Ladies and gentlemen, thank you for standing by for Autohome's first quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow management's prepared remarks. As a reminder, this conference call is being recorded. If you have any objections, please disconnect at this time. A live and archived webcast of today's call will be available on Autohome's IR website. It is now my pleasure to introduce your host, Sterling Song, Autohome's IR director. Mr. Song, please go ahead. Thank you, operator. Hello, everyone, and welcome to Autohome's first 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 on today's call is our Chief Financial Officer, Mr. Craig Yan Zeng. Management will go through the prepared remarks first, which will be followed by a Q&A session where they will be available to answer your questions. Before we begin, please note that today's discussion contains forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. Autohome undertakes no obligation to update any forward-looking statements except as required under applicable laws. Please also know that Autohome's earnings press release and today's conference call include discussions of certain audited non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. I will now turn the call over to Autohome Chief Financial Officer, Mr. Craig Yan Zeng, for opening remarks. Craig, please go ahead. [Non-English content] Thank you, Sterling. Hello, everyone. This is Craig Zeng. Thank you for joining our earnings conference call today. [Non-English content] We began the year by rolling out a series of initiatives to accelerate the transformation of our platform from an automotive information media into a comprehensive automotive service ecosystem. On the user front, we've initiated a major brand refresh and APP upgrade, shifting our focus towards users' interests and the end-to-end car purchase journey to more precisely address consumers' demands. By strengthening the development of premium content and expanding our new media matrix, we continue to grow our user base steadily, with average mobile daily active users surpassing 80 million, a new all-time high. With regards to our transaction platform development, our new retail business launched an online car purchase feature and began piloting collaborative initiatives with multiple dealers to explore new automotive e-commerce experiences. We also continue to advance our global expansion. YesAuto, our overseas platform, also went live. Together, officially launched operations in Thailand, and our global cross-border used car export platform also went live. Together, these advancements mark the beginning of a new development phase for Autohome, characterized by a two-circulation model spanning both domestic and international markets. [Non-English content] As our front-end business continues to expand, we are strengthening our core platform capabilities in parallel. AI and large language models are increasingly becoming a foundational pillar of our infrastructure. On the external services front, we provide our partners with an AI-powered intelligent product mix. On the internal operations front, we've already integrated large language model capabilities into the company's workflow. As a result, AI-driven platform operations are rapidly advancing from isolated efficiency gains to end-to-end systematic transformation. [Non-English content] Specifically, in March of this year, our overseas content platform YesAuto officially launched operations in Thailand, expanding our professional strength into international markets. With a focus on localized operations, the platform has onboarded local creators and established a professional content system. To date, it covers 100 Chinese new energy vehicle model series and includes more than 10,000 product specifications, laying the groundwork for a China NEV database in Thailand. Leveraging the momentum of the Bangkok International Motor Show, we partnered with six Chinese automotive brands and 12 media outlets to execute integrated communication campaigns and build a diverse topic matrix. This campaign generated over 140 million views and over 530,000 user interactions across platforms, giving us a strong start in our first overseas market and creating new opportunities to support the long-term diversified development of our business. [Non-English content] In terms of MCN development, in the first quarter, Autohome Media MCN ecosystem improved in both quantity and quality. The number of premium creators across various fields exceeded 650, and cumulative reach across new media platforms approached 150 million users. The share of top-tier and middle-tier influencers increased significantly, and further enhancing the overall health of the ecosystem. Through various approaches including holiday-themed marketing campaigns, creator incentives, deep engagement at offline exhibitions, professional driver incubation, and the development of an overseas influencer ecosystem, etc., we are comprehensively building our differentiated content competitiveness. According to QuestMobile, Autohome's average mobile DAUs reached 80.73 million in March, representing a year-over-year increase of 4.9% [Non-English content] In the new energy vehicle sector, we continue to focus on Autohome Mall as we build a new transaction ecosystem for the automotive industry. In late April, we launched the online car purchase feature in two cities: Shenzhen and Xi'an. Local partner dealerships posted competitive local pricing on the Mall, enabling users to complete the entire car purchasing process in one go, including online vehicle selection, configuration, and deposit payments. Users can then sign the contract offline and pay the remaining balance before taking delivery. To streamline the car purchasing process and address user concerns, we introduced four [key quarantine surface, official 35 vehicles sources, MCN supervision farm]. [Non-English content] In the area of AI and large language models, we are leveraging AI and large language models to reshape the entire workflow of our platform's content center, from tracking trending hot topics across the internet to content distribution. Through an AI-powered smart radar, we continuously monitor online trends around the clock. Combined with large language model-assisted content packaging and AIGC-enabled automated content generation, we've effectively integrated professional automotive topics with broader public hot topics, establishing a highly efficient rapid response mechanism. As a result, we have improved content relevance while significantly enhancing operational efficiency. In addition, we have applied both the reverse funnel model and the intelligent distribution model to our membership business. The reverse funnel model works by reasoning backwards from transactions to derive accurate user profiles and extract the key characteristics of these users, improving alignment between platform content and high conversion user needs. The intelligent distribution model breaks through the limitations of isolated platform data by integrating multi-dimensional inputs such as omni-channel user behavior, scenario preferences, and transaction attribution data. This enables smarter, more precise traffic matching as well as more effective user targeting and reach. [Non-English content] In the used car business, during the first quarter, we launched two core business platforms: a full-process used car selling service platform and a cross-border used car export service platform. Together, they form a dual-engine model of improving quality and efficiency in domestic services while expanding into global markets. These platforms provide individual car owners, domestic dealers, and overseas buyers with one-stop integrated solutions, helping the industry move into a new stage of high-quality development defined by efficiency, transparency, and security. Our full-process used car selling service platform offers free official inspections, dedicated full-stack services, and nationwide price inquiry capabilities. Through deep integration of our underlying digital systems, we've established a standardized service system that covers the entire lifecycle of a car owner's selling journey. The platform is currently in pilot operation in two cities, and we plan to accelerate the rollout to more cities nationwide. Our cross-border used car export service platform represents our initial effort towards capturing growth opportunities in overseas markets. It enables dealers to list vehicles on both domestic and international platforms with a single click. Each exported vehicle includes a detailed inspection report and a complete maintenance and insurance record. These standardized services help address overseas buyers' concerns and reduce the trust gap associated with cross-border transactions. Going forward, we will introduce more vehicle sourcing partners to further enrich the supply of export-qualified vehicles. We also plan to build an end-to-end closed-loop system that integrates domestic vehicle sourcing and aggregation, cross-border transaction matching, and overseas delivery fulfillment, enabling used car dealers to execute compliant cross-border exports with no barriers. [Non-English content] Overall, since the beginning of 2026, we've been actively advancing new initiatives and strategic deployments across multiple business areas, including our content ecosystem, new retail, and the used car businesses. While driving business development, we've maintained a healthy balance sheet and continue to deliver on our commitment to providing stable shareholder returns. Today, our board of directors approved a cash dividend plan for the first half of 2026, and we have been actively executing share repurchases in the open market. Looking ahead, we will remain focused on emerging growth areas while maintaining stringent cost controls to ensure long-term value for our shareholders. [Non-English content] With that, let me briefly walk you through the key financials for the first quarter of 2026. Please note that I will reference RMB only in my discussion today unless otherwise stated. [Non-English content] Net revenues for the first quarter were RMB 1.05 billion. To break it down further, media services revenues were RMB 163 million, lead generation services revenues were RMB 503 million, and online marketplace and others revenues were RMB 382 million. [Non-English content] With respect to cost of revenues in the first quarter was RMB 257 million compared with RMB 316 million in the first quarter of 2025. Gross margin in the first quarter was 75.5% compared with 78.3% in the same period last year. [Non-English content] Turning to operating expenses, sales and marketing expenses in the first quarter were RMB 506 million compared with RMB 544 million in the first quarter of 2025. Product and development expenses were RMB 274 million, flat year-over-year. General and administrative expenses were RMB 120 million compared with RMB 131 million in the same period last year. [Non-English content] Ladies and gentlemen, please remain on the line. Your conference will resume shortly. [Non-English content] [Non-English content] Non-GAAP basic and diluted earnings per share in the first quarter were both RMB 0.39, compared with RMB 0.18 for both in the comparable period of 2025. Non-GAAP basic and diluted earnings per ADS in the first quarter were RMB 1.55 and RMB 1.54 respectively, compared with RMB 3.64 and RMB 3.52 respectively in the comparable period of 2025. [Non-English content] As of March 31st, 2026, our balance sheet remained robust. Cash, cash equivalents, short-term investments, and other long-term investments totaled RMB 20.04 billion. Net cash used in operating activities was RMB 143 million in the first quarter of 2026. [Non-English content] On March 5th, 2026, our board of directors authorized a share repurchase program under which we are committed to repurchase up to $200 million of Autohome ADS over a period not exceeding 18 months. As of May 22nd, 2026, We repurchased approximately 3.47 million ADS for a total cost of approximately $62.3 million. [Non-English content] In addition, in accordance with our dividend policy, our board of directors approved a per ADS or $0.65 for ordinary share payable in US dollars to holders of ADS and ordinary shares of record as of the close of business on July 2nd, 2026. The aggregate amount of the dividends will be approximately RMB 0.5 billion and expected to be paid to holders of the Company's ordinary shares and ADS on or around July 24th, 2026 and July 31st, 2026 respectively. [Non-English content] That concludes our financial summaries. Now we are ready to open up the Q&A session. Operator, please open the line for the Q&A session. Thank you. Thank you. We will now begin the question-and-answer session. Our first question comes from the line of Thomas Chong of Jefferies. Please ask your question Thomas, your line is open. [Non-English content] Good evening. Thanks management for taking my question. My first question is about the industry trend. We have seen auto industry is a bit soft in Q1. Can management provide more color about your thoughts about the auto industry outlook? My second question is about Autohome and Haier. Can management comment about the updates regarding the synergies? Thank you. [Non-English content] Thank you for your question. As you mentioned, in China, the auto market weakened in the first quarter this year. Retail sales of passenger vehicles declined 17% year-over-year, while NEV sales declined 21% year-over-year. It is the first quarter in history where NEV sales recorded a year-over-year decline in the past, the first time. In April this year, retail sales for both passenger vehicles and NEVs both continued to fall further, declining 22% and 7% respectively compared to the same period in 2025. This is the result of multiple pressures converging from government policy, industry conditions, as well as consumer demand. [Non-English content] The faster government policy adjustment and the pulling forward of consumer demand, it's the core reason, main reason behind the sales decline. As you know, the policy exempting the new energy vehicle from purchase tax expired at the end of December last year. This policy expiration really caused consumers to bring forward their car purchases. We saw NEV retail sales reach nearly 1.34 million units in December last year alone. This is a record high in history. This also directly puts forward part of the demand that would otherwise have appeared in the first quarter this year. [Non-English content] Since the beginning of 2026, as you know, the government subsidies have been scaled back. The policy-driven boost to demand weakened. At the same time, the overall consumer confidence still remains relatively cautious in Q1. This further dampens consumers' willingness to purchase vehicles. In addition, the auto market in the first quarter last year was a period of cyclical recovery, so it creates a relatively high base for comparison. The combination of a tougher year-over-year comparison last year and softer demand this year underscores the market pressures seen in the first quarter. It formed the primary backdrop for the short-term decline in auto sales. [Non-English content] From an industry perspective, we can see the overcapacity in the auto sector further exacerbated the market pressure and reinforced consumers' wait and see attitude. On one hand, dealer inventory still remain at high level. Since the beginning of this year, the dealer inventory warning index has stayed above the caution threshold for several months already. It increased the pressure on dealers' cash flows. The dealers' losses spread further. In order to recover capital, dealers have increased their discounts. This drives the prices lower. In this way, it has strengthened our consumers' expectations that the auto prices will continue to fall down. It's further lessening the purchasing decision cycle and slowing the transaction conversion. [Non-English content] On the other hand, operating pressures on major OEMs also continue to spread. Among the top 10 OEMs in the first quarter this year, nine of them reported year-over-year sales declines. We also observed that the profit margin for the China auto manufacturing industry fell to just 3.2% for three months this year. This is a record low in history, and it is further declining from 4.1% compared with last year. This really reflects the widespread reality facing the whole industry. The OEMs are relying on pricing cuts to drive sales volumes, while both prices and volumes are simultaneously under great pressure. [Non-English content] Another point is that, in the future export, auto exports will serve as a key stabilizing force for the auto industry. According to the data from CPCA, China Passenger Car Association, China exported a cumulative 1.83 million vehicles in the first quarter this year, which is a year-over-year growth of 61%. EV exports continue to account for a large percentage, significantly a high share. It remains as the core growth driver in overseas expansion. [Non-English content] About the synergies and collaboration with Haier Group, the transaction has completed more than six months. The current collaboration is still focused on synergies execution in the used car business and offline services scenario, etc. [Non-English content] For CARtech, its used car business has been developing for so many years with a presence across multiple cities nationwide in China, and it has extensive experience in integrated online to offline operations and dealership store management, et cetera. [Non-English content] For Haier Group, it also brings us expertise in consumer service systems and management models, which are all areas for collaboration and knowledge sharing for us. [Non-English content] For example, our new retail business has already begun cooperation with CARtech in the used car segment, including the vehicle sourcing and vehicle inspection processes. CARtech's vehicle customization and the charging port, charging station business have also created synergistic opportunities with that. Going forward in the future, we plan to continue deepening and expanding cooperation in the above areas. Thank you. Thank you. We will now take our next question from Brian Gong of Citi. Please ask your question, Brian. Your line is open. [Non-English content] Thanks management for taking my questions. I have two questions. First is that, can management share the feedback from dealers during the contract renewal period this year? Should we expect continuous decline on sales lead business given dealers worsening conditions? Secondly, for new retail business, what is our strategies for expansion now? Does this business approaches the phase that we can scale up very quickly? How should we view its growth potentials ahead? Thank you. [Non-English content] Thank you for your question. At present, for the dealer membership renewal, this has been completed this year. Overall, the dealer customer coverage still remains at a stable level even though there is ongoing price wars in the auto market and there are shrinking margins at the retail level. It really brings a lot of high inventory pressure for most of the dealers. For most of the dealers, they adopted a more conservative operating approach, and the loss-making coverage in the dealer segment has widened, and the profitability pressure still remains at a high level in the retail end for the dealers. [Non-English content] Despite there is a pressure on the overall vehicle sales, for dealers, their demand for high-quality sales leads still continue to increase. Autohome still remains one of the most important customer acquisition channels for dealer customers. On the membership services side, we are improving the traffic matching accuracy and distribution efficiency through the data-driven reverse funnel model and the intelligent distribution model. [Non-English content] Going forward, Autohome will continue to work closely with the dealer customers to further explore solutions which can help them to break through the current operation challenges for the dealer customers. We aim to support dealerships in increasing the customer traffic and improving the conversion rate, while also trying to expand the integrated O2O business initiative. Our goal is to help dealer customers improve their revenues and profitability while mitigating as much as possible the operational impact caused by the broader auto industry downturn. [Non-English content] For our new retail business, we are still currently exploring to reach allowing local dealer customers to join our network, which is the Autohome Mall platform, and display dealer vehicle inventory and the final transaction pricing online. This model is just quite similar to Taobao marketplace model. Through cooperation with such dealers, we are able to provide users with a seamless O2O online-to-offline one-stop vehicle purchasing experience, which can cover the entire process from the online vehicle selection, browsing, personalized configuration, to online deposit payment, and to millions offline vehicle delivery and pickup. Our target is to create an e-commerce like auto transaction platform, which can deliver an efficient, user-friendly experience for our customers. At present, we are piloting this model, online car purchasing model in two cities, Xi'an and Shenzhen, so far so good. Once this model has been fully upgraded and validated, we will further expand it into other additional cities. Thank you. Thank you. We will now take our next question from the line of Jing Yuan from CICC. Please ask your question. Jing, your line is open. [Non-English content] Thanks for management taking my question. I wonder what's the company's future plan for shareholder returns going forward. Thanks. [Non-English content] Thank you for your question. As we said, we will continue to implement our commitment for shareholder returns. Today, our board of directors announced the interim cash dividend plan of RMB 500 million for the first half of this year, and we will continue to fulfill our commitment for the full year cash dividend of no less than RMB 1.5 billion. Regardless of the fluctuations in the auto industry, we will consistently place strong emphasis on the shareholder returns, and we will maintain continuity and stability in our dividend policy. [Non-English content] For the share buyback, our new share buyback program was ratified in March by the board. Until today it's almost three months. So far, we have completed roughly one third of the authorized share repurchase amount. It really reflects our determined attitude and execution. [Non-English content] You know, we have for Autohome, we have been consistently prioritized shareholder returns and we established our shareholder return framework, including the cash dividend plus the share buyback. Going forward, we will continue to adhere to our comprehensive shareholder return policy in the future. Thank you. We will now take our next question from the line of Ritchie Sun of HSBC. Please go ahead. Ritchie, your line is open. [Non-English content] Thank you management for taking my question. I want to ask about the Autohome Mall business progress. Any metrics to share and the second half outlook? Thank you. [Non-English content] Thank you for your question. For detailed numbers, it is still too early at the moment. For our Autohome Mall, our target is try to provide our users with more standardized new cars, certified used car products and multiple platform level safeguards. For example, for the new standard vehicles, we aggregate the best-value models from major brands and offer exclusive benefits as well as other transparent final pricing. It can address key user pain points such as the difficulty in the price comparison and customer concerns about overpaying. For the high quality used cars, we can rely on our deep cooperation with CARtech to establish a unified inspection and warranty system. [Non-English content]。 For the online auto industry, the overall business model is still not very clear, but we firmly trust that this is the right direction for the whole industry. From our point of view, we do expect that both the new car and the used car transaction business will become a new engine for Autohome's future growth. This is our deep understanding for the future of the industry. Thank you. Thank you. There are no further questions at this time. I'll turn the call back to management for closing remarks. [Non-English content] Thank you everyone. Thank you very much for joining the call today. We appreciate your continued 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 or comments. Thank you very much. Goodbye. Thank you. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your line.