2024-07-31 18:20Financial Data and Key Metrics Changes - In Q2 2024, Autohome's total revenues grew by 2.2% year-over-year to RMB1.87 billion, with adjusted net income attributable to Autohome at RMB572 million, resulting in an adjusted net profit margin of 30.6% [7][21][22] - Media services revenues were RMB433 million, leads generation services revenues were RMB820 million, and online marketplace and others revenues were RMB619 million, with the latter up 14% year-over-year [21] - Gross margin in Q2 2024 was 81.5%, slightly down from 82% in the same period last year [22] Business Line Data and Key Metrics Changes - Revenues from data products increased by over 15% year-over-year, while revenues from NEV (New Energy Vehicle) nearly doubled compared to the same period last year [8][18] - The innovative business lines, including the new retail business and digitalization efforts, contributed to the overall revenue growth and user engagement [9][10] Market Data and Key Metrics Changes - The average mobile daily active users (DAUs) reached 67.91 million in June, an increase of 8.3% year-over-year, solidifying Autohome's leading position in the auto media vertical [14] - The used car market faced challenges, with a 1% year-over-year drop in used car sales in June, indicating pressure from new car pricing [37] Company Strategy and Development Direction - Autohome is focusing on a user-centric approach and innovation to drive development, exploring new models of online-to-offline integration [11] - The company is expanding its new retail business through a satellite plan, establishing a network of stores in low-tier cities to enhance market reach [9][16] - Collaboration with Ping An Group aims to leverage resources for greater synergies in the automotive ecosystem [10] Management Comments on Operating Environment and Future Outlook - Management noted that the ongoing price war in the automotive market has led to significant pressures on profitability and brand value for luxury brands, prompting some to withdraw from aggressive pricing strategies [26][30] - Recent government policies aimed at promoting automobile consumption are expected to positively impact the market, with anticipated increases in NEV sales [31][34] Other Important Information - Autohome's balance sheet remains strong, with cash, cash equivalents, and short-term investments totaling RMB23.47 billion as of June 30, 2024 [23] - The company plans to maintain a dividend payout of no less than RMB1.5 billion annually from 2024 to 2026, reflecting a commitment to returning value to shareholders [45] Q&A Session Summary Question: Reasons behind luxury car brands exiting the price war and impact of government policies - Management explained that the price war has lasted over 500 days, negatively affecting sales and brand image, leading luxury brands to withdraw from aggressive pricing [26][30] - Recent government policies are expected to drive around 2 million car sales this year, benefiting the NEV business [31][34] Question: Current situation of the used car market and dealer closures - The used car market is under pressure, with a 1% drop in sales year-over-year, and many potential sellers are hesitant due to price volatility [37] - Traditional ICE dealers are facing inevitable closures, with around 5,000 stores shut down in the first half of the year, reflecting industry restructuring [41] Question: Competition from internet platforms in lead generation and potential for dividends - Management acknowledged long-term competition in lead generation and emphasized content innovation and user experience enhancement as key strategies [43] - The company has a history of increasing dividend payouts and plans to maintain a significant payout ratio moving forward [45] Question: Expansion plans for the new retail model for NEVs - Autohome has established its Space stores in 28 cities and is testing the satellite store model in five cities, aiming to enhance coverage in low-tier markets [47]