Autohome Inc (ATHM) 2014 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by for Autohome's third quarter 2014 earnings conference call. (Operator Instructions). As a reminder, this conference call is being recorded. If you have any objections you may disconnect at this time.

女士們、先生們，感謝你們出席汽車之家 2014 年第三季財報電話會議。（操作員說明）。謹此提醒，本次電話會議正在錄音中。如果您有任何異議，您可以此時斷開連接。

It is now my pleasure to introduce your host, Cara O'Brien of FTI Consulting. Ms. O'Brien you may begin.

現在我很高興向您介紹主持人，FTI 諮詢公司的 Cara O'Brien。奧布萊恩女士，您可以開始了。

Thank you operator. Hello everyone and welcome to Autohome's third quarter 2014 earnings conference call. Earlier today Autohome distributed its earnings press release and you can find a copy on the Company's website at www.autohome.com.cn.

謝謝運營商。大家好，歡迎參加汽車之家2014年第三季財報電話會議。今天早些時候，汽車之家發布了財報新聞稿，您可以在公司網站 www.autohome.com.cn 上找到副本。

On today's call we have Mr. James Qin, Autohome's Chief Executive Officer and Mr. Nicholas Chong, Autohome's Chief Financial Officer. After their prepared remarks, James and Nicholas will be available to answer your questions.

出席今天電話會議的嘉賓包括汽車之家執行長秦俊先生和汽車之家財務長莊偉強先生。在做好準備的發言後，詹姆斯和尼古拉斯將回答您的問題。

Before we begin, however, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties and may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those obtained in the public filings with the Securities and Exchange Commission. Autohome does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

然而，在我們開始之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述存在風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於向美國證券交易委員會公開提交的文件中獲得的風險和不確定性。除適用法律要求外，汽車之家不承擔更新任何前瞻性聲明的義務。

The earnings press release in the call also includes discussions of certain unaudited non-GAAP financial measures. The press release contains a reconciliation on the non-GAAP measures to the most directly comparable GAAP measures and is available on Autohome's IR website.

電話會議中的收益新聞稿還包括對某些未經審計的非公認會計準則財務指標的討論。新聞稿包含非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的調整表，可在 Autohome 的 IR 網站上查看。

Also, as a reminder, this conference is being recorded. In addition, a webcast of this conference call will also be available on Autohome's IR website.

另外，提醒一下，本次會議正在錄製中。此外，汽車之家的IR網站也將提供本次電話會議的網路直播。

I will now turn the call over to Autohome's Chief Executive Officer Mr. James Qin. James.

我現在將電話轉接給汽車之家執行長秦俊先生。詹姆士。

Thank you Cara and hello everyone. I'm very excited that we're reporting another strong set of results for the third quarter of 2014. We again exceeded our expectations for the top line and delivered a very strong profits and cash flow, making this the fourth quarter in a row as a public company where we have achieved this.

謝謝卡拉，大家好。我很高興我們報告了 2014 年第三季另一組強勁的業績。我們再次超越了我們對營收的預期，並實現了非常強勁的利潤和現金流，這使得我們作為上市公司連續第四個季度實現這一目標。

Nicholas will go through our third quarter financial results in detail, but let me first highlight some of our most important financial achievements for the third quarter.

尼可拉斯將詳細介紹我們第三季的財務業績，但讓我先強調我們第三季的一些最重要的財務成就。

Net revenues increased 64.6% year-over-year to RMB545.1m.

淨收入年增 64.6% 至人民幣 5.451 億元。

Net income increased 25.5% year-over-year to RMB170.9m.

淨利年增25.5%至人民幣1.709億元。

Net cash provided by operating activities increased 43% year-over-year to RMB122.8m.

經營活動提供的現金淨額年增43%至人民幣1.228億元。

We believe these results prove we are the clear industry leader, recording the highest topline growth, strongest margins and best cash performance amongst our direct peer set.

我們相信這些結果證明我們是明顯的行業領導者，在我們的直接同行中記錄了最高的收入成長、最強的利潤率和最佳的現金表現。

We have also made additional progress across all our key strategic initiatives and many of our goals for these initiatives have been realized.

我們也在所有關鍵策略措施方面取得了更多進展，而這些措施的許多目標已經實現。

First, with respect to increasing our "share of wallet from automakers, the revenue contribution from automakers continues to outgrow the macro market and increases quarter after quarter. In the third quarter of 2014 we achieved year-over-year growth of 43% in revenues from automaker advertising services.

首先，在增加「汽車製造商的錢包份額」方面，汽車製造商的收入貢獻持續超過宏觀市場，並且逐季增加。2014 年第三季度，我們的汽車製造商廣告服務收入較去年同期成長 43%。

Second, for increasing and further monetizing our dealer network, again we have the fastest-growing dealer network in the industry, with increases in both volume and ARPU. This has proved that we have strong value in both media and transaction platform. In the third quarter we were especially excited to see that the revenue contribution from the dealer Yellow Page business, which includes both dealer advertising and dealer subscription services, for the first time became our major revenue contributor, reaching 51% of total net revenue. With this, we believe our dealer network is sizeable enough for us to initiate new and more products to further scale up our business.

其次，為了擴大我們的經銷商網絡並進一步貨幣化，我們再次擁有業內成長最快的經銷商網絡，銷量和 ARPU 均有所增加。這證明了我們在媒體和交易平台上都具有強大的價值。在第三季度，我們特別興奮地看到經銷商黃頁業務（包括經銷商廣告和經銷商訂閱服務）的收入貢獻首次成為我們的主要收入貢獻者，達到總淨收入的51%。因此，我們相信我們的經銷商網路足夠龐大，足以讓我們推出新的和更多的產品，以進一步擴大我們的業務。

Third, with our mobile offering, we're exceling in both traffic and downloads. We pride ourselves on the ability to transform the business to be more mobile focused. We're now well equipped with mobile-ready content to engage today's always-connected users.

第三，透過我們的行動產品，我們在流量和下載方面都表現出色。我們為能夠將業務轉型為更加以行動為中心而感到自豪。我們現在已經配備了適合行動裝置的內容來吸引當今始終在線的用戶。

Fourth, we have and will continue to build out our offerings in the used car sector to get ready for the medium- to long-term growth in this area.

第四，我們已經並將繼續在二手車領域打造我們的產品，為該領域的中長期成長做好準備。

The results from our initial strategies are apparent. We can claim many victories from solid execution and we have a great foundation in place.

我們最初策略的結果是顯而易見的。我們可以透過紮實的執行取得許多勝利，並且我們擁有良好的基礎。

With respect to the future and detail our progress going forward, we believe it will be most constructive to talk about how we view our business model and how that directs our strategies and activities. More specifically, I will talk in terms of the commonly-known "sales funnel" that many consumers go through when making product purchases. Autohome's sales funnel includes three basic stages:

關於未來和詳細說明我們未來的進展，我們相信談論我們如何看待我們的業務模式以及它如何指導我們的策略和活動將是最具建設性的。更具體地說，我將談論許多消費者在購買產品時所經歷的眾所周知的「銷售漏斗」。汽車之家的銷售漏斗包括三個基本階段：

First, moving from little product awareness to purchase desire.

首先，從產品意識淡薄到購買慾望。

Second, moving from desire to action, resulting in sales lead generation.

其次，從願望轉變為行動，進而產生銷售線索。

Third, moving from sale leads generation to actual sales.

第三，從銷售線索產生轉向實際銷售。

We're proud to be the clear market leader of stages one and two. And we're in the pilot stage of stage three.

我們很自豪能夠成為第一階段和第二階段的明顯市場領導者。我們正處於第三階段的試點階段。

At the top of the funnel, the intent is to capture users' awareness of auto products and help them learn about automobile content -- automobile knowledge through our user-generated content and professional-generated contents.

在頻道的頂部，我們的目的是捕捉用戶對汽車產品的認知，幫助他們了解汽車內容——透過我們的用戶生成內容和專業生成內容來了解汽車知識。

It's about how we drive relevant traffic flow and create user stickiness. This is just stage one. Converting purchase desire into action and turning that into sales need is a different process. Therefore, the middle of the funnel is our pricing product and dealer listing platform. The bottom of the funnel is to allow car buyers to complete transactions online. We believe this is what an Internet vertical is really all about and we believe that we have a unique position as a completely new car sales funnel across the industry.

這是關於我們如何推動相關流量並創造用戶黏性。這只是第一階段。將購買慾望轉化為行動並將其轉化為銷售需求是一個不同的過程。因此，漏斗的中間是我們的定價產品和經銷商上市平台。漏斗的底部是讓購車者在線上完成交易。我們相信這就是互聯網垂直領域的真正意義所在，並且我們相信我們作為整個行業的全新汽車銷售管道擁有獨特的地位。

Now let me go into more detail on each of the three stages and our progress.

現在讓我更詳細地介紹這三個階段的每一個階段以及我們的進展。

Stage one, product awareness to purchase desire.

第一階段，產品認知到購買慾望。

For stage one to be effective, you need three things.

為了使第一階段有效，您需要三件事。

First, easy access to your platform.

首先，輕鬆存取您的平台。

Second, good product and content.

第二，好的產品和內容。

Third, good engagement with your audience.

第三，與觀眾的良好互動。

To give you a summary of our success in this area, on the mobile front there are increasingly strong mobile traffic trends. In September the number of average daily unique visitors who accessed our websites via mobile devices and the number of average daily unique visitors to our mobile applications amounted to approximately 4.0m and 2.9m respectively. This represents growth of approximately 32% in the total number of average daily unique visitors on mobile platforms compared to June 2014.

為了向您總結我們在這一領域的成功，在行動領域，行動流量趨勢日益強勁。9月份，透過行動裝置造訪我們網站的日均獨立訪客數和行動應用程式的日均獨立訪客數分別約為400萬和290萬。與 2014 年 6 月相比，行動平台上的平均每日獨立訪客總數增加了約 32%。

On the PC side, according to iResearch, Autohome traffic has remained the dominant leader among China's automobile websites and automobile channels of Internet portals in terms of average daily unique visitors, average daily page views and average daily time spent. Especially, we recorded a meaningful sequential increase in the number of average daily unique visitors on PCs amounting to around 8m in the third quarter of 2014 versus [6.8m] (corrected by company after the call) in the second quarter of 2014.

在PC端，根據艾瑞諮詢的數據，汽車之家流量在日均獨立訪問量、日均頁面瀏覽量和日均使用時長方面仍穩居中國汽車網站和門戶網站汽車頻道的絕對領先地位。特別是，我們記錄到 2014 年第三季 PC 上的平均每日獨立訪客數量顯著連續增長，達到約 800 萬，而 2014 年第二季為 680 萬（由公司在電話會議後修正）。

Strong user engagement is also a fundamental need for stage one. We're constantly enhancing features to enhance "stickiness" with our users. To give you some examples:

強大的使用者參與度也是第一階段的基本需求。我們不斷增強功能，以增強用戶的「黏性」。給你一些例子：

Our "user review" section, which allows users to provide ratings on different aspects of car models, is proving very useful to car buyers and has been rapidly increasing in popularity. In September 2014 the number of page views in this section almost tripled compared to September 2013.

我們的「用戶評論」部分允許用戶對車型的不同方面進行評分，事實證明，這對購車者非常有用，並且越來越受歡迎。與 2013 年 9 月相比，2014 年 9 月該部分的頁面瀏覽量幾乎增加了兩倍。

Also, a recent product enhancement enables users to add or modify their comments and ratings in the "user reviews" section on a continuous basis after buying a car versus it being a one-time action as before. We see our users embracing this feature and they're increasingly more engaged with our platform.

此外，最近的一項產品增強功能使用戶能夠在購買汽車後在「用戶評論」部分中連續添加或修改他們的評論和評級，而不是像以前那樣一次性操作。我們看到我們的用戶接受此功能，並且他們越來越多地參與我們的平台。

We feel we have stage one covered. Turning to the middle of the funnel, that is where user starts as a "consideration period". It is critical here to have consumers become sales leads and enter our conversion phase. This is where the next stage takes over.

我們覺得我們已經完成了第一階段。轉向漏斗的中間，這是使用者作為「考慮期」開始的地方。讓消費者成為銷售線索並進入我們的轉換階段至關重要。這是下一階段接管的地方。

Stage two, desire to action resulting in sales leads generation.

第二階段，渴望採取行動，產生銷售線索。

As our traffic has grown so rapidly, it became important that we adjust our approach and costs to be commensurate with the quality of sales leads that we're providing. Currently, we are focused on having three main commercial products that will allow us to monetize the sales leads based on the quality and benefits that we provide. Some of these are up and running and others are still in the trial phase.

由於我們的流量成長如此之快，我們必須調整我們的方法和成本，以與我們提供的銷售線索的品質相符。目前，我們專注於擁有三種主要商業產品，這將使我們能夠根據我們提供的品質和利益將銷售線索貨幣化。其中一些已經啟動並運行，另一些仍處於試驗階段。

Let me start with our fully functioning Dealer Yellow Page Business. This includes our dealer advertising services and dealer subscription services, both of which in the third quarter recorded a significant year-over-year growth. The main driver of this is deepening penetration in Tier 3 and Tier 4 cities and building out our network of strong relationships.

讓我從我們功能齊全的經銷商黃頁業務開始。這包括我們的經銷商廣告服務和經銷商訂閱服務，這兩項服務在第三季都實現了年比顯著成長。其主要驅動力是加深對三線和四線城市的滲透並建立我們強大的關係網絡。

Next is our Group Buy Initiative which we started testing in September. We aim to leverage the broad user base in our online social community and convert them into higher quality leads for our dealers to create actual commercial benefit to Autohome. Our site will post the pre-negotiated discounts of a dealer. We then connect users online and drive them to dealers ' offline locations. We believe with the power of Internet, it's a better alternative for OEMs and dealers who have been paying up front for offline advertising for their in-store promotion activities when they don't know what their ROI will be. It is exciting to highlight that leading dealer brands such as Mercedes and GM have participated.

接下來是我們的團購計劃，我們在 9 月開始測試。我們的目標是利用線上社交社群中廣泛的用戶群，將其轉化為經銷商更高品質的銷售線索，為汽車之家創造實際的商業利益。我們的網站將發布經銷商預先商定的折扣。然後，我們在線上連接用戶並將他們帶到經銷商的線下地點。我們相信，借助互聯網的力量，對於那些在不知道投資回報率是多少的情況下為店內促銷活動預先支付線下廣告費用的原始設備製造商和經銷商來說，這是一個更好的選擇。令人興奮的是，梅賽德斯和通用汽車等領先經銷商品牌也參與其中。

Lastly, let me move to our Cost Per Lead Initiative. We aim to charge cost per leads on top of the listing leads which we charge to dealers at a fixed subscription fee. We believe we are well-known for having high quality leads in the market that makes existing customers willing to top up for their new product. This can help our customers effectively fulfill their sales target with more transparent and accurate spending.

最後，讓我談談我們的每個潛在客戶成本計畫。我們的目標是在列出的線索之上收取每個線索的費用，我們以固定的訂閱費向經銷商收取費用。我們相信，我們以在市場上擁有高品質的銷售線索而聞名，這使得現有客戶願意為他們的新產品充值。這可以幫助我們的客戶以更透明和準確的支出有效地完成他們的銷售目標。

We're making solid move in stage two. We firmly believe that the quality of our leads is the core competence for us to further accelerate growth and to differentiate ourselves in the market.

我們在第二階段取得了堅實的進展。我們堅信，潛在客戶的品質是我們進一步加速成長並在市場中脫穎而出的核心競爭力。

Now moving to the bottom of the funnel. This is where we close the transaction loop. To us, generating or monetizing a lead is not the ultimate transaction. Rather, our eventual goal is for buyer to complete transaction online. This leads to stage three which is sales lead to actual sales.

現在移動到漏斗的底部。這是我們關閉交易循環的地方。對我們來說，產生潛在客戶或將其貨幣化並不是最終的交易。相反，我們的最終目標是讓買家在線上完成交易。這導致了第三階段，即銷售導致實際銷售。

Given our unrivalled reach among dealers, automakers and highly motivated car buyers, we have a unique platform and our aim is to provide an end-to-end auto shopping experience, from awareness and interest to decision and action. And this initiative should help us fully close the transaction loop in the future.

鑑於我們在經銷商、汽車製造商和積極性高的汽車購買者中擁有無與倫比的影響力，我們擁有一個獨特的平台，我們的目標是提供端到端的汽車購物體驗，從意識和興趣到決策和行動。而這項舉措應該有助於我們未來完全關閉交易循環。

As mentioned, last quarter in June we formally launched Autohome Mall, a permanent transaction platform which will allow us to be a long-term transaction facilitator. We can offer users a one-stop shop as they can go to Autohome Mall, pick the car model they want, purchase coupons for discounts to buy the car they want without leaving the Autohome platform.

如前所述，上個季度的六月，我們正式推出了汽車之家商城，這是一個永久的交易平台，這將使我們能夠成為長期的交易服務商。我們可以為用戶提供一站式服務，用戶無需離開汽車之家平台，就可以進入汽車之家商城，挑選自己想要的車型，購買優惠券，購買自己想要的汽車。

Autohome Mall has facilitated over 7,000 transactions involving 205 car models from 57 car brands in third quarter. We believe this highlights the value of this platform for marketing partnerships and sales facilitation. A key focus for us right now is preparing for our second-time participation in a "Double 11" event which will take place again in November and will include a full price car transaction trial. This is a major online sales promotion campaign on Double 11, a popular online shopping festival in China. Given what a strong event was held last year, as we achieved the record of over 15,000 transactions in just one day. This year we have significant support from both OEM and dealers and we are planning for this to be even more successful.

第三季度，汽車之家商城累計成交7,000餘筆，涉及57個汽車品牌、205款車型。我們相信這凸顯了該平台對於行銷合作夥伴關係和銷售促進的價值。我們現在的重點是準備第二次參加11月份的「雙11」活動，其中包括全價汽車交易試點。這是中國流行的網購節日「雙11」期間的一項重大線上促銷活動。去年的活動非常火爆，我們創下了單日交易量超過 15,000 筆的記錄。今年，我們得到了 OEM 和經銷商的大力支持，我們計劃取得更大的成功。

As we look ahead, as a vertical with a strong brand, Autohome should be able to make it quick and easy for customers to move forward with actual purchases. We aim to be at the forefront when this occurs. As you can see, Stage Three is in strong shape as well and we are making important refinements that will benefit our business a great deal in the long term.

展望未來，作為一個擁有強大品牌的垂直產業，汽車之家應該能夠讓客戶快速、輕鬆地進行實際購買。當這種情況發生時，我們的目標是站在最前面。正如您所看到的，第三階段也處於強勁狀態，我們正在進行重要的改進，從長遠來看，這將使我們的業務受益匪淺。

However reaching the bottom of the sales funnel after a transaction is not a done deal with the car buyers. Rather, a customer lifecycle should exist and, if leveraged correctly, should cultivate loyalty and repetitive behaviors through more products and services provided by Autohome.

然而，交易完成後到達銷售漏斗的底部對於購車者來說並不是板上釘釘的事情。相反，客戶生命週期應該存在，如果利用得當，應該透過汽車之家提供的更多產品和服務來培養忠誠度和重複行為。

Therefore, we are also considering how to best serve repetitive users and one important part of this is our used car offering. This is still a fragmented market in China, but we strongly believe in its long-term potential as we have been cultivating this market for more than two years. Given the second hand car market in China is still not clear and open, we must use the technology to help organize it. Through leveraging our technology know-how and strong online presence, our role is to organize the second hand car information and establish an open and transparent platform. We'll keep you updated on this.

因此，我們也在考慮如何最好地服務重複用戶，其中一個重要部分就是我們的二手車產品。這在中國仍然是一個分散的市場，但我們堅信其長期潛力，因為我們已經培育這個市場兩年多了。鑑於中國的二手車市場還不夠清晰和開放，我們必須利用技術來幫助組織它。透過利用我們的技術知識和強大的線上影響力，我們的作用是整理二手車資訊並建立一個開放、透明的平台。我們會及時向您通報最新情況。

Now I would like to summarize a few last things.

現在我想總結最後幾件事。

First, we delivered very strong results in the third quarter and I remain certain that we are well placed to meet all of our near- and long-term strategic goals. With our consistent track record, we have confidence to further grow the business with a more diversified product portfolio and new initiatives.

首先，我們在第三季取得了非常強勁的業績，我仍然確信我們有能力實現所有近期和長期策略目標。憑藉我們一貫的業績記錄，我們有信心透過更多元化的產品組合和新措施進一步發展業務。

Second, we are successfully transitioning from being only a PC oriented Company to being both a mobile and PC oriented Company as evidenced by strong mobile traffic growth.

其次，我們成功地從僅面向 PC 的公司轉型為同時面向行動和 PC 的公司，行動流量的強勁成長證明了這一點。

Finally we're also excited about the results of our transaction initiatives and the early success of Autohome Mall which provides another potential long-term growth driver and will help us round out the performance of our sales funnel.

最後，我們也對我們的交易計畫的結果和汽車之家商城的早期成功感到興奮，這提供了另一個潛在的長期成長動力，並將幫助我們完善銷售管道的績效。

In short we are leveraging our leadership position and investing for long-term growth and are very excited about what the future will bring.

簡而言之，我們正在利用我們的領導地位並投資於長期成長，並對未來將帶來的一切感到非常興奮。

Before I turn the call to Nicholas for the financial overview, I would like to say a few final words on the follow-on offering that we announced earlier today. We announced a proposed offering of primary and secondary American Depositary Shares by Autohome and certain of its existing shareholders, including Telstra Holdings Pty Limited. The proposed offering is expected to provide for greater liquidity of the ADS in the market by increasing the public float.

在我致電尼古拉斯了解財務概況之前，我想就我們今天早些時候宣布的後續發行說幾句話。我們宣布汽車之家及其某些現有股東（包括 Telstra Holdings Pty Limited）擬發行主要和二級美國存託股票。擬議的發行預計將透過增加公眾持股來增加美國存託股票在市場上的流動性。

The Company proposes to offer 1,650,000 ADS and the selling shareholder proposed to offer 6,850,000 ADS in aggregate. The amount and timing of the proposed offering are subject to market conditions and other factors.

公司擬發行1,650,000股美國存託股，售股股東擬發行總計6,850,000股美國存託股。擬議發行的金額和時間取決於市場狀況和其他因素。

With that, let me turn the call over to Nicholas who will walk through the financials for the third quarter in more detail and go over our outlook for the fourth quarter as well. Nicholas?

接下來，讓我將電話轉給尼可拉斯，他將更詳細地介紹第三季的財務狀況，並回顧我們對第四季的展望。尼古拉斯？

Thank you, James. Hello, everyone.

謝謝你，詹姆斯。大家好。

As James noted, we have posted very strong results for the third quarter coming in ahead of our initial expectations.

正如詹姆斯指出的那樣，我們第三季的業績非常強勁，超出了我們最初的預期。

Let me spend a few minutes to drill down into the numbers and talk you through some specific details for the third quarter. Note that I will reference RMB only in this discussion, but you can find the equivalent US dollar numbers in our press release issued earlier today.

讓我花幾分鐘時間深入研究這些數字，並向您介紹第三季的一些具體細節。請注意，我在本次討論中僅提及人民幣，但您可以在我們今天早些時候發布的新聞稿中找到相應的美元數字。

Net revenues for the third quarter increased 64.6% to RMB545.1m from RMB331.2m in the corresponding period in 2013. This increase was due to increases in revenues from both advertising services and dealer subscription services.

第三季淨收入從 2013 年同期的 3.312 億元成長 64.6% 至 5.451 億元。這一增長是由於廣告服務和經銷商訂閱服務的收入增加所致。

Breaking this down further, advertising services revenues increased 59.9% to RMB385.7m from RMB241.3m in the corresponding period in 2013 as we increased revenues from both automaker advertisers and dealer advertisers.

進一步細分，由於我們來自汽車製造商廣告商和經銷商廣告商的收入增加，廣告服務收入從 2013 年同期的人民幣 2.413 億元增長 59.9% 至人民幣 3.857 億元。

The increase in automaker advertising services revenues was attributable to an increase in average revenues per automaker advertisers as automaker continued to allocate more advertising budgets to Autohome's' online advertising channels.

汽車製造商廣告服務收入的成長歸因於汽車製造商繼續向汽車之家的線上廣告管道分配更多廣告預算，每個汽車製造商廣告商的平均收入增加。

The increase in dealer advertising services revenues was mainly due to an increase in the volume of advertising purchased by dealer advertisers as a result of our expansion into new geographical markets and deeper penetration into existing markets. We also increased the rates for our dealer advertising services.

經銷商廣告服務收入的成長主要是由於我們向新的地理市場的擴張以及對現有市場的更深層次的滲透，導致經銷商廣告商購買的廣告量增加。我們也提高了經銷商廣告服務的費率。

Turning to dealer subscription services, revenues here increased 77.2% to RMB159.4m from RMB90m in the corresponding period in 2013. This was mainly driven by an increase in the number of paying dealers as we expanded into new geographic markets, especially within China's growing Tier 3 and Tier 4 cities, and gained deeper penetration into existing markets, as well as an increase in the share of wallet from the paying dealers during the third quarter.

至於經銷商訂閱服務，營收從 2013 年同期的 9,000 萬元人民幣成長 77.2% 至 1.594 億元。這主要是由於我們擴展到新的地域市場，特別是在中國不斷增長的三四線城市，並進一步深入現有市場，付費經銷商數量增加，以及錢包份額增加來自第三季度付款經銷商。

As James has noted, we sold dealer subscription services to 14,614 dealers in the third quarter of 2014 compared with 8,883 dealers in the corresponding period in 2013, which is very encouraging.

正如詹姆斯所指出的，我們在 2014 年第三季向 14,614 名經銷商出售了經銷商訂閱服務，而 2013 年同期為 8,883 名經銷商，這是非常令人鼓舞的。

Cost of revenues for the third quarter increased 48.6% to RMB96.7m from RMB65m in the corresponding period in 2013, primarily due to increases in value added taxes and surcharges, content related costs, bandwidth and IDC costs and depreciation. The cost of revenues included share-based compensation expense of RMB1.7m and RMB1.6m for the third quarter of 2014 and 2013 respectively.

第三季的收入成本從2013年同期的人民幣6500萬元增加48.6%至人民幣9670萬元，主要是由於增值稅及附加費、內容相關成本、頻寬和IDC成本以及折舊的增加。收入成本包括2014年第三季及2013年第三季分別為人民幣170萬元及人民幣160萬元的股權激勵費用。

Operating expenses for the third quarter increased 150.2% to RMB246.8m from RMB98.7m in the corresponding period in 2013. As a percentage of net revenue, operating expenses for the third quarter increased to 45.3% from 29.8% in the corresponding period in 2013 as we have been continuously reinvesting in key strategic areas such as sales and marketing and product development for future growth opportunities.

第三季營運費用從 2013 年同期的 9,870 萬元人民幣增至 2.468 億元，成長 150.2%。第三季營運費用佔淨收入的百分比從2013年同期的29.8%增加到45.3%，因為我們持續在銷售和行銷以及產品開發等關鍵策略領域進行再投資，以尋找未來的成長機會。

Breaking this down further, we increased headcount in both sales and marketing and product development and other administrative staff to support our growing business. We also increased marketing expenses in connection with the promotion of our brands through search engines, navigation sites and mobile platforms, which include the cooperation with Baidu for enhanced auto-related content search results on PC powered by "Aladdin".

進一步細分，我們增加了銷售、行銷、產品開發和其他行政人員的人數，以支持我們不斷成長的業務。我們還增加了透過搜尋引擎、導航網站和行動平台推廣我們品牌的行銷費用，其中包括與百度合作，以增強「阿拉丁」在電腦上的汽車相關內容搜尋結果。

Lastly, we invested in growth initiatives on the product development side such as the mobile initiatives that James outlined earlier.

最後，我們投資於產品開發方面的成長計劃，例如詹姆斯之前概述的行動計劃。

Operating profit for the third quarter increased 20.3% to RMB201.6m from RMB167.5m in the corresponding period in 2013.

第三季營業利潤從 2013 年同期的 1.675 億元成長 20.3% 至 2.016 億元。

All in all, net income for the third quarter increased 25.5% to RMB170.9m from RMB136.2m in the corresponding period in 2013.

總而言之，第三季淨利從 2013 年同期的 1.362 億元增至 1.709 億元，成長 25.5%。

Basic and diluted earnings per share and per ADS -- EPS for the third quarter were RMB1.59 and RMB1.52 respectively compared to basic and diluted EPS in the corresponding period in 2013 of RMB1.36 and RMB1.34 respectively.

基本和稀釋每股收益和每美國存託憑證－第三季每股收益分別為人民幣1.59元和人民幣1.52元，而2013年同期基本和稀釋每股收益分別為人民幣1.36元和人民幣1.34元。

Adjusted net income, which is defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, increased 30% for the third quarter to RMB183.9m from RMB141.5m in the corresponding period in 2013.

調整後淨利潤（指不包括股權激勵費用和與收購相關的無形資產攤銷費用的淨利潤）第三季度增長了 30%，從 2013 年同期的人民幣 1.415 億元增至人民幣 1.839 億元。

Non-GAAP basic and diluted EPS for the third quarter were RMB1.71 and RMB1.63 respectively compared to non-GAAP basic and diluted EPS in the corresponding period in 2013 of RMB1.42 and RMB1.4 respectively.

第三季非美國通用會計準則基本每股盈餘和稀釋每股盈餘分別為人民幣1.71元和人民幣1.63元，而2013年同期非美國通用會計準則基本每股盈餘和稀釋每股盈餘分別為人民幣1.42元和人民幣1.4元。

Turning to balance sheet and cash flow information, as of September 30, 2014 Autohome had cash and cash equivalents and term deposits of RMB1,710.1m.

至於資產負債表及現金流量信息，截至2014年9月30日，汽車之家的現金及現金等價物及定期存款為人民幣17.101億元。

Net cash provided by operating activities in the third quarter of 2014 was RMB122.8m compared to RMB85.9m in the corresponding period in 2013.

2014 年第三季經營活動提供的現金淨額為 1.228 億元，而 2013 年同期為 8,590 萬元。

Let me now address our outlook for the quarter ahead. For the fourth quarter of 2014 we currently expect to generate net revenues in the range of RMB610m to RMB636m, representing a 58% to 64.8% year-over-year increase.

現在讓我談談我們對未來季度的展望。我們目前預計2014年第四季的淨收入將在人民幣6.1億元至人民幣6.36億元之間，年增58%至64.8%。

Again, I must mention that these comments on our outlook reflect our current and preliminary view on the market and operating conditions which is subject to change.

我必須再次提及，這些對我們前景的評論反映了我們對市場和經營狀況的當前和初步看法，這些看法可能會改變。

This concludes our prepared remarks and now we would like to take any questions you may have. Operator, please open the line for Q&A.

我們準備好的演講到此結束，現在我們想回答您可能提出的任何問題。接線員，請開通問答線。

Okay, thank you. We will now begin the question and answer session. (Operator Instructions). Vivian Hao, Deutsche Bank.

好的謝謝。我們現在開始問答環節。（操作員說明）。郝薇薇，德意志銀行。

Hi, James and Nicholas. Thank you for taking my question. I have one question and probably one follow-up based on that. We have provided quite a strong top line growth guidance for the 4Q. Can we quantify the incremental growth that has come from Baidu/Aladdin partnership? And also what is the leads conversion improvement so far we have seen from this new partnership?

嗨，詹姆斯和尼古拉斯。感謝您回答我的問題。我有一個問題，可能還有一個基於此的後續行動。我們為第四季提供了相當強勁的營收成長指引。我們能否量化百度/阿拉丁合作帶來的增量成長？到目前為止，我們從這項新的合作關係中看到的潛在客戶轉換率改善如何？

And the follow-up question is essentially on the cost side. For this quarter, the sales and marketing costs seems to be surging quarter over quarter. I am just wondering what is the associated cost that has come from the Baidu/Aladdin related into sales and marketing. Thank you.

而後續的問題本質上是在成本方面。本季的銷售和行銷成本似乎逐季飆升。我只是想知道百度/阿拉丁與銷售和行銷相關的相關成本是多少。謝謝。

Hi, Vivian. I think your question basically, first is quarterly sales and marketing expense. I think for Aladdin project, right, because unfortunately it is a commercial contract where it's difficult for us to disclose the number. But, in general, I can tell you the major spending for Q3 which -- the incremental major spending will be, number one, on further investment in mobile apps, especially for some of the mobile app stores. So that's one.

嗨，維維安。我認為你的問題基本上首先是季度銷售和行銷費用。我認為對於阿拉丁計畫來說，是的，因為不幸的是，這是一個商業合同，我們很難透露這個數字。但是，總的來說，我可以告訴您第三季度的主要支出 - 增量主要支出將是對行動應用程式的進一步投資，特別是對於一些行動應用程式商店。這就是其中之一。

And if you look at that, our average DAUs for our apps in Q3 increased almost 0.5m from Q2. So that's a huge jump. And obviously we need to invest on that front to help us safely across the chasm from a PC only to a PC and mobile both focused. So that's one thing.

如果你看一下，我們的應用程式在第三季的平均 DAU 比第二季增加了近 50 萬。所以這是一個巨大的飛躍。顯然，我們需要在這方面進行投資，以幫助我們安全地跨越鴻溝，從只專注於 PC 到同時專注於 PC 和行動裝置。所以這是一回事。

The second thing is obviously Aladdin. We use, I think, the streamline to capture the cost of Aladdin. So basically you can -- back of envelope, you should be able to calculate the number of our marketing cost increase. So that's one.

第二件事顯然是阿拉丁。我認為，我們使用流線型來計算阿拉丁的成本。所以基本上你可以——從信封後面，你應該可以計算出我們的行銷成本增加了多少。這就是其中之一。

And secondly is on the increase -- on the forward-looking in Q4, I think it's difficult. Even for now it's probably -- it's difficult for us to really quantify the incremental revenue generated from Aladdin effect because there is a couple of factors. For example, when car makers understand Autohome's PC traffic, it's going to have a small jump. Obviously, they are going to allocate some more budget to us. So that is what we call the spillover effect.

其次是成長——就第四季的前瞻性而言，我認為這很困難。即使是現在，我們也可能很難真正量化阿拉丁效應所產生的增量收入，因為有幾個因素。例如，當汽車製造商了解汽車之家的 PC 流量時，其流量將會出現小幅跳躍。顯然，他們將給我們分配更多的預算。這就是我們所說的溢出效應。

And, currently, majority of our dealer listing services are still subscription-based which is a flat fee for all subscriptions no matter how many sales we generate for those dealers. So that's why we're really focused to promote our cost per sales lead product in order to capture the incremental sales lead we generate from Aladdin project. So, to answer your question in a direct way, it's difficult for us to quantify that.

目前，我們的大多數經銷商清單服務仍然基於訂閱，無論我們為這些經銷商產生多少銷售額，所有訂閱均收取固定費用。因此，這就是為什麼我們真正專注於提高每銷售線索產品的成本，以捕捉我們從阿拉丁專案產生的增量銷售線索。因此，要直接回答你的問題，我們很難量化這一點。

Okay. Can we comment on the leads conversion improvement?

好的。我們可以對潛在客戶轉換率的改進發表評論嗎？

I think it's probably too early to update you that. But I think we are planning to update you once we feel the -- we already enter a mature stage of CPL product. Right now it's in a very early stage.

我認為現在向您更新這一情況可能還為時過早。但我認為，一旦我們感覺到——我們已經進入 CPL 產品的成熟階段，我們就計劃向您通報最新情況。目前還處於非常早期的階段。

Okay. Thank you. That's very helpful.

好的。謝謝。這非常有幫助。

Piyush Mubayi, Goldman Sachs.

皮尤什·穆巴伊，高盛。

Thanks Nicholas, thanks James and congratulations on the good numbers. Can I just ask how should we be thinking about the impact of the Group Buy and the cost per lead initiatives? Should we be thinking about these on current ARPU? And if yes, what is the magnitude of the increase we can anticipate and when do you think that should start to kick in.

謝謝尼古拉斯，謝謝詹姆斯，恭喜取得的好成績。我可否問一下，我們該如何考慮團購和每個線索成本計畫的影響？我們是否應該根據目前的 ARPU 來考慮這些問題？如果是的話，我們可以預期成長的幅度是多少，您認為這種成長應該何時開始生效。

And second, just following up on Vivian's question with regard to the SG&A, could you give us a sense of whether -- just remind us when did that Baidu agreement kick in and when does that lapse and is it being booked on an equal basis through the quarters or is it lumped into the quarter? Any color around that would be helpful.

其次，就 Vivian 關於 SG&A 的問題進行跟進，您能否讓我們了解是否——請提醒我們，百度協議何時生效、何時失效以及是否通過平等的基礎進行預訂季度還是集中到季度？周圍的任何顏色都會有幫助。

So Piyush, this is Nicholas here. So I think on the Baidu arrangement, it basically started on July 1 and it's good for one year, to June 30. And we book it on a straight line basis.

Piyush，這是尼古拉斯。所以我覺得在百度的安排上，基本上是從7月1號開始，好一年，到6月30號。我們以直線方式預訂。

Okay. Thank you.

好的。謝謝。

I think in terms of Group Buy, I think if you have to make me make choose between ARPU and the volume, probably it would definitely impact on ARPU rather than impact on volume. And when that will have meaningful impact is probably -- right now it's too early to tell.

我覺得在團購方面，我想如果你非要讓我在ARPU和銷售之間做出選擇的話，可能一定會影響ARPU而不是影響銷售。何時會產生有意義的影響可能是──現在判斷還為時過早。

As I -- I wish I could answer you more. But I think only after we feel comfortable about the commercial product, the pricing, and the customer demand, I think at that point we can probably tell you more about, from our point of view, the revenue impact of our Group Buy and CPL product because Group Buy is similar to our CPL product. It's just -- the commercial terms is a little bit different, but still it's based on -- it's a pay for performance commercial product.

作為我——我希望我能回答你更多。但我認為只有在我們對商業產品、定價和客戶需求感到滿意之後，我認為那時我們可能可以從我們的角度告訴您更多有關團購和 CPL 產品的收入影響的信息因為團購和我們的CPL產品類似。只是——商業術語有點不同，但它仍然是基於——這是一種按性能付費的商業產品。

Okay. I understand.

好的。我明白。

To view on what James has mentioned, I think like that is what we have been saying all along is in terms of our dealer business, the first thing that we have been doing from the start, five years ago, we have been trying to deepening the penetration. So that's why we have been -- that's why you can see that we have grown the number of paying dealers. So now that I think we have achieved a meaningful size that's where we started to roll out more differentiated products like the Group Buy and the cost-per-lead to give more services to the dealers.

從詹姆斯提到的來看，我認為這就是我們一直在說的，就是我們的經銷商業務，我們從五年前開始做的第一件事，我們一直在努力深化滲透力。這就是為什麼我們一直在——這就是為什麼你可以看到我們增加了付費經銷商的數量。因此，現在我認為我們已經達到了有意義的規模，我們開始推出更多差異化產品，例如團購和按潛在客戶付費，為經銷商提供更多服務。

And also, by the way, also two years ago we started the dealer advertising as well, right. So if the ticket has we are adding further value to our dealers and we are able to bring ARPU up.

順便說一句，兩年前我們也開始為經銷商做廣告，對吧。因此，如果有票，我們將為我們的經銷商增加更多價值，並且我們能夠提高 ARPU。

Yes. And also in the backdrop of upcoming November 11 sales event, as you can see, probably a majority of our dealer consultant workforce are working with dealers to make sure the November 11 sales event will be a successful one. So I think that is the focus of the dealer consultant team at this point.

是的。而且，在即將到來的 11 月 11 日銷售活動的背景下，正如您所看到的，我們的大多數經銷商顧問團隊可能正在與經銷商合作，以確保 11 月 11 日的銷售活動成功。所以我認為這是經銷商顧問團隊目前的重點。

All right. Thank you.

好的。謝謝。

Evan Zhou, Credit Suisse.

週埃文，瑞士信貸。

Hi. Good evening, James and Nicholas. Thank you for taking my questions. I've got two questions. The first question is on your 4Q guidance. Can we be provided some more colors on further breakdown on it? Is the good number really coming from still a pretty decent OEM ad budget spending towards the year end, or are we actually going to charge any revenues from our new auto e-commerce initiative, especially on -- during the November 11 period. So, any of that color will be helpful. And I have a follow-up, thanks.

你好。晚上好，詹姆斯和尼古拉斯。感謝您回答我的問題。我有兩個問題。第一個問題是關於您的第四季指引。我們能否提供更多顏色來進一步細分？這個好數字是否真的來自於年底仍然相當不錯的 OEM 廣告預算支出，或者我們實際上是否會從我們新的汽車電子商務計劃中收取任何收入，特別是在 11 月 11 日期間。所以，任何一種顏色都會有幫助。我有一個後續行動，謝謝。

The question is about the fourth quarter guidance and whether or not we can give a more split --

問題是關於第四季度的指導以及我們是否可以給予更多的分配——

I think the -- well I think on the fourth quarter, I think basically you can see that, as well we have said before, the OEM advertising we'll be able to grow faster than the market. And at the dealer side, actually the overall growth rate will be faster than the OEM advertising growth rate like what you have seen in the last three quarters. So I think the trend remains the same.

我認為——嗯，我認為在第四季度，我認為基本上你可以看到，正如我們之前所說，OEM 廣告我們將能夠比市場增長得更快。而在經銷商方面，實際上整體成長率會比OEM廣告成長率更快，就像你在過去三個季度看到的那樣。所以我認為趨勢保持不變。

As far as the e-commerce, I think basically we are not -- there's no meaningful revenue this quarter -- this year. I think basically we continue to focus on the testing.

就電子商務而言，我認為基本上我們今年沒有——本季沒有任何有意義的收入。我認為基本上我們會繼續專注於測驗。

Yes. The first three quarters of our revenue growth, I think as far as I can tell, is pretty smooth. I didn't recall any suddenly jump or drop of, for example, OEM advertising or Yellow Page business. So it's kind of stable.

是的。據我所知，我們前三個季度的營收成長相當順利。我不記得有任何突然的跳躍或下降，例如OEM廣告或黃頁業務。所以它有點穩定。

Yes.

是的。

So if you have to force me to give you a prediction, I would assume the historical pattern probably will happen again in fourth quarter.

因此，如果你必須強迫我給你一個預測，我會假設歷史模式可能會在第四季再次發生。

Yes. I think the OEM advertising has been growing between 42% to 46% in the first three quarters. So it has consistently is what I have said.

是的。我認為前三季 OEM 廣告成長在 42% 至 46% 之間。所以我一直都是這麼說的。

Yes. And on the November 11 sales event, it's currently -- I think just as what we have done in last November 11, we didn't believe there will be a -- like a meaningful revenue coming directly from the e-commerce event.

是的。在 11 月 11 日的銷售活動中，目前 - 我認為就像我們在去年 11 月 11 日所做的那樣，我們不相信直接從電子商務活動中獲得有意義的收入。

Yes. I think the purpose is to make sure we want to add more value to the Internet users, the OEMs and dealers. That's our priority.

是的。我認為目的是確保我們想要為網路使用者、原始設備製造商和經銷商增加更多價值。這是我們的首要任務。

Got it. Thanks.

知道了。謝謝。

And my second question is regarding the full price car transaction trial that James just mentioned in the prepared remarks. Can you maybe provide some more -- share with us some more details on that? What's kind of the scale? And operationally, how do we plan to roll out this in our November 11 event? Are we going to say take inventories for those cars and any kind of potential impact to the financial statements, either on the P&L or the balance sheet would be helpful? Thank you.

我的第二個問題是關於詹姆斯剛才在準備好的發言中提到的全價汽車交易試點。您能否提供更多資訊－與我們分享更多相關細節？是什麼樣的規模？從操作上來說，我們計劃如何在 11 月 11 日的活動中推出此功能？我們是否會說對這些汽車進行盤點以及對財務報表（無論是損益表還是資產負債表）的任何潛在影響都會有幫助？謝謝。

So currently for the November 11, what we intend to do is to take the full payment over the Internet. However, as far as I know is that we do not take the inventory at this point.

因此，目前我們打算在 11 月 11 日透過網路全額付款。不過，據我所知，我們目前不進行庫存盤點。

So I think.

所以我認為。

Cool. Thanks. Just a very quick follow-up. So maybe can you maybe update us with the latest headcount number? And specifically are we adding more salespeople to our e-commerce related initiatives? What kind of the people going forward will be added?

涼爽的。謝謝。只是一個非常快速的跟進。那麼您能否向我們通報最新的員工人數？具體來說，我們是否會在電子商務相關計劃中增加更多銷售人員？未來會增加什麼樣的人？

So the headcount number for the --

所以員工人數——

[I will split it out].

[我會把它分開]。

The headcount number for Q3 2014, the total number is 1,654 full-time employees. Do you want to know the split?

2014年第三季的員工總數為1,654名全職員工。你想知道分裂嗎？

Yes (multiple speakers).

是的（多個發言者）。

I think sales and marketing, the split is 50% over of the 1,654.

我認為銷售和行銷部門的比例是 1,654 人中的 50%。

Okay. And how much -- how many do we -- did we like increase this quarter or year over year?

好的。我們希望本季或年增多少？

So quarter over quarter, probably it only increased less than about 10%. I think it's about 10%. Maybe a little bit more. Year over year, the whole workforce rose by 51%. So I would assume probably the sales and marketing growth is probably a little bit higher than that because in general, we grow more people on the product and development. So that has the highest growth in terms of different bucket. The second one will be the sales and marketing. The last one will be G&A and the cost of goods sold, the content development people.

因此，季度環比，可能只增加了不到 10% 左右。我認為大約是10%。也許多一點。與去年同期相比，整個勞動力成長了 51%。因此，我認為銷售和行銷的成長可能會比這高一點，因為總的來說，我們在產品和開發方面培養了更多的人員。因此，就不同的桶子而言，它具有最高的成長。第二個是銷售和行銷。最後一項是 G&A 和銷售商品的成本，即內容開發人員。

Ella Ji, Oppenheimer.

艾拉·吉，奧本海默。

Thank you and good evening James and Nicholas. I have two questions.

謝謝你們，晚上好，詹姆斯和尼古拉斯。我有兩個問題。

First, a follow-up relating to your November 11 sales event. Should we expect to -- should we expect a big step-up in sales and marketing expenditure from 3Q because of maybe more sales events on November 11?

首先，跟進 11 月 11 日的銷售活動。由於 11 月 11 日可能會有更多銷售活動，我們是否應該預期第三季銷售和行銷支出會大幅增加？

And relating to that, you know you have a lot of cash now on your balance sheet. What is your focus area of spending and how should we think about your margins trend for 2015? That's my first question.

與此相關的是，您知道您的資產負債表上現在有大量現金。您的重點支出領域是什麼？我們該如何看待您 2015 年的利潤趨勢？這是我的第一個問題。

I think that probably has three parts. I will answer your second part which is the comment on we have a lot of cash on our balance sheet.

我認為這可能分為三個部分。我將回答你的第二部分，即我們的資產負債表上有大量現金的評論。

To be honest -- and Nicholas is going to answer the margin and the --

老實說——尼古拉斯將回答利潤率和——

Sales and marketing expenses.

銷售和行銷費用。

Sales and marketing expense in Q4.

第四季的銷售和行銷費用。

To be honest, I don't think we have a lot of cash on our balance sheet. If you divided the absolute cash balance by the markup, I would assume -- I don't have the number on top of my head, I would assume across all my peers say around like $3b to $5b company. I would probably be one of the lowest in terms of cash as a percentage of markup.

老實說，我認為我們的資產負債表上沒有很多現金。如果你用絕對現金餘額除以加價，我會假設——我腦子裡沒有這個數字，我會假設我所有的同行都說大約是 30 億美元到 50 億美元的公司。就現金佔加價百分比而言，我可能是最低的一個。

And I think in order to further grow our business, especially in the long run, we need to have a bigger war chest in order to do the proper investment. So that's the cash.

我認為，為了進一步發展我們的業務，特別是從長遠來看，我們需要有更大的資金來進行適當的投資。所以這就是現金。

Okay. And I'll address the questions on the margins and the sales and marketing. I think if you -- consistent with what we have been saying all the while, if you look at the 2014 year to date, we have posted strong performance over both revenue and margin. Our profit level has been leading in the industry.

好的。我將解決有關利潤率以及銷售和行銷的問題。我認為，如果你——與我們一直以來所說的一致，如果你看看 2014 年迄今為止，我們在收入和利潤方面都取得了強勁的表現。我們的利潤水準一直處於行業領先地位。

And actually -- and on the gross margin side, we have been continuing to be able to leverage. We have operating leverage. Gross margin in Q3 2014 was 82%. A year ago Q3 was 80.4%; Q2 was 81%. So we continue to grow on our gross margin.

實際上，在毛利率方面，我們一直能夠繼續發揮槓桿作用。我們有經營槓桿。2014年第三季毛利率為82%。一年前第三季為 80.4%；第二季為 81%。因此，我們的毛利率持續成長。

But what we continue to do is that we'll continue to reinvest in sales and marketing and product development and making investment in future growth opportunities in the area like transaction platform, the mobile products and used car.

但我們繼續做的是，我們將繼續對銷售、行銷和產品開發進行再投資，並對交易平台、行動產品和二手車等領域的未來成長機會進行投資。

I think if you look at 2014 as we shared previously, we believe that our -- we'll come in at a margin which is in line with the average of the past three years which is about 35%, slightly above that.

我認為，如果你看看我們之前分享的 2014 年，我們相信我們的利潤率將與過去三年的平均水平一致，即 35% 左右，略高於這一水平。

As for 2015, it's probably too early to speculate or provide our thoughts on our speculation. But, we will continue to create value in the auto industry.

至於 2015 年，現在推測或提供我們對推測的想法可能還為時過早。但是，我們將繼續為汽車產業創造價值。

And, going forward, I think we should look at our margin profile by separating the existing business and the new business. I think the existing business includes our media business and lead gen business. We have been successful in these two businesses and are now able to enjoy economy of scale.

而且，展望未來，我認為我們應該透過分離現有業務和新業務來審視我們的利潤狀況。我認為現有的業務包括我們的媒體業務和潛在客戶開發業務。我們在這兩項業務上取得了成功，現在能夠享受規模經濟。

I think new businesses refers to the transaction business and also on a medium- to longer-term, it's referring to used car and aftermarket services. We are still in trial. So that's on the margin side.

我認為新業務是指交易業務，中長期來看，是指二手車和售後服務。我們仍在審判中。所以這是在邊緣方面。

And on the sales and marketing, I think the spending this year for the November 11 will be more or less in line with what we spent last year for the November 11. So because -- if you compare against Q3, obviously, there isn't similar -- there isn't the November 11 event in Q3 this year. So as a basis by itself, the sales and marketing costs will be higher than -- in Q4 will be higher than Q3. But compared with last year, the sales -- the November 11 expenses will be more or less in line.

在銷售和行銷方面，我認為今年 11 月 11 日的支出將或多或少與去年 11 月 11 日的支出一致。因為——如果你與第三季相比，顯然沒有相似之處——今年第三季沒有 11 月 11 日的活動。因此，就其本身而言，第四季的銷售和行銷成本將高於第三季。但與去年相比，銷售——11月11日的支出或多或少會保持一致。

Ella?

艾拉？

Amanda Chen, Morgan Stanley.

阿曼達陳，摩根士丹利。

Gene Munster, Piper Jaffray.

吉恩·蒙斯特，派珀·賈弗雷。

Good evening and congratulations. You talked about increased ad rates. And can you remind me how often you revisit the ad rate pricing?

晚上好，恭喜你。您談到了增加廣告費。您能提醒我您多久重新檢視一次廣告費率定價嗎？

And separately, as you've had obviously success with Autohome Mall, is there any feedback you've had from dealers as you get further down the funnel? Thank you.

另外，由於您在汽車之家商城上取得了明顯的成功，當您進一步深入管道時，您是否從經銷商那裡得到了任何反饋？謝謝。

Okay, the first question is about the price. You mean the price from OEM advertising or the price of dealer subscription?

好的，第一個問題是關於價格。您是指 OEM 廣告的價格還是經銷商訂閱的價格？

The OEM advertising price.

OEM廣告價格。

OEM advertising is, we reserve the right to increase the price twice per year, but usually we only increase price once per year. And that will happen at the end of -- at the beginning of the second quarter.

OEM廣告是，我們保留每年加價兩次的權利，但通常我們每年只加價一次。這將在第二季末發生。

April.

四月。

And the average price increase for the last couple of years, if I remember correctly, probably is around 25% to 30% year over year. So that's one.

如果我沒記錯的話，過去幾年的平均價格漲幅可能在 25% 到 30% 左右。這就是其中之一。

Secondly, it's about the Autohome Mall, what's the reaction from dealers. I think the majority of the dealers view that as a complementary to their existing business. Because, from their point of view, even given the current markup of both Alibaba and [Chengdu], currently the combined GMV only account for around 10% of total China's -- the retail business. So the majority of the dealers at this point don't believe the online will take over their business.

其次是關於汽車之家商城，經銷商的反應如何。我認為大多數經銷商認為這是他們現有業務的補充。因為，從他們的角度來看，即使考慮到阿里巴巴和[成都]目前的加價，目前加起來的GMV也只佔中國零售業務總額的10%左右。因此，大多數經銷商目前並不相信線上會接管他們的業務。

However, because of the Autohome Mall, we actually work hand to -- hand in hand with some of the dealers to provide them the aftermarket services opportunity. Basically, we sell the cars for them and they only need to -- they need to deliver. They need to do the order fulfillment and deliver the car and also the opportunity to capture aftermarket services. So I think right now, from their point of view, this is more like a complementary to their existing business.

然而，因為汽車之家商城，我們實際上與一些經銷商攜手合作，為他們提供售後服務機會。基本上，我們為他們出售汽車，他們只需要——他們需要交付。他們需要履行訂單並交付汽車，並有機會獲得售後服務。所以我認為現在從他們的角度來看，這更像是對他們現有業務的補充。

Okay. That's very helpful. Thank you.

好的。這非常有幫助。謝謝。

Anne Shih, Brean Capital.

Anne Shih，布瑞恩資本。

Hi James, Nicholas. Thanks for taking my question. Could you just comment on the overall outlook for dealer and OEM spending for the rest of this year and perhaps next year given, I think, the lower expectations for auto sales growth?

嗨詹姆斯，尼古拉斯。感謝您提出我的問題。鑑於對汽車銷售成長的預期較低，您能否評論一下今年剩餘時間以及明年經銷商和原始設備製造商支出的總體前景？

The lower expectations on auto sales growth. Actually, I think in terms of industry outlook, we are maintaining a cautiously optimistic about this business because it varies from carmaker to carmaker. For example, in the first nine months of the market, if I remember correctly, I saw an article talking about the BMW China business grow by 18%. However, some of the Japanese brands suffer a decrease in the first seven months of 2014. So it really varies. So we're cautiously optimistic about the auto market outlook in China.

汽車銷售成長預期較低。實際上，我認為就行業前景而言，我們對這個業務保持謹慎樂觀，因為每個汽車製造商的情況有所不同。例如上市前九個月，如果我沒記錯的話，我看到一篇文章說BMW中國業務成長了18%。然而，一些日本品牌在2014年前7個月出現了下滑。所以它確實有所不同。因此我們對中國汽車市場的前景持謹慎樂觀的態度。

However, we do believe we're going to benefit a lot from this [online to offline shift. And, in the short-term, we're taking a measured and cautious approach to develop the transaction platform. And as long as we believe our execution is right, then we think we can provide a long-term growth of our current business.

然而，我們確實相信我們將從這種[線上到線下的轉變]中受益匪淺。而且，在短期內，我們正在採取審慎而謹慎的方法來開發交易平台。只要我們相信我們的執行是正確的，那麼我們就認為我們可以為當前業務提供長期成長。

And in the long run, we're very optimistic and firmly believe the paradigm shift of buying car from offline experience to shift to online experience. Even though definitely we need some breakthrough and that's what we are working on.

從長遠來看，我們非常樂觀並堅信買車模式將從線下體驗轉向線上體驗。儘管我們肯定需要一些突破，這就是我們正在努力的方向。

Thanks. And just a separate question if I could. Just in terms of the competitive kind of dynamics here, what are your thoughts around the increased costs for your marketing spending on say, like navigation pages? Should we expect like considerable increases here or meaningful increases here?

謝謝。如果可以的話，只是一個單獨的問題。就這裡的競爭動態而言，您對導航頁面等行銷支出增加的成本有何看法？我們應該期待這裡的大幅成長還是有意義的成長？

The navigation. Right now I think the navigation is basically fixed price and it's not a -- the price we pay is not pay for performance commercial products rather than it's a fixed fee. It's a cost per time product.

導航。現在我認為導航基本上是固定價格，而不是——我們支付的價格不是為性能商業產品支付的價格，而是固定費用。這是按時間付費的產品。

And the way I see this is that we have some existing presence at the navigation site. As long as the major navigation sites will not aggressively increase their price, then our cost will be -- our cost increase over the navigation site will be somewhat limited.

我的看法是，我們在導航網站上已有一些存在。只要各大導航網站不大幅漲價，那麼我們的成本就會－我們相對於導航網站的成本成長會受到一定程度的限制。

I think right now the focus more or less are on the mobile side. For example, starting from this quarter I would believe it is because of November 11. What we have seen is that at least in October the per active user sort of conversion price on most of the China's Android app stores, have increased significantly; what we believe was the combination of November 11 and the further spending on different China's verticals. For example, some of the group buying companies, some of the -- like 58.com or like those companies are spending more and that will increase the marketing price on mobile applications.

我認為現在的焦點或多或少在行動端。例如，從本季開始，我認為是因為 11 月 11 日。我們看到的是，至少在 10 月份，中國大多數 Android 應用程式商店的每活躍用戶轉換價格都大幅上漲；我們認為，這是 11 月 11 日和中國不同垂直產業進一步支出的結合。例如，一些團購公司，一些像58同城這樣的公司正在花費更多，這將提高行動應用程式的行銷價格。

(Operator Instructions). Amanda Chen, Morgan Stanley.

（操作員說明）。阿曼達陳，摩根士丹利。

Hi. I'm sorry for the disconnection. I only have a very quick one question about the used car business. Do management expect any regulation reform will happen in the short-term, say 2015? And are you going to open this service to individual used car sellers such as JD.com?

你好。對於斷線，我深表歉意。我只有一個關於二手車業務的非常簡短的問題。管理階層是否預期短期內（例如 2015 年）會進行監理改革？你們是否打算向京東等個人二手車賣家開放這項服務？

Sorry I can't -- could you repeat your question. I didn't get it the first time.

抱歉，我不能──你能重複你的問題嗎？我第一次沒明白。

Oh, sure. Just a very quick one. Do you expect any regulation reform will happen in the short-term about the used car market?

哦沒問題。只是一個非常快的。您預計短期內二手車市場的監理改革是否會發生？

Oh, the regulation change because of emission control and registration control. To be honest, I really don't know because it's really difficult to comment on the regulation change and especially with our current government focusing on some other things such as APAC at this point. I don't know.

哦，法規變化是因為排放控制和登記控制。說實話，我真的不知道，因為很難對監管變化發表評論，尤其是我們現任政府目前專注於亞太地區等其他事情。我不知道。

But I think we feel a little bit excited about the fact that more and more VC money start to pour into the used car business because fundamentally, we believe as long as there is enough stakeholders, there should be some underlying lobby for us to make sure the company -- the government will expedite the regulation change. However, I don't really know and it's difficult for me to comment on that.

但我認為我們對越來越多的風險投資開始湧入二手車業務這一事實感到有點興奮，因為從根本上說，我們相信只要有足夠的利益相關者，就應該有一些潛在的遊說團體來確保我們公司--政府將加快監管變革。然而，我真的不知道，我也很難對此發表評論。

Gregory Zhao, Barclays.

格雷戈里·趙，巴克萊銀行。

Hi James and Nicholas. Congratulations on the strong quarter and thanks for taking my question. I only have one question about our Autohome Mall, the upcoming event, promotional event. From the website I can see we are doing some promotion like giving out some Samsonite luggage as a gift for the successful auto transactions. So for such kind of promotions, do we bear the expenses or some dealers will share the expenses with us and where we book such kind of expenses? Thanks.

嗨詹姆斯和尼古拉斯。恭喜本季的強勁表現，並感謝您提出我的問題。我只有一個關於我們汽車之家商城即將舉行的活動、促銷活動的問題。從網站上我可以看到我們正在做一些促銷活動，例如為成功的汽車交易贈送一些新秀麗行李箱作為禮物。那麼這樣的促銷活動，費用是我們自己負擔還是有些經銷商會跟我們分擔費用，我們在哪裡預訂這樣的費用呢？謝謝。

So, for Samsonite I think I already signed the contract. We bought the Samsonite ourselves, so that will be out of our marketing expense.

所以，對於新秀麗，我想我已經簽了合約。我們自己買了新秀麗，因此這將不屬於我們的行銷費用。

Okay. Thank you.

好的。謝謝。

Na You, ICBC International.

遊娜，工銀國際。

Good evening. Thanks for taking my question. A quick follow-up here. Can you share with us how many dealers and automakers are working with your Autohome Mall and do you have any expectations on the revenue generation, the revenue contribution for this business?

晚安.感謝您提出我的問題。這裡快速跟進。您能否與我們分享有多少經銷商和汽車製造商正在與您的汽車之家商城合作？您對這項業務的創收、收入貢獻有何期望？

And also a follow-up on the coming Double 11 campaign. We noticed that there are many players like Alibaba and JD.com and also others, working with automakers and with the dealers independently. Does Autohome -- Autohome Mall working with these platforms together for the coming Double 11?

也是即將到來的雙11活動的後續活動。我們注意到，有許多像阿里巴巴和京東這樣的參與者，與汽車製造商和經銷商獨立合作。汽車之家-汽車之家商城是否會與這些平台合作迎接即將到來的雙11？

So I can't comment on the November 11. So that number is changing every day because it's a one day sales event. And we, you know, probably only on November 10 we're going to have a final number on what is the final term and how many dealers are working with us.

所以我無法對 11 月 11 日發表評論。所以這個數字每天都在變化，因為這是一天的銷售活動。你知道，可能只有到 11 月 10 日，我們才會公佈最終期限以及有多少經銷商與我們合作的最終數據。

And having said that, for the Q3, currently there are 60 -- there are 57 brands working with Autohome Mall. In terms of dealers, I don't have that.

話雖如此，就第三季而言，目前有60個——57個品牌與汽車之家商城合作。就經銷商而言，我沒有。

I think on the -- just to build on what James has said, on Mall Autohome actually so far from June to now, we have worked with 63 brands and 230 car models. So yes, so it's encouraging. We are able to see more and more participation.

我認為，以 James 所說的為基礎，實際上從 6 月至今，我們已經在 Mall Autohome 上與 63 個品牌和 230 個車型進行了合作。所以是的，所以這是令人鼓舞的。我們能夠看到越來越多的參與。

But do we have a long-term contract, a long-term cooperation agreement with the dealers on the Autohome Mall because we are working on this for longer term to (multiple speakers) the transaction platform?

但是我們是否與汽車之家商城的經銷商簽訂了長期合約、長期合作協議，因為我們正在為這個交易平台做更長期的工作？

The term will be more or less like event driven. It's not a long-term contract at this point. Probably it's not a major trend at this point.

這個術語或多或少類似於事件驅動。目前這還不是長期合約。目前這可能不是主要趨勢。

Okay. So are you working with Alibaba and JD.com for the Double 11 together?

好的。那麼雙11你們會和阿里巴巴、京東合作嗎？

No comment. I think it's probably -- well, we don't -- we usually do not comment on other companies.

沒有意見。我認為這可能是——好吧，我們不——我們通常不會對其他公司發表評論。

Anthony Tong, 86 Research.

安東尼唐，86 歲，研究。

Hi. Good evening. Thank you for taking my questions. First of all, a follow-up question on the used car side. James, could you further elaborate your view on the used car market. Is that a huge opportunity, but still very far away or are you already picking up signs auto market is taking off?

你好。晚安.感謝您回答我的問題。首先是二手車方面的後續問題。詹姆斯，您能進一步闡述您對二手車市場的看法嗎？這是一個巨大的機會，但還很遙遠，還是您已經發現汽車市場正在起飛的跡象？

And also could you provide an update on your used car portal, the che168.com? Any color on traffic such as MAU, DAU, user engagement, time spent and the number of used car dealers on the platform, that'll be helpful?

您還可以提供二手車入口網站 che168.com 的最新資訊嗎？平台上的流量（例如 MAU、DAU、用戶參與度、花費時間以及二手車經銷商數量）是否有任何顏色？

And what is the timetable for the monetization going forward? So how do you plan to monetize? Is there going to be any other types of products other than dealer subscription. Any color would be helpful. Thank you.

未來貨幣化的時間表是什麼？那你打算如何獲利呢？除了經銷商訂閱之外，還會有其他類型的產品嗎？任何顏色都會有幫助。謝謝。

So basically there are three questions. First is the outlook of the used car sector. The second one is our DAUs or some other metrics talking about the che168.com. And third one is the outlook of the revenue model of the used car business.

所以基本上有三個問題。首先是二手車產業的前景。第二個是我們的 DAU 或有關 che168.com 的其他一些指標。第三個是二手車業務收入模式的展望。

Yes.

是的。

I think based on the CADA, which is the China Association of Dealers I think, from January to August this year for the passenger car market, the used car is only -- is 2m used car transactions. 2m used car vehicles transact in the -- from January to August. The year-over-year growth is 12.7% based on CADA number.

我認為，根據中國汽車流通協會（CADA）的說法，今年1月至8月，乘用車市場的二手車交易量僅為200萬輛。1 月至 8 月期間交易了 200 萬輛二手車。根據 CADA 數據，年增 12.7%。

On the other hand, the -- from January to August, the new passenger car sales is 12.5m and the year-over-year growth rate is 10.7%. So, the new passenger car market compared with the used passenger car market at this point is 5 to 1 compared with the US, in general, new passenger car market compared with the used passenger car market is usually 1 to 3. So naturally, we all believe that there will be a huge potential for China's used car market in the long run definitely.

另一方面，1-8月，乘用車新車銷量1,250萬輛，較去年同期成長10.7%。所以，此時的新車市場與二手車市場相比，與美國相比是5比1，一般來說，新車市場與二手車市場相比通常是1比3。所以自然地，我們所有人都相信，從長遠來看，中國二手車市場肯定有巨大的潛力。

However, with the current limitation on the regulations, nobody really have a clue that when this market is going to skyrocket. So that's my take on your first question.

然而，由於目前法規的限制，沒有人真正知道這個市場何時會飆升。這就是我對你的第一個問題的看法。

The second question is our che168. I think there is two components of che168. The first one is our PC platform. The second one is our mobile platform. In general, we view that together. And the 2014 Q3, the number of used car listings already topped the 1.8m vehicles in 2014 Q3. So that's the number we disclose at this point.

第二個問題是我們的che168。我認為 che168 有兩個組成部分。第一個是我們的PC平台。第二個是我們的行動平台。總的來說，我們共同看待這一點。而2014年第三季度，二手車掛牌數量已突破2014年第三季的180萬輛。這就是我們目前披露的數字。

The third question is the monetization. I think similar to the new car business, what we envision in the future, the monetization will come from, probably first from the dealer subscription business which will provide baseline subscription for dealers. Secondly, it will provide some of the pay for performance on the lead gen business. And lastly, if some of the OEMs do have a budget to promote on the used car website or used car mobile site we are going to capture that part of the revenue.

第三個問題是貨幣化。我認為與新車業務類似，我們未來的設想是，貨幣化將來自，可能首先來自經銷商訂閱業務，該業務將為經銷商提供基準訂閱。其次，它將為潛在客戶開發業務提供部分績效工資。最後，如果一些原始設備製造商確實有預算在二手車網站或二手車行動網站上進行推廣，我們將獲得這部分收入。

Okay. Thank you.

好的。謝謝。

Wendy Huang, Standard Chartered.

黃溫迪，渣打銀行。

Thank you. Can you share with us your latest thoughts on the M&A? Will you consider to acquire some companies or maybe introduce strategic partners?

謝謝。能與我們分享您對併購的最新想法嗎？您會考慮收購一些公司或引入策略夥伴嗎？

And also secondly, how should we expect dealer subscriber growth in 2015 given the over 50% growth that you have already achieved this year?

其次，鑑於你們今年已經實現了超過 50% 的成長，我們應該如何預期 2015 年經銷商用戶的成長？

And lastly, do you have any number regarding the mobile revenue contribution that you can share with us? Thank you.

最後，您是否有任何有關行動收入貢獻的數字可以與我們分享？謝謝。

So, the first question is about our M&A strategy. Nicholas will take that.

所以，第一個問題是關於我們的併購策略。尼古拉斯會接受的。

On the M&A, we -- obviously we are open minded on that. We will continue to look at opportunities and willing to talk to different people. And then -- but currently we do not have any specific targets.

在併購方面，我們顯然對此持開放態度。我們將繼續尋找機會並願意與不同的人交談。然後——但目前我們沒有任何具體目標。

I'll answer the mobile revenue at this point maybe Nicholas.

我現在會回答行動收入，也許尼可拉斯。

Yes, I will take the second question.

是的，我將回答第二個問題。

The mobile revenue, currently our mobile traffic -- the way we monetize our mobile traffic are two ways. The first one is that some of the OEM will advertise on our mobile platform. So that's both on the mobile sites and mobile applications. So that's one.

行動收入，目前我們的行動流量－我們透過行動流量貨幣化的方式有兩種。第一個是有些OEM會在我們的行動平台上做廣告。這在行動網站和行動應用程式上都是如此。這就是其中之一。

And secondly is for the subscription business, the subscription we provide to dealers cover both mobile generated sales lead and PC generated sales lead. So hopefully in the future, when we introduce more CPL-based product we can specifically money some of the mobile traffic. So currently it's all blending in. The only standalone is the mobile advertising.

其次是訂閱業務，我們提供給經銷商的訂閱既包括行動端銷售線索，也包括PC端銷售線索。因此，希望將來當我們推出更多基於 CPL 的產品時，我們可以專門從一些行動流量中獲利。所以目前一切都在融合。唯一獨立的是行動廣告。

And the mobile revenue in Q3 currently is around 7% of our total -- out of our total OEM advertising business.

目前，第三季的行動收入約占我們總收入的 7%——占我們總 OEM 廣告業務的比例。

And then to comment on the second question, I think we -- what we can see is that we will still be able to continue to grow the number of paying dealers next year. So next year we will be able to have both the growth in terms of volume and ARPU, especially given that right now we have reached up to a critical -- we have a critical mass in the number of -- in the dealers. As mentioned earlier in the discussion, we do -- we were able to roll out more value added products. And so this is to the dealers, which would help us to increase the ARPU.

然後評論第二個問題，我認為我們 - 我們可以看到的是，明年我們仍然能夠繼續增加付費經銷商的數量。因此，明年我們將能夠實現銷售和 ARPU 方面的成長，特別是考慮到目前我們已經達到了經銷商的臨界點——我們的經銷商數量達到了臨界點。如同前面討論中所提到的，我們確實能夠推出更多加值產品。這對經銷商來說也是如此，這將有助於我們提高 ARPU。

Ming Zhao, UBS.

趙明，瑞銀。

Hi James and Nicholas. Thank you for taking my question. Basically, I have two questions.

嗨詹姆斯和尼古拉斯。感謝您回答我的問題。基本上，我有兩個問題。

First is regarding your November 11 sales event. So you mentioned about full price payments. So could you just clarify how you will book the revenue from this event from the transactions? And also could you share if you have any targets for this event? This is the first question.

首先是關於 11 月 11 日的銷售活動。所以你提到了全價付款。那麼您能否澄清一下如何從交易中記入該活動的收入？能否分享一下您對這次活動有什麼目標嗎？這是第一個問題。

And the second question is about the allocation of automakers' marketing budget between the portals and the verticals because what we see in the Q3 is that the marketing share of verticals increased very significantly versus the portals.

第二個問題是關於汽車製造商的行銷預算在入口網站和垂直市場之間的分配，因為我們在第三季看到垂直市場的行銷份額相對於入口網站顯著增加。

We learnt from some automakers that because -- the reason for that is because the market -- the auto demand was quite weak in Q3, therefore, the marketing departments of the automakers shift some of the budgets from the portals to the verticals because the verticals apparently have a better effect in sales lead generation. Could you comment on that? Do you think the trend will sustain going forward in 2015 or do you think there could be a reversal in the trend? Thanks.

我們從一些車企了解到，因為——原因是——市場——第三季度汽車需求相當疲軟，所以車企營銷部門將部分預算從門戶網站轉向垂直行業，因為垂直行業顯然在銷售線索生成方面有更好的效果。你能否對此發表評論？您認為2015年這股趨勢會持續下去還是會逆轉？謝謝。

Okay, I'll answer that part first. I think in general what we have seen is the marketing dollar shift from offline media to online media and among online media, the marketing dollar has shifted from traditional portals to more -- to verticals. So that is the trend what we have seen in the last couple of years and we believe it's going to continue.

好的，我先回答這部分。我認為總的來說，我們看到的是行銷資金從線下媒體轉移到線上媒體，而在線上媒體中，行銷資金已經從傳統入口網站轉移到更多垂直領域。這就是我們在過去幾年中看到的趨勢，我們相信它會繼續下去。

On the specific quarter over quarter, I don't really know because different carmakers has different situations. Some carmaker had a tremendous Q3. Some other carmakers probably don't. So that I don't know. But in general I think more of -- the verticals are going to take more market share in terms of OEM advertising.

至於具體的季度環比，我不太清楚，因為不同的汽車製造商有不同的情況。一些汽車製造商第三季業績出色。其他一些汽車製造商可能不會這樣做。所以我不知道。但總的來說，我認為垂直產業將在 OEM 廣告方面佔據更多市場份額。

And your first part of your question is about the full car price. I think I have to explain a little bit more about the full car price, how we're going to book the revenue. Nicholas is going to answer you in detail.

你問題的第一部分是關於汽車的全部價格。我想我必須更多地解釋一下汽車的總價，以及我們將如何登記收入。尼古拉斯將為您詳細解答。

But I think that is only a small trial. Probably that will be 1%, maybe even less than 1%, of our total number of transactions. Last year we facilitated more than 15,000 transactions last year. I don't think we're going to sell 15,000 cars at the full price through Autohome. So this is only a trial.

但我認為這只是一個小嘗試。可能這將占我們交易總數的 1%，甚至可能不到 1%。去年，我們促成了超過 15,000 筆交易。我認為我們不會透過汽車之家以全價出售 15,000 輛汽車。所以這只是一個試驗。

We need to figure out whether or not China's consumers are willing to pay more than RMB150,000 to a website directly. I think that's the thing we want to try.

我們需要弄清楚中國的消費者是否願意直接向網站支付超過15萬元人民幣的費用。我認為這就是我們想要嘗試的事情。

The majority of the November 11 sales facilitation will be similar to what we have done last year. It will be a little bit tweaked, but similar. Basically, it's still the cash coupon model which is the consumers pay Autohome RMB499 to get a cash coupon and then they go to the participant, the dealers, to negotiate the price and after they negotiate the price, show the SMS or the coupon confirmation and then get the car.

11 月 11 日的大部分銷售促進活動將與我們去年所做的類似。它將略有調整，但相似。基本上還是現金券模式，即消費者支付汽車之家499元獲得現金券，然後去參與者、經銷商那裡談價，談好價格後，出示短信或優惠券確認信息，然後取車。

However, for that one, for the cash coupon business, what we have done this year is we negotiated a deal with the dealers to block a certain amount of inventory. Basically what we say is you know what, this November 11 we are going to sell this number of cars, so please do not sell this number of cars or this number of inventory to other people because we're going to take your inventory. I think that's already a major step ahead because last year it was difficult for us to do that.

但是對於現金券業務來說，我們今年所做的就是和經銷商達成協議，凍結一定量的庫存。基本上我們說的是，你知道嗎，今年 11 月 11 日我們將出售這些數量的汽車，所以請不要將這些數量的汽車或這些庫存數量出售給其他人，因為我們將拿走您的庫存。我認為這已經是向前邁出的一大步，因為去年我們很難做到這一點。

So, as I mentioned, this is a long journey. This is only the beginning of a long journey. And we fully believe with Autohome's tremendous user membership secondly, the way we can facilitate the transaction; lastly the unparalleled content with the professional editorial being the helper for China's consumer to make their purchase decisions, we think in the end that we are going to be the winner of this change. But this is only the beginning of the journey.

所以，正如我所提到的，這是一個漫長的旅程。這只是漫長旅程的開始。其次，我們完全相信汽車之家擁有龐大的用戶會員，我們能夠促進交易的方式；最後是無與倫比的內容，專業的社論成為中國消費者購買決策的幫助者，我們認為最終我們將成為這場變革的贏家。但這只是旅程的開始。

So let's -- do not worry about the new -- the full price transaction. Maybe at the end of the day we can sell, I don't know full numbers here, a 100 cars, but that doesn't mean anything.

因此，讓我們——不要擔心新的——全價交易。也許最終我們可以賣掉 100 輛車，我不知道完整的數字，但這沒有任何意義。

I think the intent is to really test out the process and to be able to add value to the users, the OEMs and the dealers.

我認為目的是真正測試流程並能夠為用戶、原始設備製造商和經銷商增加價值。

I think on the revenue for the November 11 will not be significant because it's basically only a one-day event and we basically will only book the net revenue adding for the coupons and net of some of the related kind of -- any rebates for that. So, it will not be a significant revenue coming out from there. That again, as what we have said just now, is to make sure that it's able to add value to the dealers, OEMs and users.

我認為 11 月 11 日的收入不會很大，因為它基本上只是一個為期一天的活動，我們基本上只會預訂優惠券的淨收入以及一些相關類型的淨收入 - 任何回扣。因此，那裡不會產生大量收入。正如我們剛才所說，這也是為了確保它能夠為經銷商、原始設備製造商和用戶增加價值。

I think the -- because a lot of the -- I have frequent discussions with a lot of you guys, I can promise you this. Once we complete our first 1,000 new car full price transactions, we're going to happily report to you the split and what we have done and what is -- going forward, what we will do.

我認為——因為很多——我經常與你們很多人討論，我可以向你們保證這一點。一旦我們完成了第一批 1,000 輛新車全價交易，我們將很高興地向您報告分拆情況、我們已經做了什麼、以及未來我們將做什麼。

Currently I think it's too immature for us to share more color with you because it's only a trial and error process and inevitably, every great company need to go through that.

目前我認為我們與你們分享更多的色彩還太不成熟，因為這只是一個反覆試驗的過程，不可避免地，每個偉大的公司都需要經歷這個過程。

All right, thank you very much for joining us today. And we appreciate your support and we look forward to updating you on our fourth quarter 2014 conference call in a few months' time. In the meantime, please feel free to get in touch with us if you have further questions, concerns or comments. And thank you everyone.

好的，非常感謝您今天加入我們。我們感謝您的支持，並期待在幾個月後向您通報 2014 年第四季電話會議的最新情況。同時，如果您有其他問題、疑慮或意見，請隨時與我們聯繫。謝謝大家。

Thank you.

謝謝。

That does conclude our conference for today. Thank you for participating. You may all disconnect.

我們今天的會議到此結束。感謝您的參與。你們都可以斷開連線。