Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2021

Commission File Number 001- 39354

 

 

Quhuo Limited

(Exact name of registrant as specified in its charter)

 

 

3rd Floor, Block D, Tonghui Building

No. 1132 Huihe South Street, Chaoyang District

Beijing, People’s Republic of China

(+86-10) 5338 4963

(Address of principal executive office)

 

 

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.

 

 

 


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: August 25, 2021                                                              By:  

/s/ Leslie Yu

      Name:  Leslie Yu
      Title:    Chairman and Chief Executive Officer


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press release
EX-99.1

Exhibit 99.1

Quhuo Announces Second Quarter 2021 Unaudited Financial Results

BEIJING, China, August 25, 2021 — Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading tech-enabled workforce operational solution platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2021.

Financial and Operational Highlights for the Second Quarter of 2021

 

 

Total revenues were RMB991.8 million (US$153.6 million), representing an 81.1% year-over-year increase.

 

 

Revenues from on-demand delivery solutions increased 74.1% year-over-year.

 

 

Revenues from mobility service solutions, consisting of shared-bike maintenance and ride hailing solutions, increased 336.9% year-over-year.

 

 

Revenues from housekeeping and accommodation solutions increased 56 times year-over-year and 67.2% quarter-over-quarter.

 

 

General and administrative expenses (excluding share-based compensation expenses), as a percentage of revenues, declined to 4.1% from 5.1% in the second quarter of 2020.

 

 

Adjusted EBITDA was RMB29.1 million (US$4.5 million), representing a significant improvement from adjusted EBITDA loss of RMB78.5 million in the first quarter of 2021.

 

 

Adjusted net income was RMB9.9 million (US$1.5 million), representing a significant improvement from adjusted net loss of RMB79.3 million in the first quarter of 2021.

 

 

The number of average monthly delivery orders was 45.0 million, representing an 85.2% year-over-year increase.

 

 

We provided services in 1,205 business circles across 139 cities nationwide in the second quarter of 2021, compared with 952 business circles across 75 cities in the same period in 2020.

Comment from Leslie Yu, Chairman and Chief Executive Officer of QUHUO: “We are pleased to report another strong quarter as total revenues grew by 81% year-over-year and almost reached milestone of RMB1 billion, thanks to strong demand for our services and our large workforce networks across the country. All three of our main business lines — on-demand delivery solutions, mobility service solutions, and housekeeping and accommodation solutions — cover the needs of people’s daily necessities, and saw robust growth momentum in the second quarter. At the same time, we achieved adjusted net income of RMB9.9 million, a significant improvement from the first quarter. These results reflect the economy of scale of our business model and strong execution of our multi-scenario deployment strategy. Looking ahead, we are strongly motivated by the tremendous growth opportunities as we rapidly scale our platform to meet growing demand in various service areas. We are fully committed to delivering long-term value and profitable growth for our shareholders.”


Unaudited Second Quarter 2021 Financial Results

Total revenues were RMB991.8 million (US$153.6 million), representing an increase of 81.1% year-over-year, primarily due to the rapid growth of our major business lines.

 

   

Revenues from on-demand delivery solutions were RMB942.2 million (US$145.9 million), representing an increase of 74.1% from RMB541.3 million in the second quarter of 2020, primarily due to the increase in delivery orders fulfilled as a result of the industry growth in the aftermath of COVID-19 and our continued penetration and expansion into new geographical markets.

 

   

Revenues from mobility service solutions, consisting of shared-bike maintenance and ride hailing solutions, were RMB25.7 million (US$4.0 million), representing an increase of 336.9% from RMB5.9 million in the second quarter of 2020, primarily due to our enlarged customer base and service scope in shared-bike maintenance solutions and the increase in the numbers of ride-hailing drivers on our platform.

 

   

Revenues from housekeeping and accommodation solutions were RMB21.8 million (US$3.4 million), representing a significant increase from RMB0.4 million in the second quarter of 2020. This was primarily due to our enlarged customer base for provision of housekeeping and accommodation solutions, including hotels and B&Bs, as part of the network synergy we achieved following the acquisition of Lailai and Chengtu Home.

Cost of revenues was RMB920.0 million (US$142.5 million), representing an increase of 88.8% year-over-year, primarily attributable to increased labor cost in line with our continuing business expansion.

General and administrative expenses were RMB84.7 million (US$13.1 million), representing an increase of 187.2% from RMB29.5 million in the second quarter of 2020. The increase was primarily due to the increases in (1) share-based compensation expenses from RMB 1.3 million in the second quarter of 2020 to RMB 44.4 million in the second quarter of 2021, and (2) professional service expenses. Excluding share-based compensation expenses, general and administrative expenses increased by 42.9% year-over-year and, as a percentage of revenues, declined to 4.1% from 5.1% in the second quarter of 2020.

Research and development expenses were RMB4.5 million (US$692,000), representing an increase of 63.6% from RMB2.7 million in the second quarter of 2020, primarily due to the increase in compensation for research and development personnel.

Operating loss was RMB14.7 million (US$2.3 million), compared to operating profit of RMB29.6 million in the second quarter of 2020. Excluding share-based compensation expenses, the adjusted operating profit was RMB29.7 million, compared to RMB30.9 million in the second quarter of 2020.


We recorded other loss, net, of RMB7.0 million (US$1.1 million), compared to other income, net, of RMB3.6 million in the second quarter of 2020, primarily due to the decrease in fair value change of investment in a mutual fund.

Income tax expense was RMB11.2 million (US$ 1.7 million), which remained relatively stable as compared to RMB11.5 million in the second quarter of 2020.

Net loss attributable to Quhuo Limited was RMB31.0 million (US$4.8 million), compared to net income of RMB20.7 million in the second quarter of 2020.

Adjusted EBITDA was RMB29.1 million (US$4.5 million), compared to adjusted EBITDA of RMB40.3 million in the second quarter of 2020.(1)

Adjusted net income was RMB9.9 million (US$1.5 million), compared to adjusted net income of RMB21.0 million in the second quarter of 2020.(1)

 

(1)

See “Use of Non-GAAP Financial Measures.”

Balance Sheet

As of June 30, 2021, the Company had cash, short-term investments and restricted cash of RMB248.6 million (US$38.5 million) and short-term debt of RMB141.6 million (US$21.9 million).

Financial outlook

For the third quarter of 2021, the Company expects total revenues to be in the range of RMB1,100 million to RMB1,200 million, representing an increase of 43% to 56% year-over-year.

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions, which is subject to change.

CONFERENCE CALL

Quhuo will hold a conference call on Wednesday, August 25, 2021 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.

Participant can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/3734964. 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 2, 2021 (9:59 p.m. Beijing/Hong Kong time on the same day):

 

United States:    +1-646-254-3697
International:    +61-2-8199-0299
China Domestic:    400-6322-162
Hong Kong:    +852-3051-2780
Conference ID:    3734964#

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 future 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 measure of performance 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 income (loss) to adjusted net income and adjusted EBITDA, respectively.


QUHUO LIMITED

Reconciliation of GAAP and Non-GAAP Results

 

     For the Three Months Ended     For the Six Months Ended  
     June 30, 2020     June 30, 2021     June 30, 2021     June 30, 2020     June 30, 2021     June 30, 2021  
     (RMB)     (RMB)     (US$)     (RMB)     (RMB)     (US$)  

Net income/(loss)

     19,680       (34,452     (5,335     (1,899     (119,557     (18,519

Less: Share-based Compensation

     (1,290     (44,401     (6,877     (2,580     (50,252     (7,783

Adjusted net income/(loss)

     20,970       9,949       1,542       681       (69,305     (10,736
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Income tax expense

     (11,518     (11,201     (1,735     (14,436     (3,854     (597

Depreciation

     (2,640     (1,992     (309     (4,113     (3,818     (591

Amortization

     (2,977     (4,257     (659     (6,033     (9,127     (1,414

Interest expense

     (2,223     (1,710     (265     (4,663     (3,097     (480

Adjusted EBITDA

     40,328       29,109       4,510       29,926       (49,409     (7,654
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


EXCHANGE RATE INFORMATION

This press release contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.4566 to US$1.00, the rate in effect as of June 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

SAFE HARBOR STATEMENT

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, as well as the length and severity of the recent COVID-19 outbreak and its impact on Quhuo’s business and industry. 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 final prospectus related to the IPO filed with the SEC on July 10, 2020 and 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.

ABOUT QUHUO LIMITED

Quhuo Limited (NASDAQ: QH) is a leading workforce operational solution platform in China. Quhuo provides tech-enabled, end-to-end operational solutions to blue-chip on-demand consumer service businesses in industries with significant e-commerce exposure, primarily including on-demand delivery, mobility services, housekeeping and accommodation. Quhuo’s platform helps its industry customers mobilize a large team of workers and utilizes a combination of training, performance monitoring and refinement, and incentives to transform them into skilled workers who can follow industry-specific, standardized and highly efficient service procedures. Within the on-demand consumer service ecosystem, the Company plays a unique and indispensable role as the link between consumer service businesses and the end consumers to enable the delivery of goods, services and experiences to consumers.


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

CONTACTS:

Investor Relations

Quhuo Limited

Annia Sun

E-mail: ir@meishisong.cn

Christensen

In China

Mr. Eric Yuan

Phone: +86-13801110739

E-mail: Eyuan@christensenir.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

E-mail: lbergkamp@christensenir.com


QUHUO LIMITED

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, 2020      As of June 30, 2021      As of June 30, 2021  
     (RMB)      (RMB)      (US$)  

Assets

        

Current assets

        

Cash

     97,807      67,305      10,424

Restricted cash

     5,948      7,802      1,208

Short-term investments

     201,578      173,500      26,872

Accounts receivable, net

     381,248      430,510      66,678

Prepayments and other current assets

     45,462      48,939      7,580

Amounts due from related parties

     2,940      —        —  
  

 

 

    

 

 

    

 

 

 

Total current assets

     734,983        728,056        112,762  
  

 

 

    

 

 

    

 

 

 

Property and equipment, net

     23,390      25,963      4,021

Intangible assets, net

     111,990      128,743      19,940

Long-term investments

     1,065      1,065      165

Right-of-use assets, net

     32,534      7,933      1,229

Goodwill

     118,724      118,724      18,388

Deferred tax assets

     2,370      7,786      1,206

Other non-current assets

     105,501      133,622      20,694
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     395,574        423,836        65,643  
  

 

 

    

 

 

    

 

 

 

Total assets

     1,130,557        1,151,892        178,405  
  

 

 

    

 

 

    

 

 

 

Liabilities, non-controlling interests and shareholders’ equity

        

Current liabilities

        

Accounts payables

     268,939      289,369      44,818

Short-term lease liabilities

     17,707      5,025      778

Accrued expenses and other current liabilities

     105,744      136,104      21,079

Short-term debt

     73,837      141,563      21,925
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     466,227        572,061        88,600  
  

 

 

    

 

 

    

 

 

 

Deferred tax liabilities

     727      —        —  

Long-term debt

     5,135      1,762      273

Long-term lease liabilities

     14,623      1,980      307

Other non-current liabilities

     41,014      44,786      6,936
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     61,499        48,528        7,516  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     527,726        620,589        96,116  
  

 

 

    

 

 

    

 

 

 


QUHUO LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

     As of December 31, 2020     As of June 30, 2021     As of June 30, 2021  
     (RMB)     (RMB)     (US$)  

Shareholders’ equity

      

Ordinary shares

     36     36     6

Additional paid-in capital

     1,779,923     1,830,458     283,502

Accumulated deficit

     (1,208,827     (1,320,304     (204,489

Accumulated other comprehensive income

     (14,843     (16,623     (2,575
  

 

 

   

 

 

   

 

 

 

Total Quhuo Limited shareholders’ equity

     556,289       493,567       76,444  
  

 

 

   

 

 

   

 

 

 

Non-controlling interests

     46,542     37,736     5,845
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     602,831       531,303       82,289  
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     1,130,557       1,151,892       178,405  
  

 

 

   

 

 

   

 

 

 


QUHUO LIMITED

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 Three Months Ended     For the Six Months Ended  
     June 30,
2020
    June 30,
2021
    June 30,
2021
    June 30,
2020
    June 30,
2021
    June 30,
2021
 
     (RMB)     (RMB)     (US$)     (RMB)     (RMB)     (US$)  

Revenues

     547,577       991,830       153,615       940,195       1,838,326       284,720  

Cost of revenues

     (487,224     (920,017     (142,492     (868,700     (1,788,774     (277,046

General and administrative

     (29,487     (84,692     (13,117     (57,014     (128,903     (19,965

Research and development

     (2,732     (4,470     (692     (5,317     (9,181     (1,422

Gains on disposal of intangible assets, net

     1,437       2,616       405       1,292       2,972       460  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

     29,571       (14,733     (2,281     10,456       (85,560     (13,253

Interest income

     254       207       32       515       377       58  

Interest expense

     (2,223     (1,710     (265     (4,663     (3,097     (480

Other income/(loss), net

     3,601       (7,015     (1,086     6,930       (27,375     (4,240

Foreign exchange loss

     (5     —         —         (701     (48     (7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income/(Loss) before income tax

     31,198       (23,251     (3,600     12,537       (115,703     (17,922

Income tax expense

     (11,518     (11,201     (1,735     (14,436     (3,854     (597
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

     19,680       (34,452     (5,335     (1,899     (119,557     (18,519

Net loss attributable to non-controlling interests

     980       3,502       542       2,956       8,080       1,251  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) attributable to ordinary shareholders of Quhuo limited

     20,660       (30,950     (4,793     1,057       (111,477     (17,268
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Financial Data

            

Adjusted net income/(loss)

     20,970       9,949       1,542       681       (69,305     (10,736
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     40,328       29,109       4,510       29,926       (49,409     (7,654
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings/(Loss) per share

            

Basic

     0.53       (0.71     (0.11     0.03       (2.56     (0.40

Diluted

     0.53       (0.71     (0.11     0.03       (2.56     (0.40

Net income/(loss) used in basic and diluted earnings/ (loss) per share calculation

     20,660       (30,950     (4,793     1,057       (111,477     (17,268

Weighted average number of ordinary shares used in earnings/(loss) per share computation:

            

Basic

     14,972,760       43,631,893       43,631,893       14,972,760       43,467,334       43,467,334  

Diluted

     39,103,860       43,631,893       43,631,893       39,103,860       43,467,334       43,467,334