Q3 2021 Autohome Inc Earnings Call
Yeah.
Ladies and gentlemen, thank you for standing by for auto homes third quarter 2021 earnings conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
As a reminder, this conference call is being recorded.
If you have any objections you may disconnect at this time.
It is now my pleasure to introduce your host starting soon.
To homes I director Mr Song. Please go ahead.
Thank you operator.
Hello, everyone and welcome to Oklahoma third quarter. Consequently, one earnings conference call.
Earlier today <unk> distributed its earnings President and you may find a cookie on the company's website at Www Dot auto home Dot Com Sofia.
On today's call, we have chairman and Chief Executive Officer.
<unk> co President <unk>, Chief Technology Officer.
Both young Vice President.
You'll go and finance director.
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After the prepared remarks, our management team will 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 US Private Securities Litigation Reform Act of 1995.
Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations.
Potential risks and uncertainties and food.
It's limited to those hotline public filings with the Securities and Exchange Commission.
Auto home doesn't undertake any obligation to update any forward looking statement, except as required under applicable law.
The earnings press release, and this call also includes discussions of certain unaudited non-GAAP financial measures.
Our press release contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measure.
Available on other homes our website.
As a reminder, this conference is being recorded.
Decent alive and archive webcast of this earnings conference call will also be available on wholesale from IR website.
I will now turn the call over to auto Holmes, Chairman and CEO.
Mr. <unk>. Please go ahead.
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Hello, everyone and thank you with Ghana, Okay.
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In the third quarter of 'twenty, one chip shortage and a rising raw material prices continue to impact the auto industry. The production cost of automatic sector increased by more than 10% year over year on the market related bucket were significantly reduced.
Everyone's a power rationing across multiple regions in China, both those back with manufacturing, including auto manufacturer.
That's on the sale of new PV, each fell 12% year over year in the third quarter as a result auto home and spacing great tenant base is.
Despite these headwinds we delivered total revenues of $1 76 billion on beat for the quarter and the revenues from our online marketplace and other business increased by two 5% year over year accounting for 32% of total revenue.
In addition, our adjusted net income attributable to auto home, Inc. In the third quarter was 583 million RMB.
Adjusted net margin of 73, 1%.
On November 18th plenty funds, one wholesale from quarter of directors authorized a share repurchase program and there will be to the company may repurchase up to $200 million.
American Depositary shares over the next 12 months.
We plan to fund reported from its existing cash balance.
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How are you using.
Let me summarize the main progress we have achieved in this quarter in terms of <unk> and <unk>. According to statistics from <unk> the number of average.
Accessed our mobile websites primary app on the mini App Bluetooth.
$43 7 million in September representing a 12, 3% increase year over year I'm talking the automotive media political.
Looking at our user composition the proposal active users using mobile phones priced above 5000, RMB, 137% much higher than the competing platform or industry average.
Strong purchasing power of auto home user.
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During the quarter.
Effective but decline in the auto market our revenue from traditional business experienced a constraint in the third quarter, while auto home maintained its leading position in the automotive media vertical.
The first twice destination for users to view by and used cars.
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During the quarter, we accelerated impact patient orthopedic upgrade and achieved significant progress in new businesses, but beta products.
Weighted our intelligent new car launch three zero technology on condensate theme.
Pulling the product penetration rate to 36% for the first nine months of 2021 on that.
Dealer side, we're offering til products across three major module to provide dealers with our food the types of solutions, notably the average number of beta products purchased by a single dealer door has increased from 3.0 to one to $3 55.
Back to our <unk> business revenues from EV brand more than doubled year over year in the third quarter as we increase.
To engage with you we automate that.
Specifically.
The new plan.
Automakers auto home type achieved over 50% market share right.
But used car business TTP.
Five its position as the largest online used car auction platform in China and enhanced efficiency.
<unk> operation.
For the first nine months the cumulative number of used car dealers reserved has increased by 77% year over year, thanks to our food.
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With that overview I'd like to share more detail on the market environment and our business operation.
This quarter, our persistence both watch shortage of ships continue to have a significant impact on the auto industry.
The place from July to September PV sales declined each month by 7%, 12% and 17% year over year, respectively.
A decent prices of raw materials and other commodities continue to trend upward as a result of raw coal slated local governments began to implement power rationing policies to limit high energy consumption and high polluted enterprises.
Oems and auto parts manufacturer based in northeast region, and other key manufacturing areas such as dental understood Young provinces were all affected by the policies to a very expect data from the National Bureau of statistics show that automobile manufacturer and innovate for the profit.
Well at 46% year over year with profit margin only four 9%.
Low <unk>.
With multiple unfavorable condition automakers have expanded their projected timing.
Auto production recovery will return to normal level and have reviewed their marketing budgets accordingly.
Boston consulting group's beta and accompanies survey concluded the budget pool related to online marketing I stopped by.
250% year for Lithia.
The market generally expect the auto industry will continue to collaborate as a bottom in the fourth quarter.
Cheap Epo Mcgregory deed post the first quarter of 'twenty two.
Domestic auto market may recover accordingly.
It is expected that the auto market may return to a relatively normal level of growth in the second half of 2022.
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For our traditional business. Despite the short term difficulty sleeping in the auto market.
<unk> also remained focused on improving service quality and customer value instead of adopting radical low price schemes adhering to a dependable business model supports our ability to maintain leading market share position in the auto media vertical.
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Typically we have been deepening our integration with <unk> to create a plan.
At flow service matrix for Caribbean car buying cotton Valley, and <unk> building a vigorous ecosystem.
Great technology.
Ultimate activities and the traffic to achieve that dawn to construction of a healthy automobile ecosystem.
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Moving to accompany our three more content strategy involving more users more format under most scenarios. It's progressing well we have significantly increased the proportion of original video and live streaming content on our platform established cross our collaboration and the rollout.
Complementary offline activities. For example, we currently produce a new program with not used cloud music and help the industry towards cantaloupe or early read on.
One that we also expanded our content offerings with the launch of our motorcycle model library, and the modified cost panel and the industry lobby cotton model library et cetera.
Our effort to diversify our content of matrix and abundant offline activities are consistently broadening our user rigs this.
This year, our featured online offline you win over 18 Super Auto show garnered more than 500 million visits one double last year's number.
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Jay Z Osaka time gives us the ability to toggle back to the more muted.
<unk> Xian Xian Xian Chi Gung Ho.
Fluffy and businesses, we increased our investment in innovative businesses and strives to achieve breakthroughs for example, digital dealer product continued to provide dealer customers with value added services happens or improve the operating performance at present three of our dealer data.
Product has demonstrated a penetration rate of over 50% and we have implemented system level integration with nearly 10 automaker.
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With respect to our <unk> business, we are at.
Flooring automakers specific needs and introducing new <unk> target business model. In addition to providing solutions covering rebranding and the promotional channels for them as I mentioned since the beginning of the year, we have broadened our partnership with plenty to grant.
Our revenue from 88 rent more than doubled year over year in the third quarter.
Jimmy and I will have solutions, Jonathan I got ourselves Canadians on our poultry feed that might improve Osaka, two without getting to the high yield were most of the time, Pete Bajo mine, Google Yahoo, Awesome, So changeovers almost linear amphenol.
All of whom volume will see full impact.
By doing this is Jos Associable Homeward changes Johan.
<unk>, which is a challenge as xiaomi jumped into bed.
We have also accelerated our deployment in the used car industry Lithia.
<unk> components service platform and user model product, we're able to connect the castella with high quality used car dealer directly and build out our number one cost selling platform what kind of user.
In collaboration with auto home TTP.
Greatly improve efficiency and reduce operating costs, we will refine off recently.
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<unk> been in the walk from year to year.
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<unk> shareholders are all booked to date.
There is no off the top of Johnson.
Timing is bullish on C band and times of the year with them yet.
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S&P.
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In Southern New Jersey.
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Function.
With a broadened strategic landscape, we are delighted to see that we have attracted several experienced professionals to our senior management team, including our new CTO. Mr. <unk>, an early participant in the development of the Internet sector in China.
The experience in search engine commercial advertising recommendation systems natural language processing and data mining.
Ward with Ethernet sites, including Yahoo, such power development on the 360 search goes.
Going forward give you lead auto home technology and product development and the OSB AI big data and algorithm upgrades.
I'd like to introduce Ms Young.
The vice President of our seat business. He will focus on the comprehensive upgrade of the fee and products video content and the user experience.
All brings up more than 20 years of experience in the Internet industry and it's one of the earlier user growth that's occurred in China, Yes.
Participated.
That percent of numerous to see who are not using it in companies, including <unk> <unk> and <unk>.
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Finally some.
Some young gone auto home Black President of our OEM business units.
15 years experience in the auto industry, including comprehensive management experience across marketing technology and product.
He has held positions with well known automaker, including flawed forward and Duncan Nissan and had great yields back into the auto market and customer needs.
With that professionals that work that background and skills that the Ethernet and the automotive industry. We are working together to execute auto home strategy and achieve new breakthrough.
Tom.
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Yes caution the timing whereby <unk> Jones I agree Sean solutions pages.
Overall, both of them at that equal footing, its new Santa Paula maintaining its leading position in both mobile and tablet and elliptical media market share supported by the strong balance sheet and the profitability will strategically explore new territory seek new business model and develop new products.
In the future we plan to continue to run in the following areas.
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Hi, Jim.
So the issue of timing.
Timing impact she said it does seem that.
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So no new farm shifting energy.
Well the business will continue to sharpen our three strategies, including introducing key opinion leader to our platform as well as in that online offline equation to increase the depth and breadth.
Three main content colleagues.
Building unstructured data such as car model Library, and our big data recommendation capabilities, we will continue our path.
Accurate recommendation across various interest rate scenarios, who constantly streamline user operation and then Johan user stickiness.
Well, we remained our advantage in covering high spending user groups. We're also embracing the opportunities arising from <unk> through a series of product format.
Our new energy dedicated user section covering high frequency high used scenarios and private domain user community aiming to increase our user penetration among owners and younger demographics.
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This is Jonathan Chang Qi <unk>, King obviously that synergy.
I also want me to jump in.
Joseph <unk>.
Those are the changes impact.
Finally in conjunction with LNG, bombshells laser or the yards, which yet.
Fluffy and business will help automakers to build a digital marketing highway upon digitalization inheritance, and virtualization with cold chain solutions, new while we have broadened the digital dealer business.
The mining business structure, and empower dealer with our digital product.
<unk> operates under management also.
<unk> used car business will political operate with Ping an to upgrade that could in theory.
We're also going to be a golden standards, such as the cases that theme with TTP. So quick.
Eight a trustworthy ecosystem that empower dealers across our full lifecycle and provide consumers with high standard experience.
While the JV cheers with.
And we did all the equipment, so it's up to them.
<unk> Shah Treasonable game.
Eugenia.
But net neutral.
What was the total weight.
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Slide 10.
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Joseph.
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<unk>, whose job or you've seen last year.
Channel So it's Terry Mcgill with both sides of the year, which was up one more intelligent goods.
Bush, our plumbing, you Gigi would give us pause as Jim talked about our kind of show in Boston.
So Tom do you Cook.
<unk>.
While the third quarter.
Hello, This is John <unk>.
We firmly believe that the auto industry with current challenges are temporary and that the industry's long term positive trend remains intact. We now estimate tenant auto industry will be still growth plan.
2022.
In that we are convinced that all of them media services business will be poised for rapid recovery, while our new business will be in a better position to the market.
Local Walmart auto home will continue to build it with Ping an.
Our health business model and our solid fundamental overhaul will Saturday promote business in the region.
Our growth potential and strive for long term sustainable development.
Full confidence in the long term development of China's.
Overall auto market on the company.
Chavez Qingtai forget Jeff hung of UBS.
I Gotcha is all fungible, the timing issue with that ill turn the portola to our finance director.
Yeah.
Closer look at our third quarter financial results.
Thank you Li Hello, now, let me walk you through the key financials for the quarter. Please note that that's always a powerful.
Currency RMB only in my discussion today.
Net revenue for the third quarter were 176.
When the detailed breakdown media rather looking at the 400.
For a minute.
These centers and correct. This revenue was $768 million.
Online marketplace and other revenue increased by two 5% year over year.
561 minute.
Susan.
Consolidation of TTP.
Moving onto costs cost of revenue.
281 million compared to $250 million in the second quarter of 2020, Mark Marvin was 84, 1% quarter compared to 89, 2% in the same store.
Last year.
Operating expenses sales and marketing expenses in the first quarter was 712.
And then compared to 979 minutes I'll call. The decrease was primarily due to the reduction in promotional spending and continuing to tightly control product development expenses were 354 million compared to 349 million.
Please go ahead.
Yeah.
100 <unk> seven.
Million compared to 100, and what they need and what kind of a pleasant thing overall.
Our operating profit.
365.
It's a quarter compared to 744 million of course Sunday accumulate 20 funding.
<unk> net income.
Attributable to alcohol.
With 500.
In the first quarter compared to 902 lending and the proposal to adopt a different non-GAAP basic and diluted earnings per share for the third quarter were one one.
And the one client website, RMB, respectively, compared to $1 89 and $1.
RMB in the portfolio.
Please.
Note that the basic and diluted earnings per avs.
Quarter, 461, and six one RMB, respectively compared to seven five.
And the seven points to RMB in the course I'm just curious last year.
September 30th 2021 our balance sheet remained very strong with cash cash equivalents and short term investments up 19.1.
We generated operating cash flow of 500.
67 million in the third quarter pardon me quick one.
With that we're ready to take your questions.
Operator, please open the line for Q&A.
Thanks.
Thank you.
So ladies and gentlemen, if you would.
Wish to queue for question. Please.
Today's press zero one.
Alright, thats it from keep at it.
Wait for a name to be announced.
If you wish to come to your questions.
Thanks, Preston that wrote two.
Well, we'd like to keep to one question as a maximum four each time.
And New York Monday to state your name and company name.
The first question is from.
From Thomas Chung.
At Jefferies. Please go ahead.
Please go go ahead tangential.
All of which have been.
Thank you T y.
Well, yes. It wasn't you there you go.
And Jim and I watch it.
<unk> is led by myself.
My question is how long can that bad debt compared.
<unk> landscape in each business segment. Thank you.
Lastly, I'd point to do anything.
With that.
Okay. That's helpful.
Yes.
You bet.
So you don't need a credit financing.
Yep.
You don't want to do with a lot of them.
Gotcha.
Okay.
Yes.
We think that we're starting to turn.
Okay.
So if you keep track of that.
Sure.
So I think that's the army.
International Jonathan.
Net income Luciano ammonia issue.
That doesn't.
Hi, Craig it's underneath that the venture Humana.
<unk> mobile banking App.
Is that.
Sure.
We're going to hit for the trial.
Two of them.
Sure.
Okay.
Yes.
Element I think of the Assortments.
Hi, Shlomo.
The high end of October.
Okay.
Okay.
The change is coming.
You are now putting them from the shopping them Paul.
Sure.
Could you talk about the Chongqing Xi'an equal.
Sure.
Good evening.
Social that's when we made the Permian.
Some of that issue.
Great.
We're looking at additional debt.
What's your opinion.
Thanks Colin.
Hi, Charles.
Well immediately.
Gotcha.
Sure.
Yes, yes, you can.
Timna you alluded.
Well I didn't need it.
That's it.
Which was in London.
Yes.
That's been kind of under penetration.
Uh huh.
Thank you Amanda.
And Ken.
Can you talk to.
Political assumed.
The ticket.
So.
Internationally.
Yes.
Okay.
101.
Mhm 2 million from here hopefully.
Our equivalent metric if you will.
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Great.
Okay.
Okay.
Good question Walter.
All of them.
Yes.
Well look for them to continue that.
That accretion.
You know that some chunk of <unk> English.
Oh, thank you.
Thank you for the question actually according to the statistics from a question more about the number of daily to you.
I'll follow access to mobile web site.
I'm also proud primary ABB, maybe AVP grow to $43 87 million.
September representing 10, 3% increase.
Actually our model.
Especially for us active users.
Actually we use the mobile phones.
5000, RMB, 137%.
Actually comparing that number with our peers our major competitors that's number it was 20%.
Average.
Which indicate that other yes, there is more high end and actually that purchase empowered.
Well according to the competitive landscape, maybe somebody will say all comparator.
So a mother company Tencent.
Hi, Dan.
Our mother company PR wasn't very capable.
So Paul let me close with you.
Okay.
We have.
And a 40 million internet users.
And the 210 million financial.
Let's start with users.
So we have still have 16 million auto insurance.
And Mr Elliott.
Okay.
Credit card users, which also the car owners.
Okay.
So actually Lebron James.
Large end of that.
Customer base, so we actually grow.
Grow our own business.
Extended into the EV and <unk>.
When you go and you.
The business as well as the live streaming live broadcasting business.
We also offered a lot of for example motorcycle car model Library, and and also together with the live streaming and the live broadcasting business, where our trusted mono modules, especially the yellow yogurt.
Now, let me turn to Mr. Shanghai film to take more out for your question. Thank you.
Uh huh.
Okay. Thanks, guys have a woman the way.
Yes.
Thanks.
Sure.
Jim can give the Cabozantinib Alicia.
Sure you would like to share with.
I would like to share with you my outlook over the next 24 months after market competition.
So as you know, we've got well Michel I kind of I don't want get well put a Joe chip how are you.
Sorry, it's Jim How're, you will come out.
In the winter.
Sure Jay.
How quickly can we just couldnt get the job.
Sean quick dry shampoo.
Okay.
Great.
Well without.
Sure.
Sure so on the shelf.
No I can't.
Jacob.
Oh, no you can guys.
It sounds like Jonathan your payout charter would you cut.
Jonathan you Guy will mitigate that hung in there.
Sure sure.
<unk>.
Now, let's look at our traditional business first.
We believe that the traditional business actually want to transform from quantitative base to qualitative space, which may have the driver would it be.
And then transform into quality know him from the dealers would pay more attention to the quality of the data for example.
Is that 10 minutes on the conversion rates obsolete.
In terms of this.
It's absolutely a number one.
But oh call media industry.
Jonathan I mean total Chicago.
No actually.
Took the job.
Quick follow up on land the Cushing Shaw.
Okay.
Sure.
Okay.
Sure Tien tsin.
We ended the phone company yourself.
Does that shift what does the charter.
Well I'm not sure we can do.
So understand that that'd be great.
Quick one on countries.
Unless you're a woman.
I didn't get it.
No.
And I want to spend a product perspective.
The other the trust.
From the export type two more interactive and immersive Scott.
We believe that the lead in the future while being more direct linkage with the customers.
John this year without doing that.
So I understand why you guys here shortly.
Excuse me and you're trying to shop.
Back on the sooner you will you be.
And that kind of.
Well I'm not sure I can talk to Scott <unk>.
Continuing our Shanghai, Guangzhou and Chengdu.
Well, it's actually trading of that playing out.
No.
As of June <unk>.
Well I mean, that's the way, it's Hawaii and got some good data on that.
Well you may come down to Congress.
John actually it's a good point, yes.
No it sounds like a cheap.
Hi.
Tim just to ensure that cant be usual logic.
Baidu Amit.
Could I should say.
We shipped out at least the high yield.
We sure can.
Google shopping that way too.
Hi, Brian.
This is Joe.
Pardon.
Right.
Nah to Jonathan's question on that because of your ocean actually that's it.
You have that you're going to see Charlie I took the job one.
Chile the shoot you.
Yeah, well I mean, there shortly.
Sure women can we gave you an anti should get to talk to you as a woman does change well window for Lake Gino young patients with GR shooting until either mushy.
Shall we see is how the actual.
Thank you guys.
Hi, Andy.
Well I'm in there somewhere.
In that I should be.
Now, let's look at the new business, we have three major piece how come you visited one is data.
That came in and you think that's.
That's probably the one that we used to call.
Now, let's look at the data business.
The data we believe that's the one thing which is quite a momentum and it's for sure that is it. Thank you.
Our transformation under.
Under the dealers.
Sure.
Accelerating the whole process to go to digitalization.
However, with our competitors actually we are an early bird in the vertical media industry off the old tool and a comparable with other competitors, which are internet players like the Baidu Alibaba and <unk> life.
Actually we have a better foundation and a more solid foundation.
That runs the company actually we have larger volume off the data because we accumulated the data over since 2016 and secondly, we have a go.
Job in cleaning the data classifying the data and we co tenancy valid data into our models, which make our models more valid.
More relevance and the most much so in this way.
We have better results than the sector overall in terms of the data business.
She may actually need them in the chain.
Sure Jonathan.
Well, let me follow up up until now.
And I kind of excuse me I'm not sure that we like.
And a couple of them into the <unk>.
Good how are you completely out of Suzhou factory and one more for you Scott.
As shown on incentive comp.
The cultural fit.
So you could see the truth.
Take care.
The capital will actually go up.
<unk>.
Sure.
<unk>, you Christian particular job functions.
No Kevin I would absolutely not a character in C&I.
So Jerry I know well.
When we cannot we're not tied to Joey pardon me at all of them, which can.
Sheila No woman Triple know, what my how quick tweets going shimmy.
You're bound to Sydney.
<unk>.
Clean sorry, Jim Walsh co yield can call there you see it.
Sure.
Charlie.
Now, let's look at that business.
Actually we already account for more than 2% of the market share that they.
Business looking into the next two years, we believe that the Oems that this challenge is how to maximize that ensures that cells.
Direct sales model.
Vertical media players you've got those transformed that business.
And it does serve as a model that would be a big challenge for them.
What we are already in the leading position because we have already promoted and also boosted does that transaction in itself in the nev market.
This way, we can help gross Oems to achieve more success there.
The direct selling.
Selling <unk>.
Model.
I'm not.
You may now come with regard nutritious on top <unk> patches.
So there was a comment and then maybe with Twitch and truthful.
Sure.
Gene to Wuxi polling Synagro truly me and that's just kind of curious as job seeker B B herpes zoster chunk were pushing that legal question not just because I'm not.
How does somebody you've got tight.
Now, let's comment on the used car business.
Hi.
The market in China, but it's very much segmented.
No it's no giant player with dominant in this market because there's so many small players.
So its much segmented into the B and the C b.
Toby side and it seems to be fine.
Lack of trust is.
Major challenge.
No woman.
Even though a man Oh man.
Got it.
Great.
I'm not sure.
Oh, well I'm going to move on that side.
Sure so yeah.
Uh huh.
So you need to look at that.
I might Joey E G.
Yes.
Hi, Julien.
I'm going to be eating up tick.
<unk>.
Sure John.
Okay.
Andrew.
Hi, Phil.
As a woman since I took the job Joey you Andrea Sean just to pay back.
The pilot well.
Well I'm not sure yet.
Yeah.
Got it.
Well actually in terms of the use of Congress.
Perfect.
Our major competitor is 5858 <unk> dot com.
So we are more successful in promoting the transaction.
So we effectively effectively boosted the transaction.
The trading and transaction and auction process. We are more of the VAT comparison was five eight.
Hello, Mr Arthur which hurt on that well then let's call it about keeping an eye Joe sure Joe Joseph you absolutely.
Yes.
Yeah.
Got you.
And that's what where you got Lucky you go find me in that choose to go to be up 2%.
<unk> took a lot Hawkins the army that took the time to compete Jodi you sign the contract.
Yes.
Well not.
And to what.
Took oh I'm sure no one.
Sure.
Okay.
The Andrew can towards a tool shop.
Well, let me say she wanted to go up I would mentioned that in Louisiana, Florida, one door the artworks Christian I'm not in a little corner.
Wendell.
And the final one when do you achieve it and on the go.
Oh, Yeah sure shop Triple net.
Building towards the Tucson, Chapa youre going toward the three R. True you know youre looking towards CRE.
You couldn't do it they'll see ourselves now where machine clinical landscape architects.
Joe.
Would it.
Akshay.
Actually in terms of the used car business leveraging on P&L Gibbs massive resources.
Well have benefit and our advantages is that we can maximize our source of models. They used cars is.
We can monopoly the source of the used to cost and we can very quickly.
The second player in the market by getting into the B to B model in this way we will be in the lithium position and we actually is already in the leading position and enjoy yourself.
Why Israel.
Dealers are used to car dealers currently we're working with a modest 50000 used car dealers and our target is to grow this number to model.
990000 currently it's 50000.
Yeah, 90000 used car dealers and this way we can maximize our sourced off the used cars and then we can boost of that transaction.
We will be in the leader position in the used car auction market.
Yeah.
Our next question Shannon.
Sure.
Our next question will be from Brent Chow TICC. Please go ahead.
Okay.
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Hi.
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Good morning.
Okay.
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Yes.
No.
Yeah.
Alright.
Yeah.
Yes.
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Yes.
Okay.
That's helpful.
Okay.
Okay.
Yes.
Okay.
Great.
Thanks, Mike.
Yeah.
Okay.
Okay.
Thank you Jarrod surging drug to <unk>.
Charging Dr. Ms Brenda.
It seems like it hasn't really bad signal.
So can you please readjust and ask the question again.
Okay.
Sure.
Well.
Okay.
Oh, sorry, sorry, everyone.
Participant to Brenda is having bit of technical issues at the moment, maybe it will have her back later.
Now, let's move on with next question.
Was from HSBC Richie some please go ahead.
Hey, Quentin has had a lot of time, especially anybody just on what the tier one.
SASSA subsidiary senior which has seen one teach auto club King and sound.
To show the Java, China sure she won the CLIA waiver.
Uh huh.
It seemed like Oh.
Oh, sorry, what did you guys paying I think that's what you see I thought that Oh, so that's good.
The way Oh, yeah, Okay. So I'll try to take the question myself. So recently there were some news talking about paying on potentially it sounds like auto home stake can match fund respond to that and how do we see pangong involvement into auto home strategy and subtle.
The importance to us.
Ping off how does it change at all so far thank you.
So essentially you're trying to shop.
Yes.
I'm very proud of it.
Well Mario element that can sit on April <unk> Mayo should avoid liquidity from the P&C.
With that let's hear data, which actually plays Eagle that you guys had ended.
Woman and <unk>.
The click <unk>.
Let's go to the other countries.
Teachers yesterday that Telerik.
<unk> project coastal counties.
The phase <unk>.
Just finish on the appellate court.
The simultaneous ensure security.
She tried to definitely be too many antitrust situation that trend of switching to pinch it for.
While monthly buttressing uncharted waters.
Yes actually.
My comment.
It's just too soon.
No sound evidence internally, we have not heard Amy.
Thanks.
Similar to when you quoted.
Haven't had any news like that.
Actually if you look at the auto home shares the share value currently is undervalued the share price.
Actually for peer group.
We have very frequent.
Time, and timely as well as a discussion about the auto business.
And also this more names held an internal.
The internal meeting talking about Oh that.
Remains to be one of the core part of the auto ecosystem of the PM group and <unk>.
Two will be in the pitcher <unk> piano attach great importance to support <unk> development. Thank you.
Yes.
Yes.
Okay.
Thank you our next question.
Yes he is.
From my Brenda Chow and CIC. Please go ahead.
Hey, Glenn did you do that now with the Bay area, but then yeah.
Shockwave Metro Chicago.
Okay.
Are you doing.
Great and could you tell me that kind of a natural muscle hormone conduct to Jack a quick and you show when I go to bed.
Thiago in tissue glad you're going to die. So you don't know what kind.
You can do something.
Similar to the Hilton from chassis, which worked out to be bought out for.
I hope you all will be back to Joe.
The.
<unk>.
Thank you.
It wouldn't be quite the same.
Thanks management for taking my questions I have two questions here first could management share the view of <unk> next year market outlook.
Yeah coal business revenue growth is.
Back there to recover and our next question is related to the customer and strategy. So what's the company.
Strategy.
The new emerging business models, such as a screening.
Uh huh.
Yes.
Total eni with HIV of antibody Kitano yokota automatically.
Hello.
Uh huh.
You guys have the Macau.
Just trying to go to <unk>.
Franchise royalty for <unk>, which I know one of our highest wage.
Please go ahead.
Cash included the capital which occurred.
Good.
Okay.
Look one quarter look I'm sure.
Sure Minion no cure.
Good article furniture.
Sure Kevin.
Nah transact junior junior like transactions, you can shop junior in the Q on Q due.
So when you guys are seeing two charts show that garage.
Maybe I can we end up with at all.
What kind of woman do you take them and then what about hydro wait for that.
No.
So you answered it to Cushing.
Sean I'll finish sooner women, which I'm not sure you're good job doing.
One complete one.
<unk> got a job very cheap.
Well I mean, it <unk> mean, you know it's interesting.
Hi.
I can just put out.
Just going through that.
Sure.
If we can take a job.
Each of them.
You cannot pay cheap.
She took their.
Sure.
Chip.
Yes.
Well actually.
Question Firstly.
[laughter] desktops supply off the charts.
Business.
On the optimistic side, we believe that's the case to the situation that will be used for the later half of next year, you can see that the whole market would it be you know turnover actually for this year carefully and careful in terms of the new car sales we were.
Call it the darkest of time.
We believe this depression, while the east in the next two to one.
We believe the new car sales or.
Or will it go up.
In Q1, maybe you would be growing by 4% to 5%.
Would it be middle single digits.
And I think it would be comparable to the growth rate of 2019.
Yeah.
So have your number.
Operator, Thank you Michael Hammer.
Great.
Okay.
Well, that's a day.
So you don't you will therefore, the MTS, so sienna well.
Two things that you talk to what efforts.
Therefore.
Sorry, I know.
She said that she tried to easily attach rate our nation.
Now you know ourselves quite a short one.
So are you kind of melanoma lesion you may see Tricia you guys hit half without a doubt.
I intend to work to ensure that your book towards from Hydro the challenge us to accumulative initiative into the tumor.
To address this.
This should be the.
Right now they are not so sure.
A woman tissue that you bought it please.
Please listen to the shooting implementing a shovel in the womens sandals affiliating with Dougherty <unk> <unk> dilutive RFID you should come to the shipyard, who can do that triple net with hotel woman.
Just in the Congo.
Q <unk> T cells.
<unk> board of trustees.
Good.
Thanks.
No.
Lives, claiming business actually we have to distinguish from live broadcasting and the live broadcasting Wow lifestyle of the of the vehicles.
Actually in terms of the lab.
Streaming and the live selling of the vehicle.
We do see that lots of discussion about that however, the real sense is still very low because auto sales is very complicated transaction and cannot easily be completely down.
So actually we are expecting that on the live streaming.
Yeah.
More.
You always kid.
Kid, we would've seen more way to you know to be more apt to be in the future actually tomorrow would it be the Guangzhou auto show and we would be hosting seven our lives, claiming campaign, which is quite innovative large Jamie and activity. So we welcome you to <unk>.
Joining us, but tomorrow July of Xiaomi.
Right.
And believe me we can consider.
Thank you.
Yeah.
Okay.
Operator.
Thank you there are no further questions at this time I'll turn the conference back to management for closing comments.
Sure.
Argentina.
While she is on a shop.
In fact, our total implementation Plaza <unk>.
Hugo deals many of them would be a good June why are you. So.
<unk>.
Thank you. Thank you everyone and thank you very much for joining US today, we appreciate your support and we look forward.
Taking you on next quarters conference call.
In the meantime, please feel free to contact us.
Any further questions or comments, thank you goodbye.
Okay.
Okay.