Autohome Inc.

Ladies and gentlemen, thank you for standing by for Autohome's third quarter 2021 earnings conference call. At this time, all participants are in a lesson-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to introduce your host, Sterling Song. Auto Homes I Director, Mr. Sung, please go ahead.

Thank you, operator. Good evening. Hello, everyone. I'm Sterling Sung. Welcome to Auto Homes Third Quarter 2021 Earnings Conference Call. Earlier today, Auto Homes distributed its earnings press release, and you may find a copy on the company's website at www.autohomes.com.cn. On today's call, we have Chairman and Chief Executive Officer Ms. Qianlong, Co-President Ms. Haifeng Sha, Chief Technology Officer Ms. Bibo Xiang, Vice President Ms. Youzhou, and Finance Director Ms. Hong Jiang. After the prepared remarks, our management team will be available to answer your questions. Before we begin, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Education Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause adverse results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the Securities and Exchange Commission. Auto Home doesn't undertake any obligation to update and improve a looping statement except as required under applicable law. The earnings press release in this court also includes discussions of certain unaudited, non-GAAP financial matters. Our press release contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and is available on Autohome's IR website. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this early conference call will also be available on Autohome's IR website. I will now turn the call over to Autohome Chairman and CEO, Ms. Lung. Ms. Lung, please go ahead.

Hello everyone and thank you for joining us today. In the third quarter of 2021, negative factors such as chip shortage and price increase in raw materials continued to suppress the car industry. Car production cost increased by more than 10% from the same ratio, and sales were significantly reduced in relation to the above. With the addition of a lot of large-scale electric power, the sales of cars were low, and the production and sales in the third quarter decreased by 12% from the same ratio. Car-owned businesses are facing a huge challenge. Despite this, we can achieve a total revenue of 17.6 billion RMB in three seasons. New business revenue increases by 2.5%, and the revenue increases by 32%. The net profit of car-owned businesses in three seasons is 5.83 billion RMB. The net profit is 33.1% and 33.1%. At the same time, In the third quarter of 2021, cheap shortage and rising raw material prices continue to impact the auto industry.