2023-07-27 16:37Financial Data and Key Metrics Changes - Total revenues for Q2 2023 were RMB1.83 billion, representing a 5.8% year-over-year increase, marking the fourth consecutive quarter of positive growth [6][17] - Adjusted net income attributable to Autohome increased by 20.6% year-over-year to RMB569 million, with an adjusted net margin of 31.1%, up 3.8 percentage points year-over-year [7][19] - Gross margin decreased to 82% from 83.9% in Q2 2022 [17] Business Line Data and Key Metrics Changes - Online marketplace and others revenues grew by 20.4% year-over-year, driven by strong contributions from TTP and data products [6][17] - Revenue from NEV brands surged by 60% year-over-year, indicating robust growth in this segment [12] - TTP's revenue also saw significant growth, contributing to the overall performance of the used car business [15][36] Market Data and Key Metrics Changes - The penetration rate of NEVs in the passenger car market reached 32.4% by the end of June 2023, supported by government policies and marketing activities [25] - Used car sales volume in China grew by 21.3% in Q2 2023, with expectations for continued growth in the market [36] Company Strategy and Development Direction - The company is focusing on NEV and artificial intelligence as key growth areas, aiming to innovate and enhance product offerings [10][16] - Autohome is expanding its retail franchise model with the launch of Autohome Energy Space stores, aiming to provide a comprehensive service for NEV consumers [7][12] - The company is leveraging AI technology to improve operational efficiency and enhance customer service [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic auto market in the second half of 2023, citing recovery trends and government stimulus policies [23][28] - The company anticipates structural opportunities in NEVs and used cars, with a long-term growth outlook for both segments [25][28] Other Important Information - As of June 30, 2023, the company had cash, cash equivalents, and short-term investments totaling RMB23.34 billion [19] - The share repurchase program has seen approximately 4.7 million ADS repurchased for a total cost of about US$141 million [19] Q&A Session Summary Question: Outlook for the domestic auto market in the second half of 2023 and expansion plans for the new retail model - Management noted a promising outlook for the auto market, driven by recovery from COVID-19 impacts and government stimulus policies [23][24][25] Question: Drivers behind strong DAU growth and consumption power interpretation - Management attributed DAU growth to high-quality content and targeted user engagement strategies [31][32] Question: Strategies for the used car market and TTP - Management highlighted significant growth in used car sales and TTP's profitability, emphasizing a consolidated approach to the used car ecosystem [36][38] Question: Use of cash in the coming years - Management confirmed a commitment to returning value to shareholders through dividends and share buybacks, alongside exploring other investment opportunities [39][40] Question: Current status of data products for dealers - Management reported over 20,000 paying dealers using more than 10 data products, with high penetration rates and positive feedback [42][43]