BEIJING - Quhuo Limited (NASDAQ:QH), a major player in China's gig economy, announced today that it has met the necessary conditions for continued listing on the Nasdaq Stock Market. The company has achieved compliance with the market value and minimum bid price requirements set by Nasdaq, according to a notification from the exchange.
The Nasdaq Listing Rule 5450(b)(1)(C) stipulates that companies must maintain a minimum market value of publicly held shares, while the Nasdaq Listing Rule 5450(a)(1) requires a minimum bid price. Quhuo has satisfied both of these requirements, ensuring its shares will remain listed on the Nasdaq.
Quhuo operates a gig economy platform that serves various local life services in China. The company uses its proprietary technology infrastructure, Quhuo+, to connect workers with service providers, offering solutions tailored to different industry needs. These solutions encompass on-demand delivery, mobility, housekeeping, accommodation, and other services to meet the demands of numerous families within the community.
The company's mission extends beyond service provision to include the promotion of employment, income stability, and entrepreneurship. Quhuo is committed to creating job opportunities, offering vocational training, and ensuring the safety and security of its workers. This approach is designed to support workers in their career development and personal growth.
This announcement is based on a press release statement from Quhuo Limited and confirms the company's current status in relation to Nasdaq's continued listing standards.
In other recent news, Quhuo, a diversified service provider, reported a mixed financial performance for the first half of 2024. The company's Mobility Services segment saw significant growth, with revenue surging by 71.7% year-over-year, bolstered by a 389% increase in revenue from international vehicle export solutions. However, Quhuo's overall revenue experienced a decline, down by 6.7% to RMB 1.62 billion, and a net loss of RMB 46.5 million was reported. These are recent developments in the company's financial status.
Despite these challenges, Quhuo has plans to redefine and innovate its overseas business model to foster faster growth and solidify its international market position in the latter half of the year. The company aims to leverage its experience in vehicle exports and ride-hailing solutions to grow Quhuo International. Quhuo is navigating a period of transition with a focus on achieving scale growth and expansion in the international market. Despite the current financial losses, the company's strategic adjustments and growth in key segments suggest a commitment to long-term growth and market adaptation.
InvestingPro Insights
Quhuo Limited's recent compliance with Nasdaq listing requirements comes amid a period of significant stock performance. According to InvestingPro data, QH has seen a remarkable 241.19% price total return over the past three months, and a 168.55% return over the last six months. This surge in stock price aligns with the company's efforts to meet Nasdaq's minimum bid price requirement.
Despite these positive stock movements, InvestingPro Tips reveal that Quhuo "suffers from weak gross profit margins." This is reflected in the company's gross profit margin of just 3.47% for the last twelve months as of Q2 2024. Additionally, the tip indicating that Quhuo is "not profitable over the last twelve months" is supported by the negative operating income of -$8.22 million for the same period.
It's worth noting that while Quhuo has successfully maintained its Nasdaq listing, the company faces challenges in its financial performance. The InvestingPro Tip suggesting that the stock "generally trades with high price volatility" could be particularly relevant for investors considering the recent price movements.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Quhuo, providing a more comprehensive view of the company's financial health and market position.
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