Q3 2025 Autohome Inc Earnings Call

Speaker #2: Ladies and gentlemen , thank you for standing by for Autohome . Third quarter 2020 Earnings Conference Call . At this time , all participants are in listen only mode .

Speaker #2: A question and answer session will follow . Management prepared remarks . As a reminder , this conference call is being recorded . If you have any objections , you may disconnect at this time .

Speaker #2: A life and a webcast of this earnings conference call will also be available on Autohome IR website . It's now my pleasure to introduce your host , Mr. Sterling Song .

Speaker #2: I, Autohome IR Director, Mr. Song, please go ahead.

Speaker #3: Thank you . Operator . Hello everyone and welcome to Autohome third Quarter 2020 Earnings Conference Call . Earlier today , Autohome distributed its earnings release , which can be found on the company's IR website at IR .

Speaker #3: Joining me on today's call is our chief financial officer , Miss Craig Yan Zeng . Management will go through the prepared remarks , which will be followed by a Q&A session where it is available to answer all your questions .

Speaker #3: Before we continue , please note that the discussion today will contain forward looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995 .

Speaker #3: Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange.

Speaker #3: Autohome does not undertake any obligation to update any forward looking statements except as required under applicable law . Please also note that Autohome earnings press release and this conference call include discussions of certain unaudited non-GAAP financial measures , a reconciliation of non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release .

Speaker #3: I'll now turn the call over to Autohome chief Financial Officer Mr. Craig Yan Zeng , for opening remarks . Please go ahead . Craig .

Speaker #3: Zhengyuan . Huiyi . Thank you . Hello , everyone . This is Craig Zeng . Thank you for joining our earnings conference call today .

Speaker #3: Thank on AI generated . Shenhua . AI . Xiaoli . Zhang . Ziyuan 2020 . Xiaoyi . Food . One . In the third quarter , we continue to advance our AI and overall strategies on AI .

Speaker #3: We significantly strengthened the integration of AI technologies with our products . Fostering business innovation while enhancing both user experience and customer operational efficiency .

Speaker #3: On 020 , we continuously improve our auto platform by integrating online and offline resources , optimizing the end to end user experience , and building a comprehensive closed loop ecosystem that spans the entire customer journey .

Speaker #3: From initial traffic acquisition through transaction completion to opt sales services, the AI tissue shop AI to show the Guangdong one is changing.

Speaker #3: Million . Neurological . The one AI AI . We . In terms of AI technology applications , we completed a comprehensive upgrade of our AI assistant by strengthening model capabilities , integrating user inquiries with specific vehicle models , and expanding usage scenarios .

Speaker #3: We achieved precise matching between user queries and car models . This has created a decision making loop of content drives engagement . Engagement leads to action .

Speaker #3: In addition , we've also introduced two new features the AI car selection system and AI vehicle . Fault Diagnostics , providing users with more intuitive and efficient tools for their car related needs .

Speaker #3: For . AI . Tissue . Fan . Song Yang . Yan Zeng . PGC model . In Guangzhou in September , we launched the first inaugural global AI Technology Conference .

Speaker #3: This established a premium platform for technical exchange among leading enterprises , showcasing cutting edge advances in China's intelligent automotive technologies and elevated the collective image for Chinese auto brands .

Speaker #3: The conference success also served as a testament to Autohome professional influence as a trusted media platform . The conference received authoritative endorsements from five major automotive associations and was strongly supported by 14 key corporate partners , seven top executives from leading companies in the industry delivered impactful keynote speeches .

Speaker #3: Following the conference , over 30 automotive brands engaged with Autohome's official Weibo account . While more than 60 professional editors , technical experts and PGC creators formed a multi-dimensional communication matrix that drew widespread attention across the industry .

Speaker #3: Site . Shanghai . Yan Zeng . Ten . In building our auto ecosystem with soft launched our Autohome model on September 20th , marking a major milestone and a significant progress in our one stop online to offline strategy .

Speaker #3: This initiative further improves our new retail business model through continuous upgrades and makes our model more complete . This strategy extends Autohome's role from being a decision making hub for car selection and research to the final car purchase and ordering for transactions , creating a full digitalized closed loop for the entire car experience and significantly increasing the value of our traffic .

Speaker #3: Engine in Shanghai , Jiangsu , specifically on content . We strengthened our content matrix by increasing professional depth and expanding the breadth of perspective while continuously advancing our diversified content ecosystem .

Speaker #3: By . Shipping . More . Song Yang . Content to . For our 2025 series of coverage on domestic and international auto shows .

Speaker #3: We adopted a dual track approach to achieve comprehensive reach from global influence to local penetration . At the Munich Auto Show , we took a global perspective , focusing on world premieres and Chinese brands going global .

Speaker #3: We built a professional and exclusive content matrix through intensive bilingual live streaming and video production . Then leveraged global mainstream media networks to amplify China's automotive innovation and brand recognition worldwide .

Speaker #3: At Chengdu Auto Show , we focused on new car launches and purchase guidance , integrating resources from 18 automakers to create Autohome exclusive live streaming sessions .

Speaker #3: This provided users with an immersive auto show experience on the first day of the of the auto show , we achieved 100% coverage of all new car launches .

Speaker #3: In the Shanghai . The general . UGC agency . Which . Topping . Quest . Mobile . Beyond our professional auto show coverage , we've made significant strides in developing a content centered , interactive ecosystem .

Speaker #3: The newly established Autohome Media MCN is committed to building a Multi-category influencer matrix that centers on automotive vertical while extending into technology , travel , and overseas content .

Speaker #3: We've also developed a rich and diverse content ecosystem that combines professional and engaging content , in-depth and authoritative . OGC insights and authentic user generated experiences that resonate .

Speaker #3: To date , we have gathered over 200 high quality creators across multiple platforms , covering professional car reviews , technology , travel and other areas continuously enhancing Autohome's platform influence .

Speaker #3: According to mobile, the average mobile DAUs reached 76.56 million in September 2025, up by 5.1% from the same period last year.

Speaker #3: Auto Shanghai Shanshan . The Shangcheng , which . Changsha . To Hong . And the . Hong Kong to Zhejiang . To . In EV .

Speaker #3: We continue to focus on user and client needs while building a comprehensive auto automotive ecosystem online centered around our newly launched Autohome . More introduced in late September , provides transaction services while our offline network of franchised stores , high outlet and used car dealerships is designated to integrate the entire process from online ordering to offline delivery and services .

Speaker #3: Building on the successful trial , we plan to officially launch the Autohome more during the double 11 shopping festival . By integrating resources from across the industry value chain , we are committed to providing users with more precise , professional and efficient car purchasing experiences .

Speaker #3: Furthermore , total revenues from Nevs in the third quarter , including those from the new retail business , has continued to grow , increasing by 58.6% from last year .

Speaker #3: To . Jiangsu , Zhejiang . Shanghai and . Zhongshu Sheng Shi . Gingival . Shanghai . And digitalization . Our five major digital intelligent product lines are leveraging Autohome's platform capabilities of full lifecycle data tracking to continuously help clients improve targeting accuracy and service efficiency .

Speaker #3: Furthermore , as a global AI technology conference , we officially launched the Tianshu Intelligence service platform powered by Autohome's proprietary Tangier Large Language model .

Speaker #3: The platform uses an open toolkit and service distribution capabilities to redefine collaboration among users . The platform and the ecosystem partners . This advancement drives Autohome transformation from an automotive information platform to an industry wide intelligent hub .

Speaker #3: Further strengthening our dual advantages in technology and ecosystem . AI is a . Yan Zeng . More . In . For used car business , we continue to advance the standardization of both transactions and services .

Speaker #3: The AI car inspection expert developed based on historical transaction data and algorithmic models , has achieved industry leading accuracy in vehicle valuation . Meanwhile , our flagship certified used car stores have further expanded its network of partner dealers in the future , we will continue to uphold integrity and standardization as our foundation deepens .

Speaker #3: Our collaboration with high quality used car dealers and continuously strive to provide consumers with a more reliable and worry free used car buying experience .

Speaker #3: Those in senior AI for auto . Q2 Jiangsu Railway women . 20 . The Shanghai . Changjiang . In summary , this year we focused on AI and auto to comprehensively accelerate our business expansion .

Speaker #3: Looking ahead , we will continue driving innovation in both products and business models . Building a more efficient automotive ecosystem and service system that create sustained value for the industry and ensures our long term , stable development .

Speaker #3: And . Renminbi . With that now , please let me briefly walk you through the key financials for the third quarter of 2025 .

Speaker #3: Please note that I will reference RMB only in my discussion today , unless otherwise stated . This . Data . Net revenues for the third quarter reached 1.78 billion .

Speaker #3: To break it down further , Media Services revenues contributed 298 million leads . Generation services revenues for 664 million and online marketplace and others revenues increased by 32.1% year over year to 816 million , yuan .

Speaker #3: Song Yang: With respect to cost, the cost of revenues in the third quarter was $646 million, compared to $408 million in the third quarter of 2020.

Speaker #3: For both margin in the third quarter was 63.7% , compared to 77% during the same period last year . Art Yuan . An .

Speaker #3: Yuan Song Yang yuan . Turning to operating expenses , sales and marketing expenses in the third quarter were 620 million , compared to 877 million in the third quarter of 2020 .

Speaker #3: For product and development expenses were 279 million , compared to 339 million in the third quarter of 2020 . For general and administrative expenses were 125 million , compared to 137 million during the same period last year .

Speaker #3: Yuan . Yuan . Yuan . Yuan . Overall , we delivered an operating profit of 147 million in the third quarter , compared to 83 million for the same period of 2020 .

Speaker #3: For adjusted net income attributable to Autohome, it was $407 million in the third quarter, compared to $497 million in the corresponding period of 2020.

Speaker #3: For . Taiwan . Song Yang . Q1 yuan . In non-GAAP basic and diluted earnings per share in the third quarter were 0.87 and 0.86 , respectively , compared to 1.02 for both in the corresponding period of 2020 .

Speaker #3: For . non-GAAP basic and diluted earnings per Ads in the third quarter were 3.47 and 3.45 , respectively , compared to 4.09 and 4.08 , respectively , in the corresponding period of 2020 .

Speaker #3: For . The Tianjin , Tao Wu , we are yuan . Yuan . As of September 30th , 2025 , our balance sheet remained robust , with cash .

Speaker #3: Cash equivalents , and short term investments of 21.89 billion . We generated net operating cash flow of 67 million in the third quarter .

Speaker #3: A . And Yan Zeng . On September 4th , 2020 . For our board of directors authorized a new share repurchase program under which we are permitted to repurchase up to US dollars 200 million of Autohome ads for a period not to exceed 12 months thereafter .

Speaker #3: On August 14th , 2025 , the board approved an extension of the term of this program through December 31st , 2025 . As of October 31st , 2025 , we repurchased approximately 5.48 million ads for a total cost of approximately USD 146 million .

Speaker #3: Survive . For . Hong . Children . Feng . Hong Kong Jianghuai renminbi . Yuan . Children . In addition , in accordance with our dividend policy , our Board of Directors has approved a cash dividend of US dollar 1.2 per Ads or US dollar 0.30 per ordinary shares payable in US dollars to holders of ads and ordinary shares of record .

Speaker #3: As of the close of business on December 31st , 2025 . The aggregate amount of the dividend will be approximately RMB 1 billion and expected to be paid to holders of ordinary shares and ads of the company on or around February 12th , 2026 and February 19th , 2026 , respectively .

Speaker #3: Renminbi yuan Hong . Yan Zeng Hong . Yuan . Renminbi . The . On September 30th , 2025 , the company announced the approval of a cash dividend of approximately RMB 500 million .

Speaker #3: Overall, the company has fulfilled its commitment to shareholders to distribute no less than RMB 1.5 billion in dividends for the full year of 2025.

Speaker #3: Looking ahead , we remain committed to maintaining a long term , stable and proactive approach to shareholder returns , and we sincerely thank our shareholders for their continued strong support to the company .

Speaker #3: So that concludes our financial summary . We are ready to open up Q&A session . Operator .

Speaker #2: Thank you . We will now begin the question and answer session . To ask a question on the phone , please press star one .

Speaker #2: One and wait for our name to be announced . If you'd like to cancel your request , you can press star one one again .

Speaker #2: Our first question comes from the line of Thomas Chong of Jefferies . Please go ahead .

Speaker #3: Prepared remarks .

Speaker #4: And . Thanks , management , for taking my question . I have two questions . The first question is about the outlook for 2026 .

Speaker #4: Auto market. How should we think about the industry trend? And my second question is about AI. We mentioned AI in our prepared remarks.

Speaker #4: So just want to get some more color about the progress of AI product offerings . Thank you .

Speaker #3: In the Taiwan . Thank you for your question . First , let me share some market recent developments and future trends with you .

Speaker #3: Taking . The . First of all , the price war in the auto market has shown some signs of easing . And the automakers are accelerating their intelligent technology efforts in recent months .

Speaker #3: You know , multiple government agencies have rolled out intensive policies calling for the industry to end the evolution and provided policy guidance to ease the ongoing price war in the auto sector .

Speaker #3: So all these measures have helped to cool down the price war in the auto market . And we have also observed that over 20 automakers have gradually phased out their fixed price promotions .

Speaker #3: So . The . Challenging . The . Since the start of this year , major automakers have successfully announced their plans for intelligent driving technologies to accelerate the adoption and application of intelligent driving .

Speaker #3: So, from this, it's quite clear that future industry competition will depend more on the company's comprehensive capabilities in integrating intelligent technology, user scenarios, and meeting user needs.

Speaker #3: Etc. , rather than any single technological advantage . So for next year , the price competition expected to shift to more towards a battle of technological cost effectiveness .

Speaker #3: You . And the . The . Secondly , the EV market are still remains the core growth driver . Even though this year they growth number is comparatively a little bit slower than last year .

Speaker #3: But according to the data from the China Passenger Car Association , Cpca , the EV penetration rate exceeded 50% in seven out of the first nine months of this year .

Speaker #3: So this was mainly driven by the extension of favorable policies , etc. . So we believe for next year , the the overall market , auto market expected to continue to undergo structural adjustments , which will redefine how consumers to make their purchasing decisions .

Speaker #3: At the same time , the China's auto industry continues to remain under high pressure , which has been lasted so long and this pressure , you know , includes severe capacity , overcapacity , declining profit margins and intense or fierce market competition are etc.

Speaker #3: . So we see both traditional automakers or dealers also , you under going such a business , you know pressures . So confronted with both price wars and the shrinking profits and margins , we see OEMs and dealers alike .

Speaker #3: So they have raised their expectations for both online consumer acquisition and offline sales conversion efficiency . Looking ahead to next year , we believe , are the following few points .

Speaker #3: Merit our attention . Iran should . Go . We believe they are short term challenge , but it coexists with long term opportunities because the auto market still face significant short term pressures , mainly stemming from the shift of the EV purchase tax exemption policy from full exemption to half exemption and the exploration of tax incentives for the Is .

Speaker #3: So combined with the price war in traditional ICS , all such factors may further impact the auto market . Despite the above short term pressures , we just mentioned , there are still upgrades , intelligent technologies , improvements to and recovery in the market , order , and if there's further supported by introduction of additional long term policies , we believe it will still stimulate consumer demand in the auto market and the market is expected to achieve modest and steady growth in 2026 .

Speaker #3: We AI , auto . AI should . Are . The . So for us for Autohome , we will continue to deepen our AI and auto strategies .

Speaker #3: As I just mentioned , on one hand , we will keep advancing the product innovation upgrade , accelerating the application of AI technology across contents .

Speaker #3: Intelligent customer services and scenario based services , etc. on the other side , we will continuously explore ways to leverage our online and offline resources to achieve integration , build a closed loop for auto transactions and better serve our users and clients .

Speaker #3: AI . In the future , should . The second question is our AI product progress ? So in the field of intelligent technologies , you know , we have already completed a strategic layout of multiple products , built technology , product mix spans , the entire life cycle of auto consumption and continuously drive improvements in both user experience and customer business efficiency .

Speaker #3: I mean , the AI , AI . And for our users , you know , our AI smart system and the used car , I smart buyer are continuously being upgraded .

Speaker #3: The new generation of the smart system has moved beyond simple question and answer model to proactive understanding . And link provision so it can automatically identify the car models and theories mentioned in the conversation and directly push product links so it shortens the users search process and improve decision making efficiency .

Speaker #3: And for our clients , you know , we have deployed five major AI product lines covering core business scenarios such as the marketing insights , online customer Acquisition store .

Speaker #3: Visit , Invitation Dealer store operations , and Used cars are etc. so through the Intelligent tools . We can continuously empower our business team members and to realize the full chain digital operations .

Speaker #3: To . AI . And for our technology foundation , you know we have our own proprietary large language model . For example , our used car AI smart buyer is powered by this engine and it is .

Speaker #3: Besides , it is combined with Autohome's unique data assets . So it can deliver highly accurate and efficient recommendations . Achieving a high degree of matching between the vehicle sources and the user needs .

Speaker #3: AI . AI . So currently Autohome is comprehensively under vigorously promoting the AI driven upgrade of the products , achieving a comprehensive transformation from the underlying architecture to application scenarios .

Speaker #3: So in the future , we will continue to deepen the integrated application of AI across multiple scenarios using the technological innovation to drive and efficiency revolution in the auto sector .

Speaker #3: In the industry . Operator .

Speaker #2: Thank you . One moment for the next question . The next question comes from the line of Xiao Danjiang from Sisk . Please go ahead .

Speaker #5: Hey , our . You . Thanks , management , for taking my questions . So can management share your outlook on the traditional business for the upcoming quarters ?

Speaker #5: And also , is there any update on the shareholder return plans ? Thank you .

Speaker #4: Yan Zeng .

Speaker #3: Ya dong . I can . Eager for the . Shareholder . Thank you for your question . In the third quarter . We do see that the OEM prefer promotional discounts still remain at high level and the price war has been there for so long and the overall discount for OEMs has already exceeded 23% .

Speaker #3: So for the car sales volume and the profits are still remain , you know , concentrated among the leading companies . So the price cutting for volume strategy has made a lot of OEMs to control their marketing budgets .

Speaker #3: Major a . China has . To . For the media services revenue in Q3 still declined year over year . But the decline has narrowed down significantly and the continued decline is mainly due to the continued pressure from the OEMs price wars in the market and Q4 is approaches to the year end .

Speaker #3: And we believe OEMs is expected to maintain high professional discounts to boost their sales revenues . And they still put pressure on our media services revenues .

Speaker #3: So we we do expect we will achieve a slight year over year decline . Sales for you . So you . To your question .

Speaker #3: So . For our lead generation business because of the market inventory backlog and inverted pricing . So dealers continue to face operational pressure .

Speaker #3: And we see that over 50% of dealers operating at a loss in the first half of the year . And it doesn't look very optimistic for the for their survival , for many dealers .

Speaker #3: So accordingly , our lead generation services also face some ongoing pressure in the second half of the year . So . We . Are nevertheless our , you know , customer penetration rate still remains at a good level as the market once the market and customer operating conditions improve , our traditional business can be , you know , hit the bottom rebound and stabilize .

Speaker #3: As I just mentioned , our media segment business segment already . You know , narrowed down there decrease . And on the other hand , our innovative business developed quite strong , quite well .

Speaker #3: So to some extent our , you know , it's offset the situation of our traditional businesses . In the . Year . We .

Speaker #3: We are on the shareholder return. You know on dividends, today we just announced a cash dividend of RMB 1 billion for the second half of this year.

Speaker #3: And combined with the RMB 500 million , we announced in September , you know , we have fulfilled our commitment to a total annual cash dividend of no less than RMB 1.5 billion for the whole year of 2025 .

Speaker #3: You know , our board of directors are will , you know , continue this stable dividend policy . In . And share repurchase program , you know , of the two of the US dollar 200 million share repurchase program .

Speaker #3: You know until the day we have completed over 70% and the overall execution of this program is progressing quite well . So in the next few months , we will continue to carry out the remaining share repurchase program .

Speaker #3: With the . You . For long time , you know , we have been committed to building a comprehensive shareholder return plan centered on the continuous dividends and share repurchases providing shareholders with predictable and stable shareholder returns over the long term .

Speaker #3: We are very confident in our business . Operations in the future , so we will continue to uphold our long term , stable and proactive approach to shareholder returns .

Speaker #3: We sincerely thank all our shareholders for their long standing , strong support to the company . Operator .

Speaker #2: Thank you. Thank you for the questions. One moment for the question. The next question comes from the line of Ricky from HSBC.

Speaker #2: next

Speaker #2: Please go ahead .

Speaker #6: Hi . How Q1 ? Well , when you go to . The shaping . Of the you . Can we I . Within the and the financing .

Speaker #6: Hi . How Q1 ? Well , when you go to . The shaping . Of the you . Can we I . Within the and

Speaker #6: mobile . Thank you management for taking my questions . So I have to first of all gross profit margin has been dropping year on year in Q and Q in third quarter .

Speaker #6: So why is that ? And what is the trend going forward ? Secondly , the I want to ask about the energy space stores , satellite stores .

Speaker #6: So, what is the development progress and the 2026 target? Thank you.

Speaker #3: In the . In . Tao Wu . Thank you for your question . Since the beginning of 2025 , this year . So in order to accelerate the development of the our new innovative businesses , we have been actively expanding in , we have been actively developed our business .

Speaker #3: And so it's increased our upfront investment and consequently , it resulted in higher costs . You . Are . Tao Wu . Specifically , you know , our innovative business such as the new retail business has scaled up in the third quarter as compared to the same period last year .

Speaker #3: For example , we we we soft launch the Autohome more business in September and and although this model is quite early in its early stage , but we observed where we get quite positive market feedbacks and and we believe such stage investments is quite necessary to , to for our future development , for our , you know , to explore new avenues of growth and create much greater room for future development .

Speaker #3: So it makes . So the gross margin of our transaction business , it cannot be . Of course , it cannot be compared for our , you know , traditional business .

Speaker #3: For example , the media business analyst and recent business is much lower than our traditional business . We . The model . So going forward , we will adhere to our consistent practice of the strict cost controls .

Speaker #3: And we will have the prudent principles in managing the scale of our investments . So we will pay attention to our gross margin change , will focus on that .

Speaker #3: On the . To . The . The second question is about Autohome space station and and satellite stores development . The you know the development of our offline network always centered on using our digital technology to streamline the car purchasing process and improve the transaction efficiency .

Speaker #3: So our advantage is in our ability to cover areas in low tier markets where OEMs or dealers are , they don't reach . So we can help them to extend their sales network through .

Speaker #3: By the . So this business model is also being continuously upgraded and iterated . As I just mentioned . You know , we are integrating the online and offline resources , bringing our online technology and traffic advantages to to offline .

Speaker #3: So we try to transform from a auto content oriented platform to a transaction service platform . So you know . We . Try to answer the .

Speaker #3: Digital . So after , you know , we complete our controlling shareholder , you know , you know , we will continue to working on combining our online and offline efforts to provide platform services that are more convenient and efficient .

Speaker #3: And we try to find new ways to grow beyond our traditional business models. Operator.

Speaker #2: Thank you for the questions . One moment to the next question . Our final question comes from Barranco , from Citi . Please go ahead .

Speaker #7: The . I will translate myself the used car market seems still a little bit weak recently . How does management view the outlook for used car market ahead ?

Speaker #7: Thank you . Yeah .

Speaker #3: Yan Zeng . Can you . Are . Are . Quite . Thank you for your question . Since the beginning of this year , the used car market has generally shown a trend of rising transaction volume and falling prices .

Speaker #3: According to China Automobile Dealers Association . Kadda . For the first half , the transaction volume for used cars rose 2% year over year , while the average transaction price decreased by 12% year over year .

Speaker #3: At the same time , we see there are two notable structural trends emerged in in the market . First is the increased cross-regional flows .

Speaker #3: Second is the rapidly increasing Nev used cars sales . The . I . Use . Of . The you want to . While the transaction volumes are expanding the operational pressures in the industry continue to intensify due to the impact of price wars in the auto market , we see the proportion of loss making used car companies has expanded to over 70% of lightning average inventory cycles .

Speaker #3: Continued high customer acquisition costs and intensified homogeneous competition , etc. , but despite this , positive factors still remain . For example , the trading policies have stimulated replacement demand and brought more high quality used cars into the market .

Speaker #3: With the new energy used car becoming a key growth engine . So the Cata forecast for the full year , the used car transaction volume could exceed 20.5 million units , an increase of 4 to 5% year over year .

Speaker #3: So . In . We also . Currently , the used car sector has entered a crucial stage of deep adjustment and value chain reconstruction .

Speaker #3: The negative impact from the price cutting for volume model are gradually becoming apparent . However , China's large vehicle ownership base and resilient consumer demand provides strong support for the middle to long term development of the used car industry .

Speaker #3: So Autohome will continue to collaborate with industry partners to actively address challenges through refined operations and service upgrades . Exploring new business models and new value to advance the used car industry towards high quality development .

Speaker #3: Operator .

Speaker #2: Thank you . Yeah , no further questions at this time . I'll turn the conference back to management for closing remarks .

Speaker #3: Thank you very much for joining us today . We appreciate your support and look forward to updating you on our next quarter's conference call in a few months time .