Q3 2020 Autohome Inc Earnings Call

Ladies and gentlemen.

Thank you for standing by older homes quota Twentytwenty earnings conference call.

At this time all participants are you on listen only mode.

A question and answer session on all the formal presentation.

As a reminder, this conference call is being recorded.

If you have any objections you may disconnect at this time.

It is now my pleasure to introduce your host and he is that true.

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Ms. Chen you may begin.

Thank you operator, Hello, everyone and welcome to order from.

The quarter.

Earnings Conference call.

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After the prepared remarks.

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And now I'll turn the call over from the older homes from that.

And.

Thank you I think that.

Hello, everyone and thank you for joining us today and.

The two reported.

And with revenues exceeding the high end of our original guidance by high and be 35.6 million revenues and all you can need to increase the by 31 cents per year over year and that contributed to put people per said, though the poker revenues.

And Apollo that deliver.

Delivered robust growth with 51 and yeah.

Nope.

Adjusted net margin increased by 6.6 percentage points year over year.

38.9 per se.

In the third quarter.

And me and the increasing growth digital demand from.

Customers and that's a continued building upon us.

We offer you more differentiated high value online services and support and with confirm and come from.

Oh line operations with a high efficiency.

In September of this year.

The number of every day to day use who accessed our mobile and web site.

And I mean, yes.

Further increased to 39 billion.

And in per day.

Hey, with the prior year period, and the true pretty quickly.

Regarding content.

And the third quarter.

We met a series of moving optimized our product and the content.

The other two Inc. Has user experience for example, we launched a light version of out of home application to attract younger audience.

We also rolled out.

Micropulse channel, allowing users to post the photos and the to make their brief comments.

And encourage them to synchronize the whole good specific car model for it.

Which provide oh, yes channel.

Okay, and then right.

More content responses and the four.

Aside from these roll out Oh, eight was a growth Super auto show.

And you'd have to be very popular with online video views from the nice guy exceeding.

260 million further demonstrating that your friends in the industry.

Our Okay channel allows automakers the standard.

And the day audience.

Average and even broader level.

Participating and various themes activities.

Uses could improve their knowledge of how to brand and and then be motivated to generate today on other related content.

This combating car become.

The results of out and makers, which helps them from the increased brand recognition.

And our efforts to explore new marketing.

New marketing approaches.

We are encouraged to see that our fracture height goulioti continue to go up.

In the past four months.

Uh huh.

And I automakers, who promote and they have Brad we're okay.

Moving the first nine months.

Humanizing book GMB, well, our road trip and this book.

Hold on the 340 million share.

And then doubled compared with the number for the fourth and full year 14 19.

During the quarter, we further enrich and and the south.

Yes.

Oh unique dealer.

Okay, and providing comprehensive digital services to our customers for example.

We're pleased to see that our beta program continued.

Benefits from the digital transformation across flow yet as we offer to our customers. The fourth goal solutions will each different price, providing them with better recommendations, helping them, making better decisions and the supporting them even more efficient.

Project implementation.

In the first nine months, a total of 38 automakers, we're engaged in our beta products and a note operating.

In public and new Carla.

And the impact and marketing solutions collect.

Collectively delivered over a one.

And your programs.

Far more and then the total number of programs and for the full year 14 19.

In terms of standard product to dealers.

We and that to provide a comprehensive SaaS platform.

Dealer customers.

Lead to install visit sales and ultimately good upsells covering the force by car cycle of out of a share and increasing become very who write each step of the way.

In addition.

The number of paying users force marks store true part and zero.

Product generating incremental and lead with dealer customers has reached approximately 2700 dealer.

In the third quarter revenues from our.

Used car business unit achieved with the double digit year over year growth and.

We deepened our b to B corporate breakthrough with TTP.

Hi.

In October we made the floral our investment in PDP.

Yes powder land to 68 million.

To help accelerate our growth in the used car sector.

Integrating and how to homes online capabilities.

With TGP the offline presence, we believe that we are well positioned to and the more.

More value to the industry.

For auto financing business.

In the third quarter Poker GMB book consumer loans increased by 80% year over year.

Moving to the overseas business in the third quarter, we continue to focus on expanding our content offerings, while actively exploring ways to use our brand awareness.

I'll laboratory and now covers almost on a major models in the market with the VR technology to enhance the user experience.

In November the total monthly unique visitors flow, yes, auto exceed 3 million.

And.

On a solid foundation and file corporation with the customers.

As over loss and loss.

Connected with over 3700 dealers and the poker SK used on the how overseas and platform and exceed 700000.

Our first dedicated to overseas online auto show also received positive feedback.

And the customers showed and interest in the format and now with income participating.

Further trials with us.

To conclude.

As we move ahead, autohome and remain committed to developing innovative solutions and investing in strategic areas. The on it to strengthen our leadership position in the industry with that I will now turn the call over to our CFO Joel for a closer look.

As our third quarter financial results as well as the business outlook for the fourth quarter revenue per.

Andy.

Thank you and me hi, everyone listening has already highlighted and we are pleased to force equates to growth.

Please note that as of this plan of course, I will reference RMB only my discussion today.

Net revenues for the third quarter were 2.3 to get it.

And the third percentage higher than a simple last year and.

Exceeding the higher debt of our original guidance.

Approximately 56 million.

For a detailed breakdown media services revenue were 900 Twentys benefited.

Generation services revenue growth.

14.

And the only marketplace on this revenue increased by 51% per year.

Yes.

Good day.

Primarily driven by growth of data products.

Moving on to costs profit.

Cost of revenue was 215, good compared to 247 and beginning in Q3 last year third from one year and.

And stable at 89%.

Turning to the operating expenses.

Health and wellbeing expense per quarter.

Sales were 979 million and.

Pair to 956 in Q3 last year.

Product development expenses were 349 million and competitiveness excuse.

Do you mean and in the third quartile flow here.

Now finally to GM expenses were 140 minutes compared to 109 million in Q3 2019.

Overall, we delivered and operating profit.

And 100 foot and good impressive quarter.

Compared to 641 bidding and the corresponding period of 2019.

Adjusted net income attributed to auto home income was 900 and to get it.

For the first quarter compared to sales and committing and the corresponding period on 20 range.

Non-GAAP basic and diluted earnings per share and upgrading yet.

For the third quarter RMB seven per clarified and.

7.2, respectively.

And Pat and the pipe and tube and pipe point.

Eight respectively and decreased only period of last year.

As of September Thirtyth 2020.

And and seek remains and its 12 with cash cash equivalents and short and divestments of 13.4 therapeutic.

We generated operating cash flow on 500 for bid and et cetera.

Good day.

Let me now address our fourth quarter outlook.

Which the from our current and preliminary view on the market and operating conditions and.

And maybe subject to changes.

At this point and we expect to generate net revenues in the range of RMB.

To put it and it's going to be quite a bit.

RMB, two pit and 484 million.

In conclusion, we delivered better than expected and hopes on the hill from new initiatives.

Community track and the World grows.

Non-GAAP net income increased significantly from RMB two contributing over time.

Reflecting the effective this of course spending and control.

Additions.

Follow on investments and GDP growth accelerating development, our used car platform and the for the balance.

Solidify our leading position in this area.

Understood about expense at the rate of growth drivers.

And its revenue mix.

And further enhance operating efficiencies.

Net position to achieve our long term goals and create even greater share for the day.

The fact, we're ready to take your question.

Operator, please open the lines book today.

Operator.

Thank you.

Thank you management.

So ladies and gentlemen, if you would like to ask a question Jude and management.

Please press, it's never one on your telephone keypad.

To cancel please press and never sales.

And then finally Monday.

Please ask one question.

Each time.

Thank you.

Our first question and from adding and Wong at Morgan Stanley. Please go ahead.

Hey, Todd.

Those on Oh my.

And so I think I share just want to see what what I wanted to see how soon can take to show up and lead Gen. Someone share. Good just saw on how to try and go shop and institutions that drum hallmark strength.

And on out and then to stop and I'd be Gen. The day packages to share build John John.

Moving into superior knowledge, and Josh foundry and a pretty good true true people year should push out so I don't range I just saw on MTV TCR and just your dealer to go she would have on all year.

Actually the <unk> Michel based on your funding chip income.

Our union clock.

And you lead Gen to package.

Jacob Joc job that you guys.

And then she did fine thank.

Thank you management for taking my question. So my question here so on the.

Generation package side. So basically we can see that this year a day auto markets has been a recovery hi, well and second half and if I look at out while you jump a package in this year have not.

Any price hikes, so just wonder Oh.

We were out well poultry and do your and and I think we are.

Ah, Yes, I read you a process where soon so.

I can give us some color on how you see the gym Packers the up price, So hi, Charles and in next year. Thank you.

And with Israel, They will have on that.

Okay. Good.

Your opinions on this recall and emerge, but hopefully quite warm and this from goods on John It was this year.

Okay. Let me take the question first and then I will you might have missed on high from two follow on the answers and now.

It's the right time and every year to ask the question and whether we are going to raise the price on that.

Turning in a two cents and it's sort of a minimal and you exclusive flow to industrial and Jim senior per day.

And the team and the yield would be on because witching lighting and usage shows reported inflows into highly each team they use on capital with the debt.

Income see from she lighter share to jobber actually book and Hamir continued cleaner POSIMIR suitors for you all who holiday and the cohort. So you've got 70 like and I see the puts and how that could pressure Q2 debt that what you have on that guidance caliber highly here between that and got a function.

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Okay and on last year, we experienced at the net growth outcome market. So we said that we are not going to raise appetite and.

Yes. We also experience is the net growth of the market and also added on back with the cold and 19 epidemic. So thats why we decided to follow the type of the time. So thats why we are not going to raise the price, but our price and metabolism and.

Pricing system and change and helpful and business.

Yes, okay.

Hey, guys and Lisa Hi from I'll share will continue and metric.

True.

Okay, and who book so they got on two should eagle from keeping the aravena, while making and again to be complete on that and we'd have and Yahoo.

We go next year and be able to pick up we and the hutch.

As I watch.

From a mixed and no debt that we are going to follow the tight and.

So we offered to wait for the pricing.

Oh, yes, and and the dealer.

And you said you're going to pick a PDF did hunk and how can you share.

Do you go debt RDR and he had yada pick a book on Yada tick tick hopefully that.

Got it and that you have to be Shetland should pick up getting that book showpiece cash.

Well.

And you have to twice as true number one which is at the flat price.

20, Twond, which means there is no price hike.

True they can choose a flow in pricing model based on the news now.

Great to go and hopefully the punch index adjusted tractors, we saw share possibly pick up gene.

Jeans on.

That being cash you got an excellent Jackie beyond which you can book here for the true copy shameful and deal has yet to be the question you mean that BT metric app and how quickly the ship flow should this.

Good afternoon and hit.

Well so the flow.

Hi from in cabinets, and actually we have targeted and acrobat good performing dealer if they want to get more be from Idaho.

On the home they can share this second the way, which is a floating and pricing model.

You know, we generate the best quality lead and the whole market for moving on I kind of tick.

And it will be the functional and Mcos and kalina in guidance for your oil and gas.

And if thats ridiculous.

Sure.

On that these elevated.

Type tissue the Cotulla, Kentucky.

A follow up on that.

Hi, Rick on tickets, which is again.

Good day.

We already communicated with a lot of the OEM.

And actually 30% comes from.

And to show that you mentioned interest interesting best flow team pricing model, we are communicating and also on the contract negotiation and less risk day Lynn I believe average.

Oh, yes, I believe that to be more and more Oems matrices flow team pricing model that on.

And from the materials and that your services on the metal and locally set aside candidates and down that day.

Okay.

Can you tell us on a path of goods with these on tightly function that you saw.

So we think that seem to have.

Moving down these will be and is on seeing that and gambling and then we'll miss you are to get us where the.

And the to the leads on the.

Yes, we would go on the bigger Sofia so within guidance.

And the other thing I want to.

And on this.

And when we talk to me about the floating price and model really put a cap on a floor on the pricing. So there would be on price range with a cap on the floor. So in this way the dealers and Oems calcium story than.

That the pricing.

And reasonable.

Anyway, we on a local assortment people much as on Apple going on with Sofia, we kept debt.

And they get to Molly.

Actually they can take the flow capacity model, if we did not generate enough from the price would also go down.

From a two should genius and element and.

These are highly focused on more should job so CPFL.

Thank you James who was on that.

So Jeff let me get this for job growth, you're talking and how should that tool and mattel's. It's on the TPL. So it's on the Threepl services backlog corporate cash flow.

We will always.

Okay. So why the Inc.

I went and make the consolidated cash flow and middle book, So providing wholesale policyholders.

I guess with the on the legacy problem and that again see a seasonal bump on day. They deal with regard to juggle book, if I mean that goes on with your neck on several additional true.

Absolutely and nothing that we already have tucked away for all yen, which they would be doing the company has this CPL model we've been talking.

Talking about the comprehensive model, which we bombed on the advertising and the lead generating business together, which is very similar to the overseas dealer business model, which is I agree can paint on the bundle.

Paul.

Okay.

On that he had on to that Hes going to EPS much off 2.0, it's also actually in Quebec.

So we have already and it kind of.

On the 100 plus.

Moving on that.

And with detailed and more next year.

With that back as you know we have.

Fiscal year as question next.

Excellent.

Thank you. Our next question is from moving back John.

From Bank of America. Please go ahead.

Thank you operator, why don't you sell and how hot Johnny Michigan continues on with Keybanc.

Just two follow ups Josh on that.

And Uh huh.

And then second momentum on.

Sure.

On a cheaper more strategic accounts from washes share molecule.

Oh sure Thats was on Q2, why thats going on that just to add on the topic.

Yes, she does.

And John.

And you guys happy no. Thank you. There's also the question. She took me on cultural she the channel outage share as you saw at bankers so on average.

Two questions on Taco Bell.

She dish and Directv gas on should be on social and that should be on right now.

Now I will touch on April.

Sure sure.

Yes good.

On a whole accounts.

She goes from.

Good day.

Hi, Sean just on that.

He is on shot on goal.

Well done you got just and I think on one key shift.

Hi, Satish.

And on couple of Goldman Sachs on that.

Absolutely.

You want you to on the team.

Key growth.

Okay should a true.

Pizza and.

Good day, social and good luck, so to see flashes of and so I would not have taken and actually went on.

Oh, yes, I actually got all the sales so well, it's all about adjusted to Q2 way that you would see that.

I wanted to ask Pete to social.

Social health would you try and keep molecule and on the cash.

Sales were traditional social media outlets you guidance would you talked cheap there's what tiger.

Sure sure, Okay, Juanita Tate Kopin classes.

I know, what you're saying that the winters.

Thank you nice min for taking my questions on.

And I have a follow on question on the on pricing on these.

Call it that can management give us more color on that.

Sales of the product for example, like is the protein price model and I don't want to beat membership product or its a standalone product and where it.

And just I know on them and always so and shop, each and colors on.

How are you seeing what will that be almost 80% companywide and like some sort of on beating basis and also on how does he sold on that.

And so for example, like a package.

By one basis.

You don't keep your college on on the product will be helpful and and my question and aged R&D.

Thanks based on and strategy flow sell on the Big data products, Inc.

Yes.

Simple will bundle on some of the product and then.

And our ship and asphalt sales.

On the all the skin.

Page and well that's one of the the dealer.

Altogether will end to end SaaS product to sell to it. It's just a hole and then on for example, like we used and talk with negotiate with the OE and tool sets and your bank like contact Fourg page and marketing pagan you call launch product.

Just on that.

Please share with us any color on your side, yet I feel on that.

Sales strategy index, yeah. Thank you.

Oh I see.

FESIL and degrade kids are due and me on the book was on just.

Just a little bigger for Dolby and Josh you should and get that.

Now talking about your first question about the flow through pricing model. It is not complicated actually it's a very simple fusion and you're sure well metallic and deposits can you on but true.

And with it will it's a good thing.

Sure sure that high on each you not to do a full hawesville bumps and without.

And I'm a little depicted on that is that what's on how to Destockings Lisa.

Hi, this is a good EBITDA.

With the on the number of on the material on it took into the share so on the on board.

And then what type of book, we've got solid and have yourself.

And get them with that.

So basically the very simple because as we said the bucket did auto market expense net to growth and and we have the cobi 19, and the dynamic so based on the Big picture, we are not going to raise up the price.

And we want to have Bob and.

Minus 10% range on the floating and pricing based on how many lead they have and the more lease they have more pricing and lastly, less pricing.

I think the.

And then.

Hi, and Ziggo and make good to.

Okay, and I mean, the model and how the.

Yes on the thank you it took a pin pad and the liberal pod and that she says the Kansas and gases or may not help we young.

You would have how you with hip and I sort of useless and good looks or not and that hot on the tests on actively value and shipping by stopping by the Central Bank Joc, you'll recall. So you on this AD hoc such a thing and that balance sheet gain you and that's it aligns and it'll be more talking and so.

Yeah, Good luck and banner, we shop solution.

And about two cytotoxic, yes, let me give me the doctors and give us on.

And and we don't calculate each awfully high because the price it varies a lot and it depends on each day, the big brand on small brand expense on different models. So we don't calculate and unit price for each of the model on each of the branding.

Usually for their feet brands. They have done and then what generates a lot of money from Mark ran their lead generation would be smaller and on the price and maybe more expensive. So we would have to compare the sales lead on the same Brad So actually don't calculated that detailed unit price.

Yes, and that woman SEC a true.

And I can you touch on say today.

Hi on the fortunes on pad that you'll be on Ts will be on hub BG.

So we got that type ones on that figure how.

I feel for solitude Ping price on Casegoods and it'll be down from.

Actually during our communication with the OEM and dealer actually does flow through on pricing model has been well accepted by them and it's quite easy to understand and the debt model is very simple as Mr. Han So said a lot of Oems and the dealers and welcome such model.

On a few true content went down thoughts on the TPL and of the fostered yesterday on animal and because the cats and he's had use that tool that's sort of what's in zone and not just for sure.

And that helps us, but cash flow to goodwill number what was sort of fuel pool that's true.

Logo and because of what the del Sol and know what you're so relatively small.

Doesn't that fantastic and with these houses tridien guidance.

And when you do kind of the zone and the monetize and the goodwill so being seasonal and do the bundle fundings on these offers.

And I think and I think thats, a surplus number down possess on GGR disorders through the flow job debt.

Yeah, I'm not sure and about the commission on steps to P.L. model, which already on related to that and to work with for OEM. So based on trust and.

We would calculate on many of the numbers up the leap the Mali the high the price that lastly.

And no less the price and.

And pricing model will lead to stop this comprehensive.

Model was for Oems and.

Just on followed by that the China, just on the warm and the figure.

For the reported generating solid production and potty and sell the keys for fuel and the possible through the queue for that.

And I thought you want to take on these happy to book and I thought I will then with these highest fuel on you'll can deliver that and whether they can do on the tests or me. If you want we got such a good book gets flipped over this solely on the call today just be growth we are doing very good.

Income from that to go and get busy and we'll be able to the TCIL tenants for the day.

But the.

And what type of meal.

I think and the key part and we have good underlying technology and for example, and intelligent and marketing technology and the big data technology. So we can generate high quality lead the more leads we generate actually.

More price and we can get on.

And actually that OEM to welcome such high quality and lead you to win win situation.

From a PR the win came to us for playing its possible today.

Passenger seat pardon.

Yes, well timed and via through the guidance.

He and I see on.

Say several value accounts with the team.

From a sexy tools and Columbia.

She says is centered on who seduced they can send it to the jotted and lettuce and bonuses contingent on views about the future with us and.

Messaging on the terms with a simple.

Now your question about on Big data on business. We have worked really hard on lids pits and we actually have a very good the revenue if you looked at the fastest reported.

Revenue growth by 65%, 65% and the third quarter alone we grow by 51%.

No, but we like the cloud ward and ways to give you mean profit equally.

The sales.

So you talked to lead glad OEM Zebra and Hello, Hello can you talk on fleet, but were much higher than book seemed at times and kind of products and you quick jewelry off sharply on that and we should get.

I believe that in the future there will be more optimistic lying ahead of US no matter is working Weve Oh, yes on on dealer side I'd be blades, and then what comes out.

New business opportunities.

We need to give our team on time and from a sitting on the high flow through December.

I think the Blue jeans house on our Jihad hobbies, and Thats, what the how the social gladney debt.

On the Sheeple not so just on how we lag so that I think the other you and popular and thereby to go once a day.

Dr. Lynn can be and book the old Suji.

So would you take the cost would you try and be the team was a soft relative to the whole.

No I mean and again the kids, which is how that's where he will answer the services that you feel I feel financing from the momentum that don't so we have that and by that standard.

You are putting on along through the funds on deposits.

And now tell me about the future opportunities on the dealer side, we would have a lot on sales.

Management and assist them to launch.

Yes, okay to launch for the dealer and.

On the side, we can create a lot of value, we can actually fit into a lot of value chain from the RMB. We have lot of big day product, we have a comprehensive.

So to offer to them. So that is one off on future strategy, which is the industrial Internet solutions from a hold can hold him and Yoigo, maybe the investment open day and the plane PPACA nighttime partial hold value is here to keep the CGM and gift shop GCB.

On the day after day Tomorrow, we will be hosting and investors and day, we would like to welcome you to participate in this wonderful event.

Thing and guidance and what were from.

Yes.

Profit here.

Okay. Thank you.

Excellent okay.

Ladies and gentlemen, same from my to ask question, Thanks, especially zero one on on its head from keypad too.

Cash flow fees, perhaps never too late.

Please be reminded that please ask one question each time thanks.

Thank you.

Our next question is from Brian income at Citi. Please go ahead.

Our should have plenty conjectural ups you want on its useful way should shop and tied chamber when shot Nicole we'll talk and got the nickel more sure of.

And you woman since I got high operating it should all at the Guy you know he share typically used car into insurance or are you comfortable Marshall and just you just heard from June.

He took on what's your sense or channel or means your true more sensitive moving at the true.

On a GAAP, where youre you got on the on the and channel.

Okay I got on truck and trust it myself I have a question a follow up question regarding the flow.

Okay and crossing modal so let's not just mentioned the some per customer or day science course, such pricing models. So my question is based on the sales needs.

Plus the truck reports on customers, what's the initial real off managements.

Regarding the impact on our right and what next year. Thank you.

Well, we're definitely diodes have.

Yes.

And see out there and just the two woman share saw some time and either on the call again, you and quotes you know on this.

Yes, sure to Kenya, Banja producer push out Tom Mason will cut down on the bank is on that.

And without the hope EMEA each on you had a day its adult digitally how sounds a little bit higher Egypt Iraq.

And the material that would deal with Jake.

That's how our wholesale and Uh huh.

Competing and see the European tightening that up and goodwill and the.

Yes, good growth and the T.

Can you tell us on that goes on.

And I thought not on there so touchy zone jump on it.

So you know on the drill bits and they'll be up as adjusted and so we'll be job.

But to answer your question I think on pricing model actually is a testing on our cash relative to generate high quality and leave you, though in the past consecutive 70 years and.

Yeah, and the pricing go up by 20%.

And 90.

And your first.

And can play a different opinions over there.

So our platform company. So that's why I said that we have to follow the tank.

But you don't want to share that to us.

That's on top so that book goal Triple Boston.

Joseph.

General and just talk about that.

On the travelers on.

Yes.

That's the model as well.

We just raise after price average price hike, we go on and you know care, whether the lead numbers on dwelling on.

Good day.

And now the merchandise is on so we'll just have you shut the other thing John the east for Jewish.

4 million jobs and Tessa.

Hey, good things on this so net net.

Yes, and what that's on top of tests and Giada Hyatt.

And.

No.

Yes, and dealer started to accept flow people price model that is to say we.

We have to generate high quality lead to them to be able to generate more income net.

Got it and just so people.

Yes, that's an easy way.

For me and died from here. So I think there's a wide range what that cash.

Maybe ill share.

Okay and dual demonstration each of us.

And the Jewish book onto but call it up on board on it by the book.

Well I think the one.

And the thing that touched on this and really good.

But evidently on a day.

Good bumps and.

And.

That day, you do and then two years flow issued debt.

So actually on one side, if we want to raise on that price.

On the other side and we'll have to bear the risk whether we can generate enough leads on not.

If we cannot generate enough I call it can be as previously.

And they want and 10% reduction from the purchase price so Richard on the floor, 90%. However, we can generate very good lead.

And now that we can come up.

By 10%, which would have been 110% on the cash.

Three.

Well on that.

Moving on the time period Thats It from me and a view on how should I think it was teaching Joseph into a 16 year woman and John.

I think the US will do the usual from me say attorneys off on me and the council the team book to Bill and related and on lead ship on to a book and burn.

I have to say I'm very confident about our team capabilities and generating high quality fleet, because we have in pellet and marketing tools and the big data applications to support such generation need isn't it true.

You went away to school.

And that.

A little bit.

The other thing and.

Now on the types and so now.

In Colombia, which have optimism.

Sure.

And who signed the selling price and contract with US we want to make sure that they will have sales.

She is here.

Thank you.

Yes.

Our next question is from my read chased some HSBC. Please go ahead.

And why did you tell us how how but just on what the key on and we had a good once you just got what you Satchel SOCOM type. He thought you'll see took a lease that jumping out sema not lost on watch would up on these and got bite he thought well thought through geologist city, but sitting here you've done that leads to why you might go by you.

How should something that's on culture and out the lease that you found actually you'll see sales wait wait shoot and you saw.

Some of it seemed like the old school. So it's something that you sometimes you might seem that don't what do you eat sets and Sina you all watch outs and waste you Sue on Michael Dahl kind and wait and see you see on SAP, you, Tony and Chino Hills, Tom again, you've got my Church Street.

On the month policies.

<unk> she's a double from those to be dollar size and say that.

You say Gulf.

So the goal posts on top.

So when do you always see channel lobby button weight. So, it's all eat and choose from Saudi money Gaussian out and stuff.

And that's it she told you got ballpark I will translate the questions myself I'm, saying. Thank you for taking my questions I have a question about the bets on how to fuel generates more high quality lease for the future. So other than that that's like that for a couple of big data and also technology behind the platform and so one of the.

The Neal was sold on use of growth driver for the future or what's the strategy behind it for example, like younger users. They can be also a potential caught on that seemed to future, but saw although home use a profile tend to be like 40, yes on both okay.

H and sole mashed Michel will not they use Oh acquisition and stretchy ahead, so as to drive more high quality growth I'll stop there. Thank you.

Oh, yes.

Yes.

And by doing that.

And then.

Fastest gets finished shops and the types of central and say lead them for them and to increase would be our diesel by choose which adjusted to the average.

Hey, good make them and.

And when would you thought of cash so and I kind of go on and the App figure.

Okay. Good to say the internship settled with the defense, which is scheduled with them to see me now and that's a good diesel battle will reach out to.

On the people on the legal was good.

Good day door, Viccenzo and should the good and and I saw on future John touched on it yet.

And yes to answer your question, we have already tried quite hard to go granule into the third and fourth year Youve and.

Pete tier cities.

By launching the light positions.

On the peak, which is quite different from Ireland and compete we want more marketing and share based like you mentioned that the pizza that Kathy on reserves from lower tier cities.

The Argus and just the warm and sets rules and Uh huh.

Moving parts and should welcome.

Alcohol and the Tempe, multiple and then Theyll net.

And then simple we're meeting you pay day tweaking reports and zone, we genuinely see Linda reply from people bought and sold.

This is bill on the human consumption per share instead, the and usage via the diving into it.

The second away.

Uh huh.

On channel and try and Jeff right on and.

Free cash.

And on the product Oh, ranging from what.

Through this step by step to better attract good lead generation and is there as well.

What do and when the new and I do it was and if you go yachts flow through a true type all true on me and day three so I hear that the good being weighed the gtwo shop.

Oh got too little tools and dual you'll chewed up from here on the singly 20 year on our crude salt and the.

And Jim.

Oh, yes.

You also have to sell it and well.

On the time share.

In consulting and cash.

Correct.

Maybe due to the very clearly TV content and racing team of our company on.

On one side, we have to keep.

And most professional positions and comp.

And the contribution to compete on the other side and we have to keep good fun and should not be boring to be fun and very professional in this way we can attract the young users per.

Oh sure moving here with you to be Lu school will and and the young and therapy and dollar resulting balance sheet.

What do the vehicle auto has showed up on some of the C class the millions of payable, but we like to see the formulas.

For example, we have a lunch young channel and we also post a lot of activities to go into the college sales in this way we would attract a lot of by John Lu.

Okay.

On the sample Amelia and Biopharma.

Biopharma clear on the marine leasing people on what you say is yes.

This is true she and unit.

But it's enough and.

And on the on the H one eight per auto show, we hosted the gap, if and when we might head.

Mr., Wang who have a lot of my follow and the young fans.

And maybe on the <unk> from a happy.

I agree.

Can you put cash and that's been some quite the piece yeah, what I'm trying to hurt tool.

From a sales and to see the yes, the Throughputs and me up and creative you'll be value and continued and Borderfree Hill on on time.

Who don't live goods with Jody.

Well you see on ABT and good book and unit growth.

And next year, we're going to launch more collaboration with sales.

Yes.

Website, and that's what's that have a lot of color. So you Miss way, we can attract a lot of a younger than that and.

And then things to do with your competitors, who are building insured and book and Scott Seal and then please see the getting positive from yeah and deeply the too cheaply, though.

Actually this is a very good question I firmly believe that we can win the hearts of the Yardi are there and when the market.

To focus on.

And you know like on the.

Like I say in receivable right.

And Kevin.

With a from a young and use.

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And on foot traffic.

In the last quarter I can and order.

The commodity cobbled from tier two and the northeast.

We are actually and penetrate into yet and the lower.

Politicians.

Okay. Thank you.

Thank you and next question is from.

Tom much at Jefferies. Please go ahead.

[laughter].

And my question on.

It's about the outlook about.

Well the momentum and the one.

And you.

Let me check and Union and the good.

Hello.

Uptick.

RDR and the.

It should be on and that would not book.

Well go ahead from Peter good momentum.

In addition to our Union.

Junkie already gardenia ship with the government.

Now tell me about the outlook aftermarket up on your 21, we communicated with Oems and we also have on observations, we believe and.

Why would it be a growing market over Twentytwenty book.

Okay and that will yield on.

Okay.

And on the lease the growth can be around 6%.

And some detail shown good job on each other.

Yeah, and I can actually be shutdown.

However, if we compare next year with 2019 and.

Actually it's still wealthy banner.

And I'm going to choose on a she's done.

Hi, Pete had an eventual true she does the cooking path.

She goes please.

And she gets we continue to exist Chuck.

Well see another trend from X share, which would it be more and more concentration on the brands in the market.

You don't see me nine and that could you share box and you could become practices.

So that leaves the OEM, we believe that they will keep growing on the facts and momentum.

Oxygen okay. Thank you.

Yeah.

To that growth, while you're already on.

Sorry, you make this working this year.

Hi.

And our TPS.

And after they'd be a channel for the future.

Operating expenses.

Thank you and next questions from a debt.

18 job.

And she has.

Please go ahead.

And it and you don't have those on so it's all like on top that okay. Just on what a key events, which it anyway and Glen Johnson didn't do you have and you she goes from here.

And then she spread you should you keep and Oh Gelclair and he turned on and then chasing jets and should be checking Belgium.

On the OEM right and that's the theater and couldn't be that much and do should push on.

Oh, yeah them in Q2 play on.

True down.

Treat those sites.

And on the Dutch and Unionpay to total debt now keep in senior debt, our search for yield identification bitumen and it back on Oh, let's see trends.

Good evening management, Thanks for taking my questions I had to your question from here.

Just one day just one last question on your day type product.

I mentioned and help us to break down our debt.

They did have price that's rather new book.

Oh, Yeah, and then give it.

And second question is about the used car market as we noted on <unk> increased the investment income TP misquoted educate matches and share with that used car business updates and future strategy. Thank you.

Oh, you mean.

That's what I got away from from.

Total and now more 10 volume and that total attendance and.

Flow Amanda.

Planes and on future can you talk about why you on and decide on that took place and.

Now moving on and how to flow that goes on and Phoenix had from Utah that we don't get me on this and what they want and that.

And that they don't want to know on timing and double moving from them in the day that went on to swarm surgeon day.

And then he'll on the topic and how quickly.

Yeah, and billing day, she that don't die Adap on robot.

We bought on Minneapolis on you going on I think income she said that all.

While the stock and not yet again, south and Pensacola, Yes, you hit them, you've got because if it wasn't that bad thing and we're seeing that that plant and how many that in the flexible debt.

Thank you it sounds like your first a question actually from the mature products, we have a different product targeting and OEM and that these dealer they choose and true.

True to know, which is intelligent and basis and motion is falling yen and the true way, which is not based on a solution is for the dealer and racial either between 50 50, maybe on <unk> and.

Oh, yes, a slightly bigger, but roughly 50 50 in the future we are going to offer the total solution approach.

Loosened up how much would it be more convergence for example, the Sop price.

Product that would be a more color I guess on the total solution based product.

Okay go on particular to pick up.

Well I touched on two share began.

He said that took the job.

Our profit you've got I've spoken to go through.

I do not see that she's got who share cooking and that's your dog and couldn't since one.

Doshi, and Cogs ubiquitous insulin financing and the generic Opex and that helps you don't have that kind of speak up.

Shutdown and that she shot go issue.

Yes talking about the used car business, we attach great importance to this business because this is a high growth business.

If you look at previous years, the used car business growth what are the higher event and new car sales growth. This yet it's also the same momentum, but the total volume.

Jenna tended to go.

Those are from true public and.

Tobey home actually going on to on the machines and you got to Jana.

On the other from two years ago, She got cash on machines, you doing Yahoo.

Jack on the Kenya higher touch the good tick.

A true up Jones from 15.

No I think the key to it which I tell you dealer do seem to be and how they're trying to shift from doing.

Now you feel no carrying value investment in TPP actually for the used car business, we have the online information flow.

We also have the TPP, which is a transaction platform offline in this way we can combine online with offline.

Trickled down to two goderich Arthur so that's good.

Well, Matt on them with you guys, but look on the balance at Citi.

Moving and a function on that back I should share.

They're going to figure out our hotel EBITDA should actually the team.

And I apologize.

You are strong and bottom true to shop.

True the flagging.

She and Africa seemed to be Jim on that that people see that you could be making book.

Totally on Chinchilla either are moving.

Moving.

Now talking about our future strategy and we are designing the feature strategy under the leadership of Chairman Lu our direction is very clear we want to go with the light asset model, we want to be a platform and we want to offer that.

Your cloud to help bell yen to digitize their operating and we want to achieve Betsy Toby could see model, which would be closed loop model, we want to be on their nationwide service network. Our target is to become the global number one use the card.

Transaction and the fact that clock on.

Yes.

It's one thing to add to you know also come into of course to integrate the financing insurer and.

And a number of other day and.

Into the entire transaction.

And relative to you and Keith.

[noise] and you there and next round of questions. At this time I turn the conference back and management, So closing comments.

Okay. Thank you very much for joining us today, we appreciate your us and and we look forward to an operating you.

And next quarter's conference call in a few months time income.

In the meantime, greed feel free to get in touch with US if you have any further questions or comments.

[noise] [noise] operator.

And this concludes today's conference call.

You may disconnect.

Okay.

Okay.

[noise].