Q4 2021 Autohome Inc Earnings Call
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Ladies and gentlemen, thank you for attending by for auto homes fourth quarter and full year 2021 earnings conference call.
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.
You have any objection you may disconnect at this time. It is now my pleasure to introduce your host Sterling. So alto homes IR director. Mr. Song. Please go ahead.
Thank you Venice.
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Welcome to older homes, what's quarter on a full year 2021 earnings conference call.
Good day auto home distributor.
Earnings Press release, and you may find a copy on our company's website at Www Dot auto home Dot Com dossier.
On today's call, we have chairman and Chief Executive Officer, Mr struggle.
President <unk> HIFU Shaw, Chief Technology Officer Peoples Vice President.
As well as finance director Ms. Cynthia <unk>.
After our prepared remarks, our management team will be available answer all your questions.
Before we begin please note that the discussion today will contain forward looking statements made under the safe Harbor for regions.
U S Private Securities Litigation Reform Act of 90 95.
Forward 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 Securities and Exchange Commission.
Although home does not undertake any obligation to update any forward looking statements, except as required under applicable law.
The earnings press release in 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 measures.
It's available on auto home to our restaurants as a reminder.
This conference is being recorded.
Our lives on the archived webcast of this earnings conference call will also be available ultra homes IR website.
Next I will now turn the call over to auto home Chairman and CEO Mr alone.
Please go ahead.
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All right. Thank you everyone Hello, everyone and thank you for joining us today in the earnings call.
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<unk> was another in euro year for all of us. Despite the timing of micro environment. We are incredibly proud of auto homes relevant performance throughout the whole year as bill <unk> ongoing efforts to transform and upgrade its peer group.
We're also proud of the continued recognition we received from both the industry and our customers, including being listed as one of China's top 100 Internet companies for the ninth consecutive year runs from <unk> in 2021.
We delivered total revenue of RMB 724 billion for 2020 one of weeks contribution from new business goes from 23, 2% in 2022, 39% of total revenue in 2021 with new business revenue growing by 11, 6% year over year.
Our adjusted net profit for the year was RMB 258 billion with our adjusted net margin maintaining the comparatively high level of 35, 7%.
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Q1 witnessed two significant milestones we achieved in middle of March or the heart of the SaaS will be listed on the Hong Kong stock exchange.
Delighted to have reached this milestone and have embarked on this new journey for increased auto loan exposure to Hong Kong capital markets.
During our Investor day in September we unveiled our ecosystem strategy to bolster ultra home inspiration with nine hotels ecosystem, making our unique suite of full cycle auto ecosystem services as well as our leading AD platform accessible to an even broader base of seat and custom.
And OEM customers and other partners in the auto ecosystem.
Addition to maintaining our annual dividend payout of around 100% net income for the year, we launched a USD 200 million share repurchase program to reward shareholders for their long term support which represented our commitment to our strategic upgrades and the confidence in our future performance.
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The challenges we faced over the past year with job to seek new opportunities and tap into new arena, where else have robust momentum in our traditional business and presenting a pre eminent position in the auto media vertical increasingly explore new business areas to build a solid foundation.
For our sick and the growth trajectory.
We have customers, we remain focused on expanding video content.
Other engaging content.
Two younger users with a growing diversified and high quality content library, we continue to expand our user base.
In December 2021, total homes with an all time high mobile <unk> 11.
11, 4% year over year further cementing our leadership in the industry.
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In terms of our new business.
Our ongoing efforts to engage and collaborate with an EV automakers likely increasing revenue from BBB breath, which more than doubled on a year over year basis our.
Our digital dealer solutions also continue to achieve read through in a data product adoption rates by dealer customers.
Written by an increase of 18% year over year in the average number of beta products adopted by each dealer.
Suddenly leveraging our integration with TPP wire house matching and auction capability, we have reinforced our position in the used car market contributing to approximately 17% of old used passenger vehicle space in China.
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Next I will provide more details on several areas with regards to traffic. According to pass model, although homes mobile <unk> reached 46 9 million in December 2021, with a year over year increase of 11, 4%, surpassing the total view of the second.
Not as a player in the market combined.
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Data is at the end of Q4, 2021 auto homes ATP penetration rates kept its number one position in the auto media Blitz co and then maintained its top of mind status as a preferred auto platform for meeting user needs will be building buying and using cost.
Notably the proportion of high end users with smartphones worth over RMB 5000, Q1, 37% property Yao the industry average.
Our base with its granular both traffic and it's dropped puts US empower has helped the company to generate the most revenue between the auto media political Meanwhile, building our alliance with <unk>.
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Regarding content, we're actively developing innovative content offerings, including short video live streaming content for AEP centric online community to enhance our product power and reshape our economy strength.
We also prioritize our resources to continuously create blockbuster content and IP to increase user engagement and user stickiness arguably becoming the bill to auto vertical video platform the largest online auto vertical like streaming platforms as well as the largest online.
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<unk> pioneered the August 18th Silver Auto show, a well known auto IP, we've had success with the Russell three consecutive years, an attractive countrywide attention during 'twenty 'twenty. One August agency Auto show, we garnered more than 500, many visits drove over 90.
Million interactions and generated over $15 5 billion such results. This event truly demonstrated our ability to connect users Oems and dealers as well as our influence on the industry as we particularly promote the industry development.
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During the November 2021 formula auto shows.
Innovative live streaming scenes with immersive online shopping experience.
L plus dealer live streaming reached on average 500 live streamed per day with the increase in time spent by users a microscope reading and aggregated scale out into action right. The results were a patterns with dealer conversion rate greatly improved and total views reaching $700 million.
In addition to the Guangzhou Auto show Auto home health, a power fast 2021 to provide that wasn't opportunities for <unk> and and the jumpstart innovation competition to wider auto homes brand awareness among the younger generation.
The exposure for both big events exceeded $100 million. Furthermore, during the peer we created the largest online auto owners manual library motorcycle module library and auto modification library.
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Since the start of 2021 chip shortage on the raw material price hikes have greatly affected the auto industry and the cost reductions the automakers marketing budget.
Auto homes traditional business remains stable firmly maintained its leading position as the number one auto media vertical.
Furthermore, we also launched this year and innovative or to add resource to solution model empowering Oems with our integrated one stop solution the expansion of our new business effectively reduced the downward pressure on our traditional business Amit the challenging environment.
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These subscription package contract renewal process with Patrick Thanks package with 88% renewal rate our high and.
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We continue to work tirelessly to empower automakers digital transformation through our AI and <unk> applications we.
We have launched a series of new data products, such as private domain operations, and we add sales packages.
Regarding dealer digitalization, we have launched <unk> and smart QC to help dealers manage their performance recently.
In 2021, the average number of digital product purchased per dealer per customer has increased by 18% year over year to three one.
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Aligned with the rapid growth in every market.
We have upgraded our e-commerce service to provide all runs dilution to <unk> companies from branding to advertisement tracking.
I think the Commerce service helps them build brand visibility and real sales.
All of them have collect collaborated with 72 mainstream brands in 2021 with revenue generated from the business, increasing by 100, and a 28% year over year, capturing 60% of market share in the media vertical among mainstream emerging.
The players.
In the future, we will continue to expand our business through content upgrade innovative channel and the use of operations to build the largest online media vertical and a trading platform while AAV.
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The challenge is either being shipped in bulk deal with.
For our used car business.
President of auto home has become the chairman of TPP.
Although home has further expanded our business with deepening synergy with GBP eight nine integrated platform connecting information operations and <unk>.
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The used car business is driving forward with our asset light and platform focused strategy.
As a result, TDP financial performance is consistently improving but used car buyers and sellers, we've developed a tremendous database.
<unk> uses history.
We're able to retrieve 98% coverage in Congress, who were in the Q3 and 80% in maintenance category, which also makes us the industry leader.
Therefore, we're able to efficiently results buyers' concerns do reduce comp.
In addition, Martin with patient product enables dealers to improve the quality of that lease and enhanced lead to improved transaction efficiency.
Going forward all the homes used car business will continue to pursue our comprehensive sector strategy.
It is now.
This is lightning youth current information on the dealer operating processes.
Aim to consolidate our leadership as the largest online used car trading platform in China, providing standardized merchandise and the pilot process.
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We are fully integrated into the <unk> ultra ecosystem and leverage advantages to realize our unique presence in the auto industry.
Wider and deeper scope of collaboration we will leverage <unk> launch offline team, which will provide us with his team advantages compared with other internet companies.
By connecting with Peanuts massive was highlighted customer base and the over 140 million owners.
<unk> partnership with <unk> aims to create the industry's first complete ultimately ecosystem.
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Okay, 22 is likely to bring opportunities and also new challenges looking ahead as we continue to uphold our value proposition with vigorous promotion our ecosystem strategic principle Mason, we are determined to pursue our mission to empower.
Customers with top notch products and our services.
Aiming to achieve long term sustainable growth at the same time will promote the comprehensive implementation of strategic upgrades.
<unk> investment in new business areas, bringing <unk> back on track to fast growth. We are completely confident of the long term development of China's overall auto market as well as auto homes on billing growth in the future.
Okay.
Sean mentioned, Jonathan would you say to yourself.
EMEA, so 10 minutes.
Yes.
Thank you.
Okay.
With that I will now turn the call over to meet <unk>.
Our finance director.
Look at our financial results for the fourth quarter and full year 2021 .
Thank you Mr alone.
Now let me finish.
Financial.
And our full year 2020 plan. Please note that as with powerful I will reference RMB only you might be present today.
Unless otherwise stated.
Net revenue for the fourth quarter were 1694.
For a detailed breakdown media services revenue came in at $373 million lead generation services revenue was $778 million and online marketplace and others revenues were 543 minutes.
Onto costs cost of revenue was $262 million compared to $268 million in the fourth quarter of 2020 gross margin was 85% in the fourth quarter compared to 89% in the same period of time.
Okay.
Turning to operating expenses.
<unk> expenses in the fourth quarter were 803 million compared to 871 million a year ago that equates to what the primarily due to the decrease in promotional spending and continue with the budget control product development expenses was $395 million compared to $397 million.
The fourth quarter of <unk>.
Finally, G&A expenses were $128 million compared to $71 million in the fourth quarter of 2020. The increase was primarily due to the consolidation of TTP.
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Operating profit of 177 minutes.
Compared with 947 million corresponding to a rate opportunity.
Does give a nice income.
The outcome, Inc was 470 million for the fourth quarter compared to 1190 2 million in the first of all new Keurig.
non-GAAP basic and diluted earnings per share for the fourth quarter was <unk> 93, and <unk> 93, respectively compared to 49, and the 248, respectively in the corresponding period upfront.
Note that the basic capabilities earnings for ABS for the fourth quarter was three point a favorite one and a 371 quick furtively compared to $9 95, and $9 nine one respectively for Sunday right out to 2020.
Now, let me turning to a short summary of our 2021 full year results.
Total revenue.
Kevin.
Fulfill it.
You need their services revenue to find here 1 billion lead generation services revenue was $2 99 billion and online marketplace and others revenue increased by 11, 6% year over year to two 4 billion, primarily attributable to the consolidation obviously keeping.
In addition, we delivered an adjusted net income attributable to ATA, Inc. Our $2 $5 8 billion, which excluded certain noncash targets or non operating items.
As of December 31st 2021 of our balance sheet remains very strong with cash cash equivalents and short term investments of 27, 3 billion, which generated operating cash flow of three five to filling in 2021 on.
On November 18th 2021, our board of Directors has authorized a share repurchase program and of which we may repurchase up to 200 million U S. Dollar.
<unk> ABS for appeal right now to exceed the 12 plus thereafter as of February 22nd half 2022, we had the repurchase for 432653 ABS.
Total cost of approximately $12 7 million lifestyle.
I'm also pleased to announce that our board has approved a cash dividend of approximately <unk> to $5. Three U S. Dollar EPS viewpoint 1325 U S dollar per ordinary share.
Following these dividend payments will still have ample capital resources to invest in our business and further strengthen our leadership position going forward.
With that we're ready to pick up questions. Operator, Please open the line for Q&A.
We will now begin the question and answer session audio participants quick question to pose please press <unk> one on your telephone keypad and you will be placed in the Q2.
To cancel the queue. Please press star two.
Once again.
First one on your telephone keypad now.
Our first question is Mr. Thomas Chong from Jefferies.
Please go ahead.
Okay.
On.
For taking my question.
Question on all of you on the auto industry.
Coming quarters and the company.
Thanks.
Well, thank you Jeff.
Sure.
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Well, thank you very much and we got to take the question and the chairman.
My name is Laura Chen well actually I don't see the statistics from the passenger car Association.
Maybe in January up 22 actually two.
22, the Chinese auto market.
Actually the growth of the whole market on the retail side would it be about 5%, 5%. However for the new vehicle the accumulated itself would be more than five 5 million.
The market penetration rate can be 25%.
After.
The NDP in China market would it be around 70%.
So mark I'm going to let Jonathan so growing assist hospitalization.
John Youre going enrolment Tuesday, chimp data as well.
As soon as our chairman.
So John Thank you Jim.
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Let me talk about all the homes, we have to keep that business. One is traditional business the second or would it be the new business now that's still says on the traditional business actually.
We have the Chinese auto market, we believe our traditional business what do we do them back to the normal track actually last year. The change the auto market was quite down. So that's why it is dragging down our traditional business.
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I still want to say, we continue to be number one in the hotel vertical media market.
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It took us out which is what you said.
Now, let's focus on the new business, we have three pillar industries on the New Zealand business. One is the digital like the product actually we believe in 2022 the revenue this piece.
Monthly increase in terms of the contribution to the total revenue the second piece of it would it be the NBC actually we have a collaboration with <unk>.
<unk> brands in China, and I think it will continue to grow and contribute to the total revenue and that's because the mezz would it be used car.
Mr Shanghai.
Was named as the chairman of the TTP and.
Defense.
I think it's a collaboration of TTP with auto which would also drive up to the revenue.
Operator.
Thank you.
Next question, which is from from HSBC. Please go ahead.
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Let me close enough questions myself. Thank you for taking my questions two questions Firstly.
About 2022.
On the used car market outlook.
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Used car business.
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Well. Thank you for the question I saw the used car market. We believe it will continue to grow actually in 'twenty, two and we'll keep funding the sandal market.
That used to come market have a few features which is quite distinctive.
All of the first to feature it is a hard segmenting the market.
A lot of the players and stakeholders in this market was quite small there is no much the leader on the monopoly player in this market and also the lack of track between the other examples in the filings whether it be a major problem unit used to call market.
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Actually for our used car business plus TTP, we do have a good strategy.
We target based on the strategy the first one.
Our growth.
Of the revenues should be outpacing the market happens secondly, we want to achieve breakeven based on the break even though foundation, we're going to further expand the transactions. It says to me the volume of the used car transaction, which ones drive up the revenue.
Definitely.
And 'twenty two we would have gone into.
The digital business and digital life business, partly used to cost which would be recognized by the dealer.
Data with one.
The revenue.
Chip tissue. Thank you.
Thank you.
Next question Henry Wang from CIC. Please go ahead.
My question was there any Charles for you guys.
Thank you Vanessa.
We are kind of watching the frequency.
Okay margins on in terms of anything beyond that.
Thanks, you guys.
Okay.
Mr. Hoh Genco margins I'll go with your question.
So thanks management for taking my question. So we can see some pressure on the operating margin this quarter and in Wyoming.
If we still have some ongoing investments.
Digital transformation, where we are.
Some cost control in the future and win.
The operating margin to improve Martin Thank you.
Whenever they decide to go in here.
We'll maintain our euro and yen.
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Okay on the Pennsylvania negotiate right Glenn.
And I've got the final moment sholto.
Okay.
Nicole.
County Council I think a couple of countries are holding our core.
All countries are core tax rate right now most of them are going towards the two kind of one thing you said in the economy.
To ensure continued with each of Kodak.
Continue with people for these.
In the Cheyenne, mostly catalysis in the country mitigating factor should be both on many of the total.
Well thank you.
The 2022 based on the outlook.
Also market in China, we believe the traditional auto market, where do we come back.
You have to bring up our traditional business.
I'll need to be.
We are going to increase the efficiency and also compressed operating cost and the unit play was to achieve a more cost effective.
And secondly, we are going to be investing more in innovative new business, especially the new business model development.
New RMB for the CBB.
No I didn't.
I wouldn't say fever panel.
And cohorts that will need here.
Towards the middle to 40, just yet.
Oh I see.
Total total.
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In the east.
He CFO Eddie here.
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So they don't quite sound like it, but I can't put a full floor.
Now I'll, let the seaside Wednesday.
To bring more innovative product for example, the last screening <unk>, we are going to establish Suvs, especially area to attract the young generation and attract new traffic and we are going to enhance the customer.
Use of our planning and also to attract more young users.
I'm not I think Wilmington, GA sales marketing R&D denominator will really be the keto katana now sit down on the triangle, we're talking like in the telco and I don't know.
Total core types within he told me that so you don't see lights out behind that the operating margin in the coming Gotcha Gotcha I kept home already are in yen figure Tushar I think they'll hold right now.
Chenzhou for Ya.
And I can tell you on the Orange County, you got operating with a margin of probably a couple of brief without your life you got on that.
Actually with more investments in sales and marketing and R&D.
Let's focus on the efficiency of clean that investment.
We do not affect our operating margin in 2022.
Do you have the Chinese auto market, we believe that our margins have also been good.
Thank you.
Okay, No that's really good morning, Doug.
Your line is now.
Karen you go downstream does Macquarie negotiate.
Thank God.
Yes.
Okay.
I'll now that you've got.
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Yes.
Q2 o'clock will now introduce Scott yeah. Thanks.
What kind of lead or Chicago.
No.
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Akshay.
You've got something to show up.
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No.
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Nick.
Turning to the Fukushima with other international.
Tissue.
No Islands, you focus on that.
<unk> actually done.
Mattel has already established a momentum which is quite a bullish.
In 2021.
Well it was about 116% 160 prevent and generally the growth also achieved more than 100%. So we expect 2022 that <unk> will continue to take its been quite a robust growth as our chairman has said this will be or maybe.
<unk> accounted for 25% of the total passenger car in China.
Operator.
Thank you yeah no further questions at this time.
Operator, let's continue.
Sorry, there are no further question at this time.
Okay.
If not why.
Do you still have any follow up questions.
Yes, thank you everybody.
Having more questions.
<unk>.
I have a follow up question.
Is there any update on the Oh.
On the lease.
Peter.
And then we're done.
Just some more color on that thanks.
Thank you.
Tissue planes.
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Sure.
Yes.
Okay.
So as you can.
Hello.
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Even today.
Yeah.
But John and.
Josh.
The other things.
Johnson messages.
Do those deals on the.
Currently.
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And then read what he said.
Closer to them and say its weaker multimedia to tool up into the arena.
So Joseph neither goes on.
<unk> clinical magnitude those don't show that.
Thanks, and good timing to tie you block who will materially.
Suddenly jeez, when the tool up and building the puzzle.
Thank you.
Dealer lead product nationally our tour Shockwave, we continue.
Our relationship with the dealers in 2021, we already behind the strategy that the Aten Dolby vision and vessel the pipe keep has flat the VIP version and we raised the price by 20%.
And before that <unk>.
And as we create more value for the dealers, we want to empower them to enhance its operating efficiency and we also provide a lot of operating toolkit for the dealers as our chairman has pointed out we wanted to be a differentiator in the market.
So <unk>, so hopefully that puts us yeah hugely helpful that you sold in the foodservice.
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Michael Ben but close to <unk>.
The teams I mean sure it's always differentiate on sales on that once you are going to take.
Sure.
Well the authorization, we do not to raise the price because we won a wide because of the delays.
Ask your question.
What offer both capable of the alliance can make a choice.
They want to accept the VIP inflation, which is 20% more for good value and we also did a lot of campaigns and activities.
Power the dealers to enhance its operating.
First of all media efficiencies will depend on the women's.
Integral to shoot him I kind of <unk>.
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<unk> forgot <unk> Congress under the mean when this year.
With you soon.
In terms of renewal rates in terms of trying to one which is quite positive which is also beyond our expectations.
As for the other movies that we wanted to white cartridge, which will coverage is quite positive for the higher as I mentioned, we can see that it has good coverage as well so altogether.
The other is 80%.
The coverage under the renewal rate.
Yes.
Oh sure.
And.
Sure.
Several of our shops.
Okay.
So in summary, I want to say in 2022.
In terms of just three kingdom competition between the three major players, our Tulsa, where would it be the winner.
Thank you operator.
Thank you no further questions at this time I would kind of conference back to management for closing comments.
Gotcha.
In a way no merchandise charter.
It was up $4 million.
Gigi homes with attrition product Google Neil.
Okay.
<unk> chicken.
Everyone. Thank you very much for joining us today, we appreciate your support and look forward to updating you on our next quarter's conference call.
Time to time.
If you have any further partners please feel free to contact us.
Thank you everyone. Thank you bye.
Yes.
This concludes the conference call you May now disconnect your lines. Thank you.
Okay.
[music].
[music].
Ladies and gentlemen, thank you for standing by for Ultra high fourth quarter and full year 2021 earnings conference call.
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.
You have any objection you may disconnect at this time. It is now my pleasure to introduce your host Sterling. So alto homes IR director. Mr. Song. Please go ahead.
Thank you Hello, everyone.
Welcome to older homes, what's quarter on a full year 2021 earnings conference call.
Today, all the home distribution.
Our earnings press release, and you may find a cookie on the company's website at Www Dot auto home Dot Com dossier.
On today's call, we have chairman and Chief Executive Officer, Mr Channel.
President and Chief heightened Shaw, Chief Technology Officer, Mr Peoples, Vice President Julia.
As well as finance director Ms. Cynthia <unk>.
Our prepared remarks, our management team will be available to answer all your questions.
Before we begin please note that the discussion today will contain forward looking statements made under the safe Harbor per region.
U S Private Securities Litigation Reform Act of 90 95.
Forward looking statements are subject to risks and uncertainties that may cause actual results could differ materially from our current expectations.
Potential risks and uncertainties include but are not limited to those outlined in our public filings.
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 release in this call also include 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 measures.
It's available on auto home to have websites as a reminder.
This conference is being recorded in addition, a life on the archived webcast of this earnings conference call will also be available ultra homes IR website.
I will now turn the call over to Ultra Holmes, Chairman and CEO Mr. <unk>.
Please go ahead.
Oh sure.
Oh gosh.
Jim.
Thank you everyone Hello, everyone and thank you for joining us today and the earnings call.
Neil Union, Jim well I'm going to catch up she is a gentleman named me out here with Jim <unk>, Jim sell Fuji Gigi would tell you don't lose those tranches and G was changing.
Nathan Jones, Uhm Honeywell by country.
<unk> Ostomy.
<unk> is obviously you've got.
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And what time Tobey at all.
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Ginny Kelsen G renewed way five emphasizes would achieve Alex is that jumbo thinking 2022 what wasn't neither in euro year for all of us. Despite the challenging microenvironment. We are incredibly proud of all the homes relevant performance throughout the whole year has been ongoing Atlas.
To transform and upgrade business. We're also proud of the continued recognition we received from both the industry and our customers, including being listed as one of China's top 100 Internet companies for the ninth consecutive year runs from 'twenty and 2021 .
We delivered total revenue of RMB 724 billion for 'twenty, 'twenty, one or two weeks and a contribution from new business goes from 23, 2% in 2022, 39% of total revenue in 2021 with new business revenue growing by 11, 6% year over year.
Our adjusted net profit for the year was RMB 258 billion with our adjusted net margin maintaining a comparatively high level of 35 to one 7%.
Neil I E.
This woman chooses the godfathers and top tier two in Bahia that'd be out talking to banks finally, as homecare chooses the Johnson <unk> Johnson Baja titration dose.
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Joey you bundled pulses of Taiwan will tend to not sitting there while it's Andy Chien Ming Hua Ching answer is I'm not sure I'm following the C bench elevator feedback from Jita her choose us and not going to Chinese.
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So of course as I also needed to Jim Mead Johnson was Houston to that home sales pace will not be an email integral el Fuego Giovanni.
How the Hawaii bulk wine thoughtfulness, how Jesus <unk> synergy when my father and changing the GST changes.
2021 with these two significant milestones we achieved in middle of March or the halt of the SaaS will be listed on the Hong Kong stock exchange.
You're likely to have reached this milestone and have embarked on this new journey to increase <unk> exposure to Hong Kong capital market.
During our Investor day in September we unveiled our ecosystem strategy to bolster ultra homes integration with <unk> auto ecosystem, making our unique suite of full cycle auto ecosystem services as well as our leading AD platform accessible to an even broader base of <unk> and <unk>.
<unk>.
And OEM customers and other partners in the auto ecosystem.
In addition to maintaining our annual dividend payout of around 100% net income for the year, we launched a USD $200 million share repurchase program to reward shareholders for their long term support which represented our commitment to our strategic upgrades and the confidence in our future performance.
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So we continue to choose us as that uncertainty, Utah, Hi, Michael <unk> <unk> Saatchi art also changing so Julien here.
The challenges we faced over the past year with job to seek new opportunities and tap into new Arena. We're also seeing a robust momentum in our traditional business and preserving our preeminent position in the auto media vertical.
<unk> explored new business areas to build a solid foundation for our sick and the growth trajectory.
Yes customers, we remain focused on expanding video content as we are.
They're engaging content appealing to younger users.
As a growing diversified and high quality content library, we continue to expand our user base in December 2021, total funds recorded an all time high mobile <unk> up 11, 4% year over year for less demanding our leadership in the industry My robot.
Our strategic alliance with <unk> to expand the use cases that would benefit from our panic across the ecosystem.
In terms of our new businesses, our ongoing Atlas to engage and collaborate with an EV automakers led to increasing revenue from AEP breath.
More than doubled on a year over year basis.
Our digital dealer solutions also continue to achieve breakthrough in a data product adoption rate by dealer customer.
Evidenced by an increase of 18% year over year in the average number of beta products adopted by each dealer.
Additionally, leveraging our integration with TTP wire house matching and auction capability, we have reinforced our position in the used car market contributing to approximately 17% of old used passenger vehicle space in China.
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Next I will provide more details on several areas with regards to traffic. According to pass model, although homes mobile <unk> reached 46 9 million in December 2021, with a year over year increase of 11, 4%, surpassing the total value of the segment and Thats not.
As a player in the market combined.
In addition, according to <unk> data as of the end of Q4, 2021 auto homes APB penetration rates kept its number one position in the auto media Wesco and maintained its top of mind status as a preferred auto platform for meeting user needs for rebuilding Bayou and <unk>.
Using cost.
Notably the proportion of high end users with smartphones worth over RMB 5000 Yuan.
37%, probably beyond the industry average this.
User base with renewable time, Inc, and its strong purchasing power has helped the company to generate the most revenue between the total media political Meanwhile, building our alliance with <unk>.
We have eight new selection and in store visit patterns as bill had induce higher capex from <unk> and the vacation services, so quarter laying a solid foundation for sustainable growth.
So I'd say all male bonding your father slipping simple ship maintenance surgery, the Chongqing yield charge of <unk>.
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Regarding content, we're actively developing innovative content offerings, including short video live streaming and content for AEP centric online community to enhance our product power and reshape our economy strength with also per hour and heightened our resources to continuously eight.
Faster content and IP to increase user engagement and user stickiness ultimately, becoming the bill to auto vertical video platform the largest online auto vertical blood streaming platforms as well as the largest online.
Century political media.
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<unk> pioneered the older eighteens silver auto show novel, well known auto IP, which has successfully run for three consecutive years, an attractive countrywide attention. During 2021 August agency Auto show, we gathered more than 500 million visits drove over 90.
Million interactions and has generated over $15 5 billion in search results. This event truly demonstrated our ability to connect users Oems and dealers as well as our influence on the industry as we entered equally promote the industry development.
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During the November 2021 Formula Auto shows.
More innovative live streaming scenes with massive online shopping experience.
L plus dealer like training reached an outrage 500 live streamed per day with the increase in time spent by users a modest coring drilling and adding <unk> into action rates. The results were a patterns with dealer conversion rate greatly improved and total views reaching $700 million.
In addition to the Guangzhou Auto show Auto home health, a power of SaaS 2021 to provide that wasn't opportunities for <unk> and the youngsters innovation competition to wider auto homes brand awareness among the younger generation.
The exposure for both big events exceeded $100 million. Furthermore, during the year, we created the largest online auto owners manual library motorcycle module library and auto modification library.
Which along with our <unk> modification tools.
The user experience.
Permian shipment that TSA quarter exclusively Asia.
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Judy Hong is the chip deal.
Since the start of 2021 chip shortage on the raw material price hikes have greatly affected the auto industry and the cost reductions in automakers marketing budget. Nevertheless, auto homes traditional business remains stable firmly maintained its leading position as the number one in the <unk>.
<unk> media vertical.
Furthermore, we also launched this year and innovative or to add resource to solution model empowering Oems with our integrated one stop solution the expansion of our new business effectively reduced the downward pressure on our traditional business Amit the challenging environment.
Regarding our leads generation business, we have efficiently.
We feel our dealer customers needs through product upgrades and the differentiation. The annual these subscription package contract renewal process was better banks package with 88% renewal rate of our high end solution, including our premium and attack Washington.
According to analysis, China in 2021.
<unk> is an industry leader in terms of both sales volume and a deep connection right.
<unk> of the total.
AI, some <unk> CEO , John who need to reduce our <unk> Banca <unk>.
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We continue to work tirelessly to empower automakers digital transformation through our AI and <unk> applications we.
We have launched a series of new data products, such as private domain operations, and we add sales packages.
Regarding dealer digitalization, we have launched <unk> and smart QC to help dealers manage their performance recently.
In 2021, the average number of digital product purchased per dealer customer has increased by 18% year over year to three one.
59.
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But Joe you know safe harbor shipments that shifted to.
<unk>.
Aligned with the rapid growth the Navy market.
We have upgraded our e-commerce service to provide an all around solution to the EV companies from branding to advertisement in tracking our E. Commerce services helps them build brand visibility in gross sales.
Have collect collaborated with turn into mainstream ABB brand in 2021 with revenue generated from the <unk> business, increasing by 100, and a 28% year over year, capturing 60% of market share in the media vertical among mainstream emerging AEP.
The players.
In the future, we will continue to expand our <unk> business through content upgrade innovative panel and the use of operations to build the largest online media vertical and a trading platform while AAV.
So if I may.
Those are jobs tie thoughtful.
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Tom Hall.
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So the challenge either be kick in Bellevue.
For our used car business tycoon Shao President of <unk> home has become the chairman of TTP.
Although home has further expanded our business with deepening facility with GBP 89 integrated platform connecting information operations and trades.
The used car business is driving forward with our asset light and platform focused strategy.
As a result, Tdp's financial performance is consistently improving for used car buyer and a further we have developed a tremendous database of usage history.
Able to retrieve 98% coverage in car insurance Q3 at 80% and maintained in Q3, which also makes us the industry leader. Therefore, we're able to efficiently results buyers' concerns during used comp put it.
In addition, Martin with patient product enabled dealers to improve the quality of that lease and enhance lead to improved transaction efficiency.
Going forward all the homes used car business will continue to pursue our comprehensive sector strategy.
Is that Peter utilizing used car information and a dealer operating processes with.
We aim to consolidate our leadership as the largest online used car trading platform in China, providing standardized merchandise and the pilot process.
Charlie Cumulus shares on bromine choose us as Joss <unk> main roofing, our chief emphasis in that setting to Walgreens language Java Yosef.
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Hong Kong, Shanghai, and Beijing, one game named Jim King, a Pandora called charter coaching.
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Sharon will lead to a reduction in bookings.
We are fully integrated into the <unk> ultra ecosystem and leverage advantages to realize our unique presence in the auto industry with a wider as well as deeper scope of collaboration we will leverage <unk> launch offline team, which will provide us with this.
Team advantages compared with other internet companies.
Connecting with Peanuts massive was highlighted customer base and the over 140 million owners auto home partnership with <unk> aims to create the industry's first complete automotive ecosystem.
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<unk> re charter suddenly EMEA saw Huawei lag, while monthly GGP and so does the job of chartering things up.
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I see it on Youtube is likely to bring opportunities and one of the most new challenges looking ahead as we continue to uphold our value proposition with vigorous promotion our ecosystem strategic principle Mason, we are determined to pursue our mission to empower our.
Customers with top notch products and our services aiming to achieve long term sustainable growth at the same time will promote the comprehensive implementation of strategic upgrades through strategic investment in new business areas, bringing <unk> back on track to fast growth.
We are completely confident of the long term development of China's overall auto market as well as auto homes on billing growth in the future.
Okay.
China anytime Jonathan So we apologize GSR.
EMEA surgical attend name is high.
Thank you.
Yes.
With that I will now turn the call over to meet.
Our finance director.
Also look at our financial results for the fourth quarter and full year 2021 .
Thank you.
Now, let me walk you through the.
Financial.
And our full year 2013.
Please note that as with prior part I will reference RMB only in my presentation, unless otherwise stated net revenues for the fourth quarter were 1694.
A detailed breakdown media services revenue came in at $373 million lead generation services revenue was $778 million.
And online marketplace and others revenues were 543 million moving onto costs cost of revenue was $262 million compared to $268 million in the fourth quarter of 2020 gross margin was 85% in the fourth quarter compared to 89% in the same period.
Thanks Nicky.
Turning to operating expenses.
<unk> expenses in the fourth quarter were 803 million compared to 871 million a year ago that equates to what the primarily due to the decrease in promotional spending and a continuous hepatic control.
I think that development makes sense. It was 395 million compare to Q3 hundred 97 million in the fourth quarter of <unk>.
Finally, G&A expenses were $128 million compared to $71 million in the first quarter of 2020. The increase was primarily due to the consolidation of TTP.
Overall.
Operating profit of 177 million compared with $947 million funding keurig opportunity.
It does give a nice income.
The work to outcome, Inc was $470 million for the fourth quarter compared to 1190 $2 million in the corresponding period after tax.
non-GAAP basic and diluted earnings per share for the fourth quarter was <unk> 93, and <unk> 93, respectively compared to four 9% to four eight respectively in the portfolio right.
Now that the basis in fact dilutive to earnings for ABS for the fourth quarter was 371, and the $3 71, respectively compared to $9 95, and $9 nine one respectively in the first on <unk>.
Now Unlike me turning to a short summary of our 2021 full year results.
It'll revenue.
Kevin.
Before filling that need our services revenue is like to find here Wednesday.
This generation services revenue was $2 99 billion and online marketplace and others revenues increased by 11, 6% year over year to two 4 billion, primarily attributable to the consolidation of the TPP.
In addition, we delivered an adjusted net income attributable to ultimately Inc of $2 5 billion.
Excluding the noncash targets or non operating items.
As of December 31, 2021 of our balance sheet remains very strong with cash cash equivalents and short term investments of 27 3 billion. We've generated operating cash flow of 352 billion in 2021 on.
On November 18, 2021, our board of Directors has authorized a share repurchase program and then which we may repurchase up to 200 million U S. Dollar.
<unk> ABS for a period not to exceed the 12 plants thereafter as of February 22nd half 2022, we have repurchased for 430 to 1653.
Total cost of approximately $12 7 million lifestyle.
I'm also pleased to announce that our board has approved a cash dividend of <unk>.
Mainly they are applying to $5 three U S dollar per avs or it feels like one three to five in U S dollars for ordinary share.
Following these dividend payments will still have ample capital resources to invest in our business and further strengthen our leadership position going forward.
With that we're ready to fix our questions operator, please open the line okay.
We will now begin the question and answer session audio participants questions to pose please press <unk> one on your telephone keypad and you will be placed in the queue.
To cancel the queue. Please press <unk>.
Once again.
One on your telephone keypad.
Okay.
Our first question is Mr. Thomas Chong from Jefferies.
Please go ahead.
Okay.
On.
For taking my question.
Question on RV.
On the auto industry in the coming quarter.
And this is.
Okay.
Thank you.
Sure.
Yes.
Hello.
Yes.
Thank you.
Yeah.
Hi.
Hi, Jonathan.
Jonathan long trend.
Two days ago.
It's a mood Chen.
The Shanghai.
<unk> had a slow June so this is neil.
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Jessica.
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And then when you.
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Julian.
Gender Schinder, England.
Im sorry.
So the turns up Jonathan is our faith in that number.
You Wanna places that I can just shift gears.
<unk> is also shown on the chimney <unk> shown up John Powell.
Well I guess you saw.
I'm wondering is Guadalajara shouldn't you answer the suit Hudson O'neill Java, Bob Tom Nanda packages.
Absolutely.
Okay.
Well, thank you very much and we got to take the question and the chairman my.
My name is Laura Chen, we'll actually see the statistics from the passenger car Association.
Maybe in January of 2010 actually in 2020, the Chinese auto market.
Actually the growth of the whole market on the retail side would it be about 5% 5%.
For the new chip.
Therefore, the accumulated itself would be more than $5 5 million reached the market penetration rate can be 25%. The group's made after some of the NDP in China market would it be around 70%.
So mark I'm going to let Jonathan so going to <unk>.
Yes, John you are going enrollments Hussein <unk> Kim.
And then I'll finish up the chimney also Jonathan you Jim.
And.
<unk> talked about that you guys are trending year with NUPLAZID shouldn't listen year.
Almost all chime in on yield until you've only in Arizona.
Steve Tusa doesn't know somewhat broad.
Corridor for adults in Shandong.
Great.
The ones that you named and general aluminum Shandong yield Philadelphia. This was Asia placed onto that.
It doesn't alarm of hydropower cheaters, they made at the D. C area you got to deal with.
Now, let me talk about auto home, we have to keep that business. One is traditional business the second or would it be the new business now that still goes on the traditional business actually with the recovery of the Chinese auto market, we believe.
Our traditional business, what do we do them back to the normal track actually last year. The Chinese auto market was quite down. So that's why it is dragging down our traditional business.
Having said that I still want to say, we continue to be number one in the hotel vertical media market.
<unk> that's one.
She was a shutdown, but just the one that shows a autosomal chunky number to your point John <unk> genre.
In order to do so.
Meanwhile, you find that those acquired loans because shipping yet.
In terms of your kind of auto or Michigan was a good soil.
Keep in mind, so as adult T leather than Cheyenne Those'll number three.
Yes.
The job Jeff Good fiber does a number of key it sounds like Los Angeles with clients like Oscar the mazo kind of industrial and up one.
<unk> done enough to the kingdom.
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No mosaic chimney.
And now Mckinsey impact this is Jonathan Ho Chi Minh shares on the working capital somewhat <unk> to achieving the <unk>.
Okay.
Now, let's focus on the new business, we have three pillar industry for the New Zealand business. One is the digital like the product actually we believe in 2020 revenue. This piece when it gradually increased in terms of the contribution to the total revenue the second piece of it would it be the end.
Actually we had a collaboration with <unk> and <unk> brands in China, and I think it will continue to grow and contribute to the total revenue and this is a mess.
Would it be used car.
The Shanghai was named as the chairman of the PTP and he would be.
The strategic collaboration of TTP with auto home, which would also drive up to the revenue.
Operator.
Thank you.
Our next question, which is from from HSBC. Please go ahead.
Do you see any material.
Well.
Yeah.
Vega one detail.
You saw the monthly.
Oh sure sure.
Downhole, yes, but once you do start one more month.
Uh huh.
Yes.
<unk> showed a hiseq.
The way too.
Let me translate the questions myself. Thank you management for taking my questions two questions first.
2022.
On the used car market outlook second Nepal.
What is that what you've cockpits.
Goal one priority in 2022 is about.
Oh, it's about top line. Thank you.
A particular.
When people are ready to go.
We are agile.
What are you doing.
Alrighty RMB amount.
Blue Bar show.
<unk> please.
Tissue Berkshire Fig.
Vic.
Are being are in yen.
Third in terms of the fact that attach.
Our union.
Another auto to the charity of their stock.
Since initiatives that Archie.
Donna committed R&D in that.
Thank you Shea W Fox Chicago to the Archer Toyota says.
Certainly the chute how much input.
Higher than ideal society, Jay since will be there Bob.
Hi, <unk> this is Joe.
So Jean Michel.
New.
<unk> blocked whole Yahoo.
Chelsea to a good good tour Shang to Jim that Chip has unit without just demonstrated high tissue.
Well. Thank you for the question that's more of a used car market. We believe it will continue to grow actually in 'twenty two it will keep following market.
That used to come market have a few features which is slide 15.
The first is Cts is a pipe segmenting the market a lot of players and stakeholders. In this market was quite small there is no market leader on a monopoly player in this market.
The laptop track between the auto sales in the island would it be a major problem in the used car market.
Non.
So Jonathan jowers with robust tissue to die.
So you Jackie their pilot.
Well I mean, the fact actuarial you guys should here you're going to see.
Right.
Sure sure cautious.
Just with Eagle.
She Arctic.
So I think that Jean Jacques.
Ship, increasing lithium or.
<unk> core dog, but good job.
Joey.
Joe there too.
The other two of HIFU.
Joseph Thank actual.
Function, the fact that the CR goes.
Alrighty already in that orbit.
Arturo <unk> take up.
Particularly mitigate well connected there sure could year, one Jan and then go through.
Our tour Shonda.
John .
<unk>.
Sure.
Eating there.
We've got a tissue.
Are they R&D agenda seminal bookends.
I'm pleased to our used car business plus TTP, we do have a good strategy. We have we target based on the strategy. The first one is our growth of the recognition we can outpace the market happens secondly, we want to achieve.
Stephen based on the breakeven foundation, whereas now to further expand the transactions because to me the volume of the used car transaction, which would drive up the revenue.
Firstly for the 2022.
Im going to enhance the digital business and digital life business for the use of costs, which will be recognized by the dealer and the data was up the revenue.
Okay.
Thank you.
Thank you.
Thank you.
Our next question Henry Wang from CIC. Please go ahead.
My question got it thanks very much Stuart.
We're going to address.
This is Giovanni here it does yes.
We cannot do the trick of course congrats Jay.
Okay margins longer term should we be beyond that.
Thank you Brito.
Your question please.
Mr Hoh Jacob margins.
Okay.
Joe Thanks, Wil management for taking my question. So we can see some pressure on the operating margin this quarter and in Wyoming.
If we still have some ongoing investments.
Digital transformation, where we are conserving some cost control in the future and win.
The operating margin to improve Martin Thank you.
Whenever they decide to go in here.
We will maintain that already are in income for your partner program.
Doug I think our <unk> treasury.
We got closer to that it'll be all has a woman.
Can I keep trying to fit within the special Little Cafe.
Please for me.
No. They are they are.
And then final Keisha will make two again I think our core hotel, Pennsylvania.
Sure Glenn.
People Tonight got the final minutes sure no that's fine.
Let me I'll keep ethical.
Tony alcohol.
Alcohol at all countries, our core tax rate, but none of them are going towards a kind of a thing.
In the future.
To ensure continued with each quarter.
Continue with people from <unk>.
In the Cheyenne loyalty as a currency in the country mitigating factors should be read so many little room.
Well thank you.
The 2022 based on the outlook.
Also market in China, we believe the traditional auto market, what do we cut back.
We're bringing up our traditional business.
I'll need to be done we are going to increase the efficiency and also compare the operating cost and the unit play would achieve a more cost effective.
And secondly, we are going to invest more in innovation new business, especially.
<unk> business model and a new R&D for the CBB.
No I think the comment of how let's say stable on a final note.
<unk> here.
Towards the middle tier for the CFO .
Similarly, I think enables turbotax.
<unk> and <unk>, but I'm not really sure.
Our Europe region.
<unk> here.
Total body.
For the senior Julian who sell the S&P downhole.
Total care I know I sound like I'm talking like uncomfortable for renewables.
Okay.
Now I'd like to say side, we're going to bring more innovative product.
Paul the last streaming and at the end, we are going to establish Suvs, especially area to attract the young generation and attract new traffic and we're going to enhance the customer and user training and also to attract more young users.
Look I think our momentum.
Marketing R&D denominated will really be the key to katana now to download a triangle, we're talking I didn't calculate it.
It has to.
Total core types within he told me that for your total operating margin in retail engagement.
I kept home already are in yen figure Tushar I think Howard why not take a syndrome.
Since I'm with channel for you.
<unk> got operating with a margin of roughly two more brief without you and I think you've got on that.
Actually with more investments in the sales and marketing and R&D.
Let's focus on the efficiency of that investment.
Not that our operating margin in 2022.
We have the Chinese auto market, we believe that our margin can also be imposed.
Thank you.
Hey, Julien.
That's really funny.
Your line is now.
Kieran you go down to go Macquarie negotiate.
Thank God.
Yes.
Hello.
Gotcha.
Yes.
And there will be a kind of Q2 o'clock will now introduce Tony yes. Thank.
Thank you Michael tissue, what kind of Chicago.
Outlook.
Okay.
Akshay.
You guys have a constitution.
Sure.
Whether it's the financial or the fact that the tightening internally you could shoot.
You can pull conoco.
No.
Our union.
But our Kenya ship out <unk> evaluation.
That won't care about not only having a year for the target tissue box or Joe <unk> in Charlotte.
Third party revenue into that Joan Tong T. If you want on that kind of woman.
Alright.
And here's a shot gun kind of element of Shenandoah <unk>.
Jamaica, Bahar, Libya shut out a year.
And China with our cheap.
So the product <unk>.
We talked about back in Nashville.
Chip.
Now I want to focus on the nev actually.
Lasalle has already been established momentum, which is quite a bullish because in 2021.
Well it was about 116% one 6% in January the growth also achieved a more of a 100%. So we expect 2022 and <unk> will continue to take a swing quite a robust growth.
Our chairman has said we are already accounted for 25% of the total passenger car in China.
Okay.
Yes.
Operator.
Yes.
Thank you yeah no further questions at this time.
Okay.
Yeah.
Operator.
Thank you.
Sorry, there are no further questions at this time.
Okay.
No problem <unk>.
Do you have any follow up questions.
Yes, thank you everybody.
Have any more questions.
<unk>.
I had a follow up.
Question on <unk>.
Is there any update on the.
Hum.
On the on the lease.
Peter.
Okay. Thanks for that.
Just some more color on that.
Thank you.
75000 <unk>.
Sure.
Sure.
Yes.
Yes.
Okay.
So no issues here.
Oh, sorry.
Uh huh.
We can see the cities.
Yes.
But John and Josh.
Geography.
Nick Johnson messages.
Q2 also.
The trick with it too.
Yes.
Sure.
Yeah.
Leland liver tissue.
Turning to the women's side.
Immediate mutual up into the arena.
So Samsung neither just on the <unk>.
<unk> clinical magnitude doses on Florida.
Thanks, and good timing the timing for when the judge on the suddenly jeez when the tool up and building the puzzle.
Yes.
Thank you.
Dealer lead product nationally our turn Shockwave, we continue.
Our relationship with the dealers in 2021, and we await the design of the strategy that the Ottoman revision.
The price keeps us flat.
<unk> raised the price by 20%.
And for that <unk>.
And as we create more value for the dealers, we want to empower them to enhance its operating efficiency and we also provide a lot of operating toolkit for the dealers as our chairman has pointed out we wanted to be a differentiator in the market.
So in good financial team, so hopefully not present yet.
Forget Houston with the foodservice.
Although <unk> been there so long.
Yields a leader at Samsung <unk>.
<unk> <unk> <unk>.
So the teams I mean sure it's always different team on sales on that once you are going to take.
Sure.
Well the only version we do not to raise the price because we won a wide because of the delay.
These sessions we have.
With our current Roes capability allows us to make a choice.
They want to accept the VIP inflation, which is 20% more for good value and we also did a lot of campaigns and activities.
Power the dealers to enhance its operating.
Total EMEA and efficiencies that kind on the women's.
Integral to shoot C&I kind of women <unk> Shirley.
So there's some joseph.
And then the sundry other time being dual Mckinsey I look at those sort of open issues here in total you Chi.
<unk> go bump and forgot <unk> Congress under Devine will Miss here virtually you don't see with tissue.
Our cloud renewal rate in 2021, which is quite positive which is also beyond our expectation as for the ordinary medicine, we wanted to live coverage.
Coverage is quite positive and afford a higher version we can see that it has good coverage. So altogether is 88% of the coverage under the renewal rate.
Yes.
Sure.
Shannon Thanks.
Charlotte.
Okay.
Gotcha.
Yeah.
So in summary, I want to say in 2010.
Yeah me too.
The three kingdom competition between the three major players our Tulsa plant would it be the window.
Thank you operator.
Thank you no further questions at this time I'll return the conference back to management for closing comments.
Gotcha.
In a way no merchandise charter.
It was up 4 million <unk> homes.
The gene product Google.
Neil.
You heard Jean <unk> chicken.
Everyone. Thank you very much for joining us today, we appreciate your support and look forward to updating you on our next quarter conference call.
Time to time.
If you have any further partner please growth rate to contact us.
Thank you everyone. Thank you bye.
Yes.
This concludes the conference call you May now disconnect your lines. Thank you.