Q3 2024 Autohome Inc Earnings Call
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Speaker Change: Ladies and gentlemen, thank you for standing by for auto homes as a quarter 2020 for earnings conference call.
Speaker Change: At the time, all participants are in listen only mode.
Speaker Change: A question and answer session will follow management's prepared remarks. As a reminder, this conference call is being recorded.
Speaker Change: If you have any objections, you may disconnect at this time. A live and archive webcasts of this earnings conference call will also be available on Autohomes IR website.
Speaker Change: It is not my pleasure to introduce your host, Seling Song, the home's IR Director. Mr. Sunt, please go ahead.
Speaker Change: The End
Speaker Change: Episode 2
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Speaker Change: Anna, under complete website.
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Speaker Change: at IR.autohomes.com.cd. This is today, after this call, a chief executive officer, means Tao Wu, and chief financial officer, Miss Craig, Yan Zeng.
Speaker Change: Management, we are going through the App in very much which will be followed by a certain expansion where there will be available to answer all your questions.
Speaker Change: Before we continue, please know that the discussion today will continue for the Luzhen Stigmen, made an effective hub for the region of the U.S.
Speaker Change: Produced Security Education, Reform Act of 1995.
Speaker Change: for the Russian-Titlen are subjects to brief an incident that may cause actual results to deform materially from our current expectation.
Speaker Change: The potential risk and uncertainty is include, but are not limited to those offline, your public filing is the US Securities and Change Commission and the Hong Kong Stock Exchange.
Speaker Change: and the Thai Army obligation to affect any overloadment equipment except as required.
Speaker Change: and the article below, please also know that, also from Sterling's friends and these conference course includes these questions of certain audiences, nine guests per night of madness.
Speaker Change: A Resonination of the Nanggess Magier to the most directly comparable Gess Magier having fund now earnings we need for that.
Speaker Change: [inaudible] .
Speaker Change: Thank you, Sterling. Hello, everyone. This is Tao Wu, CEO of Autohome, and thank you for joining our early conference call today.
Speaker Change: In the third quarter, we continued to promote an on-line, offline integration of all-chain deep-root ecological strategies.
Speaker Change: and continued to achieve results, constantly optimizing the overall business structure of Zhijia.
Speaker Change: In the third quarter, we continue to advance our integrated online-to-offline ecosystem strategy, focusing on deepening engagement across the entire value chain while further optimizing our business structure.
Speaker Change: In the online field, we have launched new professional content and product proofing.
Speaker Change: Further strengthened our differentiated competitive advantage, thereby continuously expanding the platform's traffic scale. In September , the number of daily active users on Zhijia's mobile end exceeded the 70 million mark for the first time, with a year-on-year growth of 5.6 percentage points.
Speaker Change: Thank you for watching!
Speaker Change: This proves that the influence of Zhijia in the right-wing community is steadily increasing.
Speaker Change: In the field of off-road vehicles, we focus on the off-road market, and we have created a hundred-layer vehicle exhibition. In the first three quarters of this year, we successfully held more than 500 off-road vehicle exhibitions, providing consumers in these areas with a one-stop service experience from choosing a car, looking at a car, test-driving a car, and purchasing a car.
Speaker Change: 使得购车呢变得更加轻松和便捷。此外,通过汽车之家加盟店的多种产品和服务,我们为客户提供融合线下的综合解决方案,帮助他们实现全域经营优化。
Speaker Change: The third quarter, the company's online marketing and other business revenue increased by 3.1% compared to the previous quarter.
Speaker Change: Thank you for watching!
Speaker Change: http://TheBusinessProfessor.com
Speaker Change: On the online front, we are leveraging our new professional content and product mix.
Speaker Change: to strengthen our differentiated competitive advantages, which has led to a steady increase in our traffic scale. In September, our average mobile DAU increased 5.6% year-over-year to exceed 70 million for the first time, underscoring our expanding influence among users.
Speaker Change: in terms of our offline offering.
Speaker Change: We are focused on low-tier markets with the deployment of initiatives like the 100 cities trade-in for new.
Speaker Change: In the first 3 months of this year, we successfully organized over 500 offline auto shows providing consumers in this region with a seamless one-stop service experience that spans from car selection, viewing, and test driving to purchase.
Speaker Change: making the process more convenient than ever.
Speaker Change: Additionally, by leveraging the products and services available through our franchise stores, we are able to offer comprehensive and integrated online to offline solutions that further optimize our customers' business operations.
Speaker Change: Driven by robust growth in our new retail business, revenues from online marketplace and others increased 3.1% year-over-year during the third quarter.
Speaker Change: What we should pay attention to is that our new retail business has significantly accelerated its expansion to low-end cities in this quarter.
Speaker Change: So far, the total number of space stations, satellite power plants, and power plants has exceeded 50.
Speaker Change: to build a nationwide network of channels that cover the mid-to-high-line cities of the space station and penetrate the mid-to-low-line cities of the satellite power.
Speaker Change: The expansion of the channel and the expansion of the scale not only verify our commercial model, but also the applicability of it in a wider range of cities and integrate it for our future.
Speaker Change: The ability of the platform to connect industrial resources and explore and develop more innovative business models laid the foundation.
Speaker Change: In terms of digitalization, we rely on the comprehensive ability of data technology and platforms to constantly improve the coverage of digitalized products and strengthen the application of artificial intelligence technology in various products.
Speaker Change: 助力客户经营体制增效
Speaker Change: In addition, our cooperation with Ping An Group has also taken a new step. In the fields of traditional business, data products, second-hand cars, and car-rearing, we have launched a series of innovative products and services, further consolidating our unique competitive advantage in these areas.
Speaker Change: For more information visit www.FEMA.gov
Speaker Change: Notably, we significantly accelerated the expansion of our new retail business into lower-tier cities this quarter. To date, we have a nationwide network of more than 50 stores with auto-home-based stores in mid- to high-tier cities and satellite stores in middle- to lower-tier cities.
Speaker Change: the adaptability of our business model across a wider range of cities, but also lays the foundation for the integration of our platform capabilities, enables collaboration with partners along the industry value chain, and allows us to explore and develop additional initiative business models in the future.
Speaker Change: to continuously enhance the coverage of our digital products.
Speaker Change: Additionally, we have expanded the application of artificial intelligence technology across various products to enhance the quality and efficiency of a customer's operation.
Speaker Change: Furthermore, our cooperation with Pinan Group has hit new heights with the introduction of a series of innovative products and services across our traditional businesses, as well as data products, used cars, and the aftermarket sector.
Speaker Change: for strengthening our unique competitive advantages in these areas.
Speaker Change: In the future, we will further strengthen the layout of the localization and sub-market, enhance the influence of home brands, adapt to market changes, continue to promote product innovation, expand business boundaries, and lead the industry.
Speaker Change: 同时呢,我们也还将充分利用平安集团的线下资源和车后服务能力。
Speaker Change: to expand our business coordination, and help to diversify the supply chain. We firmly believe that these measures will help Automotive Home create more value for the industry and achieve the company's long-term and sustainable development.
Speaker Change: For more information visit www.FEMA.gov
Speaker Change: Looking to the future, we will further strengthen our local presence in lower tier markets to enhance our brand influence while adapting to evolving market dynamics.
Speaker Change: Our commitment to driving product innovation and broadening
Speaker Change: contribute to the industry's development.
Speaker Change: At the same time, we'll fully leverage Tianan Group's offline resources and aftermarket service capabilities.
Speaker Change: to amplify synergy and solidify our differentiated competitive advantages. We are confident that these initiatives will enable us to create greater value for the industry and support our long-term sustainable development.
Speaker Change: 接下来请CFO曾言先生详细介绍 芝加24年第三季度的业务及财务情况 With that, I will now turn the call over to our CFO Craig Zeng for a closer look at the 6th quarter 2024 operating and financial results
Speaker Change: https://www.kenhub.com
Speaker Change: Thank you, Mr. Wu. Hello everyone, I'm Craig Zeng, the CFO of Otoho.
Speaker Change: In the third quarter, we continue to develop user content and tools, continuously release AHRQ content verification and real-scene smart evaluation systems to create high-definition high-quality content.
Speaker Change: We have also launched the industry's first scenario-driven vehicle library, which integrates real vehicle scenarios to provide users with more practical vehicle selection references.
Speaker Change: Thank you for watching!
Speaker Change: In the third quarter, we continue to enhance our content and tools.
Speaker Change: by successfully introducing the Autohome AH Plus content matrix and the Real Scenario Intelligent Evaluation System to create a rich array of high-quality content.
Speaker Change: Additionally, we launched an industry-leading scenario-based vehicle model library that integrates real-life car usage scenarios, providing users with a more relevant and practical guide for vehicle selection.
Speaker Change: Specifically, the original content of the car is covered by more than 13 levels of blueprints covering the four core tracks of the new car, evaluation, culture and industry.
Speaker Change: 通过直播视频等形式,向用户传递真实有用的信息,解决用户在车辆使用全生命周期中遇到的问题。
Speaker Change: 智能评测体系则聚焦高阶辅助驾驶、智能座舱等核心产品功能。
Speaker Change: 通过严谨专业的实际测试,真实的多维度车型评测对比,深度的技术直播解读,为用户传递最具实用价值的智能评测结果。
Speaker Change: Thank you for watching!
Speaker Change: Specifically, our original content matrix now covers more than 13 programs covering four key segments including new cars.
Speaker Change: car evaluations, car culture, and the auto industry. We offer authentic and practical information to users through live streaming and videos addressing a wide range of challenges they encounter throughout the entire life cycle of a car ownership.
Speaker Change: Our Intelligent Evaluation System focuses on core product features such as advanced driver assistance and smart cockpits, combining professional evaluation capabilities with users' real-life scenarios.
Speaker Change: Through professional field tests, multidimensional vehicle reviews and comparisons, and live streaming of technical insights, we deliver the most practical and relevant smart evaluation results to our users.
Speaker Change: 工具方面,我们的场景画图库覆盖了夜间、空间和智能三大核心看车场景,让用户能够更加直观地了解车辆颜值外观、功能以及智能化水平。
Speaker Change: have significantly improved the efficiency and convenience of car selection.
Speaker Change: At the same time, we have also upgraded the QuanYi platform to gather all kinds of information such as policies, subsidies, and promotions in real time.
Speaker Change: 让用户一站式了解全部信息,并实现权益自动匹配计算优惠。
Speaker Change: 另外通过对人、车、数据的挖掘和算法模型升级
Speaker Change: We use AIGC, DialogMachine, and other tools in the search, live, and IM scenarios to deepen interactions with users, quickly and accurately respond to user needs, and enhance user experience.
Speaker Change: Quest Mobile data shows that the number of daily users of the mobile home in September has reached 72.87 million and has increased by 5.6% over the same period of 23 years.
Speaker Change: 证明了我们在汽车垂美领域的领先地位
Speaker Change: Thank you for watching!
Speaker Change: On Tuesday, our scenario-based image library covers three core reading scenarios, night time,
Speaker Change: spatial and intelligent car viewing. This innovative tool provides users with an intuitive understanding of a vehicle's authentic functionality and smart capabilities.
Speaker Change: significantly improving the efficiency and convenience of the car selection process.
Speaker Change: We also upgraded our benefit platform to aggregate various policies, subsidies, and other promotional information in real-time, providing users with a one-stop information platform to automatically match and calculate discounts.
Speaker Change: Additionally, leveraging our upgraded algorithms and the user and vehicle data, we have mined
Speaker Change: We've deployed tools such as AFGC and checkbox across multiple scenarios, including search, live streaming, and instant messaging.
Speaker Change: This deepened interaction with users, increases the speed and accuracy of response, and improves the overall user experience.
Speaker Change: According to QuestMobile, the number of our average mobile DAUs grew by 5.6% year-over-year, reaching 72.87 million in September, demonstrating our leading position in the automotive media vertical.
Speaker Change: Thank you for watching!
Speaker Change: Xing Men we are leaders
Speaker Change: 我们的卫星计划在三季度全面实施
Speaker Change: Currently, more than 50 space stations and satellite joint power plants have landed across the country, indicating that the construction of our downstream channels has reached a large scale. Through the close cooperation of these space stations and satellite power plants, we have built a high-efficiency network channel, realizing resource sharing and advantageous mutual support.
Speaker Change: and provide channel support for the new energy main plant in the blank city.
Speaker Change: The growing scale of offline services not only allows us to provide localized, online and offline solutions to our customers, but also allows us to monitor and dig into the needs of low- and middle-tier cities.
Speaker Change: 未来,我们将深入挖掘区域卫星电的潜力
Speaker Change: to develop platform advantages, integrate industrial chain resources, and make more business model attempts and innovations.
Speaker Change: Turning to NEVs, our satellite plan was widely implemented in the third quarter. To date, we've established over 50 franchise auto home space stores and satellite stores across China.
Speaker Change: marking the initial scaling of our expansion into lower-tier cities.
Speaker Change: The seamless collaboration between Autohome Space and the satellite stores
Speaker Change: have facilitated.
Speaker Change: The Creation of an Efficient Network Channel
Speaker Change: This collaboration encourages resource sharing and offers
Speaker Change: Thank you.
Speaker Change: complementary advantages providing AEV manufacturers with channel support in cities where they don't have a presence.
Speaker Change: in the middle to lower tier cities. Going forward, we'll further explore the potential of the regional satellite stores, leveraging our platform advantages to integrate resources throughout the industry value chain and pursue even more innovative business models.
Speaker Change: At the same time, we also used the unique resources of Ping An Group to launch financial insurance hardware services, which greatly expanded the financial product line of our store, broadened our service range, and enriched our store's sales tools.
Speaker Change: For example, we have integrated the safety of the car owner's ability to promote the industry-unique warranty warranty package to provide car insurance and health care to consumers who purchase their cars through our online Jiameng store.
Speaker Change: We are happy to see that Zhijia 3G has continued to grow in terms of revenue from new energy brands and revenue has increased by 54% compared to the previous year, which continues to boost the sales of the industry.
Speaker Change: In addition, we also leverage Ping An's unique resources to pilot financial insurance services in this store.
Speaker Change: This is the financial product offering available through Autohome State.
Speaker Change: stores, broadens our service scope, and diversifies revenue streams. For instance, we integrated Pinan's car owner service capabilities to launch a unique industry offering, price guaranteed.
Speaker Change: heartfelt benefits package, which provides purchase protection and health care for consumers who purchase cars through our franchise stores.
Speaker Change: We are pleased to see revenues from AEB Brands continue to grow and consistently uptake the industry's sales growth rates during the third quarter, increasing 50%
Speaker Change: 4% compared to the same period last year.
Speaker Change: 在數字化領域
Speaker Change: 三季度,結合平安集團在車後場景和線下服務能力的優勢,我們分別上線了針對售後服務業務的外部平台和留休助手。
Speaker Change: 以及置换车数字化服务产品。
Speaker Change: to improve the efficiency of invitation and return visits. The latter used the Ping An offline team to provide one-to-one consultation services to the users of the substitles under multiple scenarios to effectively promote transaction conversion and achieve positive market feedback.
Speaker Change: In the first nine months of this year, Zhijia's total data product revenue has increased by 8%.
Speaker Change: Thank you for watching!
Speaker Change: On the digital front, we combine Ping An Group's strength in up-to-sale scenarios and offline service capabilities during third quarter to launch an outbound cost platform and maintenance assistance for up-to-sale services, as well as digital services for vehicle trade-in.
Speaker Change: The former yet able to maintain its flexibility.
Speaker Change: to reduce customer acquisition costs and improve in-division and return visit efficiency, while the latter utilizes Ping An's offline team to provide one-on-one consulting services to customers.
Speaker Change: for trade-in vehicles across multiple scenarios. This effectively improves transaction conversion rates and has generated positive feedback from the market. During the first nine months of this year, revenue from data products increased by 8% year over year.
Speaker Change: In the second-hand car business section, we effectively integrate the resources of Zhijia and Ping'an Group to strengthen the business coordination with Day-Day Car.
Speaker Change: 例如通过利用之家加盟店和平安的线下团队增加天天拍车的4S店拍卖车员供应
Speaker Change: 并协助平安和之家的二手车团队,协助天天拍车在全国范围内扩大商户买家,刺激跨区域购车需求,从而有效提高了异地交易量和成交价,使天天拍车在控制成本的同时实现业务上的扩展。
Speaker Change: Thank you for watching!
Speaker Change: for Youth Heart Business.
Speaker Change: They've effectively integrated the resources of Autohome and Ping'an Group.
Speaker Change: Subscribe to The Sina Group with TPP
Speaker Change: For example, leveraging our franchise stores and Ping An's offline team, we've increased the supply of vehicles for auction from 4S to 5S.
Speaker Change: dealerships for GDP.
Speaker Change: At the same time, the Ping'an group and other homes used car teams.
Speaker Change: with Assisted GDP Expanding its Merchant Buyer Bank.
Speaker Change: Faith Nationwide
Speaker Change: driving demand for cross-regional car purchases. This initiative has effectively increased transaction volumes and prices and enabled TTP to expand its business while carefully managing costs.
Speaker Change: As a whole, Automotive Home has achieved a steady development in business in the third quarter. The company's innovative business has shown results in the early stages of the layout, and has been constantly optimizing and upgrading in practice.
Speaker Change: to drive the growth of online marketing and other income this quarter. With the deepening cooperation with Ping An Group, we are also gradually introducing more special products in various business scenarios.
Speaker Change: At the same time, we are also actively increasing shareholding returns through dividend sending and stock repurchase.
Speaker Change: In the future, we will continue to work to optimize cloud efficiency and provide strong support for the company's long-term high-quality development.
Speaker Change: Thank you for watching!
Speaker Change: Overall, our businesses made steady progress in the third quarter. Our innovative businesses laid out earlier have proven effective as we continuously optimize and expand them through practical applications. This achievement shows the growth of our online marketplace and others' revenues this quarter. As we deepen our cooperation with Ping An Group,
Speaker Change: We are gradually rolling out additional unique products across various business scenarios. At the same time, we are actively enhancing shareholder returns through dividends and stock repurchases.
Speaker Change: Looking ahead, we remain committed to optimizing operational efficiency to support our long-term, high-quality development.
Speaker Change: Next, I will tell you about the financial situation of the 3rd quarter of 2024.
Speaker Change: Please note that I will only use RMB as a currency unit in today's discussion, unless there is another explanation.
Speaker Change: Next, let me briefly walk you through the key financials for the third quarter of 2024. Please note that, as with prior course, I will reference RMB only in my discussion today, unless otherwise stated.
Speaker Change: In the third quarter, the total income was 1.7 billion yuan.
Speaker Change: Specifically, the revenue from media services is 3.26 billion yuan, the revenue from online services is 8.31 billion yuan, and the revenue from online marketing and other services is 6.18 billion yuan, which is an increase of 3.1%.
Speaker Change: Net revenues for the third quarter were $1.77 billion.
Speaker Change: Breaking it down, media services revenues were $326 million. Least generation services revenues were $831 million. And online marketplace and others revenues were $618 million, up 3.1% year over year.
Speaker Change: In terms of cost, the operating cost of the third quarter is 408 billion yuan.
Speaker Change: The total is 3.74 billion yuan
Speaker Change: In the third quarter, the毛利率 was 77%, and the same period last year was 80.4%.
Speaker Change: Cost of revenues in third quarter was $408 million compared to $374 million in the third quarter of 2023.
Speaker Change: Growth margin in the third quarter was 77% compared to 80.4% during the same period last year.
Speaker Change: In terms of revenue, the sales and market expenses for the third quarter are 8.77 billion yuan.
Speaker Change: 上年同期为9.35亿元
Speaker Change: The R&D cost is 3.39 billion yuan
Speaker Change: 上年同期為3.55億元
Speaker Change: The general and management expenses are 1.37 billion yuan, and the same period last year was 1.41 billion yuan.
Speaker Change: Turning to operating expenses, sales and marketing expenses in the third quarter were $877 million compared to $975 million in the third quarter of 2023.
Speaker Change: Product and development expenses were $339 million compared to $355 million in the Z-period of 2023.
Speaker Change: General and administrative expenses were $137 million compared to $141 million during the same period last year.
Speaker Change: In total, the third quarter of the car family's revenue is 0.83 billion yuan, and the same period last year was 1.66 billion yuan.
Speaker Change: The total net profit of the car is 49.7 billion yuan, which is 6.04 billion yuan in the same period last year.
Speaker Change: Thank you for watching!
Speaker Change: Overall, we delivered an operating profit of $83 million this quarter compared to $166 million for the same period of 2023.
Speaker Change: adjusted net income attributable to auto home was 497 million in the third quarter compared to 604 million in the corresponding period of last year.
Speaker Change: In the third quarter, we adjusted the fund and the stock price. The net profit of each share is 1.02 yuan.
Speaker Change: All were born in the same year, 1.23 years old.
Speaker Change: In the third quarter, the net profit of the US stock market was adjusted to 4.09 yuan and 4.08 yuan respectively, and the same period last year was 4.93 yuan and 4.92 yuan respectively.
Speaker Change: Thank you for watching!
Speaker Change: Non-GAAP basic and diluted earnings per share in the third quarter were 1.02 compared to 1.23 in the confounding period of 2023.
Speaker Change: Nangab's basic and diluted earnings per ADS in the third quarter were 4.09 and 4.08 respectively, compared to 4.93 and 4.92 respectively in the confounding period of 2023.
Speaker Change: 截止2024年9月30日, 我们的资产负债表持续表现强劲, 现金、现金等价物及短期投资合计为230.6亿元。
Speaker Change: In the third quarter of 2014, the cash flow from operations was 2.09 billion yuan.
Speaker Change: As of September 30, 2024, our balance sheet remained very strong with cash, cash equivalents and short-term investments of $23.06 billion. We generated net operating cash flow of $209 million in the third quarter of 2024.
Speaker Change: On September 4, 2024, the Board of Directors approved a new stock repurchase plan with a total amount of less than $200 million in 12 months.
Speaker Change: As of November 1, 2024, we have repurchased about 240,000 U.S. deposits, totaling about $6.7 million.
Speaker Change: Thank you for watching!
Speaker Change: On September 4th, 2024, our board of directors authorized a new share repurchase program under which we were permitted to repurchase up to $1,000,000.
Speaker Change: U.S. dollar 200 million of auto home ADF
Speaker Change: for a period not exceed 12 months thereafter, as of November 1, 2024.
Speaker Change: We've repurchased approximately 244,000 ADFs for a total cost of approximately USD 6.7 million.
Speaker Change: 此外,根据公司的股息政策,董事会已批准派发每股美国存托股1.15美元,或每股普通股0.2875美元的现金分红,将以美元支付给每股美国存托股。
Speaker Change: and the U.S. stockholders who registered on December 31, 2024.
Speaker Change: The total amount of dividends will be about RMB 1 billion.
Speaker Change: It is expected that the shares will be paid to the company by March 14, 2025 and March 19, 2025 to the shareholders of Putong and U.S.存托股
Speaker Change: This fully reflects the firm's firm confidence in its own business and future development, as well as the firm's promise to maximize shareholder returns.
Speaker Change: 1.15
Speaker Change: for ABS or US dollar 0.2875 for ordinary share payable in the US dollars.
Speaker Change: to holders of ADFs and ordinary shareholders of...
Speaker Change: as of the close of business on December 31st, 2024. This aggregate amount of the dividends will be approximately RMB 1 billion.
Speaker Change: It is expected to be paid to holders of ordinary shares and ADS of the company on or around March 14, 2025 and March 19, 2025, respectively.
Speaker Change: This reflects our strong confidence in our business and future development, as well as our strong commitment to maximizing shareholder returns.
Speaker Change: 以上是公司的财务数据汇总 下面我们开始问答环节
Speaker Change: The above is our financial summary. With that, I am now ready to open up the Q&A session. Operator, please.
Speaker Change: Thank you. We will now begin the question and answer session. To ask a question, please press star 1 1 on your telephone keypad.
Speaker Change: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.
Speaker Change: For more information, visit www.FEMA.gov
Speaker Change: We will now take this question from the line of Thomas Chong from Jefferies. Please ask your question, Thomas.
Speaker Change: https://www.youtube.com
Thomas Chong: Good evening. Thank you for accepting my question. We have seen a fierce price war and a positive policy to test and exchange. What impact does this have on the industry and your family?
Thomas Chong: Thanks management for taking my question. I would like to ask about the ongoing price war and the trade-in programs. What are the impact to the industry and autohome? Thank you.
Thomas Chong: 感谢你的提问,我来回答您这个提问
Speaker Change: The car industry has fought for the market share for about a year and a half. According to our observation, this trend has slowed down recently, but there is no sign of stopping in the short term.
Speaker Change: However, we can see that the ongoing price war has not led to an explosive increase in car sales. According to the latest data from the National City Union, retail sales in September and September were only 2.2% higher.
Speaker Change: The price war greatly damaged the profit margin of the car industry. This year, from January to September, the average profit margin of the car industry is 4.6%, which is 6.1% lower than the profit margin of industrial enterprises at the same time.
Speaker Change: Thank you for watching!
Speaker Change: 同時呢,金腰桑
Speaker Change: Due to the ongoing price war, there is also huge financial pressure.
Speaker Change: According to a report from the Chinese Automobile Transport Association on the survival of automakers in the first half of 2024, only less than 30% of automakers achieved sales targets in the first half of the year.
Speaker Change: And a large part of it is to achieve the sales target by price exchange.
Speaker Change: In addition, the share of gold and silver losers has reached 50.8%, which is more than half of the share of gold losers. At the same time, the share of single-store Mao Li
Speaker Change: The total also has a significant decrease, for example, in the case of new car business, the average loss of a single shop can reach 1.78 million yuan.
Speaker Change: Thank you.
Speaker Change: Okay, thank you for raising the question. We see that with major car companies fighting price wars to grab the market share, which has lasted for more than 1.5 years now. According to our observation, this trend has eased slightly recently, but there's no sign of ending in the short term.
Speaker Change: However, the ongoing price war did not bring the explosion of the car sales growth. According to the latest data from CPCA, retail sales increased by only 2.2% year-on-year from January to September. The price war has also greatly hurt the profitability of the car companies.
Speaker Change: From January to September, we see that the average profit margin of the auto industry was only 4.6 percent.
Speaker Change: much lower than the average level of the industrial enterprise profit margin of 6.1% in the same period.
Speaker Change: Meanwhile, dealers are facing tremendous operating pressure due to ongoing price war. According to China Automobile Dealers Association's survey report on the survival of the dealers in the first half of 2024, less than 30 percent of the auto dealers accomplished their sales target in the first half of the year, and a large proportion of them reached their sales target by exchanging price for volume.
Speaker Change: In addition, the proportion of dealers operating under the law reached 50.8%.
Speaker Change: expanding significantly compared with the same period of last year and the average total gross profit of a single store also had a large drop especially in the new car business with the average single store loss of 1.78 million yuan
Speaker Change: Overall, the price war in the car market has had a serious negative impact on car companies and dealerships.
Speaker Change: In this situation, the country has also introduced a policy to revive and update the car expenses, to further stimulate the potential of our consumption and promote the joint development of the two ends of the supply and demand.
Speaker Change: from a delay of 4 weeks since CPAC was created
Speaker Change: These policies give warm welcomes to the Workers' Association in member states.
Speaker Change: 新能源车国内零售的渗透率已经连续三个月突破50%
Speaker Change: In September, the retail sales of the new engine increased by 10.6% Overall, the wholesale sales of the new engine also reached the highest in the industry's history
Speaker Change: Based on this data, our new policies will help the automobile industry to regain confidence.
Speaker Change: Thank you for watching!
Speaker Change: Generally speaking, the price war in the auto market has caused the car enterprises and dealers to suffer more seriously negative impact. Under such circumstances, China has introduced a policy of trade-in and also upgraded the vehicle's wrapping to help release the consumption potential in an orderly manner and to promote the common development of both supply and demand side.
Speaker Change: From the data disclosed by CPCA and during the simulation of the policy, the auto market has been picking up recently. The domestic retail penetration of NEV has exceeded 50%.
Speaker Change: for three consecutive months. The retail sales of new energy vehicles since September increased by 10.6% from the previous month, and the wholesale of overall passenger vehicles hit a new record high for the same month, which helped to restore confidence in the auto industry.
Speaker Change: Thank you for watching!
Speaker Change: Thank you for watching!
Speaker Change: From last year to this year, there has been a fierce price war, which has led to...
Speaker Change: The profits are falling sharply.
Speaker Change: to a large extent, we are also affected by the industry to a certain extent.
Speaker Change: 但长期来看,随着价格战逐步趋缓
Speaker Change: 新能源汽车行业的持续的高速发展 新能源汽车行业的持续的高速发展 政府推出新的利好政策来支持车市的消费 政府推出新的利好政策来支持车市的消费 我们相信中国车市仍具备我们相信中国车市仍具备
Speaker Change: 长周期的增长空间也看好中国汽车工业 中国汽车行业能够长远的发展 我们也将和中国汽车行业一同健康的发展 谢谢
Speaker Change: For more information visit www.FEMA.gov
Speaker Change: The serious price war that lasted from last year to now has resulted in a serious decline of profit of the automakers and a contraction in the marketing budget of the OEM. And we have also been affected by the industry to a certain extent.
Speaker Change: However, in the long run, with the price war gradually slowing down, the continued development of the NEV industry, as well as the government's introduction of new favorable policies to support consumption, we believe that the auto market will have
Speaker Change: Good potential for future growth in the long run and we are also optimistic about the longer term development of China's auto industry and we will also be developing in a sound manner together with China's auto industry. Thank you.
Speaker Change: Thank you for watching!
Speaker Change: Thank you for watching!
Speaker Change: Thank you. Our next question comes from the line of Xiaodan Zhang from CICC. Please go ahead, Xiaodan.
Speaker Change: Thank you for watching!
Xiaodan Zhang: Hello, Mr. Wu, Mr. Zeng, Mr. Song. I have two questions to ask. The first question is about our new energy space station. We launched a satellite project this year. I would like to ask the management team to share the progress of our satellite project and how we should look at the expansion speed for the next two years. The second question is that we see that the business coordination between Zhijia and Ping'an is constantly deepening. What progress has been made so far? How should we plan for further cooperation in the future?
Speaker Change: So thanks management for taking my questions. My first question is on the new retail model of NABs.
Speaker Change: So could you please update us on the progress of the satellite plan and how should we think of the expansion pace for next year? And secondly, could you please give us more color on how we are going to look for more business synergies between Autohome and P&N Group? Thank you.
Speaker Change: Thank you. I will answer your first question.
Speaker Change: The total number of space stations and satellite alliance shops in 70 countries has exceeded 50.
Speaker Change: In terms of urban layout, the space station is mainly covered by mid- and high-rise buildings.
Speaker Change: 而卫星站多开在中低线城市
Speaker Change: We are using the 1 plus N model, which uses the space station as the core. This allows our service network to go down to the low-end cities quickly, forming a wide network connection, and helping the main base station to make the channel bridge in the empty cities.
Speaker Change: Thank you for watching!
Speaker Change: OK, thank you for raising this question. I'll firstly take the first question. At present, the auto homes, space stores, and the satellite stores altogether have already exceeded 50. In terms of the city layout, the space stores mainly covers medium to high tier cities, while satellite stores mainly covers medium to low tier cities.
Speaker Change: So this kind of one-plus-N model with the space door and the core, while surrounded by the satellite store, can make us quickly penetrate into the lower-tier cities with a network service and reaching out quickly to our clients.
Speaker Change: so as to facilitate the OEMs in their channels with uncovered cities.
Speaker Change: In terms of efficiency, we also help the host company to achieve cost efficiency optimization. This model mainly helps them to reduce the cost of channel production and improve the efficiency of sales. At present, the market feedback is still good.
Speaker Change: For Zhijia, it is also an increase in our income. With the continuous rise of the new energy car market penetration rate, Zhijia uses the space station and satellite telecommunication network not only to promote the upgrade of the new retail sales network from a single point to a comprehensive coverage,
Speaker Change: and achieve a steady growth of the new energy brand revenue. These increases continue to exceed the overall increase in new energy in the market, showing good market adaptability and competitiveness.
Speaker Change: For more information visit www.FEMA.gov
Speaker Change: In terms of the performance of the space stores as well as the satellite stores, we see that it actually facilitated OEMs to realize the optimization of their cost efficiency.
Speaker Change: Well, at the same time, it also helped the OEMs to lower their channel expansion cost while increasing the sales efficiency. And present, we see that the overall market feedback is very positive.
Speaker Change: Well, at the same time, it also generates extra revenue for all the homes.
Speaker Change: Well, at the same time, the NEV brand revenue steadily grows. Well, at the same time, it continues to outperform the overall NEV market, showing very sound market adaptability and competitive edge.
Speaker Change: Next year, we will continue to expand our power generation model on two fronts.
Speaker Change: On the other hand, we need to make the current e-commerce more solid so that the current e-commerce model can be constantly upgraded. We have some explorations, such as strengthening the integration of industries, the introduction of financial insurance, and making their business development more solid. So there are two lines. One is the increase in quantity, and the other is more exploration and operation of the existing e-commerce model.
Speaker Change: Thank you. Thank you.
Speaker Change: So looking to the future, we're also going to walk by both legs. On the one hand, we're going to grow the number of the stores. We're going to make our business model even more sound and robust.
Speaker Change: so as to gain more recognition from the OEM.
Speaker Change: The existing franchised stores will keep upgrading, including the integration of the industrial chains as well as the in-store financial insurance.
Speaker Change: So that's actually the franchise store, their business expansion can cover more wide range of the area. So actually, both areas, one is to grow the volume, the other thing is to have more explorations and upgrading in business models.
Speaker Change: Thank you for watching!
Speaker Change: Your second question is about the co-operation between Zhijiang and Tiananmen Square.
Speaker Change: The modern forces and platforms, such as Baichenganas security assurance group, and other kind of
Speaker Change: We have co-organized more than 500 offline car shows covering 250 cities across the country focusing on the off-road market to create trading scenarios and create a competitive advantage.
Speaker Change: Thank you for watching!
Speaker Change: As for your second question, which is about the synergy between Autohome and PNPMC, we see that in the traditional business, for example, we have co-hosted the 100 cities trade-in for new campaigns.
Speaker Change: so that we can leverage on the strength of the P&I offline team and to reach out to the uncovered cities of auto home. We also jointly launched more than 500 offline auto shows covering more than 250 cities nationwide so as to focus in on the lower tier market to create transaction scenario and to build differentiated competitive edge.
Speaker Change: At the same time, I believe that the country's policy of saving and renewing is also to integrate the safety of car owners' service capabilities and provide the full package of insurance I mentioned just now to bring car-consumption one-stop service to the doorstep of consumers and provide car insurance for consumers.
Speaker Change: Thank you for watching!
Speaker Change: In terms of the new retail, we also leveraged on PS resources and also piloted with our out-of-home in-store financial services
Speaker Change: including the financial insurance and further expanded the financial product offerings.
Speaker Change: Auto
Speaker Change: buyers and to provide what I mentioned before, the price guarantee heartfelt benefit package. So as to bring the one-stop service to the doorstep of the consumers and to provide the car purchase guarantee for the consumers.
Speaker Change: Thank you for watching!
Speaker Change: In terms of data products, we also combined the advantages of Ping An Group in the after-sales scene and offline services.
Speaker Change: They launched the digital service of after-sales services, such as after-sales service, after-sales assistant, and an ambulance. They use the offline team of Ping'an Group to provide one-to-one consultations for the users of the ambulance service in multiple scenarios and effectively promote the conversion of transactions.
Speaker Change: Thank you for watching!
Speaker Change: As for the data product, we also leverage on the stress of PM group in aftermarket scenario as well as offline service capabilities.
Speaker Change: We launched the outbound call platform, the maintenance assistance, as well as digital services for the 3DM vehicles.
Speaker Change: We also take good use of the offline team of Ping An so as to provide one-on-one consulting services for the trading card users at multiple scenarios so as to effectively promote conversion.
Speaker Change: For the second car, we combined it with other resources to strengthen the business coordination of daily driving.
Speaker Change: For example, the agents of Ping'an Motor Company help TianTianPai to increase the number of drivers from 4S stores. Ping'an Rental Team helps TianTianPai to increase the cooperation between merchants and buyers. Renting will effectively increase the transaction volume and help TianTianPai to improve its service capability and expand its business.
Speaker Change: Thank you for watching!
Speaker Change: In terms of the used car business, Autohome has integrated the resources with Ping An Group to strengthen the synergy of TTP. For example, the Ping An Auto Loan agent facilitated TTP to increase the vehicle sources from 4S dealerships.
Speaker Change: and the P&L leasing team also helped the TTP to increase the cooperation with the merchants. All of these measures effectively increase the transaction volume and also enabling TTP to enhance their service capabilities for further business expansion.
Speaker Change: Overall, we will combine the advantages of online and offline from Zhijia. We will continue to explore new cooperation models and expand the scope of services.
Speaker Change: Thank you. It's a pleasure to be here.
Speaker Change: So, generally speaking, we will actually leverage on both online as well as offline strength of PM group. We will also explore more business models so as to expand the possibilities of our service delivery.
Speaker Change: Thank you.
Speaker Change: https://www.youtube.com
Speaker Change: Next question. Thank you. Our next question comes from Richie Sun from HSBC. Please ask your question, Richie.
Richie Sun: Mr. Wu, Craig, Sterling, good evening. Thank you for giving me the opportunity to ask two questions. The first question is, what is the management team's opinion on the 2025 second-hand car market trend?
Richie Sun: How do you see Tiantian Pie's goal for next year? The second question is, in terms of shareholding returns, what progress will the company make? And what are the future plans?
Richie Sun: and how does management view the goal for Tiantian Pai next year? Second of all, what has also been made in terms of shareholder return progress and what is the plan for the future? Thank you.
Speaker Change: Thank you for your question. Regarding the second-hand car, as we mentioned earlier, the price war in the new car market has been going on for more than a year. The pressure on the second-hand car market is quite big.
Speaker Change: The price of the new car market continues to hit the seafloor. Users of the second-hand car...
Speaker Change: will be more hesitant. This has also caused the domestic second-hand car market to be relatively low for several consecutive quarters.
Speaker Change: 车商的收车的积极性呢是
Speaker Change: Although there is this kind of expensive policy, this kind of policy stimulation, we see that from January to September 2014, the accumulated transaction volume of the second-hand car increased by only 5.37%, which is much lower than last year.
Speaker Change: We have seen a lot of good policies, but we also see that the overall profit of second-hand car manufacturers is not good. The single-car transactions are basically in a state of loss.
Speaker Change: In September, the price of the second-hand car was 6.42 million yuan, which is 0.12 million yuan lower than the same period last year.
Speaker Change: In the 5-100,000 yuan price range, the demand for the car model is relatively high, but the profit space on the car is limited.
Speaker Change: Thank you. Thank you.
Speaker Change: have not been significantly improved. So in this situation, we think that next year, the price of this new car will still not be significantly improved.
Speaker Change: to stop very soon. So for the 20 cars, next year is also a very challenging year.
Speaker Change: We shot videos like this every day because....
Speaker Change: The power of the whole country's replacement policy has caused a large number of cars to flow to the 4S store. So now a short-term goal for Day Day Up is that we may be able to
Speaker Change: to serve the C2B auction.
Speaker Change: But now there are more opportunities for B2B auctions. So for Day Day Up, we want to strengthen our ability to make some breakthroughs in B2B and C2B. This is our goal for next year.
Speaker Change: Thank you.
Speaker Change: Okay, thank you for raising this question. Let me firstly take the assess the question
Speaker Change: Like I said before, you know, based on the
Speaker Change: More than one year price war of the new car market. It do actually imposes a huge pressure on the used car market.
Speaker Change: So, with continuous downward pressure of the new cup price,
Speaker Change: We see that the users are quite reluctant to make their purchase. As a result, the used car market in China for several consecutive quarters continues to be sluggish.
Speaker Change: And you can see that the auto dealers, they're not very enthusiastic in their car purchase.
Speaker Change: Even though there are policy updates such as scrappage,
Speaker Change: whoever
Speaker Change: as well as what you have observed from January to September of 2024, the cumulative trading volume of the used car only increased by 5.37%, which has greatly declined comparing with the same period of last year.
Speaker Change: Even though their policy of preferences
Speaker Change: We do see that profitability of the automakers are not very good. We can see that the single car trading is due in losses.
Speaker Change: And we see that in September, the used car trading average price is only 64,200 RMB, which is a drop of 1,200 RMB versus the same period of last year. And the strongest demand comes from the price range of 50,000 to 100,000.
Speaker Change: So talking about the future, we see that actually for TTP, you can see that a lot of the car vehicle sources are actually rushing into the 4S dealership stores. Because next year, we expect that the new car price war will not end immediately. There will still be a big challenge for the used vehicle.
Speaker Change: So for TTP, actually, our previous trend is with the C2B auction market. But now, we see that there will be more opportunities on the B2B market.
Speaker Change: So besides the previous trends on C2B, we're going to make more breakthroughs and transformations in the B2B market so as to tap into the potential in the B2B sector.
Speaker Change: Thank you for watching!
Speaker Change: The second question is about shareholder returns. Zhijia has been working hard to increase shareholder returns in the past two years. Last year, we announced a dividend of at least RMB 1.5 billion every year.
Speaker Change: just announced a new 100 million, so this year we have achieved this goal.
Speaker Change: On top of that, in September...
Speaker Change: The board also approved a $200 million, no more than $200 million, stock repurchase.
Speaker Change: in this way to enhance and restore the market.
Speaker Change: to increase the shareholder's return. I believe we are leading in this area in the market.
Speaker Change: In the future, we will not only focus on these two aspects. We will also look for new possibilities and opportunities to strengthen our efforts in shareholding return.
Speaker Change: Thank you for watching!
Speaker Change: As for your second question, which is about the shareholders' return, we see that Autohome has always been very dedicated to increasing the return to our shareholders.
Speaker Change: Like we said before, last year we actually announced a shareholder's return plan for about $1.5 billion, and we just announced an extra $1 billion dividend payout as a result altogether. There will be $1.5 billion dividend payout to our shareholders.
Speaker Change: And our board also, actually in September, adopted a $200 million USD share buyback plan.
Speaker Change: We also have adopted many measures to reduce the volatility of the share price.
Speaker Change: So we think that currently we have been using Dividend Payout as well as Shares Repurchase.
Speaker Change: to enhance the return to our shareholders while quite taking the lead in this area. So looking into the future, we will continue to look into the other possibilities so as to enhance the chance to increase the shareholders' return. Thank you.
Speaker Change: Thank you for watching!
Speaker Change: Thank you. Our next question comes from the line of Brian Gong from Citi. Please go ahead, Brian.
Speaker Change: Thank you for watching!
Brian Gong: Thank you for accepting my question. I have two questions. The first one is that you mentioned that the bridge war might continue. So I would like to ask, under this background, how do you see the future of China?
Speaker Change: The budget schedules for the zoo in its fourth quarter as well as 2021 The budget schedules for the zoo in its fourth quarter as well as 2021 The location guard divises the area The Director of the ILO Northeast Regional Office
Speaker Change: The second question is, the management team just mentioned that there is a lot of pressure from the retailers. Recently, we started to renew the contract with the retailers, right? So I would like to ask about the progress of the renewal of the contract.
Speaker Change: Thank you.
Speaker Change: Thanks, Glenn Zeng, for taking my question.
Speaker Change: and the management just mentioned about price war, which continues for the auto industry. So, under this background, how does management think about OEMs as budget for the first quarter and for next year? And second question is about contract renewal with dealers. And what's the latest progress?
Speaker Change: and how does management think about the overall contract renewal for this one. Thank you.
Speaker Change: Thank you. The first question is about the advertising budget of the mainframe. From the fourth quarter to the end of the year, the sales performance of the mainframe may also have a great impact on their budget.
Speaker Change: For those who are close to the sales target, they will increase their efforts to promote sales.
Speaker Change: 也有可能是直接把这个预算呢,也有可能是直接把这个预算呢,就是
Speaker Change: to bookstores and China E-commerce.
Speaker Change: They may be more sensitive to costs and cut some of the investment. In general, we can see that the main airport is relatively cautious in terms of advertising budget this year.
Speaker Change: I think it will be better in the future. We will have to wait and see. As time goes by, especially after next year, we will have to wait and see what happens in the main stadium.
Speaker Change: Okay thank you for raising this question. The first one is about the OEM advertising budget as well as the outlook for the next year.
Speaker Change: We are already approaching Q4, which is actually the end of the year, and we see actually the sales performance of the OEMs are also coming to an end.
Speaker Change: For those who are expected to hit the sales target, they will actually promote their terminal sales or directly subsidize the consumers with their budget so as to incentivize their transactions.
Speaker Change: So, generally speaking, the OEMs, they are very precautious about their advertising strategy. And we think that looking into next year, they will more reasonably balance their advertising budgeting as well as the price for subsidies.
Speaker Change: Next year things might get better, but it still depends. We will still see how they will perform after next year. Thank you.
Speaker Change: As for the renewal of the dealership car meeting, we will start it around this time. It's like this every year. It will last until the first quarter.
Speaker Change: Based on historical data, the situation in Xuxian has always been relatively stable.
Speaker Change: Currently, Zhijia is also covered by most of the retailers. This is also the market. Retailers' overall recognition of Zhijia's car sales service and reliability are still relatively high.
Speaker Change: From our side, from Zhijiang, we have always been committed to improving the product from the car dealership. Through more data and technological means, we can enhance the quality of service.
Speaker Change: He offers investment Taking advantage of financial services In order to improve accuracy matched out and trades with high-quality
Speaker Change: This year, we will cooperate more widely with the group to provide more diversified rights and interests tools to help business owners deal with intense market competition and profit challenges. We will update you on the specific progress later.
Speaker Change: Thank you. Thank you. Thank you.
Speaker Change: As for the contract of renewal for the lease subscription package, actually this will initiate at the end of the year and will last until the first quarter of next year. From historical data, you can see that the contract of renewal of Auto Home for lease subscription package has always been very stable. And present, Auto Home has already widely covered most majority of the dealers on the market.
Speaker Change: which also shows the overall recognition of the dealers to our service as well as their reliance on our service.
Speaker Change: As one of our core services, you can see that Autohome will continue to leverage on big data technology as well as better service quality to actually further empower the dealers and to further enhance the precision of the matchmaking as well as the efficiency of the conversion.
Speaker Change: Well, at the same time, this year we'll also continue to cooperate with Ping An Group to further provide more diversified instruments for our dealers so as to facilitate them to cope with the fierce market competition as well as the challenge of the profit margin. In terms of the progress of the contract renewal, we will keep you updated about the latest progress. Thank you.
Speaker Change: Thank you. There are no further questions at this time. I will turn the conference back to the management for closing comments.
Speaker Change: 感谢大家参加今天的会议,期待下一次业绩的电话会上能够再与大家交流公司的最新发展
Speaker Change: 如果您有任何的问题或建议,欢迎随时与我们联系。谢谢。
Speaker Change: Thank you very much for joining us today. We appreciate your support and look forward to updating you on our next quarter conference call in a few months time. In the meantime, please feel free to contact us if you have any further questions or comments. Thank you very much, everyone. Thank you. Bye bye.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.