2022-08-03 20:05Financial Data and Key Metrics Changes - Total revenues for Q2 2022 were RMB 1.73 billion, with adjusted net income attributable to Autohome at RMB 472 million and an adjusted net margin of 27.2% [8][37] - Gross margin in Q2 2022 was 83.9%, down from 86.5% in Q2 2021 [35] - Operating profit for Q2 2022 was RMB 301 million, compared to RMB 673 million in the same period of 2021 [37] - Non-GAAP diluted earnings per share were RMB 0.94, down from RMB 1.58 in Q2 2021 [38] Business Line Data and Key Metrics Changes - Media services revenue was RMB 531 million, while lead generation services revenue was RMB 753 million, and online marketplace and others revenue was RMB 450 million [34] - Revenue from dealer digital products surged over 40% year-over-year, with more than 18,000 clients [25] - Revenue generated from NEV brands significantly increased year-over-year, outperforming the market sales growth rate [28] Market Data and Key Metrics Changes - Passenger vehicle sales nationwide increased by 22% year-over-year in June, although overall sales volume fell by about 10% in Q2 2022 [9][32] - The used car market is expected to grow by 23% in the second half of the year, supported by new government policies [67] - The total car sales in China for 2022 are forecasted to reach 27 million units, a 3% increase from the previous year [48] Company Strategy and Development Direction - Autohome is focusing on enhancing its digital products and services, expanding its business model, and launching new offerings to meet customer demands [12][17] - The company is leveraging synergies with Ping An Group to improve service offerings and user experiences [18] - Autohome aims to attract younger and female users by signing Eileen Gu as a brand ambassador [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the automotive market in the second half of 2022, driven by government stimulus policies [47][49] - The company anticipates that the easing of pandemic restrictions and the implementation of favorable policies will positively impact auto sales [32][33] - Management believes that the chip supply situation has improved, reducing concerns about production bottlenecks for OEMs [51][52] Other Important Information - Autohome's balance sheet remains strong, with cash, cash equivalents, and short-term investments totaling RMB 20.94 billion as of June 30, 2022 [39] - The company has repurchased approximately 1.88 million ADS for a total cost of approximately US$54.2 million as part of its share repurchase program [40] Q&A Session Summary Question: Auto market trend in the second half of the year - Management noted that the auto market is expected to recover strongly due to government stimulus policies and improved chip supply [47][49] Question: Data products growth momentum - Management indicated that data product revenue is expected to increase in the second half of the year as new car launches accelerate [56] Question: Competition from non-vertical platforms - Management acknowledged competition from platforms like Weibo and Bilibili but emphasized Autohome's diversified business model and strong position in the vertical auto media industry [60][62] Question: Used car transaction expectations - Management forecasted a 23% growth in the used car business for the second half of the year, supported by new government policies [67] Question: NEV revenue contribution - Management stated that Autohome is well-positioned in the NEV market and expects strong revenue growth from this segment [71]