Autohome Inc. Q2 FY2025 earnings call

• Advancing O2O strategy by optimizing online-offline synergies, improving user experience and service quality. Accelerated AI-driven product innovation, with AI Smart Assistant covering scenarios for new and used cars, and AI integration in dealership customer journey. - New retail: Over 200 new retail franchise stores, with online [Buy For Me] live stream and offline services like immersive VR movie, AI-assisted test driving, etc. - AI technology: End-to-end intelligent solutions for consumers and dealerships, served over 50 automotive brands. Launched international version of Autohome website with over 1,900 vehicle models from 52 Chinese brands. - Media services: Developed new vehicle content matrix around live streaming, e.g., Autohome new car first test program with over 160 million views. - NEV new retail: Over 200 Autohome Space and satellite stores, using VR, AI-assisted test driving, etc., to enhance conversion. - Used car business: Launched flagship Certified Used Car section with carefully selected brands, strict dealer qualification, and comprehensive inspection reports.

Net revenues for the second quarter were CNY 1.76 billion. Media services revenues were CNY 279 million, leads generation services revenues were CNY 733 million, and online marketplace and others revenues were CNY 746 million, up 20.5% year-over-year. NEV new retail business total revenues in the second quarter continued to grow, increasing by 27% from last year. Media services revenues contributed approximately 15.85% to total net revenues (279 million / 1.76 billion), leads generation services contributed ~41.65% (733 million / 1.76 billion), and online marketplace and others contributed ~42.5% (746 million / 1.76 billion).

• Media services: Expect media service business to be more bullish in the second half due to OEM budget recovery during Golden September and Silver October. - Share repurchase: Board authorized repurchase of up to USD 200 million of ADS, with ~USD 142 million spent as of July 25, 2025. - Dividend: Board committed to cash dividend payout of no lower than RMB 1.5 billion in 2025.

• Uncertainties in OEM advertising budgets due to ongoing price war. - Market competition impacts on profit margins for automakers, which could affect Autohome's revenue. - Challenges in used car market transparency and consumer hesitation to purchase used cars despite increasing car ownership.

Q: About the trend in media services revenue in the second half and expectations.

A: Media service business will be more bullish in the second half as OEMs' profits recover and they invest more in advertising budgets during Golden September and Silver October, with Autohome able to meet OEM needs through online-offline services.

Q: Outlook on the auto market for the second half of 2025 and updates on shareholder return plans.

A: Auto market price war easing, market differentiation intensifying, NEV growth rate slowing but auto exports bright. Share repurchase plan unchanged, and Board committed to cash dividend payout of no lower than RMB 1.5 billion in 2025.

Q: Industry competition in the second half and used car industry recovery.

A: Market expected to return to reasonable competition with policy guidance. Used car market recovery related to car ownership, age, and Autohome's efforts in enhancing standards and transparency, with secondhand vehicle sales predicted to increase if price war eases.

Q: Progress on NEV business and data products.

A: NEV new retail stores over 200, with functional innovations. Data products leveraging 20 years of content accumulation, combining strengths for refined operation and building large language model moat.