Q4 2020 Autohome Inc Earnings Call
Yeah.
[noise] citizen gentleman. Thank you for standing by for total homes fourth quarter and full year 'twenty 'twenty earnings Conference call.
At this time, all participants on a listen only mode.
A question and answer session will follow the flow pockets of inflation.
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 on you touched on all the homes IR director Mr. Chen you may begin.
Thank you operator, Hello, everyone and welcome to your older homes quarter on full year 2020 earnings conference call on extra day.
Moving on up on distributed earnings press release, and you may find a copy on the company's website at www Dot <unk> Dot com CN.
Okay, that's call Rehabs, chairman and CEO Mr from home.
I'll pass it on to Mr. Hyde from Scott called price of that Mr. Jin Jiang from CFO, Mr. Jean Zone. After their prepared remarks, Mr. Lau <unk> shops down from you.
So well be available to answer your question before on what begins. Please note that the discussion today will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act well from 1995 forward looking statements.
And I'm certainly not to me cause actual result to differ materially from our current Inc.
Potential risks and uncertainties incurred but not limited to the spotlight on our company's filings with Securities and Exchange Commission <unk> does not undertake any obligation to update any forward looking statements.
As required under applicable law.
Any press release on this call also encourage discussion off curtain on audited non-GAAP financial measures. Our press release contains reconciliation after non-GAAP measures to the most directly comparable GAAP measures.
Available on Audiphone IR website as a reminder, this conference is being recorded in addition, a live and archived webcast of this earnings conference call will also be available on <unk> IR website.
I'll now turn the call over to order on time on time Seahawk T cell loss.
Yes.
Oh.
If I go on for Jonathan.
Yes.
Thank you Anita Hello, everyone and thank you for joining us today.
That's right Cosmos.
It's a gym more interest.
Yeah on the job.
Lawrence, Kansas, So holger.
And everyone that she is going to be also.
So you can look on kit being just you've always got a kitchen people don't usually guidance looser.
Oh on them.
<unk>.
Before I start discussing our results on behalf of everyone at alcohol I would like to express my sincerest gratitude to Mr. Min Lu.
What sort of as chairman for his extraordinary contributions over the past several years.
I'd also like to take this opportunity to share.
So you will continue to support and I look forward to working closely with you as we move ahead.
And though John Mosquitos the jobs.
So I'm going to go on.
On the other country to Google Book I don't believe she is on the Johnson what do they say it's true.
She's on mute.
The only on the ball.
The only on Jim on the you also talked with a yield vehicle.
So she's on me as long as you know <unk> seen yet.
Total well yeah.
Sorry.
Those who didn't hear the change I suppose.
Well Sean.
So its going on share buybacks, but I couldn't do that day.
I'm very honored to be joining me on auto home and tell me, what's the one such a talented and passionate team. It is by far the most are well known automobile media brand in China, serving the largest the number of automobile user communities in the industry. You know said that this company has a health.
This business model solid fundamentals and all it stands at the farhat false round off the innovation in the digital automotive industry. I'm also very encouraged by auto home strength strategic initiatives in the new car on a used car area, which I believe will be a huge benefit all along.
Long term development.
Charlie.
Tim.
I'm sorry, Jeff what are the one day.
People on time, so time will tell you about the tuition from there.
Lee.
Well you can do you think she is oh, yeah, youre on a treadmill and LG.
Sure.
So just to walk on by June.
She is on machine shops.
Net.
She is a vaginal share year over year.
So on a long way by offering value.
It doesn't go on your Chi this is John Eudy.
So just trying to get on a simple cash.
Prior to joining us on a home I served in various roles at the paint on property and casualty insurance company for over 20 years.
On property and casualty is one of the leading automotive related insurance providers in China on <unk>.
I therefore through my time that gained a comprehensive understanding of the automotive industry. In addition, my experience with little facts holiday and and strength gives me tremendous practice exposure Tuesday integration of on lie on offline business models, which we.
Will be invaluable for me at auto home and summary, looking ahead I'm confident that with my experience and what auto home has already established we can take out of homes to the next level of success.
So, let's say of all told me shows on T V.
Do you ever see Joseph share portion that's on Jean Jacques on the job.
On the army nando to wheel I won't be able to ship.
Well.
Before I, let see if Oh Gee provides more details of our business, let me delve into high level key financials and provide some color on some of our strategic business.
10 minutes on Hugo boss annuity on deal you on that maybe Toby it depends on by the dotted box sorry to retaliation towards Philadelphia on trim.
<unk> balance.
Yes.
Sure so it'll be about on Sunday.
So anytime we have total change to your balance of challenge in those things also that al tobia with adult beverages.
Jim do interest rates, you said true.
And although it didn't even told me it turns on.
Yeah.
Total revenues for the year reached RMB 8.66 billion, an increase of 2.8 per cent year over year. Once again outperforming the new car market in China during the year revenue from our online marketplace and on revenue increased.
$34 four per cent year over year on a contributed to $23 two per cent of total revenue no police data products delivered robust day year over year growth at a 70% adjusted net income for the year continue to expand and increase price.
6.2% year over year.
On the on net she was on.
Sure.
On a job to Jeff Boyer from.
Target ourselves awash reach all towards yet how many of your childhood sushi shop shares all right.
On the job, but you also need to your point or your soldiers Humke Banco do you go to your social juice all her from a gift box in Charlottesville will be anchored forner, who do a whole lot sold to watch on boy economy, and it turns out schindler jobs. So.
So yes, the jaw to ease up on these issues.
So there wont be shocked me a five day notice should work on this I. Appreciate you so what Paul just on the range.
As is well documented true all the industry was heavily hit by the COVID-19 pandemic, yeah early 'twenty 'twenty, yet to begin to gradually recover during the year.
During the year the sector saw a significant increase in demand for digital transformation, along with a continuous value migration from offline to online across the industry as a leading platform we saw that leverage our strength and established a comprehensive matrix of data products on it.
Solutions, ranging from R&D sales and marketing to after sales. This has demonstrated our ability to empower digital document on <unk>.
Automakers and the dealers throughout the value chain with this proven ability. We once again were able to outperform the market with steady growth, even with China total on your passenger vehicle sales falling 6% during 'twenty 'twenty.
So you know from Min three job holds the attendant zone. So chooses the job could you also saw on the Newport Judo true, we all need to be.
The judge and penetration.
It's a long way from bloggers.
Total Josh is on Canadian <unk>.
Yeah.
Oh two of Covid.
In June two just on Kochi goes on.
He is on my mind don't Wanna Jones, Charlie Sorry, Ingo, which all year true change from here.
Both on she's on the Doctor, who need uniforms E G.
Shame on me on India.
No charge offs, but everybody and enjoy your price a little likelihood won't be it sounds on so.
So he's going to walk us how he had a father well mischarging shoes on feet on the ASO groups.
John.
On the thought of you from Tinder on Jeff.
In response to our used car business on.
I don't have that in TTP car, Inc. Marked an important milestone for <unk> development in this area Oh in combination with T. T. P has become a leading player in chinas used car market.
By auto on strong online platform TTP is able to expand access to a wider upstream supply of used car well facilitating connections among users automakers and the dealers customers to improve transaction efficiency leveraging their transaction business.
We are able to further develop our auto financing operations and expand our service capability. Despite the decline in Chinas used car transaction in 2020 that transaction volume off TTP steel achieved year over year growth as they used to come market in China further develops.
We believe that our used car platform will be readily equipped to capture market share on a b.
Other contributors to our overall growth.
[noise] waiver on the Army she was a drop in me at Tusa just on switching jobs all day.
This is also true near the each of those homes and so on.
She is a judge on Chi who she is on hold over time.
He is simple D. J E. T is on the way to just on could you tell us on that.
So what I'm trying to influence.
Looking back at the time to try on T. We have run out that set off a favorite of our practices in order to do our part in supporting our automaker and dealer partners. During this presented a difficult COVID-19 and future periods. As we move ahead, we will continue to work.
Closely on a serve these partners by leveraging our extensive industry knowhow, while having more value in their digital transformation.
From it to several children with our branches all cause total year, where she G E. G. On that's what you do.
So on and on.
On your chin their time on Youtube.
On your argument digital team.
With that I'll now turn the call over to our CFO, Tim for more business details and a closer look at our fourth quarter on a full year 2020 financial results as well as our business outlook for the first quarter of 'twenty 'twenty one.
Thank you watch him on his thoughts let me go through some of our key businesses first.
In December 2020, the number of average theater's, who accessed our mobile websites primary pack and the mini apps grew further to $42 1 billion.
Centering on increase of $14 four per cent compared to that of last year.
On the content front, we continued to make progress in enhancing the user experience by providing expanded the content offering and optimizing use useful twos.
For example.
We're encouraged to see the light version of the auto home application.
I started to gain recognition from lower tier cities, we can market to appeal to a younger demographic.
In addition, we also optimized on a car selection tourists Inc.
Moving the purchase price check function and a customer like half the change reported created by off the ball on.
Or are they on.
Empowered or small tour, both of which support he was a student decision making process.
Proves the car buying experiences.
Sure.
During the year. We also delivered a 15 total road trip activities, helping auto brands and attract users.
In 2020.
Cumulative G N V for the road trip businesses.
Moving to on about five times debt off 2019.
In terms of data products in 2020, a total of 45 automakers will engage with our data products and the total number of programs.
For intelligent new car launch, an intelligent marketing solutions more than doubled as compared to the year of $20 19.
That's what they reported feelings in the fourth quarter of 2020 over 17000 dealers purchased our data products.
For auto financing business.
Our total GMB for consumer loans increased by 20% on a year over year basis in 2020.
Okay.
Now I'll walk you through the key financials for the fourth quarter of 2020.
Please note that as with prior calls I will reference RMB only in my discussion today, unless otherwise stated.
Net revenues for the fourth quarter were RMB 248 billion.
A 6.6% higher than the corresponding period, all the year before.
For a detailed breakdown.
Media services revenue were 1.3 billion.
Lead generation services revenue were eight.
147 minutes.
And on a market places and others revenue increased by 35, 5% on a year over year basis to 607 million.
Primarily driven by the growth of our data products.
Now moving to costs.
Net revenues was 268 2 million cars.
Compared to 265 million in Q4 of 2019.
Gross margin remained stable at 89 per se on in the fourth quarter.
Turning to operating expenses.
Our sales and marketing expenses in the fourth quarter were 871 minutes compared to 735 million, Inc. Q4 2019.
P on the expenses war.
397 million compared to 300 million in Q4 of 2019.
Finally, G&A expenses were 17 1 million compared to 16 million in the.
Fourth quarter of 2019.
Overall, we delivered an operating profit of 947 million for the fourth quarter compared to one of them in the corresponding period on a yearly.
Sure.
Adjusted net income attributed to auto home, Inc. Was one point to one 9 billion for the fourth quarter.
Compared to 1.15 billion in the corresponding period of 2019.
Non-GAAP basic and diluted earnings per share book per PD, yes for the fourth quarter were RMB 9.95.
And RMB nine pointing on one respectively.
Compared to RMB 967, and RMB 962, respectively in the corresponding period of 2019.
No net.
Let me turn to a short summary on for 2020 full year results.
We've continued to drive growth in total revenues, which increased by 2.8 per cent a year over year to 866 billion.
Media services revenue growth.
346 billion.
Generation services revenue were $3 2 billion.
And on our marketplace and others revenue increased by 34 per full.
Year over year two to get it.
Similarly attributable to the increased contribution from all day the product service lines.
In addition, we delivered an adjusted net income of three.
362 billion, representing a six 2% year over year Brooks.
Okay.
As of December 31st 2020.
Our balance sheet remained very strong with cash cash equivalents and short term investments of $14 six week on it.
And we generated operating cash flow of $3 three 3 billion in 2020.
I'm very pleased to announce that our board of directors have approved a cash dividend of approximately U S. Dollar.
87 cents per ADR.
Oh, you asked on it.
Zero point to one seven per $1 per ordinary share softer, reflecting the proposal for one share split.
Following this dividend payment, we still have ample capital resources to investing on our business is going to further strengthen our relationship post position going forward.
Let me now address our first quarter 'twenty 'twenty, one outlook, which reflects our current and preliminary view on the market and operating conditions and may be subject to changes.
At this point, we expect to generate and that's revenue in the range of.
RMB 1.81 billion to RMB, one point for dinner.
The revenue guidance, Inc. Twos.
Approximately RMB.
RMB 100 millions.
Impact from consolidation of P. T P Inc, Florida.
For the first quarter of 'twenty to 'twenty one.
Which was acquired in the end of December 2020 on.
On the operating results of which will be fully included in the company's consolidated financial statements for the fourth quarter of 'twenty or 'twenty one.
In.
<unk> as mentioned earlier.
But important to reiterate despite the challenging automobile sales environment, our efforts throughout 2022, developing new initiatives enabled us to achieve another solid year.
Our data products continue to lead our overall growth driven by a high beta products with options.
Vision.
<unk> expanded adjusted net income also reflected our enhanced operating efficiency.
Looking ahead, we will continue to invest strategically in our ecosystem to remain at the forefront of innovation in the digital automotive space, while maintaining a disciplined cost structure, you know call it business.
With that we're ready to take your questions. Operator, Please open the line for Q&A.
Yeah.
Thank you ladies and gentlemen.
If you have any questions. Please Chris.
Zero one on your tests right.
Two consoles.
Yeah for sure.
Please be also reminded it to ask only one question at a time.
Right.
Yeah.
Yeah.
Okay.
Yeah.
Yeah.
Yeah.
Yeah.
Yeah.
Right.
Great.
First question is from.
Anyone.
Please go ahead.
No.
Total and you'd have to wait for anytime Oh.
Oh got you just on what you want what I want you to see it couldn't go to the.
The Q2 guidance from Wonder Jochen good guidance.
She thought should yoga per se on the year over year growth now truthful to attending on Pie chart on consolidation yes.
Just how low teens that you got to ensure that was on what Josh said that it was true.
True.
Oh, Yeah book, how should sort of trending on a budget.
Turning to guidance.
Finally, Dr. Joshua Junior OEM, Okay, Dr. Chen Zhou children.
Hope on culture, but a budget you should somehow atrocious at the center of what Youre doing to shore shipyard, even wider range.
So a woman a product you should actually do to the Philadelphia on the challenges of each channel.
On a quarter up into Ohio challenges, most professional woman you cant on.
During the short that junior geography at a product like <unk>.
What if they don't get sufficient on challenging Inc.
That's total back is true.
And you got to wipe out I should say draw on this year.
So on what kind of on quite a fine. So thank you for taking my question.
My question really about the guidance for the first quarter. So your guidance actually in prior on the 17% to 19% year over year growth.
Stripping out the.
The consolidation of the TTP car, we still have a low teen growth for first.
First quarter revenue. So is it would no doubt to the OEM starting to do the on your budget.
Around Chinese new year. So just wonder if you have an issue.
So on the OEM in terms of the.
The budget this year, which is a little bit better than expected or it is because that so we have a very strong rental growth on momentum Oh, please help product, especially given that in the fourth quarter data products the growth as you know.
80% year over year. Thank.
Thank you.
On did go into you know a wish and Coca Cola should have done it towards you talked on whatever I have to go with us.
Jessica.
The package in total on that portfolio.
Oh listen on.
That kind of a fiduciary about particular share where she don't they are being shut.
Yes, you're good to go on.
That's all cash if Africa, she thought you could get.
Thank you for the question I would like to take this question first and then.
He may have sat out on opinions. So first off I'll, let me comment on the market. According to the association that in 'twenty 'twenty. One so total sales in the auto market with a grille between 7% to 9%.
No no I think a two day you felt like things are going to sugarcoat, what's on fishing.
Are you satisfied that you could share the Lima.
Lima got opinion, I forgot who book.
Yeah.
The heart from that kind of on that.
Sure.
She can share that sugar if at all.
You mean already already nicely each day.
With our true shifting towards how should that yellow pine pulpwood.
So how do you find that you have to get to them.
So as you know for the automakers their budgets, usually with a growth together with the sales. So they are coordinated so that's why we foresee that would have a higher budget. If the sales would be growing and also compare with 2020 with you we will see new a new models.
<unk> released to the market because in 2020, but this is the next to the impact off the call me on 19, yeah. Some delays on the new car models on the sides, where they choose to launch on line. So we would foresee there will be new car launching business in 2020 put us on.
On to one anyways.
Or do you feel like you mentioned, reaching a cash effect should be definitely copaxone.
Additionally, on a day to go to Asia.
Chuck do you give up on which end up on that actually.
Got it on that how do you how to do that in total.
It's a high tide to go its going to looking to infer that from here I cover.
The huge bulk with G E.
And Chuck Goldman Sachs took a.
Or do you like kind of weird.
Yeah.
And also there are some not so positive news because the intended on to what we do see some outbreak of the epidemic in some of the local regions, but I have to say that firstly. This is only local and the regional on a secondly as to how much that on one and in fact, the automakers we are.
Still under some estimation on the investigation on the survey. So that's why it's still too early to make any further predictions. Thank you.
Yeah, just to add to Mr. Charles comment.
Our.
Uh huh.
We'll see.
On a traditional businesses will turn back into positive territory.
But you know at least in the first half you know on our primary growth drivers are still going to be our data business and our used car businesses.
Thank you Eddie.
Oh.
Operator.
Thank you on next question's from Miranda Zhang of Bank of America Securities. Please go ahead.
Thank you uncle, a Y O y from.
So as usual with it right now.
Can you kind of know what the Lindsay if you don't do the actual true.
Now if you want to share a couple of days something like Goldman Sachs, who is a well Michelle go Oh, Oh, please I'm not going to garner sales.
Just to let you know.
Well it seems that Blue zone.
Sure.
She goes to be on a good Tom.
Wow.
Yeah.
A couple of things on it.
Patty.
Deal flow does she talked channel.
Sure Oh, yeah hold on.
Total juices John's Sheila that's how would that change on the fly that being dealt tinge on Pi.
Oh, Oh on me.
Now, it's a balance sheet pads on juices.
And you know what you're going to show Hollywood you don't go on Saturday.
No well I think Josh.
My question is about the used car business can management elaborate more about how you integrate the TTP with your existing business.
What's your new business clients will overall used car business and also it would be helpful. If you can share with us P. D piece operating matrix.
Such as transaction volume market share and they're twins.
Lastly on can you comment on how the consolidation on T D P could potentially impact.
Revenue and profitability in 'twenty one.
Cost to go when it came out to go.
Well, we didn't talk a lot to go on that for their non halfway that need to go with you during the initial Patrick <unk> Joe.
So Jonathan sure what's going on politically.
<unk>.
Mr. Jim <unk>.
Even that took a.
From a man woman job can never had actually got halfway shuja.
Just out of our total.
China itself.
Yeah, what I had to go put it actually not true chinchillas can have on it.
On your strongest net.
My bank of which goes on and that's where the hygiene.
Hmm share it would be it will see the Chilean Inc.
B y.
On the agenda in terms of let's say about arnold's flow to check out the debt.
Give me a packet flow.
Ah kidney apparent that you took out the gutters for that took a chunk of it actually got into ally shipboard solar but it's.
So like the geography.
Good day.
Sure.
Johnny budget.
On the Pasha total CEO, Bob you can book in pod therapy.
Patrick we're totally to the guidance question.
What type of tissue tissue that.
That kind of Entropic bumped well.
Thank you for the question.
I would like to join Mr. Joe to answer this question, we especially related to the integration on the planning of the used car park on business. After we control the share is outside T. T. P. We actually continued all auto home with used car strategy to summarize that is light asset.
Model and make it as a platform we use double clouds to serve our customers. We also want to connect the full value chain and we want to trade a closer look at the seat to be on the B to C. So we are dedicated to bring this platform has the biggest youth.
Car online transactional platform and in this regard we have bring the most egregious part which is the transactional part to this whole loop.
Thiago from in that just Utica.
She never end up with Hana.
Joseph <unk> com.
Joe.
You should see it on pension.
Pinch hitting that that are on our orange Armenia, especially on watch.
Okay.
Hi, Truvada, you've got to go do.
You got to go to gasoline.
You know for the T T P. In terms of the transactional volume in the Steve to be model. It is already the biggest in China and on the 'twenty to 'twenty when the home market. It was not so good on TTP is on contradictory is growing its business.
Well it might shy from actually does share.
Great job.
Hopefully, it's the extra cash.
I'm trying to you.
On a continuing on each year, while I'm on that.
Di satellites that makes up on them.
Merchants you on passion, yeah, with a partial value because it couldn't hogs are bound to see.
Don't talk about true.
Our total shionogi, a bunk room sharply.
Got that cheekbones, because each comped on I think true.
Oh on next steps would be joining hands together with Pam back on the path P. M. A C. We want to bring you know chemical reactions together with services.
On a we would've helped us see to sell costs better and also helped.
Those could be inventor day.
Better inventory and in this way, we can create more value.
To add on this.
This subset.
So net or is small.
Last year, despite you know actually declining used car market.
Market.
And.
I think they were expected to sort of breakeven sometime in the second half of this year.
Uh huh.
They will have a minor impact on our.
Bottom line.
On the expenses.
Contribution to our topline on definitely positive.
And also you know I think.
All used car online platforms has seen a declining.
Sales volume was down the revenue loss here in China, except with TTP.
So if we are not misunderstood sort off on nuts on sort of the misunderstanding then you know I think.
They are already the largest online transaction platform in Chinese used car market last year.
Thank you that's why on a car.
Answer.
Yeah.
Our next question is from Thomas Chong of Jefferies. Please go ahead.
Oh. Thank you. Thank you she wanted to just on what you want Oh, well, there's been a what's being said that'd be on Thomas I wouldn't either on a hunger.
So we saw a woman say book Oh, So what's your timing on things being that he could total system on the now hunting wise young he does he has what I need to completely coming yes, Georgia Oh. It's on go so the hung you'd say took a chunk. That's won't go there you go I don't want a new age.
It seems that come to you on kind of what we should be true usually you always got each in the U S.
On food as well hit that.
So thank you for taking my questions I did is made with asking on behalf of Thomas <unk>.
And so I'm not sure if you can comment about our day to a product strategy in 2021 and also can you comment about it on my advertising Oh look this year on the back of the recent outbreak of Covid. Thank you.
Yeah.
Yeah.
So it was in the army.
And that's on a you know.
Momentum. So we just haven't been as shown on the Polish it's only on a bathroom tissue.
Tony the cocoa shoot out total measure total social good yeah, B Union on Saturday or Sunday.
Southern yellow yoga.
Oh sure enough the swiftly in shelves on net.
So those I'll shoot genomic and shall not be union defense on.
Oh call Women June show show on the degree to which these hunting.
Yeah.
U N the change out of the Gulf will go down.
Thank you I would like to take the data product question. If you look at 'twenty 'twenty our year on year data product growth is 70% and we actually had a 45 clients. In 2019. This number is only 36, so which means that we.
Have nine new customers in 'twenty and 'twenty in terms of the intelligent new car launch and intelligent marketing solution, we doubled and also for this one day.
It is offering to the dealers, we already had a business relation so we didn't want on 17.
17000 dealers.
And clearly our E&S I mean, so do you know Moshe you didn't do it well may yield a chengdu Wuhan should oh.
Oh, Yeah on wash theater there.
Just sort of just hanging on the Hawaii Jixi thumbed are women.
Good day.
Some of them.
No don't read in the pendulum has seen that she shoot up on that one that truly see the change in the way its Louisiana, social glad in true <unk>.
The genomic stuff.
On the yeah, Yeah, Pablo on steel a man junior intelligible.
Sure I'd be Johanna zone cohort two one.
Now talking about the 21 to one we already have some new product and we would already continue to serve the Oems on the dealers I know we are also going to say expense our marquee share.
To stop the intelligent series of products, we are going to have more on the us side.
New offerings and also for the small and so we would have more R&D set of solutions. So you're on this way we are going to add on new product in 'twenty and 'twenty one.
Are you know how are you the zone on the assistant managers are tricky on women's I'm glad to tell you who they want the tenants with G.
That should be on shop on the bolt on John's other cellular shows from the Windows.
I mean plenty of time to what we are also going to lunch day industrial Internet network, and we are going to be able to hold can we had this as model out of that.
Thank you.
Oh.
Bringing it to teach a price what do we need to Oh.
With each other.
I took a look and see it went up with high channel, which are do you go.
Are they argue that Covid you showed up as we go hard to argue that.
Denise you mentioned where young.
Which had 19 guys should total of a cutoff official Oh generics James Hardie on the wall.
Cause of Hearth Africa, South Africa, truthful and stuff she got Hutchison.
T true.
Sure Scott.
So you got to get out of the Keytruda showed up.
Tricia you cause EPS, you can put them back on it it gives us it didn't have to come true.
Telephone got cold on what kind of mechanism in gosh I feel quite good on sharp sharp fluent here shortly.
These are the right.
Teaching English Irish book Shakeout book are you willing to share count drugs, they're on.
Alright, well I shouldnt ago, while total food that took away.
Without the tissue.
Tungsten.
The ocean Astrazeneca on coffee.
She's going to go.
Sheldon zone.
Not particularly actually per guidance.
No I don't want to take your second question in terms of 'twenty 'twenty. One there are some bouncing back of the COVID-19, and some of the regions, but I think the situation is totally different from 'twenty to 'twenty because in 2021, there's only one or two region.
Which have the outbreak which is local on the regional and also the state government already took greed style anti epidemic measures to control the epidemic. So we only see one or two regions. The sales may go down now talking about to the Oems budgeting.
Actually during the epidemic a lot of expenditure would be transformed from offline to online.
Second trend is debt.
A lot of touches would it be concentrated on the top players, especially the leading players that's also a trend.
No such trend is the total expenditure on a budget would always go with the sales if the sales growth than the budget would also go up.
And Oh sure Joe boxer sure.
Could you talk about that puts on teach you the shutdown that shield you talk especially on a.
Day to day.
I took a.
Sure sure so channel.
Oh, perfect with trivia shifting yoga again, how you think book.
Now let me summarize it's on this one too once epidemic only occur in some of the local regions and this only affected OEM sales in some of the local region.
And as for how does that impact the overall online bad debt of advertising of the Oems, It's still too early to make Amy you know conclusion.
Chip thank you.
Yeah.
Okay.
Yeah.
Operator.
Our next question is from <unk> channel.
Please go ahead.
So you can do anything to sort of see what what you didn't know that momentum.
Or you can't be inside of India.
Huntington Highway lights.
They're doing some value.
Then how about what how the pins on that your attitude on media.
So how do I live in tissue.
Keytruda Kenosha charge on Keystone.
I get that.
Yes that could be on Dutch auction that's true.
Yeah.
$2 from home.
Now, let's see.
Thanks for taking my questions I have two questions here. The first question is related to that you can see consolidation.
So can management share growth expectation of TEP for next maybe two to three years and the key growth driver behind it.
My second question is about.
New nuclear energy cars.
Because we see a lot of.
New Oems appear to be in the market and what will be the impact on Oh.
Auto home business operations. Thank you.
Oh, Hi, Bruno.
First of all of our questions.
Mr. Sato will address your second half weighted question.
So I think you know ggp's.
Growth driver will.
It will be several on the primary driver will be either growing used car market in China.
We think we'll be growing much faster than the new car market right.
All day on the.
As I mentioned, the largest online transaction platform already not only the auction platform in China.
And we're hoping that with the you sort of help from us by providing them with sellers, who leads our buyer leads on to.
Financing from King on financing.
Okay.
Insurance, even though a.
They will be able to grow not only their own lines seem to be on the beach.
The auction, but it won't be able to provide a lot of value adding services too.
Sales in the buyers of used car and also the theaters.
And the better too.
We are seeing dark sort of integration going on in the past two years from question loosely.
We hope that we'll see a winner take all sort of scenario in on.
Why use cost start to flow TTP, Inc.
Together with us.
Oh yeah.
Uh huh.
Oh, well that's it on.
Right and to me I look like here.
To kind of on which I know, what we're going to shake out.
So fishing shipyard.
Which had never been bad debt that you can pull as well so that's what I'm talking about any cash flow.
There's a lot of game that Russia, he cannot give it to John suggest that you may get into cash at outcome.
Chicago, well on the Ts on total for.
Womens home neighborhoods.
Stop getting top golf on that topic.
Consumer.
So as you talk to finish them.
Sure.
Well on window time, you'll not be true, but yeah. That's that's on the phone.
Yeah.
So you could tell us.
I would now like to take your second question related to the renewable energy costs.
Actually we have very good collaboration with Roche new players in the us in the renewable car you know business. We are on early bird in this sector. Because we had a lot of planning in terms of content and in the channels and the business models, we actually adopted.
It's a very innovative models very different from our collaboration with the traditional OEM.
Oh pick a woman, who got that got Washington, but Julian.
Tricia to century shell on what's it rather than looking at the Hudson The book she.
I'm trying to tie it to seize on it.
Total.
I don't know who you're bound to take.
Sure that's a good call Chris shook autonomy to the theater show up on it took a wash it out fishing game on.
You should not on media weight.
She felt fishing show to you.
You touched on China.
You got some close on time.
I'll pick on that channel now, which I'm sure you can cause she's got.
Hold on one hand.
Shown on conjecture on that call.
To me on that took the show there Jack.
Got it.
Yeah.
Darla took us out what man woman sorry, It took a total Atlanta.
John I think a shortage on the on what we should talk on revenue.
Now talking about our collaboration with the EV car Oh, yes.
Our perspective is from this to seaside users, we are helping them to select the most suitable EV car for them.
We also provide comprehensive solution one stop solution on the full <unk>.
Process solutions to the EV car Oems if you look at the total EV cross sell in terms of the Chinese car market. It only accounts for five per cent out of the total car sales.
In auto home or maybe isn't as already exceeds five per cent of our revenue.
Operator next question please.
Our next question is from a brine from Citigroup. Please go ahead.
It should have quite at home just on what you want.
And same question for yourself on that yet.
Sure.
That's true quiet hurting you on some Gulf Heidrick way Charles.
You talked about Oh.
It's also on quite well Josh on Wednesday.
Yeah.
Yes.
Cool.
Do you from going to come about women's on what you call our Unionpay card some drop.
So a woman who play two cartoons, we should assume the tried and true.
Oh juices were a woman's yesterday in Chicago, but if you choose to go on.
So part of your book.
So you've got total addressable market without all alright, so not zone.
Hum.
Oh, Yeah no doubt.
I'll, let you go from there.
Thanks management for taking my question Congrats on what makes sense on the solid results, especially on what's it up her thoughts.
So given our penetration on.
OEM side before they increase and fuzzy logic.
I know it wasn't that some view on the growth rate.
What's the update on tier one and also any new debt how production. This year I remember medicine, that's Mexico its debt.
Sauce segments for OEM on the dealer is going to be like over 20 billion RMB being 20 to 25 and the Marriott no.
And its internal targeted bolt on to our you know what market share.
All of them to take in 2025. Thank.
Thank you.
Okay.
Oh, well, let you see yeah I think so we're just ramping or in your in the agenda. The glue on Nashville as you know why do you suppose the NGL from you know we call them and then she ended up having the ocean on tissue on the timing.
Time, Inc.
There are no sheen champion up on was the only thing to say.
You can see also the double but not true I'll show you all true John Doyle will maintain good though so that's why you saw that.
Food at home and Julian that user agenda on the Hershey, that's only on the total debt.
Jay on the HUD on dual debated on the bi woman agenda the poetry not.
We'd rather be a simple way.
We are women.
And.
So it was allowed to put it on pushing the near the Wheeler.
Thank you for the question actually talking about the data product.
Listen to the intelligent marketing solutions, we're going to further enhance the market share and we're also going to launch a new product to cover the non marketing solutions part, especially on the digitalization part and also on the R&D. The research site, although yes, so that would be the increment.
New part of our business and the data would have helped us to establish a very good blueprint for the next to feel yet and we do want to grab more market share from the digitalization process.
Yeah.
Okay do you true FCA.
On a second part second part of your question on.
I think you know, even though you have seen a very high on our growth in 2020 non paid up product.
But the overall market as big as you mentioned.
And then a lot more you know, let's say car model for us to help them to do intelligent new car launch on.
Energy marketing.
And then you know.
Welcome to rule out you know more services to dealers, who is willing to see it so.
We believe you know in the.
Our mid term mid to long term you know the.
The only the only fitting to all our growth in that sector is probably our ambition.
And.
That's alright, thank you.
Oh.
Operator.
Our next question from richest zone at <unk>.
S. D C. Please go ahead.
Yeah.
Quantities on what type of especially anymore.
Just hold on.
Oh Boy O N.
Do you go on.
So what you saw.
On Sunday and stuff on it.
Uh huh.
So I'll point you balance.
Let's hold on someone's, it's always shoot to shy away from it.
Uh huh, what's on one side.
On Union I saw you don't want them diagnosed.
We book quite so with all of you Dan.
Total play Walnut.
Uh huh.
I'll comment on the whole do you have a once you just had where you saw him on.
Hi, Paul Merrigan, Oh, yeah.
Be that flow Manhattan.
Pricing.
Awesome. Thank you management for taking my questions I was trying to say it myself. So first question is about the user growth strategy. So we see on fall Kilohertz I E.
Strong user growth.
That's on growth again.
So we so I wonder what about the sounds that marketing spending to drive user growth in 'twenty 'twenty, one book will be the strategy.
Strategy and.
Andrea.
And the second question is about the negotiation on B B generation floating price model with.
So what they saw on latest update on debt. Thank you.
Oh.
Uh huh.
Hey, you guys are supporting interest within that study on.
Rd Rd argue about what kind of a debt to go do you all have a tissue boxes.
Because it's sitting on its got it that's actually out actually actually somewhat to get Vega. She did a good job.
Shipyard CRE book, and Sheila defend a true a J.
With our shops.
When I take a show on that sector.
Okay.
Shipping.
True.
John Lupica Satish.
Thank you for the question no I'm talking about an hour a day you actually in 'twenty and 'twenty. One we would expect our D are you to continue to grow we would have three fishes to summarize our dear you growth Firstly more video based secondly, younger generation and thirdly.
A more granular level after the lower tier cities on the lower tier markets.
Yeah.
But erika that took a bite.
You have to go up because I'm quick to upgrade it to go on chocolate as you can with you.
Just out of a zone. So it took a tick.
For the younger which I'm not sure about the concession activity recent vinyasa just hold on home and also from Jefferies.
No I'm talking about the leads generation product pricing actually in our last quarterly report, we already said 30 per cent of the Oems on the dealers already accepted the floating pricing model.
Well I mean that junior debt you can put me on what Michel <unk>, Jeff sort of Jack could you talk to Josh on the market.
How much you won't go colourful torture.
On the existing law.
John.
Got it.
Well I'm not I took a took a wait wait for the gene hopped on.
<unk> got a daughter.
So net chip.
Finally this book.
And also this year, we have two strategist firstly, so relative dealers, who already accepted the floating price model, we are going to offer them that is service.
And also we are going to offer real Steelers more incremental.
Leads on incremental services on its definitely we're going to expand the coverage of this pricing model.
You figure out on ticker.
Can talk to Josh.
Then go to share maybe they won't shouldn't I suppose what Mr. Josh on the payment book and daughter, she on the holiday portion on the way we should gene the gene Hall that many ships you shouldn't see that took the geos on chicken.
In order to nurture Oh Gee.
So we're going to offer more business opportunities for our dealers, who have not signed agreement with US we are going to offer them more choices on them.
We are going to offer more deluxe services for them and also for roads for already accepted the floating price them auto dealers, we're going to offer them better services on the more incremental services.
Yeah.
Thank you there are no further questions at this time I'll turn the conference back to management for closing comments.
Oh.
Got you about how it's on job changing the way she shops.
And then sorry, Jojo, who sort of changed your view.
I wouldn't do a Jan one so you see you on Monday, she choose it.
Thank you very much for joining us today, we appreciate your support and we look forward to updating you on our next quarter's conference call in a few months' time and I mean any time, please feel free to get in touch with US. If you have any further questions or comments.
Q.