Autohome Inc.

Gentlemen, thank you for standing by Autohome's second quarter and interim 2022 earning conference call. At this time, all participants are in listen-only mode. A question and answer will follow the formal presentations. As a reminder, this conference call is being recorded. If you have any objection, you may disconnect at this time. It is now my pleasure to introduce your host, Soling Song, Autohome's IELTS Director. Mr. Song, please go ahead.

Thank you, operator. Hello, everyone. I'm starting soon. Welcome to Auto Home's second quarter and interim 2022 earnings conference call. Earlier today, Auto Home distributed its earnings press release, and you may find a copy on the company's website at www.autohome.com.cn. On today's call, we have Chairman and Chief Executive Officer, Ms. Xuan Long, and Chief Financial Officer, Ms. Craig Yanzeng. After the prepared remarks, our management will be able to answer all your questions. Before we begin, please know that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Security Litigation Reform Act of 1995. forward-looking 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 not limited to, those outlined in your public filings with the Securities and Exchange Commission. Auto Home doesn't undertake any obligation to update any forward-looking statements except as required under applicable law. The earnings press release in this call also includes discussions of certain unaudited non-GAAP financial matters. Our press release contains a reconciliation of the non-GAAP matters to the most directly comparable GAAP matters and is available on AutoHomes.io website. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this earnings conference call will also be available on Autohome's IR website. I will now turn the call over to Autohome's Chairman and CEO, Mr. Long, for opening remarks. Please go ahead, Mr. Long. Mr. Long, please speak.

Thank you, Mr. Song. Hello, everyone. I am the Chairman and CEO of Autohome. Thank you for joining us today for our second quarter 2022 earnings conference call. The net profit of those belonging to the car industry is 4.72 billion yuan, and the net profit rate is 27.2%. The second quarter of the macroeconomic environment is full of challenges, especially due to the centralized outbreak of the epidemic in some cities, which has led to a certain impact on the car industry and the overall production and sales of cars. The market began to rebound in June this year, and the sales of used cars in the whole country increased by 22%. However, the overall sales of the entire second-tier car dropped by about 10%. Despite this, the company can show a strong support lens. The overall operating performance of the second-tier car is significantly improved compared to the first-tier car. The company continues to maintain good operating capacity and a higher level of utilization. This reflects the firmness of the company's business and the ability to go through the industry cycle.