	****	1,855,897	****	(1,366,734)	****	(18,259)	****	470,941	****	12,494	****	483,435
Net loss	—		—		—		(13,130)		—		(13,130)		(3,284)		(16,414)
Other comprehensive loss	—		—		—		—		13,605		13,605		—		13,605
Acquisition of non-controlling interests	9,000,000		6		10,999		—		—		11,005		(12,795)		(1,790)
Exercise of employee share options	495,042		—		165		—		—		165		—		165
Cancellation of exercised options	(1,233,027)		—		(1,186)		—		—		(1,186)		—		(1,186)
Share-based compensation	—		—		19,762		—		—		19,762		—		19,762
Balance as of December 31, 2022	54,936,290		43		1,885,637		(1,379,864)		(4,654)		501,162		(3,585)		497,577
Net loss	—		—		—		(9,648)		—		(9,648)		3,958		(5,690)
Other comprehensive income	—		—		—		—		3,555		3,555		—		3,555
Exercise of employee share options	—		—		—		—		—		—		—		—
Share-based compensation	—		—		3,853		—		—		3,853		—		3,853
Balance as of June 30, 2023	54,936,290	****	43	****	1,889,490	****	(1,389,512)	****	(1,099)	****	498,922	****	373	****	499,295
Balance as of June 30, 2023 in US	—		6		260,573		(191,622)		(152)		68,805		51		68,856

All values are in US Dollars.

*	Accumulative other comprehensive loss includes foreign currency translation adjustment and fair value adjustment of convertible loan for the year ended December 31, 2022 and for six months ended June 30, 2023.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

​ 4

​ QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​	​	​	​	​	​	​	​	​
​	​	​	​	Six Months Ended June 30,
​	****	Notes		2022		2023		2023
​	​	​	​	RMB	​	RMB	​	US$
Cash flows from operating activities
Net loss	​	​		(26,586)		(5,690)		(785)
Adjustments to reconcile net loss to net cash used in operating activities:	​	​		​		​		​
Depreciation	​	​		3,798		2,927		404
Amortization	​	​		10,663		10,128		1,397
Deferred income taxes	​	​		(2,987)		(8,356)		(1,152)
Share-based compensation		​		12,503		3,853		531
Gain on disposals of intangible assets		​		(14,927)		(8,916)		(1,230)
Changes in fair value of short-term investment	​	​		20,424		(1,339)		(185)
Others	​	​		(4,869)		(1,687)		(233)
Changes in operating assets and liabilities:	​	​		​		​		​
Amounts due to related parties	​	​		305		—		—
Accounts receivable	​	​		41,288		954		132
Prepayments and other current assets	​	​		1,048		(5,619)		(775)
Other non-current assets	​	​	​	10,854	​	(5,934)	​	(818)
Accounts payable	​	​		(39,384)		21,120		2,913
Accrued expenses and other current liabilities	​	​		(21,807)		(21,415)		(2,953)
Lease liabilities	​	​		(371)		(48)		(7)
Income taxes payable	​	​		7,385		(2,063)		(285)
Other non-current liabilities	​	​		(239)		(279)		(38)
Net cash used in operating activities	​	​	​	(2,902)	​	(22,364)	​	(3,084)
Cash flows from investing activities	​	​	​	​	​	​	​	​
Purchase of short-term investments	​	​		(1,054,720)		(60,000)		(8,274)
Proceeds from sales of short-term investments	​	​		1,110,157		62,500		8,619
Proceeds from refund of short-term investments	​	​		14,982		139		19
Acquisitions of businesses, net of cash acquired	​	​		(1,400)		—		—
Other investing activities	​	​		—		3,443		475
Purchase of property and equipment	​	​		(2,392)		(1,262)		(174)
Acquisitions of intangible assets	​	​		(4,509)		(18,470)		(2,547)
Proceeds from disposals of intangible assets	​	​	​	5,213	​	19,131	​	2,638
Loans to a related party		​		(9,097)		—		—
Net cash provided by investing activities	​	​	****	58,234		5,481		756

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​ 5

​ QUHUO LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​	​	​	​	​	​	​	​	​
​	****	​	​	Six Months Ended June 30,
​	****	Notes		2022		2023		2023
​	​	​	​	RMB	​	RMB	​	US$
Cash flows from financing activities	​
Proceeds from short-term debt	​	​		345,476		102,940		14,196
Repayments of short-term debt	​	​		(382,500)		(72,940)		(10,059)
Repayments of long-term debt	​	​		(4,420)		280		39
Net cash (used in)/provided by financing activities	​	​	****	(41,444)	****	30,280	****	4,176
Effect of exchange rate changes on cash and restricted cash	​	​		194		770		106
Net increase in cash and restricted cash	​	​		14,082		14,167		1,954
Cash and restricted cash, at the beginning of year	​	​		30,908		101,023		13,932
Cash and restricted cash, at the end of year	​	​	****	44,990	****	115,190	****	15,886
Supplemental disclosures of cash flow information:	​	​	****	**** ​	****	**** ​	****	**** ​
Interest paid	​	​		3,786		1,325		183
Income tax paid	​	​		4,175		2,774		383

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The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

​

​ 6

​ QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

**1.**Organization, Consolidation and Principal Activities

Quhuo Limited (the “Company”, and where appropriate, the term “Company” also refers to its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity as a whole) is an exempt company incorporated in the Cayman Islands with limited liability under the laws of the Cayman Islands on June 13, 2019. The Company, through its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity, are principally engaged in providing end-to-end operational solutions to on-demand consumer service businesses in industries, including food and grocery delivery, bike-sharing, ride-hailing, housekeeping in the People’s Republic of China (the “PRC”). Quhuo Limited, is a holding company with no substantive operations of its own.

The Company commenced operations through Beijing Quhuo Technology Co., Ltd. in 2012. In preparation of its initial public offering (“IPO”) in the United States, the Company underwent a series of restructuring in 2019 (the “Restructuring”) in order to establish the Company as the parent company and Beijing Quhuo Technology Co., Ltd. (“Beijing Quhuo” or the “VIE”) as the variable interest entity of the Company. On June 14, 2019, the Company incorporated a wholly-owned subsidiary, Quhuo Investment Limited (“Quhuo BVI”) in the British Virgin Islands (“BVI”). On June 17, 2019, the Company incorporated another wholly-owned subsidiary, Quhuo Technology Investment (Hong Kong) Limited (“Quhuo HK”) in Hong Kong. On July 31, 2019, the Company incorporated a wholly-owned subsidiary, Beijing Quhuo Information Technology Co., Ltd. (“WFOE”) in the PRC.

As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business primarily through the VIE and the subsidiaries of the VIE. The Company, through the WFOE, entered into power of attorney agreements and an exclusive call option agreement with the nominee shareholders of the VIE that gave the WFOE the power to direct the activities that most significantly affect the economic performance of the VIE and to acquire the equity interests in the VIE when permitted by the PRC laws, respectively. Certain exclusive agreements were entered into with the VIE through the WFOE, which obligate the WFOE to absorb a majority of the risk of loss from the VIE’s activities and entitle the WFOE to receive a majority of its residual returns. In addition, the WFOE entered into an equity interest pledge agreement for equity interests in the VIE held by the nominee shareholders of the VIE. The Company also agreed to provide unlimited financial support to the VIE for its operations.

Despite the lack of technical majority ownership, the Company has effective control of the VIE through the VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE Agreements, the shareholders of the VIE effectively assigned all of their voting rights underlying their equity interest in the VIE to the Company. In addition, through the other exclusive agreements, which consist of exclusive call option agreement, exclusive business cooperation agreement, and equity interest pledge agreement, the Company, through its wholly-owned subsidiaries in the PRC, have the right to receive economic benefits from the VIE that could be potentially significant to the VIE. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIE that could potentially be significant to the VIE. Therefore, the Company is considered the primary beneficiary of the VIE and consolidates the VIE and its consolidated subsidiaries as required by SEC Regulation S-X Rule 3A-02 and Accounting Standard Codification (“ASC”) topic 810, Consolidation (“ASC 810”).

​ 7

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**1.**Organization, Consolidation and Principal Activities (continued)

As of June 30, 2023, RMB100,630 of accounts receivable of the VIE were pledged or collateralized. Creditors of the VIE have no recourse to the general credit of the Company, who is the primary beneficiary of the VIE, through its 100% controlled subsidiary WFOE. The Company did not provide any financial or other support to the VIE other than what is obligated by the agreements described above. The table sets forth the assets and liabilities of the VIE’s included in the Company’s consolidated balance sheets:

​

​	​	​	​	​	​	​
​	​	As of December 31,	​	As of June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
ASSETS:
Current assets:
Cash		87,579		86,635		11,948
Restricted cash		5,579		150		21
Short-term investments		2,500		—		—
Accounts receivable		495,046		495,004		68,264
Prepayments and other current assets		53,515		47,078		6,492
Inter-group balance due from Parent and WFOE		18		—		—
Amounts due from related parties		3,876		1,430		197
Total current assets	****	648,113		630,297		86,922
Non-current assets:
Property and equipment, net		11,251		8,623		1,189
Intangible assets, net		101,603		101,516		14,000
Operating lease right-of-use assets, net		5,562		7,719		1,064
Goodwill		65,481		65,481		9,030
Deferred tax assets		12,000		20,466		2,822
Other non-current assets		140,272		146,234		20,167
Total non-current assets	****	336,169		350,039		48,272
Total assets	****	984,282		980,336		135,194
LIABILITIES:				​		​
Current liabilities:				​		​
Accounts payable		293,281		310,115		42,767
Accrued expenses and other current liabilities		68,821		96,050		13,246
Short-term debt		65,434		95,705		13,198
Short-term lease liabilities		3,276		4,422		610
Inter-group balance due to Parent and WFOE		58,489		—		—
Total current liabilities	****	489,301		506,292		69,821
Non-current liabilities:
Deferred tax liabilities		814		924		127
Long-term debt		1,303		1,583		218
Long-term lease liabilities		1,103		2,066		285
Other non-current liabilities		66,880		66,601		9,185
Total non-current liabilities	****	70,100		71,174		9,815
Total liabilities	****	559,401		577,466		79,636

​

The VIE’s net asset balance was RMB424,881 and RMB 402,870 (US$55,558) as of December 31, 2022 and June 30, 2023, respectively.

​ 8

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**1.**Organization, Consolidation and Principal Activities (continued)

The table sets forth the results of operations of the VIE included in the Company’s consolidated statements of comprehensive loss for the six months ended June 30, 2022 and 2023, respectively:

​

​	​	​	​	​	​	​
​	****	Six Months Ended June 30,
​	​	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Revenue		1,863,795		1,724,336		237,797
Net income		13,133		5,027		693

​

The table sets forth the cash flows of the VIE included in the Company’s consolidated statements of cash flows for the six months ended June 30, 2022 and 2023, respectively:

​

​	​	​	​	​	​	​
​	​	Six Months Ended June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Net cash provided by/ (used in) operating activities		12,892		(30,836)		(4,252)
Net cash provided by/ (used in) investing activities		45,165		(6,036)		(832)
Net cash (used in)/ provided by financing activities		(41,443)	​	30,280		4,176
Effect of exchange rate changes on cash		(182)		218		30
Net increase/(decrease) in cash		16,432		(6,374)		(878)

​

​

​

**2.**Summary of Significant Accounting Policies

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2022. Accordingly, these unaudited interim condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for annual financial statements.

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Company for each of the periods presented. The results of operations for the six months ended June 30, 2023 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2023. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2022.

Principles of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the subsidiaries of the VIE. All significant inter-company transactions and balances have been eliminated upon consolidation.

​ 9

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**2.**Summary of Significant Accounting Policies (continued)

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Company’s consolidated financial statements include, but are not limited to, allowance for doubtful accounts for accounts receivable, fair value of short-term investment, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) applied in lease liabilities, impairment of long-lived assets, intangible assets and goodwill, purchase price allocation and fair value contingent consideration with respect to business combinations, valuation allowance for deferred tax assets, share-based compensation and fair value of intangible assets acquired associated with non-monetary transactions. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.

Foreign currency

The functional currency of the Company, Quhuo BVI and Quhuo HK is the United States Dollars (“US$”). The functional currency of WFOE, the VIE and subsidiaries of the VIE located in the PRC is Renminbi (“RMB”). The Company uses the RMB as its reporting currency.

Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses resulting from remeasurement are included in the consolidated statements of comprehensive loss.

The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders’ equity.

Convenience translation

Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB7.2513 on June 30, 2023 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

Cash, cash equivalents and restricted cash

Cash and cash equivalents primarily consist of cash on hand, demand deposits and time deposits which are highly liquid. The Company considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.

Restricted cash mainly represents cash reserved in a bank account for legal liability.

Accounts receivable and allowance for doubtful accounts

Accounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Company considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are written off after all collection efforts have ceased. 10

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**2.**Summary of Significant Accounting Policies (continued)

Short-term investments

Short-term investments consist of investments in structured notes with original maturities of greater than three months, but less than twelve months and investment in alternative investment fund, which is measured using the net asset value (NAV) per share as a practical expedient. The investment in the fund is redeemable on demand, subject to 30 days advance notice period.

Fair value measurements

Financial instruments of the Company primarily include cash, short-term investments, accounts receivable, other receivables, accounts payable and accrued liabilities, other receivables, amounts due from and due to related parties, long-term investments, deposits, equity consideration payable, contingent consideration payable, short-term debt and long-term debt. The Company applies ASC 820, Fair Value Measurements and Disclosures (‘‘ASC 820’’), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. The short-term investments are measured at fair value. Equity method investments have no quoted market prices and it is not practicable to estimate their fair value without incurring excessive costs. The carrying amounts of the remaining financial instruments, except for long-term debt and deposits, approximate their fair values because of their short-term maturities.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1-Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2-Include other inputs that are directly or indirectly observable in the marketplace.

Level 3-Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Leases

The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to not reassess 1) whether expired or existing contracts are or contain leases, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for existing leases as of the adoption date. The Company also made an accounting policy election to exempt short-term leases of 12 months or less form balance sheet recognition requirements associated with the new standard. The Company will recognize fixed rental payments for these short-term leases as a straight-line expense over the lease.

​ 11

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**2.**Summary of Significant Accounting Policies (continued)

Leases (continued)

The Company leases offices and service stations to support its on-demand delivery solution services and leases vehicles to individual drivers for ride-hailing solution services. The Company classifies these leases as operating leases in accordance with ASC 842-10-25-2. The Company records an operating lease right-of-use (“ROU”) asset and lease liability based on the present value of the lease payments over the lease term at the commencement date. The Company excludes variable lease payments not dependent on an index or rate from the ROU asset and lease liability calculations and are recognize such amounts as expense in the period which it incurs the obligation for those. As the rate implicit in the Company’s leases are not readily available, the company estimates its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis, the amount of the lease payments in the same currency, for a similar term and in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. The Company recognize operating lease expense on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise.

Income taxes

The Company follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes (‘‘ASC 740’’). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.

The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.

In accordance with the provisions of ASC 740, the Company recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is ‘‘more likely than not’’ to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Company’s estimated liability for unrecognized tax benefits, if any, will be recorded in the ‘‘other non-current liabilities’’ in the accompanying consolidated financial statements, and is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Company’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Company’s consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Company to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur.

​

​ 12

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**3.**Revenues

The following table presents the Company’s revenues disaggregated by revenue category. All revenues were generated in the PRC.

​

​	​	​	​	​	​	​
​	​	Six months ended June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Revenue from contract with customers
On-demand delivery solution services		1,763,807		1,649,593		227,489
Mobility solution services		56,463		58,518		8,070
Housekeeping and accommodation solutions		43,370		25,719		3,547
Others		155	​	2,487		343
Total revenues	****	1,863,795		1,736,317		239,449

​

​

**4.**Short-term investments

The Company’s short-term investments included structured notes with maturities of one year or less and investment in alternative investment fund, which is measured using the NAV per share as a practical expedient. The following is a summary of the Company’s short-term investments:

​

​	​	​	​	​	​	​
​		As of December 31,	​	As of June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Structured notes	​	2,500		—		—
Investment in fund	​	61,855		63,056		8,696
Total short-term investments	​	64,355		63,056		8,696

​

For the six months ended June 30, 2022 and 2023, the Group recognized other income related to its structured notes RMB721 and RMB119 (US$16), respectively, in the consolidated statements of comprehensive loss.

For the six months ended June 30, 2022, and 2023, the Group recognized unrealized loss on fair value change of the investment of RMB(25,401) and RMB(1,027) (US$142) as other loss, net in the consolidated statements of comprehensive loss, respectively.

​

**5.**Accounts Receivable

​

​	​	​	​	​	​	​
​	****	As of December 31,	​	As of June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Accounts receivable	​	502,177		500,862		69,072
Less: allowance for doubtful accounts	​	(7,131)		(5,856)		(808)
Accounts receivable, net	​	495,046		495,006		68,264

​

The following table presents the movement in the allowance for doubtful accounts:

​

​	​	​	​	​	​	​
​	****	As of December 31,	​	As of June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Balance at beginning of year	​	(4,651)		(7,131)		(984)
Additions	​	(4,243)		—		—
Written off	​	1,763		1,275		176
Balance at end of year	​	(7,131)		(5,856)		(808)

​

Substantially all of the Company’s accounts receivable as of December 31, 2022 and June 30, 2023 are aged within 150 days.

​ 13

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**6.**Leases

The Company’s operating leases mainly related to our office premises and on-demand delivery service stations. The total lease cost for the six months ended June 30, 2022 and 2023 was RMB 22,776 and RMB 19,439 (US$2,681), comprised of operating lease expenses of RMB 1,850 and RMB2,364 (US$326), and short-term lease expenses of RMB 20,926 and RMB17,075 (US$2,355) respectively. The weighted-average remaining lease term and weighted average incremental borrowing rate as of June 30, 2023 was 1.73 years and 4.71%, respectively.

The operating cash flows used in operating leases was RMB2,586 and RMB2,388 (US$329) for the year ended December 31, 2022 and six months ended June 30, 2023, respectively.

​

**7.**Other Non-current Assets

Other non-current assets consisted of the following:

​

​	​	​	​	​	​	​
​	****	As of December 31,	​	As of June 30,
​		2022		2023		2023
​	​	RMB	​	RMB	​	US$
Rental and industry customer deposits ^(1)^	​	100,443		106,944		14,748
Prepayments	​	33,802		33,237		4,584
Long-term investments	​	6,055		6,055		835
Total other non-current assets	​	140,300		146,236		20,167
(1)	The Company’s rental deposits are mainly paid to landlords for its various office spaces and are refundable upon termination of the leases. Industry customer deposits consist of refundable deposits paid to industry customers and are refundable upon termination of contracts with each customer. The Company evaluated the recoverability of the deposits periodically and recorded an allowance of nil and nil for the year ended December 31, 2022 and June 30, 2023, respectively.
---	---

​

**8.**Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

​

​	​	​	​	​	​	​
​	****	As of December 31,	​	As of June 30,
​	****	2022		2023		2023
​	​	RMB	​	RMB	​	US$
Amounts due to third-parties	​	33,157		44,180		6,093
Income tax payables	​	13,446		11,383		1,570
Other tax payables	​	12,025		—		—
Salary and welfare payables	​	33,262		19,215		2,650
Deposits received from ride-hailing drivers	​	3,234		3,220		444
Purchase consideration payable	​	15,845		15,739		2,171
Others	​	14,980		7,018		967
Total	​	125,949		100,755		13,895

​

​ 14

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

**9.**Debt

Short-term Debt

The following table presents the Company’s outstanding short-term debt as of December 31, 2022 and June 30, 2023:

​

​	​	​	​	​	​	​	​	​	​	​
​	****	Annual	****	​	****	As of	****	As of
Name	​	interest rates	​	Term	​	December 31, 2022	​	June 30, 2023
​	​	​	​	​	​	RMB	​	RMB	****	US$
Short-term loans									​	​
East West Bank		5.00%	​	6 months		65,000		65,000	​	8,964
Xiamen International Bank	​	6.00%	​	6 months	​	—	​	15,000	​	2,069
Bank of Beijing	​	4.02%	​	1 year	​	—	​	10,000	​	1,379
Industrial Bank	​	3.80%	​	1 year	​	—	​	5,000	​	690
Long-term debt, current portion		9.99% - 10.46%	​	3-4 years		434		705	​	96
Total	****	​				65,434		95,705	​	13,198

​

In April 2021, the Company entered into a banking facility agreement with East West Bank, pursuant to which the Company is entitled to borrow RMB65,000 with an interest rate of 5.00%. The loan is intended for general working capital purposes and is guaranteed by the Company and secured by certain accounts receivables of the Company.

​

In December 2022, the Company entered into a banking facility agreement with Xiamen International Bank Co., Ltd. pursuant to which the Company is entitled to borrow RMB20,000 with an interest rate of 6.00%. The Company drew down RMB20,000 in February 2023 and repaid RMB5,000 in June 2023. The loan is intended for general working capital purposes and is secured by Hainan Xinying Technology Co., Ltd..

In February 2023, the Company entered into a banking facility agreement with Bank of Beijing Co., Ltd., pursuant to which the Company is entitled to borrow RMB10,000 with an interest rate of 4.02%. The Company drew down RMB3,000 in March 2023 and RMB7,000 in June 2023. The loan is intended for general working capital purposes and is secured by Beijing Quhuo Information Technology Co., Ltd..

In May 2023, the Company entered into a banking facility agreement with Industrial Bank Co., Ltd., pursuant to which the Company is entitled to borrow RMB5,000 with an interest rate of 3.80%. The Company drew down RMB5,000 in June 2023. The loan is intended for general working capital purposes and is secured by Hainan Xinying Technology Co., Ltd..

Long-term debt

The following table presents the Company’s long-term debt as of December 31, 2022 and June 30, 2023:

​

​	​	​	​	​	​	​	​	​	​	​
​	****	Annual	****	​	****	As of	****	As of
​	​	interest rates	​	Term	​	December 31, 2022	​	June 30, 2023
​	​	​	​	​	​	RMB	​	RMB		US$
Long-term debt, current portion		9.99% - 10.46%	​	3-4 years		434		705	​	96
Long-term debt, non-current portion		9.99% - 10.46%	​	3-4 years		1,303		1,583	​	218
Total	****	​				1,737		2,288	​	314

​

The weighted average interest rate for all the outstanding borrowings was approximately5.18% and 5.12% as of December 31, 2022, and June 30, 2023 respectively.

​ 15

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

10.Income Taxes

The Company is incorporated in the Cayman Islands and conducts its primary business operations through subsidiaries and VIEs in the PRC. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on income nor capital gains. Additionally, upon payments of dividends by the Company to its shareholders, neither Cayman Islands nor BVI will impose withholding taxes. Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong corporate income tax rate at 16.5% exempting foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of dividends.

The Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the“EIT Law”), which was effective since January 1, 2008 except for the following entities eligible for preferential tax rates. In 2020, Nantong Runda qualified for the requirements of small and micro-sized enterprise, and its first one million RMB of annual taxable income was eligible for 75% reduction and the taxable income between one million RMB and three million RMB was eligible for 50% reduction and the applicable CIT rate was 20%. In 2021, Nantong Runda did not qualify for the requirements of small and micro-sized enterprise, and the applicable CIT rate is 25%. In 2022, Nantong Runda qualified for the requirements of small and micro-sized enterprise, and its first one million RMB of annual taxable income was eligible for 12.5% reduction and the taxable income between one million RMB and three million RMB was eligible for 50% reduction and the applicable CIT rate was 20%. Hainan Quhuo, Hainan Xinying, Haikou Chengtu, Haikou Chengjing are enterprises registered in the Hainan free trade port and engaged in substantial business in encouraged industries and are therefore entitled to preferential tax rate of 15%. Beijing Quhuo, a subsidiary of VIE, was recognized as high and new technology enterprise (“HNTE”) and was eligible for a preferential tax rate of 15% from 2020 to 2023.

The Company recorded a tax expense of RMB6,683 and tax benefit of RMB2,395 for the six months ended June 30, 2022 and 2023, respectively. The income tax is primarily driven by nondeductible share-based compensation expenses and unbenefited losses from continuing operations. Furthermore, the Company’s effective tax rates from continuing operations were 34% and (30%) for the six months ended June 30, 2022 and 2023, respectively. Changes in various permanent differences relative to our pre-tax income/loss from continuing operations had a favorable impact on the effective tax rate for the first six months ended June 30, 2023 compared to the same period prior year.

​

11.Loss Per Share

The rights of the holder of Class A and Class B ordinary shares were identical for all periods presented, except with respect to voting and conversion rights, and therefore, the undistributed earnings were allocated on a proportionate basis and the resulting earnings per share attributable to ordinary shareholders were the same for both Class A and Class B ordinary shares on an individual or combined basis. The following table sets forth the computation of basic net loss per share for the following periods:

​

​	​	​	​	​	​	​
​	​	Six Months End June 30,
​	****	2022	****	2023	****	2023
​	****	RMB	****	RMB	****	US$
Basic Loss Per Share
Numerator:
Net loss attributable to ordinary shareholders	​	(24,953)		(9,648)	​	(1,331)
Denominator:				​	​
Weighted average number of shares outstanding		46,841,258		56,441,811	​	56,441,811
Loss per share - basic	****	(0.53)		(0.17)	​	(0.02)

​

For the periods presented herein, the computation of basic loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company. The effects of all outstanding options and other participating securities were also excluded from the computation of diluted loss per share as their effects would be anti-dilutive during the periods.

​ 16

QUHUO LIMITED

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares and per share data)

​

12.Commitments and Contingencies

Contingencies

In the ordinary course of business, the Company may from time to time be involved in legal proceedings and litigation relating to injuries caused by workforce and labor arbitration cases brought by disgruntled workforce, among others. The Company records a liability when the Company believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. With respect to the Company’s outstanding legal matters, based on its current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties.

​

13.Related Party Transactions

​

​	​	​	​
Names of the related parties	****	Relationship with the Company	****
Hainan Huiliu Tianxia Network Technology Co., Ltd.(“Hainan Huiliu”)	​	Entity controlled by a principle shareholder	​
Shenyang Bokai Network Technology Co., Ltd. (“Shenyang Bokai”)	​	Entity controlled by management	​

​

Amounts due from related parties as of December 31, 2022 and June 30, 2023 were as follows:

​

​	​	​	​	​	​	​
​	​	As of December 31,	​	As of June 30,
​	****	2022	****	2023	****	2023
​	****	RMB	****	RMB	****	US$
Amounts due from related parties ：
Hainan Huiliu		3,876		1,430		197

​

Amounts due from Hainan Huiliu were unsecured, interest-free and have fixed terms of repayment, which were advance made.

​

Transactions with related parties for the years ended December 31, 2022 and June 30, 2023:

​

​	​	​	​	​	​	​
​	****	Six Months End June 30,
​	****	2022	****	2023	****	2023
​	****	RMB	****	RMB	****	US$
Labor consulting service received from:
Hainan Huiliu		41,747		21,693		2,992
Shenyang Bokai		1,388		—		—
Total		43,135		21,693		2,992

​

The Company received labor recruitment services from Hainan Huiliu and Shenyang Bokai and recorded labor recruitment cost in cost of revenues.

14.Restricted Net Assets

Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries and VIE with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts restricted include paid-in capital, statutory reserve of the Company’s PRC subsidiaries and pledged or collateralized accounts receivable and property and equipment of the VIE, totaling approximately RMB196,015 (US$27,032) as of June 30, 2023. 17

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations for the six months ended June 30, 2022 and 2023. This section should be read in conjunction with our unaudited condensed consolidated financial statements for the six-month periods ended June 30, 2022 and 2023 and related notes thereto, or the Unaudited Condensed Consolidated Financial Statements, included as Exhibit 99.1 to the report on Form 6-K to which this discussion is included. We also recommend that you read our management’s discussion and analysis and our audited consolidated financial statements for the fiscal year 2022 and the notes thereto, which appear in our annual report on Form 20-F for the year ended December 31, 2022, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or the SEC, on April 20, 2023.

Unless otherwise indicated or the context otherwise requires, all references to “our company,” “we,” “our,” “ours,” “us” or similar terms refer to Quhuo Limited , its subsidiaries, and, in the context of describing our operations and consolidated financial information, its VIE and subsidiaries of its VIE. “VIE” refers to Beijing Quhuo Technology Co., Ltd.

All such financial statements were prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. We have made rounding adjustments to some of the figures included in this management’s discussion and analysis. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors.

Key Operating Metrics

In the six months ended June 30, 2023, the number of average monthly active workers on our platform was approximately 59,700, representing a 1.6% year-over-year increase.

We provided services in 1,182 business circles across 119 cities nationwide as of June 30, 2023, as compared to 1,118 business circles across 109 cities nationwide as of December 31, 2022.

​

Results of Operations

The following table sets forth a summary of our unaudited condensed consolidated statements of operations, both in absolute amount and as a percentage of our net revenues, for the periods indicated. This information has been derived from and should be read together with our Unaudited Condensed Consolidated Financial Statements. The results of operations in any period are not necessarily indicative of the results that may be expected for any future period.

​

​	​	​	​	​	​	​
​	​	Six Months Ended June 30,
​	****	2022	****	2023	****	2023
​	​	RMB	​	RMB	​	US$
​	​	(in thousands)
Revenues		1,863,795		1,736,317		239,449
Cost of revenues		(1,769,867)		(1,669,515)		(230,237)
General and administrative		(99,525)		(81,611)		(11,255)
Research and development		(7,161)		(6,645)		(916)
Gain on disposal of assets, net		4,732		8,916		1,230
Operating loss	****	(8,026)	****	(12,538)	****	(1,729)
Interest income		191		742		102
Interest expense		(3,786)		(2,323)		(320)
Other (loss)/income, net		(8,282)		6,034		832
Loss before income tax	****	(19,903)	****	(8,085)	****	(1,115)
Income tax (expense)/benefit		(6,683)		2,395		330
Net loss	****	(26,586)	****	(5,690)	****	(785)
Net loss/(income) attributable to non-controlling interests		1,633		(3,958)		(546)
Net loss attributable to ordinary shareholders of Quhuo Limited	****	(24,953)	****	(9,648)	****	(1,331)
Loss per share:
Basic		(0.53)		(0.17)		(0.02)
Diluted		(0.53)		(0.17)		(0.02)
Shares used in loss per share computation:
Basic		46,841,258		56,441,811		56,441,811
Diluted		46,841,258		56,441,811		56,441,811
Other comprehensive loss:
Foreign currency translation adjustment		5,295		3,555		490
Comprehensive loss	****	(21,291)	****	(2,135)	****	(295)
Comprehensive loss/(income) attributable to non-controlling interests		1,633		(3,958)		(546)
Comprehensive loss attributable to ordinary shareholders of Quhuo Limited	****	(19,658)	****	(6,093)	****	(841)

​

​

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Revenues

Total revenues decreased by 6.8% from RMB1,863.8 million in the six months ended June 30, 2022 to RMB1,736.3 million (US$239.4 million) in the six months ended June 30, 2023 due to the following reasons.

●	Revenues from on-demand delivery solutions were RMB1,649.6 million (US$227.5 million), representing a slight decrease of 6.5% from RMB1,763.8 million in the six months ended June 30, 2022, primarily because we enjoyed more preferential policies during the first half of 2022 amid the COVID-19 pandemic, which was significantly reduced in the six months ended June 30, 2023 following the relief of the pandemic.
●	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 (US$8.1 million), representing an increase of 3.6% from RMB56.5 million in the six months ended June 30, 2022, primarily due to (1) the commencement of vehicle export solutions, which generated revenue of RMB12.0 million, and (2) our enlarged customer base and service scope for ride-hailing solutions services.
---	---
●	Revenues from housekeeping and accommodation solutions and other services were RMB28.2 million (US$3.9 million), representing a decrease of 35.2% from RMB43.5 million in the six months ended June 30 of 2022, primarily due to the transition of business model in hotel service.
---	---

Cost of revenues

Cost of revenues was RMB1,669.5 million (US$230.2 million), representing a decrease of 5.7% year-over-year, primarily attributable to the decreases in our labor cost and hiring expenses.

General and administrative expenses

General and administrative expenses were RMB81.6 million (US$11.3 million), representing a decrease of 18.0% from RMB99.5 million in the six months ended June 30 of 2022, primarily due to the decreases in (1) share-based compensation expenses from RMB12.5 million in the first half of 2022 to RMB3.9 million (US$0.5 million) in the first half of 2023, and (2) welfare and business development expenses and office expenses from RMB29.5 million in the first half of 2022 to RMB17.3 million (US2.4 million) in the first half of 2023.

Research and development expenses

Research and development expenses were RMB6.6 million (US$0.9 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 research and development personnel as we restructured our R&D team.

Gain on disposal of assets, net

We recorded gain on disposal of assets, net of RMB4.7 million and RMB8.9 million (US$1.2 million) in the six months ended June 30, 2022 and 2023, respectively, primarily due to the transfer of certain customer relationships related to our on-demand delivery solutions to third parties.

Interest income

Our interest income was RMB0.2 million and RMB0.7 million (US$0.1 million) in the six months ended June 30, 2022 and 2023, respectively, primarily relating to our bank deposits.

Interest expense

Our interest expense decreased by 38.6% from RMB3.8 million in the six months ended June 30, 2022 to RMB2.3 million (US$0.3 million) in the six months ended June 30, 2023, primarily due to the decrease in our average short-term bank borrowings.

Other (loss)/income, net

We recorded other income, net, of RMB6.0 million (US$0.8 million) in the six months ended June 30, 2023, compared to other loss, net, of RMB8.3 million in the six months ended June 30, 2022, primarily due to the increase in fair value change of investment in a mutual fund.

Income tax (expense)/benefit

We recorded income tax benefit of RMB2.4 million (US$0.3 million) in the six months ended June 30, 2023, as compared to income tax expense of RMB6.7 million in the six months ended June 30, 2022, primarily due to the increase in deferred tax asset benefit.

Net loss

As a result of the foregoing, we had net loss of RMB26.6 million and RMB5.7 million (US$0.8 million) in the six months ended June 30, 2022 and 2023, respectively.

Adjusted net loss

Adjusted net loss was RMB1.8 million (US$0.3 million), as compared to adjusted net loss of RMB14.1 million in the first half of 2022.

Adjusted EBITDA

Adjusted EBITDA was RMB11.1 million (US$1.5 million), as compared to adjusted EBITDA of RMB10.8 million in the first half of 2022.

Non-GAAP Financial Measure

Quhuo uses adjusted net income/(loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income/(loss) represents net income/(loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/(loss) before income tax benefit/(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net loss to adjusted net loss and adjusted EBITDA, respectively.

​

QUHUO LIMITED

​

Reconciliation of GAAP and Non-GAAP Results

​

​	​	​	​	​	​	​
​	​	For the Six Months Ended
​	****	June 30, 2022	****	June 30, 2023	****	June 30, 2023
​	​	(RMB)	​	(RMB)	​	(US$)
​	​	(in thousands)
Net loss		(26,586)		(5,690)		(785)
Add: Share-based Compensation		12,503		3,853		531
​	​	​	​	​	​	​
Adjusted net loss		(14,083)		(1,837)		(254)
Add:	​	​	​	​	​	​
Income tax expense/(benefit)		6,683		(2,395)		(330)
Depreciation		3,798		2,927		404
Amortization		10,663		10,128		1,397
Interest		3,786		2,323		320
​	​	​	​	​	​	​
Adjusted EBITDA		10,847		11,146		1,537

​

Liquidity and Capital Resources

Our principal sources of liquidity have been cash generated from our operations and external financing, including the proceeds we received from our initial public offering, proceeds from exercise of share options and loans from commercial banks. As of June 30, 2023, we had RMB115.2 million (US$15.9 million) in cash. Our cash consists primarily of cash on hand, demand deposits and time deposits which are highly liquid. We believe that our current cash, cash equivalents and restricted cash, the available credit under our existing credit facilities, and our anticipated cash flows from operations will be sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months. We may, however, need additional capital for business expansion in the future.

As a holding company with no material operations of our own, we conduct our operations primarily through our consolidated VIE and its subsidiaries. As of June 30, 2023, 75.3% of our cash were held by our VIE and its subsidiaries and denominated in Renminbi. Although we consolidate the results of our VIE, we only have access to the assets and earnings of our VIE through our contractual arrangements with the VIE and its nominee shareholders.

We had net loss of RMB26.6 million and negative cash flows from operations of RMB$2.9 million for the six months ended June 30, 2022. We had net loss of RMB5.7 million (US$0.8 million) and negative cash flows from operations of RMB22.4 million (US$3.1 million) for the six months ended June 30, 2023. We had positive working capital, which equals the result of current assets minus current liabilities, of RMB231.3 million and RMB220.3 million (US$30.4 million) as of June 30, 2022 and 2023, respectively. The total outstanding balance of our short-term bank borrowings as of June 30, 2023 was RMB95.0 million (US$13.1 million). We had entered into four short-term bank borrowings as of June 30, 2023:

●	In April 2021, we entered into a banking facility agreement with East West Bank, pursuant to which we are entitled to borrow RMB65.0 million with an interest rate of 5.00% per annum. The loan is intended for general working capital purposes and is guaranteed by our Company and secured by certain accounts receivables of our Company.
●	In December 2022, we entered into a banking facility agreement with Xiamen International Bank Co., Ltd., pursuant to which we are entitled to borrow RMB20.0 million with an interest rate of 6.00% per annum. We drew down RMB20.0 million in February 2023 and repaid RMB5.0 million in June 2023. The loan is intended for general working capital purposes and is secured by Hainan Xinying Technology Co., Ltd.
---	---
●	In February 2023, we entered into a banking facility agreement with Bank of Beijing Co., Ltd., pursuant to which we are entitled to borrow RMB10.0 million with an interest rate of 4.02% per annum. We drew down RMB3.0 million in March 2023 and RMB7.0 million in June 2023. The loan is intended for general working capital purposes and is secured by Beijing Quhuo Information Technology Co., Ltd.
---	---
●	In May 2023, we entered into a banking facility agreement with Industrial Bank Co., Ltd., pursuant to which we are entitled to borrow RMB5.0 million with an interest rate of 3.80% per annum. We drew down RMB5.0 million in June 2023. The loan is intended for general working capital purposes and is secured by Hainan Xinying Technology Co., Ltd.
---	---

While there can be no assurance that we will be able to refinance our short-term bank borrowings as they become due, historically, we have renewed or rolled over most of our short-term bank loans upon the maturity of such loans and believe we will continue to be able to do so.

We intend to finance our future working capital requirements and capital expenditures from cash generated from operating activities and financing activities, including the net proceeds we received from our initial public offering. To utilize the proceeds we received from our initial and any subsequent public offerings, we may make additional capital contributions to our PRC subsidiaries, the VIE and subsidiaries of the VIE and make capital contributions to these new PRC subsidiaries, or make loans to the PRC subsidiaries. However, most of these uses are subject to PRC regulations. Foreign direct investment and loans must be approved by and/or registered with SAFE and its local branches. The total amounts of loans we can make to our PRC subsidiary cannot exceed statutory limits and must be registered with the local counterpart of SAFE. The statutory limit for the total amount of foreign debts of a foreign-invested company is the difference between the amount of total investment as approved by the Ministry of Commerce or its local counterpart and the amount of registered capital of such foreign-invested company.

A substantial portion of our future revenues are likely to continue to be in the form of Renminbi. Under existing PRC foreign exchange regulations, Renminbi may not be converted into foreign exchange for current account items, including profit distributions, interest payments and trade- and service-related foreign exchange transactions without prior SAFE approval by following certain routine procedural requirements. However, current PRC regulations permit our PRC subsidiary to pay dividends to us only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. Our PRC subsidiary is required to set aside at least 10% of its after-tax profits after making up previous years’ accumulated losses each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. These reserves may not be distributed as cash dividends.

We may require additional cash resources due to changing business conditions or other future developments, including acquisitions or investments we may decide to selectively pursue. If our existing cash resources are insufficient to meet our requirements, we may seek to issue equity or debt securities or obtain credit facilities. The issue of additional equity securities, including convertible debt securities, would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in the amounts we need or on terms acceptable to us, if at all. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.

The following table sets forth a summary of our unaudited condensed consolidated statement of cash flows for the periods indicated:

​

​	​	​	​	​	​	​
​	​	Six Months Ended June 30,
​		2022		2023		2023
​	​	RMB	​	RMB	​	US$
​	​	(in thousands)
Net cash used in operating activities		(2,902)		(22,364)		(3,084)
Net cash generated from investing activities		58,234		5,481		756
Net cash (used in)/generated from financing activities		(41,444)		30,280		4,176
Effect of exchange rate changes on cash and restricted cash		194		770		106
Net increase in cash and restricted cash		14,082		14,167		1,954
Cash and restricted cash at beginning of the year		30,908		101,023		13,932
Cash and restricted cash at end of the year		44,990		115,190		15,886

​

Operating Activities

Net cash used in operating activities in the six months ended June 30, 2023 was RMB22.4 million (US$3.1 million), primarily due to a net loss of RMB5.7 million (US$0.8 million), adjusted for (1) certain non-cash items, mainly including amortization of RMB10.1 million (US$1.4 million) and share-based compensation expenses of RMB3.9 million (US$0.5 million), and (2) changes in certain working capital items that negatively impact the cash flow from operating activities, mainly including a decrease of RMB21.4 million (US$3.0 million) in accrued expenses and other current liabilities, an increase of RMB5.9 million (US$0.8 million) in other non-current assets, and an increase of RMB5.6 million (US$0.8 million) in prepayments and other current assets, partially offset by changes in certain working capital items that positively impact the cash flow from operating activities, mainly including an increase of RMB21.1 million (US$3.0 million) in accounts payable.

Net cash generated from operating activities in the six months ended June 30, 2022 was RMB2.9 million, primarily due to a net loss of RMB26.6 million in the same period, adjusted for (1) certain non-cash items, mainly including changes in fair value of short-term investment of RMB20.4 million and share-based compensation expenses of RMB12.5 million, and (2) changes in certain working capital items that positively impact the cash flow from operating activities, mainly including a decrease of RMB41.3 million in account receivable and a decrease of RMB10.9 million in other non-current assets, partially offset by changes in certain working capital items that negatively impact the cash flow from operating activities, mainly including a decrease of RMB39.4 million in accounts payable and a decrease of RMB21.8 million in accrued expenses and other current liabilities.

Investing Activities

Net cash provided by investing activities in the six months ended June 30, 2023 was RMB5.5 million (US$0.8 million), primarily due to proceeds from sales of short-term investments of RMB62.5 million (US$8.6 million) and proceeds from disposals of intangible assets of RMB19.1 million (US$2.6 million), partially offset by purchase of short-term investments of RMB60.0 million (US$8.3 million) and acquisition of intangible assets of RMB18.5 million (US$2.5 million).

Net cash provided by investing activities in the six months ended June 30, 2022 was RMB58.2 million, primarily due to sales of short-term investments of RMB1,110.2 million and refund of short-term investments of RMB15.0 million, partially offset by proceeds from purchase of short-term investments of RMB1,054.7 million and loans to a related party RMB9.1 million.

Financing Activities

Net cash provided by financing activities in the six months ended June 30, 2023 was RMB30.3 million (US$4.2 million), primarily due to the proceeds from short-term loans of RMB102.9 million (US$14.2 million), partially offset by repayments of short-term loans of RMB72.9 million (US$10.1 million).

Net cash used in financing activities in the six months ended June 30, 2022 was RMB41.4 million, primarily due to the repayment of short-term loans of RMB382.5 million, and repayment of long-term debt of RMB4.4 million, partially offset by proceeds from short-term loans of RMB345.5 million.

Capital Expenditures

We made capital expenditures of RMB2.4 million and RMB1.3 million (US$0.2 million) in the six months ended June 30, 2022 and 2023, respectively. Our capital expenditures were mainly used for purchases of property and equipment, such as vehicles in connection with our ride-hailing solutions and electronic equipment. We will continue to make capital expenditures to meet the expected growth of our business.

Off-balance Sheet Arrangements

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.

Cautionary Statement Regarding Forward Looking Statements

We have made statements in this report that constitute forward-looking statements. Forward-looking statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “should,” “could” and similar expressions. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements.

These forward-looking statements include statements about:

●our future business development, financial condition and results of operations;

●the expected growth of the relevant markets;

●our expectations regarding demand for and market acceptance of our services;

●expected changes in our revenues, costs or expenditures;

●general business, political, social and economic conditions in China and the relevant markets where we have operations; and

●the development of the COVID-19 pandemic and its impact on our business and industry.

The ultimate correctness of these forward-looking statements depends upon a number of known and unknown risks and events. Many factors could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Consequently, you should not place undue reliance on these forward-looking statements.

The forward-looking statements speak only as of the date on which they are made, and, except as required by law; we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update this forward-looking information. Nonetheless, we reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this interim report. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

Exhibit 99.3

Quhuo Reports Unaudited Financial Results for the First Half of 2023

BEIJING, China, Aug.31, 2023 (PRNewswire) -- Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading gig economy platform focusing on local life services in China, today reported its unaudited financial results for the six months ended June 30, 2023.

Financial and Operational Highlights for the First Half of 2023

●	Revenues from mobility solution services were RMB58.5 million (US8.1 million), representing an increase of 3.6% year-over-year.
●	Net loss was RMB5.7 million (US$0.8 million), representing a decrease of 78.6% year-over-year.
---	---
●	Adjusted net loss was RMB1.8 million (US$0.3 million), representing a decrease of 87.0% year-over-year.
---	---
●	Quhuo International has signed service contracts for 1,720 units of vehicles under its vehicle export solutions, of which 200 units have been shipped.
---	---

Mr. Leslie Yu, Chairman and CEO of Quhuo, stated, “We are pleased to conclude that Quhuo Limited achieved several financial improvements in the first half of 2023, albeit the overall economic condition in the domestic market. During this period, Quhuo recorded a total revenue of RMB1,736.3 million. The net loss and adjusted net loss narrowed by 78.6% and 87.0% compared to the same period last year, which was RMB5.7 million and RMB1.8 million, respectively. The adjusted EBITDA increased 2.8% year-over-year to RMB11.1 million.”

“Thanks to the early layout of Quhuo ‘s overseas business, Quhuo International has signed contracts for 1,720 units of vehicles under its vehicle export solutions and completed shipment of 200 units in the first half of 2023, which demonstrates the good results of our new business.”

“Looking ahead, we anticipate that this business will continue to contribute positively to our growth, as we explore potential partnerships to collectively advance the electric vehicle sector. We are confident that the vehicle export solutions will promote international automotive trade, tap into overseas markets for the growing electric vehicle sector, and actively assume a positive role in global energy conservation and emission reduction.”

Unaudited Financial Results of the F irst Half of 2023 Compared to the F irst Half of 2022

Total revenues decreased by 6.8% from RMB1,863.8 million in the six months ended June 30, 2022 to RMB1,736.3 million (US$239.4 million) in the six months ended June 30, 2023 due to the following reasons.

●	Revenues from on-demand delivery solutions were RMB1,649.6 million (US$227.5 million), representing a slight decrease of 6.5% from RMB1,763.8 million in the six months ended June 30, 2022, primarily because we enjoyed more preferential policies during the first half of 2022 amid the COVID-19 pandemic, which was significantly reduced in the six months ended June 30, 2023 following the relief of the pandemic.
●	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 (US$8.1 million), representing an increase of 3.6% from RMB56.5 million in the six months ended June 30, 2022, primarily due to (1) the commencement of vehicle export solutions, which generated revenue of RMB12.0 million, and (2) our enlarged customer base and service scope for ride-hailing solutions services.
---	---
●	Revenues from housekeeping and accommodation solutions and other services were RMB28.2 million (US$3.9 million), representing a decrease of 35.2% from RMB43.5 million in the six months ended June 30 of 2022, primarily due to the transition of business model in hotel service.
---	---

Cost of revenues was RMB1,669.5 million (US$230.2 million), representing a decrease of 5.7% year-over-year, primarily attributable to the decreases in our labor cost and hiring expenses.

General and administrative expenses were RMB81.6 million (US$11.3 million), representing a decrease of 18.0% from RMB99.5 million in the six months ended June 30 of 2022, primarily due to the decreases in (1) share-based compensation expenses from RMB12.5 million in the first half of 2022 to RMB3.9 million (US$0.5 million) in the first half of 2023, and (2) welfare and business development expenses and office expenses from RMB29.5 million in the first half of 2022 to RMB17.3 million (US2.4 million) in the first half of 2023.

Research and development expenses were RMB6.6 million (US$0.9 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 research and development personnel as we restructured our R&D team.

We recorded gain on disposal of assets, net of RMB4.7 million and RMB8.9 million (US$1.2 million) in the six months ended June 30, 2022 and 2023, respectively, primarily due to the transfer of certain customer relationships related to our on-demand delivery solutions to third parties.

Our interest income was RMB0.2 million and RMB0.7 million (US$0.1 million) in the six months ended June 30, 2022 and 2023, respectively, primarily relating to our bank deposits.

Our interest expense decreased by 38.6% from RMB3.8 million in the six months ended June 30, 2022 to RMB2.3 million (US$0.3 million) in the six months ended June 30, 2023, primarily due to the decrease in our average short-term bank borrowings.

We recorded other income, net, of RMB6.0 million (US$0.8 million) in the six months ended June 30, 2023, compared to other loss, net, of RMB8.3 million in the six months ended June 30, 2022, primarily due to the increase in fair value change of investment in a mutual fund.

We recorded income tax benefit of RMB2.4 million (US$0.3 million) in the six months ended June 30, 2023, as compared to income tax expense of RMB6.7 million in the six months ended June 30, 2022, primarily due to the increase in deferred tax asset benefit.

As a result of the foregoing, we had net loss of RMB26.6 million and RMB5.7 million (US$0.8 million) in the six months ended June 30, 2022 and 2023, respectively.

Adjusted net loss was RMB1.8 million (US$0.3 million), as compared to adjusted net loss of RMB14.1 million in the first half of 2022.^(1)^

Adjusted EBITDA was RMB11.1 million (US$1.5 million), as compared to adjusted EBITDA of RMB10.8 million in the first half of 2022.^(1)^

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(1)	See “Use of Non-GAAP Financial Measures.”

CONFERENCE CALL

Quhuo will hold a conference call on Thursday, August 31, 2023, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time on the same day) to discuss the financial results.

Participants can register for the conference call by navigating to https://s1.c-conf.com/diamondpass/10033320-jh3e5r.html. Once preregistration has been completed, participants will receive dial-in numbers, a direct event passcode, and a unique registrant ID.

To join the conference, please dial the number you receive, enter the direct event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.quhuo.cn/.

A replay will be accessible through 9:59 a.m. U.S. Eastern Time on September 6, 2023 (9:59 p.m. Beijing/Hong Kong time on the same day):

United States:	1855 883 1031
China Domestic:	400 1209 216
Hong Kong:	800 930 639
Replay PIN::	10033320

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USE OF NON-GAAP FINANCIAL MEASURES

Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).

Quhuo uses adjusted net income/(loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income/(loss) represents net income/(loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/(loss) before income tax benefit/(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net loss to adjusted net loss and adjusted EBITDA, respectively.

QUHUO LIMITED

Reconciliation of GAAP and Non-GAAP Results

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​	​	​	​	​	​	​
​	​	For the Six Months Ended
​	****	June 30, 2022	****	June 30, 2023	****	June 30, 2023
​	​	(RMB)	​	(RMB)	​	(US$)
​	​	(in thousands)
Net loss		(26,586)		(5,690)		(785)
Add: Share-based Compensation		12,503		3,853		531
​	​	​	​	​	​	​
Adjusted net loss		(14,083)		(1,837)		(254)
Add:
Income tax expense/(benefit)		6,683		(2,395)		(330)
Depreciation		3,798		2,927		404
Amortization		10,663		10,128		1,397
Interest		3,786		2,323		320
​	​	​	​	​	​	​
Adjusted EBITDA		10,847		11,146		1,537

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EXCHANGE RATE INFORMATION

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This press release contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for readers’ convenience. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2513 to US$1.00, the rate in effect as of June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

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ABOUT QUHUO LIMITED

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Quhuo Limited (NASDAQ: QH) (“Quhuo” or the “Company”) is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.

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With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.

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SAFE HARBOR STATEMENT

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This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo’s abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationship with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

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For more information about Quhuo, please visit https://ir.quhuo.cn/.

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CONTACTS:

​

Investor Relations

Quhuo Limited

E-mail: ir@meishisong.cn

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​

QUHUO LIMITED

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

​

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

​

​	​	​	​	​	​	​
​	​	As of December 31,	​	As of June 30,	​	As of June 30,
​	****	2022	****	2023	****	2023
​	​	(RMB)	​	(RMB)	​	(US$)
Assets	​	​	​	​	​	​
Current assets	​	​	​	​	​	​
Cash		95,444		115,040		15,865
Restricted cash		5,579		150		21
Short-term investments		64,355		63,056		8,696
Accounts receivable, net		495,046		495,006		68,264
Prepayments and other current assets		54,921		60,864		8,394
Amounts due from related parties		3,876		1,430		197
Total current assets	****	719,221	****	735,546	****	101,437
​	​	​	​	​	​	​
Property and equipment, net		11,450		8,788		1,212
Right-of-use assets, net		5,562		7,719		1,064
Intangible assets, net		101,603		101,516		14,000
Goodwill		65,481		65,481		9,030
Deferred tax assets		12,000		20,466		2,822
Other non-current assets		140,300		146,236		20,167
Total non-current assets	****	336,396	****	350,206	****	48,295
​	​	​	​	​	​	​
Total assets	****	1,055,617	****	1,085,752	****	149,732
​	​	​	​	​	​	​
Liabilities, non-controlling interests and shareholders’ equity
Current liabilities
Accounts payables		293,281		314,401		43,358
Accrued expenses and other current liabilities		125,949		100,755		13,895
Short-term debt		65,434		95,705		13,198
Short-term lease liabilities		3,276		4,422		610
Total current liabilities	****	487,940	****	515,283	****	71,061
​	​	​	​	​	​	​
Long-term debt		1,303		1,583		218
Long-term lease liabilities		1,103		2,066		285
Deferred tax liabilities		814		924		127
Other non-current liabilities		66,880		66,601		9,185
Total non-current liabilities	****	70,100	****	71,174	****	9,815
​	​	​	​	​	​	​
Total liabilities	****	558,040	****	586,457	****	80,876

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QUHUO LIMITED

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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​	​	​	​	​	​	​
​	****	As of December 31,	****	As of June 30,	****	As of June 30,
​	​	2022	​	2023	​	2023
​	​	(RMB)	​	(RMB)	​	(US$)
Shareholders’ equity	​	​	​	​	​	​
Ordinary shares		43		43		6
Additional paid-in capital		1,885,637		1,889,490		260,573
Accumulated deficit		(1,379,864)		(1,389,512)		(191,622)
Accumulated other comprehensive loss		(4,654)		(1,099)		(152)
Total Quhuo Limited shareholders’ equity	****	501,162	****	498,922	****	68,805
Non-controlling interests		(3,585)		373		51
Total shareholders’ equity	****	497,577	****	499,295	****	68,856
​	​	​	​	​	​	​
Total liabilities and shareholders’ equity	****	1,055,617	****	1,085,752	****	149,732

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QUHUO LIMITED

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

​

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

​

​	​	​	​	​	​	​
​	​	For the Six Months Ended
​	****	June 30, 2022	****	June 30, 2023	****	June 30, 2023
​	​	(RMB)	​	(RMB)	​	(US$)
​	​	​	​	​	​	​
Revenues		1,863,795		1,736,317		239,449
Cost of revenues		(1,769,867)		(1,669,515)		(230,237)
General and administrative		(99,525)		(81,611)		(11,255)
Research and development		(7,161)		(6,645)		(916)
Gain on disposal of assets, net		4,732		8,916		1,230
​	​	​	​	​	​	​
Operating loss	****	(8,026)	****	(12,538)	****	(1,729)
​	​	​	​	​	​	​
Interest income		191		742		102
Interest expense		(3,786)		(2,323)		(320)
Other (loss)/income , net		(8,282)		6,034		832
Loss before income tax	****	(19,903)	****	(8,085)	****	(1,115)
Income tax (expense)/benefit		(6,683)		2,395		330
Net loss	****	(26,586)	****	(5,690)	****	(785)
​	​	​	​	​	​	​
Net loss/(income) attributable to non-controlling interests		1,633		(3,958)		(546)
Net loss attributable to ordinary shareholders of the Quhuo limited	****	(24,953)	****	(9,648)	****	(1,331)
​	​	​	​	​	​	​
Non-GAAP Financial Data
Adjusted net loss		(14,083)		(1,837)		(254)
Adjusted EBITDA		10,847		11,146		1,537
​	​	​	​	​	​	​
Loss per share for class A and class B ordinary shares
Basic		(0.53)		(0.17)		(0.02)
Diluted		(0.53)		(0.17)		(0.02)
​	​	​	​	​	​	​
Shares used in (loss)/earnings per share computation:
Basic		46,841,258		56,441,811		56,441,811
Diluted		46,841,258		56,441,811		56,441,811

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