Q1 2024 Autohome Inc Earnings Call
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Operator: Ladies and gentlemen, thank you for standing by for Autohome's first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode.
Speaker Change: Ladies and gentlemen, thank you for standing by for auto homes first quarter 'twenty 'twenty four earnings conference call.
Operator: A question and answer session will follow management's prepared remarks. As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time.
Speaker Change: At this time all participants are in listen only mode. A question and answer session will follow management's prepared remarks.
Speaker Change: As a reminder, this conference call is being recorded if.
Speaker Change: If you have any objections you may disconnect at this time.
Operator: A live and archived webcast of this earnings conference call will also be available on Autohome's investor relations website. It is now my pleasure to introduce your host, Sterling Song, Autohome's IR director. Mr. Song, please go ahead.
Sterling: Live and archived webcast of this earnings conference call will also be available on auto homes IR website. It is now my pleasure to introduce your host Sterling. So auto homes IR director. Mr. Song. Please go ahead.
Sterling Song: Thank you. Thank you, operator. Hello, everyone.
Sterling Song: Thank you. Thank you operator, Hello, everyone and welcome to auto homes first quarter 'twenty 'twenty four earnings conference call.
Sterling Song: And welcome to Autohome's first quarter 2024 earnings conference call. Earlier today, Autohome distributed its earnings release, which can be found on the company's IR website at ir.autohome.com.ca. Joining me today on today's call are Chief Executive Officer Ms. Tao Wu and Chief Financial Officer Ms. Craig Yan Zeng. Management will go through their prepared remarks first, which will be followed by a Q&A session where they will be available to answer your questions. Before we continue, please know that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Education Reform Act of 1995
Speaker Change: Earlier today, although home distributed its earnings release, which can be found on the company's IR website at IR.
Speaker Change: I adopt auto home dotcom dossier.
Speaker Change: Joining me today on today's call are Chief Executive Officer, Amit Powell, our Chief Financial Officer, Ms quite yet.
Speaker Change: Management will go through their prepared remarks, which will be followed by a few hundred fashion, where they will be available to answer your questions.
Sterling Song: Forward-looking statements are subject to risks and uncertainty 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 filing with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. Autohome doesn't undertake any obligation to update any forward-looking statements except as required under applicable laws. Please also know that Autohome's earnings press list and this conference call includes discussion of certain unaudited non-GAAP financial measures.
Speaker Change: Before we continue please note that the discussion today will contain forward looking statements made under the safe Harbor provision of the U S products.
Speaker Change: Education with ballpark of 995.
Forward looking statements are subject to risks and uncertainties.
Speaker Change: It may cause actual results to differ materially from our current expectations.
Speaker Change: But that is a great partner.
Speaker Change: These include but not.
Speaker Change: Limited outlined in our public filings with the U S. The greatest change commission on the hunger that could change.
Speaker Change: The home button undertake any obligation to update any forward looking statement, except as required under applicable law.
Speaker Change: We also know that although home earnings press release, and this conference call includes discussion of certain unaudited non-GAAP financial matters a lot.
Speaker Change: Consolidation of the non-GAAP measures to the most directly comparable GAAP measures can be fun earnings release.
Sterling Song: A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. I will now turn the call over to Autohome CEO Ms. Tao Wu for opening remarks. Please go ahead, Ms. Tao.
Speaker Change: I'll now turn the call over to auto homes, the old meet Hull for opening remarks. Please go ahead.
Tao Wu: Thank you, Zeng. Hello everyone, I am the CEO of Autohome, Wu Tao.. Thank you, Sterling. Hello, everyone.
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Tao Wu: This is Tao Wu, CEO of Autohome. Thank you for joining our conference call today. I am very happy to report to you that the performance of the first quarter of Autohome has shown a sharp decline, and the total revenue has reached RMB16.1 billion. 4.9% Online marketing and other business income continues to achieve double-digit, 13% growth. 34.5% , Over 10% growth in the same period of 2-3 years. New energy business continues to grow strongly.
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Speaker Change: Thank you Oh, sorry, Hello, everyone. This is Powell CEO of Ultra Hall. Thank you for joining our earnings conference call today.
Tao Wu: The revenue has increased by 49.6%. In terms of profit, the net profit of the first quarter is RMB4.94 billion, which is the net profit adjusted by Autohome Inc. The overall score is 2.2%. By adjusting the net profit rate to 30.7%, it continues to stabilize at a higher level.
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Tao Wu: I'm pleased to report a solid start to the year, with total revenues growing by 4.9% year-over-year to 1.61 billion RMB. Revenues from the online marketplace and others continue to achieve double-digit growth, increasing by 13% year-over-year, rising to 34.5% of total revenues. Notably, we continue to see strong growth in revenues from our data products, which increased over 10% in the quarter from a year earlier, driven primarily by our smart series products. We also saw robust growth in our NEV business, with revenues for the quarter increasing by 49.6% year-over-year. Adjusted net income attributable to Autohome was up 2.2% year-over-year to 494 million RMB, while our adjusted net profit margin remained at a relatively high level of 30.7%.
Speaker Change: I'm pleased to report a solid start to the year.
Speaker Change: Total revenues growing by four 9% year over year to $1 61 billion RMB revenue from the online marketplace and others continue to achieve double digit growth increasing by 7% year over year rising to 34, 5% of total revenues.
Speaker Change: Really what continues with the strong growth in revenues from our data products, which increased over 10% in the quarter from a year earlier.
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Speaker Change: We also saw robust growth.
Speaker Change: Business with revenues for the quarter, increasing by 49, 6% year over year.
Speaker Change: Adjusted net income attributable to auto home for the quarter was up two 2% year over year to 494 million RMB, while adjusted net profit margin remained at a relatively high level of 31, 7%.
Speaker Change: For the year.
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Tao Wu: [inaudible] Our influence has gradually penetrated a wider area of car consumption to promote the integrated development of home-based business online and offline. We have also further strengthened our relationship with Ping An Group so that consumers can enjoy a more reassuring, satisfying, and convenient car service experience. ,, , for our innovative business.
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Weizmann: For our automotive business.
Tao Wu: As new franchise stores are on track to open, our Autohome space will expand further into a broader geographic area, driving the development of our online and offline integration. We will also further strengthen our collaboration with Ping An Group by providing consumers with greater peace of mind and a more convenient user experience. In addition, we actively responded to the national Trade-in-for-New policy, launching a series of initiatives such as the 100 Cities Trade-in-for-New-Car-Buying Festival in collaboration with Ping An Group, allowing consumers to enjoy even more benefits.
Weizmann: As Nielsen type doors are on track to open our old home space expand further into a broader geographic area driving the development of our online and offline integration. We also further strengthened our collaboration with Penang Gould.
Weizmann: Providing consumers with greater peace of mind, and a more convenient user experience.
Weizmann: In addition, we actively responded to the national tricky in for New policy launching a series of initiatives such as the 100 cities treatment for new car buying festival in collaboration with Ping, an group, allowing consumers to enjoy even more benefit.
Tao Wu: In the future, we will continue to maintain a professional spirit and continue to promote innovation to satisfy the needs of users and customers with better and more convenient products and services. At the same time, we will continue to work hard to improve and optimize the overall business structure of the company to ensure sustainable development in both traditional and new fields.
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Tao Wu: We will also make full use of all kinds of unique advantages and resources of Ping'an Group to actively promote the deep cooperation between the two sides in the field of car ecology, big data, car owners' joint operations, user rights, and sharing in many aspects of business, seeking opportunities for co-development, and striving for more business cooperation. Looking forward, we are committed to maintaining our professionalism and expertise while driving continuous innovation and offering even more convenient and high-quality products and professional services to our users and clients. Meanwhile, we will continue to refine, improve, and optimize our overall business framework to ensure sustainable development in both traditional and emerging sectors.
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Speaker Change: Looking forward, we are committed to maintaining our professionalism and expertise, we're driving continuous innovation and offering even more convenient and the high quality products and professional services. So our users and clients. Meanwhile, we are continuing to refine improve and optimize our overall.
Speaker Change: Business framework to ensure a sustainable development in both traditional and emerging sectors. Additionally.
Sterling Song: Additionally, we will fully leverage the Ping An Group's vast resources to explore and develop opportunities in various areas, including automotive ecosystems, big data, cooperative ownership services, and user benefits. Together, we will develop even greater synergies and push forward with new business initiatives. Next, let's welcome CFO Zeng Yan to give a detailed introduction to ZYF's first quarter of 2020 business and financial statements. With that, I will now turn the call over to our CFO, Grant Zeng, for a closer look at our first quarter 2024 operating and financial results. Thank you, Ritchie Sun.
Speaker Change: Additionally, we have fully leveraged <unk> vast resources towards sport and develop opportunities in various areas, including automotive ecosystem. This data cooperative ownership services and a user benefit.
Speaker Change: Together, we have developed even greater.
Speaker Change: And push forward with new business initiatives.
Speaker Change: It's actually Jeff Olson.
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Jeff: Also in the Eagle.
Jeff: With that I will now turn the call over to our CFO Gregg.
Gregg: For a closer look at our first quarter 2024, operating and financial results.
Craig Yan Zeng: Hello everyone, I am Zeng Nian, Chief Financial Officer of Autohome Inc. Thank you, Ms. Wu.
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Craig Yan Zeng: I'm Craig Zeng, the Chief Financial Officer of Autohome. In the first quarter, we continue to focus on high-quality content, tools, and high-quality services. [inaudible] In March, we are looking forward to the popularity of the new model. [inaudible],, has gained a good reputation among users and customers. The entire website has been accessed more than 500 million times.
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Craig Yan Zeng: Xiaodan Zhang, Autohome Inc. In the first quarter, we continue to focus on developing high-quality content, practical tools, and premium services to enhance Autohome's brand influence. In March, amid a flurry of new car launches, we introduced our original IP content, SoFastSoTest, forecasting on eight major online platforms. By offering comprehensive real-world testing and in-depth analysis of the latest models, we provided a fresh content experience that has received widespread positive feedback from both users and clients.
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Speaker Change: In the fourth quarter, we continue to focus on developing high quality content.
Speaker Change: They can choose on the premium services to enhance all the homes brand influence.
Speaker Change: March amid a flurry of new car launches, we introduced our original IP.
Speaker Change: IP content, so fossil test for coffee.
Speaker Change: Eight major online platform by offering comprehensive real world testing and the in depth analysis of the latest model. We provided a fresh content experience that has received widespread positive feedbacks from both users and clients.
Craig Yan Zeng: This new content tallies more than 500 million exposures across all platforms, significantly enhancing Autohome's influence. In addition, there are frequent fluctuations in vehicle prices. We also launched a price-to-market tool and a price-to-price tool.?? The latter has further enriched the vehicle comparison degree, improving the comparison efficiency, making the user's purchase decision-making process more efficient and convenient. [inaudible] Autohome Inc. had 6,939 daily users in March and has grown by 8.3% in just 23 years.
Probably more than 500 million exposures across all platforms.
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Craig Yan Zeng: In addition, in response to escalating price competition and frequent fluctuations in vehicle pricing, we introduced a number of innovative tools, including a price trend tracker and a comprehensive model comparison tool. The former enables users to intuitively see pricing trends, while the latter provides enhanced, detailed comparisons to improve the comparison and decision-making process. According to QuestMobile, average mobile DAUs reached 69.39 million in March, an increase of 8.1% from a year earlier, which clearly demonstrates the effectiveness of our content-focused strategy for user growth.
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Speaker Change: Greece up eight 1% from a year earlier, which clearly demonstrate the effectiveness of our content focused strategy for user growth.
Craig Yan Zeng: Team Zeng, Xiaodan Zhang, Brian Gong, Sterling Song, Yan Zeng, Ritchie Sun, Xiaodan Zhang, Autohome Inc. Team Zeng, Xiaodan Zhang, Brian Gong, Sterling Song, Yan Zeng, Ritchie Sun, Xiaodan Zhang, The space station under the car has made significant progress in the layout. Not only does it cover the first and core cities of North, Shang, Guang, Chongqing, Chengdu, etc., but it also covers Kunming, Guiyang, Jinan and other important second-tier provinces, and further down to Leshan, Zhaoxing, Qingyuan, etc., to cover a wide range of cities. In the first quarter, we also authorized the jia nongsha of nine cities.
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Craig Yan Zeng: These cities' joint ventures will be launched within the next 24 years. This will greatly promote the expansion of our new energy vehicle service ecosystem to low-end cities. We believe that with the gradual opening of more Jiameng stores, our services will attract a wider range of customers and more layers of users. Turning to NEV, the Autohome space continues to make significant progress.
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Gianluca: For the quarter.
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Gianluca: Yes.
Gianluca: Turning to AAV, Oklahoma State continues to make significant progress also on the space is not only threaten in major cities, including Beijing, Shanghai, Guangzhou Chongqing Chengdu, but has also expanded into key second tier provincial capital cities, including Kunming.
Craig Yan Zeng: Autohome space is not only present in major cities, including Beijing, Shanghai, Guangzhou, Chongqing, and Chengdu, but has also expanded into key second-tier provincial capital cities, including Kunming, Guiyang, and Jinan, etc., as well as promising third- and fourth-tier cities like Leshan, Zhaoqing, and Qingyuan, etc., reaching broad market coverage. During the quarter, we also granted franchise drives to partners in nine additional cities where stores are on track to open later this year. This expansion will significantly enhance the presence and reach of our AEV services geographically, expanding our reach to additional users.
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Craig Yan Zeng: On the other hand, as an effective platform for marketing services, [inaudible] We will make full use of these advantages to provide a one-stop integration marketing solution for mobile phones. At present, our 3D all-wheel drive model covers more than 80 major new energy vehicles in the market.
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Craig Yan Zeng: In Season 1, our new retail business has more than 30 cooperating brands. New cars are on the market, test-driving, test-driving, comparison test-driving, and other marketing activities. In addition, the revenue from new energy brands in the first quarter of this year has increased by 49.6%, and the sales volume of the running industry has continued to increase. Our Autohome space stores also function as an effective marketing platform equipped with substantial online and offline resources as well as advanced digital capabilities. Leveraging these advantages, we can provide OEMs with integrated one-stop marketing solutions. Currently, our 3D holographic car models cover more than 80 mainstream NEB models in the market.
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Speaker Change: Leveraging these advantages we can provide Oems with integrated one stop marketing solutions.
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Craig Yan Zeng: In the first quarter, our new retail business collaborated with more than 30 brands, launching over 100 marketing events, including new car launches, test drives, and driving comparisons. Revenues from NEB brands in the first quarter this year increased by 49.6% from the previous year, consistently outpacing industry growth rates. In the field of digitalization, we continue to strive to promote the deep application and landing of large-language models.
Speaker Change: The first quarter, our new retail business collaborates with more than 70 brands launching over 100 marketing events, including new car launches capitalized and driving comparison revenues from ABB brand in the first quarter. This year increased by 49, 6% from a year earlier consistently.
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Craig Yan Zeng: We have gradually replaced the original strategy-based conversation robots with car-industry-customized big-league models that use AI outsourcing, service dialogue, marketing content, production, creation, etc. This measure not only optimizes product performance but also helps us effectively expand the range of coverage of merchants. The first record is that the number of digitized retailers and partners has continued to increase. The number of retailers and data products has increased by 20% at the same time. For digital products, we are committed to applying large language models, or LLM, more widely across our business. We are gradually replacing existing strategy-based chatbots with customized LLM that are tailored to the automotive industry.
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Speaker Change: For digital products, we are committed to applying large language models or al.
Speaker Change: More widely across our business, we are rapidly replacing existing strategy based chat box with copper mine.
Speaker Change: That are tailored to the automotive industry.
Craig Yan Zeng: These LLMs are now being used for AI outbound calls, customer services, and the creation of marketing content, significantly enhancing the quality and efficiency of our existing data products. This initiative not only refines our product performance but also expands the coverage of our clients. In the first quarter, the number of dealers that purchased our data products continued to increase, driving revenue growth of 27% year-over-year for our dealer data products. We are also applying our digitalization capabilities to the second-hand car sector to create a transparent and reliable consumer environment.
Speaker Change: And now being used for AI outbound core customer services and the creation of marketing content.
Speaker Change: He doesn't really enhancing the quality and efficiency of our existing data products.
Speaker Change: Initiative, not only refined our product performance, but all the patents the coverage of our clients.
Speaker Change: Last quarter the number of dealers that are bigger product continued to increase driving revenue growth of 27% year over year for either data products.
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Craig Yan Zeng: For example, we provide car mining comprehensive search tools to help users restore real car mines and select high-quality car owners. Cool, cool cool. We provide a series of tools such as parking lots, parking garages, and digital marketing to effectively help businesses improve their operating efficiency.
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Craig Yan Zeng: WikiLeaks, Our Yizhai is a vehicle inspection platform Chade 80% to show the second-hand car dealers' recognition of their professionalism. We have also applied our digital capabilities to the used car business, creating a transparent and trustworthy buying environment. For instance, for consumers, we provide a comprehensive set of tools to verify true vehicle conditions to help buyers accurately assess a vehicle and select quality car options.
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Craig Yan Zeng: For dealerships, we offer a broad range of tools, including price and vehicle condition checks, as well as digital marketing solutions to help them improve operational efficiency. In the first quarter, the number of dealerships that queried our one-stop vehicle condition and pricing platform saw a year-over-year increase of more than 80%, reflecting their recognition of Autohome's expertise. All in all, Autohome Inc. has a stable business development. [inaudible] Digitalization and new energy business development [inaudible] At the same time, the new business model is also constantly upgrading and modernizing, quickly copying and contributing to revenue, further optimizing the overall income structure of the company. In the future, we will continue to explore the field of new business and use the unique resource advantage of Ping'an Group to explore more business cooperation opportunities to promote the company's continued healthy development.
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Speaker Change: First quarter, the number of dealerships, but clear at our one stop vehicle condition and pricing platform saw year over year inquiry of more than 80% the flattened dealerships recognition of auto hub expertise.
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Craig Yan Zeng: In summary, Autohome achieved steady growth in revenue and profit in the first quarter of this year, driven by the rapid development of our digital products and the NEV business. Additionally, the introduction, replication, and interactive updates to our new innovative business models are increasingly contributing to, diversifying, and optimizing our revenue mix. Looking ahead, we will continue to explore new businesses, leverage Ping An Group's unique advantages, discover new opportunities to collaborate, and promote the sustained and healthy development of Autohome.
Neil: In summary, although how much sheet steady growth in revenue and profit in the first quarter.
Neil: Driven by the rapid development of our digital products and the <unk> businesses.
Neil: Additionally, the introduction replication and the insert.
Neil: Can you update some of our new innovative business models.
Neil: Increasingly contributing diversifying and optimizing our revenue mix.
Neil: Looking ahead, we are continuing to explore new businesses leveraging on group's unique advantages discover new opportunities to collaborate and promote such as pain and a healthy development of Ultra Hall.
Craig Yan Zeng: Next, I will tell you about the main financial situation of Autohome in the first quarter of 2024. Please note that I will only use RMB as a currency unit in today's discussion unless there is another explanation. Next, let me briefly walk you through the key financials for the fourth quarter of 2024. Please note that, as with previous courses, our references are only to my discussion today, unless otherwise stated. The total revenue for the first quarter was 16.1 billion yuan.
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Neil: Next let me briefly walk you through the key financials for the fourth quarter of 2804. Please note that as with prior calls I will reference RMB only in my discussion today.
Neil: Unless otherwise stated.
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Craig Yan Zeng: Specifically, the revenue of media services is 3.27 billion yuan, the revenue of online services is 7.26 billion yuan, and the revenue of online marketing and other services is 5.55 billion yuan, a 13% increase. Net revenues for the first quarter were $1.61 billion, breaking it down by segment.
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Neil: Absolutely.
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Neil: Net revenues for the fourth quarter were $1 61 billion breaking it down by segment Media services revenue was 327 million leads generation services revenue was $726 million and online marketplace and others revenues were $555 million.
Craig Yan Zeng: Media services revenues were $327 million, leads generation services revenues were $726 million, and online marketplace and others revenues were $555 million, up 13% year-over-year. In terms of cost, in the first quarter, the operating cost was 3.01 billion yuan, and the year-on-year inflation was 3.4 billion yuan. In the first quarter, the gross profit margin was 81.3%.
Neil: Up 17% year over year.
Neil: Most of them in <unk>.
Neil: John any consideration this year.
Neil: Digital multi use a pattern yet.
Neil: Sure.
John: Sure, Matt its Tom intensive a 510.
Craig Yan Zeng: 77.8% Cost of revenue in the first quarter was $301 million compared to $340 million in the first quarter of 2023. Growth margin in the first quarter was 81.3% compared to 77.8% during the same period last year. In terms of business costs, the first quarter sales and market costs were 6.41 billion yuan, and the year-on-year inflation was 5.23 billion yuan, and the year-on-year inflation was 3.36 billion yuan, and the year-on-year inflation was 3.24 billion yuan.
John: Cost of revenue in the fourth quarter was $301 million compared to 340 million in the fourth quarter of 2023 gross margin in the first quarter was 81, 3% compared to 77, 8% during the same period last year.
Speaker Change: Yes pardon me.
Speaker Change: Easy to Chaco decision.
Speaker Change: No there so EUR Charley until today.
Speaker Change: Yes, I think somebody asked earlier, Charlie and quality based on the hours per year.
Craig Yan Zeng: The general management fee is 1.5 billion yuan, and the annual fee is 1.49 billion yuan. Turning to operating expenses, sales and marketing expenses in the first quarter were $641 million compared to $523 million in the first quarter of 2020; product and development expenses were $336 million compared to $324 million in the first quarter of 2023. Finally, general and administrative expenses were $150 million, compared to $149 million during the same period last year.
Speaker Change: We think people will say Oh, yes, sorry.
Speaker Change: Yes.
Speaker Change: Turning to operating expenses sales and marketing expenses in the fourth quarter was 600, and plus $1 million compared to 523 meeting the first quarter of 193 product and development expenses were $336 million compared to 324 million.
Speaker Change: Fourth quarter of 193, finally general and administrative expenses were $150 million compared to $100 9 million during the same period last year.
Craig Yan Zeng: In total, the gross profit of the first quarter of the car market is 2.76 billion yuan, and the total value is 2.63 billion yuan. The adjusted profit of Autohome Inc. is 49.4 billion yuan, and the annual revenue is 4.8 billion yuan. Overall, we delivered an operating profit of $276 million in Q1, compared to $263 million in the corresponding period of 2023. Adjusted net income attributable to Autohome was $494 million in Q1, compared to $484 million in the corresponding period of 2023. In the first quarter, the adjusted basics and Hamburg's U.S. stock interest rate were 1.02 yuan, and the year-on-year interest rate was 0.98 yuan.
Speaker Change: I guess, just as easy to nearly renovated audience Hello, yes, sorry.
Speaker Change: Okay.
Speaker Change: Racial usage altogether in cargo.
Speaker Change: Wait for the ACO full year, Tommy wholesale parts of the year.
Speaker Change: Overall, we delivered operating profit of 276 minutes in the fourth quarter compared with $263 million in the corresponding period of Huntington history. Adjusted net income attributable to auto home was 494 minutes in the first quarter.
Speaker Change: <unk> compared to $484 million in the corresponding period of 'twenty three.
Speaker Change: Easy to gain Calvin EBIT.
Speaker Change: A couple of major until the U S.
Speaker Change: Yes, they are.
Speaker Change: Tommy <unk> media device.
Speaker Change: Easy to each other and people become more amazing.
Craig Yan Zeng: [inaudible] The net profit of the U.S. stock market is 4.08 yuan and 4.07 yuan, respectively. 3.923.91, Non-GAAP basic and diluted earnings per share in the first quarter were 1.02, up from 0.98 in the corresponding period of 2023. Non-GAAP basic and diluted earnings per ABS in the first quarter were 4.08 and 4.07, respectively, compared to 3.92 and 3.91, respectively, in the corresponding period of 2023.
Speaker Change: <unk> biomedical for them this year.
Speaker Change: Yes.
Speaker Change: We have a validation of our yet validated yet.
Speaker Change: non-GAAP basic and diluted earnings per share in the first quarter, one zero to up from zero point 98 in the corresponding period of 123, non-GAAP basic and diluted earnings per ads in the first quarter were 4.0.
Speaker Change: And the fourth one they're seven respectively compared to $3 92, and three one months one is activity in the <unk> in the corresponding period of 'twenty three.
Craig Yan Zeng: ??2024?3?31?,??????????????? The total amount is 236.5 billion yuan. As of March 31st, 2024, our balance sheet remained very strong with cash. Cash equivalent and short-term investment of $23.65 billion. We generated net operating cash flow of $561 million in the first quarter of 2024.
Speaker Change: Alrighty.
Speaker Change: Thank you for that.
Speaker Change: So if you've got any Kathy ta.
Speaker Change: <unk> got good hopefully motivate our best.
Speaker Change: Yes.
Speaker Change: Affiliates either accuracy.
Speaker Change: Okay.
Speaker Change: As of March 30.
Speaker Change: Huntington before our balance sheet remains very strong with cash cash equivalents and short term investments of $103 65 billion, which generated net operating cash flow of $561 million in the first quarter of 'twenty 'twenty four.
Speaker Change: With both of our powerful disposal.
Craig Yan Zeng: ,. The above is our financial summary. With that, now we are ready to open up the Q&A session. Please open the line for the Q&A session. Thank you.
Speaker Change: Sure.
Speaker Change: The above is our financial summary does that now we are ready to open up the Q&A session operator.
Speaker Change: Please open the line for the Q&A session.
Operator: We will now begin the question and answer session. To ask a question, please press star 1 1 on your telephone keypad. You will then hear an automated message advising that your hand is raised.
Speaker Change: Thank you we will now begin the question and answer session.
Speaker Change: To ask a question. Please press star one one on your telephone keypad.
Speaker Change: You wouldn't hear an automated message advising yohan is raised.
Operator: To withdraw your question, please press star 11 again. Our first question comes from the line of Brian Gong from CT. Brian, please proceed with your question. Thank you for accepting my question. I have two questions.
Speaker Change: Withdraw your question. Please press star one one again.
Speaker Change: Our first question comes from the line of Brian Gong from Citi.
Brian Gong: Please proceed with your question.
Brian Gong: Oh <expletive>.
Brian Gong: Cornerstone just Q1.
Brian Gong: The first one is that the government has recently introduced some policies related to the automotive industry. I don't know what the management team thinks about these policies. What impact will they have on domestic testing? What specific actions will Zhijia take to deal with them?
Brian Gong: <unk>.
Brian Gong: Can you just sort of just drilling what's giants with Alisha Cheetah <unk>.
Brian Gong: Nature should make you Michelle.
Brian Gong: So Joe from a twitching the Shandong.
Brian Gong: The second question is about data products. Data products from retailers have grown quite well in the past few quarters. What do you think about the future growth of data products from retailers? I will translate it for you.
Speaker Change: Okay. Once you shouldn't while you check.
Speaker Change: Thompson.
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Speaker Change: Q2 receivables going down the <unk> marine industrial and converge.
Speaker Change: Can you talk sounds pretty chunky Jim.
Speaker Change: What did you find as such.
Speaker Change: Thanks management for taking my question I have two questions first is regarding <unk>.
Speaker Change: The policy rollout buying so garments recently commencement share your view.
Tao Wu: Can management share their view on how the policy impacts the auto market in China and what measures Autohome will take to accommodate those policies? And the second question is regarding our data products for dealers, which have been a key growth driver for the company over the past several quarters. How should we look at the growth potentials for the segment in the future? Thank you.
Speaker Change: All of these how the policy impacts the auto market in China, and what measures auto home for all it takes to counter those policies and the second question is regarding our data products for dealers, which has being a key growth driver for the company or process several quarters.
Speaker Change: Should we look at the growth potential is for the settlements near future. Thank you.
Speaker Change: Yes.
Speaker Change: I didn't catch you up into the ability Lala Vita CEO Wendy.
Tao Wu: I will answer the first question. Okay, thank you for raising these questions. Thank you for raising the two questions at the Utah Rotary Festival. I think the policy you just mentioned is related to the automobile industry. It should be the announcement of a large-scale equipment update and consumer goods renewal action plan issued by the State Council in March this year and by the Ministry of Commerce, Ministry of Finance, and Ministry of Infrastructure in April. , These two notices clearly state that our car will be replaced by a new subsidy policy. They also clearly state the scope and standards of the subsidy.
Speaker Change: Okay. Thank you for asking this question is related to your question. Please start with tablets at the festival.
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Tao Wu: It should be said that the policy will be strengthened, to guide and support Lidu, because Lidu is still very big and can make consumers better. ?????????????,??????????????????? I think this policy is very clear, simply put, you just change your heart here, so that our New Year's car can normally support a 9000-yuan car. ???????, So it should be said that this is a passenger car, you can be assured that it is really a very good??, Okay, I think that the two policies you mentioned are actually the Notice on Action Plan to Promote Large-Scale Equipment Renewal and Consumer Goods Trading Issues by the State Council in March of this year, and the other one is the Notice on Implementation Routes for Automobile Trading Subsidies issued by the Ministry of Commons and the other seven departments in April.
Speaker Change: I think that will to Paula to answer most of them are actually in the medical action plan to commence last fall.
Paula: Thank you Jim.
Speaker Change: This training.
Speaker Change: Okay.
Speaker Change: And the <unk> market.
Speaker Change: For ultimately trading equity issued by the Ministry of Commerce.
Tao Wu: These two notices relate to the policy of capital subsidies for automotive trade-ins, further clarifying the scope and standards of the subsidies, and also allow consumers to better participate in auto trading activities by increasing policy guidance and support. Therefore, promoting the trading of cars and other consumer goods has become the focus of demand-to-consumption promotion this year. So I do believe that it will further promote. What is the impact of Zeng's policy on our domestic market? As far as I remember, there are still some changes in the domestic test.
Speaker Change: Unemployment Department.
Speaker Change: Thank you Marco.
Speaker Change: Our fourth capital subsidies for asthma.
Speaker Change: Okay.
Speaker Change: And finally clients both on form during the facility also allows consumers tomorrow.
Speaker Change: And also trading activity thanks, Chris on the policy side.
Speaker Change: Corporate promote mobile trading of Arctic consume that data are.
Speaker Change: Our performance.
Speaker Change: In terms of promotion this year.
Speaker Change: As to the policy.
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Tao Wu: So I was wondering if this was affected by the policy. There may be some direct and indirect policies. But I will talk about some changes in the test in three aspects. So after the policy was issued, what will be the impact on the auto market? I think that in Q1, with the release of the two notices, there are several characteristics happening in the auto market. There's some direct as well as indirect impact.
Speaker Change: So I'll sort of talk to us <unk> what were they in.
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Speaker Change: That's one of the characters.
Sue: On the Alco months, so thanks Tom.
Tao Wu: So next, I would like to elaborate on this topic from three aspects. First of all, in terms of sales, according to data released by the City Council, in 2024, the number of car sales in China recovered, and retail sales increased by 13.1%. This is mainly due to the reduction in the price of our two cars and the addition of some sales activities in various places, which has accelerated the purchase demand in this part. As the car show in Beijing in April started, manufacturers started to make an impact.
Tom: Thanks, Eric.
Speaker Change: Next I would like to elaborate on the top line from this the add backs.
Tom: So they'll listen Shanghai Com.
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Tom: So, let's open the call to Ashish and the shops with us.
ashish: So these are the CFM pay interest actor, Jamie that's all kind of good chance how much that has a body.
Tao Wu: New brands and new models were launched one after another. In other words, the attention of the car market continued to heat up. If we look at the numbers from the beginning of April, the warming up of the car market can still show a certain effect.
ashish: Fsc's fleshing out wuxi, such need on that especially the final ruling yet.
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Tao Wu: Okay, firstly, from the macro perspective, data released by CCCA shows that China's auto market sales recovered in the third quarter of 2024, with retail sales increasing by 13.1% year-on-year due to price cuts by OEMs. Consumption promotion campaigns can result in different places. This data also shows how, in April, OEMs began to launch new brands and new models, and the performance of the car market has also heated up significantly, and the car market is expected to continue to rebound in the future.
ashish: Sure.
ashish: Okay.
ashish: From macro perspective based on the need for pricing to flow Satcom, China Telecom ARPA.
ashish: Compared to forecast, let me turn the call, let's wait portfolio, increasing by 14, 1% is suppressed.
Speaker Change: Thank you Jill commercial campaigns to resolve them.
Speaker Change: For some from our call participants.
Speaker Change: Mr. Vogel album, Sherrill, Hudson Ultra only arm began to launch new brands or new model.
Speaker Change: How much of the EBITDA.
Speaker Change: And the car market.
Speaker Change: Continuing with our future.
Tao Wu: Secondly, from the point of view of the price of the car, as I just said, the increase in sales may be a sign of a new start for us. Because the country has subsidies, the manufacturers will also take out some subsidies, which will bring sales. Indeed, consumers will be able to release their sales as soon as possible. But at the same time, we can also see that, because of the competition for the price of the car, we can see that in this quarter, the price of commercial vehicles dropped more than 60% last year. This is equivalent to the total price drop in 2022.
Speaker Change: Yes.
Speaker Change: So Josh so it is on top of that genre. So shutdown. This is Duncan youll flashes relief what guidance here.
Speaker Change: Okay.
Josh: Yes sure.
Josh: Some of it in terms of some of the China as well.
Carla: Yes Carla.
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Tao Wu: In general, we also think that in 2024, the price of our cars will continue to rise, especially our new car brand. So from this perspective, if the price of the car drops, it will put a lot of pressure on the main factory's own profit direction and this will also lead to many uncertainties in the competition pattern. This is the second point.
Speaker Change: So I don't see that kind of well on us.
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Tao Wu: And secondly, just as I mentioned before, the car sales volume has been constantly on the rise. This is attributable to the trading policies, which the subsidy offered by both the government as well as the OEMs, of course, construction will be pushed up. Well, on the other hand, we should also see that the price competition in this industry is still quite fierce. According to the data released by CPC, we also see that in the first quarter of this year, the passenger vehicle car price scale is already 60% of that of the same period last year and also the total price cut level for the year 2022.
Speaker Change: On the second row.
Speaker Change: Also before I think cost of borrowing has been come from China. Brian. This is attributable to the trading policy.
Speaker Change: I'll take that those two elements.
Speaker Change: On this call to confront some of our papers.
Speaker Change: Well on the other hand, where.
Speaker Change: I should also say platform price competition.
Speaker Change: Your question according to the data related to prices before the opposite that in the second quarter at both the passenger vehicles.
Speaker Change: It's already 60% of that the same shared laughter and offer the total first half of the year 2022.
Tao Wu: So we think that with this happening, there will still be a lot of pressure on the profit margin of the automakers. But, on the other side, the competition landscape is still quite uncertain. Thirdly, we look at the structure, because this structure may not have much to do with the policy. Looking at the market structure, from April 1 to April 14, our new energy sales increased by 32% compared to the previous year, and the penetration rate exceeded 50%, reaching 50.3%. In fact, this penetration rate is really low...
Speaker Change: What's happening.
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Speaker Change: Well on the other side that the competition landscape.
Speaker Change: Understood.
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Tao Wu: Many people expected it to be faster, but it has already broken through half of that. As the new energy line gets smaller and smaller, the speed of charging, the cost of charging facilities, and the cost of electric vehicles are decreasing, more and more consumers are starting to accept new energy vehicles. So I'm talking about structural changes that may be faster than we thought.
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Tao Wu: And the third thing we have to look at is the market structure. We see that from April 1st to April 14th, new energy vehicle sales increased by 32%, while wine and the penetration rate reached 50.21%, which is much faster than many people expected. With improvements in the range, as well as the charging speed of the new energy vehicle, the completion of the charging facilities, as well as the decline in the cost, more and more consumers are beginning to. Next, I will briefly talk about the specific actions of Autohome Inc. As we just said, there may be some uncertainties about the market, some good and some bad. However, from the perspective of Zhijia, this is a good thing.
Speaker Change: And the first one we have to look at March of Scott We've.
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Speaker Change: We encourage them to buy 30% Y O Y on the penetration rate reached a couple of questions with one platform, which is much faster among people with.
Speaker Change: With such a range of plastic charging speed up for new energy vehicles. The completion of the charging ports already is that the decline of the cost more and more consumers are beginning to expand for new energy vehicles.
Speaker Change: But we'll see what market sector Kendall Arthur sponsored.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: All right.
Kendall Arthur: Hello, John Yosemite other GCC loan.
Kendall Arthur: I would like to elaborate on the concrete actions, which could be taken by all of them.
Kendall Arthur: Got it out with Magellan and additionally hit maturity.
Kendall Arthur: Especially.
Tao Wu: For users, it is true that they can get a real discount and stimulate consumer demand at the same time. So we have to seize this opportunity.
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Tao Wu: Through our efforts, we have also become a key partner for the implementation of this policy. We cooperate with Beixi Group, Jiaotong Bank, etc. I hope that we can experience this together and that we can actively enjoy the policies of the country and fully exploit the advantages of our own platform so that we can implement this policy well and implement our business well in the future. As I said before, you can see that the impacts of this paralysis have both pros and cons in the market.
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Kendall Arthur: Do you hold the yoga.
Kendall Arthur: Okay.
Kendall Arthur: Sure we can pull back half of the powerful Hepworth, California on the market and for Ulta Com.
Tao Wu: But for Autohome, it is favorable to us because it can deliver real benefits to the users and will also stimulate demand in the market. So for Autohome, we will definitely grasp this opportunity. And you can see that from our own side, we have become the key cooperation unit of this campaign. Together with Baiyi Group, Vanguard Communications, as well as other enterprises, we will actively respond to the core of the national policy, give play to its platform advantages, study the automobile market in-depth, and publicize the relevant national policies.
Speaker Change: Finally, I would like to add.
Speaker Change: Okay.
Speaker Change: Thank you <unk>.
Speaker Change: The auto market so for alcohol for the decremental grasp this opportunity and you can see that from our own path will be kind of a key accomplishment units at this campaign together.
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Tao Wu: Now I will talk about two main actions. The first one is our own app. We have launched a channel called Super Shopping Season. We have organized and interpreted the subsidies for different cities and car companies in detail. This can help our consumers better understand the details of relevant policies.
Speaker Change: So now ill jump back into other GTT.
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Tao Wu: At the same time, we have also coordinated with several car companies and the Ping An Group. Through our more than 20 new energy stations, we can provide better sales and new services. Next, I would like to talk about two concrete actions taken by Autohome. The first one is that the newly opened super trading season channel of our Autohome app is organized and interpreted in detail for the subsidy policies of different cities and acquired companies to help consumers better understand the details of the relevant policies.
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Speaker Change: My follow up can you talk about your concrete actions taken by our Hong Kong, but first of all is that although nearly all from Mr. Pair trading sales in China are also hope that all of them.
Speaker Change: And also point that in detail for the subsidy policy or something different.
Speaker Change: Can the company to help consumers better understand the media sector that is a powerful.
Tao Wu: In the meantime, in collaboration with a number of automakers and PM groups, we provide high-quality, sell-old, and buy-new services to more than 20 Autohome new energy offline stores. And we would like to activate the consumption potential and promote the development of the car market. [inaudible] It covers 308 cities with three lines of roads. We use big data to accurately identify people who have self-sufficiency needs.
Speaker Change: Thanks, Sharon and collaboration with a number of auto maker and feeling good with robust high quality seller.
Speaker Change: By moving services more than 20.
Speaker Change: Offline stores Andy.
Speaker Change: Andy.
Speaker Change: We'd like to activate the pump market potential and provided the backbone of the car market.
Speaker Change: But they are the one or two others.
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Tao Wu: We cooperate with the four cities, four prices, and buy-price-lose-price services to fully activate the potential of consumption. On the other hand, the company also launched a super subsidy activity. We cover more than 100 brands and 1,000 models. Our maximum subsidy can reach 6,000 yuan.
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Tao Wu: This actually stimulates the purchasing power of the market. The other thing is that, comprehensively, we can see that Autohome has been joining hands with Ping'an E&C to create 100 cities trading for the new car buying festival covering 108 cities on free routes through the mobile holographic campaign caravan and Ping'an Insurance O1 team and utilizing big data to accurately identify people with replacement needs, along with test drive insurance and an auto service guarantee to activate automobile consumption potential. On the other hand, we also launched a special super subsidy activity covering more than 100 grants and nearly 1,000 car models with the highest subsidy of 6,000 RMB yen to effectively stimulate the market purchasing power.
Speaker Change: The other thing is.
Speaker Change: That comprehensively with campaigns that ultra home, we have the Johnstown.
Speaker Change: And to the industry Humphreys buildings trading for Neocart, Brian talked about copper rush into the equity offering through mobile photographic Campbell caravan and Pls.
Speaker Change: One team.
Speaker Change: Big data to accurately identify key programs with placement needs allows us to drive share in our service guarantee to activate the automobile consumption potential on the water has also launched a faster subsidy activity, having more than 100 brands.
Speaker Change: <unk> current model with the highest property at 6000.
Speaker Change: Is that a similar rate that Martha purchasing power.
Tao Wu: In general, this year, the country and the government put a lot of emphasis on the automobile industry. So we also believe that with the implementation and enforcement of specific policies of this kind, it will further stimulate the consumption of the market and ensure that this year's automobile industry can develop at a high level. We are still very confident in this.
Speaker Change #101: So what I have and she just yeah julianna.
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Speaker Change: Mango auto Virginia and that she does.
Speaker Change: Nonetheless, our confidence.
Speaker Change: One last item.
Tao Wu: Overall speaking, the automobile industry will continue to be valued by the state as well as the government this year. So we think that with the actual implementation of various policies, it will further stimulate market consumption vitality and promote high quality and steady development of the automobile industry this year. We're pretty confident about that.????????
Speaker Change: All of our thinking at the analyst day, we're continuing to mcdonalds.
Speaker Change: Just a couple of months.
Speaker Change: Thank God.
Speaker Change: The actual implementation of various policies.
Speaker Change: Nonetheless March of consumption by powerful I'm from.
Speaker Change: Let's talk publicly about it but that's my estimate the industry, yes, we're pretty comfortable.
Speaker Change: Although as you heard our ambitious yet okay. That's all for my answer to you. The fact the question. Thank you.
Speaker Change #105: Thank you.
Speaker Change #102: Sure what I believe.
Speaker Change #100: Sure. So you account for the accounting of it.
Speaker Change #103: Hello Carolina yogurt.
Tao Wu: Thank you. Thank you. First of all, I'd like to talk about our new products. There are more than 20,000.
Speaker Change #100: So as you know government is hunting.
Craig Yan Zeng: The overall coverage rate should be good. The second question about the dealer data product's future potential will be taken by Mr. Zeng. So the answer is that, actually, we see the total number of paid merchants for dealer data products has already exceeded 20,000. So the growth potential is pretty significant.
Speaker Change #100: Yeah.
Speaker Change #100: Right.
Speaker Change #100: Big associated forgot into you guys used per club.
Speaker Change #100: The second question about the demos.
Speaker Change #100: Those are products of inkjet for cash that will be taken by Lufthansa.
Speaker Change #100: The answer is that actually we see the total number of merchants, but on our mobile products already exceeded 20000, so the cross platform.
Speaker Change #100: Okay.
Craig Yan Zeng: On this basis, our main goal is to let more businesses use our modules in a better way. This module can really help them achieve more sales and a better price-to-performance ratio. On the one hand, we are continuing to develop new modules. On the other hand, we are also helping our customers to better understand these modules.
Speaker Change #100: Sure.
Speaker Change #100: Yeah.
Speaker Change #100: Stephanie Yao.
Speaker Change #100: Moving onto adjusted Alco tore the.
Speaker Change #100: Sandy Lowe good logistical mineral Park city more question Pablo how much again.
Speaker Change #106: Okay. Thank you gentlemen.
Speaker Change #100: So I think it was done on a rebound.
Speaker Change #100: You cut out for them.
Speaker Change #107: Yes, sure bundle them as you hit critical objective.
Craig Yan Zeng: The average buyer of every merchandise is about 5 products. But we actually have more than 10 products, so there is still a lot of space in it. This year, we see that our growth in the first quarter reached 27%. This also shows the competitiveness of our products. In the future, we think there is still some room for growth. So our objective is to help more merchants to better utilize our modules to promote their own sales to help them to cut costs and improve efficiency So in the future, we will continue to develop new models in this aspect, and we will also help this model to better function to actually facilitate our merchants. On average, each of the merchants purchase five products, but we still have another 11 established and mature products.
Speaker Change #104: So we cannot comment.
Speaker Change #104: Maybe John if he didn't go matter.
John: Well take.
Speaker Change #108: <unk> I assure you.
Speaker Change #104: Okay.
John: I think it.
John: What kind of alluded to them and take them down.
Speaker Change #104: It's not a passenger car to keep pace.
Speaker Change #104: Plumbing low.
Speaker Change #104: I mean that David Healey.
Speaker Change #104: Yes.
Speaker Change #104: Hello.
Speaker Change #110: So other than that.
Speaker Change #104: A lot more smartphones that will utilize our module to promote their own core to happen.
Speaker Change #104: Cost efficiency.
Speaker Change #104: Sorry.
Speaker Change #104: Each of our components into that new model.
Speaker Change #104: October also Hartford models to better operate the Alco portfolio.
Speaker Change #104: Our opex is at the smartphones.
Speaker Change #104: <unk> products.
Speaker Change #104: You have another example.
Craig Yan Zeng: Therefore, there is still a lot of potential for us to talk about. In Q1 of this year, we see that the growth of this business is already 27%. It shows a very strong competitive edge. So we believe that there will be big potential in the future. Okay, Operator. The next one. All right, thank you.
Speaker Change #104: On the mature products more affordable and still a lot of portals are faster.
Speaker Change #104: In Q1 of this year with me on Nebraska.
Speaker Change #104: <unk> is already in place.
Speaker Change #104: It's just very strong component.
Speaker Change #104: Okay.
Speaker Change #104: Sure.
Speaker Change #109: Okay, operator, the next one.
Operator: Our next question comes from the line of Ritchie Sun of HSBC. Please proceed with your question, Ritchie. Good evening, Mr. Guan.
Speaker Change #113: Thank you.
Speaker Change #109: Our next question comes from the line of Richie certain of HSBC. Please proceed with your question Richie.
Ritchie Sun: Thank you for accepting my question. My question is about second-hand cars. I see that Day-to-Day Cars has been affected by some new car prices in the first quarter. If the price war continues, how do we look at the future trend, and what strategies do we have to deal with it? Thank you, management, for taking my questions. I have a question about the used car business. I noticed that Day-to-Day Cars was under some impact from the new car price war in the first quarter. If this continues, how should we think about the future growth trend, and what is our strategy to tackle this? Thank you. Thank you. Let me answer this question.
Richie: So you can imagine what the Q1 <unk>.
Richie: Now I'll turn him pie HOS Dai Ichi to show Dol can you say anything about yaacov <unk> shallow.
Speaker Change #112: Catherine Jon tissue.
Speaker Change #112: Tissue to Fox, you said won't let them I can't wait to share a whole lot my notion.
Richie: Thank you management for taking my questions I have a question about the used car business. So I noticed that cant him Pie chart.
Speaker Change #114: Some has been under some impacts from the new car price war in the first quarter. So this actually is continuing at this continues so how should we think about the future growth trends and what is our strategy to tackle. This thank you.
Richie: Okay.
Speaker Change #115: Well absolutely.
Speaker Change #112: <unk>.
Craig Yan Zeng: First of all, from the market point of view, what we see is actually a mixed situation. Although the growth rate of the second-hand car is 7.6% compared to the first-hand car, what we actually see is that the days of car manufacturers are not easy to live. The PMI index of second-hand car transactions has been below the tolerance line for 16 months in a row.
Speaker Change #116: The whole economy.
Speaker Change #116: For example, Chicago.
Speaker Change #112: And what kind of outage.
Speaker Change #112: So I think it's important.
Speaker Change #112: Sure.
Speaker Change #112: E <unk> Mr downhill.
Speaker Change #112: When we come out of turnaround.
Speaker Change #112: Dave.
Speaker Change #112: Cannot fulfill your major sugar yet.
Craig Yan Zeng: The overall pressure of the industry is relatively high. On the one hand, it comes mainly from the price war. We see that the discount on new cars reached 18% at the beginning of the year. The previous year's figure was basically 12%. But it won't be like this all the time, because it will slow down the customer's time for second-hand car replacement, and it will allow more customers to choose a new car. But after a period of time, it will come back, so it will be a little slower, but it won't last all the way.
Speaker Change #112: Yeah.
Speaker Change #112: Yeah that does.
Speaker Change #112: Sure.
Speaker Change #112: Now I'll tell you I know you'll.
Speaker Change #112: Let me answer so I'll just throw out a year ago.
Speaker Change #112: Scott.
Speaker Change #112: I'll take the Jewell Coke, yes, we'll see each other telco out until you have that kind of are you sure.
Speaker Change #112: That case, Shabaab, because I missed about one year.
Speaker Change #112: Sure.
Speaker Change #117: Yes, yes.
Speaker Change #117: Yes.
Speaker Change #117: That's a good way.
Speaker Change #117: Yes, absolutely cautiously, yes, mad cohorts, they artificially high in the Sudan.
Speaker Change #117: Cohort those broader substitution that's useful.
Speaker Change #119: <unk> Dot Gander hope that was good.
Speaker Change #119: Yes.
Speaker Change #119: You look after he got.
Craig Yan Zeng: Okay, I will take this question from three different aspects. First, from the market perspective, we see that in the first quarter, you can see that used-to-costs grew by 7.6% year-on-year, a slowdown in growth. By the end of March of this year, the domestic used-to-cost trading PMI index was below the 50-point mark for 16 consecutive months.
Speaker Change #119: Yeah.
Speaker Change #120: Okay I think your first question from Christopher <unk>.
Christopher: So from the market perspective, looking back one more factor colorful will translate back into conference.
Speaker Change #112: Yes.
Christopher: Sure Barton.
Martin: Martin <unk> from.
Martin: The market in the country and format and that's helpful.
Mark: Mark Thank.
Craig Yan Zeng: The industry as a whole is under pressure, so I think that this is partly due to the price fall. According to the data released by CPCA, you can see that the new-cost income has been 18%, but in the previous year, it was only 12%.
Mark: Thank you Mark.
Mark: Jakob.
Mark: Im very protection.
Martin: This is partly due to the price quote according to the data released to market.
Speaker Change #123: That's helpful Bob.
Martin: Hum hospitals with 18% that's almost taken orally.
Craig Yan Zeng: The new-cost price has been imposing a lot of pressure on the used-to-costs. So we see that this is happening, but it looks like this will not continue for a long time because it will only slow down the replacement, but with only some postponement as well as delay. But it will not continue forever.
Martin: Overall prospect for more complex call types of imposing a lot of pressure on <unk>.
Martin: There was feedback based on capital, but I believe that people not control for a long time.
Speaker Change #125: Those were all my questions.
Martin: Only from Pensacola Aqua lung.
Martin: That continues.
Craig Yan Zeng: From a policy point of view, it is more conducive to the second-hand car. Zhang Wu has introduced the policy of changing cars for old cars. , In addition, the overall car warranty in China has reached a relatively high level. Autohome's development is only a matter of time. Day-to-day driving is to grow together with the development of the 20 cars in China. We think there will be many opportunities in the future. Secondly, we are optimistic about policy and the big picture. The second part is from a policy perspective.
Speaker Change #124: So it feels like I have all the necessary yoga media auto trader toggle switch related or you still think this is Scott.
Speaker Change #126: Maxine jacquet might deal with that.
Speaker Change #124: Figure for you at the Aha.
Speaker Change #124: So the finance team.
Speaker Change #124: <unk> got all the EBIT geography.
Speaker Change #124: I refer to it as opposed to actually either.
Speaker Change #124: Can you touch on a simulator together sources.
Speaker Change #124: Just two quarters, our ability to find out how each of.
Speaker Change #124: Our secured a fully open productivity.
Speaker Change #124: I mean in terms of how good does it faster.
Speaker Change #124: Hi.
Speaker Change #124: And the second part is from policy perspective, I think that the bulk of the flavor adult team that needs to come online commerce launched the trading policy.
Craig Yan Zeng: I think that this is favorable to the used car market. The Ministry of Commerce launched the trading policy of sell old and then buy new, bringing new development opportunities to the used car industry. So you can see that a large number of car parts will also facilitate used car trading on this market. And TTP is also a very important link in the consumption of trade-in, selling old and buying new. So we believe that it will enjoy a lot of use in the future.
Speaker Change #131: Oh pardon me Brendan is about the opportunity to call understood. Thank you.
Speaker Change #128: Is that a large number of.
Brendan: The podcast of all sorts I felt I think used car trading of muscle and TTP is also again.
Speaker Change #124: Important to note and the consumption of trade it in some of our mobile Neal four with a look back.
Speaker Change #124: Joe.
Speaker Change #124: Okay.
Craig Yan Zeng: From Day-to-day shooting itself, they have also launched a lot of new measures. They have a 30-minute rapid online national booking service, including testing, timely online booking, online quotation, and fast car sales service. Consumers can drive to the scene and test for free.
Speaker Change #124: So it's just so kilian petrofac similar Hermes.
Speaker Change #124: Have you had to push a lot of data coming.
Speaker Change #127: Thank you, but you don't see you soon.
Speaker Change #127: I'm looking at three public yet.
Speaker Change #127: He says I think he has got quite for myself.
Speaker Change #127: A brief question pretty hedged what would you say.
Craig Yan Zeng: In 30 minutes, you can see the real buyer's quotation. This model greatly improves the consumer's purchase efficiency, realizing a seamless connection between buyers and sellers. Tiantai also combines a lot of home and safety resources. For example, Xingenyuan is now an experience store. Consumers can buy new products in one go. Autohome Inc. and Autohome Group also have a lot of offline business cooperation points which can support Autohome Inc. to expand to more markets. And the third part is from CTP itself.
Speaker Change #127: So.
Speaker Change #127: And as I say foundation Nigella, Bahia single motion I thought our qdoba coverage. So the shelf. So you can imagine.
Speaker Change #127: Yeah.
Speaker Change #127: I know you're still going to have dual <unk> beyond the three that we also accumulated activity yet.
Speaker Change #130: Thank you Matt.
Speaker Change #130: Okay.
Speaker Change #130: Yeah.
Speaker Change #130: Our data.
Speaker Change #130: So Jonathan but the primary Nielsen Buda, CAGR kind of a year where that is.
Speaker Change #130: As of the date, yes, please patricia in petrochemical products.
Speaker Change #130: Yeah.
Speaker Change #130: And then for Todd just found CTG is fast food.
Craig Yan Zeng: We can see that recently, CTP launched a 30-minute high-speed online national bidding service, including on-site inspection, instant online bidding, and online offers to sell parts quickly. Consumers can drive to the site for free testing and then get offers from the real buyers online within 30 minutes. This model greatly improves the efficiency of consumers' car purchases, achieving a seamless connection between selling old and buying new, and combining with the new energy offline experience. Therefore, consumers can sell old and buy new in one stop, which helps to activate the used car market, as well as to promote the related transactions.
Speaker Change #130: <unk> recently.
Speaker Change #130: Lance a couple minutes hospitals online, Washington bidding and.
Speaker Change #132: Thanks for the answer confection instant online bidding on that offer too quickly.
Speaker Change #132: Contracts, where the size footprint parcels and wont get some degree of buyers online, but the second one this quarter.
Speaker Change #130: This is the essence of this call purchasable realized a full load connection bookings.
Speaker Change #130: Mhm mastectomy quality offline Eric thoughts. Thank you Ms <unk> in five years, and one stop which has access to power markets.
Craig Yan Zeng: And with the offline collaboration between Autohome and the group, as a whole, it will greatly support CTP's future expansion. Okay, operator. The next question, please. Thank you. Our next question comes from the line of Thomas Chong from Jefferies. Please ask your question, Thomas. Good evening. Thank you for accepting my question. I have two questions.
Eric: Most of our repo transactions and ways to offline collaboration between auto home and the group at the hub, it's well leased upon tep's future expansion.
Eric: Okay.
Speaker Change #134: Okay. Operator next question please.
Speaker Change #136: Thank you.
Speaker Change #134: Our next question comes from the line of Thomas Chong from Jefferies. Please ask your question Thomas.
Thomas Chong: But somehow I didnt have.
Thomas Chong: You bet.
Thomas Chong: The first question is about what we think about the situation in Beijing this year and our views on new energy in the coming year. The second question is about our current plan. Thank you.
Thomas Chong: Orlando T P Cohen salesman.
Thomas Chong: And when you saw the adult share momentum will continue.
Speaker Change #137: Well ill woman.
Speaker Change #137: So can you man.
Thomas Chong:
Thomas Chong: The whole Covid issue Guarneri woman changes.
Thomas Chong: Thanks, management, for taking my question. My first question is about management comments on the recent Beijing auto show and how we should think about the EV sector this year. And my second question is about the use of cash.
Thomas Chong: Is it.
Speaker Change #138: Thanks management for taking my question.
Speaker Change #144: My first question is about management comments about the recent Beijing Auto show and how we should think about the E&P sector. This year and my second question is about the uses of cash. Thank you.
Tao Wu: Thank you. Okay, thank you. I will answer this question. The Beijing Motor Show was held for the first time in four years.
Speaker Change #138: Sure.
Speaker Change #138: Yes.
Speaker Change #139: Rapid assay revenues here.
Speaker Change #140: But you can figure out and I didn't answer.
Speaker Change #141: Dean show searches on the trigger.
Tao Wu: The scale is very large, and the attention to detail is also very high. It has attracted a lot of attention from all walks of life. The number of visitors has reached 10 days, which is quite a long time. It is also in time for the May Day holiday, so it has sold nearly 900,000 units. The global number of first cars sold has reached 117 units.
Speaker Change #139: So just quick washer.
Speaker Change #139: Fluids Hong Kong.
Speaker Change #139: So there's certainly a silent.
Speaker Change #139: I wanted to show.
Speaker Change #145: Absolutely yes.
Speaker Change #139: You just got hit so when you see clients.
Speaker Change #139: Joe that's a function of that argue that you should keep.
Tao Wu: There are 278 new energy vehicles, which is also the focus of this exhibition. Okay, thank you for raising this question. Let me take this one.
Speaker Change #139: Similarly in Turkey.
Speaker Change #143: I'm not sure if I could.
Speaker Change #143: If it fits exactly those adobe.
Speaker Change #142: Okay. Thank you for raising the question let me take this one so far this year.
Tao Wu: So this year's Beijing Auto Show was the first heavyweight auto show held in Beijing in the past four years, and therefore the most attention-grabbing in recent years, attracting a large number of visitors from all walks of life and visiting groups. In 10 days of the show, including the holidays, we attracted 900,000 visitors, with the world's debut of 117 vehicles and 378 new energy models. In fact, in the past two or three years, China has accounted for more than 60% of the global share of new energy oil and gas production.
Speaker Change #142: Making sure that we had removed auto show how to maintain a possible, yes, and we're part of most of that comes from Brad <unk> attracted a large number of switches from all walks of life and that can put in 10 days at the auto show, including the holidays.
Speaker Change #142: Backlog in total 900000, okay. Mr. Wells that were up 117 vehicles I'm joined on this on the eighth neat energy model.
Speaker Change #148: Thank you.
Speaker Change #142: Yes.
Speaker Change #142: No.
Speaker Change #142: Familiarity and got out of a heads up we don't know.
Tao Wu: China's automotive industry has continued to warm up, and smart technology has also attracted a lot of attention. China's new energy is recognized for its strong product power and retail strength. Although the overall data for April has not come out yet, as Mr. Wu just mentioned, the penetration rate for the first half of the month exceeded 5%.
Speaker Change #142: Yes.
Speaker Change #146: Sure So kudos.
Speaker Change #146: So the autonomy Assura has seen a lot of doors.
Speaker Change #146: What does it say that familiar I note that it cannot India celina.
Speaker Change #146: Yes.
Speaker Change #146: Joseph Hamish.
Speaker Change #146: Oh, probably has hit us some elegant simple to cover that.
Tao Wu: This is the first time in public data to exceed the sales of a racing car. [inaudible] From the perspective of new energy, we can see that the industry will continue to diversify. The scale of the new generation vehicle, which represents the ideal of BRDM, has gradually reached its limit.
Speaker Change #152: If you'd like.
Speaker Change #146: Homeowners will be willing to look forward and I hope for the seller.
Speaker Change #151: Got it.
Speaker Change #146: Terrific.
Speaker Change #147: Yes sure.
Speaker Change #147: So allow us to get adequate.
Speaker Change #147: Yes.
Speaker Change #147: To this date.
Speaker Change #147: Sure.
Speaker Change #147: Wow.
Speaker Change #147: We are continuing I think I've got one on Colorado.
Speaker Change #147: Sure.
Speaker Change #147: <unk> got the senior interest with them.
Speaker Change #147: <unk> you can see the reunion Lee <unk>.
Tao Wu: Basically, profitability and capacity have also increased. Of course, some vehicle brands may gradually lose out in this fierce price war. In the next three years, scale, cost, and technology will be very important, and we will see which companies can gain more market share in these areas. We at Autohome Inc. will pay close attention to the automotive market. In this exhibition, we have expanded our introduction to the automotive industry in Canada. In the future, we will also rely on our offline partners. We have more than 80 models of 3D models designed by New Energy, and we have cooperated with most of New Energy's brands.
Speaker Change #149: Okay. So as you can I know, it's a new site.
Speaker Change #154: Good afternoon.
Speaker Change #147: Sure.
Speaker Change #147: Yes.
Speaker Change #147: Okay I understand.
Speaker Change #147: So, let's see how it shook out.
Speaker Change #147: Equivalent to less confusion, so you get some geology.
Speaker Change #147: Naked whiskeys.
Speaker Change #147: Quarterly Youll ship.
Speaker Change #147: The local laws.
Speaker Change #147: Sidoti Donald flew up.
Alicia: Alicia well with it.
Speaker Change #147: Yes.
Speaker Change #150: Thanks, Good afternoon, EMEA should get us familiar on the treadmill.
Speaker Change #150: Sure.
Alicia: Now, let me assure equal York CAGR with Ebola.
Speaker Change #150: Yes.
Speaker Change #150: Okay.
Speaker Change #150: The total occupied communities of interest in the industry as it goes along.
Speaker Change #150: You probably heard us familiarity.
Tao Wu: The income from New Energy continues to grow in our industry. So we think that New Energy... We will not replace the combustion engine completely, but the status of new energy in the market is gradually improving. So in the year 2023, we see that NBV production and sales accounted for more than 60% of the global total. China's automobile going global campaign continues to heat up, and intelligent development accelerates year by year, with a strong product power as well as technical strength.
Speaker Change #150: That's a similar anecdotal on that yet.
Speaker Change #150: So you know what Michigan familiar.
Speaker Change #150: And she does ensure that youre, assuming that andi think of shareholders either continue to tick up.
Speaker Change #150: So yes, we're seeing market will only will production oncor is accomplished by more than 60%. That's a global developer China's automobile going global campaign continues as he can and intelligent developed markets that have acreage there.
Speaker Change #150: But the swap product power SAIC technical thing a battle for FIFA and for the whole month of April are not identical.
Tao Wu: Although the sales figures for the whole month of April are not yet available, but as Mr. Wu Tao mentioned, market penetration of domestic NBV sales in the first half of April already hit 50%, exceeding traditional fuel vehicle sales for the very first time. Meanwhile, at the same time, we also see that the new energy industry continues to diverge among NBV players. You can see that the players represented by BYZ and Li Auto, who are still effectively, gradually appear, and profitability continues to improve.
Speaker Change #150: Moshe marks a penetration of domestic all of these are kind of towards the top of the Asa.
Speaker Change #150: <unk> already achieved 50%, it's beginning to loosen their field via Curt.
Speaker Change #150: Very first time.
Speaker Change #150: I would also say that when you enter into.
Speaker Change #150: They continue to fight for it.
Speaker Change #150: Players.
Speaker Change #150: We'll talk to you part of a plan that is amplified <unk> also dealt.
Speaker Change #150: In fact with revenue.
Speaker Change #150: And profitability continues to improve.
Tao Wu: Well, in the meantime, there are also car brands that may gradually lose market share and increase losses in a serious price war. The next two or three years will be an important period of competition for skill, cost, and effective technology. And any of these companies will be strong products of power expected to gain more market share. Autohome will also adapt to the market trend, rely on new energy offline experience stores, and cooperate with various new energy brands. At present, our 3D holographic car models have already covered more than 18 mainstream new energy models.
Speaker Change #150: On the upper part brand that will gradually lose market share Chris Loughlin.
Speaker Change #155: Well my question, yet, but the most important here comes the question for Phil.
Speaker Change #156: The margin on all of these companies.
Speaker Change #160: With Splunk cloud at the power and importance of Denmark market shares.
Speaker Change #156: We're also a market through the market.
Speaker Change #156: Our new anti offline experience stores cockpits with their new energy Brad.
Speaker Change #156: Our CPE photographic car model has already covered more than 18 months of new analytic model, we have separately for the business.
Tao Wu: We have cooperated with most of the new energy brands, and revenue from the new energy brands continues to outperform the industrial sales group. In the past few years, the company's cash flow plan... We have been continuously improving the shareholder's return. In 2022, we updated the main-term development plan. Our fixed 5 billion yuan dividend is equivalent to 28% of the current interest rate. In 2023, we further updated the dividend policy. When I was in my second or third year of college, we signed a 10-billion-yuan red-and-blue agreement with the People's Republic of China.
Speaker Change #156: Secondly, a major brand in our revenue from Dominion energy plant continued to outperform the endothelial cells.
Speaker Change #156: And also they are saying Hey, what are you seeing I know Amit.
Amit Powell: Well, maybe just switching to San Diego to the local law.
Amit Powell: No.
Amit Powell: So we came up with Cedar hackathon, including Louisiana both.
Speaker Change #157: We're not done.
Speaker Change #157: Dr Bob or Tony I know the game will sit in the home center.
Speaker Change #157: Michel will assure you that they value.
Tao Wu: Now, we have completed the payment, and from 2024 to 2026, we announced that the annual dividend would be no less than 1.5 billion yuan. For a long time, China has been in a relatively stable financial situation, and the cash flow is very strong, so we will continue to adjust our policies according to the market situation. [inaudible] In terms of our cash use plan, we see that over the past few years, Autohome has been committed to continuously improving shareholders' returns.
Speaker Change #158: Let me see if it holds steady.
Speaker Change #158: Will <unk> be similar.
Speaker Change #158: So after the auto finance again, EMEA typically handle thousands of local shop, we use data sure sure.
Speaker Change #158: Yeah.
Speaker Change #158: We'll talk to you and I know you'll be up again, David I was off market.
Speaker Change #158: And then how.
Speaker Change #161: So you will hopefully should be the predominant choose.
Speaker Change #158: Choose that you should have it so I don't want them.
Speaker Change #158: Joseph Osha <unk>.
Speaker Change #158: <unk> Dot com piece has gone up as well.
Speaker Change #159: Got it.
Speaker Change #159: In terms of our cash growth plan looking back over the past again.
Speaker Change #159: Hum.
Speaker Change #159: So continuously improving shareholder return any ear terminal credit to the board of directors above the dividend payout policy.
Tao Wu: In the year 2022, the Board of Directors updated the dividend payout policy, which is to distribute a fixed amount of 500 million RMB, which is equivalent to 28% of the net profit of that year. At the end of FY23, the company further revised its dividend policy by announcing a decision to pay a dividend of 1 billion RMB, and we have completed this dividend payout in the first quarter of this year. As for the three years from FY24 to FY26, we plan to pay dividends every six months, with a total annual dividend of no less than RMB105.
Speaker Change #159: This rig is a fixed amount of our 500 million RMB one.
Speaker Change #159: Equivalent to 28% bottom line profit effect.
Speaker Change #159: In the end of FY 'twenty suite, a couple sorry that.
Speaker Change #159: Marsh.
Speaker Change #159: Policy benchmark for a decision to pay a dividend of one RMB, one and Bruce have completed this dividend payout and Bethesda corridor assets.
Speaker Change #159: But as we get from FY 'twenty four to FERC.
Speaker Change #159: Proposed dividend every six months.
Speaker Change #159: Photo Arnold because at the end of November RMB, one 501.
Tao Wu: So you can see that Autohome has a strong history of solid financial position, adequate cash reserves, and strong cash flow. Over the past few years, we have been very strongly giving returns to our shareholders, and we will continue to pay dividends and have been committed to continuously improving shareholders' returns. Operator, the next question comes from Xiaodan Zhang from CICC. Thank you.
Speaker Change #159: Can't keep up all the home such as sponsored a solid financial position and adequate cash reserve one cash some of.
Speaker Change #162: Yes, we have some we have been very solidly given returns to our shareholders and will that continue to pay dividends.
Speaker Change #162: Continuously improving shareholder return.
Speaker Change #162: We're also monitoring.
Speaker Change #162: Modest at the market trends and Barbara welcome from me too.
Speaker Change #162: Given the macro but maintenance of our shareholders' capital.
Speaker Change #165: Operator, the next please.
Operator: Please proceed with your question, Xiaodan. Hi, thank you for accepting my question. My question is about our traditional media business. As I just mentioned, the budget of the main production plant has been biased since this year. I would like to ask you to share the record trend of our media advertising business. How should it be?
Speaker Change #166: Thank you.
Speaker Change #162: Our next question comes from Sheldon Jiang from C. ICC. Please proceed with your question Sheldon.
Sheldon Jiang: Hey, guys. Good morning, conjunction with Humana I would've wanted keisha.
Sheldon Jiang: And that's what you call yourself I Wonder if you like with your child is going on there.
Sheldon Jiang: Sure.
Speaker Change #164: Thank you Glenn.
Glenn: Thank you.
Sheldon Jiang: Today's finger Shouldnt go real quick.
Xiaodan Zhang: Thank you. I will quickly translate it. So, thank management for taking my questions. And it seems the advertising budget for OEM is still tight this year. So, what is your outlook for our media services business? Okay, thank you. I'll answer this question. As you mentioned, during the first quarter, we saw these special vehicles, including police officers.
Speaker Change #169: No question, Frank sacks, and Mr. Thanks management for taking my questions and if things on the advertising budget for Oems is still tight this year. So what is your outlook.
Sheldon Jiang: Our media services business for the subsequent quarters. Thank you.
Sheldon Jiang: Oh, the CTO and that played out.
Sheldon Jiang: <unk>.
Sheldon Jiang: E.
Sheldon Jiang: The film come out of it.
Sheldon Jiang: Sure.
Speaker Change #168: What is your ability to adapt Richard.
Sheldon Jiang: John.
Sheldon Jiang: So you can order your cynosure Palomar logic.
Sheldon Jiang: Yeah.
Sheldon Jiang: Yes.
Sheldon Jiang: Yes.
Sheldon Jiang: The CAGR.
Sheldon Jiang: Sure.
Sheldon Jiang: How do you sense, if there is one.
Speaker Change #170: Yes sure.
Craig Yan Zeng: The profit margin is about the same, so from the market point of view, the advertising budget is indeed reduced, and our numbers are also reflected in this situation. Okay, thank you for raising this question. I will take this question. We see that in terms of the sales of I-6 vehicles, as well as any vehicles in the first quarter, we see that actually even though the sales volume increased by 12%, we see that actually all of the automakers have been purchasing, have been procuring the strategy of price for volume. As a result, their profit margin has been squeezed. We have been spending more of our budget on directly subsidizing the consumers so as to improve the volume. As a result, the advertising budget has been squeezed.
Sheldon Jiang: Yeah.
Speaker Change #171: Okay. Thank you sorry, the last question.
Sheldon Jiang: The question when you think back.
Sheldon Jiang: Okay.
Sheldon Jiang: Yes, that's what I can only be a close in first quarter, we think that actually April thus far volumes increased by 4%. However, this feedback actually all of the auto Nighthawk <unk> touch upon what you got.
Sheldon Jiang: <unk> been pursuing that strategy.
Sheldon Jiang: Priced borrowings I think we've got the perfect Margot Hoffman.
Sheldon Jiang: They have been bundle more backlog vertical subsidized consumers to actually increase the volume.
Sheldon Jiang: Our advertising that has happened.
Craig Yan Zeng: Of course, new energy vehicles will also be a little different, right? The advertisements for these vehicles are still a little bit bigger, and we believe this will continue for a period of time. So from a longer-term perspective, cars are a relatively large consumer product after all. It depends on the price alone, but it continues to be quite popular.
Sheldon Jiang: Don.
Don Truslow: Thank you Ashwin.
Speaker Change #173: We've had a young kid, Turkey those vehicles.
Don Truslow: Here's a look at that up.
Speaker Change #173: <unk> been able to make it up on Russell of Goldman on that are you seeing <unk>.
Speaker Change #173: So.
Speaker Change #173:
Speaker Change #174: Well I think it was taken out so actually the opposite.
Speaker Change #173: Finally on the <unk>.
Speaker Change #173: So to answer your Asher.
Speaker Change #173: How pleased or however, you choose actually Denmark. So you can do that.
Sheldon Jiang: That's why I came in a lot of it's actually on the Audi.
Sheldon Jiang: This will come to that.
Sheldon Jiang: I can at least.
Speaker Change #172: Sure happy to ensure U.
Speaker Change #172: Yes.
Speaker Change #172: Sure.
Speaker Change #176: Please don't ask you quickly.
Speaker Change #172: You can you tell us.
Speaker Change #172: So if you just look.
Speaker Change #172: So how should please.
Craig Yan Zeng: So in the end, it will still return to a normal retail market.... Well, at the same time, we see that NEV companies have increased their advertising investments. For example, in the first quarter, Autohome's media advertising revenue from NEV players doubled worldwide, and it will continue to grow in the future. And we also expect that the price-for-volume strategy of OEMs will continue, but it will not continue forever. So the advertising budget will still be under pressure for a short period of time.
Speaker Change #175: Well I think.
Speaker Change #175: <unk>.
Speaker Change #175: <unk> have increased appetite for beckman.
Speaker Change #175: Comscore fourth quarter out of home media appetite does that mean from any of the plants suffer wildlife and this will continue to grow in the future and we also expect the price.
Speaker Change #175: Volume strategy.
Speaker Change #175: Yes.
Speaker Change #175: It continues that might continue for all of them.
Speaker Change #175: The advertising back what's going on there.
Operator: However, in the long run, we believe that we will actually continue to pay more attention to advertising, and the advertising budget will come back to the normal track because the market will continue to follow the right direction. Okay, operator, if there's any extra question, we come to the end of this Q&A session. Thank you, sir. There are no further questions at this time. I'll turn the conference back to the management team for closing comments. Thank you all for attending today's meeting. We look forward to the latest development of our company at the next conference., If you have any questions or suggestions, please feel free to contact us.
Speaker Change #175: The pressure in the short period of time.
Speaker Change #175: In Atlanta, we believe that.
Speaker Change #175: Believe me will continue.
Speaker Change #175: Mark Home Center, Apple Typhoon advertising cycles will come back with a normal track.
Speaker Change #175: Mark has broken up there.
Speaker Change #175: Continuing to Palo Alto platform.
Speaker Change #178: Okay, operator, if theres no extra Hudson will come to the end of the session. Thank.
Speaker Change #179: Thank you Sir.
Speaker Change #180: No further questions at this time I'll turn the conference back to the management team for closing comments.
Speaker Change #177: Thank you Dr. Zhao transaction handle fleet, she Diana Chang.
Speaker Change #181: Please note that you've got the RTL and also that we see buybacks.
Speaker Change #181: Google and you'll remember that it wouldn't be Hershey andina quite honestly.
Sterling Song: Thank you. OK, thank you, everyone. Thank you for joining us today. We appreciate your support, and we look forward to updating you on our next conference call in a few months' time. And in the meantime, please feel free to contact us if you have any further questions or comments. Thank you, everyone. Thank you. Bye bye. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Thomas Chong, Brian Gong, Sterling Song, Yan Zeng, Ritchie Sun, Xiaodan Zhang, Autohome Inc.
Speaker Change #183: Yeah. Okay. Thank you everyone. Thank you for joining US today, we will first appreciate your support and we look forward to updating you on our next quarter conference call. A few months time and in the meantime, please feel free to contact us.
Speaker Change #182: Any further questions or comments. Thank you everyone. Thank you all right.
Speaker Change #184: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change #182: Okay.
Speaker Change #182: [music].
Speaker Change #182: Sure.