Autohome Inc. (ATHM) Q2 2025 Earnings Call Transcript

Ladies and gentlemen, thank you for standing by for Otto Holmes' second quarter and interim 2025 earnings conference call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow management's prepared remarks. As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time. The live and archived webcast of this earnings conference call will also be available on Otto Holmes IR's website. It is now my pleasure to introduce your host, Mr. Sterling Song, Autohome's IR Director. Mr. Song, please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Autohome's second quarter and the Interim 2025 Earnings Conference Call. Earlier today, Autohome distributed its earnings release, which can be found on the company's IR website at ir.autohome.com.cs. Joining me on today's call are Chief Executive Officer Ms. Sung Yang and Chief Financial Officer Ms. Kui Yan Zeng. Management will go through their prepared remarks first, which will be followed by a Q&A session where they will be available to answer questions. Before we continue, please note that the discussion today will contain further-looking statements made under the State Harbor Provision of the U.S. Private Securities Education Reform Act of 1995. Forelooking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filing with the U.S. Securities Exchange Commission and the Hong Kong South Exchange. Autohom doesn't undertake any obligation to update any forelooking statements except as required under applicable law. Please also know that Autohom earnings press release and this conference call include discussions of certain unordinated non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. I will now turn the call over to Autohom CEO, Ms. Yang, for opening remarks. Please go ahead, Ms. Yang. Thank you, Sterling. Hello, everyone. This is Song Yang. Thank you for joining our earnings conference call today. In the first half of the year, we made steady progress in advancing our OCO strategy. By effectively optimizing the synergies between our online and offline resources, we improved both user experience and service quality. At the same time, we accelerated AI-driven product innovation and upgrade, leveraging intelligent technologies as a core enabler to empower user decision-making and help customers reduce costs while improving efficiency. On the new retail front, we are redefining the automotive consumer experience. Through technology, online, our Buy4Me livestream enables multi-vehicle comparison and city-wide price inquiries. Offline, we deliver differentiated experience through three key services, immersive VR movie, AI-assisted test driving with car owner guidance, and AI-powered purchasing assistance. This innovation significantly reduced transaction costs for both ends, users, and customers, creating a complete online-to-offline service ecosystem. As of the second quarter, the number of new retail franchise stores has surpassed 200, continuously expanding our service coverage and reaching a broader consumer base. In terms of AI technology applications, we've created end-to-end intelligent solutions for consumers. Our AI smart system now covers all scenarios for both new and used cars, with industry-leading performance in question and answer. For dealerships, we've integrated AI technology into the entire customer journey from marketing to customer acquisition to transaction conversion and to after-sales services, creating a comprehensive and closed digital marketing loop that enhances operational efficiency. To date, we've already served over 50 automotive brands.

Thank you.

Additionally, we've established an extensive ecosystem of alliances and continue to expand our partnership networks through strategic collaboration with leading platforms, including Alipay. Through jointly developed channels and co-branded marketing initiatives, we've built a comprehensive user engagement network to amplify our brand influence. Notably, in late June, we officially launched the international version of AutoHome website, featuring over 1,900 vehicle models from 52 Chinese automobile brands going global. This not only provides substantial support for the globalization of China's auto industry, but also marks a crucial step forward in our international business expansion. Looking forward, we will continue to expand AI applications across our products and services and deepen the deployment of our automotive ecosystem by capitalizing on the industry trends of electrification, intelligence, and globalization will further drive the transformation of the automotive consumer experience. With that, I will now turn the call over to our Chief Financial Officer, Craig Zeng. a closer look at the 2015 operating and financial results. 构建以直播为载体的新车内容矩阵 撬动新车消费内容增长 以6月上线的新车手册栏目为例 我们聚焦重点新车上市节点 打造新能源SUV巅峰对决专题 进行5车5天50多小时的高密度实测直播 全网曝光超1.6亿次 新车内容矩阵不仅强化了用户对上市新车的认知 更显著提升了之家专业定调能力的行业影响力 In the second quarter, we re-inspired our brand position as a go-to platform for discovering new car launches with the position of for new car launching come to auto home We did this by developing a comprehensive new vehicle content matrix centered around live streaming This initiative focuses on four key dimensions, the B showcasing, initial test driving, professional testing, and technical intelligence, effectively driving the content growth around new vehicle consumption. For example, in June, we launched the AutoHome New Car First Test Program and created a special feature titled The Ultimate New Energy SUV Showdown. This intensive testing marathon delivered more than 50 hours of intensive testing, live streaming across five vehicles in five days, generating over 160 million views across various platforms. The program not only strengthens consumer understanding of newly launched vehicles, but also significantly enhanced auto home industry influence as a trusted authority in professional vehicle assessment. Thank you. In June, at the International Automotive and Supply Chain Exposition in Hong Kong, we took Chinese brands' globalization as our core theme. Through a continuous six-hour bilingual live streaming in both Chinese and English, we showcased the exhibition highlights while establishing a dedicated interactive technology zone to demonstrate AutoHome's cutting-edge AI technology and VR innovation to global audiences. This initiative gathered with the launch of the international version of AutoHome website mentioned by Ms. Yang and support our strong progress in supporting Chinese auto brands in their global expansion and promoting our global capabilities. In this month, we continue to build a large-scale energy alliance and create more platforms and more market partners. 构建全链路生态协同 进一步提升汽车之家的品牌声量和影响力 例如5月份 之家与支付宝车生活业务板块达成战略合作 围绕支付宝平台用户及认证车主 推出看车选车服务 并设置购车补贴专区 服务已旧换新及意向购车人群 根据QuestMobile的数据 汽车之家6月移动端日均用户量达到 Additionally, we continue to expand our traffic alliance network by promoting multi-platform and multi-scenario collaborations to create synergies across the entire value chain, further enhancing auto-homes' brand popularity and industry influence. A prime example is our strategic partnership with Alipay AutoLife Service Sector in May. Together, we launched a dedicated car wheeling and selection service for RDP users and certified car owners, including a special subsidy section to serve trade-ins and potential car buyers. According to Quest Mobile, our average mobile DAU reached 75.74 million in June 2025, up by 11.5% from the same period last year, reflecting our sustained growth in user scale and expanding platform influence. 采取全息直播技术,并将线上服务延伸至线下体验。 汽车之家空间站以VR空间大电影作为门店引流的最新抓手,通过真实车主陪同消费者多车对比试驾,增强用户信任,提升订单转化率。 同时,AI买手提供客观中立的看选服务,进一步提升门店接待效率。 截至二季度,汽车之家空间站和卫星加盟店总数已突破200家,之家包含新零售在内的新能源品牌总收入也在持续攀升,二季度营收同比增幅达27%。 Turning to NEV, our new retail business is committed to building a one-stop-auto-automative ecosystem, empowering customer service through emerging technologies. Online, we use holographic live streaming technology and expand digital services into offline experiences. The Autum Space Store leveraged immersive VR movies as a new driver of store traffic and performed multi-vehicle testing driving with real-car owners to increase trust and improve conversion rates. Meanwhile, our AI-powered car purchasing assistance provides objective and neutral vehicle recommendations, further improving in-store service efficiency. As of the second quarter, total number of auto-home space and satellite stores has reached more than 200. Total revenues from NEVs in the second quarter, including those from the new retail business, continued to grow, increasing by 27% from last year. 数字化方面,我们以数据加技术为核心发展驱动,整合独家数据资源与行业分析模型,升级推出五大数科产品线,包括AI营销大脑,AI货客先锋,AI线索大师,AI消灌神器和AI查车专家。 从赋能精准营销决策制定,支持自动化内容生产与智能分发,到提升出客效率与邀约能力,和强化一线销售顾问业务能力,再到提供车矿车架查询系统,我们仅仅依托AI技术,重构了营销全链路,为合作伙伴提供从洞察到转化的全域智能解决方案,有效推动了客户业务效能提升。 On digitalization, we've adopted a development strategy centered on data plus technology as the core development driver, integrate our proprietary data resources and industry analysis models to upgrade and launch five major digital intelligence product lines, including AI marketing brain, AI customer acquisition, AI Leads Master, AI Sales Champion, and AI Vehicle Inspector. These tools empower a comprehensive range of marketing needs, including enabling accurate marketing decision-making, automating content creation with intelligent distribution, improving user engagement efficiency and store visit conversion, strengthening frontline sales consultant capabilities, as well as providing vehicle condition and pricing inquiry systems. Powered by AI, we've redefined the entire marketing value chain, delivering a comprehensive set of intelligent solutions from insights to conversion for partners, which effectively drives improvements in customer business efficiency. 严格把控车商资质 店内车员配置完整的检测报告 确保车况安全透明 并提供可靠的售后服务保障 真正实现线上所见及线下所得 目前首批商家已经完成入住 未来我们将继续以诚信和标准为核心 拓展与头部车商的合作 扩大优质车员覆盖 让消费者能够放心购车 In our used car business, we continue to enhance integration of our online and offline services system. In late June, we officially launched our flagship certified used car section, featuring carefully selected top-tier brands for cooperation and strictly controlling used car dealer qualifications. Each used vehicle in the store comes with comprehensive inspection reports to ensure the safety and transparency of vehicle conditions. Additionally, we also provide reliable after-sales support, ensuring that what consumers see online is what they get offline. At present, we have already onboarded our first group of dealers to our platform. In the future, we will continue to prioritize integrity and standardize processes as our principles, expand cooperation with leading auto dealers, increase the coverage of high-quality vehicle sources, and enable consumers to purchase with greater peace of mind in their purchasing journey. In summary, we are accelerating the implementation of our auto development strategy. We are continuously incubating new growth drivers and are fully committed to building auto home into an authoritative professional information platform and a seamless transaction platform. We will focus on the long-term, continue to broaden our business horizon with new technologies, and create a more efficient automotive service ecosystem to promote our steady development. 接下来,我来向大家简述一下汽车之家2025年第二季度的主要财务情况。 请注意,我将在今天的讨论中仅以人民币作为货币单位,除非另有说明。 With that, now please let me briefly walk you through the key financials for the second quarter of 2025. Please know that I will reference RMB only in my discussion today, unless otherwise stated. 第二季度收入总额为17.6亿元 据起来讲,媒体服务收入为2.79亿元 线索服务收入为7.33亿元 在线营销及其他收入为7.46亿元 同比增长20.5% Net revenues for the second quarter were 1.76 billion Breaking it down, media services revenues were 279 million Least generation services revenues were 733 million, and online marketplace and others' revenues were 746 million, up 20.5% year-over-year. 成本方面,第二季度营业成本为5.03亿元,上年同期为3.46亿元. 第二季度毛利率为71.4%,上年同期为81.5%。 On cost, cost of revenues in the second quarter was $503 million, compared to $346 million in the second quarter of 2024. Growth margin in the second quarter was 71.4%, compared to 81.5% during the same period last year. In the second quarter, the sales and marketing expenses in the second quarter were $630 million, compared to $753 million in the second quarter. quarter of 2024. Product and development expenses were $253 million compared to $350 million in the second quarter of last year. General and administrative expenses were $133 million compared to $180 million during the same period last year. 总体来讲,汽车之家第二季度营业利润为2.97亿元,上年同期为4.12亿元,归属于汽车之家的经调整净利润为4.76亿元,上年同期为5.72亿元. Overall, we delivered an operating profit of $297 million in the second quarter, compared to $412 million for the same period of 2024. Adjusted net income attributable to auto home was $476 million in the second quarter, compared to $572 million in the corresponding period of 2024. 第二季度,经调整基本和贪博美股净利润均为1.01元,上年同期均为1.18元 第二季度,经调整基本和贪博美股,美国存托股净利润分别为4.06元和4.04元,上年同期分别为4.72元和4.71元 Non-GAAP basic and diluted earnings per share in the second quarter were both 1.01 compared to 1.18 in the corresponding period of 2024. Non-GAAP basic and diluted earnings per ADS in the second quarter were 4.06 and 4.04 respectively compared to 4.72 and 4.71 actively in the corresponding period of 2024. 截至2025年6月30日,我们的资产负代表持续表现强劲。现金、现金等价物及短期投资合计为220.5亿元。第二季度,来自经营活动的现金流量进额为4.95亿元。 As of June 30, 2025, our balance sheet remains robust with cash, cash equivalents, and short-term investments of $22.05 billion. We generated net operating cash flow of $495 million in the second quarter. On September 4, 2024, our Board of Directors authorized a new share repurchase program under which we are permitted to repurchase up to $200 million of auto homes ADS for a period not exceed 12 months thereafter. As of July 25, 2025, we have repurchased approximately $5.35 million ADS for a total cost of approximately $142 million. 以上是公司的财务数据汇总,下面我们开始问答环境。 Okay. The above is our financial summary. With that, now we are ready to open up the Q&A session. Operator, please open the line for Q&A.

Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 11 again. One moment for our first question. Our first question coming from the line of Thomas Chung with Jeffries.

Your line is now open. 晚上好,谢谢管理层接受我的提问。 我的问题是关于我们对于自家下半年在媒体业务发展有什么预期还有看法。 Thanks management for taking my question. My question is about the media services revenue. Can management share your thoughts about the trend in the second half and also the expectations? Thank you. 呃 谢谢 对于整体的媒体业务呢 就是主要还是主机厂吧 主机厂的这个情况比较重要 呃 从 现在的这个整体的这个 车市来看呢 这个价格战还在进行当中 啊 价格能够起稳呢 啊 可能还是需要一定的时间呢 我们也看到从国家从各方面也都有 这个 一定的干预吧 希望不要有这种这个不理智的这种价格战 所以下半年呢 一般来说的话呢 经久零时的这个汽车销售呢 这个传统的一个是旺季吧 还有年底会有一个充量 所以主机厂呢 应该能够投入一些更多的 比上半年更多的广告预算 那之家呢 也会积极的争取更多的这个份额 另外呢 之家呢 通过线上线下的一体化服务呢 能够满足呢 不同的厂商的需求 and we can also get a plan to achieve more in the future.

Okay, thank you for raising this question. As for the media service business, I believe that we'll continue to look at the OEM budgeting trend. Because we're still experiencing the price fall, as a result, we still need some time for the price to go stable. And I believe that with the government's intervention and the policy being released, actually, we will expect that actually the OEM process will gradually recover and the OEMs will invest more in advertising budgets during the traditional peak season of golden September and silver October in the second half of the year. At the same time, Autohome can also meet the needs of different manufacturers through online and offline integrated services and obtain automakers' budgets through multiple channels. As a result, we think that in the second half of the year, we're more bullish about the media service business than the first half of the year. Thank you.

Our next question coming from the line of Xiaodan Tseng with CICC. Your line is now open. 大家好, 感谢接受我的提问啊, 那我这边有两个问题, 那第一个是想请管理层分享一下对于下半年车市的展望, 那另外我们看到公司这个2亿美金的回购计划已经执行了超过1.4亿美金了, 那也想请管理层分享一下就是公司股东回报的计划是否有进一步的更新, 那我快速翻译一下。 So thanks, management, for taking my questions. So first of all, could management share your outlook on the auto market for the second half of 2025? And are there any updates on the shareholder return plans?

Thank you for raising this question.

I'm Yang Song. I'll take the first question, and the second question will be addressed by Mr. Zeng. First of all, let me share some of the recent market dynamics and the future trends. So first of all, we think that in order to cope with the price wall of the auto industry, recently we can see that the multiple government authorities have been releasing all kinds of policies for the guidance to fight against this kind of rat racing trend. So since July, we have seen that the price has been gradually going stable, and medium and long run, we think that the price wall will going to be eased, and this will be very positive for the entire industry as well as auto homes. and the second thing we see that the auto market differentiation is intensifying on the first hand you can see sales volume and profits of the automakers are concentrating on the top players with the share of independent brands continue to rise however at the same time due to trading price for volume the overall profit of the auto industry is still under a lot of pressure. And thirdly, we can see that NEV continue to grow, but the growth rate has slowed down comparing with the second half of the year.

So we can see that China's electric vehicles are coming out. This is our future opportunity.

And the third point I want to talk about is that the auto exports have performed brightly. And according to the data from the China Passenger Car Association, in the first half of 2025, the China's passenger vehicle exports increased by 6.8% year-on-year, among which new energy vehicle exports increased by 48% worldwide. So you can see that the Chinese automakers are accelerating their overseas expansion and this will be very positive for Autofom. And based on the above-mentioned three understanding and forecasts about the market trend, actually in Autofom, we will also have the following strategies. First of all, We should say that we have been heavily invested in AI technologies, and there are lots of AI-related technologies as well as deliverables. That is attributable to our efforts over the past 20 years, in particular in terms of the database, content creation, as well as AI-related research and development. We have been quickly taking advantage of our AI strength in the above-mentioned area and turn it into the actual productivity. And specifically speaking, this will be showcasing online, offline, as well as the product that we delivered to our OEMs as well as dealers. And in a second, we will continue to heavily work on the O2O ecosystem, which is featuring online plus offline. 我们现在是中国在汽车领域和在这个社交领域的互联网平台里面唯一有大规模的线下网络的这样一个互联网络是 因为我们都知道汽车行业是需要线上加线下行程闭环的这样一个非常特殊的行业 它不可能全靠线上就能解决所有消费者的需求 We understand that for the auto industry It heavily relies on the closed loop With both online plus offline As a result, you cannot only rely on online service delivery To resolve all the consumer demands So in the future, you're going to see that we will better connect our offline network with our online platform so as to continue to innovate our business models and deliver better performance. And the set strategy is to actually closely go in line with the going global trend of the Chinese market. As a result, Autofom is also very busy deploying our overseas resources. For example, in June of this year, in the Hong Kong Auto Expo, we actually serve as the only official auto media partner of this auto expo, and we have been introducing the Chinese-branded auto to the rest of the world.

Well, at the same time, on June the 30th, we also launched the overseas version of the Auto Home website.

This is for the very first time we actually introduced the Chinese autobrands to the global consumers. And so far, we have been covering six countries and the regions, including China, Hong Kong, Thailand, Saudi Arabia, United Kingdom, Australia, and Brazil. It also covers more than 1,900 models. models. So you can see that actually this is the first time effort that we have been doing this kind of media introduction in this way, and we also hope that through this international the website, we can actually bridge Chinese auto brands with the global consumers. I expect that this year, the overall Chinese auto export will be around the 7 million units, And in the next one or two years, this number will increase to 10 million. So I think that this kind of overseas business deployment will also become the new growth curve for our business. So that's the answer for the first question.

Now I would like to hand the floor to Mr. Zhang. 好的 谢谢 关于公司的股票回购计划呢 我们在顺利的执行 刚才我也把具体的数字 跟大家做了沟通 对于分红政策呢 董事会也有过对市场的承诺 25年计划全年的分红 不低于15亿元人民币的这个数字呢 也不会改变 那未来呢 我们也会持续的去关注 如何去回报股东 这个政策我们是不会 方向是没有什么变化 So in terms of the stock repurchase plan I already gave you some breaking about this number

So I think that this will remain unchanged And as committed by the board Actually in the year 2025 The whole year cash dividend payout Will be no lower than 1.5 billion RMB And this will remain unchanged And in the future we will continue to get return and reward our shareholder in a sustained manner.

Our next question coming from the line of Brian Gung with Citi.

Your line is now open. 轻车最大的镜中能够放缓的话,我们觉得大概有多久的机会能看到二手车行业能够出缩呢? 谢谢管理层。 I will trust it myself, thanks to management for taking my question. So management just mentioned after the government's intervention, you have seen some improvements on the OEM's competition. How does management think about the industrial competition in the second half of this year?

And if the competition for new car sales can ease When could we see the used car industry could recover Thank you 车企比较积极的回应,比如说取消了什么一口价的塑料政策呀,有一些宁愿是降量也要保价呀,这些政策,当然已旧换新还是依然会在做的,我们也看到折扣的幅度呢,也基本上保持了一个比较的稳定,但是总体来讲呢,价格战的根本原因还在于产能的过剩,产能的过剩。

So let me take these two questions. We have been seeing that since May to now. We have been witnessing that the government has been releasing the policies for several times and calling for the stop of the evolution-related growth and asked the OEM to stop this kind of inorderly price war. Well, at the same time, we also see some of the brands, for example, BYD and Chang'an Automobile, etc., abolished their one-price policy and only returned the trading policy, or announced that reducing volume to maintain the price, etc.

So you can see that fundamental reason for this is because of the overcapacity. 啊,一些头部车企的增加,销量的增加呢,中小车企可能面临压力会比较大,那我们也注意到呢,豪华合资品牌呢,这个份额在下跌,那自主品牌呢,从三年前不到50%呢,到今年上半年我们看到已经超过60%了,所以我们觉得有喜有忧吧,所以我们希望呢,就是通过我们看到车企的出海能够消化一定的产能,

另外,从规模优先也向质量优先去发展 所以我们希望市场能够比较快地 尽量快地能够回归一个理性的竞争 Because the production capacity keeps expanding We have been witnessing that the sales as well as profit margin shifting towards the top tier players As a result, the small and medium sized OEMs will face a bigger pressure And in the segmented area, we can see that the luxury as well as joint venture brands have been losing shares. And the self-owned brand sales have been increasing from less than 50% three years ago to more than 60% in the first half of this year. Well, at the same time, this kind of pressure on profit margin also forced OEMs to shift from size first or scale first to quality first. We also expect that through all of this policy guidance, the market will quickly go back to reasonable competition.

我们的车铃也在慢慢的增加 我们也看到车铃的平均 中国的车铃的平均 大概保有量的车铃是6.8年 所以还是在一个 应该是一个增加 就是供给的这么一个情况下 我们也看到市场上的 这个客户呢 越来越多的客户 会去关心二手车的情况 也在考虑买二手车 那最终没有买呢 我们觉得可能也有几个关系 会影响到 第一个呢 我们是觉得就是从政策上来讲 虽然现在今年商务部等八个部门 已经启动了汽车流通的一些改革试点 也优化了一些登机这些过程 也有一些推动促进性的政策 但比较核心的一点是关于二手车的历史 二手车的一些保养 维修 保险的一些历史

the data is not too透明 so the customer is not too comfortable to buy two cars The second question is about the second-hand vehicle when can the market recover We can see that this is closely related to the total car park or car ownership as well as the car age So, generally speaking, you can see that in China, the car ownership keeps increasing while the average car age remains at 6.8 years Well, at the same time a lot of people, a lot of clients are interested in the secondhand vehicle, but they are still hesitant to purchase the secondhand vehicle. The reason can be attributable to the following several aspects. The first thing is because of the policy. Even though eight government authorities, including MOFCOM, have initiated the car circulation consumption reform pilot and also optimized the car registration mechanism. However, you can see there's still a lot of in transparency in terms of the car maintenance repair as well as the other historical data. 线上线下的一体化 消费者寻找车员 直接进入汽车这家二手专区的接链就行了 那这些车员都是经过检验的也有保障 我们也在推进跟其他品牌的合作 能够帮助消费者找到更靠谱的二手车 And the second day we can see that AutoHome as the top layer in this industry We have been making efforts to enhance industrial standards As well as the transparency And since June the 27th, we have launched the second-hand vehicle official flagship store. And the first deal signed was with Li Xinhang, and we helped Li Xinhang to build a brand and promote online-offline integration of the services. And consumers, if they want to find a source of the vehicle, they can directly come to the flagship store in the Autocom second-hand vehicle column. and all of the sources are validated pretty much in terms of the quality. In addition, we also developed our own AI tools, such as the used car AI smart assistance, photo car recognition, vehicle condition checking, and car price checking tools. As we all know, used cars or second-hand vehicles are non-standard products, which requires our AI smart assistance to have higher accuracy in replies. And a reply to each of the cars of the users is very different. These products are constantly being polished and upgraded. 测试同比增长6.5% 我们也持一个挺深乐观的态度 但我们也看到行业内的车商的状况还是比较艰难 当然如果价格战能够缓解 二手车的价格能够相对来说更可预期 更稳定的话 一定也是会促进消费者更多的去选择二手车了 And this year, we also see that the Car Stipulation Association predicts that the second-hand vehicle sales will increase by 6.5% year-on-year. If actually the price wall can be eased and mitigated, and the price goes to a stable trend, I believe that there will be more consumers choosing the second-hand vehicle. Next question, please.

One moment for our next question. Our next question coming from the line of Richie Sunwood, HSBC. Your line is open.

Thank you, management, for taking my questions. I have two. First of all, regarding the NGV business, including the franchise stores. So what are the progress over there? And what is our thoughts on the second half and next year's development plan and expectations? And secondly, for the data products, So what is the progress? And can you update us on the late product suite that we have and any new product pipeline? Thank you.

And actually, thank you for reading this question. In terms of the scale, by the end of the second quarter, we can see that the total number of the stores already exceeds 200, covering both major cities as well as the lower tier cities. And in terms of the functionality innovation, our space stores have already integrated a lot of functions, such as 3D naked eye watching the cars, and the multiple car same screen comparison, and multiple brands one-stop purchase, et cetera. and also rely on our AI technologies. We also, you know, indigenously created a lot of AI function-related experiences, such as AI buyers and car owners accompany AI comparison test drive, as well as the VR space, a blockbuster movie, etc., that to reshape the car consumption experience.

From the future development of the future, of course, we still need to build our business model 进一步的去打造 我们的核心是线上和线下的结合 特别是线下产品与服务的精细化运营 升级 提升单件效率与客户的口碑 当然从商业上来讲的话 我们也会去提升这个模块的 收入的能力和盈利的能力 从技术上来讲 我们可能要进一步的融合 AI的大模型 做到千人千面 In terms of the future development plan, actually we will continue to depend on our business models

and focusing on the product and services refined operation as well as iteration and upgrading and to enhance the single-store operation efficiency as well as the customer reputation. And while at the same time, the revenue generation capacity of the new retail module will also be gradually enhanced. While at the same time, we will also continue to strengthen technology integration to integrate with AI big models, not only serving the terminal and consumer experience upgrading, but also to deliver more products and services based on this technology. And in the same time, we will also continue to different our market insights so as to serve our customers when they do have going global requests. And in terms of our product, the metrics as well as business progress from the cn you know we have launched the ai smart assistance for both new cars and the second half cars based on the self-developed tonsier large model integrating almost 20 years of industrial accumulation of auto home and professional knowledge base actually we professionally answer users uh car related questions well at the same In time, for offline, we also have AI buyer, the industry's first intelligence voice assistant integrating AI large model and ultra-high-definition 3D interaction technologies, supporting natural language dialogue and helping users customize car purchase plans, and compare car sources and improve car selection efficiency. And for fee and product, actually, I already said in my opening remark, and for all the OEMs, we have integrated five AI-related functions, both covering marketing, customer acquisition, and customer reach out, as well as store services. I already mentioned all of this content in my opening remarks. to the future development trend of our data products, I believe that Autohom's strength is attributable to our more than 20 years' professional content accumulation. We have both data users as well as the industrial know-how, and we implement all kinds of solutions. In the future, we will continue to combine all of these strengths together, So as to further exaggerate our professional capabilities, on the one hand, we will continue to think about how to assist our customers to do refined operations to satisfy their individual's life as well as personal demand. While on the other hand, we will continue to build Autofom's knowledge base to build the mode of the large language model era and continue to better serve our users and clients.

Okay, I'll present.

Thank you. There are no further questions at this time.

I will now turn the conference back to management for closing comments. us if you have any first questions or comments. Thank you. Bye-bye.

This concludes today's conference. Thank you for your participation. You may now disconnect.