Quhuo’s Housekeeping and Accommodation Businesses Drive Major Growth: Revenue Soars 70.8%, Chengtu Gross Margin Reaches 55.2%
New Business Mix Powers Profitable Expansion in Challenging Market
Despite facing stiff competition and operational headwinds in China’s gig economy, Quhuo Limited (NASDAQ: QH) reported standout results for the six months ending June 30, 2025. The most compelling story from Quhuo’s latest release is a pronounced shift in earnings composition: its housekeeping and accommodation solutions delivered revenue growth of 70.8% year over year, outpacing its core on-demand delivery business.
Housekeeping and Accommodation Solutions Deliver Record Profitability
The twin engines behind Quhuo’s success this period are Chengtu and Lailai. Chengtu, the company’s homestay platform, saw an 83.6% surge in revenue and an astonishing 390.8% leap in gross profit. That resulted in a gross margin of 55.2%, marking a substantial efficiency gain for the group. Meanwhile, Lailai’s integration of cleaning, repair, and housekeeping drove a 63.6% increase in revenue, broadening service coverage and deepening Quhuo’s relationships with leading real estate partners.
| Segment | Year-Over-Year Revenue Growth (%) | Year-Over-Year Gross Profit Growth (%) | Gross Margin (%) |
|---|---|---|---|
| Housekeeping & Accommodation | 70.8 | 63.4 | — |
| Chengtu (Homestay) | 83.6 | 390.8 | 55.2 |
| Lailai (Hotel/Home Services) | 63.6 | — | — |
Management credits these gains to a scalable operating model and proprietary technology, such as Chengtu’s mini program and Lailai’s digital dispatch platform, enabling both expansion and improved service delivery. With coverage in cities like Chengdu, Beijing, and Shanghai—and ambitions for new markets like Shenzhen and Guangzhou—these divisions are now pivotal to Quhuo’s strategy.
Delivery Solutions Remain Challenged, But Market Share May Be Growing
In on-demand delivery, the company navigated heightened competitive pressures and increased costs as strategic realignments by major clients shifted the industry landscape. Still, Quhuo managed to secure new business and gain market share versus key competitors since May 2025, setting a possible stage for second-half margin improvements. Leadership expects the exit from underperforming sites and consolidation in higher-revenue locations to help operational profitability materialize later this year.
New Partnerships Open Doors for Additional Revenue Streams
Quhuo’s strategic alliances also show momentum: a fresh deal with JD.com brings on-demand delivery to new cities, while the beef supply chain initiative with NIU World generated RMB14.4 million in revenue within its first months. These efforts mark Quhuo’s evolution beyond delivery into broader local life and supply chain enablement.
Management Outlook Focuses on Sustainable and Scalable Growth
Looking forward, Quhuo is committed to driving long-term shareholder value by executing a dual-track strategy: further optimizing its delivery solutions and accelerating the expansion of higher-margin businesses. Efficiency, innovation, and geographic reach are key priorities as the company aims for sustainable, profitable growth despite continued industry headwinds.
Key Takeaway for Investors
The narrative at Quhuo is rapidly changing—what began as an on-demand delivery story is now driven by high-growth, profitable segments in housekeeping and accommodation. Investors and observers should keep an eye on the continued ramp-up of these divisions, execution of new business initiatives, and management’s ability to realize economies of scale in core operations as 2025 unfolds.
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