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

Sterling Song, IR Director, Autohome: Thank you, operator. Hello, everyone, and welcome to Autohome Second Quarter and Interim 2026 Earnings Conference Call. Earlier today, Autohome distributed its earnings release, which can be found on the company’s IR website at ir.autohome.com.cn. Joining me on today’s call is our Chief Financial Officer, Mr. Craig Zeng. Management will go through the prepared remarks first, which will be followed by a Q&A session where they will be available to answer all 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 Litigation 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 note that Autohome’s earnings press release and today’s conference call include discussions of certain audited 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 Autohome’s CFO, Mr. Craig Zeng, for opening remarks. Mr. Zeng, please go ahead.

Craig Zeng, Chief Financial Officer, Autohome: 谢谢宋侃。大家好，我是汽车之家的首席财务官曾岩，感谢大家参加我们今天的电话会议。

Sterling Song, IR Director, Autohome: Thank you, Sterling. Hello, everyone. This is Craig Zeng, Chief Financial Officer of Autohome. Thank you for joining our earnings conference call today.

Craig Zeng, Chief Financial Officer, Autohome: 第二季度，我们的创新业务持续推进落地，推动了汽车之家向一站式汽车生态服务平台的平稳升级。新零售业务领域，在授权经销商模式启动试运营，并扩展到更多城市的基础上，我们推出了线下加盟连锁品牌——家家好车，进一步拓展线下服务网络。此外，二手车的全球化交易布局也在稳步推进中。7月份，跨境出口服务平台完成了首单交易，为之家未来拓展服务能力积累了宝贵经验。

Sterling Song, IR Director, Autohome: In the second quarter, our innovative business continued to make steady progress, driving Autohome’s upgrade towards a comprehensive automotive service ecosystem. For our new retail business, with the authorized dealer model in pilot operation and expanding into more cities, we launched the offline franchise chain brand, Autohome Good Car, further expanding our offline service network. In addition, our global expansion into used car trading is advancing steadily. Our cross-border export platform completed its first transaction in July, providing valuable experience to further expand our service capabilities.

Craig Zeng, Chief Financial Officer, Autohome: 我们在人工智能领域，特别是在前沿智能体技术方面也取得重要进展。7月初，之家旗下自研智能体产品知识车管家启动公测。作为汽车行业首款独立的智能体产品，这不仅是对智能化应用的全新探索，更是之家丰富产品矩阵建立差异化竞争力的重要里程碑。

Sterling Song, IR Director, Autohome: We also made major strides in AI, particularly in cutting-edge AI agent technology. In early July, we unveiled our proprietary intelligent agent product, Cheese Car Butler, and opened it for public beta. As the automotive industry’s first standalone agent product, it represents not only a pioneering exploration of intelligent applications, but also a key milestone in enriching our product portfolio and establishing a differentiated competitive edge for us.

Craig Zeng, Chief Financial Officer, Autohome: 具体来看，二季度我们在内容、产品和流量联盟等方面均取得了扎实进展。内容上，5月份我们与工信部新闻宣传中心联合打造的年度IP，中国智造探索计划上线。全年将陆续推出六期节目，覆盖低空产业、智能座舱、智能驾驶及具身智能等科技热点。首期聚焦飞行汽车，通过沉浸式一线制造探访，青年视角的创新叙事，将硬核科技转化为年轻用户听得懂、感兴趣的内容，这也是之家品牌焕新之后的一次内容焕新尝试。节目上线后即引爆社媒热议，获得了超过20家权威媒体报道，全网曝光超过7,000万。产品端，我们上线了智驾频道，系统梳理了近200款主流车型的智驾能力图谱，帮助用户看懂智驾差异，高效选车。

Sterling Song, IR Director, Autohome: Specifically, in the second quarter, we made solid progress across content offerings, product capabilities, and traffic alliances. On content, in May, we launched our annual IP, China Intelligent Manufacturing Exploration Plan, jointly created with the News and Publicity Center of the Ministry of Industry and Information Technology. Six episodes will be released throughout the year, covering exciting technological trends including the low-altitude industry, intelligent cockpits, intelligent driving and embodied AI. The premier episode focuses on flying cars, combining immersive visits to the front lines of intelligent manufacturing with a fresh, innovative youth-oriented storytelling perspective to make cutting-edge technologies more relatable and engaging for younger users. This series also marks our first major content initiative following Autohome’s brand refresh. At its launch, the program sparked lively discussion on social media, was covered by over 20 leading media outlets, and generated over 70 million views across various platforms.

On the product side, we launched our intelligent driving channel, which systematically profiles the intelligent driving capabilities of nearly 200 mainstream models and provides easy comparisons to help users understand differences across models and choose cars efficiently.

Craig Zeng, Chief Financial Officer, Autohome: 此外，我们持续推进多平台、多场景的流量生态协同。以6月与支付宝的合作为例，之家小程序独家为支付宝车生活频道提供全场景服务，针对首购、增购及换购人群进行差异化内容匹配。根据QuestMobile的数据，汽车之家6月移动端日均用户量同比稳中有升，达到7,650万。

Sterling Song, IR Director, Autohome: In addition, we continue to advance collaboration across our multi-platform, multi-scenario traffic ecosystem. A notable example was our partnership with Alipay in June, under which our mini program became the exclusive provider of comprehensive automotive services for Alipay’s Auto Live Channel, offering differentiated content to match the varied needs of first-time buyers, repeat buyers, and those upgrading their vehicles. According to QuestMobile, in June, our daily active users steadily increased year-over-year, reaching 76.5 million.

Craig Zeng, Chief Financial Officer, Autohome: 新能源车领域，4月下旬我们在深圳和西安启动了在线购车试点，联合授权经销商在汽车之家商城平台发布具有竞争力的购车价，消费者可以在线选车付订、线下签约提车。试点期间，两城累计入驻经销商超400家，上架在售车系1000余款，70天累计成交突破1000台，收到了经销商和用户的良好反馈。基于试点城市的经验，二季度我们将该模式复制到苏州、济南和石家庄三城，逐步扩大华北和华东的授权网络覆盖。同时，针对低线城市，6月末我们推出了线下加盟连锁品牌家家好车，聚焦填补下沉市场的服务空白。通过精准导流，输出标准化运营管理体系，及轻量化配套资源支持，帮助低线城市经销商门店实现规模化成长。目前，家家好车落地门店已超百家，未来我们将持续以汽车之家APP为线上获客的核心，联动线下家家好车加盟门店和授权经销商，承接实车交付，以标准化服务覆盖用户看车、选车、购车、用车的全生命周期。

Sterling Song, IR Director, Autohome: In the new energy vehicle sector, in late April, we launched a pilot online car purchase model in Shenzhen and Xi’an in partnership with authorized dealers. Under this model, local partners dealerships posted competitive pricing on the mall, enabling consumers to select a vehicle and place a deposit online and then complete the contract signing and take delivery offline. During this pilot period, over 400 dealers joined across these two cities, offering more than 1,000 models, and over 1,000 transactions were completed within 70 days, receiving positive feedback from both our dealer partners and the users. Based on the experience gained from the pilot cities, in the second quarter, we replicated this model to three additional cities Suzhou, Jinan, and Shijiazhuang, steadily broadening our network coverage in northern and eastern China.

At the same time, to address the service gap in low-tier cities, we launched our offline franchise chain brand, Autohome Good Car, at the end of June, with a focus on the underserved low-tier cities. Through precise traffic redirection, and standardized operating and management systems, and a streamlined resource support system, we help dealerships in low-tier cities achieve scalable growth. At present, over 100 franchise stores joined Autohome Good Car. Going forward, the Autohome APP will remain the core of our online customer acquisition efforts, while offline Autohome Good Car franchisees and authorized dealer stores will handle vehicle delivery.

Through standardized services, we aim to support users throughout the entire vehicle lifecycle, from vehicle discovery, selection to purchase and ownership. AI 和大模型方面，基于之家自研的大模型，我们推出了汽车垂类智能体知识车管家，得益于之家在汽车领域积累的专业内容、产品数据库、达人生态以及线下服务网络等核心资产，知识车管家能够为用户提供车型多维对比、购车导购、用车养车等全品类服务，具备独特的差异化竞争优势。目前，知识车管家已面向用户开放，并进入反馈收集阶段，市场初步反响积极。未来我们将持续迭代底层模型能力，优化产品交互体验，并逐步接入更丰富的线下服务资源，不断提升产品价值与服务质量。In AI and the models powered by Autohome’s proprietary large language model, we launched Cheese Car Butler, our intelligent agent product for the automotive vertical.

The agent leverages our core assets accumulated in the automotive field, including our professional content, product database, MCM ecosystem, and offline service network, to provide users with a broad range of services including multi-dimensional vehicle comparisons, vehicle purchase guidance and maintenance services, etc. Establishing a unique, differentiated competitive advantage. Currently, Cheese Car Butler is available to users and has entered the feedback collection phase, with the initial market response being positive.

In the future, we will continue to enhance the underlying model capabilities, optimize the product’s interactive experience, and gradually integrate more offline service resources to steadily improve the product value and service quality。二手车业务板块，我们持续推进国内与海外两大核心平台的建设。全流程卖车服务平台方面，我们继续以标准化提升服务品质。近期，我们完成了车源检测体系的升级迭代，检测项目由128项扩展至265项，其中新增82项新能源专项评估，进一步提高了检测报告的精准度与可靠性。跨境出口服务平台方面，二季度我们正式获得了二手车出口官方资质，并同步建成线上多语言国际站及线下里约网络，业务线索覆盖全球100多个国家。7月初，之家平台上首单二手车出口顺利完成，业务实现从0到1的突破。下一阶段，我们将聚焦上游优质车源供给、下游海外客户拓展以及平台运营效率提升这三大维度，全力打造二手车一站式出口新通道。In the used car business, we continue to develop both our core domestic and overseas platforms.

For our full-process used car sales service platform, we continue to improve service quality through greater standardization. Recently, we completed an upgrade and iteration of our vehicle inspection system, expanding the number of inspection items from 128 to 265, including 82 newly added assessments specifically designed for new energy vehicles, further improving the accuracy and reliability of our inspection reports. For our cross-border used car export service platform, we formally obtained the official export qualifications during the second quarter. We also established an online multilingual international website and an offline fulfillment network, with business leads spanning over 100 countries. In early July, we successfully completed the first used car export order on our platform, making a breakthrough from zero to one for our business. In the next phase, we will focus on three key areas: high-quality vehicle supplies upstream, expanding overseas customer acquisition downstream, and improving platform operational efficiency.

All of this supports our all-out effort to create a new, one-stop channel for used car exports.

综上所述，年初至今，我们在各业务领域的尝试都取得了阶段性进展。在扎实推动业务发展的同时，我们始终履行对股东回报的坚定承诺。今年3月启动2亿美元股票回购计划，我们在不到六个月的时间内即提前完成。基于对公司长期价值的坚定信心，7月末我们再次宣布启动为期12个月的新一轮4亿美元回购计划。同时，今年上半年的5亿元人民币现金分红也于7月底顺利完成向股东的派发。展望未来，我们将持续深耕新业务布局，继续为用户与合作伙伴提供优质服务，为股东带来稳定可期的回报。In summary, since the beginning of the year, we achieved meaningful progress across all businesses.

While steadily developing our businesses, we’ve consistently delivered on our commitment to shareholder returns. The USD200 million stock buyback program announced in March 2026 was completed ahead of schedule in less than six months. In late July, we announced a new 12 months USD400 million repurchase plan, demonstrating our strong confidence in the company’s long-term value. In addition, the CNY500 million cash dividend for the first half of the year was distributed at the end of July.

Looking ahead, we will continue to deepen our new business development, provide high-quality services to users and partners, and deliver sustainable returns to our shareholders. [Foreign language] With that, let me briefly walk you through the key financials for the second quarter of 2026.

Please note that I will reference CNY only in my discussion today unless otherwise stated. [Foreign language] Net revenues for the second quarter were CNY 1.2 billion.

To break it down further, media services revenues were CNY 280 million, lead generation services revenues were CNY 560 million, and online marketplace and others revenues were CNY 357 million. [Foreign language] With respect to costs, cost of revenues in the second quarter was CNY 274 million, compared with CNY 503 million in the second quarter of 2025.

Gross margin in the second quarter was 77.1%, compared with 71.4% in the same period last year. [Foreign language] Turning to operating expenses, sales and marketing expenses in the second quarter were CNY 552 million, compared with CNY 630 million in the second quarter of 2025. Product and development expenses were CNY 223 million, compared with CNY 253 million in the second quarter of 2025.

General and administrative expenses were CNY 96 million, compared with CNY 133 million in the same period last year. [Foreign language] Overall, we recorded an operating profit of CNY 130 million in the second quarter, compared with CNY 297 million in the same period of 2025.

Adjusted net income attributable to Autohome was CNY 277 million in the second quarter, compared with CNY 476 million in the corresponding period last year. [Foreign language] Non-GAAP basic and diluted earnings per share in the second quarter were CNY 0.62 and CNY 0.61 respectively, compared with CNY 1.01 for both in the corresponding period of 2025.

Non-GAAP basic and diluted earnings per ADS in the second quarter were both CNY 2.46, compared with CNY 4.06 and CNY 4.04 respectively in the corresponding period of 2025. [Foreign language] As of June 30, 2026, our balance sheet remains robust. Cash, cash equivalents, short-term investments, and other long-term investments totaled CNY 19.36 billion.

We generated net operating cash flow of CNY 261 million in the second quarter of 2026. [Foreign language] On March 5, 2026, our board of directors authorized a share repurchase program under which we are permitted to purchase up to USD 200 million of Autohome’s ADS over a period not to exceed 18 months.

As of July 30, 2026, we have completed this share repurchase program ahead of schedule with a total of approximately 10.63 million ADS repurchased. [Foreign language] In addition, on July 28, 2026, our board of directors authorized a new share repurchase program under which we may repurchase up to USD 400 million of Autohome’s ADS over the next 12 months.

As of August 14, 2026, we had repurchased approximately 1.9 million ADS for a total cost of approximately $43.6 million. [Foreign language] That concludes our financial summary. Now we are ready to open up the Q&A session. Operator, please.

Operator: Thank you. As a reminder, if you would like to ask a question, you can press star one one and wait for your name to be announced. Your first question comes from the line of Thomas Chong of Jefferies. Your line is now open.

Thomas Chong, Analyst, Jefferies: 晚上好，谢谢管理层接受我的提问。我有两个问题，第一个是今年上半年我们看到汽车行业整体的表现都是低于市场的预期，请问公司管理层怎么看下半年中国车市的发展？另外，我们也听到管理层介绍了二手车出口的业务，可以简单介绍一下这个业务公司的优势和最新的进展吗？

Operator: Good evening. Thanks management for taking my questions. I have two questions. The first one is about the auto industry, which is softer than market expectations. Can management comment about the second half industry outlook? My second question is about the export of used car business. Can management comment about our competitive edge and the latest business progress? Thank you.

Craig Zeng, Chief Financial Officer, Autohome: 好，谢谢，我来回答你的问题。年初以来，车市整体的销售还是持续承压的。前面七个月，国内的乘用车零售的销售同比下降了20%。二季度，国内新车的销量同比也下降了22%。即便是此前一直增长的这个新能源，销量也连续同比下滑，二季度同比下滑了8%。燃油车更是下降了38%。同时，行业盈利的水平也是同步走低的，上半年汽车行业的利润额同比下降了20%，利润率仅为3.8%，也是在历史的一个低位。

Sterling Song, IR Director, Autohome: Thank you for your question. I will answer your question. You know, since the beginning of this year, the overall retail sales in the auto market has remained under pressure. In the first seven months, domestic retail sales of passenger vehicles declined by 20% year-over-year, while the domestic new vehicle sales fell by 22% year-over-year in Q2. Even the new energy vehicle, NEV, which had previously been the primary growth driver, it already see a sales decline of 8% in Q2 year-over-year for consecutive periods. The traditional ICE, that is internal combustion engine vehicles, performed even worse, the sales declining 38% year-over-year in Q2. At the same time, the auto industry profitability has been deteriorated. In the first half of the year, the profits for the auto manufacturing industry declined by 20% year-over-year, with the profit margin at just 3.8%, which is a historical low.

Craig Zeng, Chief Financial Officer, Autohome: 年初市场对行业销量，年初的时候预计还是相对稳定的今年。但现在已经被下调了。乘联会预测2026年的全年的乘用车的销量同比会下降大概16%的量。这也就说全年的销量就不足2000万辆了。这个是一个比较低的数字了。这也意味着下半年国内整体车市的压力还会持续。预计行业会呈现内需还是承压的，结构也会分化。出海会是提升的整体这么一个态势。

Sterling Song, IR Director, Autohome: The market expectations for the overall industry sales at the beginning of the year was optimistic, but now, this expectation has been revised downwards. The China Passenger Car Association, CPCA, now forecasts that the full year for 2026 passenger vehicle retail sales will decline by 16% year-over-year. It brings the overall total annual sales to fewer than 20 million units. This means that the overall China auto market will continue to face quite a lot of pressure in the second half this year. The weak pact the auto industry to be characterized by a combination of weak domestic demand, structural differentiation and exports providing support.

Craig Zeng, Chief Financial Officer, Autohome: 行业的层面也确实是在向新能源转型的阶段加速。出口是成为这个行业一个新的动力。

Sterling Song, IR Director, Autohome: From the industry level, we can see the new energy transition is accelerating and auto exports is becoming a new growth driver.

Craig Zeng, Chief Financial Officer, Autohome: 在国内的车市，现在也是一个存量市场的阶段。内需增长乏力是一个最主要的问题。新能源的渗透率还在走高，4月份突破六成，7月份攀升到65%的新高。与内需疲软反差的就是出口倒是持续增长的一个状态。今年前七个月，乘用车出口的量同比增长74%，其中过半的是新能源车型，是出口的主力。内需承压与海外高增长并行的出口已经成为车企对冲内需疲软、驱动利润增长的一个核心。

Sterling Song, IR Director, Autohome: For the China auto market now it has entered into existing market stage with the weak domestic demand becoming a major problem, major constraints on growth. At the same time you can see the penetration rate for NEV continue to pick up. In April the penetration rate is 60%, and now in July it climbed further to a new high of 65%. In contrast to the weak domestic demand, the auto export has maintained its strong growth momentum. During the first seven months of 2026, passenger vehicle exports increased by 74% year-over-year. With NEV accounting for more than half of the total export volume. With the weak domestic demand and strong overseas growth simultaneously, auto exports has become a key engine for automakers to offset the weak domestic demand and drive profit growth.

Craig Zeng, Chief Financial Officer, Autohome: 而市场层面的结构也在分化，消费者的观望情绪也是在加重。

Sterling Song, IR Director, Autohome: From the market level, we can see there is an increasing structural differentiation. Consumers are increasingly in a mode, they are in a mode of wait and see.

Craig Zeng, Chief Financial Officer, Autohome: 细分市场的结构分化也很明显。从价格段来看，车市呈现了两端分化的态势，5万元以下的入门代步车市场大幅收缩，上半年同比下滑了55%。另一方面，40万以上的高端新能源销量大涨46%，市场韧性增强。整体来看，燃油车和中低端新能源车的销量下滑，而中高端的新能源车型成为正向增长的一个细分赛道。

Sterling Song, IR Director, Autohome: Currently the market is experience clear structural differentiation across segments by price range. You can see the auto market is diverging at both ends. The entry level market for vehicles priced below RMB 50,000 has contracted sharply, declining 55% year-over-year in the first half. On the other side, sales of high-end NEVs priced above RMB 400,000 searched 46%, demonstrating greater market resilience. Overall, the sales of traditional ICE and low-end NEVs continue to decline. While the middle to high-end NEVs have emerged as a growth segment.

Craig Zeng, Chief Financial Officer, Autohome: 概括起来呢，就上半年车市是内冷外热，内需弱，新能源渗透率提升，出口成为拉动行业向上的一个主要增长。在国内汽车市场进入存量竞争的情况下，谁能抓住用户的生命周期的需求，提供贯穿全程的价值服务，谁就能在市场的变革中赢得未来发展的主动权。这也是我们未来会持续关注和探索的主要方面。

Sterling Song, IR Director, Autohome: In summary, the auto market in the first half of this year can be characterized as cold domestically, hot overseas. Domestic demand weakened year-over-year, while NEV penetration continued to increase and auto exports became the primary growth driver for the overall industry. As China’s auto market enters an existing market competition stage. Currently, only those companies who can capture consumers needs throughout their entire life cycle and provide value added services across the entire customer journey will be best positioned for the future development in the transforming period and market. This is also one of the key areas we will continue to focus on and explore going forward.

Craig Zeng, Chief Financial Officer, Autohome: 第二个问题是二手车出口这个赛道。这个赛道业务还是比较分散的

Sterling Song, IR Director, Autohome: [Foreign language] The second question about the used car export. You know, the used car export market is sufficiently fragmented with a sufficiently large and diverse supply of used car vehicles. This is favorable for us to build our long-term competitive advantage and sustainable barriers for entry.

And if the market was more highly concentrated, it would be more difficult for platform companies. 知家的优势第一个是品牌，作为头部垂媒的品牌，我们也是在港、两地上市，对于我们在海外的影响力是有帮助的。第二个，我们有稳定的车源和标准化的体系。稳定合规的二手车车源，叠加行业的标准的二手车检测体系，可以对车况进行一个全面的排查。海外买家比较在意真实完整的车辆检测报告和维保出险报告，知家是能够提供给用户，让用户更安心的。数字化的这一站式服务也是知家的优势。线上的驱动提效，提供七到24小时的管家，车源动态匹配，多语言网站的服务，都帮助买卖双方高效地沟通。For our advantages in this area, first is the brand, strong brand from Autohome.

You know, we are the leading auto vertical media platform, so we have a strong brand recognition and credibility. Also, we are newly listed. This also help us in our branding. Second is the stable supply, used car vehicle supply and a standardized system. You know, we have access to a stable and compliant supply of used cars, supported by a standardized industry-leading vehicle inspection system, which can enable comprehensive assessments of the vehicle condition. Overseas buyers value accurate and complete and comprehensive vehicle inspection reports, as well as those maintenance and insurance claim records. Autohome can provide all of these. This gives overseas buyers greater confidence in their purchase process. Third is the digital one-stop service. This is our advantage.

We leverage our online digital tools now to improve the operational efficiency, including the 24/7 customer support, those dynamic matching of the vehicle supply and those multilingual website services, etc. All these capabilities facilitate more effectively communication between buyers and sellers. 从进展方面，二季度刚才提到，我们已经正式拿到了二手车出口的官方资质。知家平台上的首单二手车出口交易也顺利完成了，业务实现了从0到1的突破。后续工作方面，一方面我们会尽力扩大优质车源，另一方面会聚焦拓展海外的客户基础，同时进一步优化我们的二手车出口服务平台，提升整体的运营效率，全力打造一站式的二手车出口的新通道。For our business progress update on the used car.

You know, in the second quarter, we just mentioned we officially obtained the government’s qualification for the used car export. We successfully completed the first used car export transaction on our platform. This represents an important zero to one breakthrough for this business segment. For the work ahead of us, on one hand, we will expand our high quality used car vehicle sourcing. On the other hand, we will focus on expanding our overseas customer base. At the same time, we will continue to optimize our used car export service platform and improve the overall operation efficiency with the goal to build a one-stop new channel for the used car export. [Foreign language] The next question, please. Operator.

Operator: Thank you. The next question comes from the line of Zhang Xiaodan of CICC. Please go ahead.

Zhang Xiaodan, Analyst, CICC: 管理层晚上好，感谢接受我的提问。我这边有两个问题请教一下。第一个是我们看到公司最近的股东回报的动作是比较积极的，想请管理层分享一下如何看待后续的股东回报计划的一个可持续性，从中长期来看如何平衡现金储备和股东回报。然后第二个问题是关于我们的线下的新零售业务，想请管理层分享一下公司目前对于这块业务的一个战略的定位。快速翻译一下我的问题。So thanks management for taking my questions.

First of all, the company has recently taken proactive steps on shareholder returns. How do you view the sustainability of the shareholder return program going forward? Over the medium to the long term, how will you balance the cash reserves as well as the shareholder returns? Secondly, regarding the new retail business, what is the company’s current strategic positioning for this segment? Thank you.

Sterling Song, IR Director, Autohome: 谢谢。第一个问题就是，知家一直高度重视股东回报与长期的实施的管理。为了完善股东的回报机制，提升投资价值，我们也建立了常态化的股息政策，加上股份回购的这么一个双重的一个回报体系，让回报机制更加透明，可预期。Thank you for your question. Autohome has always placed a strong emphasis on the shareholder return and the long-term market value management.

To further enhance our shareholder return mechanism and improve investment value, we have established a dual-track return framework combining a regular cash dividend policy with share repurchases, making our shareholder return policy more transparent and predictable. [Foreign language] For the share repurchase, as we just mentioned, the USD 200 million share buyback program, we completed ahead of schedule at the end of July.

On July 28th, the company announced a new $400 million share repurchase program. As of last week, approximately 10% of this buyback program has been completed. Going forward, in the future, we will continue to actively execute this buyback program in the open market in accordance with our established strategy. [Foreign language] For the cash dividends, in March, the company announced the CNY 500 million cash dividends for the first half of this year.

This was successfully distributed to all our shareholders by the end of July.

We’ll continue to execute our commitment to pay at least RMB 1.5 billion in cash dividends for the full year. 从这个长期的能力来讲，知家的这个资产负债表是非常健康的，现金还是非常充裕的，业务也经营得也是稳健的，具备为股东创造长期稳定回报的能力。未来我们也会持续地优化这个运营效率，保持这个业务的韧性，然后确保一个对股东的承诺，完成对股东承诺。For our long-term capabilities, Autohome has a healthy balance sheet, and we have ample cash reserves and stable business operations.

This gives us the capacity to deliver sustainable and stable and long-term returns to all shareholders.

In the future, we will continue to improve operation efficiency and strengthen the resilience of our business, ensuring we can fulfill our commitment to all the shareholders. 关于这个线下的新零售业务，这是一个知家在构建的一个交易生态，补齐线下服务短板的一个重要的战略布局。线上我们是依托知家的APP，搭建这么一个线上的交易平台，汽车之家的商城。线下我们通过在线购车、家家好车拓展这个线下服务的这个网络，承接线上用户需求。从线上到线下的场景中，我们用AI提供全流程赋能，包括选车的这个交互、购车的赋能，这个叫AI询价了，后面还会有用车上的一些规划。For the new retail business, it is an important strategic initiative for Autohome as we build our transaction ecosystem and address gaps in our offline service capabilities.

For online, we are leveraging the Autohome APP to build an automotive transaction service platform, Autohome Mall. For offline, we leverage offline car purchase and the Autohome Good Car to expand offline service network, connecting online demand with offline service fulfillment.

On the online-to-offline scenarios, we are leveraging our AI technologies to provide end-to-end support, including the vehicle selection through our AI car selection assistant, and purchase support through AI price inquiry, etc. Going forward, we are planning to expand AI-enabled services into the vehicle ownership stage. [Foreign language] In terms of our new retail business update and progress, as you can see, the implementation has been moving at a relatively rapid speed. For online car purchase, it began its pilot program in late April, and now it has expanded to 5 cities: Xi’an, Shenzhen, Suzhou, Jinan, and Shijiazhuang.

Primarily targeting at high-tier cities. For Autohome Good Car, it opened up its franchise program in late June and has now more than 100 franchise stores, with a primary focus on low-tier markets. Ultimately, our goal is to become a comprehensive automotive service ecosystem that delivers value throughout the entire auto lifecycle, from car discovering, to car selection, to purchasing, owning, and eventually replacing.

Craig Zeng, Chief Financial Officer, Autohome: 下一位问题。

Sterling Song, IR Director, Autohome: Thank you. Next question, operator.

Operator: Next question comes from Richardson of HSBC. Please go ahead.

Richardson, Analyst, HSBC: 管理层晚上好，感谢你们给我提问的机会。想请教一下，你们如何看现在这个车市整个的恢复的时间点，还有有什么特别的因素可以驱动这个恢复？特别是下半年，如何看媒体业务增长的趋势？谢谢。

Operator: Thank you management for taking my questions. I want to ask management about how do you feel the recovery timing, as well as the drivers behind the auto market, especially for the media services, how would you feel the trend in the second half of this year? Thank you.

Sterling Song, IR Director, Autohome: [Foreign language] Regarding the drivers for the auto industry recovery, as we just mentioned, the auto market sales for the whole year is expected to decline about 16% year-over-year. This has been a downside. However, it doesn’t mean there is not any growth opportunities in the market. For example, the vehicles prepaid and replacement will still contribute more for more new vehicle purchasing demand. We just mentioned that sales of the high-end EV priced over CNY 400,000, it increased 46% year-over-year. So in our opinion, a sustainable stabilization and recovery of the auto market still depend on improvement in the broader macroeconomic environment and a strengthening of the consumer confidence.

Craig Zeng, Chief Financial Officer, Autohome: 出口也是另外一个机会。今年上半年，乘用车出口增长超过70%，新能源同比增长超过124%，占比也达到52%。这些都是一些新的机会。

Sterling Song, IR Director, Autohome: Auto exports is another important growth opportunity. In the first half of this year, the passenger vehicle, PV exports increased by more than 70% year-over-year, and the EV exports surging 124%. For EVs, it accounted for over 50% of the total passenger vehicle exports. So it represents new opportunities in the auto market.

Craig Zeng, Chief Financial Officer, Autohome: 关于下半年的媒体业务，我们讲就是下半年因为有一个金九银十，当然另一个很重要的因素就是新车的发布。我们预计车市还是会有一定程度的修复。

Sterling Song, IR Director, Autohome: Regarding the media business in the second half of this year, as you know, there is always a saying that golden September and silver October, besides, there will be a multiple of new car-

Craig Zeng, Chief Financial Officer, Autohome: 发布。

Sterling Song, IR Director, Autohome: New vehicle and a new car launching in the market. In our opinion, we believe the market will show kind of a recovery at second half of this year. Operator, the next question, please.

Operator: Go for the next question. The next question comes from the line of Brian Gong of Citi. Please go ahead. Your line is open.

Brian Gong, Analyst, Citi: 好的，晚上好，各位领导。想问一下销售线索这边的业务，就是现在经销商压力也挺大的，想问一下管理层怎么看我们销售线索这个业务后续的一个发展情况？谢谢。I will translate myself. Thanks management for taking my question. Given the pressure over auto dealers, what does management think about outlook for our sales lead business? Thank you.

Sterling Song, IR Director, Autohome: [Foreign language] For the leads. The leads generation performance is highly related with the overall sales volume in the market. In Q2, the market and the sales of the autos decreased. That is the main reason for the leads generation segment. On one hand, for dealer, continue to face significant operating pressures in the market, so many of them failed to meet their sales target for the first half this year. According to the statistics data from the China Automobile Dealers Association, CADA, 77% of the dealerships achieved less than 90% of their first half year sales target. So many of those dealers, they respond with more losses and with high volumes of inventory. That is why we believe, as we just mentioned, the sales volumes for the new cars still face a pressure and a decrease for second half of this year. [Foreign language] We still see some opportunities in the market. On one hand, we are increasing our traffic and upgrading our products to improve the quality and quantity of the leads, and they solid foundation for the renewal of our dealership products. For example, the 车商汇. For the second half of this year and the next year as well. I give you some examples. For example, we using our AI technology. We use the AI live streaming. We are leveraging the AI technology to empower dealers new media live streaming operations. So we can help them to reduce costs and improve their efficiency, and increase their operation efficiency, and help them to enhance their conversion capabilities. Also, we have smart stores, so we can upgrade the intelligent guided tour function. So when users browse a dealer’s online store, AI-generated voice commentary can match the content on the screen, and it can be played automatically. So it can help to create an immersive watch and listen experience, helping to increase the number of users who will submit and leave their contact information. So, we have tapped through those products and service upgrades and technologies.

We can build a solid foundation for the renewal of our products next year. Operator.

Operator: No further question at this time. I will turn the call back over to management for closing remarks.

Sterling Song, IR Director, Autohome: [Foreign language] Thank you very much everyone for joining us today. We look forward to speaking with you all again our next quarter’s conference call, and to sharing the latest update on the company’s corporate strategy and business development. Should you have any further questions or suggestions, please feel free to contact us at any time. Thank you everyone. Goodbye. Thank you, operator.

Operator: That does conclude today’s conference call. Thank you for your participation. You may now disconnect.