2025-07-31 13:00Financial Data and Key Metrics Changes - Net revenues for the second quarter were 1,676 million, with a year-over-year increase of 20.5% [19] - Media services revenues were 279 million, leads and recent services revenues were 733 million, and online marketplace and other revenues were 746 million [19] - Gross margin in the second quarter was 71.5%, down from 81.5% in the same period last year [20] - Operating profit was 297 million, compared to 412 million for the same period in 2024 [21] - Adjusted net income attributable to the company was 476 million, compared to 572 million in the corresponding period of 2024 [21] - Cash, cash equivalents, and short-term investments totaled 22,050 million as of June 30, 2025 [22] Business Line Data and Key Metrics Changes - Total revenues from the new retail business increased by 27% year-over-year [15] - The number of new retail franchise stores surpassed 200, expanding service coverage [8] - Average mobile daily active users reached 75.74 million in June 2025, up by 11.5% from the same period last year [14] Market Data and Key Metrics Changes - The auto market is experiencing a price war, but prices have begun to stabilize since July [32] - New energy vehicle (NEV) exports increased by 48% year-over-year, indicating strong overseas expansion [33] - The overall Chinese auto export is expected to reach around 7 million units this year, with potential growth to 10 million in the next one to two years [39] Company Strategy and Development Direction - The company is focusing on AI-driven product innovation and enhancing the automotive consumer experience through technology [7] - Plans to deepen the deployment of the automotive ecosystem by capitalizing on trends of electrification, intelligence, and globalization [11] - The company aims to build a comprehensive user engagement network through strategic collaborations with leading platforms [9] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the media service business in the second half of the year, expecting OEMs to invest more in advertising budgets [28] - The company anticipates a gradual recovery in the auto market, with government policies supporting stabilization [32] - The used car market is expected to recover as car ownership increases and average car age remains at 6.8 years [47] Other Important Information - The company has launched an international version of its website, featuring over 1,900 vehicle models from 52 Chinese automobile brands [10] - A new share repurchase program was authorized, allowing the company to repurchase up to 200 million USD of its shares [22] Q&A Session Summary Question: What is the outlook for media services revenue in the second half? - Management expects a bullish trend in media services due to OEMs gradually recovering and increasing advertising budgets during peak seasons [28] Question: What is the outlook for the auto market in 2025 and updates on shareholder return plans? - Management noted that the auto market is stabilizing, with a focus on AI technologies and global expansion. The cash dividend payout will remain no lower than 1.5 billion for the year [41] Question: How does management view competition in the second half and the recovery of the used car industry? - Management indicated that competition is expected to normalize due to government policies, and the used car market may recover as consumer interest increases [47][51] Question: What progress has been made in the NEV business and data products? - The company has exceeded 200 franchise stores and is enhancing AI functionalities in its offerings. Future plans include integrating AI technologies to improve customer experiences [56][58]