Q3 2026 AUTOHOME INC. EARNINGS CONFERENCE CALL - AUTOHOME INC

Ladies and gentlemen, thank you for standing by for Autohome's third quarter 2026 earnings conference call. At this time, all participants are in a 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 AutoHomes IR website. It is now my pleasure to introduce your host, Sterling Song, AutoHones IR Director. Please go ahead, Mr. Song. Thank you, operator. Hello, everyone, and welcome to AutoHome's third quarter 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 today on today's call is our Chief Financial Officer, Ms. Craig Yansung. 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 Education Reform Act of 1995. These overlooking sentiments are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainities include but are not limited to those outlined in our public filing with the U.S. Securities and Exchange Commission, and the Hong Kong Stock Exchange. Auto Home undertakes no obligation to update any forward-looking statement except as required under applicable laws. Please also note that Auto Home earnings press release at the conference call includes discussion of certain unaudited non-GAAP financial matters. A reconciliation of the non-GAP measures to the most directly comparable GAAP measures can be found in our earnings release. I'll now turn the call over to Auto Home CFO, Mr. Craig Yanzheng for opening remarks. Craig, please go ahead. Thank you, Sterling. Hello, everyone. This is Craig Zeng, CFO of Auto Home. Thank you for joining our earnings conference call today. The second-hand car is steadily advancing the construction of domestic and overseas dual-platforms and the continuous improvement and standardization of the service system of the all-terrain sales service platform. The high-quality driver's contribution to the cross-border export service platform and the amount of export sales have also achieved a synchronized improvement. In early September, we officially released the Autonomous Vehicle Service Intellectual App, which is a deep integration of AI capabilities with user service and commercial service. We are actively promoting vehicle service by matching information to reliable decision-making and reliable language upgrade. This is also a key strategic step in AI and vehicle service. In the third quarter, we made solid progress in upgrading towards a comprehensive automotive service ecosystem, with our innovative businesses developing steadily. On the user side, we set up our efforts to systematically develop our content under two metrics. Our user base maintained stable year-over-year growth, further strengthening our platform mode. On the innovative business side, our new retail business refined its model and scaled up its service network, further broadening its city coverage. Our used car business advanced the development of both domestic and overseas platforms. Our full-process used car sales service platform continues to improve its standardized service system, while our cross-border used car export service platform achieved growth in both the supply of quality vehicles and export transaction volumes. In early September, we officially launched our proprietary automotive service AI agent application cheese car butler by deeply integrating ai capabilities with our dual service ecosystem of users and merchants we are driving the shift in automotive services from pure information matching towards trusted decision making and reliable fulfillment this also represents a key strategic innovative for auto home in the ai plus automotive services sector Live activities are responsive and positive. The full exposure has exceeded 180 million. At the product level, the vehicle library has a view function, which will integrate scattered vehicle information and training. A picture focuses on the eight highlights of the vehicle and the five scenario tools to help users understand the core points of the car faster and more intuitively. At the same time, for the high complexity of the selection of new energy vehicles, We also launched the selection of equipment tools to reduce the cost-effectiveness of the selection process and effectively reduce the threshold of user decision. The data of Quest Mobile shows that the number of Japanese users increased by 3.4% in September of the car company's moving end reached 79.14 million. Its report further shows that in June to August, the car credit rate of the home of the vehicle has been at the top of the six AI platforms for three consecutive months. This also means that the professional content accumulated over a long period of time is continuing to release value in the new information service scene. On content, we continue to advance our brand rejuvenation. In partnership with Mango Excellent Media, Autohome produced the Variety Entertainment Gala August 18th Global Automobile Festival, which was broadcast across platforms. The gala featured celebrity and influencer challenge quizzes and other interactive formats, driving traffic growth and raising brand awareness. The live broadcast event was received positively, with total impressions across all channels exceeding 1.8 billion. On the product side, our vehicle model library launched the at-a-glance feature, which helps users understand the vehicle in a single glance by extracting and integrating scattered vehicle information into a single image, covering eight major highlights and five scenario-based tools for each vehicle. This allows users to understand the key setting points of a vehicle more quickly and intuitively. In parallel, to address the complexity of configuring new energy vehicles we also launched the configuration selector tool which simplifies the configuration selection process and lowers the barrier to decision making for users according to quest mobile data auto homes average mobile daus grew 3.4 percent year-over-year to 79.14 million in September. Its report also showed that Auto Home ranked first by citation rate as an automotive information source across six major AI platforms for three consecutive months from June to August. This demonstrates that the professional content accumulated by Auto Home over the years continues to be valued now in new information service scenarios. to build and cover all channels and all regions of the commercial business ecosystem network. By the end of the third quarter, Zhijia Mall is in online shopping mode, covering 38 cities nationwide, with a total of more than 1,700 new customers. There are more than 600 new cars on the market. By scaling up the authorization of commercial business networks, this mode effectively enriches the community of drivers, breaks down the restrictions on shopping in the regions, to further improve the trade chain of online car e-commerce. At the same time, the offline channels of Jiajia Haoxe are also expanding steadily, and the size of stores continues to increase. Until the end of the third quarter, Jiajiehaoxe has joined more than 170 stores, with a total of more than 700 deals. With the gradual establishment of new retail offline channels, the high-end city layout is gradually formed, and the family's trading service system is also improving day by day. Online assets and offline channels are working together. In the new energy vehicle sector, we accelerated the build-out of our dealer ecosystem across all channels and regions. By the end of the third quarter, Auto Home Mall's online car purchasing model had reached 38 cities nationwide, with more than 1,700 authorized dealers and over 600 vehicle series listed on the platform. Its large-scale authorized dealer network has broadened vehicle supply, removed regional barriers to car purchases, and strengthened the online automotive e-commerce transaction chain. Meanwhile, Auto Home Good Car steadily expanded its offline footprint and store count. At the end of the third quarter, Auto home Good Car had over 170 franchise stores, with cumulative transactions of over 700 vehicles. As new retail offline channels take shape and our footprint across higher and lower cities develops, Autohome's transaction service system is becoming increasingly complete. With our online assets and offline channels working synergistically, the network effects of our O2O ecosystem are beginning to emerge. On September 5th, Zhijia Qixia AI original application Intellectual Driver officially launched. The product is based on Zhijian's self-proclaimed automobile industry, the large model of the warehouse. Functionally, it covers the user's view, select, buy, use, all-in-one route. Connect online smart consultation and offline real-time document service. On the user side, the Intellectually Driven Driver will gather a large number of real car owners' evaluation and reputation information to provide a feasible reference for car decision-making, and integrate preferential inquiry, market price reservation, one-off trading, valuation comparison, door-to-door inspection, charging, care and reservation, and other military services, and the period of use of the vehicle that accompanies the user throughout the whole process. In the short term, the product covers the digitalization of all-industry mainstream 4S stores, second-hand car dealers and car service resources, and the digitalized management of negative-energy marketers and car servicemen. Intelligent Driver is a company that accumulates long-term vehicle content, data, industry resources, and user service experience, and AI technology together to create innovative products. In the future, we will continue to integrate product use experience, improve service quality, and make it more convenient for users to obtain real-time information and find the necessary offline service resources. On AI and large language models, we officially launched our AI native application, Cheese Car Bustler, on September 5th. The product is built on a proprietary Changjie automotive large model. It covers the entire user journey of browsing, selecting, buying, and using vehicles, leading intelligent online consultation with offline store services. For users, Cheese Car Butler aggregates extensive reviews and word of mouth data from real car owners to offer credible references for car purchase decisions. It also integrates one-stop services, including incentives and discounts, test drive appointments, fixed-price transactions, valuations, and price comparisons, on-site inspections, charging, and maintenance fulfillment to support users throughout the entire vehicle lifecycle. For merchants, the product covers mainstream 4S dealerships, dealerships, used car dealers, and automobile service providers across the industry, empowering dealers and aftermarket service providers in their digital operations. Cheese Car Butter is an innovative product that combines Autohome's long-accumulated automotive content, data, industry resources, and user service experience with AI capabilities. Moving forward, we will continue to refine the user experience and improve service quality, making it easier for users to access authentic information and find the offline service resources they need. In terms of the second-hand car business, we use the full-scale sales service platform as the core. In the beginning of the year, we launched a trial operation in Nantong and Changzhou. During the trial period, the transaction efficiency and user satisfaction were double-increased. We have initially verified the feasibility of the business model. In the third quarter, we will expand the market to 60% and continue to polish and standardize the service system through a more detailed operation of the local market, in order to repeat the promotion of Hengshi foundation in the national scope for subsequent business. In terms of cross-border export service platform, we strengthen the joint integration of the online multi-language international station and the offline travel network by turning on the online driver display, the transformation of the market and the test of the current price of the vehicle, and the key parts such as customs and logistics, to enhance the co-operative effect of cross-border transaction chain. At the same time, we are constantly rich in high-quality car users. In the third quarter, the platform has more than 3,000 Japanese customers online. Since the first export transaction was completed in July, the sales ranking has also increased significantly, and the business has shown a good development. Overall, In our used car business, we focused on the full-process car scale service platform and launched pilot operations in Nantong and Changzhou at the beginning of the year. During the pilot period, both transaction efficiency and user satisfaction saw improvements, preliminary proving the feasibility of our business model. In the third quarter, we extended the pilot to six cities. Through refined operations tailored to regional markets, we continued to hone our standardized service system, laying a solid foundation for replicating the model nationwide. For cross-border exports, service platform we strengthened the integration of our online multilingual international sites and our offline fulfillment network by connecting online vehicle supply displays and inquiry conversion with offline vehicle condition verification customs clearance and logistics we improved the collaborative efficiency of the entire cross-border transaction process we also continue to expand our supply of high-quality vehicles. In the third quarter, the platform averaged more than 3,000 vehicles listed for sale online each day. Since the platform completed its first export order in July, monthly transaction volume has continued to rise, demonstrating very sound business momentum. Overall, the full-process car sales and cross-border export service platforms are developing steadily with model validation regional expansion and operational chain efficiency improvement progressing in parallel building momentum for further expansion and nationwide deployment. and unique differentiating competitive advantages. At the same time, it has been a long-term commitment to continue to create the greatest value for shareholders. The board passed the cash dividend plan in the second half of 2026 and continues to actively buy back shares in the public market. Looking forward to the future, we will continue to invest in the strategic focus of being able to strengthen long-time competitiveness, while maintaining a delicate cost structure, to create sustainable value for users, customers, and shareholders. In summary, we further solidified our traditional information platform, reinforcing user mindshare and our traffic base, while actively developing our transaction business and accelerating the deployment of AI agent applications to build a differentiated competitive advantage. At the same time, in keeping up with our longstanding commitment to maximizing shareholder value, our board approved a cash dividend plan for the second half of the year, and we continue to actively repurchase shares in the open market. Looking ahead, we will continue to invest in key strategic priorities that can strengthen our long-term competitiveness while maintaining a streamlined cost structure, creating sustainable value for users, customers, and shareholders through a more efficient automotive service ecosystem. Next, I will explain the main financial situation of the third quarter of the car industry in 2026. Please note that I will only use RMB as a currency unit in today's discussion, unless there is any other explanation. With that, let me briefly walk you through the key financials for the first quarter of 2026. Please note that all amounts discussed today are in RMD unless otherwise stated. 第三季度收入总额为13.1亿元,具体来讲,媒体服务收入为2.41亿,线索服劥收入5.26亿 在线营销及其他收入 5.47亿 Net revenues for the third quarter were 1.31 billion, specifically, media services revenues were 241 million These generation services revenues were $526 million, and online marketplace and others revenues were 547 million. With respect to cost, cost of revenues in the third quarter was $6.46 billion, and the With respect to cost, cost of revenues in the third quarter was $431 million compared with $646 million in the 3rd quarter of 2025. margin in the third quarter was 67.2% compared with 63.7% in the same period last year. Turning to operating expenses, sales and marketing expenses in the third quarter were $575 million compared with $620 million in the 3rd quarter of 2025. Product and development expenses were $195 million compared to $279 million in 3rd Quarter of 2025 General and administrative expenses were $91 million compared with $125 million in the same period last year. Overall, the operating profit for the third quarter was $0.96 billion, which was $1.47 billion in the previous quarter. The adjusted net profit for this year was $2.53 billion, and the previous year's operating profit was $4.07 billion. Overall, operating profit was $96 million in the third quarter compared with $147 million in the same period of 2025. Adjusted net income attributable to auto home was $253 million in that quarter compared with $407 million in a corresponding period of last year. In the third quarter, the adjustment of the basic and貸付 per share profit was divided into 0.61 yuan and 0.60 yuan, and the previous period was divided between 0.87 yuan and0.86 yuan. In the 3rd quarter, adjustment of basic and the貸服 per share of US stocks was divided 2.43 yuan and 2.42 yuan, the previous periods were divided into 3.47 yuan and 3.45 yuan. Non-GAAP basic and diluted earnings per share in the third quarter were 0.61 and 0.660 respectively compared with 0.87 and 0 .86 in the corresponding period of 2025. Non-GAP basic undiluted earnings for ADS in the 3rd quarter were 2.43 and 2.42 respectively compared with 3.47% and 3.45% respectively in the corresponding period of 2025. As of September 30th, 2026, our assets and liabilities continued to show strong performance. In terms of cash and cash deposits, short-term investments and other long-term investment, the total amount was 176.5 billion yuan. In the third quarter, the amount of cash flow from business activities was 3.6 billion yuan . As of September 30, 2026, our balance sheet remained robust. Cash, cash equivalents, short-term investment and other long-term investments totaled $17.65 billion. Net cash provided by operating activities for the third quarter was $360 million. On July 28th, 2026, our Board of Directors authorized a share repurchase program under which we may repurchase up to US$400 million of auto homes ADS over the next 12 months. As of October 30, 2026, we have repurchased approximately 7.06 million ADS for a total cost of approximately US$155 million. In addition, according to the company's stock policy, The Board of Directors has approved the issuance of $1.58 of U.S. stocks and $0.3950 of cash in U.N. stocks to the U.K. stockholders and U. S. stockholder who will register for the restitution on Jan. 5, 2027. The total amount of cash will be about $1 billion. In addition, in accordance with our dividend policy, our board has approved a cash dividend of US dollar 1.58 per EDS or US dollar 0.395 for ordinary share payable in US dollars to holders of ordinary shares and EDS of record as of the close of business on January the 5th, 2027. The aggregate amount of the dividends will be approximately 1 billion and is expected be paid to holders of ordinary shares and the ads of the company on or around march the 15th 2027 and the march 22nd 2027 respectively that concludes our financial summaries now we are ready to open up the q a session operator please open up 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 start 1 1 again a moment for our first question and our first questions comes from the line of brian gong from city Please go ahead, Brian. Your line is open. I'd like to thank management for taking my question. I have two questions. First is what's our view on the auto sales industry right now and do you expect a recovery for the industry for next year and is there any change for the industrial chain? And secondly, what is the progress on our offline store currently? Could you share your plan over the short term and the medium term? Thank you. Thank you for your question. First, we do expect the domestic auto market to remain under pressure in the short term, but we believe it is already at the bottom for the moment. For next year, we believe there is likely to be some kind of recovery and stabilization. In the third quarter of this year, the car market sales have not been as strong as before. The main reason is that last year's supply and demand policy brought a relatively high number of cases. Supply and demand caused by the supply and the demand for sales has decreased. This year, there is a estimated sales of 18.5 million cars a year, which is the same as the decline of 22%. This means that the overall sales of the fourth quarter will still drop by 20% to 25%. well as the consumer sentiment are decreased such factors etc and for the for this year the whole year retail sales of passenger vehicles is projected to be 18.5 million units which is a decrease 22% year-over-year so this means that the overall retail sales in the fourth quarter is due to be to decline by 20% to 25% year over year. One is that the overall sales should be stable, and the structure is still the pull of the new energy car. The penetration rate of new energy cars reached 67% in September. Later, the leading independent brands will perform better. The tail end brands may be deliberately integrated. In terms of cost, the high international oil prices have also played a certain role in the consumption of gasoline cars. You know, the China Passenger Car Association, which is CPCA, it forecast that the domestic passenger vehicle retail sale will grow between 0 to 5% next year. The middle point is approximately 2%. And so this is in line with our judgment, you know, as we communicate with the market investors in the past we our forecast is is a low single digit increase for the china auto market so this is in line with our uh judgment and forecast and for for the auto industry next year we have several key judgments or observations uh first is that the overall sales are expected to remain relatively uh stable and the you know the the growth uh will continue to be driven primarily by the ev new energy vehicles the ev penetration rate you know uh in september has reached a record high of 67 percent and going forward uh you know that the leading domestic automakers is uh are likely to strengthen their market positions, market shares, while the weaker brands or weak players may face more accelerated wave of market consolidation and market exits. And on the cost side, there's a high international oil price, so it may also weigh on consumer demand for the traditional ICE cars. On the other hand, there is still a lot of pressure on the industry to make a profit. In September of this year, the profits of the industry have been compressed to 3.3%. The way of reducing prices to exchange for sales has basically come to an end. In the end, there should be more opportunities to repair this profit if these heads have the technology and the ability to go out of the sea. The tail end will also be more difficult. The channel turns from selling cars to making money by turning around and maintaining resistance. The main pressure is focused on joint-bundled fuel companies, weak second-tier companies, and weak-linked channels. Profitability across the auto industry will still remain under considerable pressure. For the first nine months this year, the auto-industry profit margin has been compressed to 3.3%. So the strategy of simply relying on the price cut, price reduction to drive sales is becoming more and more difficult. And those leading automakers or leading brands with strong technological capabilities and strong overseas operations, they are likely to be the first to return to better profitability, while those weaker brands or weaker players in the industry will continue to to actually the market so so the channels are also shifting away from the you know setting cars making money to to rely on turnover and the rebates for continuous operations so the pressure is we believe the pressure is mostly concentrated on those joint venture brands especially ice vehicles and some weaker second tier brands as well as dealers with more you know fragile financial conditions And for industry growth drivers, you know, they are shifting from the domestic purchase towards replacement demand and overseas exports. Overseas exports are expected to maintain a strong growth, growth momentum this year. At the same time, automakers' international expansion strategy will gradually evolve beyond simple exporting finished complete vehicles to include overseas manufacturing facilities or localized supplying chains and more comprehensive brand operations in international markets, etc. In summary, we believe that in the future, the auto market will face both challenges and opportunities. The massive demand will remain under pressure, and the industry has entered a period of deep structural adjustments, characterized primarily by the competition for existing market shares. And market share is practice to concentrate among those leading brands or leading companies with core technological capabilities or comprehensive ecosystem deployment and a strong brand equity. In the future, we will continue to provide more convenient and efficient all-week service for our users, including the construction of AI intelligence, the full process of buying and selling vehicles, the service platform and the cross-border export service platform, and so on. It will also help our customers promote transaction transformation, increase sales, and reduce costs in the change of industry. This will also be the core direction of our future continuous deepening and exploration. And for AutoHome, we will continue to invest in several key areas, which include contents, AI agents, and end-to-end platforms for vehicle purchasing and selling services, and cross-border service platforms, etc. Our goal is to provide users with more convenient and efficient services throughout the entire vehicle ownership lifecycle, covering the car browsing, selecting, buying and using. And we also help our business customers navigate changes in the industry by improving transaction conversion, driving the sales growth and reducing their costs. So this will be the core direction we will explore and develop in the future. uh in the past several quarters you know we have been focusing on expanding our offline retail network in high tier cities we are expanding our city coverage and diversifying the the the supply of vehicles through the authorized dealerships we currently have more than uh 1,700 participating dealerships and in those low tier cities we are strengthening our service capabilities in low tier markets through the auto home good car franchise stores with more than 170 franchise locations currently in operation 页面数量只是一方面,我们也更关注渠道质量和业务协同能力,核心是围绕汽车之家商城完成线下履约,逐步形成线上商城加上授权经销商,加上家家好车加盟,加下卡台之协总的服务网络。 线线流量和车员共景的不断加强,线下去道逐部建立,O2O的交易生态协通发展也让我们能够更好地满足合作伙伴和用户的需求。 uh well the number of the of our stores is one important metric but you know we place even great emphasis on the channel quality and on the ability to achieve business synergies our core objective is to build an offline fulfillment network centered on auto home more gradually establishing an integrated uh service network comprising of auto home wall plus authorized dealers plus auto home good car franchise stores plus car tech synergies as uh as online traffic and vehicle supply continues to to increase continues to grow and our offline distribution network becomes increasingly established so the coordinated development of our online to offline transaction ecosystem will enable us to better meet the the the needs of both our business partners and our users thank you the next question please thank you and our next question comes from the line of jing yuan from cicc please ask your question jing your line is open I have two questions. The first one is about over the past few years the company has been very proactive in shareholder returns could we expect the company to maintain a similar pace and scale of shareholder return going forward the second one is given the challenging industry environment how have new uh new energy vehicles brand testing performance thanks At the end of October, we have completed about $1.55 billion, which is close to 40% of the return rate. In the future, we will continue to actively implement this return operation in the public market according to a specific strategy. OK, thank you for your question. You know, Autohome has always placed great importance on the shareholder return and the market cap management for a long time. We have established a dual shareholder return framework combining a regular dividend policy with share repurchase on the shares repurchased or share by bike. At the end of July this year, we completed our US dollar 200 million share reprichase program, which was announced in early March, quite ahead of schedule. And in July, the Commerce Board of Directors authorized a new share repurchase program with a duration of 12 months and a total value of US$400 million. At the end of October last month, approximately US$155 million, or nearly 40% of the authorized amount, has already been executed. So going forward, we will continue to actively execute the share-by-buy program in the open market in accordance with our established strategy. In terms of the share price, the end of July has successfully completed the distribution of about 500 million RMB in the first half of 2026. The distribution of 1 billion RMB of shares in the second half of this year will also end within the first quarter of 2027. On the cash dividends, you know, at the end of July this year, we successfully completed the distribution of approximately RMB 500 million dividends to shareholders. The RMB 1 billion dividend program announced today will be completed in the first quarter of next year. And of course, we will be sure to keep shareholders informed in a timely manner of any future progress or update in our dividend policy. Zhijia's cash reserves are sufficient, and the stock market is not representative of health. The business has also made a gradual progress in the field of AI agents, and we will continue to optimize the efficiency of the business in the future, and invest in the business to maintain the integrity of the principles. Autohome has ample cash reserves and we keep a healthy balance sheet. We have also made notable progress in the new retail business, used car transactions as well as the AI agents. So going forward, we'll continue to optimize our operating efficiency while maintaining a disciplined and prudent approach to our business investment. The next question is about the overall performance of the new energy brand. From the sales and penetration rate, the penetration rate of new energy in September has reached 67%. This means that it has reached two-thirds of this level. Although the sales of new power sales in the first nine months of this year decreased by 13%, it is also better than the overall sales performance of new cars. In the previous nine months, the top-end sales of new energy sales accounted for 72% of the total sales, and half of it was traditional vehicles. For the NEVs, so in terms of sales volume and the penetration of NEV brands, in this September, the NEB penetration rate has already reached as high as 67%, which is two-thirds. So in the first nine months of the year, although the NEA retail sales fell 13% year over year, But it still outperforms the overall new vehicle market. So it demonstrates a lot of resilience. So during the first nine months of the year, the top 10 NEV brands accounted for 72% of total NEV retail sales volume. So half of that are from the traditional automakers. From the industry perspective, the brand evolution is quite obvious. Although the overall sales of new energy is declining, some new market brands still have a good growth compared to the previous nine months. This is also related to the layout of product lines and channel accumulation of these brands. From an industry landscape perspective, the brand differentiation remains quite clear, very evident. although you know the overall eb sales declined so so some brands they still delivered a strong year-over-year growth so in the first nine months so this is attributable to those brands early product lineup planning and their channel build up okay thank you next question please thank you we will now take our next question from Thomas Cheung of Jefferies. Please ask your question, Thomas. Your line is open. 感谢公司接受我的提问。我的问题是,公司目前二手车的业务进展如何? Thank you for taking my questions. Can management share any updates on the progress of the company's used car business? Thanks. Thank you. Currently, our second-hand car business is being promoted both domestically and internationally. Domestic second-handed car is a one-stop car sales service platform, from information integration to standardized transactions. We provide full-chain services from delivery, invitation, detection, matching, and delivery. In the customer side, we cover both internal and external scenes at the same time. We have a one-on-one specialist steward on the appointment. In the inspection, we have 265 industry-specific professional inspection projects to provide the insurance system for the car frame. In the matching, we use our warehouse model to automatically match the management number of the driver and the salesman, and take a close-up shot of the whole country through Tiantian. Finally, we sign a contract on the spot, and hand over the goods at the station. In the third quarter, we will standardize the all-terrain sales service model in six cities across the country. At present, the transaction conversion and user satisfaction are not bad. In the future, we'll further upgrade and polish this model and promote it nationwide. OK, thank you for your question. For our used car business, you know, it is currently making progress along the two parallel tracks. One is the domestic market, the other is the overseas market. Our domestic full-process used car sales service platform is upgrading from an information matching platform to a standardized transaction platform. From customer acquisition, we cover the entire chain of services from appointment scheduling, vehicle inspection, buyer and seller matching, and then to final delivery. On customer acquisition, we cover both on-platform and off-platformed customer acquisition channels. On the appointment scheduling, we can provide dedicated one-on-one customer service representatives. On the vehicle inspections, we can offer 265 professional inspection items benchmarked against the industry standards, providing a comprehensive vehicle condition assurance system. On the matching of buyers with sellers, we can leverage our Tangjie large language model to intelligently match vehicles based on dealers' operational preferences, as well as TTP to conduct nationwide auction, and finally, we provide other services for online agreements, signing and ownership transfer, etc. So in the third quarter, we piloted this standardized end-to-end vehicle selling service model in six cities across China. results in terms of transaction conversion and the user satisfaction uh has been quite encouraging so we will further refine this model and replicate nationwide in the future uh crossing to go food in that方面呢车员供给和效率提升是我们的关注点七月完成了 出口手单的全流程这个闭环后呢近几个月的成交台次是逐月上升的 However, this amount is still very small. The online international war and offline travel network co-operation is still in the process. In the future, we hope to improve the efficiency. The company's original information service, auction service, and data platform are all traditional storage businesses. They are all continuing to develop. This part of overseas is a new opportunity for us. For our cross-border export services platform, we are focused on improving the vehicle supply and operational efficiency. efficiency. Following the successful completion of our first end-to-end export transaction in July, the number of transactions has increased month by month in the past few months. But of course, the total volumes are still a relatively smaller amount. And we are still working to optimize coordination between our online international platform and our offline fulfillment network. and hopefully we can improve the operational efficiency in the future and for our existing information services auction services and data services they are always that you know they are all established business lines and continue they still continue to develop and the overseas business represents additional growth opportunities for us okay okay thank you next question operator thank you our next question comes from the line of richie sun from hsbc please go ahead richie Your line is open. Good evening, management. Good evening. Thank you for accepting my question. I would like to know how you think about the challenges and opportunities for AI agents to develop our traditional business. What points have been reflected in the income and costs? Good evening management. Thank you. Thank you so much for taking my question, I would like to ask how does management assess the challenges and opportunities brought by AI agent to the traditional business? And so what are the actual impacts that have already been felt or realized in our revenue and the costs? Thank you. Thank you AI agent has a great impact on the traditional businesses of the entire automotive industry. are all very influential. For example, in terms of interaction, AI Agent has become a new way to connect users and services. Conversational interaction is in the traditional input mode. In terms of service mode, AI Agent achieves the distribution of intelligent services. And the traditional head content cover-up mode needs to have a more accurate answer. Thank you for your question. you know on the on the impact of ai agents on our traditional automotive industry business you know from two levels level one is from the user uh user interaction level ai agents uh a agent is becoming a new uh central hub connecting the users with services with conversational interactions increasingly replacing traditional platform entry points. And the second, from the service delivery level, AI Agents enables intelligent service distribution. So traditional service models used by vertical automotive media platforms, which have historically focused on content placement and the broad market coverage, must evolve towards more precise targeting. Autohome has also achieved some results in terms of AI. In September, the Intellectual Vehicle Manager issued an official announcement to help users find the necessary service providers and help offline resources to find users. As a base model, Cangjie Da Moxing will pass on AI capabilities to the internal employee promotion, closed-end management, and cross-end services. And for Autohom, have made some achievements of progress in the ai here i can give you several examples one example is the cheese car a butler which was officially launched september this year it enables users to find the service providers they need and also enables offline service providers to find online users another example is our tangjie large language model which serves as our underlying technology technology foundation it enables us to establish a comprehensive ai empowerment framework which can improve internal staff efficiency and empower business partners and enhance services for users So these technologies and the investment in the product, its results have been reflected in the cost of Zhijia's report. But at present, in terms of the size of the revenue, AI has not yet been able to provide such a contribution. Rather, as the underlying technology capabilities of Zhiyia's various products, it continues to help optimize products and increase efficiency. So this investment in technology and products are already reflected in our financial statements, financial results. However, AI are not, you know, already began to generate revenue in scale. Instead, they serve as the underlying technological capabilities across our various products, helping us optimize the product offering and improve operational efficiency. So in this way, AI can support and strengthen our existing revenue, generating more business. Thank you. Thank you, we have now come to the end of the Q&A session, I'll now turn the call back to the management for closing remarks. 非常感谢大家参加今天的会议。 期待在下季度业绩电话会上 能再与大家交流公司战略 和业务的最新发展情况。 如果您有任何问题或建议, 欢迎随时与我们联系。 谢谢大家,再见。 Thank you very much, everyone, for joining us today. We look forward to speaking with you again on our next quarter's conference call and to share the latest updates on auto homes, corporate strategy, and business development. Should you have any questions or suggestions, please feel free to contact us at any time. Thank you very much. Goodbye. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.