Autohome, Inc. Q4 FY2024 earnings call

• Haier Group became the new controlling shareholder, with Ping An remaining a key shareholder. - Online traffic reached new highs with average mobile DAU exceeding 77 million in December 2024. - Offline channels: over 150 franchise offline stores, and helped over 200 cities with trade-in for new auto shows. - Technological innovation: AI integrated across business, enhancing productivity. - NEV new retail: strong growth, with 28 franchised Autohome Space stores and over 130 satellite stores, and revenues from NEV increased by 55.2% year-over-year. - Supported national trade-in policies, hosting nearly 1,000 offline auto shows. - AI-driven upgrades in products, like AIGC video generation tool.

Total revenue for 2024 reached RMB 7.04 billion. Revenue from online marketplace and others increased by 8.1% year-over-year and accounted for 33.8% of total revenue. NEV business revenues in 2024 increased by 55.2% year-over-year. Adjusted net income attributable to Autohome in 2024 was RMB 2.05 billion, with an adjusted net margin of 29.1%.

• 2025 auto market sales expected to increase by 2% year-over-year. - NEV new retail model to continue growth, focusing on O2O collaboration. - Dividend and share repurchase program to continue, with plans to repurchase up to USD 200 million of ADS.

• Forward-looking statements subject to risks outlined in public filings with U.S. Securities and Exchange Commission and Hong Kong Stock Exchange, where actual results may differ materially from expectations.

Q: What's the background and purpose of the transaction with CARTECH and how it will impact business? And what's the management outlook for the auto market in 2025?

A: Haier's strategic shareholding in Autohome is based on multi-phased consideration, and Autohome will be a key hub in Haier's automotive ecosystem. 2025 auto market sales expected to increase by 2% year-over-year.

Q: How is the lead generation contract renewal situation and potential in lead business? And what's the outlook for the used car market in 2025?

A: Lead generation contract renewal exceeds 85%, with AI implementation and brand advantages. Used car market expected to continue growth with continued price wars but less volatility, focusing on transparency.

Q: What's the outlook on 2025 revenue and margin for NEV's new retail model and its expansion pace?

A: NEV new retail to focus on O2O collaboration, with continued growth and initial shape of offline channels.

Q: How should we think about further lifting the payout ratio or shareholder return?

A: Past dividend payouts have increased, with plans to continue dividend payout and share buyback policies to boost shareholder return.