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BEIJING - Quhuo Limited (NASDAQ:QH), a tech-enabled service platform with a market capitalization of $121 million, announced Monday a strategic partnership with NIU World to establish a chain brand incubation platform focused on fresh beef in China. The announcement comes as the stock has experienced a 14% decline over the past week, according to InvestingPro data.
The collaboration aims to create a vertically integrated supply chain ecosystem from slaughterhouses to end-user dining and retail channels, according to a company press release. This strategic move comes as Quhuo manages annual revenues of $417 million with a modest gross profit margin of 2.42%.
The partnership combines NIU World’s industry chain capabilities in cattle farming, slaughtering, and processing with Quhuo’s on-demand food delivery network. The joint venture will provide comprehensive support to brands with significant fresh beef procurement capacity and proven profitability models.
The initiative is led by Du Xin, who has experience in brand incubation. The project reportedly achieved over RMB 20 million in sales within its first month of launch.
The platform has already secured cooperation with brands such as Zhuang Popo Chinese Fresh Claypot and Qingshan Ingredient Store, providing fresh beef experiences to local markets.
"This strategic collaboration with NIU World marks a significant milestone in Quhuo’s expansion into the ’Fresh Beef + New Chain Brands’ sector," said Leslie Yu, Founder, Chairman, and Chief Executive Officer of Quhuo.
The partnership will leverage supply chain financial solutions to help NIU World expand procurement scale and slaughtering capacity, while reducing costs and improving supply chain flexibility.
Quhuo Limited provides tech-enabled service platforms focusing on local life services in China, including on-demand delivery solutions, mobility service solutions, and housekeeping services. InvestingPro analysis suggests the stock is currently trading slightly below its Fair Value, with 10+ additional ProTips available to subscribers. Get comprehensive insights and detailed analysis through InvestingPro’s exclusive Research Reports, covering over 1,400 US stocks including QH.
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