QUHUO's 2024 Revenue, Net Income Plunge Amid Auditor Switch

TL;DR

**QUHUO's financials are flashing red, with revenue and net income plummeting, making it a risky bet in China's cutthroat gig economy.**

AI Summary

QUHUO Ltd (QH) filed a 20-F/A for the fiscal year ended December 31, 2024, primarily to amend its consolidated financial statements and related disclosures due to a change in its independent registered public accounting firm from Marcum Asia CPAs LLP to Guangdong Prouden CPAs GP on June 12, 2025. The amended financial statements show total revenues decreased to RMB3,046.9 million (US$417.4 million) in 2024 from RMB3,702.4 million in 2023, a decline of 17.7%. Net income also saw a significant drop, falling to RMB1.6 million (US$0.2 million) in 2024 from RMB6.0 million in 2023, representing a 73.3% decrease. Adjusted net income, excluding share-based compensation, was RMB1.6 million (US$0.2 million) in 2024, down from RMB5.5 million in 2023. The company continues to generate nearly all its revenue from on-demand delivery solutions, which accounted for 92.8% of total revenues in 2024, totaling RMB2,828.5 million (US$387.5 million). Cost of revenues decreased to RMB2,973.2 million (US$407.3 million) in 2024 from RMB3,535.8 million in 2023, primarily driven by lower service fees paid to workers and team leaders, which fell to RMB2,550.8 million (US$349.5 million) in 2024.

Why It Matters

This 20-F/A filing is crucial for investors as it provides the final audited financial statements for 2024, albeit with a significant restatement due to an auditor change. The substantial decline in both revenue and net income, down 17.7% and 73.3% respectively, signals potential operational challenges and increased competitive pressures in China's gig economy. For employees and gig workers, a slowdown in revenue growth could impact earning opportunities and job stability. Customers might see shifts in service quality or pricing as QUHUO navigates a more challenging financial landscape. The competitive context suggests QUHUO is struggling to maintain its market position against other labor outsourcing companies and online workforce marketplaces, making its ability to diversify beyond on-demand delivery critical for long-term viability.

Risk Assessment

Risk Level: high — The risk level is high due to the significant decline in both revenue and net income. Revenue decreased by 17.7% from RMB3,702.4 million in 2023 to RMB3,046.9 million in 2024, while net income plummeted by 73.3% from RMB6.0 million in 2023 to RMB1.6 million in 2024. This substantial deterioration in financial performance, coupled with the high concentration of revenue from on-demand delivery solutions (92.8% in 2024), indicates vulnerability to market shifts and competitive pressures.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to QUHUO given the sharp declines in revenue and net income. Await further clarity on the company's strategy to reverse these trends and diversify its revenue streams beyond the highly competitive on-demand delivery sector before considering any new positions.

Financial Highlights

debt To Equity

N/A

revenue

$3,046.9M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$1.6M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

-17.7%

Revenue Breakdown

Key Numbers

• $3,046.9M — Total Revenues (Decreased 17.7% from RMB3,702.4 million in 2023 to RMB3,046.9 million in 2024)
• $1.6M — Net Income (Decreased 73.3% from RMB6.0 million in 2023 to RMB1.6 million in 2024)
• $1.6M — Adjusted Net Income (Decreased from RMB5.5 million in 2023 to RMB1.6 million in 2024)
• 92.8% — Revenue from On-demand Delivery Solutions (Percentage of total revenues in 2024, showing high concentration)
• $2,828.5M — On-demand Delivery Solutions Revenue (Main revenue driver, decreased from RMB3,412.8 million in 2023 to RMB2,828.5 million in 2024)
• $2,973.2M — Cost of Revenues (Decreased from RMB3,535.8 million in 2023 to RMB2,973.2 million in 2024)
• $2,550.8M — Service Fees to Workers (Largest component of cost of revenues, decreased from RMB3,029.8 million in 2023 to RMB2,550.8 million in 2024)
• 890,653,509 — Class A Ordinary Shares Outstanding (As of December 31, 2024)
• 6,296,630 — Class B Ordinary Shares Outstanding (As of December 31, 2024)
• 2025-08-25T00:00:00Z — Filing Date (Date of the 20-F/A amendment filing)

Key Players & Entities

• QUHUO Ltd (company) — registrant of the 20-F/A filing
• Marcum Asia CPAs LLP (company) — dismissed independent registered public accounting firm
• Guangdong Prouden CPAs GP (company) — engaged independent registered public accounting firm
• Zhen Ba (person) — Chief Financial Officer of QUHUO Ltd
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Global Market (company) — exchange where American depositary shares are registered
• US$0.0001 (dollar_amount) — par value per Class A and Class B ordinary share
• RMB3,046.9 million (dollar_amount) — total revenues for the fiscal year ended December 31, 2024
• RMB1.6 million (dollar_amount) — net income for the fiscal year ended December 31, 2024
• RMB2,550.8 million (dollar_amount) — service fees paid to workers and team leaders in 2024

FAQ

Risk Factors

• Declining Revenue and Profitability [high — financial]: Total revenues decreased by 17.7% to RMB3,046.9 million in 2024 from RMB3,702.4 million in 2023. Net income dropped significantly by 73.3% to RMB1.6 million in 2024 from RMB6.0 million in 2023, indicating a severe contraction in profitability.
• High Concentration in On-demand Delivery [high — operational]: The company's revenue is heavily reliant on on-demand delivery solutions, which constituted 92.8% of total revenues in 2024. Any disruption or downturn in this specific segment could have a disproportionately large negative impact on overall financial performance.
• Decreasing Adjusted Net Income [high — financial]: Adjusted net income, excluding share-based compensation, also saw a substantial decline, falling to RMB1.6 million in 2024 from RMB5.5 million in 2023. This suggests that the core operational profitability has weakened.
• Rising Labor Costs Impact [medium — operational]: Service fees paid to workers and team leaders, the largest component of cost of revenues, decreased to RMB2,550.8 million in 2024 from RMB3,029.8 million in 2023. While this reduced costs, the underlying trend of rising labor costs in China could pressure margins if not managed effectively.
• Gig Economy Regulatory Uncertainty [medium — regulatory]: As a gig economy platform, QUHUO Ltd is subject to evolving regulations concerning independent contractor status, labor rights, and platform responsibilities in China. Changes in these regulations could increase compliance costs or alter business models.
• Intense Competition [medium — market]: The company operates in a competitive landscape for consumer services in China. Increased competition could lead to pricing pressures, higher customer acquisition costs, and reduced market share.
• Dependence on China's Economic Growth [medium — financial]: The company's performance is tied to China's overall economic growth, consumer spending, and disposable income. Any slowdown in the Chinese economy could negatively impact demand for its services.
• Reliance on Technology and Mobile Penetration [low — operational]: The business model depends on the development of mobile technology and high mobile internet penetration. While currently strong, any stagnation or decline in these technological factors could hinder growth.

Industry Context

QUHUO Ltd operates within China's rapidly evolving gig economy and consumer services sector. The industry is characterized by a high degree of competition, driven by technological advancements and increasing consumer demand for convenient, on-demand services. Key trends include the growth of mobile internet penetration, the increasing reliance on platform-based workforces, and evolving regulatory frameworks governing labor and platform operations.

Regulatory Implications

As a platform operating in the gig economy, QUHUO Ltd faces significant regulatory risks in China. Evolving labor laws and regulations concerning the classification of workers (employee vs. independent contractor) could impact its operational model and cost structure. Compliance with data privacy and consumer protection laws is also crucial.

What Investors Should Do

1. Monitor revenue diversification efforts.
2. Analyze cost management strategies.
3. Evaluate the impact of regulatory changes.
4. Assess profitability trends beyond reported net income.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the consolidated financial statements.
• 2024-12-31: Fiscal Year End — Marks the end of the reporting period for the amended consolidated financial statements.
• 2025-06-12: Change of Independent Registered Public Accounting Firm — The company changed its auditor from Marcum Asia CPAs LLP to Guangdong Prouden CPAs GP, necessitating the amendment of financial statements.
• 2025-08-25: Filing of 20-F/A Amendment — The amended annual report was filed, reflecting updated financial statements and disclosures.

Glossary

20-F/A

An amended annual report filed by foreign private issuers with the U.S. Securities and Exchange Commission (SEC). The '/A' signifies an amendment to a previously filed document. (This filing is an amendment to QUHUO Ltd's annual report, primarily to correct or update financial statements and disclosures.)

Gig Economy Platform

A business model that connects freelance or contract workers with customers for short-term tasks or services. (QUHUO Ltd operates as a gig economy platform, focusing on community-centered services and providing a flexible workforce.)

On-demand Delivery Solutions

Services that provide rapid delivery of goods or products to consumers, often facilitated through a technology platform. (This is QUHUO Ltd's primary revenue-generating segment, accounting for the vast majority of its total revenues.)

Cost of Revenues

The direct costs attributable to the production or delivery of goods or services sold by a company. (For QUHUO Ltd, this primarily includes service fees paid to workers and team leaders, reflecting the variable costs of its platform operations.)

Adjusted Net Income

A non-GAAP financial measure that adjusts net income to exclude certain items, such as share-based compensation, to provide a clearer view of core operating performance. (QUHUO Ltd uses this measure to present its profitability excluding the impact of share-based compensation expenses.)

Independent Contractors

Workers who are self-employed and not considered employees of the company they provide services to. They are typically responsible for their own taxes and benefits. (QUHUO Ltd engages workers as independent contractors, which is a key aspect of its gig economy business model and subject to regulatory scrutiny.)

Year-Over-Year Comparison

The amended 20-F/A filing for the fiscal year ended December 31, 2024, reveals a significant downturn compared to the previous year. Total revenues declined by 17.7% to RMB3,046.9 million from RMB3,702.4 million in 2023. Net income saw a drastic drop of 73.3%, falling to RMB1.6 million from RMB6.0 million. Adjusted net income also decreased substantially from RMB5.5 million to RMB1.6 million, indicating a weakening core operational performance. The primary driver of revenue, on-demand delivery solutions, also experienced a decline, reflecting broader market pressures or company-specific challenges.

Key Financial Figures

• $0.0001 — en Class A ordinary shares, par value US$0.0001 per share QH The Nasdaq Global Mark
• $417.4 million — 02.4 million, and RMB 3,046.9million (US$417.4 million) in 2022, 2023 and 2024, respectively.
• $0.2 million — ly RMB6.0 million and RMB1.6 million (US$0.2 million) in 2023 and 2024, respectively. Exclud
• $387.5 million — 412.8 million and RMB2,828.5 million (US$387.5 million), representing 95.3%, 92.2% and 92.8% o
• $24.0 million — MB233.8 million and RMB175.1 million (US$24.0 million) in 2022, 2023 and 2024, respectively.
• $4.1 million — RMB48.7 million and RMB30.1 million (US$4.1 million) from housekeeping solutions in 2022, 2
• $407.3 million — 535.8 million and RMB2,973.2 million (US$407.3 million) in 2022, 2023 and 2024, respectively.
• $349.5 million — 029.8 million and RMB2,550.8 million (US$349.5 million) in 2022, 2023 and 2024, respectively.
• $13.8 million — MB151.9 million and RMB100.6 million (US$13.8 million) in 2023 and 2024, respectively. Hirin
• $15.7 million — MB118.0 million and RMB114.8 million (US$15.7 million) in 2022, 2023 and 2024, respectively.
• $10.3 million — RMB92.2 million and RMB75.2 million (US$10.3 million) in 2022, 2023 and 2024, respectively.
• $11.8 million — RMB83.4 million and RMB86.0 million (US$11.8 million) in 2022, 2023 and 2024, respectively.
• $0.1 million — , RMB15.1 million and RMB0.7 million (US$0.1 million) in 2022, 2023 and 2024, respectively.
• $2.5 million — RMB13.8 million and RMB18.4 million (US$2.5 million) in 2022, 2023 and 2024, respectively.
• $0.6 million — n, RMB5.2 million and RMB4.1 million (US$0.6 million) in 2022, 2023 and 2024, respectively.

Filing Documents

• qh-20241231x20fa.htm (20-F/A) — 2875KB
• qh-20241231xex12d1.htm (EX-12.1) — 12KB
• qh-20241231xex12d2.htm (EX-12.2) — 13KB
• qh-20241231xex13d1.htm (EX-13.1) — 6KB
• qh-20241231xex13d2.htm (EX-13.2) — 7KB
• qh-20241231xex15d1.htm (EX-15.1) — 3KB
• 0001410578-25-001886.txt ( ) — 14459KB
• qh-20241231.xsd (EX-101.SCH) — 103KB
• qh-20241231_cal.xml (EX-101.CAL) — 83KB
• qh-20241231_def.xml (EX-101.DEF) — 375KB
• qh-20241231_lab.xml (EX-101.LAB) — 666KB
• qh-20241231_pre.xml (EX-101.PRE) — 660KB
• qh-20241231x20fa_htm.xml (XML) — 3229KB

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 1 PART III 17

FINANCIAL STATEMENTS

Item 18. FINANCIAL STATEMENTS 17 i Table of Contents PART I

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion of our financial condition and results of operations is based upon and should be read in conjunction with our consolidated financial statements and related notes included in this annual report. This report contains forward-looking statements. In evaluating our business, you should carefully consider the information provided under the caption " Item 3. Key Information-D. Risk Factors " in this annual report. We caution you that our businesses and financial performance are subject to substantial risks and uncertainties. See " Cautionary Note Regarding Forward-Looking Statements. " A. Operating Results Overview We are a gig economy platform focusing on community-centered services in China. We operate a platform of large, flexible and standardized workforce. We provide tech-enabled, end-to-end operational solutions primarily to consumer service businesses, including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions and other services. We generate revenue primarily from service fees paid by our industry customers, and to a lesser extent, from rental fees under our car leasing agreements with drivers engaged in our ride-hailing solutions. We incur cost from paying service fees to workers engaged in our solutions as independent contractors. Our revenues were approximately RMB3,820.4 million, RMB3,702.4 million, and RMB 3,046.9million (US$417.4 million) in 2022, 2023 and 2024, respectively. We recorded net loss of approximately RMB16.4 million in 2022, and we recorded net income of approximately RMB6.0 million and RMB1.6 million (US$0.2 million) in 2023 and 2024, respectively. Excluding the effect of share-based compensation expenses, we recorded adjusted net income of approximately RMB3.3 million, RMB5.5 million, and RMB1.6 million (US$0.2 million) in 2022, 2023, and 2024 respectively. See "Non-GAAP Financial Measures ." General Factors Af

View Full Filing

View this 20-F/A filing on SEC EDGAR