Q1 2025 Autohome Inc Earnings Call
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[inaudible]
Song Yang, Thomas Chong, Craig Zeng, Sterling Song
[music].
Okay.
Speaker Change: Ladies and gentlemen, thank you for standing by for auto homes first quarter 2025 earnings Conference call. At this time all participants are in listen only mode. A question and answer session will follow management's prepared marks.
As a reminder, this conference call is being recorded.
You have any objections you may disconnect at this time.
Mr. Song: Live and archived webcast of this earnings conference call will also be available on <unk> IR website. It is not my pleasure to introduce your host selling some older Hens IR director. Mr. Song. Please go ahead.
Song: Thank you operator, Hello, everyone and welcome to older homes fourth quarter Huntington Five earnings conference call.
Song: Today <unk> distributed its earnings press release, which can be found on the company's IR website at <unk>.
Song: <unk> Dot auto home Dotcom dossier.
Song: Joining me on today's call are Chief Executive Officer meet some young our Chief Financial Officer, Ms quite yet.
Song: Management will go through their prepared remarks, west, which will be followed by a Q&A session, where they would be available to answer all your questions.
Song: Before we continue please note that the discussion today will contain forward looking statements made under the safe Harbor provisions of the.
Song: Private Securities Litigation Reform Act up 1995.
Song: Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.
Song: Potential risks and uncertainties include but are not limited to those outlined our public filings with the U S.
Song: It's a great change commission and the Hong Kong Stock Exchange Auto home does not undertake any obligation to update any forward looking statements, except as required under applicable law. Please.
Song: Also note that auto home earnings press release, and this country's call Cody.
Song: Discussions of certain non-GAAP financial measures. The reconciliation of the non-GAAP measures to the multi rapidly comparable GAAP measures can be found earnings release.
Young: I'll now turn the call over to other homes the old young for opening remarks. Please go ahead Ms Young younger.
Song: Okay.
Speaker Change: So I guess on kayak.
Song: Oh gosh.
Song: I got tangled imaging tender.
Song: Thank you Hello, everyone. This is sue.
Song: Yeah. Thank you for joining our earnings conference call today.
Song: D G dog Aman <unk> Humphrey, Yeah, what's useful somewhat Washington, Utah.
Song: Gotcha, that's useful gesture Indians harsh and cobalt when bought aging Shan Shan Shan Shan Roseville fungi, John yet being she doesn't alcohol the Jedi syndrome.
Song: In the first quarter, we concentrated on strengthening the fundamentals of our business and on your hunting our innovative initiative.
Song: Our solid foundation, we continue to drive breakthrough innovation that would be advancing our online to offline integration strategy and achieving solid progress.
Speaker Change: Peaceful it yourself, Amit on the Congo, a dry cough and cold Lake.
Song: Yes, Angie young dolphin.
Song: John do you want.
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Song: So what should go job well done.
Song: Football cheerful Tangshan, though your question sheet, Saudi your thoughtful that you have.
Song: And go sell them.
Song: In terms of building our foundation, we focus on expanding our product offerings and enhancing the user experience to deliver greater value and establish a solid base.
Song: Our content, we enriched our content portfolio of adding Cabo logs champion on other broader ultimate heap related content. We also introduced a robot section our ATP homepage is trending into the smart technology space meet our users' diverse needs and our user experience we systematically.
Song: You had content so upgraded live streaming features to enhance the appeal of our professional content. We also launched the docking price too, which consolidates government subsidies and the OEM is happy.
Song: Copy users make a buying decision more easily and efficiently.
Song: Hi, you know would you judge yourself digitally donor T cells Hudson, well done Chunghwa AI sandal email.
Song: Caught us singing so yeah, well towards China E E.
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Speaker Change: Jacob Louisiana, Chenier job gains out of Washington that Yamana sort out you're taking them, but yeah, we got a whole bunch of Ghana, Shenzhen Chipotle neat yoga, the Shanghai <unk> phone for the Fintech gesture, Saudi golf understood yet hold economy, so what casual attire.
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Speaker Change: Building on our solid fundamentals were actively driving technological innovation continuously deepening the application of AI and expanding our new retail business to establish engine for future growth currently our AI technology has already been successfully implemented across our.
Speaker Change: Highly leased membership products.
Speaker Change: Smart assistance youth Pathmark shoes in the new media, notably at the end of March again, we upgraded the auto home ADP with AI Smart assistant powered by deep sea and our own proprietary data resources.
Speaker Change: <unk> significantly enhances the user experience in the automotive vertical and efficiently improves efficiency in use or do you see them, making.
Speaker Change: Meanwhile, our new retail business is batteries pending to date, we have nearly 200 odd homes space and light franchise doors, you operation, providing local partners with cutting edge technological capabilities premium offline resources and a robust ecosystem support to drive mutual growth.
Speaker Change: There are other parts of the patient.
Speaker Change: Auto show in Thailand, We're also actively exploring ways to support Chinese automakers.
Speaker Change: And in overseas markets.
Speaker Change: Yeah.
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Speaker Change: Some AG Daniel Butcher niches home agent <unk>.
Speaker Change: Tony Ostrom, Yanai Ormat, Sheila Hi, now the hernia surgery, some photos changing yet.
Speaker Change: No that's useful Chang buybacks in Thailand.
Speaker Change: So what's her father and son could she goes you can get a lot of intent or vaccine geared Shanghai shouldn't apology right.
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Speaker Change: Room set up all of a sudden that'd be one.
Speaker Change: Chavez cohorts you go country EMEA can pin you.
Speaker Change: Got it helpful.
Speaker Change: All of them began.
Speaker Change: Also automotive media and has evolved far beyond in the two decades since our establishment.
Speaker Change: Cumulated, a massive amount of industry data abandoned industry expertise Aladdin strong user base and extensive brand recognition today as the Chinese auto market undergoes profound structural changes we've built a data driven intelligence service platform across new retail smart.
Speaker Change: Technology, and the broader automotive ecosystem driving a comprehensive upgrade to the automotive consumer.
Speaker Change: Looking ahead, we remain committed our user needs continue to strengthen our foundation actively explore new emerging factors and build a fully integrated online to offline ecosystem for services, providing consumers and our clients a more comprehensive and convenient one stop service.
I Ching: Okay got it I Ching CFO tenure Shan Shan Shan Shan <unk>.
Speaker Change: We got our own N D G to the yellow tie wishing club.
Speaker Change: With that I'll now turn the call over to our Chief Financial Officer, Greg Jensen for a closer look at our first quarter of 2025 operating and financial results.
Speaker Change: Yeah, Hey, I'll hold off.
Speaker Change: What are the T cells with Yafei Appleton yen.
Speaker Change: Hello, everyone.
Speaker Change: Does that flow of ultra holder.
Speaker Change: Women <unk> seem to quite yet.
Speaker Change: Jimmy I shouldn't you try it and then on the Triple.
Speaker Change: <unk> seen for the shopper shops.
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Speaker Change: Andrew witty Shang dragging their industrial jobs, you trouble. So you don't put about changing shirts of it yet.
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Speaker Change: So far the art Trump's tweet on dragging you don't quite yet.
Speaker Change: Yeah.
Speaker Change: Yes, I think George answered if Abu <unk>.
Speaker Change: In the first quarter, we focused on key new car launches and upgraded the live streaming of our professional content.
Speaker Change: Driving new card debuts initial showcasing an initial test drives.
Speaker Change: The timeliness and it reached a professional content creators and numerous immersive consumer experience for example, our new car Express news program organized and customized live streaming of new car launches attracting more than 200000 in the actions collectively the related topic also.
Speaker Change: Box user generated content distribution across multiple third party platforms, extending the reach of our professional content beyond the traditional audience. Today, we have achieved through live streaming coverage for all asset class new car launches.
Joe: Hi, Joe.
Speaker Change: Hi.
Speaker Change: Fuller.
Speaker Change: Tito and yeah, Todd you can gather in total.
Speaker Change: They truly are feature church alethia.
Sheila Hi: Sure Sheila.
Sheila Hi: Trade drilling dry you shouldn't do a friend's children do that came in and put them.
Speaker Change: Oh sure it could.
Sheila Hi: Sure Jim.
Sheila Hi: You've got the audio tour.
Sheila Hi: They do that their long term Heidi.
Sheila Hi: <unk> mobile should you can sure she heard you.
Sheila Hi: I'll tell you you don't Dan Junius adult.
Sheila Hi: She general basket driver for me thumbs down, but I'm just should empire.
Sheila Hi: How easily she patients.
Sheila Hi: In addition to our professional Congress. We also introduced a variety of programs such as motor you view that.
Sheila Hi: And the Grand tour for Atms interactive platforms.
Sheila Hi: To share and connect all of that driving experiences and marking our extension of our content coverage from specialized automotive topics to broader higher lifestyle and culture. This also integrates the future trends of smart technology into our Campbell Fleming, our diversified and multi dimensional.
Sheila Hi: Our content ecosystem. According to Klas mobile our average mobile da use reached 76 on $92 million in March 2025 up 10, 8% from the same period last year, reflecting our sustained growth in user scale and expanding platform.
Sheila Hi: Louis.
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Sheila Hi: Yes.
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Sheila Hi: Store shortage issue.
Sheila Hi: <unk> share in chocolate shake out Charlie <unk>, who traded at home.
Sheila Hi: The Yahoo, Hugo Chenghai Egencia cultural food trickier.
Speaker Change: Christiana Yahoo chat uncertainty Mitra.
Sheila Hi: And the mobile.
Speaker Change: With him will meet that Chunghwa Buchina Artichoke, Jack will you end up so she is making downloads yet.
Sheila Hi: Internet and data shake out right now.
Speaker Change: Doyle, who creaky adopter Yahoo. They try it.
Speaker Change: Is it all <unk>, Paul Hudson Vishal that neither humulin emptying has also tricky paschal usual Toni dealt with at Outback and <unk>.
Speaker Change: Turning to <unk>, our new retail business introduced the pie for me service model that integrates online and offline services with a focus on the user. This model combines export recommendation real time vehicle demonstration wildlife streaming yet how many patients that were underpriced.
Speaker Change: Transparent online pricing and a multi vehicle test drives by real car owners back netting every stage of the buying process. We offer users a one stop purchasing experience across multiple brands.
Speaker Change: The progress easier and more cost effective currently we've established 29 auto home baseball stores and by 170 franchised satellite stores nationwide forming.
Speaker Change: Strong offline networks, enabling more users.
Speaker Change: The professionalism and convenience of our services in the first quarter total revenues from <unk> <unk>.
Speaker Change: Including those from our new retail business increased by 72, 6% year over year.
Speaker Change: Half of them, yet well Merchandised chairman, Todd taking keepsakes chewed on chunky.
Speaker Change: Chunky.
Speaker Change: Yeah.
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Speaker Change: Drew.
Speaker Change: So you're going to continue.
Speaker Change: Sure.
Speaker Change: Aig's <unk> thoughts.
Speaker Change: I'll, let Neil or Cook Duboeuf hawkish on hold up.
Speaker Change: Andrew its usual.
Speaker Change: Sure.
Speaker Change: Sure Josh Okay Gotcha.
Speaker Change: So sundar Oswald choppy DRP and yet.
Speaker Change: On the <unk> ASO sure sure no National Congress Geocarpy, Bobby Garcia <unk>, She Yoshito Yoshiaki rollout, Joe you can pay down, especially in China.
Speaker Change: Can you at all or municipal use him. He can show Tobey Thunder chop at New Wales.
Speaker Change: Youngsters yourself Ait's was that torch hunting.
Speaker Change: E <unk> months, we opened <unk>.
Speaker Change: Sean Zhang from most of your policies.
Speaker Change: On the digital front, we are advancing the comprehensive upgrade of our products powered by deep sea specifically in marketing we have transition from the traditional manual design in the route based approaches.
Speaker Change: Native and a data driven intelligent parrot.
Speaker Change: Leveraging regenerative AI.
Speaker Change: Deal with our end to end marketing and sales team to deliver more precise and efficient services, while membership product, we deeply integrated deep six open source architecture to continuously enhanced AI capabilities utilizing AI enabled cost reduction fuller optimization and decision support.
Speaker Change: The more in Paris, and operational assistance, so our business partners, our ARCC powers, New media marketing to Max condensate and the live streaming based channels to acquire consumers significantly improving the operational efficiency and helping <unk> achieve higher quality traffic conversion.
Speaker Change: In addition to address the complexities of nonstandard used car transaction, we launched that used car buyer.
Speaker Change: Buyer.
Speaker Change: Pro which defines that labeling.
Speaker Change: Standard product packs and analyzes user needs pretty effectively solve problems for our transaction matches and the cost of lack some difficulties in the <unk>.
Speaker Change: First quarter revenue from data product increased by over 5% year over year, we will continue to deepen the application of AI across multiple scenarios to better address user demand and drive business model innovation and efficiency.
Speaker Change: That ASO chip yield flat.
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Speaker Change: You can hear in petrol copying heights shoot out on strategic fronts.
Speaker Change: From pumping how soon she cancer Youll page yes.
Speaker Change: Yes.
Speaker Change: Each of the woods yet.
Speaker Change: When we hit our Kenyan petrol.
Speaker Change: The Canadian dollar.
Speaker Change: Towards that user choices being.
Speaker Change: In Q2 o'clock redo the Australian industry shootings in Hawaii, Kindrence papers home Trojan only that you can talk about.
Speaker Change: Scott is a go shop.
Speaker Change: Hi.
Speaker Change: Our used car business, we are building a collaborative <unk>.
Speaker Change: Our ecosystem around the used car transaction chain online, we established a cross platform coordination mchaney them between auto home and the TTP to optimize resource allocation and risk and ensure a consistent user experience offline, we collaborate with TTP dealers and at home.
Speaker Change: <unk> doors.
Speaker Change: And premium inventory sourcing and the implements refined layers management up used car resources based on vehicle condition pricing and other factors to accurately match the inventory that's different dealer capabilities, creating a highly efficient.
Used car sourcing platform.
Speaker Change: One here, yet or maybe just add Todd you've gone to US yes, it's unchanged rules are final.
Speaker Change: Since earlier chip tissue, taking China, Lord <unk> Seth.
Speaker Change: That's the question Joel.
Speaker Change: Sure. Yes, you can see for hematologic, Tien <unk> keto tree, making nordictrack internally going out taking tru <unk>.
Speaker Change: So it keeps us on heightened.
Speaker Change: The Yahoo, Hukou tactical yields with us champion of Hu <unk>.
Josh: Thank you Josh.
Josh: In summary, we've been vigorously implementing our new strategy.
Josh: Integrated development of ultra operation and continuously advancing execution in this process, we have been constantly strengthening our business foundation and cultivating new growth drivers, we are striving to transform from a pure automotive media vertical into a comprehensive auto life.
Josh: Style ecosystem.
Josh: That is much closer to that transaction and enhance the global automotive consumers ownership experience with.
Josh: Evolution will allow us to deliver superior products and services to users and clients.
Josh: <unk> long term value for our shareholders.
Josh: Well I, sometimes that yet so as Archie said to John Ali Iranian easy to that throughout how would you.
Josh: <unk>, which I'm not engender tolerant <unk> renminbi. So we hope you dominate fulfilling for me.
Josh: With that please let me briefly walk you through the key financials for the first quarter 'twenty 75. Please note that I'll reference RMB only in my discussion today, unless otherwise stated.
Josh: Easy to show routes on low Asia for the E <unk>.
Josh: Making a fool showroom audience, sorry U S. Joseph who will total way ILUVIEN. So thank.
Speaker Change: <unk> would you.
Speaker Change: <unk> turned our back when you are.
Speaker Change: Net revenues for the first quarter were $1 45 billion breaking it down media services revenues were 242 million leads generation services revenues were $645 million and online marketplace and others revenues were $566 million up 2% year over year.
Speaker Change: Talking about the Permian easy, though yet and yet you know U S.
Sean Zhang: Sean <unk> U S D.
Speaker Change: <unk> averaged just curious about it.
Sean Zhang: Sean in hone QA passenger fashion heat inside.
Sean Zhang: On cost cost of revenues in the first quarter was $316 million compared with $301 million.
Sean Zhang: Our expanding period last year gross margin in the first quarter was 78, 3% compared to 81, 3% during the fourth quarter last year.
Sean Zhang: So Angela Zhao Chief digital yearly room audio sensor yet Sean in from Chile Art Angelo yet crucial you Tito together in counter <unk>. So there are E.
Sean Zhang: Sean you enhance your base sedan Youll see you at.
Sean Zhang: Overall, we delivered an operating profit of 233 million in the first quarter compared to $276 million for the same period of <unk>.
Sean Zhang: Last year adjusted net income attributable to auto home was 421 million in the fourth quarter compared with $494 million in the corresponding period of 2024.
Speaker Change: Thank you, Tim Tebow Campbell make with junior at Gmail, India.
John: John <unk> here.
John: Digital Jean children keep her time gourmet.
John: Watson, who generally rent from Bofa and Youll see that.
Speaker Change: So it's Andy how are you John Hong Chief from Bofa than buyer.
John: Forget each year.
John: non-GAAP basic and diluted earnings per share in the first quarter were both <unk> 88 compared to one point there are two in the corresponding period of 2024, non-GAAP basic and diluted earnings per ads in the fourth.
John: Quarter was 354% and three one.
John: 50.
John: Two respectively, compared with $4 zero, eight and 407, respectively in the corresponding periods alternatives than before.
John: Yes.
John: Central Europe.
John: Dr Shaheed Gotcha, and Chongqing, Shenzhen Tianjin the Yahoo.
Speaker Change: So do you have a <unk> user Julien.
John: <unk> also mentioned email king of Aes.
Speaker Change: March 31st 2025, our balance sheet remains robust with cash cash equivalents and the short term investments of 21 93 billion. We generated net operating cash flow of 135 million in the first quarter.
Speaker Change: So the answer is yes.
Speaker Change: Hey, Peter on the Aesop Charlotte again, they don't want to push our imaging that Sunoco Callaway go to you.
Speaker Change: Th arm.
Speaker Change: We golar <unk> make Watson vocal, but so in general you have edr by year.
Speaker Change: On September four 2024, our board of directors authorized a new share repurchase program under which we are committed to repurchase up to USD $200 million of auto homes for a period not to exceed 12 months thereafter as of May the second 2025.
Speaker Change: Purchased approximately 478 million.
Speaker Change: So our total cost of approximately U S dollar of $128 million.
Speaker Change: Charter goes to that household you Faisal Samuel and with cash event.
Speaker Change: So the above is our financial summary.
Speaker Change: We are ready to open up the Q&A session operator.
Speaker Change: To ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: Our first question comes from the line of Thomas Chong from Jefferies. Please go ahead. Your line is open.
Thomas Chong: Well it sounds like if I didn't say, it's all of it.
Speaker Change: Well be at Goldman Sachs.
Thomas Chong: But it's also easy to the heart.
Thomas Chong: Yes.
Thomas Chong: Sand control.
Thomas Chong: Yes.
Thomas Chong: Some other use.
Thomas Chong: Okay.
Thomas Chong: Oh sure sure.
Thomas Chong: Bomber.
Thomas Chong: The ultimate in Tls.
Thomas Chong: I understand that.
Thomas Chong: Kind of all people.
Thomas Chong: Since opt in Louisiana.
Thomas Chong: Yes.
Yeah.
Speaker Change: Good evening, Thanks management for taking my question. My first question is about the alcohol industry.
Thomas Chong: Perfect.
Thomas Chong: Meanwhile, in Q1, almost the invitation to the sector and also home whats the management expectation about trying to buy industry outlook and my second question is.
Thomas Chong: About the retail.
Thomas Chong: Management comments about the progress so far and our plan going forward. Thank you.
Thomas Chong: How that.
Thomas Chong: Kind of hinting that he or she also while Asia franchise shops.
Thomas Chong: It all itchy groceries on children.
Speaker Change: Thank you for your question I am sorry, Yeah. Let me answer your question first let me analyze the characteristics of the markets for Q1.
Speaker Change: Joe Shan Shan Shan.
Jonathan: Jonathan Chine MPL XI in total done central phone.
Speaker Change: Also in Asia.
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Speaker Change: Daniel Shoshonean Geocaching, Toby shot pattern, the sharp shimmer and shine out can be gender bias.
Speaker Change: Chinas Chevron in Thailand.
Speaker Change: Essential frontline them.
Speaker Change: First the overall new car sales through that with new with new energy vehicles that is an easy standing out although their growth rate has slowed according to official data Q1s auto sales increased by 6% year on year.
Speaker Change: <unk>.
Speaker Change: This internal combustion engine vehicle sales that is ice's vehicle sales continued to decline down 12% year on year, while EV sales grew by 36% year on year. However, this is slower than the growth rate of over 40.
Speaker Change: Percent.
Speaker Change: <unk> in the second half of last year.
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Speaker Change: Any thoughts on what you do.
Speaker Change: How many of the <unk> knee, reaching way Sunday.
Speaker Change: Sunday, and Joe Shan, Joel or Dean Shine local niche yet.
Speaker Change: We'll get new other opinion shaping.
Speaker Change: Finding a bunch at all yet.
Speaker Change: Many Joe about the new reality.
Speaker Change: At the same time, we've observed a clear trend of.
Speaker Change: Growth in volume, but decline in profits in Q1, the average profit margin of China's auto industry was only three 9%.
Speaker Change: Secondly, lower than the five 6% average for downstream industrial enterprises.
Speaker Change: <unk> continued margin pressure in the auto sector.
Speaker Change: Sure.
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Speaker Change: Shelf 18 need your question Anthony.
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Speaker Change: Each and why now.
Speaker Change: And then Tal E Bye bye now.
Speaker Change: Second Q, new policies has helps refis the market and stimulate car buying demand.
Speaker Change: In January the National Development, and Reform Commission and the Ministry of Finance released a notice on promoting consumption and the trade in of consumer goods.
Speaker Change: Regarding the auto sector, its proposed expanding support for scrapping and replacing old vehicles, and improving subsidy standard for car trade ins.
Speaker Change: According to the estimates from the China Automobile dealers Association.
Speaker Change: After the Scrappage standards or broadened.
Speaker Change: Over 10 million additional national four standard passenger vehicles became eligible and the number of eligible and EV increased by more than $1 million.
Speaker Change: Okay.
Speaker Change: Good job gentlemen.
Speaker Change: A lot of genes and chartering.
Speaker Change: Certainly James Watson on one side, all England solving debate.
Speaker Change: What she and essential.
Speaker Change: Church <unk> Dwight Genie this is huntington's.
Speaker Change: <unk> owns a lot of <unk>.
Speaker Change: Third the price war has cooled while competition intelligent vehicle technology has intensified.
Speaker Change: Youll makers are now racing into the smart Tech track not only meeting customer demand for intelligent experiences.
Speaker Change: But also helping manufacturers overcome the challenges of technological homogenized nation amidst fierce market competition.
Speaker Change: Some oh that's for sure.
Speaker Change: $10 charge in the future.
Speaker Change: Tushar traditionally the Jaguar XE in children.
Speaker Change: And she certainly Churchill doesn't balance sheet only.
Speaker Change: Nicole.
Speaker Change: Sure sure sure.
Speaker Change: Bolt shelf fortune top.
Speaker Change: Firstly Jama children log pricing.
Speaker Change: Yeah.
Speaker Change: Looking ahead to the 2025 auto market, we see the following trends.
Speaker Change: First ongoing structural adjustment in the market with Mtv's, becoming the main growth driver second continued policy support leading to steady modest growth.
Speaker Change: Third automakers accelerating their shift toward intelligent transformation.
Speaker Change: So you got a job while I'm always hung on what Ashish.
Speaker Change: So listening to understanding on what's yet can you go through when does all that mean.
Speaker Change: Yeah.
Speaker Change: For auto home, we will continue to focus on user demand improving user experience and enhancing our service capabilities.
Speaker Change: Oh no.
Speaker Change: Good job on June eight.
Speaker Change: AI talent are so volatile.
Speaker Change: She couldn't importantly, cushioned your Queens Center type.
Speaker Change: For one thing we are developing intelligent professional tools, such as the starting price chalk and our AI assistant to help users understand regional differences in vehicle discount policy.
Speaker Change: From here on the screen <unk>.
Speaker Change: Since the spinoff.
Speaker Change: <unk> or <unk> or just searching young by local agenda. So we can get things done tonnage increased hope I might so auto for moisture.
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Speaker Change: And therefore, they are not where you want your own yard.
Speaker Change: The Utah shuffle.
Speaker Change: The other thing is that we are aligning we are capitalizing the broader structural changes in the auto market.
Speaker Change: Expanding our retail network.
Speaker Change: We're building nearly 200 space stores and satellite stores nationwide.
Speaker Change: At this space stores, we introduced the innovative by car for you Oh, Oh service model addressing used or pinpoint throughout the entire car buying journey.
Speaker Change: Browsing and selecting purchasing and trading yet we're also working to integrate the EV service chain and provide users with high quality convenience and one stop services.
Speaker Change: So you're assuming that that those young women.
Speaker Change: We'll get a plumber in Sun.
Speaker Change: No more sort of synergy there that while massaging Sydney, So you, which I'm going to go away like the fact that she can shoot up on that.
Speaker Change: With the continued growth of the EV market the improvement of our channel network and the ongoing evolution of our business model, we believe our new retail business will it become a new engine driving auto homes feature growth.
Speaker Change: Just had a walkway down either tiago and team.
Speaker Change: Now let me answer your second question.
Speaker Change: So again kinds of all kinds.
Speaker Change: And Jon Gathman, senior and usually do more for me you know that Chunghwa Butcher, the Georgia, <unk> <unk> chief of Yahweh, India.
Speaker Change: Forgot about switching to ensure your shots in the shop.
Speaker Change: Okay.
Speaker Change: Jeff or Jordan yet.
Speaker Change: Yes.
Speaker Change: So first about our store opening progress as of the end of the first quarter. This year, we have established 29 space stores and 170 franchise satellite stores across the country.
Speaker Change: These stores cover both major cities and lower tier markets, enabling more users to experience auto homes professional and convenient services.
Speaker Change: Yes, sure <unk> done the synergy.
Speaker Change: So our actual year to Dassault <unk>.
Speaker Change: Shanghai Beijing.
Speaker Change: Sure that Eugene young and border so Jim Pennzoil, while machining, so moshe, but what about in data.
Speaker Change: Got it got it unfortunately, there Sean.
Speaker Change: Quite a challenging chipotle outside.
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Speaker Change: Young shop, Shanghai Shibuya, She said no more yes Sunday there changed at all for being shopped in the AI to go Marshall.
Speaker Change: Okay challenging associate until.
Speaker Change: Clinton go survive well.
Speaker Change: I'm not sure if I'm really quite short Humboldt Kinchinjunga Shinji Burger King holiday Colstrip here.
Speaker Change: The second point is about our space store upgrades.
Speaker Change: Since auto home first launch as offline retail strategy in September 2022, we have undergone more than two years of hands on exploration and continuous iteration of our new retail model at the recent Shanghai also show the newly upgrade.
Speaker Change: <unk> Auto home Shanghai based store was unveiled at the Shanghai World Expo site it.
Speaker Change: Features cutting edge technologies, including eight glasses free <unk> holographic cabin Dolby sound and then AI Smart churches.
Speaker Change: Enabling users to enjoy an immersive car selection experience and generate personalised purchase plans in real time.
Speaker Change: We'll rapidly roll out the space stores upgrades nationwide to deliver an even better car buying experience for our users.
Speaker Change: Can you sort of an assortment of core trunk jihua an hour with him when he was talking taking children Joshing show a change out in <unk>.
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Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Our next question comes from the line of Brian Gong from Citi. Please go ahead. Your line is open.
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Speaker Change: Sure sure.
Speaker Change: Translate for myself, so measurement for taking my question I have two questions first one is what's the latest status of Harris acquisition and there was a deal can be competed in the future what's new development strategies, we are auto home apart.
Speaker Change: And the second question is what are we all Oem's pricing war stabilizing Magnum is real and that's the impact from bankruptcy of dealers to our lead generation business drastically emerge.
Speaker Change: Okay.
Speaker Change: Excuse me, Brian No what I believe is.
Speaker Change: Lindsay.
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Speaker Change: Sure.
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Speaker Change: Digital which I know you may have.
Speaker Change: We will fund the certainty.
Speaker Change: Great job.
Speaker Change: Hi, Neil landfill.
Speaker Change: He was charged with Ohio in Newport Beach again, the assumptions around Chicago.
Brian Gong: Thank you Brian for the question.
Brian Gong: On February the 20 higher group announced that its subsidiary Cor Tek had acquired of 41.91% stake in auto home.
Brian Gong: As of now the equity transfer has not yet been completed and the transaction is still under regulatory approval, we will share any updates with our.
Brian Gong: With our shareholders first.
Brian Gong: Up to date.
Brian Gong: I appreciate that.
Speaker Change: He followed the chiller to Jonathan's, Johnny you find something new which I'll show you that Xiaomi Wang Chung.
Brian Gong: Well, it's Hong Kong houses you could consolidate.
Glenn: Hi, Glenn.
Speaker Change: So I don't know.
Speaker Change: Oh.
Speaker Change: Sure John.
Speaker Change: Each of them don't go to Ken Zerbe closer and go to Linda or Michel.
Speaker Change: That should change.
Speaker Change: How much of a wash as you need from them for sure.
Speaker Change: So invoicing, the Chicago, reducing seemingly Dino Hunter nutrition hometown, which in addition to market yet.
Speaker Change: So as the transaction has yet to be completed we could only discuss disclose public.
Speaker Change: Information and opinions so all in all we believe that we will be committed to the online to offline new retail model and also the development in trends in new energy vehicles, and intelligent development strategy.
Speaker Change: Well, let me ask Ohio, Michigan, and you got to eat on the tertiary Cymru, Amit So to tell you I don't have a whole neutral to judge on sort of a higher chiller trying to use them. How do you go when you are shown here.
Speaker Change: Sure. He is judge how much is the auto order Jones Yahoo meaningful meet new antenna and majority of the reasons why the Diageo go beyond China into tissue totally structured tissue choices.
Speaker Change: No.
Speaker Change: If you analyze it so that's all.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: So according to the press release by the higher group.
Speaker Change: We will be committed to continue strengthening auto homes O to O intelligent extreme.
Speaker Change: Exchange capability and the peer group, where we're main our important shareholder. We will also continue to strengthen our partnership with King on property and casualty insurance.
Speaker Change: Thank you Vijay.
Speaker Change: John Keogh, John Mitchell and Puma in Shanghai.
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Speaker Change: To put the other vehicles Sheila.
Speaker Change: Yes.
Speaker Change: And I think they talked about a change on that jumbo at Cubo that sure.
Speaker Change: Yeah.
Speaker Change: So as for your second question about when the auto price War is expected to stabilize and also the impacts of dealership closures, whether they are beginning to emerge.
Speaker Change: I'll leave that the price war is expected to continue in the short run and just now we heard from C. O young that now we are seeing a trend of growth in volume while the decline in profits and also we can see that from the financial reports of art.
Speaker Change: Makers that are listed there profits has been affected however, we believe that the.
Speaker Change: The room for further price decline is limited and we believe that after.
Speaker Change: The current inventory clearance and also the end of the subsidy policy transition the competition will gradually cool and E.
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Speaker Change: Also we are seeing a major impact on the dealer's cost by the price war, especially in terms of their financial reports last year, we are seeing.
Speaker Change: The decline in profits across.
Speaker Change: Most of the dealers and we believe that currently the dealers the biggest challenge faced by dealers is the need to transform and we.
Speaker Change: We are seeing apparent decline in the sales of IC vehicles.
And the four S model that used to be popular is also facing severe challenges.
Speaker Change: So currently we need to address the.
Speaker Change: The challenge of declining ITE auto sales and they also need to think about how to better sell Mtv's of course, we are seeing.
Speaker Change: Lot of efforts on their part and our new retail business also aims to help them.
Speaker Change: Improved ourselves with greater efficiency.
Speaker Change: Please Ms Angela come in July just hold off on yeah, how should the gesture object seemingly you heard from but they show you that you don't do on strategy.
Speaker Change: So as you know it's on the table.
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Speaker Change: So in the long run we believe that the dealers would pivot towards the business of new energy vehicles, and also towards greater efficiency and costs.
Speaker Change: Of course, we see news ask dealers exiting the market. However, we believe that the base number is still stable.
Speaker Change: So in the future with some restructuring of the businesses and greater innovation, we believe that leaving.
Speaker Change: Leaving dealers and those who are able to transform relatively rapidly would still have the potential to hold still in the market and we believe the market with return to a healthy track after temporary adjustments.
Speaker Change: Guidance.
Speaker Change: Sir please.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Our next question comes from the line of share then Shang from CIC. Please go ahead. Your line is open.
Speaker Change: Today I'll, let Glenn.
Speaker Change: Can you guys just tell us that there was about half a.
Speaker Change: Sure Michael Sarcone here to show you what the phone here shortly on the P&L. The hosted systems don't seek one more quarter under your tissue coming out now you sounds like when you come home gun things Oh don't worry about it too.
Speaker Change: All classified as held a bunch.
Speaker Change: So can management update the strategy for the new retail model as far as this expansion pays for the subsequent quarters and also any update on the shareholder return plan. Thank you.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Sure.
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Jan: So as Jan mentioned earlier, our new retail business has been constantly evolving.
Jan: It started from version 1.0, which focused on launching space stores in major cities and then we have version 2.0, where we introduced a satellite plant and we built a one plus and marketing network extending from core cities to surrounding regional Mark.
Jan: And now we're up to.
Jan: The stage of version 3.0, where we focused on enhancing the car buyers experience and reducing transaction costs for both buyers and sellers through technology and service upgrades. So our new retail strategy has been consistently upgraded in line with market dynamics.
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Richard: Richard So that saves you, Josh again, Joe heel without just at home, but she's home actually Sean.
Speaker Change: So they'll come to us and I'm sure My Attritional chip.
Speaker Change: Our first store in Shanghai underwent a comprehensive upgrades in Q1. This year. In addition to existing services and now features and immersive VR camera experience and then on demand AI smart purchase making.
Speaker Change: The car buying journey, even more intelligence.
Speaker Change: AI smart purchase assistance can match vehicle models to our customers' budgets lifestyle demands and preferences cutting information search time by 90% lowering decision, making costs and improving purchase overall purchase efficiency.
Speaker Change: Delivering a time saving car search and cost saving car purchase.
Speaker Change: Currently underway at <unk>. The movie also that's what we should look when you and John John.
Speaker Change: Yeah, So Jeremy go mobile.
Speaker Change: Don't go away from what you all saw the tissue or change on the salvage arts and cultural shift to us.
Speaker Change: The last one you know Sean casualty change obviously, India.
Speaker Change: <unk> seen initial remodel issues with water neutral year on <unk>.
Speaker Change: As mentioned by C O young by the end of this year auto home aims to operate 50 space stores and 500 satellite stores.
Speaker Change: Offering car buying services to nearly all pre sector level cities and counties in China over the next three years, we plan to open 1000 satellite stores.
Speaker Change: With this rapid scale up our new retail business is expected to become a greater contributor to ASO homes overall revenue.
Speaker Change: Greg we don't worry about Johan.
Speaker Change: Hey, guys or Tricia <unk>.
Speaker Change: Sure.
Speaker Change: Well I mentioned it.
Speaker Change: So when we got here tomorrow.
Jennifer: Sure Jennifer.
Speaker Change: Sure.
Speaker Change: Accomplishes tissue John she thought.
Speaker Change: Going onto our financials together for home technologies in that image.
Speaker Change: Okay.
Speaker Change: We see a major one because the medallion capital E mail, so woefully quality well.
Speaker Change: Yes.
John Hong: John He signed that not 1 million homes out hopefully well.
Speaker Change: So we don't know if you've already talked about I'm not sure.
Speaker Change: Ill jump of what <unk> been fruitful hopefully go jumps up tissue, who work with children, who don't budget.
Speaker Change: Yeah, we don't see but initially.
Speaker Change: So as for the shareholder return plan about the dividend.
Speaker Change: Our plan our general plan is to maintain consistent and stable in terms or in terms of our shareholder return we will continue to honor our previous commitments to the market that is this year's dividend payout will be no less than one.
Speaker Change: <unk> 5 billion RMB.
Speaker Change: And about our share repurchase.
Speaker Change: In September 2024, the board approved a 200 million share repurchase program and as mentioned by C. O Young as of now we have already executed approximately $130 million repurchasing.
Speaker Change: Nearly that is nearly $5 million a D S.
Speaker Change: Taking both the dividends and share repurchases into account our Ami you share holder return rate has exceeded 10%.
Speaker Change: Looking ahead, we will continue to reward shareholders through consistent and stable dividend and repurchase policies aiming to increase long term and stable returns for investors.
Speaker Change: Thank you operator next please.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: And our next question comes from the line of Ritchie Sun from HSBC. Please go ahead. Your line is open.
Speaker Change: Hi, Andrew and Craig Sterling I sure anybody can get with you and answer your way.
Speaker Change: Thank you Simon So my time, all you can do a social her woman deal with it.
Speaker Change: So thank.
Speaker Change: Thank you management for taking my questions I would like to ask how would you think about the impacts of trade tensions towards the car market and our business. Thank you.
Speaker Change: John.
Speaker Change: The two other attrition.
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Speaker Change: Hi, Felicia.
Speaker Change: So they can make all the team pie.
Speaker Change: Yeah cause of automotive seating hi, Alan can I ask you for that.
Alan: Sure John.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change #100: Language and to get somebody to come up with pension.
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Speaker Change: I remember that.
Speaker Change #101: So we believe the trade war will have some impact on China's auto market, there would be price fluctuations because with a U S imposing higher tariffs.
Speaker Change #101: Brands American auto brands, such as Tesla, Lincolns Chevrolet and Hammer.
Speaker Change #101: Are expected to rise.
Speaker Change #101: However, we believe that currency domestic auto market is largely driven by the growth of new energy vehicles, and we are also seeing very high market share from brands for all of us.
Speaker Change #101: All of Europe, and Japan, while the proportion of while the share of U S. Brands is relatively limited. So we believe the impact on the overall Chinese auto market will also be limited.
Speaker Change #101: Yes.
Speaker Change #101: Congrats all drilling challenges over time issue for us is homemade watching begins to make whether it be in pilot and daughters.
Speaker Change #101: Exactly.
Speaker Change #101: Jade sometime.
Speaker Change #102: So just to clarify by U S brands, I mean imported U S autos.
Speaker Change #103: Now due to China, Jon J J, you Duncan Mcintosh went from <unk> to <unk>.
Speaker Change #102: Throughout the year, which even though that wasn't it so if you get <unk> III.
Speaker Change #102: <unk> went from you know who will do it from Gulf Congratulating us on the heart to Dr. Luke will shortly he thought that its only lies on the cartridges and choppy.
Speaker Change #102: So for auto home because our main businesses are focused on the domestic market. So there may be some impact on the macro level, but.
Speaker Change #102: But the direct impact is very limited on auto home.
Speaker Change #104: Okay operator.
Speaker Change #102: Yeah.
Speaker Change #102: Thank you.
Speaker Change #105: There are no further questions at this time I will turn the conference back to management for closing comments.
Speaker Change #106: Guys here by Jos hanging out there, even though she does shop. So yes, you still have vishal sorry.
Speaker Change #105: Since that project <unk>.
Speaker Change #107: Thank you everyone. Thank you very much for joining us today. We appreciate your support and we look forward to updating you on next quarter's conference call in a few months' time.
Speaker Change #105: In the meantime, please contact us if you have any further questions or comments. Thank you very much. Thank you.
Speaker Change #105: Yeah.
Speaker Change #105: [music].