Autohome Inc.

Ladies and gentlemen, thank you for standing by for Autohome's first quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow management's prepared remarks. As a reminder, this conference call is being recorded. If you have any objections, please disconnect at this time. A live and archived webcast of today's call will be available on Autohome's IR website. It is now my pleasure to introduce your host, Sterling Song, Auto Home's IR Director. Mr. Song, please go ahead.

Thank you, operator. Hello, everyone, and welcome to Auto Home's fourth quarter 2026 Earnings Conference Call. Earlier today, Auto Home distributed its earnings release, which can be found on the company's IR website at ir.autohome.com.ca. Joining me on today's call is our Chief Financial Officer, Ms. Cui Yanzong. Management will go through the prepared remarks first, which will be followed by a Q&A session, where they will be available to answer your questions. Before we begin, please note that today's discussion contains forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Dedication Reform Act of 1995. These 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 are not limited to those outlined in our public filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. Autohome undertakes no obligation to update any forward-looking statements except as required under applicable laws. Please also know that Autohome's earnings press release and today's conference call include discussions of certain unaudited land-gap financial measures. A reconciliation of the land-gap measures to the most directly comparable gap measures can be found in our earnings release. I will now turn the call over to Autohome's Chief Financial Officer, Ms. Craig Yanzheng, for opening remarks. Craig, please go ahead. Thank you, Zhongkan. Hello, everyone. Thank you, Sterling. Hello, everyone. This is Craig Sun. Thank you for joining our earnings conference call today. more accurately meet the consumer's needs. At the same time, through deep-rooted, high-quality content and the expansion of new media, our user size is steadily expanding. The number of Japanese users on the mobile end has exceeded 80 million, creating a new record. On the construction of the trading platform, our new retail business has launched the online shopping function, and cooperated with many retailers to explore the new experience of car e-commerce. In addition, we are also actively promoting overseas deployment. Our overseas platform, YES Auto, has officially entered into operation in Thailand. The second-hand car cross-border export international platform is also on the line. This series of progress marks a new stage of development in the domestic and international double-circuit parallel. We began the year by rolling out a series of initiatives to accelerate the transformation of our platform. from an automotive information media into a comprehensive automotive service ecosystem. On the user's front, we've initiated a major brand refresh and an APP upgrade, shifting our focus towards users' interests and the end-to-end car purchase journey to more precisely address consumers' demands. By strengthening the development of premium content and expanding our new media matrix, we continue to grow our user base steadily. with average mobile daily active users surpassing 80 million, a new all-time high. With regards to our transaction platform development, our new retail business launched an online car purchase feature and began piloting collaborative initiatives with multiple dealers to explore new automotive e-commerce experiences. We also continued to advance our global expansion ES-Auto, our overseas platform, also want to live together. Officially launched operation in Thailand and our global cross-border used car export platform also want to live together. These advancements mark the beginning of a new development phase for auto home, characterized by a new circulation model spanning both domestic and international market. With the ongoing expansion of the front desk business, The basic capabilities of the home platform are also being improved at the same time. AI and big models are becoming key points in the infrastructure. At the external service level, we provide AI intelligent products to our partners. At the internal operation level, we have integrated the big model capabilities into the company's various work processes. AI-driven platform operation is rapidly changing from an isolated efficiency improvement to a full chain system. As our front-end business continues to expand, we are strengthening our core platform capabilities in parallel. AI and large language models are increasingly becoming a foundational pillar of our infrastructure. On the external services front, we provide our partners with an AI-powered intelligent product mix. On the internal operations front, we've already integrated large language model capabilities into the company's workflows. As a result, AI-driven platform operations are rapidly advancing from isolated efficiency gains to end-to-end systematic transformation. In March this year, our overseas content platform ES-Auto officially launched in Thailand, expanding our professional advantage to the international market. The platform focused on localization, introduced local creators and established a professional content system. Currently, the platform has covered 100 Chinese new energy vehicles, and has included more than 10,000 product configuration information. This is a solid foundation for the establishment of Chinese new energy vehicles in the Thai vehicle warehouse. In addition, thanks to the opportunity of the Thai International Motor Show, we have joined together six Chinese car brands and 12 media to carry out a three-dimensional broadcast of the exhibition content to build a diversified topic. This event has reached 140 million views on the whole network, More than 530,000 times. For the first time in the sea, it is a strong start. Also for the future of business, long-term diversification development opens up a new room for improvement. Specifically, in March of this year, our overseas content platform is OTO, officially launched operations in Thailand, extending our professional strength into international markets. It has focused on localized operations. The platform has on board local creators and established a professional content system to date it covers 100 chinese new energy vehicle model series and includes more than 10 000 product specifications laying the groundwork for a china nev database in thailand In addition, leveraging the momentum of the Bangkok International Motor Show, we partnered with six Chinese automotive brands and 12 media outlets to execute integrated communications campaigns and build a diverse topic matrix. This campaign generated over 140 million views and over 530,000 user interactions across platforms. giving us a strong start in our first overseas market and creating new opportunities to support the long-term diversified development of our business. In terms of the MCN construction, in the first quarter, Zhijia Media's MCN, Daren Ecology, achieved a significant growth in quantity, and over-the-top high-quality creators broke through 650. The number of new media outlets has accumulated up to 150 million users, and the proportion of heads and backs of Daren has increased significantly. to further enhance the overall health of the ecosystem. Through holiday-themed marketing, creative motivation support, offline exhibition promotion, performance hand-in-hand, and overseas guests, and ecological construction, we are fully constructing the content competitiveness of the difference. Quasimodo data shows that the number of mobile users reached 80730,000 in March, which is a 4.9% increase. In terms of Amsterdam development in the first quarter, also for media and then ecosystem improved in both quantity and quality. The number of premium creators across various fields exceeded 650 and the cumulative reach across new media platforms approached 150 million users. The share of top tier and the middle tier influencers increased significantly. and further enhancing the overall health of the ecosystem through various approaches, including holiday-themed marketing campaigns, creator incentives, deep engagement at offline sessions, professional driver incubation, and the development of an overseas influencer ecosystem, etc., we are comprehensively building our differentiated content competitively. According to Quest Mobile, Autohome's average mobile DAUs reached 80.73 million in March, representing a year-over-year increase of 4.9%. In the field of new energy vehicles, we continue to focus on the commercial city of the car industry and strive to build a new trading ecosystem for the car industry. In the fall of April, we launched the online hookup function in Shenzhen and Xi'an, two cities. Local cooperating retailers released competitive off-road vehicles on the commercial city platform. Users can complete the online selection of vehicles in one stop, pay a large deposit, sign an online contract, and raise money to buy a car. In a new energy vehicle sector, We continue to focus on Auto Home more as we build a new transaction ecosystem for the automotive industry. In late April, we launched the online car purchase feature in two cities, Shenzhen and Xi'an. Local partners, dealerships posted competitive local pricing on the mall, enabling users to complete the entire car purchasing process in one go, including online vehicle selection, configuration, and deposit payments Users can then sign the contract offline and pay the remaining balance before taking delivery. To streamline the car purchasing process and address user concerns, we introduced four key guarantees, that is, officially certified vehicle sources, end-to-end supervision funds, transparent pricing, and a worry-free refundable deposit policy, from sourcing compliance to fund security. and from transparent pricing to flexible purchasing options, the platform prioritizes user rights at every stage, delivering a secure and trustworthy car purchasing experience. In terms of AI and big models, we are using AI big models to repeat the entire process of tracking from the platform information center to the content distribution. Through AI smart radar, we continuously monitor online hotspots Combined with large-scale model-based content packaging and AIGC-enabled automation content, we effectively combine professional car topics and wider public attention points to create a set of efficient and fast response mechanisms. At the same time as we improve the relevant content, the performance of operations has also been significantly improved. In addition, we will also apply the reverse model and the intelligent distribution model to the membership business, The anti-revealing model uses the results of the transaction to reverse the source, and proposes accurate user images that match the transaction height, and trains the core characteristics of these users, thereby improving the compatibility between platform content and accurate user needs. The smart distribution model breaks down the limitations of single platform data, and integrates multi-dimensional information such as user behavior, scene number, and transaction source, to achieve a more intelligent and accurate traffic match. In the area of AI and a large language model, we are leveraging AI and a large language model to reshape the entire workflow of our platform's content center, from tracking trending hot topics across the internet to content distribution. Through an AI-powered smart radar, we continuously monitor online trends around the clock. Combined with larger language model-assisted content packaging and AIGC-enabled automated content generation, we've effectively integrated professional automotive topics with broader public hot topics, establishing a highly efficient rapid response mechanism. As a result, we have improved content relevance while significantly enhancing operational efficiency. In addition, we have applied both the reverse funnel model and intelligent distribution model to our membership business. The reverse funnel model works by reasoning backwards from transactions to derive accurate user profiles and extract the key characteristics of these users, improving alignment between platform content and the high conversion user needs. The intelligent distribution model breaks through the limitations of isolated platform data by integrating multidimensional inputs. such as omni-channel user behavior, scenario preferences, and transaction attribution data. This enables smarter, more precise traffic matching, as well as more effective user targeting and reach. In the first quarter of the second-hand car business, we listed two core business platforms in the first quarter, the all-terrain sales service platform and the second-hand cross-border export service platform. form the dual-wheel drive pattern of domestic service system improvement and global market expansion layout, provide a comprehensive solution for individual car owners, domestic car dealers and overseas buyers, and assist the industry to enter a new phase of high-quality, transparent and safe high-quality development. Among them, the full-route sales service platform provides official free testing, exclusive steward service and nationwide pricing functions, through the deep integration of the bottom-level digitalization system to establish a standardized service system that covers the entire life cycle of the owner and seller. Currently, the platform has been tested and operated in two cities. We plan to accelerate this model to promote it to more cities across the country. The second-hand car cross-border export service platform is our initial attempt to grasp the opportunity for overseas market growth. The platform supports merchants to ship their vehicles to domestic and international double platforms at the same time. Each export vehicle is equipped with a detailed inspection report and a complete security record to standardize service, eliminate overseas buyers' concerns, and reduce the trust cost in cross-border transactions. In the future, we will introduce more vehicle cooperation partners to further enrich the supply of vehicles that meet the export conditions. We are committed to building a In the used car business, during the first quarter, we launched two core business platforms, a full-process used car selling service platform and a cross-border used car export service platform. Together, they form a dual-engine model of improving quality and efficiency in domestic services while expanding into global markets. These platforms provide individual car owners, domestic dealers, and overseas buyers with one-stop integrated solutions, helping the industry move into a new stage of high-quality development defined by efficiency, transparency, and security. Our full process uses USECAR's selling service platform offers three official inspections, dedicated goonset services, and nationwide price inquiry capabilities. Through deep integration of our underlying digital systems, we've established a standardized service system that covers the entire lifecycle of a car owner's selling journey. The platform is currently in pilot operation in two cities, and we plan to accelerate the rollout to more cities nationwide. Our cross-border use card export service platform represents our initial effort towards capturing growth opportunities in overseas markets. It enables dealers to list vehicles on both domestic and international platforms with a single click. Each exported vehicle includes a detailed inspection report and a complete maintenance and insurance record. These standardized services help address overseas buyers' concerns and reduce the trust gap associated with cross-border transactions. Going forward, we will introduce more vehicle sourcing partners to further enrich the supply of export-qualified vehicles. We also plan to build an end-to-end closed-loop system that integrates domestic vehicle sourcing and aggregation, cross-border transaction matching, and overseas delivery fulfillment, enabling used car dealers to execute compliant cross-border exports with no barrier. As a whole, since the beginning of 2026, we have actively promoted new attempts and layout in the field of content, ecology, new retail, and second-hand cars. While promoting business development, we have always maintained a healthy asset representation and continued to fulfill the commitment to provide stable returns to shareholders. Today, the Zhijia Board of Directors has approved the cash split plan for the first half of 2026. At the same time, we are also actively implementing stock repurchase plans in the public market. Looking forward to the future, we will continue to focus on new growth areas and create long-term value for shareholders while controlling costs. Overall, since the beginning of 2026, we have been actively advancing new initiatives and strategic deployments across multiple business areas, including our content ecosystem, new retail, and used car businesses. While driving business development, we've maintained a healthy balance sheet and continue to deliver on our commitment to providing stable shareholder returns. Today, our board of directors approved a cash dividend plan for the first half of 2026, and we have been actively executing share repurchases in the open market. Looking ahead, we will remain focused on emerging growth areas while maintaining stringent cost controls to ensure long-term value for our shareholders. Next, I will explain to you the main financial situation of the first quarter of the car family in 2026. Please note that I will only use RMB as a currency unit in today's discussion, unless there is another explanation. With that, let me briefly walk you through the key financials for the first quarter of 2026. Please note that I will reference R&D only in my discussion today, unless otherwise stated. Next, revenues for the first quarter were $1.05 billion. To break it down further, media services revenues were 163 million, lead generation services revenues were 503 million, and online marketplace and others revenues were 382 million. This is back to cost. Cost of revenue in the first quarter was $257 million compared with $316 million in the first quarter of 2025. Gross margin in the first quarter was 75.5% compared with 78.3% in the same period last year. In terms of operating expenses, the first quarter sales and market expenses were $5.06 billion, and the same period was $5.44 billion. The development cost is 2.74 billion yuan, which is equivalent to the same period as the youth. The general management cost is 1.2 billion yuan, and the same period as the youth is 1.31 billion yuan. Turning to operating expenses, sales and marketing expenses in the first quarter were 506 million compared with 544 million in the first quarter of 2025. Product and development expenses were 274 million, flat year over year general and administrative expenses were 120 million compared with 131 million in the same period last year.

Ladies and gentlemen, please remain on the line.

Your conference will resume shortly. Non-GAAP basis and diluted earnings per share in the first quarter were both 0.39 compared with 0.88 for both in the controlling period of 2025. Non-GAAP basis and diluted earnings per ADS in the first quarter were 1.55 and 1.54 respectively. compared with 3.64% and 3.62% this activity in the coming period of 2025. As of March 31st, 2026, our representative assets continue to grow strongly. The short-term investment as well as other long-term investments are totaled at 2.4 billion yuan. In the first quarter of 2026, the amount of cash flow used in financial activities was 1.43 billion yuan. As of March, Our balance sheet reminds you about cash, cash equivalent short-term investment and other long-term investments, total 20.04 billion. Net cash yield in operating activity was 143 million in the fourth quarter of 2036. On March 5, 2026, the Board of Directors approved a total of more than $200 million On March 5, 2026, our Board of Directors authorized a share repurchase program under which we are committed to repurchase up to US$200 million of orders from ADIs over a period not exceeding 18 months. As of May 22, 2016, we repurchased approximately 3.47 million ADS for a total cost of approximately US$62.3 million. In addition, according to the company's stock market policy, the board of directors has approved today to send US stocks to the US stock market for US$0.66, In addition, In accordance with our dividend policy, our board of directors approved per ADS or US dollar 0.65 for ordinary shares payable in US dollars to holders of ADS and ordinary shares of record as of the close of business on July the 2nd, 2026. The aggregate amount of the dividend will be approximately RMB 0.5 billion and expected to be paid to holders of the company's ordinary shares and ADIs on or around July 24th, 2026 and July 31st, 2026 respectively. So that concludes our financial summaries. Now we are ready to open up the Q&A session. Operator, please open the line for the Q&A session. Thank you.

Thank you. We will now begin the question and answer session. To ask a question now, please press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 1 again. A moment for our first question. And our first question comes from the line of Thomas Charles Jefferies. Please ask your question, Thomas. Your line is open.

Thank you. Good evening. Thanks, management, for taking my question. My first question is about the industry trend. We have seen auto industry is a bit soft in Q1. Can management provide more color about your thoughts about the auto industry outlook? And my second question is about auto home and hire. Can management comment about the updates regarding the synergies? Thank you.

Thank you for your question. As you said, The number of cars in China in the first quarter is relatively weak. The overall sales of commercial vehicles decreased by 17%, and 21% of the sales of new energy vehicles. This is probably the first time in the history of new energy vehicles that sales have decreased by 21%. In April, as far as we know, sales of commercial vehicles and new energy vehicles continued to decline. It fell by 22% and 7%. This is also the result of policy, industry, consumption, and multiple pressures. Thank you for your question. As you mentioned, in China, the auto market weakened in the first quarter this year. Retail sales of passenger vehicles declined 17% year over year, while EV sales declined 21% year over year. So it is the first quarter in history where EV sales recorded a year-over-year decline in the past, the first time. And in April this year, retail sales for both passenger vehicles and EVs both continued to fall further, declining 22% and 7% respectively compared to the same period in 2025. So this is the result of multiple pressures converging from government policy, industry conditions, as well as consumer demand. There are some needs in terms of policy adjustment. This is indeed a core cause of decline in sales. As you all know, the new energy tax exemption policy will be in effect in December. In this way, many consumers will be able to meet their needs. We see that in December of 2025, the new energy sales amount was 134,000 taels per month, which is the highest in history. This, of course, is also through the needs of the first quarter of 2026. The first government policy adjustment and the putting forward of consumer demand, you know, it's the core reason, main reason behind the sales decline. As you know, the policy exempting the new energy vehicle from purchase tax expired at the end of December last year. So this policy expiration really caused consumers to bring forward their car purchases. So we saw EV retail sales reach nearly 1.34 million units in December last year alone. So this is a record high in history. This also directly put forward part of the demand that would otherwise have appeared in the first quarter this year. This year, the policy of national supply and demand, the policy of driving must be weakened. Then add up to this first quarter, the overall confidence of this red line is still cautious. The consumer's purchase will also receive a certain pressure. At the same time, Compared to the first quarter of last year, the market is still in a stage warm-up. The numbers are relatively high. So these two increases and decreases show that the sales figures of the first quarter of this year are relatively low. So since the beginning of 2026, as you know, the government subsidies have been scaled back. The policy driven boost to demand weakened. At the same time, the overall consumer confidence still remains relatively cautious in Q1. So this further dampens consumers' willingness to purchase vehicles. In addition, the auto market in the first quarter last year was a period of cyclical recovery, so it creates a relatively high base for comparison. The combination of a tougher year-over-year comparison last year and the softer demand this year underscores the market pressure seen in the first quarter, so it formed the primary backdrop for the short-term decline in auto sales. From the industry point of view, the process of production still amplifies the pressure on the market. Consumers will also look at the change in price. On the one hand, the stockpile of retailers is still high. Since this year, the stockpile's warning index has been continuously above the warning level. The financial chain is very tense and the loss chain is growing. In order to accelerate sales and raise funds, the financial market has also increased the discount, which means that the price of the mid-range sales continues to drop. The cheaper this expectation is, the longer the customer's decision and transaction cycle will last. So from an industry perspective, we can see the overcapacity in the auto sector further exacerbated the market pressure and reinforced consumers' wait-and-see attitude. So on one hand, dealer inventories still remain at high level. Since the beginning of this year, the dealer inventory warning index has stayed above the cautious threshold for, you know, for several months already. So it increased the pressure on dealers' cash flows, the dealers' losses spread further. So in order to recover capital, dealers have increased their discounts. So this drives the prices lower. So in this way, it has strengthened our consumers' expectations that the auto prices will continue to fall down. It's further lessening the purchasing decision cycles and flowing the transaction conversion. On the other hand, the OEM's financial pressure continues to pass down. In the first quarter, the sales of nine of the ten cars in the past decade have all dropped. We also saw that the sales of the automotive manufacturing industry in the first three months was 3.2%, which is also the lowest in history. In 2025, this figure is 4.1%. So on the other hand, operating pressures on major OEMs also continue to spread. Among the top 10 OEMs in the first quarter this year, nine of them reported year-over-year sales declines. We also observed that the profit margin for the China auto manufacturing industry fell to just 3.2% for three months this year. This is a record low in history, and it is further declining from 4.1% compared with last year. So this really reflects the widespread reality facing the whole industry. The OEMs are relying on pricing cuts to drive sales volumes, while both prices and the volume are simultaneously under great pressure. Another point is that in the future, auto exports will serve as the key stabilizing force for the auto industry. According to the data from CPCA, China Passenger Car Association, China exported a cumulative 1.83 million vehicles in the first quarter this year, which is a year-over-year growth of 61%. So, NEV exports continue to account for a large percentage significantly a high share. So it remains as the core growth driver in overseas expansion. As for the collaboration between Heil and Zhijia, it's been more than half a year since we completed the transaction. At present, we are focusing more on the second-hand car and the offline scene. About the Synergy's collaboration with Hire Group, the transaction has completed more than six months. So the current collaboration is still focused on Synergy's execution in the used car business and the offline services scenario, et cetera. Hire Group's second-hand car business has also developed for many years. It has been deployed in many cities across the country. It has the management experience of online and offline integrated operation and door-to-door management. For CarTech, its used car business has been developing for so many years with the presence across multiple cities nationwide in China. And it has extensive experience in integrated online to offline operations and dealership store management, etc. Hire Group also has a lot of experience in the service system management model of consumers. These are all things we can coordinate and connect with. For Hire Group, it also brings us expertise in consumer service systems and management models, which are all areas for collaboration and knowledge shared with us. Now, our new retail business has been working closely with Carthage in the second-hand car industry, including car supply, vehicle inspection, and so on. Carthage's modified customization and charging service also work together with Zhijia. We will continue to deepen and expand our cooperation in these areas. For example, our new retail business has already begun cooperation with CarTech in the used car segments, including the vehicle sourcing and the vehicle inspection processes. CarTech's vehicle customization and the charging station business have also created synergistic opportunities with us. So going forward in the future, you know, We plan to continue deepening and expanding operations in the above area. Thank you.

Thank you. We will now take our next question from Brian Gong of Citi. Please ask your question. Brian, your line is open.

Thank you, Manager. I have two questions. The first is about the sales clue. Can you share with us the feedback from the sellers this year? I mainly want to see if the decline in sales clues will continue. And the other question is how do we think about the expansion of our new sales? Has the business model reached a stage where it can be repeated quickly? How should we look at its growth in the future? I have two questions. First is that commencement shared the feedback from dealers during the contract renewal period this year. Should we expect continuous decline on sales list business given dealers' worsening conditions? And secondly, for new retail business, what is our strategies for expansion now? Does this business approach the phase that we can scale up very quickly? And how should we view its growth potentials ahead? Thank you.

Okay, thank you. The first question is about the contract with Jinshao. This year, Jinshao's member contract has been completed. Jinshao's customer coverage is still at a relatively stable level. In the car market, the price has continued to stand. The pressure on the middle end is relatively large. Thank you for your question. At present, for the dealer membership renewal, this has been completed this year. And overall, the dealer customer coverage still remains at a stable level, even though there is an ongoing price war in the auto market and there are shrinking margins at the retail level. So it's really bringing a lot of high inventory pressures for most of the dealers. So for most of the dealers, they adopted a more conservative operating approach. And the loss-making coverage in the dealer segment has widened. And the profitability pressure still remains at a high level in the retail end for the dealers. Although the more the sales pressure, the higher the demand for high-quality clues. Zhijia is also one of the most important back-end channels for marketers. In the member business, we also improve the accuracy and distribution of products through data-driven anti-theft models and smart distribution models. Despite the pressure on the overall vehicle sales, for dealers, their demand for high-quality sales leads still continue to increase, you know, auto home still remains one of the most important customer acquisition channels for dealer customers. So on the membership services side, you know, we are improving the traffic matching accuracy and distribution efficiency through the data driven reverse funnel model and intelligent distribution model. In the future, we at Zhijia will continue to explore the improvement of the business with the financial experts. We will help the stores to improve the flow of customers and the transition of transactions, and expand the online and offline joint business. We will help the financial experts to increase their profits and reduce the impact of the business from the bottom-up. So going forward, Otahome will continue to work closely with the dealer customers to further explore solutions which can help them to break through the current operation challenges for the dealer customers. We aim to support dealerships in increasing the customer traffic and improving the conversion rate while also expanding integrated O2O business initiatives Our goal is to help dealer customers improve their revenues and profitability while mitigating, as much as possible, the operational impact caused by the broader auto industry downturn. As for Xilinxiu, we are still in the stage of exploration. Now, we want local retailers to join this platform. and display the price of the car and the land on the shopping mall. It's like a treasure hunt. With the collaboration of these retailers, we can provide users with convenience shopping services online and offline, covering online car selection, personalized configuration selection, online payment, and all processes such as online driving. We can provide users with an online shopping experience. Currently, in the business model of Xi'an and Shenzhen, For our new retail business, we are still currently exploring you know uh to which allowing local dealer customers to join in our network which is the auto auto home more platform and display dealer vehicle inventory and the final transaction pricing online so this model is just quite similar to taobao marketplace model So through cooperation with such dealers, we are able to provide users with a seamless O2O online to offline one-stop vehicle purchasing experience. So which can cover the entire process from the online vehicle selection, browsing, personalized configuration, to online deposit payment, and to million offline vehicle delivery and pickup. and you know our target is to create an e-commerce like auto transaction platform which can deliver an efficient user-friendly experience for our customers uh you know at present we are piloting this model online car purchasing model in two cities cn and shenzhen uh so far so good and Once this model has been fully upgraded and validated, we will further expand it into other additional cities. Thank you.

Thank you. We will now take our next question from the line of Jing Yuan from CICC. Please ask your question. Jing, your line is open.

Thank you for answering my question. I would like to know more about the future plans for the shareholder returns.

Thank you. Thank you for your question. As we said, we will continue to implement our commitments for shareholder returns. And today, our board of directors announced the interim cash dividend plan of RMB 500 million for the first half of this year. And we will continue to fulfill our commitment for the full-year cash dividend of no less than RMB 1.5 billion. So regardless of the fluctuations in the auto industry, we will consistently place strong emphasis on the shareholder returns, and we will maintain continuity and stability in our dividend policy. In terms of the rebate, after the board was authorized to rebate in March, In less than three months, we have completed one-third of the total amount of the resale plan. The execution was quite smooth. For the Shares by Bike, our new Shares by Bike program was ratified in March by the board. So until today, it's almost three months. So far, we have completed roughly one-third of the authorized share repurchase amounts. And so it really reflects our determined attitude and execution. The return on investment is also the usual policy of the Zhijia Board of Directors. So based on this long-term return on investment, This is also our current strategy. You know, we have, for Autohome, we have been consistently prioritized shareholder returns and, you know, we established our shareholder return framework, you know, including the cash dividends plus the share buy-buy. So going forward, we'll continue to adhere to our comprehensive shareholder return policy in the future. Thank you.

We will now take our next question from the line of Richie Sun of HSBC. Please go ahead, Richie, your line is open.

谢谢管理层给我提完机会。 想问一下商城业务的一些进展, 有没有什么数据可以分享, 然后下半年有什么展望? Thank you, management, for taking my question. I want to ask about the Autohome more business progress, any metrics to share, and the second half outlook. Thank you.

Maybe the specific numbers are a little earlier. We also hope that our mall can explore more. Currently, the mall can provide users with new car trademarks, second-hand car products, and multiple platform guarantees. Thank you for your question. For detailed numbers, it's still too early at the moment. you know for our auto home shopping mall uh you know our our target is uh is try to provide our users with more standardized new cars certified used car products and the magical uh platform level uh safeguards for example for the new standard vehicles we aggregate uh the back styling models from major brands and offer exclusive benefits as well as other transparent final pricing and so it can address key user pain points such as the difficulty in the price comparison and customers concerns about overpaying and For the high-quality used cars, you know, we can rely on our deep cooperation with CarTech to establish a unified inspection and warranty system. We are not sure about the model of the car. But we believe that This is a future direction. Whether it's a new car or a second-hand transaction, we believe it will go online and become a new driving force that will drive home development in the future. For the online auto industry, the overall business model is still not very clear, but we firmly trust that this is the right direction for the whole industry. So from our point of view, we do expect that both the new car and the used car transaction business will become a new engine for Autohomes' future growth. So this is our deep understanding for the future of the industry.

Thank you. Thank you. There are no further questions at this time. I'll turn the call back to management for closing remarks.

Thank you for attending today's meeting. We look forward to updating you on our next quarter's conference call in a few months' time. And in the meantime, please feel free to contact us if you have any further questions or comments. Thank you very much. Goodbye. Thank you.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.