Ladies and gentlemen, thank you for standing by, and welcome to the Quhuo first half year of 2023 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objection, you may disconnect at this time. I would now like to turn the call over to Miss Qishu Wang. Please go ahead, Qishu.
Thank you, operator. Hello, everyone. Welcome to Quhuo's first half of 2023 earnings call, conference call. The company's results were released earlier today and are available on our IR website. On the call today are Leslie Yu, Chairman and CEO, CFO, Zhen Ba. Leslie will review business operations and the company highlights, followed by Zhen Ba, who will discuss financials and guidance. They will be available to answer your questions in the Q&A session that follows. Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based on management's current expectations and the current market and operating conditions, and relate to the events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of a new information, future events, or otherwise, except as required under the law. With that, I will now turn the call over to our Chairman and CEO, Mr. Leslie Yu. Please go ahead.
Thank you, Qishu. Thank you all for joining our first half of 2023 earnings conference call. Following the increasing value first and improving profitability later, starting in 2022, Quhuo continued to enhance profitability and optimize costs in the first half year of 2023. Meanwhile, based on our mobility service solutions, we have embarked on the creation of a second growth trajectory for our business, which has yielded significant achievements. All these current domestic income conditions, Quhuo achieved a marked improvement in its financial results during the first half of 2023. Generally speaking, in the first half of 2023, Quhuo achieved a 78.6% year-on-year decrease in net losses and an 87% decrease in adjusted net losses. Adjusted EBIT also increased by 2.8%, reaching CNY 11.1 million.
First, the mobility service solutions and housekeeping services have delivered satisfactory results. Furthermore, we made progress in cost and expense control through technology optimization. In the first half of 2023, overall operating costs decreased by 5.7% year-on-year. Generally, administrative expenses decreased by 18% to CNY 80.1 million, and the research and development expenses decreased by 7.2% to CNY 6.6 million. Considering the current economic condition in the domestic market, we also managed asset liability allocation, resulting in an increase in interest income from CNY 191 thousand in the first half of 2022, to CNY 742 thousand.
Interest expenses also decreased by 38.6% from CNY 3.8 million in the first half of 2022, to CNY 2.3 million in the first half of 2023. As you may know, our on-demand delivery solutions and mobility service solutions are mainly well-known consumer service platforms, such as Meituan, Ele.me, DiDi, and major chain restaurants like KFC, McDonald's, and Luckin Coffee. Through platform fulfillment services, Quhuo offers clients streamlined management operations and standardized service products while charging service fees for order fulfillment. In the first half of 2023, the service revenue from on-demand delivery and mobility solutions, excluding vehicle export solutions, amounted to CNY 1.7 billion. Our housekeeping and accommodation services are provided on the SaaS platform service model.
The SaaS platform service model primarily offer a comprehensive solution for housekeeping and accommodation and other community service providers, encompassing services such as online chatting, orders, payment, and customer support. Additionally, we provide value-added services like human resource management, financial management, and data analysis, helping service providers enhance management efficiency and decision-making capabilities. T hereby improving service quality and user satisfaction, leading to increased revenue. Meanwhile, the primary source of revenue for SaaS PaaS service product is the commission collected from partners based on the GMV charges through our platform. In the first half of 2023, the revenue from housekeeping and accommodation solutions and other services amounted to CNY 28.2 million. In the first half of 2023, we actively expanded the second growth curve. In February, Quhuo officially launched an international business on the Quhuo International.
After preparation in March and April, we officially launched the vehicle export solutions in May. As of now, the results have been significant. With cooperation intentions reached for over 3,000 units, the contracts of 1,720 units had been signed, and more than 200 units delivered. In May alone, the service generated revenue of CNY 11.98 million, and achieved profitability. The remaining service contracts that have been signed but not yet fulfilled, are expected to continue bringing financial returns to the company in the second half of the year. Quhuo International will continue to increase investment in this business, gradually building a network of automotive dealership in 58 countries and regions around the world, including Jordan and the United Arab Emirates.
According to the media report, the total volume of China's used car exports in 2021 was approximately 15,000 vehicles. Within just one month of Quhuo's vehicle export solutions going live, the volume of signed contracts already accounted for 20% of the total export for the entire year of 2021. The report indicates that China's used car exports are expected to exceed 100,000 vehicles in 2023, with a predominant focus on electric vehicle exports. This is set to provide Quhuo internationalization efforts with an even greater room for extensive development. We believe that the achievements Quhuo has made in the vehicle export solutions are partly attributed to China's domestic vehicle scrapping policies and the rapid growth of the electric vehicle industry. However, even more crucial is Quhuo's extensive data and operational experience in the ride-hailing services.
The business team of Quhuo's mobility service solutions has been deeply rooted in the ride-hailing service for over five years, and possess more than two decades of experience and resources in the automotive export field. Currently, Quhuo has become one of the key partners of China's largest ride-hailing platform, DiDi. All the above allow our business team of Quhuo's mobility service solutions to connect with various large and medium-sized automotive manufacturers, dealerships, and the second-hand car market, allowing us to swiftly access information on vehicles for sale, and establish close relationships with relevant entities. Our close collaboration with overseas dealers has led to robust communication and cooperation ties. This formidable network of partnerships has laid a strong foundation for Quhuo's international expansion, enabling us to seize an early presence in overseas markets.
Leveraging our mature ride-hailing business line, operational experience, accumulated vast data, and diversified vehicle resources, we achieved profitability within just one month of launching this service. In future, Quhuo will leverage its second-hand car repair capabilities for streamlined operations. Currently, the overseas expansion of used cars is on a fast track of development. Electric vehicles are the main source driving China's used car export, accounting for about 70%. In addition to serving ride-hailing drivers and providing these on used car sales, Quhuo possess robust car repair capabilities. While offering ride-hailing solutions, the company has accumulated significant resources for vehicle maintenance and repair, creating a unique network of vehicle repair resources. Relying on Quhuo International's long-standing network of overseas dealership and the increasing volume of used car domestically, Quhuo will continue to build its core advantage in optimizing used car repair.
By establishing and collaborating on repair centers nationwide, Quhuo aims to enhance efficiency through standardized process, create international used car specification standards, and optimize the environment for international used car transitions. For instance, setting up a refurbishment centers at vehicle source locations, completing used car repairs and condition upgrading, and ensure vehicles are shipped on the same day when they reach the port to reduce logistic costs. Through innovative transition models of domestic operations plus international export, Quhuo International will become the company's second growth wave and explore entirely new realms of development, which will boost the company's revenue and profitability, providing a broader scope for growth. Moreover, it will offer various industrial stakeholders more business opportunities and avenues for collaboration.
It will not only foster the development of international automotive trade and brings forth opportunities arising from the booming electric vehicle industries to overseas countries and regions, but also actively assume a positive corporate social responsibility in global energy conservation and emissions reduction. We are confident that the Quhuo International is offering a more diversified range of products and services to our clients, catering to the varied needs of different regions and markets. This will create additional revenue streams for us, propel overall company growth, and unlock substantial business opportunities and growth potential. This concludes my statement. I will now turn the call over to our CFO, who will discuss our financial results for the first half of 2023.
Thanks, Leslie. Hello, everyone. Welcome to Quhuo first half year of 2023 conference call. Please be reminded all amounts for the year will be CNY unless stated otherwise. The first half year of 2023, total revenue is CNY 1,736.3 million, compared with total revenue of CNY 1,863.8 million in the first half year of 2022. As further breakdown, revenue from on-demand delivery solutions were CNY 1,649.6 million, representing a decrease of 6.5% from CNY 1,763.3 million in the first half year of 2022.
Primarily because we enjoyed more preferential policy during the first year of 2022, amid the COVID-19 pandemic, which was significantly reduced in the six months ended June 30, 2023, following the relief of the pandemic. Revenue from mobility service solutions consisting of shared bike maintenance, ride-hailing service solutions, and the newly launched vehicle export solutions were CNY 58.5 million, representing an increase of 3.6% from CNY 56.5 million in the six months ended June 30, 2022. Primarily due to two major points. One is the commencement of the vehicle export solutions, which generated the revenue of CNY 12 million. And second, our enlarged customer base and the service scope for ride-hailing solution service.
Revenue for housekeeping and accommodation solutions and other service are CNY 28.2 million, representing a decrease of 35.2% of CNY 43.5 million in the first six months, ending June 30, 2022. Primarily due to the transaction of the business model in hotel and accommodation service. Overall, Quhuo realized a number of financial data improvements amidst the current economic conditions in domestic market. Cost of revenue was CNY 1,669.5 million, representing a decrease of 5.7% year-over-year. Primarily attribute to the decrease of our labor cost, decrease in our labor cost and the hiring expenses.
Our G&A expenses were CNY 81.6 million, representing a decrease of 18% from CNY 99.5 million in the six months ended June 30, 2022. Primarily due to the decrease in three major points, one, the share-based compensation expense has decreased from CNY 12.5 million in the first half of 2022, down to CNY 3.9 million in the first half of 2023. And the second, the welfare and business development expense and office expense has decreased from CNY 29.5 million in the first half of 2022, down to CNY 17.3 million in the first half of 2023.
Our R&D expense were CNY 6.6 million, representing a decrease of 7.2% from CNY 7.2 million in the six months ended June 30, 2022. Primarily due to the decrease in the average compensation level for our R&D personnel has restructured and as a restructured result of our R&D team. Other income was CNY 6 million compared to the losses of CNY 8.3 million in the first half of 2022, primarily due to increase in our fair value change on investments in the mutual fund. The income tax benefit was CNY 2.4 million as compared to income tax expense of CNY 6.7 million in first year of 2022, primarily due to the increase in our deferred tax asset benefit.
Net loss attributed to Quhuo Limited was CNY 9.6 million, as compared to CNY 25 million in the first half of 2022. Adjusted net loss was CNY 1.8 million, as compared to adjusted net loss of CNY 14.1 million in the first half of 2022. Our adjusted EBITDA was CNY 11.1 million, as compared to adjusted EBITDA of CNY 10.8 million in the first half of 2022. In terms of the balance sheet, as of June 30, 2023, the company has cash, short-term investment, and restricted cash of about CNY 178.2 million and short-term debt of CNY 95.7 million. This concludes my prepared remarks. Thank you for your attention.
We are now pleased to answer your questions. Operator, please go ahead.
Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, you will need to press star then two. If you are on a speakerphone, please pick up the handset to ask your question. Once again, that was star then one on your telephone. Our first question comes from Zeyu of Tiger. Please go ahead.
Hi, this is Zey u from Tiger. I have a question. Quhuo always focused on localized community life services. Is there some relation between the newly launched vehicle export solution and the company's original business? And can it establish a complementary relationship with the existing business? Yes, that's my question.
Thanks for the question, and this is Leslie. I would like to explain the relationship between second-hand car export and what we are focusing on localized community service. Firstly, our vehicle export solutions has a very strong connection with our existing business. So vehicle export solutions actually derive from our mobility sector as an asset management initiative. This portion of our business will leverage the vehicle information and the maintenance resources we have accumulated in the mobility business to provide vehicle residual value management services for our mobility clients, thereby extending and expanding our offerings within the local community service sector. On the other hand, as we progress with the vehicle export business, it allows us to expand into the global market, broadening our service reach to more diverse regions and opening up a greater market potential.
So in summary, while the vehicle export solutions operates in different domain, it's a derivative and extension of our core business. Through the organic fusion of technology, data, and operational experience, it forms a beneficial relationship with our original business, offering fresh momentum and opportunities for our company's growth. Thank you.
Once again, if you would like to ask a question, please press star then one on your telephone. There are no further questions at this time. I'll now hand the call back to management for closing remarks.
Okay. Thank you everyone for listening. Thank you. That's all.
Thank you.
That concludes today's conference. Thank you for attending, and you may now disconnect.