Quhuo Limited Announces ADS Ratio Change for August 25, 2025

Quhuo Limited announces a change in its American Depositary Shares (ADSs) to Class A ordinary shares ratio from 1:10 to 1:900, effective August 25, 2025. This adjustment aims to increase the ADS trading price and enhance the company's market positioning. The move is expected to proportionally increase the ADS trading price, with no impact on an ADS holder's equity interest.

Beijing, Aug. 20, 2025 — Quhuo Limited (NASDAQ: QH), a leading workforce operational solutions platform in China, has announced a significant change to its American Depositary Shares (ADSs) to Class A ordinary shares ratio. The company will adjust the ratio from 1 ADS representing 10 Class A ordinary shares to 1 ADS representing 900 Class A ordinary shares, effective August 25, 2025 [2].

The change, which is expected to take effect after regulatory approval, will have the same effect as a 1-for-90 reverse ADS split. ADS holders will be required to surrender and exchange every 90 existing ADSs for one new ADS. Deutsche Bank Trust Company Americas, the depositary bank for Quhuo’s ADS program, will manage the exchange process [2].

Quhuo anticipates that the ADS trading price will increase proportionally following the ratio change. However, the company cannot guarantee that the new trading price will equal or exceed 90 times the previous trading price [2].

This ADS ratio change is part of Quhuo’s broader strategy to enhance its market positioning and potentially increase the ADS trading price. The company has been facing operational challenges and significant volatility in its stock price, declining over 92% in the past six months [1]. The change aims to address these challenges and improve investor perception.

In addition to the ADS ratio change, Quhuo recently announced a strategic partnership with NIU World to establish a chain brand incubation platform focused on fresh beef in China. This move is part of Quhuo’s efforts to diversify its business operations and expand its market presence [1].

Quhuo Limited provides technology-enabled operational solutions to consumer service businesses in China, primarily in sectors with significant e-commerce exposure including food delivery, mobility services, housekeeping, and accommodation. The company maintains a current ratio of 1.4, though concerns have been raised about cash burn rates and weak gross profit margins of 2.42% [1].

References:
[1] https://za.investing.com/news/company-news/quhuo-to-implement-1for90-ads-ratio-change-93CH-3849342
[2] https://www.marketscreener.com/news/quhuo-announces-plan-to-implement-ads-ratio-change-ce7c51d2d180f420