Autohome Inc (ATHM) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by for Autohome's third quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. (Operator Instructions) A live and archived webcast of this earnings conference call will also be available on Autohome's IR website.

女士們、先生們，感謝你們出席汽車之家 2024 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。 （操作員說明）本次收益電話會議的現場直播和存檔網路廣播也將在 Autohome 的 IR 網站上提供。

It is now my pleasure to introduce your host, Sterling Song, Autohome's IR Director. Mr. Song, please go ahead.

現在我很高興向您介紹主持人，汽車之家的 IR 總監 Sterling Song。宋先生，請講。

[Thank you, operator. Hello everyone and welcome to Autohome's third quarter 2024 earnings conference call. Earlier today, Autohome distributed its earnings release, which can be found] on the Company's website at ir.autohome.com.cn. Joining me on today's call are Chief Executive Officer, Mr. Tao Wu; and Chief Financial Officer, Mr. Craig Yan Zeng. Management will go through their prepared remarks, which will be followed by a Q&A session where they will be available to answer all your questions.

【謝謝你，接線生。大家好，歡迎參加汽車之家2024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，該財報可在公司網站 ir.autohome.com.cn 上找到。與我一起參加今天電話會議的是執行長吳濤先生；及財務長曾彥先生。管理層將審查他們準備好的發言，然後進行問答環節，他們將回答您的所有問題。

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

在我們繼續之前，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。所不同與我們目前的預期相差很大。

Potential risks and uncertainties include, but are not limited to those outlined in our public filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. Autohome doesn't undertake any obligation to update any forward-looking statements, except as required under applicable law.

潛在風險和不確定性包括但不限於我們向美國證券交易委員會和香港證券交易所公開提交的文件中概述的風險和不確定性。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。

Please also note that Autohome's earnings press release and this conference call include discussions of certain unaudited non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release today.

另請注意，汽車之家的收益新聞稿和本次電話會議包括對某些未經審計的非公認會計準則財務指標的討論。我們今天發布的財報中可以找到非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節表。

I will now turn the call over to Autohome's CEO, Mr. Wu for the opening remarks. Please go ahead, Mr. Wu.

現在請汽車之家執行長吳先生致開幕詞。吳先生，請繼續。

(interpreted) Thank you, Sterling. Hello, everyone. This is Tao Wu, CEO of Autohome, and thank you for joining our earnings conference call today.

（翻譯）謝謝你，斯特林。大家好。我是汽車之家執行長吳濤，感謝您參加今天的財報電話會議。

In the third quarter, we continued to advance our integrated online-to-off-line ecosystem strategy, focusing on deepening engagement across the entire value chain, while further optimizing our business structure.

第三季度，我們持續推動線上線下一體化生態策略，重點深化全價值鏈參與，同時進一步優化業務結構。

On the online front, we are leveraging our new professional content and product matrix to strengthen our differentiated competitive advantages, which has lead to a steady increase in our traffic scale. In September, our average mobile DAUs increased 5.6% year over year to exceed 70 million for the first time, underscoring our expanding influence among users.

線上方面，我們利用新的專業內容與產品矩陣，強化差異化競爭優勢，流量規模穩定提升。 9月，我們的平均行動DAU年增5.6%，首度突破7,000萬，用戶影響力不斷擴大。

In terms of our offline offerings, we are focused on low-tier markets with the deployment of initiatives like the "Hundred Cities Trade-in for New." In the first three [quarters] (corrected by company after the call) of this year, we successfully organized over five hundred offline auto shows providing consumers in these regions with a seamless one-stop service experience that spans from car selection, viewing, and test driving to purchase, making the process more convenient than ever.

線下方面，我們聚焦低線市場，進行「百城以舊換新」等措施。今年前三季（公司通報後更正），我們成功舉辦了五百多場線下車展，為這些地區的消費者提供了選車、看車、買車的一站式無縫服務體驗。購買，讓流程比以往更方便。

Additionally, by leveraging the products and services available through our franchise stores, we are able to offer comprehensive and integrated online-to-offline solutions that further optimize our customers' business operations. Driven by robust growth in our new retail business, revenues from online marketplace and others increased 3.1% year over year during the third quarter.

此外，透過利用我們的特許經營店提供的產品和服務，我們能夠提供全面、整合的線上到線下解決方案，進一步優化客戶的業務運作。在新零售業務強勁成長的帶動下，第三季來自線上市場等的營收年增3.1%。

Notably, we significantly accelerated the expansion of our new retail business into lower-tier cities this quarter. To date, we have a nationwide network of more than 50 stores with Autohome Space stores in mid- to higher-tier cities and satellite stores in mid- to lower-tier cities.

值得注意的是，本季我們大幅加快了新零售業務向低線城市的擴張。迄今為止，我們在全國擁有超過50家門市網絡，其中汽車之家空間門市位於中上線城市，衛星店位於中下線城市。

The expansion and growing scale of our channels not only demonstrate the adaptability of our business model across a wider range of cities, but also lays the foundation for the integration of our platform capabilities, enables collaboration with partners along the industry value chain and allows us to explore and develop additional innovative business model in the future.

通路的拓展和規模的不斷擴大，不僅體現了我們的商業模式在更廣泛城市的適應性，也為我們平台能力的整合奠定了基礎，實現了與行業價值鏈上合作夥伴的協作，使我們能夠未來探索並發展更多創新商業模式。

In terms of digitalization, we are leveraging our combined capabilities in data, technology, and platforms to continuously enhance the coverage of our digital products. Additionally, we have expanded the application of artificial intelligence technology across various products to enhance the quality and efficiency of our customers' operations.

在數位化方面，我們運用數據、技術、平台的綜合能力，不斷提升數位化產品的覆蓋範圍。此外，我們也擴大了人工智慧技術在各種產品中的應用，以提高客戶營運的品質和效率。

Furthermore, our cooperation with Ping An Group has hit new heights with the introduction of a series of innovative products and services across our traditional businesses, as well as data products, used cars, and aftermarket sectors, further strengthening our unique competitive advantages in these areas.

此外，我們與平安集團的合作也再上新台階，在傳統業務、數據產品、二手車、後市場等領域推出了一系列創新產品和服務，進一步增強了我們在這些領域的獨特競爭優勢。

Looking to the future, we will further strengthen our local presence in lower-tier markets to enhance our brand influence while adapting to evolving market dynamics. Our commitment to driving product innovation and broadening our business horizons remains firm, as we contribute to the industry's development.

展望未來，我們將進一步加強在低線市場的本土佈局，提升品牌影響力，同時適應不斷變化的市場動態。我們堅定不移地致力於推動產品創新和拓寬業務視野，為產業發展做出貢獻。

At the same time, we will fully leverage Ping An Group's offline resources and after-market service capabilities to amplify synergies and solidify our differentiated competitive advantages. We are confident that these initiatives will enable us to create greater value for the industry and support our long-term sustainable development.

同時，我們將充分利用平安集團的線下資源和售後服務能力，放大綜效，鞏固差異化競爭優勢。我們相信，這些舉措將使我們能夠為產業創造更大的價值，並支持我們的長期永續發展。

With that, I will now turn the call over to our CFO, Craig Zeng, for a closer look at our third quarter 2024 operating and financial results.

現在，我將把電話轉給我們的財務長 Craig Zeng，詳細了解我們 2024 年第三季的營運和財務表現。

(interpreted) Thank you, Mr. Wu. Hello, everyone. I'm Craig Zeng, the CFO of Autohome.

（譯）謝謝吳先生。大家好。我是曾克雷格，汽車之家的財務長。

In the third quarter, we continued to enhance our content and tools by successfully introducing the “Autohome AH+” content matrix and the “Real-Scenario Intelligent Evaluation System” to create a rich array of high-quality content. Additionally, we launched an industry-leading scenario-based vehicle model library that integrates real-life car-usage scenario, providing users with a more relevant and practical guide for vehicle selection.

第三季度，我們持續強化內容和工具，成功推出“汽車之家AH+”內容矩陣和“真實場景智慧評測系統”，打造豐富的優質內容內容。此外，我們也推出了業界領先的場景化車輛模型庫，融合真實的用車場景，為使用者提供更貼切、更實用的選車指南。

Specifically, our original content matrix now covers more than 13 programs, covering 4 key segments, including new cars, car evaluations, car culture, and the auto industry. We offer authentic and practical information to users through live streaming and videos, addressing a wide range of challenges they encounter throughout the entire lifecycle of car ownership.

具體來說，我們原有的內容矩陣現已涵蓋超過13個節目，涵蓋新車、汽車評測、汽車文化、汽車產業4個關鍵細分領域。我們透過直播和影片為用戶提供真實、實用的訊息，解決他們在汽車擁有的整個生命週期中遇到的各種挑戰。

Our intelligent evaluation system focuses on core product features, such as advanced driver assistance and smart cockpits, combining professional evaluation capabilities with users' real-life scenarios. Through professional field test, multi-dimension vehicle reviews and comparisons, and live streaming of technical insights, we delivered the most practical and relevant smart evaluation results to our users.

我們的智慧評測系統聚焦於進階駕駛輔助、智慧座艙等核心產品功能，將專業評測能力與使用者的實際場景結合。透過專業的現場測試、多維度的車輛評測對比、技術見解直播，為使用者提供最實用、最貼切的智慧評測結果。

On tools, our scenario-based image library covers three core viewing scenarios: nighttime, spatial and intelligent car viewing. The innovative tool provides users with an intuitive understanding of our vehicles' aesthetics, functionality and smart capabilities - significantly improving the efficiency and convenience of the car selection process.

在工具上，我們的場景圖庫涵蓋了夜間、空間、智慧汽車三大核心觀看場景。這項創新工具讓使用者能夠直觀地了解我們車輛的美觀、功能和智慧能力，從而顯著提高選車過程的效率和便利性。

We also upgraded our benefits platform to aggregate various policies, subsidies, and other promotional information in real-time, providing users with a one stop information platform to automatically match and calculate discounts. Additionally, leveraging our upgraded algorithm and the user and vehicle data we have mined, we have deployed tools such as AIGC and chatbots across multiple scenarios including search, live [broadcasting] (corrected by company after the call), and instant messaging.

我們也升級了福利平台，即時聚合各類政策、補貼等促銷訊息，為用戶提供自動配對、運算折扣的一站式資訊平台。此外，利用我們升級的演算法以及我們挖掘的用戶和車輛數據，我們在多個場景中部署了 AIGC 和聊天機器人等工具，包括搜尋、直播（由公司在通話後修正）和即時訊息。

This deepens interaction with users, increases the speed and accuracy of response, and improves the overall user experience. According to QuestMobile, the number of our average mobile DAUs grew by 5.6% year over year, reaching 72.87 million in September, demonstrating our leading position in the automotive media vertical.

這加深了與用戶的交互，提高了響應速度和準確性，並改善了整體用戶體驗。根據QuestMobile的數據，9月我們的平均行動DAU數量年增5.6%，達到7,287萬，彰顯了我們在汽車媒體垂直領域的領先地位。

Turning to NEVs, Our “Satellite Plan” was widely implemented in the third quarter. To date, we've established over 50 franchised Autohome Space stores and satellite stores across China, marking the initial scaling of our expansion into lower-tiered markets.

在新能源汽車方面，我們的「衛星計畫」在第三季廣泛實施。迄今為止，我們已在全國建立了超過50家汽車之家空間專營店和衛星店，標誌著我們初步擴大了向低線市場的擴張。

The seamless collaboration between Autohome Space and the satellite stores have facilitated the creation of an efficient network channel. This collaboration encourages resource sharing and offers complementary advantages, providing NEV manufacturers with channel support in cities where they don't have a presence.

汽車之家空間與衛星店的無縫協作，打造了高效率的網路管道。此次合作，資源共享、優勢互補，為新能源汽車廠商在未涉足的城市提供通路支援。

The ongoing expansion of our offline service network enables us to provide Business-end customers with localized and integrated online and offline solutions, while also tapping into and collecting Consumer-end needs in the mid- to lower-tier cities. Going forward, we will further explore the potential of the regional satellite stores, leveraging our platform advantages to integrate resources throughout the industry value chain and pursue even more innovative business models.

線下服務網路的不斷拓展，使我們能夠為企業端客戶提供本地化、線上線下一體化的解決方案，同時挖掘和收集中下線城市的消費端需求。未來，我們將進一步挖掘區域衛星店的潛力，發揮平台優勢，整合全產業鏈資源，探索更創新的商業模式。

In addition, we also leveraged Ping An's unique resources to pilot financial insurance services in the stores. This expands the financial product offering available through Autohome Space stores, broadens our service scope, and diversifies revenue streams.

此外，我們也運用平安獨特的資源優勢，在門市試辦金融保險服務。這擴大了汽車之家空間商店提供的金融產品，擴大了我們的服務範圍，並使收入來源多樣化。

For instance, we integrated Ping An's car owner service capabilities to launch a unique industry offering – “Price Guarantee Heartfelt Benefits package” - which provides purchase protection and healthcare for consumers who purchase cars through our franchised stores. We are pleased to see revenues from NEV brands continue to grow and consistently outpace the industry sales growth rates during the quarter, increasing 54% compared to the same period last year.

例如，我們整合平安車主服務能力，推出業界獨有的“保價貼心禮包”，為透過我們的專營店購車的消費者提供購車保障和醫療保健。我們很高興看到新能源汽車品牌的收入持續成長，並持續超過行業銷售成長率，與去年同期相比成長了 54%。

On the digital front, we combined Ping An Group's strength in after-sales scenarios and offline service capabilities during the third quarter to launch an outbound calls platform and maintenance assistant for after-sales services, as well as digital services for vehicle trade-ins. The former enables maintenance facilities to reduce customer acquisition costs and improve invitation and return with efficiency, while the latter utilizes Ping An's offline team to provide one-on-one consulting services to customers for trade-in vehicles across multiple scenarios.

數位化方面，第三季我們結合平安集團在售後場景和線下服務能力的優勢，推出了售後服務的外撥平台和維修助手，以及車輛以舊換新的數位化服務。前者幫助維修機構降低獲客成本，提高邀約和回訪效率，後者則利用平安線下團隊為客戶提供多場景的以舊換新車輛一對一諮詢服務。

This effectively improves transaction conversion rates and has generated positive feedback from the market. During the first nine months of this year, revenue from data products increased by 8% year over year.

這有效地提高了交易轉換率，並獲得了市場的正面回饋。今年前9個月，數據產品營收年增8%。

For used car business, we've effectively integrated the resources of Autohome and Ping An Group to strengthen the synergies with TTP. For example, leveraging our franchised stores and Ping An's offline team, we've increased the supply of vehicles for auction from 4S dealerships for TTP.

二手車業務方面，我們有效整合汽車之家和平安集團的資源，並加強與TTP的綜效。例如，我們利用我們的專營店和平安的線下團隊，為TTP增加了4S經銷店的拍賣車輛供應。

At the same time, through Ping An Group and Autohome's used car teams, we have assisted TTP in expanding its merchant buyer base nationwide, driving demand for across-regional car purchases. These initiatives have effectively increased transaction volumes and prices and enabled TTP to expand its business while carefully managing costs.

同時，透過平安集團與汽車之家的二手車團隊，協助TTP在全國擴大商家買家群體，帶動跨區域購車需求。這些措施有效提高了交易量和價格，使 TTP 能夠在謹慎管理成本的同時擴大業務。

Overall, our businesses made steady progress in the third quarter. Our innovative businesses laid out earlier have proven effective as we continuously optimize and expanded the practical applications. These achievements drove the growth of our online marketplace and others revenue in this quarter. As we deepen our cooperation with Ping An Group, we are gradually rolling out additional unique products across various business scenarios. At the same time, we are actively enhancing shareholder returns through dividends and stock repurchases. Looking ahead, we remain committed to optimizing operational efficiency to support our long-term high-quality development.

總體而言，第三季我們的業務穩步發展。我們前期佈局的創新業務，隨著我們不斷優化和拓展實際應用，已經被證明是有效的。這些成就推動了本季我們線上市場和其他收入的成長。隨著我們與平安集團的合作不斷深入，我們正在逐步推出更多跨業務場景的特色產品。同時，我們積極透過分紅、股票回購等方式提升股東回報。展望未來，我們將持續致力於優化營運效率，並支撐公司長期高品質發展。

Next, let me briefly walk you through the key financials for the third quarter of 2024. Please note that as with prior calls, I will reference RMB only in my discussion today, unless otherwise stated.

接下來，讓我簡要介紹一下 2024 年第三季的主要財務數據。

Net revenues for the third quarter were 1.77 billion. Breaking it down, media services revenues were 326 million, leads generation services revenue were 831 million, and online marketplace and others revenues were 618 million, up 3.1% year over year.

第三季淨營收為17.7億美元。其中，媒體服務收入為3.26億美元，銷售線索生成服務收入為8.31億美元，線上市場及其他收入為6.18億美元，較去年同期成長3.1%。

Cost of revenues in the third quarter was 408 million, compared to 374 million in the third quarter of 2023. Gross margin in the third quarter was 77%, compared to 80.4% during the same period last year.

第三季營收成本為4.08億美元，而2023年第三季為3.74億美元。

Turning to operating expenses. Sales and marketing expenses in the third quarter were 877 million, compared to 935 million in the third quarter of 2023. Product and development expenses were 339 million, compared to 355 million in the third period of 2023. General and administrative expenses were 137 million, compared to 141 million during the same period last year.

轉向營運費用。第三季的銷售和行銷費用為8.77 億美元，而2023 年第三季為9.35 億美元。億美元，相較之下，去年同期為 1.41 億美元。

Overall, we delivered an operating profit of 83 million in the third quarter, compared to 166 million for the same period of 2023. Adjusted net income attributable to Autohome was 497 million in the third quarter, compared to 604 million in the corresponding period of last year.

整體而言，我們第三季實現營業利潤8,300萬，而2023年同期為1.66億。

Non-GAAP basic and diluted earnings per share in the third quarter were 1.02, compared to 1.23 in the corresponding period of 2023. Non-GAAP basic and diluted earnings per ADS in the third quarter were 4.09 and 4.08, respectively, compared to 4.93 and 4.92, respectively in the corresponding period of 2023.

第三季非GAAP 基本及稀釋每股盈餘為1.02，而2023 年同期為1.23。 。

As of September 30, 2024, our balance sheet remained very strong with cash, cash equivalents, and short-term investments of 23.06 billion. We generated net operating cash flow of 209 million in the third quarter of 2024.

截至 2024 年 9 月 30 日，我們的資產負債表仍然非常強勁，現金、現金等價物和短期投資為 230.6 億美元。 2024 年第三季度，我們產生淨營運現金流 2.09 億。

On September 4, 2024, our Board of Directors authorized a new share repurchase program under which we were committed to repurchase up to USD200 million of Autohome's ADSs for a period not to exceed 12 months thereafter. As of November 1, 2024, we have repurchased approximately 244,000 ADSs for a total cost of approximately USD6.7 million.

2024年9月4日，我們的董事會批准了一項新的股票回購計劃，根據該計劃，我們承諾在此後不超過12個月的期限內回購最多2億美元的汽車之家美國存託憑證。截至2024年11月1日，我們已回購約244,000股ADS，總成本約670萬美元。

In addition, in accordance with our dividend policy, our Board of Directors has approved a cash dividend of USD1.15 per ADS or USD0.2875 per ordinary share payable in the U.S. dollars to holders of ADSs and ordinary shares of record as of the close of business on December 31, 2024.

此外，根據我們的股利政策，我們的董事會已批准向截至收盤時在冊的美國存託股和普通股持有人以美元支付每股美國存託股1.15 美元或每股普通股0.2875 美元的現金股息。

This aggregate amount of the dividend will be approximately 1 billion and is expected to be paid to holders of ordinary shares and ADSs of the Company on or around March 14, 2025, and March 19, 2025, respectively. This reflects our strong confidence in our business and future development, as well as our strong commitment to maximizing shareholder returns.

股息總額約10億美元，預計將分別於2025年3月14日和2025年3月19日左右支付給公司普通股和美國存託股持有人。這體現了我們對業務和未來發展的堅定信心，以及我們對股東回報最大化的堅定承諾。

The above is our financial summary. With that we are ready to open up the Q&A session. Operator, please.

以上是我們的財務摘要。這樣我們就可以開始問答環節了。接線員，請說。

(Operator Instructions) Thomas Chong, Jefferies.

（操作員說明）Thomas Chong，Jefferies。

(spoken in Chinese) Thanks, management, for taking my question. I'd like to ask about the ongoing price war and the trade-in program. What are the impacts to the industry and Autohome? Thank you.

（中文） 謝謝領導回答我的問題。我想問一下正在進行的價格戰和以舊換新計劃。對產業和汽車之家有何影響？謝謝。

(interpreted) Okay. Thank you for raising the question. We see that with major car companies fighting price war to grab the market share, which has lasted for more than 1.5 years now. According to our observation, this trend has eased slightly recently, but there is no sign of ending in the short term.

（解釋）好的。感謝您提出問題。我們看到各大車為了搶佔市場份額而打價格戰，目前已經持續了1.5年多。據我們觀察，近期這一趨勢略有緩和，但短期內尚無結束的跡象。

However, the ongoing price war did not bring the explosion of the car sales growth. According to the latest data from CPCA, retail sales increased by only 2.2% year over year from January to September. The price war has also quickly hurt the profitability of the car companies. From January to September, we see that the average profit margin of the auto industry was only 4.6%, much lower than the average level of the industrial enterprise profit margin of 6.1% in the same period.

然而，持續的價格戰並沒有帶來汽車銷售的爆發式成長。 CPCA最新數據顯示，1-9月社會消費品零售總額較去年同期僅成長2.2%。價格戰也迅速損害了車企的獲利能力。 1-9月，我們看到汽車業平均利潤率僅4.6%，遠低於同期工業企業利潤率6.1%的平均水準。

Meanwhile, dealers are facing tremendous operating pressure due to ongoing price war. According to China Automobile Dealers Association, survey report on the survival of the dealers in the first half of 2024, less than 30% of the auto dealers accomplished their sales target in the first half of the year, and a large proportion of them reached their sales targets by exchanging price for volume.

同時，價格戰持續不斷，經銷商面臨巨大的經營壓力。根據中國汽車流通協會《2024年上半年經銷商生存狀況調查報告》顯示，上半年完成銷售目標的汽車經銷商不到30%，其中很大一部分達到了銷售目標。目標。

In addition, the proportion of dealers operating under loss reached 50.8%, expanding significantly compared with the same period of last year. And the average total gross profit of a single store also had a large drop, especially in the new car business, with an average single-store loss of RMB1.78 million.

此外，虧損經營的經銷商比例達50.8%，較去年同期大幅擴大。而單店平均總毛利也出現較大下滑，尤其是新車業務，單店平均虧損178萬元。

Generally speaking, the price war in the auto market has caused the car enterprises and dealers to suffer more seriously negative impact. Under such circumstances, China has introduced the policy of trade-in and also upgraded the vehicle scrapping to help release the consumption potential in an orderly manner and to promote the common development of both supply and demand side.

整體來看，汽車市場的價格戰給車企和經銷商帶來了較為嚴重的負面影響。在此情況下，我國推出以舊換新政策，同時升級汽車報廢，有助於有序釋放消費潛力，並促進供需雙方共同發展。

From the data disclosed by CPCA under the stimulation of the policy, the auto market has been picking up recently. The domestic retail penetration of NEV has exceeded 50% for three consecutive months. The retail sales of new energy vehicles in September increased by 10.6% from the previous month, and the wholesale of overall passenger vehicle hit a new record time for the same month which helped to restore confidence in the auto industry.

從乘聯會揭露的數據來看，在政策的刺激下，近期車市呈現回暖態勢。新能源汽車國內零售滲透率連續三個月超過50%。 9月新能源汽車零售量較上季成長10.6%，當月乘用車整體批發量再創歷史新高，有助於汽車產業信心的恢復。

The fierce price war that lasted from last year till now has resulted in a serious decline of profit of the automakers and a contraction in the marketing budget of the OEMs. And we have also been affected by the industry to a certain extent.

去年持續至今的激烈價格戰，導致整車廠獲利嚴重下滑，整車廠行銷預算緊縮。而且我們也受到了一定程度的產業影響。

However, in the long run, with the price war gradually slowing down, the continued development of the NEV industry as well as the government introduction of the new favorable policy to support consumption, we believe that auto market will have good potential for future growth in the long run. And we are also optimistic about the longer-term development of China's auto industry, and we will also be developing in a sound manner together with China's auto industry. Thank you.

但長期來看，隨著價格戰的逐漸放緩、新能源汽車產業的持續發展以及政府推出新的支持消費利好政策，我們認為未來汽車市場將具有良好的成長潛力。而且我們也看好中國汽車工業的長遠發展，也將與中國汽車工業一起健康發展。謝謝。

Xiaodan Zhang, CICC.

張曉丹，中金公司。

(spoken in Chinese) So thanks management for taking my question. My first question is on the new retail model of NEVs. So could you please update us on the progress of the “Satellite Plan”? And how should we think of the expansion pace for now and next year?

（中文發言）非常感謝管理階層提出我的問題。我的第一個問題是關於新能源汽車新零售模式的問題。您能否向我們介紹一下「衛星計畫」的最新進展？我們該如何看待現在和明年的擴張速度？

And secondly, could you please give us more color on how we are going to look for more business synergies between Autohome and Ping An Group? Thank you.

其次，您能否詳細介紹我們將如何在汽車之家和平安集團之間尋求更多的業務綜效？謝謝。

(interpreted) Okay. Thank you for raising this question. I'll firstly take the first question. At present, the Autohome Space stores and the satellite stores altogether has already exceeded 50. In terms of the city layout, the space stores mainly cover mid- to high-tier cities, while satellite stores mainly cover mid- to low-tier cities.

（解釋）好的。感謝您提出這個問題。我先回答第一個問題。目前，汽車之家空間店和衛星店合計已超過50家。

So this kind of 1+N model with the space store and the core while surrounded by the satellite store can make us quickly penetrate into the lower-tier cities with a network service and reaching up quickly to our clients so as to facilitate the OEMs in their channels with uncovered cities.

所以這種以空間店為核心，以衛星店為中心的1+N模式，可以讓我們透過網路服務快速滲透到二、三線城市，快速觸達客戶，方便主機廠的發展。渠道。

In terms of the performance of the Space stores as well as the satellite stores, we see that it actually facilitate OEMs to realize the optimization of their cost efficiency, while at the same time, it also helped the OEMs to lower their channel expansion cost while increasing the sales efficiency.

從太空店和衛星店的表現來看，我們看到它實際上幫助主機廠實現了成本效率的最佳化，同時也幫助主機廠降低了通路拓展成本，同時也幫助主機廠降低了通路拓展成本。銷售效率。

At present, we see that the overall market feedback is very positive. While at the same time, it also generate extra revenue for Autohome. With every increase in penetration of the NEV market, we see that with that great synergy of the Space store as well as the satellite store, we can quickly facilitate the upgrading from the new tail network, single-point coverage to comprehensive coverage.

目前我們看到整體市場回饋是非常正面的。同時，也為汽車之家帶來了額外的收入。隨著新能源汽車市場滲透率的每一次提升，我們看到透過太空店和衛星店的巨大協同作用，我們可以快速推動新尾網從單點覆蓋到全面覆蓋的升級。

While at the same time, the NEV brand revenue steadily grow, while, at the same time, it continued to outperform the overall NEV market, showing very sound market adaptability and competitive edge.

同時，新能源汽車品牌營收穩定成長，同時持續跑贏整體新能源汽車市場，展現非常好的市場適應能力和競爭優勢。

So looking to the future, we are also going to work by both legs. On the one hand, we are going to grow the number of the stores. We are going to make our business model even more sound and robust to gain more recognition from the OEMs.

所以展望未來，我們也將雙腿並進。一方面，我們要增加門市數量。我們將讓我們的商業模式更加健全和穩健，以獲得主機工廠更多的認可。

The existing franchise stores will keep upgrading, including the integration of the industrial chains as well as the in-store financial insurance, so that actually the franchise stores business expansion can cover more wide range of the area. So actually, both area. One is to grow the volume. The other thing is to have more explorations and upgrading in the business models.

現有的加盟店將不斷升級，包括產業鏈的整合以及店內金融保險，使加盟店的業務拓展能夠真正覆蓋到更廣泛的區域。所以實際上，這兩個區域。一是擴大規模。另外就是在商業模式上有更多的探索和升級。

As for your second question, which is about the synergy between Autohome and Ping An P&C, we see that in the traditional business -- for example, we have cohosted the “Hundred Cities Trade-in for New” campaigns, so that we can leverage on the strength of the Ping An offline team and to reach out to the uncovered cities of Autohome.

至於你提到的第二個問題，汽車之家和平安產險之間的協同效應，我們看到在傳統業務上，比如我們聯合舉辦了“百城以舊換新”活動，這樣，我們可以藉助平安線下團隊的力量，觸達汽車之家未覆蓋的城市。

We also jointly launched more than 500 offline auto shows, covering more than 250 cities nationwide, so as to focusing on the lower-tier market to create transaction scenario and to build a differentiated competitive edge.

我們也聯合推出超過500場線下車展，覆蓋全國250多個城市，聚焦低線市場，打造交易場景，打造差異化競爭優勢。

In terms of the new retail, we also leverage on Ping An's resources and also piloted with our Autohome in-store financial services, including the financial insurance, and further expanded the financial product offerings. While at the same time, we also respond to the trade-in policy of the national government so as to integrate our service capabilities to the auto buyers and to provide what I mentioned before, the “Price Guarantee Heartfelt Benefits package”, so as to bring the one-stop service to the doorstep of the consumers and to provide the car purchase guarantee for the consumers.

新零售方面，我們也藉助平安的資源，試辦了汽車之家的金融保險等到店金融服務，進一步豐富了金融產品種類。同時我們也響應國家政府的以舊換新政策，整合我們的服務能力給購車者提供我之前提到的“保價貼心禮包”，從而將一站式服務送到消費者家門口，為消費者提供購車保障。

As for the data product, we also leverage on the strength of Ping An Group in after-market scenario as well as offline service capabilities. We launched the outbound call platform, the maintenance assistance, as well as digital services for the trade-in vehicles. We also take good use of the offline team of Ping An so as to provide one-on-one consulting services for the trade-in car users at multiple scenarios so as to effectively promote conversion.

在資料產品方面，我們也藉助了平安集團在後市場場景以及線下服務能力的優勢。推出外撥平台、維修協助、以舊換新車輛數位化服務。我們也充分利用平安線下團隊，多場景為以舊換新汽車用戶提供一對一諮詢服務，有效促進轉換。

In terms of the used car business, Autohome has integrated the resources with Ping An Group to strengthen the synergy of TTP. For example, the Ping An auto loan agent facilitated TTP to increase the vehicle sources from 4S dealerships. And Ping An leasing team also helped the TTP to increase the cooperation with the merchants. All of this measures effectively increased the transaction volume and also enabling TTP to enhance their service capabilities for further business expansion.

在二手車業務方面，汽車之家與平安集團整合資源，強化TTP綜效。例如，平安車貸代理協助TTP增加4S經銷店的車源。而平安租賃團隊也幫助TTP加大了與商家的合作。這些措施有效增加了交易量，也使TTP能夠增強服務能力，進一步拓展業務。

So generally speaking, we will actually leverage on both online as well as offline strength of Ping An Group. We will also explore more business models so as to expand the possibilities of our service deliveries. Next question, please.

所以總的來說，我們實際上會利用平安集團線上和線下的力量。我們還將探索更多的商業模式，以擴大我們服務交付的可能性。請下一個問題。

Ritchie Sun, HSBC.

孫瑞奇，匯豐銀行。

(spoken in Chinese) Thank you, management, for taking my question. I have two. First of all, what is management's view on 2025 used car market? And how does management view the goal for TTP next year?

（中文發言） 謝謝領導回答我的問題。我有兩個。首先，管理階層對2025年二手車市場有何看法？管理階層如何看待明年的TTP目標？

Second, what has management -- what has Autohome made in terms of shareholder return progress? And what is the plan for the future? Thank you.

第二，管理階層－汽車之家在股東回報方面取得了哪些進展？以及未來的計劃是什麼？謝謝。

(interpreted) Okay. Thank you for raising this question. Let me firstly take the first question. Like I said before, based on the more than one-year price war of the new car market, it do actually imposes a huge pressure on the used car market.

（解釋）好的。感謝您提出這個問題。我先回答第一個問題。正如我之前所說，基於新車市場一年多的價格戰，確實給二手車市場帶來了巨大的壓力。

So with continuous downward pressure of the new car price, we see that the users are quite reluctant to make their purchase. As a result, the used car market in China for several consecutive quarters continues to be sluggish. And you can see that the auto dealers, they are not very enthusiastic in their car purchase.

所以在新車價格持續下行的壓力下，我們看到用戶的購買意願相當低。受此影響，中國二手車市場連續幾季持續低迷。而且你可以看到，汽車經銷商的購車熱情並不高。

Even though there are policy updates such as scrappage, however, as well as what you have observed from January to September of 2024, the cumulative trading volume of the used car only increased by 5.37%, which has greatly declined comparing with the same period of last year.

儘管有報廢等政策更新，但從大家觀察的2024年1-9月來看，二手車累計交易量僅增加了5.37%，與同期相比大幅下滑。

Even though there are policy preferences, we do see that profitability of the automakers are not very good. We can see that the single car trading is still in losses. And we see that in September, the used car trading average price is only RMB64,200, which is a drop of RMB1,200 versus the same period of last year.

儘管有政策優惠，但我們確實看到汽車製造商的盈利能力不是很好。可以看到單車交易依然處於虧損狀態。而我們看到，9月二手車交易均價僅6.42萬元，比去年同期下降了1,200元。

And the strongest demand comes from the price range of RMB50,000 to RMB100,000. The profit margin of the auto dealers are greatly squeezed and their profitability cannot improve.

而最強勁的需求來自於5萬元至10萬元的價格區間。汽車經銷商的利潤空間受到極大擠壓，獲利能力無法提升。

So talking about the future, we see that, actually for TTP, you can see that a lot of the car vehicle sources are actually rushing into the 4S dealership stores, because next year, we expect that the new car price war will not end immediately. There will still be a big challenge for the used vehicle.

所以說到未來，我們看到，實際上對於TTP來說，你可以看到很多汽車車源實際上都在湧入4S經銷店，因為明年，我們預計新車價格戰不會立即結束。對於二手車來說，仍將面臨很大的挑戰。

So for TTP, actually, our previous strength is with the C2B auction market. But now, we see that there will be more opportunities on the B2B market. So besides the previous strength on C2B, we're going to make more breakthroughs and transformation in the B2B market so as to tap into the potential in the B2B sector.

所以對於TTP來說，其實我們之前的優勢就是C2B拍賣市場。但現在，我們看到B2B市場將會有更多的機會。所以除了之前在C2B的強勢外，我們還會在B2B市場進行更多的突破與轉型，挖掘B2B領域的潛力。

As for your second question, which is about the shareholders' return, we see that Autohome has always been very dedicated to increasing the return to our shareholders. Like we said before, last year, we actually announced a shareholders' return plan for about RMB1.5 billion, and we just announced an actual RMB1 billion dividend payout.

關於你的第二個問題，關於股東回報的問題，我們看到汽車之家一直非常致力於提高股東回報。我們之前說過，去年我們實際上公佈了15億元人民幣左右的股東回報計劃，剛剛公佈了實際10億元人民幣的股息派發。

As a result, altogether, there will be RMB1.5 billion dividend payout to our shareholders. And our Board also, actually in September, adopted USD200 million share buyback plan. We also have adopted many measures to reduce the volatility of the share price.

預計屆時將向股東派發股利15億元。我們的董事會實際上在 9 月也通過了 2 億美元的股票回購計畫。我們也採取了許多措施來減少股價的波動。

So we think that currently, we have been using dividend payout as well as shares repurchased to enhance the return to our shareholders while quite taking the lead in this area. So looking into the future, we will continue to look into the other possibilities so as to enhance the chance to increase the shareholders' return. Thank you.

所以我們認為目前我們一直在透過派息和股票回購來提高股東的回報，在這方面是比較領先的。因此，展望未來，我們將繼續研究其他可能性，以增加增加股東回報的機會。謝謝。

Brian Gong, Citi.

布萊恩·龔，花旗銀行。

(spoken in Chinese) Thanks, management, for taking my question. The management just mentioned about price war which continues for the auto industry. So under this background, how does management think about OEMs’ advertising budget for the fourth quarter and for next year?

（中文） 謝謝領導回答我的問題。管理層剛才提到了汽車產業持續的價格戰。那麼在此背景下，管理階層如何看待主機廠第四季和明年的廣告預算？

And second question is about contract renewal with dealers. And what's the biggest progress? And how does management think about the overall contract renewal for this one? Thank you.

第二個問題是關於與經銷商續約的問題。而最大的進步是什麼？管理階層如何看待這次的整體續約？謝謝。

(interpreted) Okay. Thank you for raising this question. The first one is about the OEM advertising budget as well as the outlook for the next year. We are already approaching Q4, which is actually the end of the year, and we see actually the sales performance of the OEMs also coming to the end.

（解釋）好的。感謝您提出這個問題。第一個是關於OEM廣告預算以及明年的展望。我們已經接近第四季度，實際上已經是年底了，我們看到整車廠的銷售業績實際上也已經到了年底。

For those who are expected to keep the sales target, they will actually promote their terminal sales or directly subsidized consumers with their budgets so as to incentivize the transaction. But for those less well behaving or performing OEMs, they will actually cut their advertising budget.

對於那些有望保住銷售目標的企業，實際上會促進終端銷售，或直接用預算補貼消費者，以刺激交易。但對於那些表現不佳或表現不佳的原始設備製造商來說，他們實際上會削減廣告預算。

So generally speaking, the OEMs, they are very precautious about their advertising strategy. And we think that looking into next year, they will more reasonably balance their advertising budgeting as well as the price war subsidies. Next year, this might get better, but it still depends. We will still see how they will perform after next year. Thank you.

所以一般來說，OEM廠商對於他們的廣告策略是非常謹慎的。我們認為，展望明年，他們將更合理地平衡廣告預算和價格戰補貼。明年，情況可能會有所改善，但這仍然取決於情況。明年之後他們的表現如何，我們還是拭目以待吧。謝謝。

As for the contract renew for the lead subscription package, actually, this will initiate at the end of the year and will last until the first quarter of next year. From historical data, you can see that the contract renew of Autohome for leads subscription package has always been very stable. And present, Autohome has already well covered most majority of the dealers on the market which also shows the overall recognition of the dealers to our service as well as their reliance on our service.

至於主力認購套餐的續約，實際上會從今年底開始，一直持續到明年第一季。從歷史數據可以看出，汽車之家線索訂閱包的續約一直非常穩定。目前，汽車之家已經很好的覆蓋了市場上大部分經銷商，這也說明了經銷商對我們服務的整體認可以及對我們服務的依賴。

As one of our core service, you can see that Autohome will continue to leverage on big data technology, as well as better service quality so as to further empower the dealers and to further enhance the precision of the matchmaking as well as the efficiency of the conversion. While, at the same time, this year, we'll also continue to cooperate with Ping An Group to further provide more diversified instruments for our dealers so as to facilitate them to cope with the fierce market competition as well as the challenge on the profit margin.

作為我們的核心服務之一，大家可以看到，汽車之家將繼續利用大數據技術，以及更好的服務質量，進一步為經銷商賦能，進一步提升撮合的精準度和撮合的效率。同時，今年我們也將繼續與平安集團合作，進一步為經銷商提供更加多元化的工具，以利經銷商應對激烈的市場競爭和利潤挑戰。

In terms of the progress of the contract renew, we will keep you updated about the latest progress. Thank you.

關於續約進度，我們將及時向您通報最新進展。謝謝。

There are no further questions at this time. I'll turn the conference back to the management for closing comments.

目前沒有其他問題。我會將會議轉回給管理層以徵求結束意見。

(spoken in Chinese) Thank you very much for joining us today. We appreciate your support and look forward to updating you on our next quarter conference call in a few months' time. In the meantime, please feel free to contact us if you have any further questions or comments. Thank you very much, everyone. Thank you. Bye-bye.

（中文發言）非常感謝您今天加入我們。我們感謝您的支持，並期待在幾個月後的下季電話會議上向您通報最新情況。同時，如果您有任何其他問題或意見，請隨時與我們聯繫。非常感謝大家。謝謝。再見。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。