Quhuo Limited announced that its American Depositary Shares will be re‑structured from one ADS representing 900 Class A ordinary shares to one ADS representing 27,000 Class A ordinary shares, a 1‑for‑30 reverse split that will take effect on April 27, 2026.
The move follows a series of prior reverse splits—1‑for‑90 on August 25, 2025 and 1‑for‑100 on August 12, 2022—made to keep the share price above Nasdaq’s $0.10 minimum. A staff delisting determination issued in March 2026 and a scheduled trading suspension on April 6, 2026 underscore the urgency of the action.
Financially, Quhuo posted a net loss of RMB 150.5 million for 2025, a sharp reversal from the RMB 1.6 million profit reported in 2024. Total revenue fell 17.1% to RMB 2,525.9 million, driven by a decline in on‑demand food delivery while the housekeeping and accommodation segment grew 75.9% year‑over‑year. The company’s gross margin collapsed to 2.4%, reflecting intense pricing pressure and high operating costs.
Management emphasized that the company is focused on optimizing its business structure and upgrading its capabilities. CEO Leslie Yu noted that “Throughout 2025, amid a continuously evolving operating environment, Quhuo remained focused on optimizing its business structure and upgrading its capabilities. We made solid progress in cultivating emerging businesses, adjusting our core operations, and advancing…” The statement signals a strategic pivot toward emerging segments while tightening core operations.
In February 2026, Quhuo also called an extraordinary general meeting to overhaul its capital structure, including terminating its ADR program and proposing a 32,000‑to‑1 consolidation of all share classes. The reverse split is part of this broader restructuring effort aimed at improving liquidity and meeting listing requirements.
The combination of a significant net loss, declining revenue, and a series of reverse splits signals ongoing financial distress. The company’s efforts to consolidate shares and streamline operations are intended to stabilize the share price and avoid delisting, but the underlying profitability challenges remain a key concern for stakeholders.
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