Quhuo Limited

Good day, and ladies and gentlemen, welcome to Chihuahua's third quarter 2021 earnings conference call. This time, all participants are in the listen-only mode. After the management's prepared remarks, there will be a Q&A session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Mr. Eric Yuwan. Please go ahead.

Okay, thank you, operator. Hello, everyone. Welcome to Qihuo's third quarter 2021 earnings conference call. The company's results were released earlier today and available on our website. On the call today are Leslie Yu, Chairman and CEO, co-founder Barry Ba, and CFO Andrew Ji. Leslie will review business operations and company highlights, followed by Sandra, who will discuss financials and guidance. They will be available to answer your questions in the Q&A session that follows. Before we begin, I would like to remind you that this call may contain forelooking statements made under the safe harbor provisions of the Private Securities Regulation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions, and relate to the events that involve known or unknown risks, uncertainties, and other factors. of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, and achievements to differ materially from those in the forelooking statements. Further information regarding leads and other risks, uncertainties, and factors is included in the company's findings with the U.S. SEC. The company does not undertake any obligation to update any forelooking statement as a result of new information, future events, or otherwise. except as required and lower. With that, I will now turn the call over to our chairman and CEO, Mr. Leslie Yu. Please go ahead, sir.

Thank you, Eric, and thank you all for joining our third quarter 2021 earnings call. We are pleased to report another strong quarter. For Chihuahua, the total revenues grew by 44% year-over-year, reaching IMB $1.1 billion, in line with our prior guidance. All of our three main business lines, on-demand flow delivery, mobility, and housekeeping solutions all enjoyed continued strong demand with our top line growth outpacing that of the industry. Now let me walk you through our key business performance in Q3. First, let's look at our biggest revenue contributor, the on-demand delivery business. Its revenue reached RMB 1.05 billion, up 38% year-over-year, exceeding the RMB 1 billion mark for the first time. For Q3, the aggregate number of delivery orders were 159 million, up 59 year-over-year. This growth rate was clearly faster than the industrial average, showing our ability to quickly gain market share. These impressive results in our on-demand food delivery business were enabled by our strategy to aggressively penetrate into new cities and expand our service network. By Q3, we provided our on-demand delivery services in 1,231 business circles across 87 cities nationwide, compared with 1,067 business circles across 70 cities in the same period in 2020. In addition, we expand our coverage of serving chain merchants directly, including supermarkets and chain restaurants. This so-called new retail business gained strong momentum in Q3. We believe that the COVID-19 containment measures across China served as a positive catalyst for our clients in metro areas to adopt new ways to purchase living necessities. They place orders online and get instant delivery offline. This positions Qi Huo very well in capturing new business opportunities in this burgeoning segment. As evidenced by our community and grocery delivery, enjoying explosive growth in Q3 with revenue up 262% year-over-year. Furthermore, our expanded network is enabling Chihuahua to sustain our leading position on business scale and service quality while also improving our operational efficiencies and cost structure. Moving to our housekeeping solutions business, Q3 revenues increased 538% year-over-year to RMB 21 million, with the GMV of RMB 462 million. We are pleased to announce that our housekeeping solutions has become our second largest business line. For our mobility business, this strategic segment continued its strong growth in Q3. With revenues reaching RMB 34.6 million, up 364, 65% year-over-year, and 35% quarter-over-quarter. Besides share-bike ride-hailing, starting July this year, we launched our free service for industry customers by fulfilling end-to-end intercity and long-distance transportation orders. We believe this is a very promising business with huge market potential. All above reflected our growing brand awareness and resulting in market share gains in this lucrative category. Let me now provide another update on our exciting multi-scenario deployment, which enables gig workers to have multiple jobs on our platform to optimize their overall income. In Q3, the cumulative number of workers who engaged in two or more types of jobs on our platform reached about 22,700, increasing 28% quarter over quarter. Female workers accounted for 16% of the total group, increasing from 10% in the previous quarter. For riders with an average monthly income of at least 5,000 RMB, they represented more than 54,000 workers, accounting for 51% of the total group, flat with the previous quarter. In Q3, we would like also to highlight the importance of our aggressive investment in Chihuahua's technology platform. reflected by the doubling of our IND research and development expenses from a year ago. We believe these expenditures will enhance our competitiveness by improving operational efficiency and service quality while expanding our services to more sectors. A clear illustration of our progress on the technology front is the rollout this quarter of our new LEDFIX platform. including a new family-oriented housekeeping services. Our goal is to extend our world-class housekeeping services capabilities from hotels and restaurants directly to homes and communities, the market size of which is expanded to reach the trillion RMB level. The LEDFIX platform integrates intelligent inspection, robots, and sensors to monitor water and electricity consumption, which can effectively reduce labor costs for property management and improve efficiency and service quality. With the adoption of this smart system by more property management companies, we will set up service stations near communities. and fully utilize resources of workers at hotels and property management companies within five kilometers of service stations. Meanwhile, through cooperation with more property management companies, we can also mobilize our existing housekeeping workforce and our infrastructures to engage in the community housekeeping services, creating our win-win solutions for our parties. Finally, let me talk about our continued efforts in driving profitability in Q3. In spite of the operating constraints from the stringent COVID-19 content measures and with heightened competition, we were still able to achieve RMB 19 million net income result in Q3, compared with the net loss of RMB 10 million in the same period last year. Adjusted net income for Q3 was RMB 28 million. The results reflected our commitment to sustainable profitability as we continued to advance our lucrative business model. This concludes my prepared remarks. I will now turn the call over to our CFO, Sandra, who will discuss our financial results for the third quarter. Thank you.