Q2 2023 Autohome Inc Earnings Call
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Ladies and gentlemen, thank you for standing by for auto homes second quarter, and interim 2023 earnings conference call.
At this time, all participants are in 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 objections you may disconnect at this time.
It is now my pleasure to introduce your host Sterling sell all the homes IR director Mr. <unk>. Please go ahead.
Thank you operator.
Everyone and welcome to auto home second quarter, and the interim 23 earnings conference call.
Today <unk> distributed its earnings press release, and you may find a copy on the call.
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On today's call, we have chairman and Chief Executive Officer, Shandong and Chief Financial Officer, Greg Yes.
After the prepared remarks, our management team will be available to answer your question.
Before we continue please note that the discussion today will contain forward looking statements made under the safe Harbor provision of the U S private securities.
Before 1995.
Forward looking statements are subject to risks and uncertainties.
That may cause actual results to differ materially from current.
Expectation.
Potential risks and uncertainties include but are not limited to the offline topic.
Body.
Securities and Exchange Commission and the stock exchange of Hong Kong Limited.
One of them doesn't undertake any obligation to update any forward looking statement, except as required under applicable law.
Please also note that auto home earnings press release, and this conference call.
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All non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures.
Available also from our websites as a reminder, this conference call is being recorded.
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An archived webcast of this earnings conference call will also be available at home.
Our website.
I will now turn the call over to auto home Chairman and CEO for opening remarks. Please go ahead.
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Hi, Joe.
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Thank you Sir Hello, everyone. These days that channel.
I'm, chairman and CEO of home Bancshares.
Thank you today for joining our earnings conference call.
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In the second quarter, our financial and operational results continue to recover steadily with a five 8% year over year increase in total revenue margin.
Martin what consecutive quarters of positive growth.
My market plays on the others revenue experienced strong growth of 24% compared to the same period last year, becoming the primary driver of our topline growth, notably GTP and data products, both delivered double digit year over year revenue growth and the revenue from AEP brand maintained it.
Robust growth momentum as revenue continued its patents in scale at all.
Only half our revenue, but our profitability has also significantly improved.
Adjusted net income attributable to auto home for the second quarter was up by 26% year over year and our adjusted net margin remained at a comparatively high level of 31, 1% an increase of three eight percentage points year over year.
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During the second quarter, we actively at the bank, our CN strategy, making steady progress across content optimization and business diversification, while expanding our traffic through multiple channels and our goal is to provide users with high quality content practical choose and exceptional service.
And that is hunting auto home brand recognition among users.
We unveiled our first auto home anticipate French Heike doerr, Idaho, marking the beginning of the new retail type model across the country.
Accelerating the apt.
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Oreo and promoting the digital upgrade and the Rexam integration a customer.
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In addition, our collaboration with Baidu Lodge language model has yielded remarkable result in both user and customer and product application, providing both cohort with more efficient services.
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Looking ahead as technology continues to develop new technologies eventually penetrate all aspects of the existing industrial chain automate taken advantage of the channels to transform technology into productivity introduced innovative business models and to use technology.
<unk> to drive the digital transformation of the automotive industry.
We are confident that with long term accumulation of cutting edge technology and growing brand advantages as well as our two comprehensive innovation incubator team.
Auto home is well positioned to see rising opportunities break new ground and ultimately achieve diversified business for us.
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With that I will now turn the call over to our CFO .
Take them for a closer look at our second quarter operating and financial results.
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In the second quarter, we continued to develop our content ecosystem and business innovation to capitalize on the two major industry trend of AEP and even Canada.
Further enrich our AAV themed content and activities to enhance our content offering while also introducing new business models and technologies to meet the average evolving needs of users and customers.
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Thereby diversifying our content portfolio as we strengthen and build our own platforms premium content. We're also expediting the development of a new media ecosystem, but we're adding content.
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According to quest mobile in June our mobile <unk> increased by 31, 7% year over year to reach 60 to 71 million demonstrating our continued leadership in the automotive media vertical.
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Making it easier than ever for consumers will find their ideal cars automakers also benefit from this innovative approach to fill it.
Offers a cost effective solution to the issue of single brand sales volume not being able to support the cost of store building on operation.
The space has been gaining traction with an increasing number of cooperative brand and a three D. Holographic modeling now powered more than 40 mainstream vehicle models.
Are there more we are seeing more and more automakers and the franchisees actively reaching out to out of home.
Interest in this model as additional analytic space for Intest doors are established in the second half of the year.
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Ultra home matching and options services are pretzel accounted for about 74.7% of all used transactions in China represents year over year growth of 2.1 per cent it costs.
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Overall auto home core business remained stable with strong growth across our new businesses with my significant progress in the development of new products and the model for the strengthening our leading position Nancy areas.
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Please stand by while we compile the Q&A roster.
Office question comes from the lineup Sheldon Jiang found C. I C. C. Please go ahead shelter.
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For the second half of the year would you believe that <unk>.
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Well, we believe that structure opportunities in this market.
In these two areas so fast would it be annual fee second would it be the used car.
The first one.
We would still be the focus of the market.
The Chinese passengers Association's latest data til the end of June .
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These emo teach site and also a lot of new car models get launch to the market would you believe that sounds transaction volume Oh. Thank you.
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In some of the channels. We also established a better ecosystem and the new media to create the depression had any new content.
Paul we have already for me to the matrix upper Wanna content to attract the traffic.
You too we do see that the new media could you be with a lot more.
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Yeah, <unk> a P P.
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Group of customers based on the content, we have a lot of new initiatives. For example, we found out that.
<unk> <unk> a lot of our customers based on the <unk> on the contents demand now more diverse.
<unk> <unk> with a traditional <unk> users.
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To establish a lot of a real time user data, especially on the back of your life insurance data to give the indicators and the index to our users.
Gotcha Gotcha.
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Thank you.
Next question comes from the line of Thomas Chance found Jefferys. Please go ahead Thomas.
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<unk> one moment <unk>. Thanks for taking my questions I have two questions. The first question is about.
First of all the <unk> and the strategies for 65 Ah. So your second question is about the use of trash, Okay management about Oh, Okay and.
Most of cash in the coming years. Thank you.
Yeah.
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<unk>, you'll want Joshua.
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Yeah.
Oh. Thank you for the question how did you hear about the the used car in a second Dakota <unk> would you see the domestic it used a <unk> by 21.3%.
To the China or the association's destination.
<unk> would it be expected to grow by 25 per cent. So we believe there is a great potential for the wall into grill and they used to come market.
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As we just mentioned about the T. T P actually the P. G. P. Together with there used to come out of those in the home in the second quarter, we accelerated the growth the T T P <unk>.
Half of these cases Avenue.
<unk> rapidly, which I would pay the industry average it also become one of the one of the new business drivers for the other homes business well from August of 2022 T. B P had to become profitable and profitability has been greatly enhanced for the first half of this year.
We believe that they used car business off of all of the home in 2020th suite, we can keep a good possibility.
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Have a business model already associated with a used car and then can you tell me your business.
And the retail stores were helping <unk> users, especially in the new car purchases to handle that used to <unk>, especially to simplify the training process something used your card and to solve the on transparency paying for Ya.
Selling the used car and at first I just need a new car. This election time cost with high et cetera. We also consolidated the resources with <unk>.
P G P and G B I T M E I Cook and also you'll be you'll be offline experienced stores. After we associate and also let me jump on all the resources.
Trying to trade more business synergy.
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Camry and that'd be a chair we will keep it to establish consolidated one stop solution ecosystem for the used car.
11, Jane on the one stop solution for buying and selling your cock plus 888, yes motto.
We are going to seize opportunity and they used to call business and enlarge our computer.
And also we want to weaken the growth of the used car business and keeping.
The industry.
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Now let me ask you a second question.
Actually we have bumped into cash with a <unk> in the phone and we already established that the dividend payouts plan behind by the 20th 22 ancestral quarter of this year comparing with the dividend payout of 2021.
Pay off the show up to understand you too <unk> goodbye eight percentage points. According to the cockpit B O D. They already approved for that starting from 2022.
Next to five yes every year, we would give <unk> payout no less than 500.
I have 100 million RMB, so we attach great importance to shareholders interest.
<unk> returned back to the shareholders and the sustainable way. We would also can see the other plans, which we can enhance the shareholders return.
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910 must have to share that back repurchase plan in this market will continue to carry out the two.
$200 million share buyback plan, we already made 140 million sure back in the in the future. We will continue to carry out this we purchased plan.
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And Meanwhile, we would also pay highly attention to other <unk> other businesses in the way of trying to create the shareholders.
Thank you.
Thank you next question comes from the line of Brian <unk> found C. T. Please go ahead Brian .
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Which is going to be a woman.
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<unk> for taking my question. Congratulations <unk> My question is regarding a products.
<unk>, we have $40 now and what have penetration for each product to our dealers Oh, yeah. Besides <unk> expects there to your amount of data <unk>.
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Thank you for the question talking about is the dealer business actually in the second quarter, we had more than 20000, <unk> pain pay the dealers and we have more than 10 product, which is quite a mature it's to help them, including the smart marketplace.
<unk> and the smart T inspection and intelligent assistance and a smart clouds telemarketing and it's smart cloud services, which covers the France and <unk> the whole process of the dealers we have to get into the end to end a pregnancy.
Information and try to enhance the conversion rate in many areas and this way, we are guiding and helping the tellers too.
<unk> <unk> the customers in this way, we help them to achieve lead management and she is a value to the customer.
Sounds great.
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Supposed to try not to use <unk> changing the Joseph two <unk>.
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And we also received a wonderful feedback uhm the dealers and we have a lot of high penetration rate for many products and our product <unk> or happy.
In addition to that based on the G. P. T model, we have launched at the New Division assistance tools. For example, the car selection assistance and upgrade your Bachelor models, which can help <unk>, it's decision, making process efficiency upgrading and a management.
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Alice.
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And I'll tell you about the <unk>.
During the Covid, we help to them to do a lot of online campaigns to replace its online <unk> for that.
Matos now post COVID-19 their demand has changed.
Also change our service model accordingly to better meet that demand.
[noise] alright, thank you.
We have now reached the end of the question and answer session. Thank you for all of your questions I'll now turn the conference back to management for closing comment.
Okay <unk>.
<unk> <unk> <unk> sorry.
Sorry <unk>.
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<unk> change it.
<unk>. Thank you for joining us today appreciate your support and look forward to update you on our next quarter's conference call you a few months time, so in the meal.
Please feel free to contact us if you have any further questions or comments. Thank you <unk>. Thank.
Thank you very much I robot. Thank you goodbye.
Thank you that concludes today's conference call. Thank you for participating you may now disconnect.
Mmm.
[music].