AUTOHOME(ATHM)2025-05-08 13:00Financial Data and Key Metrics Changes - In the first quarter, net revenues were RMB 1,450 million, with media services revenues at RMB 242 million, lead generation services revenues at RMB 645 million, and online marketplace revenues at RMB 566 million, reflecting a 2% year-over-year increase [19] - Cost of revenue was RMB 316 million, with a gross margin of 78.3%, down from 81.3% in the same period last year [19] - Operating profit was RMB 233 million, compared to RMB 276 million for the same period last year, and adjusted net income attributable to Autohome was RMB 421 million, down from RMB 494 million year-over-year [20] - Non-GAAP basic and diluted earnings per share were both 0.88, compared to 1.02 in the corresponding period of 2024 [20] - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled RMB 21,930 million [20] Business Line Data and Key Metrics Changes - Revenues from new energy vehicles (NEVs) and the new retail business increased by 72.6% year-over-year [14] - Revenues from data products increased by over 5% year-over-year [16] - The average mobile daily active users (DAUs) reached 76.92 million in March 2025, up 10.8% from the same period last year [13] Market Data and Key Metrics Changes - Overall new car sales grew by 6% year-on-year in Q1, with NEV sales increasing by 36% year-on-year, although this growth rate has slowed compared to previous periods [25][28] - Internal combustion engine (ICE) vehicle sales declined by 12% year-on-year [25] - The average profit margin of China's auto industry was only 3.9%, significantly lower than the 5.6% average for downstream industrial enterprises [26] Company Strategy and Development Direction - The company is focused on enhancing user experience and expanding its new retail network, with plans to exceed 500 locations by the end of 2025 [30][32] - Autohome aims to transform from a pure automotive media vertical into a comprehensive auto lifestyle ecosystem, enhancing the global automotive consumer ownership experience [18] - The company is actively exploring new emerging sectors and building a fully integrated online-to-offline ecosystem for services [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing structural adjustments in the market, with NEVs becoming the main growth driver and continued policy support leading to steady, modest growth [28] - The company is committed to improving user experience through intelligent professional tools and expanding its new retail network to address user pain points [29] - Management expects the price war in the auto industry to continue in the short run but believes that the room for further price decline is limited [40] Other Important Information - The company has authorized a new share repurchase program of up to USD 200 million, with approximately USD 128 million already executed as of May 2025 [21] - The company plans to maintain a consistent and stable shareholder return, with a dividend payout of no less than RMB 1.5 billion for the year [49] Q&A Session Summary Question: What is the implication of the auto industry's performance in Q1 for Autohome and the outlook for 2025? - Management noted that while new car sales grew, NEVs stood out with a growth rate of 36%, although slower than previous periods. They expect ongoing structural adjustments with NEVs as the main growth driver and continued policy support [24][28] Question: What is the progress on the new retail model and future plans? - Management reported the establishment of 29 space stores and 170 franchise satellite stores, with plans to exceed 500 locations by the end of 2025, focusing on lower-tier markets [30][32] Question: What is the status of the Harris acquisition and its impact on Autohome's strategy? - The acquisition is still pending regulatory approval, and management emphasized a commitment to the online-to-offline new retail model and the development of new energy vehicles [38] Question: When will OEM pricing stabilize, and what is the impact of dealership bankruptcies on lead generation? - Management believes the price war will continue in the short run but expects stabilization after inventory clearance and the end of subsidy policy transitions. They noted that dealers face challenges in transforming their business models [40][42] Question: How does management view the impact of trade tensions on the car market? - Management acknowledged some impact from trade tensions but emphasized that the domestic market is largely driven by NEVs, limiting the overall effect on Autohome's business [54][55]