Ladies and gentlemen, thank you for standing by for Autohome’s Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to introduce your host, Sterling Song, Autohome’s IR Director, Mr. Song. Please, go ahead.

Thank you, operator. Hello, everyone. I'm Sterling Song and welcome to Autohome’s third quarter 2022 earnings conference call. Earlier today Autohome distributed its earnings press release and you may find a copy on the company's website at www.autohome.com.cn. On today's call, we have Chairman and Chief Executive Officer, Mr. Quan Long; and Chief Financial Officer, Mr. Craig Zeng with us. After our prepared remarks, our management team will be available to answer all your questions. Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but not are limited to those outlined in our public filings with the US Securities and Exchange Commission and Stock Exchange of Hong Kong Limited. Autohome doesn't undertake any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Autohome’s earnings press release and this conference call include discussions of certain unaudited non-GAAP financial measures. Please refer to our press release which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures, and is available on Autohome's IR website. Again, as a reminder, this conference is being recorded. In addition, a live and archived webcast of this earnings conference call will also be available on Autohome's IR website. Now, I will turn the call over to Autohome's Chairman and CEO, Mr. Long for opening remarks. Please go ahead, Mr. Long.

[Foreign Language] Thank you, everyone. Thank you, Sterling and hello, everyone. This is Quan Long, Chairman and CEO of Autohome. Thank you for joining us today in our third quarter 2022 earnings conference call. We are pleased to report a strong operational performance in the third quarter, building on our vigorous recovery momentum from the first half of 2022. Our total revenue for the third quarter were RMB1.84 billion, up 4.5% year-over-year, and the media service revenue increased by 28% year-over-year. Adjusted net income attributable to Autohome was RMB 590 million, returning to positive growth with a year-over-year increase of 1%. Adjusted net margin was 32%. Since the beginning of this year, China Central government has introduced a series of economic stimulus policies targeting the Auto industry in efforts to unleash relevant consumption potential. Also, the abolishment of used car circulation restrictions has helped to release the bottleneck hindering growth in the used car industry, with these policy changes alongside effective measures to contain the spread of the COVID-19 pandemic. China passenger vehicle sales recovered gradually in the third quarter with a total of 5.69 million units sold or 23% year-over-year growth. [Foreign Language]\ Despite the impact of the pandemic the auto industry remains a key pillar of the national economy also is abating services in people's lives and given automotive typically long life cycle, as well as prolonged support from the government. The auto industry is still protected tremendous growth potential as China's auto consumption level and the demand for upgrades continue to increase. To address challenges head on Autohome relative customers listened to their demand and actively adjusted our business model to provide effective solutions to address their pinpoints. After a great business adjustment in the past few quarters, we bottomed out and achieved a late stage rebound in the third quarter. We have now returned to a driving year-over-year growth trends and are maintaining good – and we delivered solid results to the market. [Foreign Language] With that, I will now turn the call over to our Chief Financial Officer, Craig Zeng, for a closer look at our third quarter operating and financial results.

[Foreign Language] Thank you, Mr. Long. Hello, everyone. I’m Craig Zeng, the CFO of Autohome. First, I'd like to give you an overview of our traditional business. For the third quarter, our media service revenue reached RMB 566 million returning to positive year-over-year growth for the first time up over a year continuous adjustment. This speculate Autohome's leading position and a stable market share in the auto media vertical sector. Our excellent performance is mainly attributable to two factors. First, we embrace changes and proactively pursue innovation to upgrade our traditional visits. For example, to all time the pandemic impact will fly via and other advanced technologies to our car searching tools and help online auto shows for customers to reach potential buyers more effectively, which also generated additional traffic for Autohome’s platform. In the first nine months of the year, we have helped 305 online auto shows covering over 500 million people nation-wide and offering user a simple secured searching the choosing cars anytime and anywhere. Normalizing online auto shows has effectively ordered user production, improve their experience and help partners to navigate the top business environment. Our online auto shows have received high grades from both users and our OEM customers, resulting in great improvement in our media business. Second, we concentrated our sources on fortifying our competitive advantages and enhancing our industry presence. For example, Autohome initiated the 818 Super Auto Show, the world's most positive IT in the auto media sector and has helped the auto show annually for four consecutive year. This year, we not only devoted more resources to the show but also collaborated with China Central Television CCTV media platform to more effectively promote OEM brands and products accelerating the pace of digital transformation across the auto industry. This year's 818 Super Auto…

Thank you. [Operator Instructions] Our first question comes from the line of Thomas Chong from Jefferies. Please ask your question Thomas.

[Foreign Language] Thanks management for taking my questions. My first question is about the auto industry Q3 development as well as, how we should think about Q4 2023 outlook? And my second question is about the used car market. How does sets are developing so far as well as the market landscape, including TTP as well as how we should think about next year's strategies? Thank you.

[Foreign Language] Thank you for your questions. The first question is related to the industry, and I will answer that. Your second question is related to the new car business, our CFO, Craig Zeng will answer you. So first of all, the auto industry is the vertical industry for our national economy, and we have been receiving attention from all parties, certain policies and development. [Foreign Language] First of all, I believe that the target at the moment of this year for our industry has already passed. Q3 made a significant recovery of the profitability of car manufacturers to set update for Autohome according to the CTCA this year, China passenger vehicle sales Q1 year-on-year decrease of 4.5%, and Q2 year-on-year decrease of 9.8% and Q3 year-on-year growth of 23.7%, according to National Statistics Bureau in the first nine months of this year that automobile manufacturing revenue has a synchronized growth of 6.7% and profit over RMB370 billion year-on-year decrease of 1.9% and the decreased margin compared to January to August has narrowed by 5.4 percentage points. We could see that the passenger vehicle sales is out of the bottom period and the turning point might have already -- might have been arrived -- might have provided. In Q3, the monthly sales and the production are both very optimistic leading the industry for a stabilization and recovery, and we see the follow-up policies getting more and more specific and consolidated. And since September, we see the implementation of a series of necessary details. So that effectively improved the effective management strong foundation for economic recovery. So we believe that the automobile industry is having a more and more positive environment for our development. Secondly, we benefit from the policies that encourage automobile reduction, and we also see remediation regarding the…

Great. Thank you. Our next question comes from Brian Gong from Citi. Please ask your question, Brian.

[Foreign Language] I will translate myself. Thanks management for taking my question. Can management share your view on auto as budget and as market ahead in the fourth quarter this year and next year? And also for our lease product to [indiscernible], where we continue to roll out more premium working ahead? Thank you.

[Foreign Language] Generally speaking, we still hold a favorable attitude, and we are partially cautiously optimistic. Our estimation is based on the new car market, however, the -- talking about the advertising budget for new models of part. This year, the auto shows or auto exhibition also from the impact of the COVID-19 pandemic almost all of them, almost none of them were held according to schedule or according to the schedule time or scale. However, that has led to new forms of -- also shows, for example, virtually and for example, integrating with metaverse. So generally speaking, the advertising budget of OEM is still linked to the sales that is why our additives for Q4 as well as for next year is cautiously optimistic. [Foreign Language] We have been providing a more diverse service to our dealers. For example, [Indiscernible] is very popular among our dealers. So we will continue to provide new features to help our dealers to cut costs and boost the efficiency. [Foreign Language] So that is the answer for your question, Brian.

Thank you. Our next question comes from Ritchie Sun from HSBC. Please ask your question, Ritchie.

[Foreign Language] Thank you management for taking my questions. First of all, is we noticed that you have signed some collaboration with NetEase Music as well as Huawei. Can you elaborate on the rationale and also opportunities behind this? And what are the other collaboration opportunities that we've seen with other Internet companies. Secondly, in terms of cost cuts or efficiency initiatives, what are the other rooms for us to do more given the top macro environment? Thank you.

[Foreign Language] Thank you for your question, Ritchie. First question is about our collaboration with NetEase Music, this is a new initiative that we make in the scenario of subscribing a car user scenario. We try to attract active users and to acquire new users and we collaborate with NetEase Music to launch a campaign called car owners music season and we launched some iterative activities. This provides better experiences of driving and music, and I think it gives us more room for imagination of how the content consumption could be integrated with the driving scenario. We also collaborate with the [indiscernible], and we need this cyber formats to bring diversity to our common products, and we also try to use – user and bring traffic by this online and offline, which is a virtual important interaction activity. And besides, we also collaborate with [indiscernible] and we try to explore business development based on different scenarios and try to build an alliance and a new system for traffic. But as I said, we also have some other collaborations, for example, the Focus Media Information Technology [ph] and Information Technology Company Limited, of which were mentioned a moment earlier, so Autohome in the future will have more collaborations with not only Internet enterprises, but also traditional enterprises to build an ecosystem for example, also shopping also purchased as well as auto application. And your second question is about our cost efficiency it consist of internal and external initiatives internally speaking, there are some pipes to the small measures. For example, in terms of -- in the report, we have been doing and very well continuing to do -- to take measures such as the performance evaluation and another measure is technical managers. I'll give you an example of how we boost our cost efficiency by technical managers, for example, in our content generation, we use our technological measures to boost the efficiency of content generation in terms of our inventory of our models and we could even automatically generate explanations in video format. There are more places like this if you are interested, you can feel free to reach out to me for more. Talking about the external measures of cost efficiency initiative, we try to facilitate the building of our ecological system. For example, currently, our customer acquisition stayed focused on a shopping and car purchase. And in the future, we don't extend this chain to car driving, so in this way, we could further improve our ecosystem and we could see first our cost efficiency initiative. So are there any further questions?

Thank you. Our next question comes from Brenda Zhao [ph] from CICC. Please ask your question.

So my first question is regarding the data product. As we could expect the COVID resurgence may continue to weigh on our OEMs budget, how should we think of the OEM and dealers demand entering into Q4 and 2023? Also, are there any recent plans for new product launch? And my second question is about our cash usage. Since we have sufficient cash balance, do we have any plans to raise our dividend payout ratio or set up our share buybacks? Thank you.

[Foreign Language] Thank you for your question. The first question regarding the data product, actually, I have already talked about it earlier and I will just recap it briefly. So we will continue to launch new data products for our customers. For OEMs, we will help them mainly with their marketing and launching of product. And for dealers, we will help them mainly with cost efficiency initiatives as well as market analysis. And talking about our cash flow, we will continue our buyback plan and we have been paying dividends in a stable manner. And we will, of course, pay returns to our shareholders in a manner that is best compatible with their best interests. End of Q&A:

Okay. That's the end of the Q&A session. Thank you, everyone. Thank you for joining us today in the earnings conference call, appreciate your support, and we look forward to updating you on our next quarter's conference call in a few months time. So in the meantime, please feel free to contact us, if you have any [Foreign Language] to everyone. Thank you, operator. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.