Autohome, Inc. Q1 FY2025 earnings call

• Focused on strengthening business fundamentals and enhancing innovative initiatives, enriching content portfolio with travel, camping, and smart technology sections. - Enhanced user experience with upgraded live streaming and launched starting price tool. - Actively driving technological innovation, deepening AI application in advertising, membership products, new media, etc. - New retail business has nearly 200 stores, and upgraded Autohome APP with AI smart assistant. - In used car business, built collaborative O2O ecosystem. - Expanded content coverage to car lifestyle and culture, with average mobile DAUs reaching 76.92 million in March 2025, up 10.8% year-over-year.

Net revenues for the first quarter were RMB 1.45 billion. Media services revenues were RMB 242 million, lead generation services revenues were RMB 645 million, and online marketplace and others revenues were RMB 566 million, up 2% year-over-year. Cost of revenues in the first quarter was RMB 316 million compared to RMB 301 million in the corresponding period last year. Gross margin in the first quarter was 78.3% compared to 81.3% during the first quarter last year. Adjusted net income attributable to Autohome was RMB 421 million in the first quarter compared to RMB 494 million in the corresponding period of 2024. As of March 31, 2025, cash, cash equivalents, and short-term investments were RMB 21.93 billion. Net operating cash flow was RMB 135 million in the first quarter. Revenues from NEVs, including new retail business, increased by 72.6% year-over-year. Revenues from data products increased by over 5% year-over-year.

• Plan to expand offline new retail presence, aiming to exceed 500 total locations (space stores and satellite stores) by end of 2025, focusing on lower-tier and rural markets, and extend reach to most prefecture-level cities, counties, and rural areas in 3 years. - Board authorized share repurchase program of up to USD 200 million, and as of May 2, 2025, repurchased approximately 4.78 million ADS for total cost of approximately USD 128 million. - Dividend payout will be no less than RMB 1.5 billion this year.

• Forward-looking statements subject to risks and uncertainties outlined in public filings with U.S. Securities and Exchange Commission and Hong Kong Stock Exchange. - Potential risks include those that may cause actual results to differ materially from current expectations.

Q: What's the implication to the sector and Autohome of the auto industry performance in Q1 and management's expectation about the 2025 industry outlook? And about Retail progress and plan going forward?

A: Song Yang analyzed market characteristics, new policies, and industry trends. Stated new retail has 29 space stores and 170 satellite stores, plans to exceed 500 locations by end 2025, with upgrades like Shanghai Space store.

Q: Latest status of Haier's acquisition and new development strategies, and when OEMs' pricing to stabilize and impact of dealers on lead generation?

A: Haier's acquisition stake transfer not completed, under regulatory approval. Price war expected to continue short term, room for further decline limited. Dealers face challenges with ICE decline, need to transform.

Q: Update on new retail model strategy and expansion pace, and shareholder return plans?

A: New retail in version 3.0, aiming to have 50 space stores and 500 satellite stores by end 2025, over 3 years 1,000 satellite stores. Dividend payout no less than RMB 1.5 billion, share repurchase program with USD 200 million, repurchased ~USD 128 million.

Q: Impact of trade tensions on car market and business?

A: Trade tensions may cause price fluctuations for U.S. auto brands, but limited direct impact on Autohome as main business is domestic.