Ladies and gentlemen, thank you for standing by for Autohome's third quarter 2023 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, you may disconnect at this time. A live and archived webcast of the earnings conference call will also 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. Thank you, Heidi. Thank you. Hello, everyone. Welcome to Autohome's third quarter 2023 earnings conference call. Earlier today, Autohome distributed its earnings press release, which can be found on the company's IR website at ir.autohome.com.cn. Joining me today on the call are Chairman and CEO, Mr. Quan Long, and Chief Financial Officer, Mr. Craig Yan Zeng. Management will go through their prepared remarks, which will be followed by a Q&A session, where they will be available to answer your questions. Before we continue, please know that the discussion today will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. 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 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 doesn't undertake any obligation to update any forward-looking statements, except as required under applicable law. Please also know that Autohome's earnings press release and this conference call include discussions of certain unaudited non-GAAP financial measures. A reconciliation of the non-GAAP measures for the most directly comparable GAAP measures can be found in our earnings release. I will now turn the call over to Autohome's Chairman and CEO, Mr. Long, for opening remarks. Please go ahead, Mr. Long. Thank you, Sterling. Hello, everyone, this is Quan Long, Chairman and CEO of Autohome. Thank you for joining our earnings conference call today. Thank you, Sterling. Hello, everyone. This is Quan Long, Chairman and CEO of Autohome. Thank you for joining our earnings conference call today. In the third quarter, our new businesses continue to drive Autohome's overall growth as we further optimize our revenue structure. This marks our fifth straight quarter of top line and bottom line growth on a year-over-year basis, while consistently maintaining a high net profit margin. Net revenues for the third quarter were CNY 1.91 billion. Revenues from online marketplace and others business increased 25.2% year-over-year, accounting for 31.4% of total revenue. Revenue from data products, in particular, generated strong growth momentum, increasing more than 30% compared to the same period last year. We also made substantial progress in deepening our collaborative efforts with NEV automakers. Revenues from NEV brands were up by nearly 70% year-over-year as a result. Moreover, adjusted net income attributable to Autohome for the quarter was up 2.3% year-over-year, with our adjusted net margin hitting 31.7%. During the quarter, we accelerated the build-out of our content ecosystem- which combines efficient tools, content, and services to offer users the information they are seeking, motivates creators to produce content and engage with our community, and creates a virtual cycle that drives growth across the platform. We also continue to explore new ways to develop, integrate, and create synergies between the diverse business models across our ecosystem. The Autohome Energy Space franchise stores we recently launched in cooperation with TTP in Chengdu and Chongqing have given us the opportunity to further refine the new retail plus used car business model and drive further business development. In addition, we also upgraded the foundational infrastructure and capabilities of our digital platform to enhance the value of our data products and seamlessly integrate big data and cutting-edge technologies to empower the digital transformation of dealers. 当前，新能源汽车快速崛起，加速了汽车行业的转型升级，也将新技术、新模式带到了行业发展的最前沿。在新的市场环境中，我们专注于利用新能源和数字化带来的重大机遇，支持合作伙伴的业务转型，并延伸我们的服务范畴，打造贯穿看车、买车、用车、换车生态圈的全链路一站式服务体系，以多元生态赋能公司的长期增长。 The rapid adoption of NEVs is accelerating the transformation of the automotive industry, bringing new technologies and business models to the forefront. In this new market environment, we are focused on capitalizing on the major opportunities, NEVs and digitalization present, supporting our partners in the transformation of their businesses and broadening the services we have on offer. This will ultimately create a one-stop ecosystem that spans the entire consumer cycle, from the research and the purchase phase, through to the use and exchange of cars to drive long-term sustainable growth. 接下来请CFO曾岩先生详细介绍公司第三季度的业务及财务情况。 With that, I will now turn the call over to our Chief Financial Officer, Mr. Craig Zeng, for a close look at our third quarter operating and financial results. 谢谢龙总。大家好，我是汽车之家的首席财务官曾岩。 Thank you, Mr. Long. Hello, everyone. I'm Craig Zeng, the CFO of Autohome. 第三季度，我们持续加强体系化工具和内容建设，深化平台护城河，扩大平台影响力。例如，我们重点发力新能源实测体系对车型的覆盖，第三季度完成对近100款热门新能源车型的测试，为用户提供更全面、更易懂、更专业的工具，提升用户选车决策体验。截止目前，实测工具累计服务用户已超260万用户。此外，之家的818汽车超级盛典与央视财经以及其他视频媒体和社交网站实现多平台联合推流，全域曝光量破145亿，进一步提升了汽车之家的行业影响力。 In the third quarter, we step up, step up our efforts to systematically develop tools and content, widen the platform moat, and broaden our profile across the industry. With interest in NEVs growing, for example, we tested nearly 100 popular models to provide users with comprehensive, easy-to-understand, and professional analysis and information. To date, more than 2.6 million users have used our testing tools to assist their car buying decision making. In addition, we promoted Autohome's August Eighteenth Super Auto Festival on multiple platforms in collaboration with CCTV Finance Channel and other broadcast and social media platforms. Total exposure exceeded 14.5 billion impressions, which further strengthens our profile in the industry. 另一方面，之家服务体系也迈入了新阶段，通过线上内容融合线下体验的方式，抢占用户心智。在成都车展中，我们首次尝试帮帮购服务，根据意向车型组织看车团，由之家的编辑、大咖全程陪同消费者看车、选车，给他们带来不一样的选购体验。我们还发布了早购达人计划，从多个维度鼓励创作者生产和推广，有助于消费者购车决策的内容，助力汽车消费。QuestMobile数据显示，汽车之家九月移动端日均用户量达到6,901万，较去年同期增长约39.3%，继续领跑汽车垂媒。 At the same time, we launched the next development phase for our service system, which combines online content with offline experiences, to further increase our mind share among users. At the Chengdu Auto Show, we showcased our personal...... by our highly experienced editors. We also launched a shopping guides program to encourage content creators to produce and promote content that facilitates the decision-making process for consumers, and boosts overall car consumption through our platform. According to QuestMobile, mobile DAU in September increased 39.3% year-over-year to 69.01 million, underscoring our ability to steadily strengthen our leadership position in the automotive media vertical. 在新能源领域，继去年九月推出首家新能源线下体验店之后，我们对这一模式进行了升级，尝试把二手车业务引入到新零售门店中。除了提供多品牌新能源汽车的一站式看选买车服务以外，还利用二手车业务创造了增量场景和天天拍车的车辆处置能力，向消费者提供卖旧买新的换购服务。 Following the launch of our first brick-and-mortar NEV experience store last September, we further refined this business model by integrating our used car business. In addition to providing a one-stop service for NEVs from multiple brands that span from car selection to purchase services, these stores now offer consumers the option to trade in their cars and apply the proceeds towards the purchase of a new one. This will create additional opportunities for car sales and take advantage of TTP's vehicle disposal capacity. 今年8月开业的成都站，更是集合了年轻人喜爱的汽车文化、艺术馆的形式，并不定期举办一系列创新营销活动，业态极具代表性。此外，两周前正式投入运营的重庆站，是我们第一家设有专属二手车运营区域的店铺，以三合一的服务形态为消费者提供一站式体验，让他们在出售二手车的同时，可以购买新能源汽车或者二手车。这种创新的服务模式，充分利用了新零售和二手车之间的业务协同，为消费者提供车辆检查、购买和更换服务，是新零售模式的又一大创新。 Autohome Energy Space Chengdu store, which opened this past August, has become particularly popular among youngster consumers, with its innovative marketing activities and automotive culture offerings, including a car museum. In addition, the Chongqing store, which officially opened two weeks ago, is our first location to feature a dedicated used car selection within the store. This provides consumers with a one-stop experience, allowing them to sell their old cars and purchase an NEV or a used car at the same time. This innovative service model capitalizes on the synergies between our new and used car businesses, and offers consumers a complete suite of additional services, including vehicle inspection, purchase, and replacement. 日前，我们的新零售业务发展迅速，新零售门店已在全国13个城市落地。未来2年，我们计划将汽车之家能源空间站推向全国，实现多线城市的下沉渗透，让汽车之家的资源优势从线上扩展到线下。而天天拍车也将建立空间站的战略性布局，更迅速地实现全国战略。 Our new retail business at the moment is developing rapidly, with the construction of new retail stores in certain cities having already begun. Over the next two years, we plan to increase the penetration of Autohome Energy Space franchise stores across the country, allowing Autohome to turn its online advantages into offline business across a broad range of markets. TTP will also leverage the Autohome Energy Space network to accelerate the expansion of its operations nationwide. 在数字化方面，我们在通讯册和人群画像上，分别做了技术和信息渠道升级，以提高通话效率和画像精准度。我们还深化了AI在智慧器产品中的应用，以进一步节省人工，强化内容质量，对经销商客户提供更高价值的的服务。前九个月，包括店均合作产品数和店均收入在内的各项核销的核心指标继续保持两位数的同比攀升。我们将继续快速覆盖数字化产品的应用场景，赋能经销商从人为驱动经营转变为数字驱动经营，用高效取代低效，切实帮客户减负。 On the digitalization front, we upgraded our technology and information channels to improve communication and user profiling, and strengthen the efficiency and accuracy of customer outreach. We also broadened the application of AI into our smart products to generate further labor savings, improve content quality, and provide more value to dealer customers. In the first nine months of the year, key metrics, such as the average number of data products adopted by each dealer store and average revenue from data products per dealer store, both increased by double digits when compared to the same period last year. We are rapidly expanding our digital product portfolio across a range of application scenarios... in order to support dealers as they shift from human-driven to digital-driven operations to improve their operational efficiency and ultimately lower the out-the-door prices for customers. 二手车方面，除了持续推进与新零售门店的业务联动以外，在产品上，我们以二手车拍卖和新车终端成交数据为基础，结合大模型的计算能力，推出了一站式车价查询平台，向二手车商提供车辆真实成交价格和估值工具。车商可以精准查询到不同区域、不同品牌、不同型号的新车和二手车成交价格，为二手车辆的准确估价提供依据。此外，我们还分别从用户和商务两端提升满意度，从而促进成交转化率改善。第三季度，这家平台的信息撮合及拍卖服务的渗透率持续提升，影响了全国二手乘用车交易量约24.4%，同比提升约3个百分点。 Turning to our used car business. In addition to our ongoing cooperation with new retail stores, we launched a one-stop vehicle price inquiry product during the quarter based on used car auctions and new car transaction data. This platform provides used car dealers with the real vehicle transaction prices as well as valuation tools supported by large language model capabilities. Dealers can now accurately evaluate each vehicle by querying the transaction prices for new and used vehicles across different regions, brands, and models. In addition, we are also boosting the transaction conversion rate by increasing customer and user satisfaction rates. In the third quarter, Autohome matching and auction services platform accounted for about 24.4% of all used car transactions in China, a year-over-year increase of approximately three percentage points. 综上所述，汽车之家第三季度营收和利润稳健增长，收入结构持续优化，多元业务的协同发展大大提升了整体业务的上升空间，而新零售业务也在，也正在加速迈入发展的快车道。展望未来，我们将继续深化生态化战略布局，打通线上和线下渠道，为解决新能源趋势下车企的经营转型提供新模式。我们坚信，多元业务发展将助力汽车之家实现下一阶段的增长。 In summary, we delivered steady revenue and profit growth during the quarter, while continuing to optimize our revenue structure. Our new retail business is gaining growth momentum as synergies among our diverse business lines begin to take hold, which will greatly strengthen overall growth prospects going forward. Looking ahead, we will continue to advance our ecosystem approach by creating new business models that connect the online and offline channels to help automakers transform and adapt to NEV trends. We are confident that our diversified business will drive Autohome growth to the next level. 接下来，我来向大家简述一下汽车之家2023年第三季度的主要财务情况。请注意，我将在今天的讨论中仅以人民币作为货币单位，除非另有说明。 Next, let me walk you through the key financials for the third quarter of 2023. Please note that, as with prior quarters, I reference RMB only in my discussion today, unless otherwise stated. 第三季度收入总额为CNY 1,910,000,000，同比增长3.4%。具体来讲，媒体服务收入为CNY 477,000,000，线索服务收入为CNY 830,000,000，在线营销及其他收入为CNY 599,000,000，同比增长25.2%，主要是由于数据产品的收入贡献增加。 Net revenues for the third quarter were CNY 1.91 billion, up 3.4% year-over-year. Breaking it down by segment, media services revenues were CNY 477 million, leads generation services revenues were CNY 830 million, and online marketplace and others revenues were CNY 599 million, up 25.2% year-over-year, driven primarily by increasing revenue contribution from data products. 成本方面，第三季度营业成本为 CNY 3.74 亿元，去年同期为 CNY 3.31 亿元，营业成本同比增长，主要是由于内容及运营成本的增加。第三季度毛利率为 80.4%，去年同期为 82.1%。 Moving on to costs. Cost of revenues in the third quarter was CNY 374 million, compared to CNY 331 million in the third quarter 2022. The increase was primarily attributable to an increase in content and operational costs. Gross margin in the third quarter was 80.4%, compared to 82.1% in Q3 2022. 营业费用方面，第三季度销售及市场费用为9.35亿元，去年同期为8.63亿元，同比增长，主要是由于市场推广费用的增长。研发费用为3.55亿元，去年同期为3.87亿元，同比下降，主要是由于人员相关费用减少。... 最后，一般及管理费用为1.4亿元，去年同期为1.36亿元。 Turning to operating expenses, sales and marketing expenses in the third quarter were CNY 935 million, compared to CNY 683 million in Q3 2022. The increase was primarily attributable to the increase in marketing and promotional spending. Product and development expenses were CNY 355 million, compared to three hundred and eighty-seven million in Q3 2022. The decrease was primarily attributable to a decline in personnel-related expenses. Finally, general and administrative expenses were CNY 141 million, compared to CNY 136 million in Q3 2022. 总体来讲，汽车之家第三季度营业利润为 CNY 166 million，上年同期为 CNY 192 million。归属于汽车之家的经营经调整净利润为 CNY 604 million，上年同期为 CNY 590 million，同比增长 2.3%。 Overall, we delivered operating profit of CNY 166 million in the third quarter, compared to CNY 192 million in the corresponding period of 2022. Adjusted net income attributable to Autohome Inc. was CNY 604 million in the third quarter, compared to CNY 590 million in the corresponding period of 2022, representing an increase of 2.3% year-over-year. 第三季度，经调整基本和摊薄每股净利润均为CNY 0.123亿元，去年同期均为CNY 0.118亿元。第三季度，经调整基本和摊薄每股美国存托股净利润分别为CNY 4.93元和CNY 4.92元，去年同期分别为CNY 4.73元和CNY 4.72元。 Non-GAAP basic and diluted earnings per share in the third quarter were $1.23, respectively, compared to $1.18 respectively, in the corresponding period of 2022. Non-GAAP basic and diluted earnings per ADS in the third quarter were $4.93 and $4.92 respectively, compared to $4.73 and $4.72 respectively, in the corresponding period of 2022. As of September 30, 2023, our balance sheet continued to remain strong, with cash, cash equivalents, and short-term investments totaling CNY 23.43 billion. In the third quarter, net cash flow from operating activities was CNY 425 million. As of September 30, 2023, our balance sheet remained very strong, with cash, cash equivalents and short-term investments of CNY 23.43 billion. We generated net operating cash flow of CNY 425 million in the third quarter of 2023. In November 2021, the company's board of directors approved a share repurchase program with a total amount of no more than $200 million within 12 months. In November 2022, the company's board of directors extended this repurchase program by 12 months, and it will expire on November 17, 2023. As of October 27, 2023, we have repurchased approximately 6,250,000 American Depositary Shares, with a total amount of about $187 million. On November 18, 2021, our Board of Directors authorized a share repurchase program under which we were re-permitted to repurchase up to $200 million of Autohome ADS for a period not to exceed 12 months thereafter. On November 3, 2022, our Board of Directors authorized an extension of the share repurchase program for another 12 months, expiring on November 17, 2023. As of October 27, 2023, we have repurchased approximately 6.25 million ADS for a total cost of approximately $187 million. 以上是公司的财务数据汇总，下面我们开始回答问题。 With that, we are ready to take your questions. Operator, please. Thank you. If you wish to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will take our first question. Your first question comes from the line of Kai Wang from CICC. Please go ahead, your line is open. 管理层晚上好，感谢接受我的提问。我这里可能想请教两个方面的问题。第一个就是目前我们看到三季度车市是呈现一个比较温和的边际的回暖。目前看来，整体主机厂在这个价格策略上依然是趋于激进的一个状态。想请教管理层如何看待明年车市的一个发展的趋势，以及结构性的机会？第二个问题的话，是关于新能源的这个新零售模式的哈。看到咱们这个线下体验店已经陆续地从上海顺利扩展到了成都等地区，截止目前的话，咱们看到核心城市的这个运营指标是如何的，以及管理层对于新零售业务这一块，明年的一个投入计划和增长的目标是怎么去展望的？然后我自己快速翻译一下。 Thanks for management for taking my questions. And I got two questions here. The first of all, could you please share your view on market outlook for the upcoming quarters? And do you expect continuous price competitions among OEM? And secondly, could you update us on the progress of the new retail model for NEV? Especially, could you share with us the key operating metrics of pioneer cities such as Shanghai or Chengdu? Thank you. 好的，这个对于第一个关于这个车市的问题，这个我来进行回答。那么我们也看到这个第三季度的这个我们国家的经济呢，是持续恢复向好的。那么国家统计局呢，也发布了相关的这个数据。那么第三季度国内生产总值GDP呢，是同比是增长4.9%，那么是高于市场这个预期的。但是我们也看到呢，根据乘联会的数�呢，三季度乘用车的零售销量同比呢，只增长了1.8%，那么这相对于二季度同比上涨21.4%来看的话，是增速是大大放缓了。那么这中间主要的原因呢，是因为去年同期这个比较高的这种基数的影响，那么再加上叠加了这个消费者对于大众商品的这种消费呢，目前还是持谨慎态度，所以说汽车行业仍然面临挑战。 Okay, I will take the first question. In Q3, that the economy continue to recover and rebound according to the statistics released by National Bureau of Statistics in Q3, our GDP grew by 4.9% year-on-year, higher than market expectation. However, according to the data from CPCA, in Q3, passenger vehicle retail sales grew by 1.8%. In Q2, this number was 21.4%, you can notice there is a big slowdown of the growth speed. This is because of the high base number of the same period last year, while at the same time, the consumers continue to be precautious about the commodities consumption. As a result, there is still challenges for the entire auto industry. 那么根据这个乘联会的资料来看呢，那么今年一至九月份呢，中国汽车行业的利润率呢，只有4.9%，那么这是低于同期这个整体工业企业利润率5.7%的平均水平的。这中间的主要原因呢，是因为这个燃油车盈利，但是市场占比是大幅下滑的。新能源车呢虽然高速增长，但大部分呢，是仍在亏损的。所以对于汽车行业来说呢，这种结构性的调整呢，还在持续地进行中。 According to the data from CPCA, in the first nine months of 2023, the overall profit margin for the Chinese auto industry is 4.9%, much lower than 5.7%, which is the overall industrial companies profit margin. However, I think that this is because even though ICE cars are still making profit, but their market share is declining, while NEVs experienced a high speed growth, but most of them are still suffering from losses. As a result, entire auto sector are still going on the restructuring. 那么目前的中央和各级政府为了稳定这个汽车生产，扩大这个市场消费呢，应该是出台了一系列的促进汽车消费的相关政策。你比如说这个优化汽车限购管理的政策，还有支持老旧汽车的更新消费，还有加快这个培育二手车市场，以及加强新能源汽车配套措施这种建设等措施的话呢，我们相信这一系列的这种利好政策呢，将会促进汽车行业消费的加快恢复。 So far, central and different levels of the local government, they have been paying great efforts to uplifting and stabilizing the auto production, and also released a series of policies and incentives to promote auto consumption. For example, there is policy about optimizing the car purchase restriction management to support the trading of the old cars for the new ones, and accelerate the development of the used car market and, accelerate and strengthen the development of NEV supportive facilities. We believe that with the above mentioned favorable policies, the auto sector consumption will continue to recover in a very speedy way. 对于明年的车市的发展趋势呢，我们认为主要有两个方面。那么第一个呢，就是新能源领域呢，仍然是行业的发展重点。那么根据乘联会的发布的相关数据呢，是截止到今年9月份，那么新能源汽车的市场渗透率呢，已经达到了36.9%。那么中央和各地呢，持续在推出更多的一些有针对性的、实效性的举措，来促进新能源汽车消费。所以我们预计啊，明年的新能源市场的渗透率呢将持续走高，这是一个方面。那么第二个方面呢，就是关于这个二手车市场的潜力呢，也将持续扩大。那么我们可以看到，中国二手车的消费呢，趋于快速地崛起阶段。那么今年1至9月，二手车的交易量已经达到了一千三百四十九万台，那么交易额是达到了八千五百九十八亿元。中国二手车市场呢，是名副其实的万亿级市场。那么随着新能源车的的发展，让更多的消费者有了购车和用车的低成本优势。那么同时呢，二手车的单独的迁入政策的实施呢，也给汽车经销商的二手车业务呢更多蓬勃发展的空间。所以对于中国的二手车市场发展潜力呢是巨大的。 In terms of the outlook and the trend for the auto market of next year, we think that there are mainly the following two aspects. First of all, NEV will continue to be the priority of the development. According to the data of CPCA, by the end of September, NEV passenger vehicle market penetration hit 36.9%, and central, as well as the local government, continue to launch more targeted and effective measures to promote the consumption of the NEV. We estimate that in next year, NEV penetration will continue to go higher. And the second trend is that the used car market will continue to expand its market potential. We've noticed that the used car consumption quickly and rapidly emerge in China. In the first nine months of 2023, the used car trading volume was 13.49 million units, and the trading value was CNY 859.8 billion. The used car market in China is indeed a trillion-level market, and with the development of NEV, when more consumers, they got at the advantage of purchase and used car in the low cost, while at the same time, the separate endorsement policy and its implementation for the used car also deliver more development potential and space for the car dealership industry. So I believe that there's a huge potential for the used car development in China. 所以我们这个总结一下吧，这个总体来看呢，中国汽车行业中长期形势呢，是稳中向好的。我们对中国车市长期发展呢，也是充满信心的。那么作为汽车之家呢，将持续地发展新能源汽车和二手车的业务，那么把握新的市场机遇，以多元化生产，生态赋能公司的长期健康成长。 In a word, the Chinese auto sector in the medium and long term will enjoy a stable and upward trend, and we're very confident about the long-term development trend and its potential of the Chinese auto market. Autohome will continue to grow our NEV and used car business to grasp the new market opportunities and use diversified ecosystem to empower our long-term sound development and growth. I am Craig Yan Zeng. I will answer your second question, which is about our offline experience stores. In terms of quantity, this is also a very important metric for us. This year, in addition to Shanghai, Haikou, Chongqing, and Chengdu, which are already officially operating, we may have close to 20 of these new retail stores gradually starting operations by the end of this year. This is a very important metric for us in itself. In core cities, we have not made an official disclosure of these metrics yet, but from the speed of our store openings and what we have seen, we are quite satisfied. Customers have also given us very positive feedback. The acceptance level of this new model is also very good. We welcome everyone to visit our stores and get first-hand information. In the next one to two years, we will promote this model in different cities and at different city tiers according to the situation with our partners, because this model has a big advantage. In addition to tier-one, tier-two, and tier-three cities, it will also have strong vitality even in tier-four and tier-five cities. Our target for next year may be 50 cities, and by 2025, it may exceed 100 cities. We also look forward to this new energy model, as its penetration rate continues to increase, contributing more financial data to Autohome in the future. Okay, Mr. Zeng will take the second question. So for the second question, the first thing we should look at is the number of the stores we built. Now, actually in Shanghai, Haikou and Chengdu and Chongqing, we already officially put our stores into operation. And besides, by the end of the year, we're going to build another 20 new shops. So this is very important indicator for us, the number of the stores. Well, at the same time, you can see that, now for the numbers and indicators, we haven't disclosed these numbers in the essential cities. However, the speed of building our stores, as well as the feedback we get from the consumers, are pretty positive. And I think that this is a very popular trend in the future. And if you get chance, we welcome all of you to visit our stores in different cities. In the next 1 or 2 years, according to our development in different cities, as well as our cooperation with different partners, we will continue to promote the number of our stores. We have not only built stores in Tier 1, Tier 2, and Tier 3 cities, but also Tier 4 and Tier 5. We see very strong vigor and vitality in different tiers of the cities. We plan that next year we're going to cover another 50 cities, and by the end of 2025, we're going to cover a total of 100 cities in China. We expect that with different penetration of the NEV, in the future, new retail business will continue to contribute more in our financial contribution. Thank you. We will take our next question. Please stand by. Your next question comes from the line of Ritchie Sun from HSBC. Please go ahead. Your line is open. 龙总，张总，Sterling，晚上好，感谢你们给我提问机会。我有两个问题。... 首先管理层请问可以量化一下，对明年二手车市场的增速有什么预期？刚才也，可能简单讲了一下。然后对二手车公司的二手车业务的收入和利润率有什么预期？第二个问题就是关于不同互联网平台现在已经使用到AI和大模型，提升了广告变现，内容生产和线索清理等的效率，其实我们公司在这一方面有什么布局呢？其实在媒体、线索、数据产品等等业务线，我们有没有看到进一步提升效率的空间？I will translate these questions myself. Good evening, management. Thank you for the opportunity to ask questions. I have two. So firstly, after the previous question that talked about used car, can management further quantify the expectation towards the used car market growth outlook in the next year? And what is your expectation towards the revenue and margin for this business? Second of all, various internet platforms are using AI and large language models to improve ad monetization, content production, and leads filtering efficiency. So what is Autohome strategy in this front? And in media services, leads generation, data products and among other business lines, do we see any room to improve the efficiency further? Thank you. 好，谢谢，谢谢。我先第一个问题关于二手车。二手车呢，是汽车消费的一个非常重要的一个板块，二手车市场呢，也一直受到了政府的这个重视。最近呢，政府也是发布了很 多促进这个二手车市场的这个政策。根据中国汽车流通协会的这个数据呢，今年前三季度，国内二手车交易的规模呢，达到近1,350万辆，同比增加了12.6%。汽车流通协会它预测呢，今年全国二手车的交易量呢，有望创下历史的新高。我们预计呢，明年二手车市场呢，仍将延续今年的良好态势，继续保持活跃吧，迎来一个高质量发展的新的阶段。 Okay, firstly, I will address the question about the used car market. You know, used car market is a very important segment in the entire auto sector, and used car market always got high attention from the government. Recently, you know, the government continuously to release a series of incentives to promote the consumption on the used car market. According to the data of Auto Dealers Association, in the first three quarters of this year, our used car market trading volume hit almost 13.5 million, grew by 12.6% year-on-year. Also according to the forecast of Auto Dealers Association, this year, our national used car trading volume is expected to hit a historical high. We expected that next year, used car market will continue to keep today's and this year's good trend, and continue to be very active and embrace the new stage of high quality development. 从我们的收入来看呢，今年二手车，新车降价促销呢，还是给二手车行业带来了一定的挑战。汽车之家二手车的业务呢，还是表现出了比较好的一个韧性。前三个季度呢，汽车之家包括天天拍车在内，整体二手车的业务板块呢，还是保持了一个比较稳定的一个增长。天天拍车呢，也保持了累计的盈利。随着明年汽车之家新零售门店在更多城市运营，天天拍车呢，也可以建立这个能源空间呢，去实现一个更多城市的这么一个扩张。我们也有信心呢，把我们明年整体的二手车的业务呢，营收呢持续扩大，也可以去参照一下整个二手车市场的这么一个增速吧。 In terms of the revenue, you can see that this year, the new car price cuts and promotion campaigns do generate some challenges for the used car market. But for Autohome, our used car business shows a very strong resilience. In the first three quarters, you know, the overall used car business, including TTP, maintained a very good momentum, and TTP still makes profit so far, and next year, with more and more new retail shops and stores operating in different cities, I believe that TTP will also leverage the space stations and to have their businesses all over China. And we are very confident that next year, the overall used car business revenue will continue to expand. 关于 AI，在应用端呢，我们持续应用和 AI 大模型相关的技术，谋求更多的商业合作机会，以提高产品竞争力和客户满意度。年初呢，我们达成了与百度的文心一言生态的战略合作，将通过百度智能云接入文心一言的能力，结合自身的数据及技术优势，实现智能对话技术与汽车数字化服务的全面融合，这也是 AI 模型技术在国内汽车数字化服务场景的首次落地。 And the second question, you know, from the application side, we continue to apply AI and large language model related technologies and to seek more business cooperation opportunities, so as to improve our product competitiveness as well as customer satisfaction. In the beginning of the year, we enter into strategic partnership with Baidu Ernie Bot, and we will leverage their capability of Baidu Smart Cloud connecting with Ernie Bot and based on our own data and technology strengths, we are going to have the comprehensive convergence of intelligent dialogue technology with the auto digital services... This is also the first application scenario of the AI large language model technologies on the auto sector in China. 在产品上呢，我可以给你举几个例子啊，这个上半年呢，我们上线了一个基于AI技术的智选工具，叫云智选，帮助经销商快速进行用户分层、分流，触达高净值的用户，释放产能，提升服务质量。基于GPT模型呢，我们在帮助用户进行选车对比，以及帮助经销商门店进行分析上呢，也都有产品来推出。再比如呢，我们的AI智能写作是我们智能助手的其中一项功能，能够帮助经销商完成质量优良的内容发布和写作。我们希望依托这类大模型产品，我们可以持续帮助经销商降本增效，提升运营效能。 Product wise, in the first half of this year, we have launched an AI based intelligent tool, which is called Smart, Smart Selection, to facilitate and empower the dealers to quickly segment their clients and to reach out to the high net worth individuals as soon as possible, release their capacity and improve service quality. And based on GPT model, we are also helping the users and the clients to select the cars and also help the dealers to do the operation analysis. And for another example, our AI smart writing instrument is also one of the functions in our intelligent assistant. It can actually facilitate and empower the dealers to complete high quality and very good writing as well as the content release. We hope that by relying on this kind of large language model products, we can continue to help the dealers to cut costs and improve efficiency, as well as to enhance their overall operation efficiency. 好，下一个问题。 Okay, next question. Thank you. We will take our next question. Your next question comes from the line of Thomas Chong from Jefferies. Please go ahead. Your line is open. Thanks, management, for taking my questions. My first question is about the budget spent by OEM in the second half this year as well as 2024. My second question is related to the overall used car market as well as the strategies for Tiantian Paiche. Thank you. 好，谢谢，谢谢Thomas。我先回答一下关于主机厂的这个和明年的这个市场预算投放的这个情况。下半年，特别是四季度，我们看到整个的市场竞争还是非常激烈，主机厂确实会把，会更有意愿，特别是燃油车的这些主机厂，会把这个预算投放到了这个促使终端成交的，比如说线索，有效果类的广告，或者直接进行补贴。同时，也会把这个更多的资源去支持到经销商。 Okay, I will first take the question about the budget plan for the OEM in second half as well as next year. In the second half of this year, and in particular since Q4, we see that actually the OEMs, they would like to invest more of their budget in promoting the transaction from the user side, for example, to support the lead generation as well as to invest on advertisement or directly subsidize the consumers. 对于明年呢，刚才龙总也提到了，说整体来讲呢，我们对于市场，整体的市场还是一个谨慎乐观的态度。但是呢，由于主机厂本身的利润，还有经销商本身的这种自身盈利情况的这种压力，主机厂可能也还是会继续今年的这个趋势，还是会首先优先去考虑，对经销商的支持和一些终端的补贴，所以他们在广告的这个投放上呢，可能就会是更加的，谨慎，更加的关注效果，也会更加多元化。所以在这一块呢，可能明年我们依然会看到一个比较竞争，比较激烈的 一个竞争的场面。 And for next year, just like Mr. Long mentioned, we think that actually for the market investment, we will continue to be cautiously optimistic. Because for the OEM, since their profit margin are under some pressure, they will pay more attention to the effectiveness of their budget investment. For example, they will prioritize the support to the dealers or directly subsidize the consumers. As a result, in terms of the ad investment, they will be more cautious and they tend to further diversify their investment, so they will also pay more and higher attention to the effectiveness of the ad. 所以从未来来讲的话，我们还是会抓住这个行业的趋势吧。一个是加速AI为代表的数字化，在这个整个领域中对效率的提升，还有一个就是新能源的一个快速的发展。所以还是围绕这两，这两个点，我们会去提升我们自身的能 力，也去抢占更多的客户这个预算。 Looking into the future, I think that we will continue to grasp the opportunities, in particular in two areas. First of all, accelerate the digital application of AI, and secondly, still prioritize and focusing on NEV. By leveraging our strengths, we will also try to win more customers and try to get their budget and investment. ... 那关于二手车市场，刚才我也讲了一下，就是总体来讲呢，由于受到这几年新车降价的一个承压，还有一个过去疫情的一个影响，所以过去二手车的增长受到了一定的限制。那未来几年呢，我们认为新车的降价的这个基本上也，到了一个阶段，所以未来几年呢，我们是觉得二手车会是一个两位数的一个增长，这么一个整体的这么市场状态。 For the used car market, I already mentioned that due to the price cut of the new vehicles and because of COVID-19, we do see that used car market has been under some pressure as well as some restrictions. But I believe that in the future years, you know, the price cuts for the new cars already come to a specific limit, and we believe that the used car market can expect a double digit growth. 对于天天拍呢，我想他们过去的这一年中已经持续地保持了一个盈利，度过了一个生存的压力。他们现在的未来的目标呢，更多是一个扩张和发展的态势。那我们考虑呢，除了他们自身之外呢，我们也希望能够结合，之家，结合集团等各方面的资源来帮助他们的发展。那我们也提到了，在最新的这个新零售门店中呢，我们也推出了这种三合一种的服务形态，也一方面呢，是方便了客户的一个换车的需求，另一方面呢，也可以帮助天天拍进行一个高速和低成本的一个扩张。 And for TTP, yeah, TTP is already in generating process. It means that it's already gone through the stage of survival, it's already enter into the stage of expansion and future development. In the future, we will continue to leverage the resources from the group as well as the other partners to facilitate the development of TTP. And in the previous answered the questions, we also mentioned the three in one service format, so we think that it will greatly help TTP to develop and will continue to facilitate its high speed growth. 啊，好了，下一个问题。 Okay, next question please。 Thank you. We will take our final question. Your final question comes from the line of Brian Gong from Citi. Please go ahead, your line is open. Thank you, management, good evening. That, because it's already the end of the year, I want to ask, when will we start the contract renewal with dealers for this generation? What are our expectations for this renewal? Do we still have room to raise our price? Now, with the rising proportion of new auto sales from new NEVs, I wonder how management views the number of dealers from traditional OEMs. Will the number of 4S stores gradually decline in the future? Thank you. I will translate myself. Can management share, you know, when we will start the contract renew with dealers for this generation, and what's our expectation for the contract renew this time? Do we still have room to raise our price? And along with, you know, the rising proportion of new auto sales from new NEVs, how does management think about the numbers of dealers from traditional OEMs? Will the number gradually decline in the future? Thank you. 好，谢谢Brian。经销商的续约和往常一样吧，就是，我们现在基本上已经开始了，到明年的第一季度结束吧。这个呢，跟往年也是同样的。你提到关于涨价，其实涨价从来不是我们一个策略的一个目标。过去可能市场上有一些觉得我们从经销商收的钱数是增加了，但现实的情况是我们其实提供了更多的服务，数字化的产品，其实并不是一个涨价的结果，我们从来也没有去追求一个在线索上漲价去提升业绩。今年呢，我们也看到，这个我们经销商的这个盈利情况确实也是比较困难的，所以今年更，我们更不会是以涨价的这种方式去续约，我们更多的还是会说怎么样去帮助他们。像我们的数字化产品，更多的目的是帮助他们去降本增效。所以整体的话，作为回答你的问题呢，我们并不认为涨价是我们今年或者甚至于过去也是同样的，就是我们并不是要在线索上漲价。 Thank you, Brian, for reading this question. Yes, we already initiated a contract renew with our dealers. However, we will not use price increase as a strategy for us to gain more profit. It has never been our strategy. Of course, sometimes you think that we charge more from the dealers, that is because we have been providing more services to our dealers, including offering more digital products to them. And I think that we never take a price increase as a strategy for us to gain more and higher performance. And this year, as we know, the dealers they generally encounter some difficulties, so we will of course never raise the price. So from our side, we would like to empower and enable the dealers by offering more digital products and helping them to cut costs and improve efficiency. So in a word, in the past and present, we have never been using the price increase as a strategy for us to gain more profits. 至于你提到的经销商数量问题，对于油车来讲的话，今年前三个季度油车的销量，燃油车的销量是差不多下降了9%吧，8点几的这个样子，不到9.1%。 那经销商肯定是会受到影响的。所以如果你单纯地看传统油车的话，经销商的数量，从一个大的方向上肯定是会减少。但同时呢，你也看到我们今天的新能源的这个渗透比已经非常高了，今年第三季度可能已经到了37%的这个样子。所以新能源品牌的这个店呢，也是有了一个飞速的发展，很多新的这个经销商呢，也向新能源开始转型，我们的新零售呢，也是在帮助这个新能源做这个销售。所以总的来说呢，这还是一个非常有活力的市场，因为整体的车销量，我们预计，今年也是2%-3%之间的增长吧，明年也会是一个稳定向好这么个情况。所以总的来说呢，我们是觉得，经销商的数量并不是核心的问题，核心的问题是我们怎么样去适应新能源和这种，这种变化中，怎么样帮助经销商去获得一个新的一个定位。所以在这一点上呢，实际上我们无论从数字化产品，我们从新零售的模式，我们在各个方面都在做这方面的努力。 And the second thing is about the number of the dealers. In your question, in Q3, we see that the sales from the ICE car dealers dropped by a little bit less than 9%. Of course, the dealers are under some impact, and I see that the sales of the ICE vehicles have been declining. However, on the same, at the same time, the NEV penetration has been on a rise, and you can see that in Q3, the penetration already hit 37%. So there are some rapid development trends for the NEV brands, while at the same time some traditional dealers are also transforming themselves into the NEV dealers. So for our new retail business model, we are also trying to help those NEV dealers to, further expand and to, tap deeper into this market, because the market in a whole is very, vigorous. And I believe that the number of dealers itself is not an issue at all. The thing is that how we can better adapt to all kinds of changes and dynamics to reposition those dealers so as to be more adaptable. So by offering those digital products and by, facilitating them with our new retail model, I believe that we can, do a better job in the future. 啊，没有了。 Operator。 Thank you. There are no further questions at this time. I will turn the conference back to management for closing comments. 好，感谢大家参加今天的这个会议，那么我们也期待下次业绩电话会上能够再与大家交流公司的最新发展。那么如果你有任何问题和建议呢，也欢迎随时与我们联系，谢谢。 Thank you, everyone. Thank you for joining us today. Appreciate your support, and we look forward to updating you on our next quarter's conference call in a few months' time. In the meantime, please feel free to contact us if you have any further questions. Thank you, thank you, bye bye. This concludes today's conference call. Thank you for participating. You may now disconnect.