Q2 2021 Autohome Inc Earnings Call

Ladies and gentlemen, thank you for standing by for auto homes second quarter and interim didn't eat any first earnings conference call. At this time all participants are in a listen only mode a car.

And as I say show a follow the formal presentation. As I reminder, the conference call is being recorded if any objections you may disconnect. At this time it is now.

You have to introduce your host their installed so homes our director Mr. Song you may begin.

Thank you. Thank you operator.

Hello, everyone and welcome to older homes second quarter, and an interim 2021 earnings conference call.

Earlier today auto home distributed.

Its earnings press release, and the human find out hockey on the company's website at Www Dot photo com dotcom up here.

On today's call, we have chairman and Chief Executive Officer, Shandong Co President mute Hi.

Hi, Sharp Chief Technology Officer.

My pleasure.

<unk> Vice President.

You'll go.

As director.

Yeah.

The prepared remarks, Mr. Luo.

Wow Joe.

We'll be available to answer your question.

Before we begin please note that.

The discussion today will contain.

But we're looking fitbit made under the safe Harbor provision of the U S private securities.

Up 1995.

Well, we're looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Potential risks and uncertainties include but are not limited to those outlined in our public filings with the degree and Exchange Commission.

Although home doesn't undertake any obligation to update any forward looking statements, except as required under applicable law.

The earnings press.

Press release and this call also include discussions of the audited.

Non-GAAP financial matter. Our press release contains a reconciliation of the non-GAAP measure to the most directly comparable GAAP measure and is available on older homes higher upside.

As a reminder, this conference is being recorded.

A live and archived webcast update earn income equal will also be available on auto home IR website.

Now I will turn the call over to auto home, Chairman and CEO, Mr. <unk> Ms lumpy deals.

Sure.

Dr guidance here.

Defense Syngenta.

Thank you everyone and thank you for joining us today.

Yeah.

Does she.

She was the Johnson father.

Do you see.

Neither.

Oh, okay.

So don't you see that maybe.

Sure.

Non-GAAP total solution.

So regional treatment on Cheetah Sundance.

Someday soon teeth into the sunset by winter assignment.

<unk>.

Children. So we also have been entertained him soon.

<unk> total tissue bumps are challenging in terms of simple teng.

<unk>.

This was a cheeky.

Can I just go with me Xiaomi that season.

So Tommy jeans.

Donaldson.

For me it up without a full time you shouldn't they got to shed a little light.

Life is shifting.

Hum.

That's about <unk>.

But you know just intelligent Geneva.

Those are the BOP Palm Beach in the shield one game.

We are pleased with the improving metrics across our new.

In the second quarter, along with margin expansion total revenues for the second quarter or $1.90.

4 billion RMB revenue online marketplace, and others business increased 10% year over year and contributed 37% to total revenue compared with 23, 4% in the same period last year.

Data product maintained its strong growth momentum.

We're raising our revenue increase.

<unk> of 47, 1% year over year, thanks to the higher contribution from OEM data products.

We are excited to report that with steady operating efficiency improvements TTP broke even at the operating level for the first time in June representing a significant milestone car.

We also made further progress in our corporation with new energy vehicle automaker.

During the second quarter revenue was from an EV brand jumped 238% year over year adjusted net margin in the second quarter continued to pen writing coupon seven percentage points.

Year over year to 48%.

Yeah, it'll change or shouldn't get that share position to change. So soon so jonathan.

Oh, yes, haynesville touch out on beef wouldn't be a shout out each year.

Chi deal, where you seem to touch on Europe to your home.

It's a gymnasium Wendell Tony you faded, Tony you shouldn't be Shanghai beverages, Sundaes Cheever packages for ETE.

So why rents I know, China, Samsung team with turnkey opportunity the seven habits.

Homebuilding as usual good job she is each year.

<unk>.

<unk> hundred year with many geographies.

Neil.

So the challenge you have with chimney Schoenhof's Weird Council to talk she is somewhat challenging.

The impact of global chip shortage on the new passenger vehicle sales market gradually deepened in the second quarter.

The production and sales of new PV in Maine decreased by two 7% in the one 7% year over year, respectively.

This trend continued in June with production net sales declining by 13, 7% and 11, 1% year over year, respectively.

Different automakers will further.

Impacted by the sharp rising cost of raw materials, and automakers contend with multiple unfavorable conditions, they're adopting an even more cautious approach to plan must win battles in our traditional business is facing great challenges.

On the other hand, China's auto market has continued to evolve.

Robyn with mixed performance across different segments.

Market has witnessed expanding trading volume for used car and the new energy vehicles are moving into the park lane highlighted by a secular growth trend in monthly sales as a result, the automobile industry spreads widened.

Yeah.

<unk>, she's a vagina swisher guidance, so you're diagnosed bootie year.

<unk> is a gene she's our car charter fleet balsa wood in the Shandong EMG Park Hyatt.

<unk> with <unk>.

Permian Commvault buying fiber our soldiers haven't been shifting.

So outside of the shield box all freedom homes has hung genealogy department.

Yeah.

In the wake of challenges and opportunities stemming from the industry changes, we continue to improve our CN user experience, we're implementing hierarchical management for b and customers to provide high value.

Part of it all the smooth underpinning our efforts to maintain a solid fundamental across traditional business with industry leading position.

Meanwhile, by vigorously developing new initiatives across data product, new energy and the used car business.

<unk>, our second curve of growth to promote.

There is a long term sustainable development of our company.

She had at IHOP homegrown solutions charge offs.

Our total <unk>.

I mean cargo ship of the Java, the ONEOK with Chi Chi search where you may have.

Powerful <unk> assignment.

So.

It can be volatile.

Question Shandong.

It comes off.

Total G deal, we achieved the majority of that.

Punching through.

So here's what <unk> top 500, <unk>, so what she says <unk> chief of Europe.

Presumably yes, Shanghai engine, what's looking while contract synergy.

The issue chop off the ball a chinchilla named a forgotten.

Specifically, our constant effort in content enrichment are preparing our progress and we are pleased to see our traffic continues to lead the auto media.

<unk> vertical the path and prototypes volume of second and third player while maintaining a rapid year over year growth. According to statistics from Hot mobile in June the number of average <unk>.

Who accessed our mobile websites primary app and many apps grew to $44.1 million.

Young y presenting a 16% year over year increase.

In addition, with the upgrade of our App, we further optimized user experience featuring more video live.

Live streaming and interest based content offering.

Florida is poised to attract a younger demographic.

Okay.

She serves as a key for your balance sheet.

Schindler saw from the huge Armenia tollbooth too Nicole so the important mission of such a crucial <unk> Europe.

Keith importantly.

<unk> product.

Fame Qualcomm startup b.

We will achieve a new <unk>.

<unk> <unk> shouldn't say Europe or Tucson.

From a tissue Hong Kong schedule here.

Even simple <unk> continue to need each.

She has a need to sell on Sean.

With regards to our traditional business. We believe we will remain as the leader in terms of market share in the auto media vertical and we continue to focus on key customer.

<unk> customer type solution to meet their needs.

We are enhancing.

Service quality.

We are also proactively expanding outside.

The non advertising business for example, we help automakers with user operation offering OEM direct access to their users and the aggregates their own user assets.

On the leads generation front, we continued to strengthen.

Our physicians by providing dealers are setup operating tools, such as live streaming and instant messaging to help improve the operation and the conversion efficiently.

I mean, they're quite small pharma chimney.

She has a job so near ottonian shipment year on year.

P.

Our preclinical Susan G.

Europe also.

Hi Chi.

Yogi bumping into Colombia.

Shifting attention.

Jim.

Somebody chose Jive X.

Shipment Yadkin pankaj talks a little bit.

Good night.

<unk> was up five resolve outside the box that Tom Schindler.

Uh huh.

Amit a fast developing EV.

The market, we established a dedicated new energy business Department.

<unk> market opportunity.

Business model innovation.

We are finding solutions to address industry pinpoints in branding distribution channel in the us operation, helping automakers emerging and growing opportunities first.

First half of this year, we cooperated with plenty of UV brand, resulting in 200 and a 38%.

Over year jump in revenues from <unk> brand across our platform during the second quarter.

Exceeding the growth rate of the <unk>.

Would you be industry.

On the EMEA, so the truth of the Argentinean peso.

Quantify in the Humana homegrown Sogou pinyin browser.

<unk> does not seem to be at Juicy Changyou, BMR Chisholm <unk> higher than the knee Togo Chipotle.

Ginger hogwash.

<unk> is a new hotel in Shanghai.

<unk> sold two exposure starting mid teens.

<unk> submitted your wage inflation.

Provision of two jobs, we tend to buy a ship in China, while my questions Archie Hoffman bogey she has a job.

Chantal fodder tilson that Shanghai the shovels.

Now turning to the used car front, we believe 2000.21 billion to be a crucial year.

Home and TTP and we are committed to deepening our cooperation with us.

Perfect.

The acquisition of TTP Auto home used car business has performed.

<unk> end to end business covering the boot used car lifecycle from selling to put us in a used car which enhances our.

For automated with the users and customers.

And TTP supported by auto home has improved operation and the transaction efficiency.

June TTP broke even at the operating level for the first time, a significant milestone that demonstrates great synergies between <unk> and.

Our BP.

We're also looking for other opportunities that could lead to.

<unk> seen a distinct development and expansion of our auto ecosystem.

Soldiers Hanmi Permian Gen Z cohort fusion with our shop, she surgery or Bob or Tony.

Sure.

Yeah, Jim so cohort one of them.

Dr. Sergio <unk>, our soldiers happening sooner software virtual and cloud Pos sharper slowdown somewhat cyclical.

She has also introduced <unk> solution.

<unk> gone from GE could Jonathan we bought hoon Chang here with.

And keep talking with our children Chunky Johnson.

Moving onto our data products, our consistent effort in product optimization and the effectiveness improvement has been gaining momentum among customer in the second quarter. A total of 19 automaker utilized our data products.

And the total number of programs for intelligent new car launch and the intelligent marketing solutions with more than 30.

That's what data product for dealers, we remain focused on product upgrades and enhanced product value offering a full spectrum of services from user acquisition transaction.

To maintain them.

Shlomo Samsung Cheetos.

She is a majority owner versus a footnote to achieve those unusual G also Javier Cid and healthy.

Anyway.

<unk> hi.

Sure sure.

Sure.

<unk>.

<unk>.

One challenge in the Tucson IPO.

So let me just also on that so I appreciate you Kwon Jimmy unit Fuji.

Women Geohazards shall we assume you have other poses a car volume was up.

Challenged you finish out the Choppiness and Giovanni.

Couldn't hold up our silicon.

In conclusion, we are fully committed to maintaining our leading position in terms of traffic and amount of share in the auto media vertical while exploring Ras pathway in new business area.

Have achieved meaningful progress in data used car and <unk> businesses and our strong balance sheet.

<unk> and profitability allow us to make investment in.

These key areas, we plan to announce our strategic upgrade plan in detail at the upcoming Investor Day on September 15 to see more market share opportunities and ensure our long term growth.

Tom was a change of GE adoptions of shopping with us.

I'm, assuming you achieve those shop visits.

Tom Bernardo sources up yes, so essential to talk to you quite a bit we also substituted.

Jim This is chunky five average out so much.

She is a churn them now to safety.

So we've seen two of Showtimes.

<unk> well.

Challenging cheaper hung and we will continue to put it back to Chuck.

She is a hungry that's hung Houston's I'm curious of that movie.

So a long way and I paraphrase the target synergy Cheetah, who chooses a job you cannot absolutely right Keith.

Target achievable.

For me on Chi Chi Zhang with <unk> solution towards Halloween when Europe.

The chart.

China is the worlds largest new car market and the largest <unk> market tenant used car market is also.

Food at a profit pockets growing major market in the world. However, in contrast to developed countries kind of.

Car ownership per thousand people and a used to new car sales ratio still have huge growth potential going.

Going forward, we believe the auto industry will gradually recover.

One from the temporary difficulties, we are facing at the moment and our long term growth trend remains unchanged looking ahead with our strategy upgrade and our cooperation with peanuts in terms of internal resources traffic and the technology, we have analyst room for further growth go beyond ourselves.

Cover and bring more value to users and customers.

Yeah.

Sean mentioned, China Gen challenging you saw we apologize.

Our CFO Jean Hu.

Hi.

With that I will now turn the call over to our finance director and down for a closer look.

Our second quarter financial results.

Thank you.

Now like when you're walking through the key financials with the SEC.

Please note that athlete fire phone I will reference RMB only in my discussion.

I don't want to no revenue for the second quarter was 194 billion.

For a detailed breakdown media revenue came in at $600 million leads generation service revenue was $744 million and the online marketplace and others revenue increased by 10% year over year to $594 million.

Similarly, driven by the consolidation TTP.

Philips blueprint the contribution from beta product.

Moving onto car.

Cost of revenue was $262 million compared to 255 million in the second quarter of 2020 gross margin was 86, 5% in the second quarter compared to 88 five.

And then in the same period last year.

Turning to operating expenses.

Sales and marketing expenses in the second quarter were 552 million compared to 872 million a year ago. The decrease was primarily due to a decrease in promotional spending.

Product and development expenses.

$335 million compared to $326 million in the second quarter of 2020.

Finally, G&A expenses were $177 million compared to 82 million in Q2 2020.

The increase was primarily attributable to the consolidation of the TTP and the bad debt provision.

Related to our search and advertising customers.

Overall, we delivered operating profit of $673 million for the second quarter comparative with 800.

$71 million in the corresponding period off kind of thing.

Adjusted net income attributable to outperform Inc.

700.

Other than the 19 million for the second quarter compared to 881 million. It is of course, something theory of 'twenty 'twenty non-GAAP of basic and diluted earning per share for the second quarter was 157, and a 156 RMB, respectively compared to $1.85 and one.

RMB in the corresponding period of 2000, Twenty's now I've got the basic and diluted earnings or EPS for the second quarter was $6 to seven and a 626 RMB, respectively compared to 7.3 nights and a 7.36 RMB in the corresponding period of 2020.

I felt.

June started plenty plenty one our balance sheet remains strong with cash cash equivalents and short term investments for 18.43 billion, we generated operating cash flow of 581 million in the second quarter of 2021 with that we're ready to take care of patients.

Operator, please open the line for Q&A.

We will now begin the question and answer session participants whose question I suppose please press one that if we can keep it.

And acute care.

So the queue. Please press zero to.

He likes your chances of Kashi shiatsu when she said.

Yeah.

Oh, Madhu tuning them into like high should follow.

And you should know that you sell T D.

Plus we have Thomas Chong from Jefferies. Your question. Please.

Yeah.

Yeah.

Thomas Please go ahead.

Yeah.

Yeah.

Yeah.

Hello.

Alright.

Operator, there's no no one to us.

They own libraries.

Next we have Richard Hi, Thomas.

Oh, I'm sorry about that.

In connection with some.

Hum.

Uh huh.

Oh no.

Okay.

Yeah.

Going forward. Thank you.

Oh, yes easily.

Yeah.

Thank you Sheila.

[laughter].

Women feel.

We we will chairman and CEO Ms long to answer your question.

[noise].

[noise] each of them.

Who knows if they win.

So what I'm doing.

One of them.

Some things are good junior somebody in Thats just.

Oh sure. So it is a little cheaper.

Judging by doing genomes to Cuba.

Got it in each of those just like all the much larger new customers a teacher doesn't shop.

Mahmoud you end up on a jewel in the game.

There's one Joe Joe and I sort of took a a shouldn't tender.

T E G Young Chinese there's little songs on the street, but it's the majority of the order.

[noise] adopt them, but the system to treat some of them new window. So just on that.

So now I'm kind of wouldn't you, though you not simply about you can get the switchable claims because it all you did those are the why don't you.

So it shouldn't be a midstream on that.

Well known winter some good trend in number of Heidrick way too cheap.

There's little shows all of the hydropower, you'll you didn't go to the children.

Children's onto digital computers.

Be it isn't a huge honor that.

Cool.

Good boy take all with total revenue.

Well. Thank you for the question actually if you look.

So the first half of the year.

And then we make some judgment over the future outlook.

So first of all Q1 data was really good in the auto market Q2, we do see the data dropped sharply and how can we communicated we lay industry accent.

We found out that.

And of course enough supply of chips as well as the raw material increasing off the cost.

Does it impact the auto market I don't think this situation will be.

Eradicated in a short period of time, maybe in Q4 the condition.

And maybe more east so.

So we believe that for the whole year in terms of the hotel itself, we would experience positive growth. However, the positive gross would it be quite not so robust ito maybe single digit growth.

So definitely there will be less than 10%.

Okay. Thank you for that long answer hopefully so we can go ahead.

Nick do you have to be from HSBC.

Question. Please.

We don't know.

Because oh.

Since IPO.

That's what it seems is job one.

They've seen.

Sounds good.

Hi, Joe.

Oh, my goodness without telling me.

So one month since I talked about Europe.

That's helpful.

It seems that.

It's almost like a siem the Siem that's helped me and I sure hope you're up at once you'll start when you shop I need something.

Oh sure Yeah, that's it.

Okay.

A couple of months it seems that was all true.

Oh, yes, I've seen some car T O.

See you soon.

You guys had done a high yield.

Hum.

It's all being called out you said Oh.

Calculate this myself so I have two questions. So first one yourself can management comment how this regulatory environment affect the competitive landscape going forward and what other cost and opportunities that we foresee from this new front month and second question is what is the outlook for it.

Used car industry and how is the competitive landscape and what are the areas that we can still improve on and do we see any M&A opportunities in this space. Thank you.

Thank you for your question here, we have a.

Our present trial to.

To answer your question.

Sharp PS.

Well I can answer it.

Great.

And.

Okay.

Steve.

Okay.

Uh huh.

Got it.

Yes.

Okay.

You should be judged.

Well. Thank you I don't like to take your second question, which is about because they used to car business.

Just ask Mr. Don't have said, we believe that there are no for the used car market is very promising.

Uh huh.

Yeah the infection.

I have targets.

You can actually.

Really I'm trying to get to that independently.

<unk> jumped up.

It should go chip.

He founded yelp choose them.

Actually yes sweep feature.

I used to car business in China as a status.

Club the first accounts the rest of it is it is more or less a chaos to market in a second maintain a market.

Secondly, the market lack of enough trust and the transparency and the firstly, we lack of enough financial support.

So on chart 10 o'clock too sure sure Peter for you.

She's not I'm sure you all took a job.

You didn't need a pick up and get them started.

People see that she's got Queen cell types many of them are getting.

It's almost 100%.

So I really believe that as a business model, which is C to b and B to B.

They both have potential to be profitable however, the D to C business.

Ms Soccer and loves sometimes so it's maybe on the edge of the profitability.

With regard.

Well it means that you are going to take us.

You.

Even though she did a good job change that has occurred here.

Jackson.

Yeah.

So for other homes, we do have a few strategist.

He used to call business, especially one that light asset model, we want to speak to a life assets.

Okay.

Thanks, and nice job tongue shifts or guidance.

Uh huh.

Well I have no.

So you have to know what you can see all stop eating out of adult jigsaw thought it would be.

Pardon me club when you'd argue it goes up.

So Jim let me G suite.

She taught English.

And the secondly, we do have to be long term strategy I'll Miss the market as you know the home used to come market is developing very fast and there's a lot of changes in this market we have.

To put this thing and we have to carry on until the tipping point of car in this market.

In that time, we should be prepared in terms of we have enough capital we have enough capacity and we have good experience and good running.

Running so this way we would get with a pen.

Cause market to further grow people know to find out which I'll touch on that in fact department could even though.

Joe do you want to kidney, Ohio, Virginia in that guidance.

Jessica.

Yeah Yeah.

Every box that you said Felicia.

Ballpark, what everyone is genius Ashish.

Well, let's just use a computer age woman tissue, not cheap and I'm going to go see their parents I don't know if we don't see them.

She had to go junior who we are to a country and even should there be a button even creeping up.

I think I mean, that's what we get with TC two country coconut shrimp.

You shouldn't you shouldn't go do we should end.

G Quakes can talk particularly.

And lastly, I want to comment on T. G. P. We only have common stream with T. T. P. As you know we have a lot of resources and also we embedded Zane to NAV technology and Knowhow with TTP.

Scatter with Ping, an and we empower TTP so.

Actually and that's generally theres something historical happens, which as we achieve breakeven in mid June. So this is a very successfully experience, which we believe we can copy that to some other areas.

And I think the example in Memphis and at the investment opportunities are there.

Okay that is all failed Hudson operator, we can go ahead.

Thank you.

Eddie from Morgan Stanley Your question. Please.

Hey, guys.

Right.

Right.

Okay.

Yes, we can please go ahead.

Okay.

As you'll also studying go to Glenn he tenant Oh, what you want what you're going to have actually shop when teacher shortage could I was just soundbites attaching junk foam yeah, you could tell me at Joseph a.

Yeah, I'll, let you go trades being part.

Good thing agenda.

I'm changing car loans on Bonefish, you sat back.

Yeah, I'll go to a show by show.

It's a good trade chicken Chicago, two machine should all of it.

Got you good car.

So I think John a question about your bill kind of just short changed at all.

But you could trace it up on the two.

To go cut out Michelle Qi, Glenn anytime phone one thing she shops with Eagle with your car Thiago when she joined the Shaw.

We don't want it you should treat your bulk courtyard biological basically passing that type of thing.

If you take a true new phone cause you to go there I didn't see you tomorrow.

It'll be pizza.

I wish I wish I, just saw one but no awkward book, where you Jonathan.

Shouldn't that doing for that cause us.

To get back I see you get somebody out, but you've got you've got drunk.

Well the only thing you know what.

If I heard you say about I have two questions first is about the competition. So the first level of the question yet.

That Oh can you comment on the competitive landscape within the auto vertical.

You know between us versus the other you know the vertical players in the first half of this year.

Second level I'll, just caution you that to can you comment or give us some color about.

Oh, the dynamic between the auto vertical versus other new channels are in terms of are they up getting budget for this the OEM that dealers.

The second question yourself about the attacks so as we.

Noted that some of the platform the Internet platform company they are not.

Get approved in terms of the lower tax rate to 10% all of the key software.

The company tax rate.

Just wonder if we have any this kind of you know the the problem that's well yeah. Thank you.

Oh, what I had to go quiet.

So quite a change with our client base.

So to get easier Shanghai isn't there you go.

Thank you Wendy.

Derek I wouldn't you know so it's ago when they shouldn't that he's here.

Thank you Paul Johnson, just a minute or so.

So do you go and you know what you don't wait out there.

Excellent.

The only thing a washout halfway body shops.

Okay.

Hum.

Or change out even with Europe, claiming to their children.

So it doesn't cause another huh.

Those are your kids Linda so there's not.

I'm enjoying this is Jonathan so why even go higher.

Joe Kinsey Batesville doesn't toolshed.

Okay.

Yeah, Chris.

Hum engender doesn't go child quite so good.

<unk>.

Yeah. So those are the kinds of things.

Agenda.

It doesn't show up.

Its little creation somewhat.

As soon as I shouldn't that don't want me is that changing.

<unk> Joshi issue I'm not.

Sure.

Thompson you go on the shelf.

So Josh I'll need users to easily.

He said she is so so you can't won't be appealing to.

So it's a watch out for the evening.

Oh thank.

Thank you very much I would like to take your first question, which is about the competition.

As you know for any industry.

Has competition, we won't come all competitive because we believe competition when the boost to the whole industry to further develop and then this would it be a good opportunity for us.

We learn from each other and if we actually booked the collaboration and the competition. We believe that we want to push forward, our technical know house and we can build a more a higher level.

Well this whole market.

No.

In Europe, you know don't want us.

Let's touch on go.

Okay, John that the MAU.

This is Jonathan young woman.

The only other touches on cheese it made a hire some guess as opposed to like a theater.

So no. This is a powerful about how your idea in Europe.

And again when they have visits from CDR suddenly you get your thoughts there and I just wonder woman.

He made it.

Sure.

Well, he's jamba stood up on the sort of tolerable.

For the.

Troy answer their children.

The auto what genre walnuts as possible. So it was a warm enough who knows what tools you have got two at your disposal.

Took them solve ITG number targeted compound.

Well go ahead Jonathan.

If I wasn't clear meal, Shanghai media doesn't shuja little Orangey number.

Number one I know you don't bundle.

Shanghai.

Yes.

So Archie the revolver I mean part of our suggests some ideas to what number of genius.

Hum.

And in D wave.

Okay.

Well as you know I have just a issue that my report we tested our constant accuracy in content enrichment.

Telling our progress and we are pleased to see our traffic continues to lead the.

Total media vertical surpassing the total traffic volume off the second and third the players while maintaining the rapid year over year growth. So in this way I'll watch T. A new members also reached a historical high and which is $44.1 million. So in this.

Way, we actually achieved great success in getting a lot of traffic and well definitely in a leading position.

The mortgage on Jonathan.

Yeah.

Number two waves.

The genes in the little higher because women shooters genre as well so it's also going to shortly.

One of the warmest gullible, Changsha, Zhengzhou, Shanghai Center, Chimbonda, Oh My God.

Jimmy is a good phone buginese, you, Jim but shouldn't that Asia.

I'm Gonna Yanzhou to Australia.

So which is the auto order a woman so yes.

Jeff.

Usually it doesn't wouldn't be that faucet tungsten <unk>.

So Dr. Jim runs admit Europe.

Sure John Chad quarters, all your quantity of Shanghai.

Some guidance Jim <unk>.

Switching gears.

Well there is a trend.

One courtyard shopping center the young children.

You decide to go with Us Mazo Ashish good.

Maybe this is often the case.

First of all on the teacher, so two of our Shanghai Beijing Shanghai yesterday.

As you know will miss out that doesn't have a far greater chief Osama when was that of a social fabric jive either.

Now talking about the regulation.

One of them is a listed company and then we are fully compliant with the regulation and the laws and policies.

As you know for the first half off of Yeah, we do see the regulation and compliance gets tightened.

All of that into the top data security as well as the personnel.

Privacy protection, we have never received any notice or any warning from the regulators in China, which means we are fully compatible with the laws and regulation in terms of data protection security protection and privacy protection.

We not only being fully combined with the laws and regulation. We also take one step ahead, which is the regulation plus one which means we are even in a tighter position in terms of the fully combined with the laws and regulation.

Hum.

Well I think I can't remember sitting here legal when she.

One would argue we're not gonna come because they can get and I didn't hear that you've essentially go shortly but don't kill me, but I'm cool fashion jealous, you've taken which enjoyed it although it didn't he is just what's the driller Pacifico high So places like Colorado to download channeling, the coupon or sense of what you want it for them in Europe.

The reality is the whole whole till I got my thoughts here now that you have what Tricia one pool of people that don't keep a goldfish older people you'll be doing so should they go both in the lowest component of what the other official you'll say about.

Now I want to add.

So your second question about the tax policies.

You know the regulation has been tightened.

For the key software corporation to receive the favorable tax policies actually for all of whom we have fully compatible with the loss of them regulation and we are illegible for applying for such favorable tax policies.

We will continuously.

Trying to keep a close eye on this policy and with the understanding of the policy and therefore right I know we want to continue to apply for the taxes are favorable tax policies.

Okay.

Operator, we can go ahead.

Thank you because you have to buy them from Citigroup.

Lee.

Your question please.

Yeah.

Yeah.

Yeah.

Yeah.

Sure.

Hi, Brian. Please go ahead.

Yeah.

Hum.

Hi.

Hi management.

Uh huh.

And then can get warmer.

Okay.

Yeah, Hey, you.

She said plenty of times. They will go Okay. Just call me so what's it all Patricia you got one car diesel when she said great milligram language Vishal Shah.

No.

Good morning, principal kind of shoveling and their trust.

For Oh, what's it.

Alright.

For a woman to show from a swimming pool.

Oh principal car.

Hey, Joe.

Hum.

Sure.

Oh.

Yeah.

Okay.

I'm trying to I'm sure.

Yeah.

So the language.

Not real Opco, you'll have them with me.

I'm sorry.

Austin.

Oh.

Oh in Europe, either from China.

Could you tell me.

Okay.

How are you sure.

Uh huh.

Yeah.

Germany or car T K.

Not really because you know which is.

I'm sure that's really good.

You really shouldn't have an IPO.

Thank you Scott.

That's a good job.

We're trying to do what you've drawn down the queue.

Gotcha shouldn't here Dr truth, when do quite good on that one.

Could you tell us.

Sure.

T J that much even though she got to talk to about two five to two times Sunshine.

And that's just the Macau.

How long are you starting to see that we are which I'm sure you're fitting to Shanghai.

There are gonna shoot getting to Utah.

The company in Europe.

No I've got their opinion that took up guidance Shanghai.

Got it got it thank.

He told me they'd be redeemed.

My name is Jonathan my job instead of actually that sounds that 70 of our country.

Philadelphia shrunk from the yard.

No. Thank you for the question and to stop the Automakers' budget well ahead of timing, we believe that in Q screen the shortage of the supply.

Why all checks do affected the capacity of the automakers.

And also you know in fact stayed the same.

And in Q4, we believe this dislocation that would it be more eased.

However for the next to hop off the year, we can see the automakers advertising.

So not only do we see sales volume and also goes with yeah.

I guess so.

If this was one of them is underpinned and.

And then the profit target at the underpinned friendship. We believe they are advertising budget would be under double pressure.

That's great.

Even though you're not supposed to Manhattan junior one meal can be because you're doing.

Junior they'll do it either Zhejiang and I took the job site.

Sure.

So that one Josh.

Joshua Ghansham Panjabi, knowhow should be able to garner G. Nana.

That's true.

One second here.

Yeah, My friendship operator, Julian I don't think it's it's all under a lot of them to do it.

Now the second question is that about the dealers numbers actually we have some statistics till the end of June.

Hmm.

We call them, the auto dealers, which is simple radio and the Internet actually Oh I'm all in.

And that's what actually last year. This number was 23008 hundred.

And that'll be lost him. This get this end of June the number.

25600, so slightly up.

During the pivotal you treat yourself pick up so I think the tier I talked on the guidance well then she she box should drive your car.

So I simply don't know.

And I think a Facebook Joshua.

Jean Jacques I'm Joshua.

Is that true.

My last comment on this question, yes, the coverage rate of penetration rate or coverage rates for a home for the auto dealers wasn't very good so in this way, especially the paying members.

Members, we have a flat paying members for the dealers as over last year.

Thank you for your question.

We can go ahead.

Thank you.

Because he has to do from DB.

Question. Please.

Okay.

And just felt like healing.

But when he wouldnt teach out.

All of them come back to you guys I was hoping you I'm definitely curious, though and sat down with.

So when you come out and their teams in place all 19 said highs in D. C that that woke up. So you can see we help them decide to go whole CDR.

Totally get that.

Oh gosh.

Uh huh.

Hum.

Based on questions like that.

Oh gosh I.

Hey, guys.

Oh, your meals and machine.

Great. Thank you.

So I would translate myself so the French question.

Do you see like that our sales and marketing spend in second quarter. It declined quite a bit so while our competitors still acquire users agree aggressively so wanted to ask like what is salary user growth strategy in the future.

My second question is regarding they'd have part of that so.

We.

We see our data a car that is still growing robustly and what is the outlook for second half.

And what is the new product in the pipeline.

Okay. Thank you for your question are we have a vice president Joe You'll I'm sure Patrick.

Our president.

I mean shall we answer a question we stop it.

She says she didn't know then chi children, even the novel and she can nowhere else in D C.

And even less for sure. The chart will tell you on the 20 <unk>.

I'll, let you talk to the children.

Oh for virtual told me that you know what really short time there.

Kaufman.

I mean it.

Yeah.

They are the ones you know sure sure women the truly turnkey that's how about neighborhood for me Archie.

No no.

No no what tell me that.

Yeah.

Uh Huh Diego Vinci to ensure women tissue.

I don't know if that gets shot that woman that's good Oh.

So if you don't.

Cold shear zone functionally changing that she's got to innovate.

What's that.

Okay.

I think given what she said the only ones that thoughtful woman that are quite small balance sheet that you don't run the a P. P that you don't run that showed your chip you can cover with you I mean, how do you send me Archie I'm not sure what tissue.

So I don't have a lot more help with the type of vocal them in trend home they'll keep it on that route.

So you don't have a teaching moment that you want to kind of do it out in the ocean.

I can tell you we women so bad that you can do something like this.

You got me.

Thank you Amy.

These components to your question. The first one is about the cells.

A woman expenditure and declining in Q2, that's all I'm Patagonia.

Spending more in acquiring new customers. So actually you can look at a lot.

And the traffic strategy on that to see them to be side. We are number one in terms of market share.

And also the traffic so coffee club car.

Mobile MAU.

On the mobile side I'll, let traffic is more than the total sama from number 10 and number three player.

Can we add up the PC search traffic, we definitely can see even more.

Actually I'm curious about that.

Traffic advantages. So we are in a leading position in terms of the traffic and market share in that vertical and media industry.

Michelle relies upon that you show them in a way that they want.

Sometimes it's easier to other to Columbia D. If I'm in the shoe of the two car.

Now going to Europe neighborhood homes, either Kochi.

They are but tito about women, the seasonally or to a lesser.

Since he's asking each other so I'm sure that you've got PV shabak injured tissue.

I can assure you that opinion sponsorship revenue.

In the future how can we.

Our user base, we do have a strategist firstly, it's got more granular level, we'd costing town into lower tier cities.

If you look at the incremental new members actually we used to have 50% from the tier three cities.

No that number has gone up to 70%.

Lastly, ching, calling your questions element there with only having done that you don't put screenshot woman third title to show the onion team continue with teachers there of course you the.

Truth, you called out the door.

Second is we are attracting.

More younger users for example, the age.

At or below 35 years old they are accounting for a higher portion of total users.

Hum.

Sure women the choppy on tissue.

I don't have the boardroom homeaway couldn't you sure.

On the same question in order so that you can call for a couple of Europe.

If you thought fit on sheet on the COVID-19, and tell me that well make sure you can probably with a sheet in English if you keep on but tortured unclear in Tampa go shifting in what I can tell you other industry and the fact.

Some of that she bought it change with it and they don't forget.

You can do to verify who come to a challenging two horses.

And then third we actually wanted to say Alistair expenditure I'll always dynamically changing we wouldn't be we are adjusting dynamically based on the status quo, but customers competitors and in the market we.

Is that 11 point, they're up new fashion, which would it be more video based more younger generation targeted and a more diversified we want to try a lot of new assets example, live streaming videos as well as a lot of unused scenarios.

Dishes.

Launch Green, new deal and see that where the government teaching trouble on that right now.

Our soldiers, who determine but I forgot them you know what do you got to go.

Gotcha.

Well.

I think gulfport downside.

She and the gearbox.

But you are not having to go do something.

Sure.

Those who are solid.

Now Mr. Shao, he's going to address your second question, which is about the data product. We have there is a lag that you have noticed is that we do achieve good growth on our new data product business income.

Q2, the gross is about 47%.

I suppose you're talking about what we're trying to do something.

Oh, well the job, which I have to go in the country. They won't be honest I'm not sure. If you are welcome.

Toy box with you haven't even if that wasn't the drink in the car.

I'll, let you want them to go Oh gosh.

Gotcha.

And what type of wisdom here.

Sure.

Our long term strategy for the data product.

We want to further enhance the total weight of the data product in our total revenue and leveraging on our high growth of the data product well.

I'm going to achieve a higher growth on our revenue.

I won't be able to without food, Oh, I'm talking about right now and that's what all these are not just true.

The.

The reality of Iraq had Galloway Julia Xu Mohave. She can give you the topic, what I was trying to make a public workshop that showed your time here.

Well I have a theory.

Well what happens when we go pitch out in the Hopper.

So to better understand our scenario, we would've wanted to invite you to attend our September 15th News' strategy Conference on this new strategy of releasing conference when I got into your library.

Based on the data product strategy and Italian they are of interest.

Lincolniana coupons, you talk to that a major part.

Part of that tied to a one <unk> times in the past so youll pop beautiful if things were to go well then.

Well no.

Jean Jacques how much would be for you when we get back out and not a huge needle mover now.

Matter of fact, there as well.

Good job.

You have to do with them well then shouldn't.

Shouldn't that are driving that.

Good afternoon, harsha or material, but can you tell us.

Okay.

Actually we also had a lot of our new moves.

For example from the beginning of the Yadkin today, we only talking upgraded holiday to product and optimized our data products.

For example, this year for the dealers data product, we launched 11 modules and in June.

In September we are going to release.

The new version, which is the 2.0 vision of the intelligent new car launch a module.

Yeah.

That is all the answers operator, let's move on to the next question.

They would not be thank you one last question from Ash. Please go put D C.

Your question please.

Uh huh.

Oh geez.

Yeah.

Susan.

How do you see.

Uh huh.

Hum.

Maybe in the sauna quit.

Oh, you mean car you don't do here.

Clinton Bush out doing neither understands what language machine shops, where you shanghai's agile here.

Dollar MEO woman towards England's Gaoxiong Tahoe, you, that's your whole sugar with Oh.

I'm, sorry, 20 shabby.

Sure.

Thanks, Yeah, I, just want to check about our initiative starting base.

Do you have that we require users to very fine to message with them when they leave them. Their contacts so just want to check the background and impact from this initiative are and if we look forward how would this impact the pricing them in our next negotiation.

Probably around that would be less thank you.

Thank you Ashley I'll present itself, we will answer your questions.

Oh good question, though.

Yes.

And I guess you want it.

Uh huh.

Yeah.

Well man woman.

Good evening.

Even though well at least you can wake up.

Hum.

Well, it's true in golf strikes him that sushi Lucky I could get you out.

Do you hear from him in because your body cleanup.

Okay.

Thank you very much for your question actually I mentioned this April we launched at the Blue Sky plan, which we want to be a role model in the industry to implementing the plan.

Section law and the data protection law of China.

Well, unless you're shutting that nimble young she's got it yes.

And then with G. She bounces back how are you.

Yeah, well I, Michigan trials, we'll miss your chicken so daunting.

And then secondly in terms of the quality of the leads we generated we claim to be that.

They are in the industry and we are proud to say we are the best G. G. G. Usually I mean, I'm just trying to get a tweet tweet I'm not getting too long.

No Dan do you want me to guess what makes you think or excuse me a whole nice nice job.

Let's see.

Yeah.

One of them is shameful.

First chip Pompeia sharp Europe.

Understood.

Actually I think we maintain this ain't because blue Sky plan. If you look at the number of the leads and jumped by 10%.

Especially on what Michelle said Richard Yeah.

We got tissue.

From here you are going to go through a thought like are.

You guys should be able to give them that really isn't it.

A woman that you'll lay out the old way.

Well I'm gonna, you'll need that yeah, sorry.

Joe do you want to shop.

And she loves picked up because you haven't quite brutal meet until the coupons.

And actually if you look at the lead quality the lead quality has improved and followed by our initiative in June and some.

Oh appear they have can they have a gradually introduced a similar plans counting different names.

Well it means that she can look at that you're probably going to hold them until you don't want to give out in Virginia dry jokes I'm going to try and tell them no job country, you'll watch us.

Try and tunnel.

Yeah.

How come with him that he's exercise on that one.

Let me start by open that chances are you well I mean, there's going to be careful about.

Without that and you can see a pace.

And then we shifted our focus into optimizing the product and they try to enhance the user experience and until.

Till August we do see that our lead generation numbers have already recovered to the period of time before he came out of the Blue Sky plan. So without I know you are raising guidance.

Okay, Felicia women take the doctors and I wish you good good.

What time that Hopper car Hopkins, you don't care about.

But John Kita.

Totally a hobby not a top down and that's all we've not publicly comment on you got a chance with the Trulia a chance to.

Yeah Pardon me you know what else to do with Mike didn't do as good housekeeping.

So what I want to say is the business that plant was never be.

A barrier for our dealers and automakers to getting them to renew that contract for weight up on culturally it was to lay a solid foundation for them to recognize we are the market leaders.

Got it and the quality of our leads have been greatly improved so in this way this slope is quite a positive.

That's all for the concept operator time is runs out so like more onto the last part. Thank you.

Due to time constraint. This will be the last question with you on this call I will now turn the conference back to diminishment for closing comments.

[noise] going here and you can kind of wait she does shop for Ya Li.

But I'll tell you what when you sort of changed your father.

You won't hear another junior player phasing you'll nation Ciszek. Thank you. Thank you everyone for joining us today, we appreciate your support.

Look forward to updating you next quarter.

Conference call you know a few months time in the meantime, please feel free.

Great to get them attached with us if you have any further questions. Thank you everyone Bye bye.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

Okay.

Yeah.

[music].

Ladies and gentlemen, thank you for standing by for auto homes second quarter and it didn't eat any first earnings conference call. At this time all participants are in a listen only mode. A question answer session will follow the formal presentation and that'd be mined at the conference call is being recorded.

Any objections.

You may disconnect at this time it is now my pleasure to introduce your host their installed so homes I direct the Mr. Song you may begin.

Thank you. Thank you operator.

Hello, everyone and welcome to older homes second quarter, and an interim 2021 earnings conference call.

It's a day auto home distributed its earnings press release, and you may find a hockey on the company's website at Www Dot photo com dotcom top tier.

On today's call, we have chairman and Chief Executive Officer, Randall Co President Mr. Haiphong.

On shop, Chief Technology Officer.

Dr. Wang Vice President.

Youll adult and the finance director.

Yeah.

The prepared remarks, Mr. Luo.

Shop Wow.

Joe Yeah, we'll be available to answer your question.

Before we begin please note that the discussion today will contain forward looking statements made under the safe Harbor provision of the U S. Private Securities Reform Act up 1995, well.

Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially.

Really from our current expectations.

Potential risks and uncertainties include but are not limited to those outlined in our public filings with the degree and Exchange Commission.

Although home doesn't undertake any obligation to update any forward looking statements, except as required under applicable.

It becomes law.

The earnings press release and this call also include discussions of the audited.

All of these non-GAAP financial matter. Our press release contains a reconciliation of the non-GAAP measure to the most directly comparable GAAP measure and is available at home Arab car either reminder.

This conference is being recorded in addition, a live and archived webcast updates earnings conference call will also be available also on our website.

Now I will turn the call over to auto home, Chairman and CEO, Mr. <unk> Ms lumpy deals.

Sure.

So that's one.

Guy here by the judge in the Delaware.

Thank you everyone and thank you for joining us today.

Yeah.

I'm, the CEO and <unk> chief of the Johnson <unk> father, EMEA SA in surgery season.

Oh, it's old news old Sergio.

So U S D.

The soldiers vision of avenues.

So tobey its own treatment onto the final jobs since IPO Ts in 2500 tonnes of itchy.

Chisel, so we all saw challenges.

Soldiers Hanmi in Salvador tissue volatile challenge.

And dark subtle.

Toby agenda, but this was achieved AE.

Ken impact ongoing me Charlotte Houston try new events, so <unk> Jeong.

Income base.

While media without paradigm, you shouldn't again surgeon a hurdle Dr. Gino Nigel shifting.

<unk> is in the Java Thanks, Bob.

So up <unk> intelligent Geneva, you talk certainly about Palm beach in the RV shipment data.

We are pleased with the improving metrics across our new initiative in the second quarter, along with margin expansion total revenues.

For the second quarter were $1.94 billion RMB revenue out of our online marketplace and others business increased 10% year over year and accountability is 37% to total revenue compared with 23, 4% in the same period last year beta product maintained its strong growth.

Momentum generating a revenue increase of 47, 1% year over year, thanks to the higher contribution from OEM data product with.

We are excited to report that with that the operating efficiency improvement TTP broke even at the operating level for the first time in June.

And a significant milestone car.

We also made further progress in our cooperation with new energy vehicle automaker.

During the second quarter revenue was from an EV brand jumped 200, and a 38% year over year.

Adjusted net margin in the second quarter continued to expand rising.

Driving two seven percentage points year over year to 41, 8%.

Yes, judo Chenzhou shipyard bacteriophage Shinzo team so as to how the E. R T J Jonathan.

We are seeing in terms of high charge won't be in front of me a shout out to Europe after the EG.

Neil we attained a touch under our team near Ho Chi issues in Germany.

<unk> face Tony from being shot Yap beverages and Sundaes.

I will just read AE.

So while non China, China was down.

Our new team with journey to achieve sustained Tommy.

<unk> homebuilding in unison with Zhejiang she is.

Each year <unk> chooses the judge handled year Midland geology.

Neil.

So the challenge you have with Schindler Schoenhof's Weird Council to top she has a higher from what Jonathan.

As the impact of global chip shortage on the new passenger vehicle sales market.

Market gradually deepened in the second quarter, the production and sales of new PV in May decrease by two 7% and a one 7% year over year, respectively. This trend continued in June with production net sales declining by 13, 7% and 11, 1% year over year, respectively.

In addition, automakers were further impacted by the sharp rising cost of raw materials at automakers contend with multiple unfavorable conditions, they're adopting an even more cautious approach to plan must win battle and our traditional business is facing great challenges on.

On the other hand China's.

Market had continued evolving with mixed performance across different segments.

Market has witnessed expanding trading volume for used car and the new energy vehicles are moving into the fast lane highlighted by a secular growth trend in monthly sales as a result, the automobile.

Industry spreads widened.

How do you feel about it.

<unk> chip cards.

<unk>.

Encore softens in gene She's our car chartered fleet, but also within the channel give cheaper.

Project anyway.

The Permian.

<unk> father, our soldiers have been shifting Napa auto suicide and shield box all paid on <unk> LNG partners Dr. J.

In the wake of challenges and opportunities stemming from this in this changes we continue to improve our CN the user experience, while implementing hierarchical management.

For B and customers to provide high value services.

The smooth underpins our efforts to maintain a solid fundamental across traditional business with industry leading position.

Meanwhile, by vigorously developing new initiatives across data for that new energy in the used car business we.

Operating our second curve of growth to promote the long term sustainable development of our company.

<unk> <unk> solution as charge offs and changes a little.

Well I can talk about shoes is the job of the ONEOK with Chi Chi search for EMEA housing.

Powerful <unk>.

<unk>.

<unk> also have questions on them.

<unk> total G. Neil we achieved the majority of that <unk>.

<unk> <unk> <unk> <unk> <unk>.

<unk> thought.

So what.

She is a young <unk> chief young argument works, yet shoved into what's looking while contract synergy.

If you chop off subordinated <unk> named the program to.

Specifically, our constant ever encountered in Richmond are preparing a program and we are pleased to see.

Our traffic continues to lead the auto media vertical it's a patent prototypes volume of second and third player while maintaining a rapid year over year growth. According to statistics from mobile in June the number of average <unk>.

Accessed our mobile websites primary app and.

<unk> grew to $44.1 million, representing a 16% year over year increase.

In addition, with the upgrade of our App, we further optimized user experience featuring more video.

Live streaming and interest based content offering the latest quarter is poised.

Media to attract a younger demographic.

So it's hard for me she <unk>. She serves the Embraer E Schindler soften the huge Aha TOEFL junior coal. So this is really important.

Pudong measure a search crucial to <unk> your phone.

<unk> 2014.

<unk> quarter, three quarter year with startup be.

We will achieve our new <unk> <unk> Shin young horses, so us <unk> shift OEM.

Even simple.

<unk> totaled NIS key E G SEC onshore.

With regards to our traditional business, we believe movement remain as a leader in terms of market share in the auto media vertical and we continue to focus on key customers prioritizing customer.

Cool solution to meet their needs, while enhancing our service quality.

We're also proactively expanding out to.

To the non advertising business for example will help automakers with user operation offering OEM direct access to their users and aggregates their own user asset.

On my side on the leads generation front, we continued to strengthen our position by providing dealers a set of operating tools, such as live streaming and instant messaging to help improve the operation and the conversion efficiency.

I mean, they acquired from pharma in Minnesota.

Keith Johnson Europe Boniva shipment.

G G petrol Susan Chi.

Hong Kong year, where most of the top tier.

<unk> top OEM bumping into Colombia.

Nishu Tucci.

But how many achieving.

Somebody chooses a judge.

Absolutely.

Kidney rejection by pickups those old deal.

Nice machining option <unk> patterns of our size about Europe torsion major appliances.

Amit a fast developing.

EV market, we established a dedicated new energy business Department.

Shifting to our market opportunity through business model innovation, we are finding solutions to address industry pinpoints in branding distribution channel in the us operation helping automakers.

Emerging and growing opportunities.

The first half of this year, we cooperated with plenty of UV brand.

Resulting in a 200 and a 38% year over year jump in revenues from EV brand across our platform during the second quarter far exceeding the growth rates of the <unk> industry.

First ill comment on that.

EMEA so the children the Yahoo kit inside the firewall.

<unk> projects are in the Union <unk> chief of the job she did not seem to be at Juicy Changyou BMR Chisholm <unk> hired in the knee.

<unk> got a fuller ginger hardworking Chilean Basel III is a new hotel in Shanghai.

Tinder metrics.

<unk> sold two especially a salary genes of <unk> solution to judge we tend to buy <unk> shares in China, while my questions are <unk>.

This is Josh Chan on fiber either chosen that genre and the challenge.

Now turning to the used car brands.

Message leaves plenty of anyone is going to be a crucial year.

For auto home and TTP and we are committed to deepening our corporation for their success.

With the acquisition of TTP Auto home used car business has performed at <unk> end to end business covering the used car lifecycle.

From selling to purchasing a used car.

Our ability to serve users and customers.

And TTP supported by auto home has improved operation and the transaction efficiency.

June TTP broke even at the operating level for the first time a significant milestone.

But that demonstrate great synergies between <unk> and TTP.

Also looking for other opportunities that could lead to.

Because in a dipstick development and expansion of our auto ecosystem.

Soldiers Hanmi Permian Gen Z cohort huge runway.

Our shop, she associated Bob or Tony.

In short in Soho or the equivalent of a fundamental.

Dr. Sergio <unk>, our soldiers happening sooner than some of our two.

200, plus car sharper slowdown somewhat cyclical.

G box injuries Hahnium sushi.

<unk>.

Awesome <unk>, Jonathan we bought hoon Chang here with Jim.

Look our children tend to Jonathan.

Moving onto our data products.

It's an alpha and product optimization and effectiveness improvement has been gaining momentum among customer in the second quarter our.

<unk> 19, automakers utilized our data products and the total number of program for intelligent new car launch and the intelligent marketing solutions with more than 30.

As for data products with dealers, we remain focused on product upgrades and enhanced product value offering of food.

Total auction of services from user acquisition transaction to maintain them.

So she is a majority owner versus a partner.

She is a frame may hernia G also how you see.

And healthy way.

Most of that ship.

<unk> setup.

Sure.

Sure.

<unk> Chatterjee of estrogen.

One challenge in the twos.

So let me just so I'm I'm, sorry, associate one Jimmy unit Buchi.

<unk>, who bought the potent compound with a challenging finish out but that's obviously giovanni.

Spak you couldn't hold up also have G.

In conclusion, we are fully committed to maintaining our leading position in terms of traffic and amount of share in the auto media vertical while exploring Ras pathway in new business area.

We have achieved meaningful progress in data.

Used car and <unk> businesses, and our strong balance sheet and profitability allow us to make investments in these key areas. We plan to announce our strategic upgrade plan in detail at upcoming Investor Day on September 15 to see more market share.

Utilities and ensure our long term growth.

Tom was a change of key adoptions from shelters results, Yeah, So safe Harbor Shin young children short versus long.

Tom what are the sources of ESO Chenzhou Shouldnt say quite often we also substituted.

Jim Bob Mitchell Chunky firepower.

So she is a churn them now to safety.

<unk> two <unk>, mainly on two of our achievement chimney, forming challenging chief hung and we will continue to put in that chart.

Lisa.

She has hung in our songs Houston's unreasonable.

So I am all the way to paraphrase the target of <unk>.

Shea, who chooses a job you cannot absolutely Ed when.

When you achieve that target achievable.

For me I'll cheat sheets of the Dow Jones with our vaccine dose of the <unk> solution towards Halloween, where Europe or <unk>.

Sorry about those charts.

China is the worlds largest new car market.

Martin <unk>.

<unk> market kind of used car market is also one of the fastest growing major market in the world. However, in contrast to developed countries kind of car ownership per thousand people and the used to new car sales ratio still have huge growth potential going.

And the board, we believe the auto industry will gradually recover from the temporary difficulties we are facing at the moment and our long term growth trend remains unchanged looking ahead with our strategy upgrades and our cooperation with peanuts in terms of internal resources traffic on the technology.

We are in this room for further growth go beyond ourselves and bring more value to users and customers.

Sean mentioned, China Jin Chang our.

Cheers.

With that I will now turn the call over to.

Going through our finance director Ms. Cynthia for a closer look at our second quarter financial results.

Okay.

Now when you look at the key financials for the second quarter seasonal that ethylene pipeline I will reference RMB only in my discussion.

Thanks, David.

Net revenue for the second quarter was <unk> 94 village for a detailed breakdown. Neither assembly revenue came in at 600 million lead generation services revenue was $724 million and online marketplace and honest revenue increased by 10% year over year with 519.

Two hour, primarily driven by the consolidation.

And the increased contribution from beta product.

Onto costs cost of revenue.

$162 million compared to $255 million in the second quarter of 2020 gross margin was $86 five.

5% in the second quarter compared to 88.

5% in the same period last year, turning to operating expenses.

Sales and marketing expenses in the second quarter were 552 million compared to $872 million a year ago. The decrease was primarily due to a degree.

And promotional spending product and development expenses were $335 million compared to 326 million when the SEC.

Second quarter of 2020.

Finally G&A expenses.

$177 million compared to 82 million Q2 2020.

Wafer with a primarily.

<unk> attributable to the consolidation of <unk> and.

Bad debt provision related to a certain advertising customers.

Overall, we delivered operating profit of $673 million for the second quarter compared with 800.

I haven't seen one minute in the corresponding period of time.

Got it.

Net income attributable to ATA, Inc.

519 meeting for the second quarter compared to $881 million of course, who can write off 2019 for basic and diluted earnings per share for the second quarter was 157, and a 156 RMB.

To me compared to 185, and a 1.8 full RMB in the corresponding period of 'twenty 'twenty.

Non-GAAP basic and diluted earnings or EPS for the second quarter was $6 to seven and a 626 RMB, respectively compared to 7.3 nights and a 7.3.

Three six RMB in the corresponding period of 2020.

I felt with twins started 2021, our balance sheet remains very strong with cash cash equivalents and short term investments for 18.43 billion, we generated operating cash flow of 581 minutes in the second quarter.

Plenty plenty left with that we are ready to take our questions. Operator, Please open the lines for Q&A.

We will now begin the question and answer session participants, whose question I suppose right.

That if we can keep it and you'll be placed in the queue.

Ken Soda queue. Please press star two.

He likes your chances of cash you're willing to share.

He was he said don't want to Shao Lee E. Oh, Madhu 20 doesn't mean to whole car types you found with Google.

Google and usually don't you sell T O.

Don.

Plus we have Thomas Chong from Jefferies. Your question. Please.

Yeah.

Yeah.

Okay.

Thomas Please go ahead.

Yeah.

Okay.

Hello.

Yeah.

Operator, there's no.

No one to us.

Alright. Thanks.

Next we have rich.

Hi, Thomas.

Oh, I'm, sorry about that there's good connection with had some problems.

The question is about the auto industry.

And that gets me to about.

I think going forward. Thank you.

It's usually a month ago and Nissan team doing that easily we lag cushioning.

She has a tax shield.

[laughter] women's here in London like without it.

We will Oh chairman.

Loan to answer a question.

Thank you you too.

I wouldn't have thought they win I discussed.

You know that was one of those some days ago Junior sunburn units and he doesn't.

Doesn't want to citizens.

It won't change.

Judging by Diana <unk>, you'll need to achievement that you go to the guidance each of those will phase out no matter, what you do kind of a G. Treaters in the shop some of them, which end up on a tier one carrier that is on Jone organized tour.

She cannot.

<unk> E G.

<unk> got in China, It doesn't sound zone C Yardley, Nevada have mailed to adopt the.

System to treat someone new windows.

So now I'm quite I wouldn't you know you've got some without changing the switchable quiet without you did the the one LNG.

To which imaging revenue.

Well known.

Some good trend in number of Heidrick way.

She served as an on shelf so the hydropower Yogi teamed up and down.

Hesitant on citizens on the digital so Don told me it isn't a huge Johan <unk>.

We take all with total.

Well. Thank you for the question actually if you look at the first half of the year and then we make some judgment over the future outlook. So so first of all Q1, the data looks really good in the auto market Q2, we do see the data dropped sharply and how can we communicate.

And we the industry.

We found out that cannot come.

Enough supply of chips.

I have some raw material increasing of the car that impact the auto market.

And can this be transition will be.

<unk>.

Sure.

Maybe in Q4, the condition maybe more E.

So we believe that for the whole year in total we would experience hunton well high level constant growth would it be quite.

Not so robust even maybe single digit growth.

Well.

So definitely there will be less than 10%.

Okay. Thank you.

Long answer hopefully that we can go ahead.

Thanks, you have received from HSBC.

Question. Please.

Oh excuse me.

Yes.

We don't know.

Vehicles that one sorry, it's inside that CN, Guangdong thesis out what's not one took us to place a woman seeing some good shoes are quite high on what Michael said.

Yeah, Tony for you or some other form.

Four months into account values.

Why is it so you said it seemed that team.

So I don't think I've seen that CN quad is helping and I sure Hope you have a one stop shop I need as hungry man Oh sure sure Yeah. It took a CN.

So you can't fault a couple of months since Atlas.

It took a hockey team Tim go to the home.

But how do.

See you soon.

You guys had.

Uh huh.

Yeah.

And like I said, Oh, let me translate myself. So I have two questions. So first one is can management comment how this regulator environment affect the competitive landscape going forward and what other cost and opportunities.

We foresee from this new front month and second question is what is the outlook for used car industry and how is the competitive landscape and what are the areas that we can still improve on and do we see any M&A opportunities in this space. Thank you.

Thank you for your question, Yes, we have.

Our present trial to.

To answer your question.

With the sharp PS.

Well, that's a good answer.

Great.

Yeah.

Okay.

What are you guys.

Okay.

No.

It does.

Right.

How do you define your talks with your dual arm. So that I took the Sydney teens, yet should be talking to you now.

Well. Thank you I would like to take your second question, which is about because they used to call business.

Just have missed and don't have said, we believe that there are no.

For the used car market is very promising.

Our critical from a private investor.

Sure.

I can't do anything with it.

These are jobs that loss.

Our hours without chip excuse me.

Sounds like LTV June.

Please yes sweep feature.

Used car business in China as a status quo.

That's the characteristic.

It is more or less a chaos to market and maintain our market.

Secondly, the market lockup enough trust and transparency and thirdly.

We lack of enough financial support.

Is that kind of a hard tissue for sito.

She's got a true Europe took a job.

Indeed.

I'm getting tightened up people seen the young fleet subtypes of any of the game.

[noise].

So I believe that is a business model, which is C to b and b to b. They both have.

Potential to be profitable for the D to C business.

Amazed soccer and loves sometimes so it's maybe on the edge of the profitability.

Nothing.

Okay.

No.

Well it looks like you are going to take.

Oh My God.

Job change.

B J.

So far we didn't have a huge advantages.

He used to car business, especially.

The woman light asset model, we wouldn't speak to life assets.

Jackson, Thank you all.

Sure.

Absolutely.

Sure.

Uh huh.

We are not yet.

No, but you can see all stop eating out of an adult.

Jigsaw cognizant.

Pardon Me club when you'd argue goes up job. So the gene let me see here.

She taught English.

And secondly, we do have the long term strategy I'll Miss the market I've seen no the home used to come up.

China is developing very fast and there's a lot of changes in that market, we have to be persistent and we have to carry on until the tipping point of car in this market and in that time, we should be prepared in terms of we have enough capital we have enough capacity and.

And we have good experience and good.

Randy So in this way we would get prepared for this market to further grow civil no certainly no we'd have to tell them that in fact, the government could even though.

Joe Kinder pipe junior in that guidance Jessica.

Yeah Yeah.

I forgot that you'll be boxes.

Ballpark, what everyone is 15 years, so that's useful.

Just getting a computer age women.

Tissue that you couldn't even get into car T. There Pat.

Hey, Julien.

Jimmy I do we do a country music since IPO briefing.

No.

I think on email.

Okay.

Sure sure let me it teaches you shouldn't go unnoticed.

Shifting to Europe cheaply.

Please go towards particularly.

And lastly, I want to comment on TTP, we only just have common scheme with TTP as you know we have a lot of resource and also.

Also we embedded Zane to match technology, and Knowhow with TTP, and then together with Ping, an and we empower TTP so not.

Actually in this too theres something historical happens, which as we achieve breakeven in next June. So this is.

So that's cool experience, which we believe we can copy that to some other areas for example, new business investment opportunities are there.

Yeah.

Okay that is all failed Hudson operator, we can go ahead.

Thank you.

Eddie.

Stanley Your question please.

Hey, guys.

Great.

Okay.

Uh huh.

Yeah.

Yes, we can please go ahead.

Okay.

As you'll also studying go ahead Glen Eternal a digital world.

From oshea on for them actually shop, where the win T. Jojo do you go kind of how does this sound better shots and drove home yeah. There you go.

I mean, it's just a short go on beyond that you've got trade should a pin car.

Somebody in to good team good Chi Tsang Chi Jaeger loans Obama thing she sat back ice or somebody else. The geography will show up on your chicken fried chicken.

You won't have the two machines.

Okay. Good good.

So I think a general question about your mill kinds of audio shortchange without saying I should trade should have.

To go cut them sound chip, Glenn anytime phone one thing she shops with Eagle Ford.

Thiago when she joined the Shaw well put them on how he or she should switching but of course I'm talking about about digital.

This is the time it does take a true new phone cause you to go there I didn't see you tomorrow at the negotiated where it'll be pizza Oh, what's that.

Let me start just real quick before you go John.

I shouldn't that doesn't show that cause us to get back I see you got somebody else in that you've got you've got strong pack.

Uh huh.

Well, let's see if I can you say about I have two questions first is about the competition. So the first level of the question, yes that can you comment on the comparative landscape with in the auto vertical.

Between us versus the other you know the vertical players in the first.

Half of this year and a second level of this question is that true.

Can you comment or give us some color about how is the dynamic between the auto vertical versus other new channels.

In terms of the up getting budget for this the OEM that dealers.

The second question yourself about the attacks.

So as we.

Noted that some of the platform the Internet platform company. They are not to get approved in terms of the lower tax rate to 10% of the key software.

The company tax rate just wonder if we have any this kind.

You know the the.

The problem as well yeah. Thank you.

Sure.

Okay.

They don't see any Shanghai.

Thank you.

Yeah.

It's again.

I mentioned that in Q2.

Just a minute.

It's like if you go and you know what you don't wait.

Excellent.

It wasn't a long shot.

[laughter].

Hum.

Oh boy hinge on Eagle with you.

Yeah.

I mean, you're going to have.

Hum.

So there's a lot of women doing Jonathan so why even to get hung up.

So it doesn't.

He went to get you that data.

Kris.

Hum.

So you are shutting in the bottle increase so those are the contingent Basil Jones agenda.

G doesn't chunghwa does little creation number.

<unk> Joshi issue I'm not.

Your heart pumps that go on.

<unk> charged <unk>.

All of these users to the leisure is achieved for <unk>.

Which are some of the dv.

Well. Thank you very much I would like to take your first question, which is about competition.

You know for any industry.

Competition, we won't come our competitiveness.

Because we believe competition with the boost of the whole industry to further develop and this wouldn't be a good opportunity for us to learn from each other.

And if we actually looked at the collaboration and the competition. We believe that we will push forward our technical Knowhow.

And we can build a more a higher level.

Well this whole market.

I'm always a sort of a deal out there in the order. So there's always that treadmill Gulf of Guinea Jumbo.

The more mature of the Jamba yellow.

So it doesn't matter.

Some guests as opposed to the theater.

Powerful about how any idea in U T is something that no one else does.

It could certainly you've got you well yeah.

Wonder woman touch they made it to the tune Genesis to Samsung.

<unk> childhood, often so tolerable packages as well.

To answer that Jonathan Susan INR Ottawa Shanna.

Well most of the songs settlement. So there is a woman who knows what tools you have got to go to.

So it took them so far and ITG number target you kind of how we're kind of in general.

If I'm clear meal, Shanghai, Shenzhen Suzhou to the G.

Number one I know you don't bundle.

Shanghai.

Yes.

So it took a charge if the revolver is part of our suggests about use of what number of genius.

This is the NIM dealing.

Well as you know.

Yes.

Sure My reply.

We tested our constant accurate.

In content enrichment.

Telling our progress and we are pleased to see our traffic continues to lead the hotel media vertical surpassing the total traffic volume off the second and third players while maintaining the rapid year over year growth.

Wayne I'll watch T. A newer members also reached a historical high which is 44 point to 1 million. So in this way, we actually achieved great success in getting a lot of traffic and we are definitely in a leading position.

The mortgage on Jonathan.

This is a.

Number two waves again.

Jim just a little higher because I'm a woman she says Mcdonald's and so it's also going to so I just wonder woman. So gullible tools those are the Jin Guan Jia Sheng.

Shanghai attempted chimbonda Miranda Jimmy is there somebody in Asia, Jim buttons that Asia, so as of yet.

We ended the young show to us when he was on the.

So which is a shadow on a woman so yes.

<unk> <unk>.

Usually it doesn't wouldn't he doesn't know faucet <unk> some of our timber and submit your question John Chet Cortisol you YJ Shanghai.

June guidance, Jim Guangzhou, Guangdong provinces.

Switching gears.

<unk> is a tremble full hook, one courtyard shocking to the onshore the Virginia tied to the mazo.

<unk> a good night.

And the two of them in.

Chris Russell in the kitchen, so towards our Shanghai, Beijing, Shanghai Beijing.

As you know, we'll miss it doesn't parkway to Chip's Osama.

The social fabric Jive either valuable ultra.

Now talking about the regulation I see no let up on me as a listed company and then we absolutely combined with the regulation.

Policy.

As you know for the first half of the Yeah, we did.

Regulation and compliance gets tightened however in terms of data security as well as the personal.

Privacy protection, we have never received any notice or any warning from the regulators in China, which means we are fully come.

With the laws and regulation in terms of data protection security protection and privacy protection will not only be fully combined with the laws and regulation. We also take one step ahead, which is the regulation plus one which means we are.

Pat in the tighter position in terms of the fully combined with the loss of the regulation.

Well, that's what I kind of as I sit here and they go and see how they feel when they want without just said, we're not going to tell them, we can take them down and I didnt hear that people shouldn't you shouldn't go shortly but don't kill me, but I'm cool fashion gel surgical which intelligent.

Even CHS patchy.

Pacifico Hiseq placements in Colorado to download 10 million of coupon I think go to market for them.

Okay.

Oh, Yeah, Oh till I got lots of those guys, who don't have flex as you went through with you, but I think let's make sure that people you'll pick income.

Comfort they have with other systems.

I'll take that.

But now I want to answer your second question about the tax policies Husky.

As you know the resolution has been tightened for the key software corporation to receive the favorable tax policies.

Actually for Oh to whom we are fully compatible.

There's lots of them regulation and we are even legible.

For such a favorable tax policies.

We want to continuously keep a close eye on this policy and we understand that the policy in the pool right and we want to continue to apply for the tax favorable tax policies.

Sure.

Nicole.

Operator, we can go ahead.

Thank you next we have buy in from Citigroup.

Your question please.

Okay.

Yeah.

Yeah.

Yes.

Yeah.

Hi.

Hi, Brian. Please go ahead.

Yeah.

Hum.

Alright, probably management.

Go ahead Tom.

Yeah.

Hi, James can get warmer.

Okay. Good.

Hey, sorry, I should.

Okay.

Just coming from car me so it looks as though you sure you don't want to go do you go once you said right.

When he started his group.

Good morning principal crime Siobhan you know social program car you saw.

Yeah sure.

Oh.

What's it all about Archie do what's required for a woman to show from a 41 five extra dwarf all around full principal car.

Oh man.

And so for them to put on a T shirt.

Uh huh.

Yeah.

[noise], Okay, so what I'm, saying I'm sure.

Yeah.

So last week.

Next we'll go ahead and meet the shop.

Oscar.

Did I hear you that wouldn't you either she's shopping in a tissue media center.

On Aesop.

Hi.

Yeah, I think I'm somewhat sort of young to the shove any noticeable kind of Q2 was down there. So you don't play in tissue.

Yeah.

Sure.

Uhm.

Yeah.

That's a good job.

Hum.

I don't know.

She didn't hear too.

Good.

Could you tell us.

The Liza loosen.

No change to that.

I forgot to talk to them to folks to do concept shop in India.

And that's just the Macau.

How long you're starting to see that we all what time. She has spent a chunk of it.

You are gonna shoot getting to two Gita take the company into that.

Yep.

I've done that junior not to go up.

Yeah, that'd be really sure Jonathan.

So actually that sounds that 70 in that country.

Hustled silicon shrunk.

No. Thank you for the question in terms.

Automakers' budget well ahead of time.

We believe that into sleep this shortage.

Yeah chip scale affecting the capacity of the automakers.

And also you know in fact, they did the same.

And in Q4, we believe this dislocation.

It's tough to be more eased however for them next to top up the year, we can see the automakers advertising budget always go with itself Bali and also goes with yeah, I know profit target. So if the volume is.

Under the profit target is on the press.

With that we believe they are advertising budget would be under double pressure.

Garo and that's quite a good.

So you're gonna Union I've spoken with have kidney one meal can be doing senior they'll do it either Zhejiang and I took the job.

Sure.

Yes.

So that one Josh.

Joshua Ghansham Panjabi should be able to garner junior.

Sure.

Thank you.

Yeah, My son ship, operator, Julian and I heard it's all under a lot of share.

My second question is that about the dealers numbers actually we have some statistics till the end of June we call them, the auto dealers, which is already on the internet actually.

And that's what actually last year. This number was 20.

Now the thousand and 800.

And that only last year. This get this end of June the number is 25600, so slightly off.

That just depends on heat treat yourself to job. So I could G are turned on a gradual launch issue.

Redress Yakov I simply don't know think of Facebook GTR shop.

Thank you all for Joshua.

Junior to humanity.

And my last comment on this question, yes, the coverage rate penetration rate or how would you wait for the home.

For the auto dealers wasn't very good so in this way, especially the paying members we have a flat paying members for the dealers as over last year.

Thank you for your question.

We can go ahead.

Thank you Nick.

Because he has to do from D. P.

Jim Please.

And just sort of appealing a way.

Wouldn't be it wouldn't teach out please.

Central to that.

Hum.

Pennsylvania comes out and the teams in place all Nike say Hi, Ben.

So you can't really tell me decides to go a whole car that I don't think I don't think I'm.

Totally get that.

Hello, Thiago wasn't easy by any rethink shoot you are attempting to be.

I'm not sure how many high school based on questions like that.

All we can catch up on the annual.

Like a venture with them a ton downhole your mill somewhere.

Well come out of town.

Hum.

So I would translate myself. So the first question is we see like that.

And marketing spend.

Second quarter, it declined quite a bit so while our competitors are used.

I agree agreed so why don't I like why did his salary.

Or was there a growth strategy in the future.

My second question is regarding data part of that.

We see our data a car that is still growing robustly and what is the outlook for it.

Second half.

What is the new put that in the pipeline.

Okay.

She can go to a person we have our vice president toyoda onto a pattern for us.

Our presence.

Shall we answer a question we still see it.

So as I said in the little cheat sheet here.

And even the novel in chicken.

D and even less for sure Sean I'll tell you on the 20 <unk>.

Okay. Thank DOCSIS woken up.

Oh, so versatile.

The Kaufmann.

Cool and then Oh.

Yeah.

They are the ones you know sure sure woman the truly turnkey, that's how 'bout naoshima matching that up it's about not know what tell me that.

Sure.

Yeah.

But diego.

Oh sure sure women tissue.

Almost like your childhood woman that's good Oh.

So if you don't cold box.

Partially charging that she's got to eat of age now.

Okay.

Without the Covid, what she should all just not true well meant that a question about.

He will then turn the ATP that you don't own their switching to even cabos. There I mean, how do you send me Archie cannot touch it sure what's usually a woman that don't have a lot going on between Cheetah.

The bulk of them in front of them that cant be done that fucci, who want to have kids, who don't know about.

The woman that you won't be doing that.

Sure Oh my God.

Women's Covid as you know.

Do you want me.

You don't go out thank you.

He comes to US your question. The first one is about the cell expenditures declining in Q2.

I'll come back later.

Spending more in acquiring new customers. So actually if you look at a lot.

Did traffic strategy on that.

To see them to be side.

Number one in terms of the market share.

And also the traffic okay.

A question more about kind of on the mobile side, our traffic is more than the total sum of number two and number three players.

We added.

The PC search traffic, we definitely can see even more I couldn't actually I'm curious around.

Traffic advantages. So we are in a leading position in terms of softer traffic and market share in the vertical and media industry.

Michelle.

On the tissue women men are they also sometimes it's easier to other Permian do you come in and show them. The trigger now controls neighborhood homes either Kochi.

They are but tito about women, the seasonally or to a lesser sentence essentially each other changsha shabak injured tissue.

This would you that opinion once you strip revenue.

In the future how can we expand our user base. We do have a few strategist firstly, it's got more granular level, we costing town into lower tier cities. If you look at the incremental new members.

Actually we used to have 50% from the tier three cities now that number has gone up to 70%.

Lifting what you call your questions I want to put on you and even doing the Europe, which screenshot womens sexual to show the onion team who have to go to engineer your teachers or of course you do.

Union they dropped the issue that you called out the door.

Second is we are attracting more younger users for example, they age.

At or below 35 years old they are accounting for a higher portion of total users.

So it comes out.

She showed a woman the children, but you don't you don't have thought around the boardroom homeaway going through Chicago same question in English with it you can call a cohort as well.

So they fit on seat on the Couch, you know me and tell me that the.

Well I'm sure you can probably with a sheet in English if you keep on but Torchwood, which I'll come to you in Tampa.

Shifting walk.

Coming to your other industry.

And in fact, it's something that she bought it changed related and they all spoke that you.

You can do the verify who can go to the challenging two horses.

And the third channel, we actually wanted to say Alastair expenditure I always dynamically changing we wouldn't it be readjusting dynamic.

Based on the status quo, but customers competitors entered the market. We launched a debt 11 point there are no session, which would it be more regional based more younger generation targeted and a more diversified we want to try a lot of our new happens example, live streaming videos.

As well as a lot of unused scenarios.

Dishes, Glenn you deal with you about where the government teaching children that were that big.

Should you use to determine what I forgot it.

You got to go.

And don't get me to go.

Well man Jaya car golf.

Gotcha.

Welcome to the company.

But you are not under the gun to determine their shows what can be done soon that Thomas is cheap.

Now Mr. Shao, he's going to address your second question.

Which is up out of the data product, we I'm very glad that you have no chance.

Did that we'd do a cheap food as well.

The new data products business in Q2, the gross is about 47%.

So we just haven't seen that woman she sounds like Oh.

One of them for their young without the government comes in the movie I'm actually not sure if she wants.

I'll talk about toy box.

That woman didn't kick in when you can attack I'll, let you wanted an adult a tow boat shoe department, a cultural thing now.

And what type of income here.

Sure the cause.

Our long term strategy for the data product.

We want to further enhance the total weight of the data products.

In our total revenue and leveraging on the high growth of the data product, we're going to achieve a higher growth on our revenue.

Okay.

Well I can talk about for Europe.

These are not too sure.

Uh huh.

She doesn't have to be yardstick in Iraq have Yahoo went to reassume a.

She can come in and talk with Mike.

So I think we're probably well known.

Should your time here.

I have a theory I don't know who's got what happens with the pinch out in the Hopper.

So to better understand all what scenario, we wouldn't want to invite you to attend our September 15th.

Needless strategy conference on this new strategy of releasing conference when I'm going to elaborate on the data product strategy and Italian see argument.

Lincolniana coupons, you talked to that part of it is tied to a one day shooting to try to keep the payback. So you apart.

Usual if things were to go up.

Uh huh.

No.

Teach out how much of your revenue when we get back I'm not sure you're going to have now.

Matter of fact, he was one of my car and get good jobs do you have to do with them well and then shutting.

Shouldn't that are driving that.

That particular or material, but couldn't shouldn't change that much.

Actually we also had a lot of our new moves for example from the beginning of the year to today, we only have been upgraded our data product and optimized our data products.

For example, this year for the dealers did a product we launched 11 modules.

Thank you.

In September we are going to release, the new version, which is the 2.0 vision of the intelligent new car launch a module.

Yeah.

That is all the answers.

Let's move on to the next question.

And we would not be taking one last question from Ashley from credit Suisse. Your car.

Jim Please.

Oh excuse me if I was going to do something with a two hour gosh I don't know geez, Yeah, Dennis is going to do.

So Atlanta and see what how do you see abating.

Could you kind of a thing.

We're gonna yourself, well, if you're talking to us.

That's quite all right.

Did you have kind of a black out to them.

Oh geez.

Okay.

Before he does.

Uh huh.

That sounds good.

Oh I'm sorry.

Uh huh.

Yeah.

Uh huh.

So I just want to check about our initiative starting base a pro that.

We require users to verify through message when they leave their contacts so just want to check the background and impact from this initiative are and if we look forward how would this impact.

Oh pricing.

And our next negotiation around me that'd be less thank you.

Thank you actually a president's Chow will answer your questions.

Oh sure Jamie, but no no one gets you about <unk>.

And I guess, you wonder woman and exercise a C is it.

Hum.

Well no.

Hey, Jonathan.

Even though.

A week ago.

Yeah.

Well, let's go.

Sure Sheila.

Jean Jacques and good job.

Oh Wow.

Because your body.

Uh huh.

Gotcha.

Thank you very much for your question actually I mentioned this April we launched as a blue Sky plan, which we want to be a role model in the industry to implementing the income protection.

Tex La and the data protection law of China.

Well, unless you're shutting that and go Oh geez, how about yourself.

Uh-huh jixi boxes that car.

Yeah, well mission trials well they should.

Gotcha.

And then secondly in terms of the quality of the lease.

We generated we claim to be the best in the industry and we are proud to say we are the best Junior Junior drill N ream.

Just trying to get a pre treat a lung into box.

And I guess you might even have severe women should be car excuse me you're holding guidance.

Joe.

So let's see.

Yes.

Yeah.

One of them at CN flock Shipholding.

She does shop County law passenger ship.

Actually I think we can maintain this ain't because blue Sky plan. If you look at the number of the leads and jobs by 10%.

Especially on what Michelle said, Richard Yeah, because there are only a couple with Philadelphia.

We've got Chris or just if you could comment there are of an IPO.

Like are.

You've got to be able to give them a reliable.

A woman.

Woman that Youll know youll make.

Yeah.

Uh Huh, John Gerry one young child, SUNFISH and she's not picked up because you haven't quite brutal meet until the cheap one.

And actually if you look at least quantity the lead quality has improved and fun.

But by all our initiative in June and some of our peers. They have can they have a gradually introduced a similar plans carrying different names are what might garner some tentative, but you're probably going to hold them and closure when we give out in Virginia dry jokes I'm going to try and tell them no job Kathy you'll watch.

So in total what went to Europe.

Yeah.

So I think that's it.

That is a woman.

I'm Gonna go higher than that yes, I guess, well I mean, there's a gene chip.

Without that and you can see a pace.

And then we ship to our filters into optimizing the product.

And they try to enhance the user experience and until August we do see that our lead generation numbers have already recovered to the period of time before we carry out a deep blue Sky plan. So we're tied into our lending guidance.

Oh sure.

For a woman to the Doctor and I wish you good good.

Okay.

What kind of that's how we feel about continued Hopkins here I'm talking about Bill went to Ghana ticker Tel.

Totally get hung up down there to a waiver to publicly comment on you got a chance with the Trulia a chance what kind of other junior cheaper funding.

What happens it doesn't make them towards it akshay.

So what I want to say is the bullets that plant was never be a barrier for our dealers and automakers to getting them.

To renew their contract with us.

Sadly it would lay a solid foundation.

They show for them to recognize we are the market leaders and the quality of our leads have been great team who've. So in this way this plant is quite positive.

That's all for the concert operator time as that runs.

So let me answer the last part thank you.

Due to time constraint. This will be the last question on this call I will now turn the conference back to diminishment for closing comments.

[noise].

Got it.

Yeah, Jim the way she shops, so you're you don't wake up.

So, let's say you shouldn't bother.

You won't eat them.

Virginia, playing face legal obligation Chi. Thank you. Thank you everyone for joining us today, we appreciate your support.

Before.

They can do a nice quarter.

Conference call you know a few months' time in the meantime, please feel free to get in touch with US. If you have any further questions. Thank you everyone Bye bye.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.