BEIJING, Nov. 18, 2021 /PRNewswire/ -- On the evening
of November 18, 2021 (Beijing Time),
Autohome Inc., a leading online destination for automobile
consumers in China, announced its
unaudited financial results for the third quarter of 2021.
According to the financial report, total revenue reached
1.764 billion yuan (approx.
US$280 million) during the reporting
period, with the proportion of revenue from new businesses
increasing to 32 per cent. The adjusted net profit was 583 million yuan (approx. US$91.3 million) and the adjusted net profit
margin stood at 33.1 per cent. In addition, in view of its greatly
undervalued share price, Autohome's board of directors announced a
plan to repurchase US$200 million
worth of shares in the open market with its own funds over the next
12 months.
Autohome facilitates implementation of its upgraded strategy
via an in-depth collaboration with Ping An Insurance Group's
ecosystem
Autohome announced its new upgraded strategy on September 15, an ecosystem-based strategy
designed to create an integrated service platform for consumers to
view, buy, sell and use vehicles through an in-depth collaboration
between and integration of Autohome and Ping An's ecosystems. With the further
implementation of the upgraded strategy, the firm has achieved
multiple outcomes.
Autohome has developed a strategy which involves investigating
and developing more gameplay models, creating more scenarios and
reaching more consumers with the end goal of meeting the various
expectations of end users. This has resulted in a significant
increase in the proportion of original videos and live content
while facilitating cross-industry collaborations and offline
marketing events, many of which are already in full swing. As of
the end of September, the platform's daily active mobile users had
reached 43.87 million, up 12.3 per cent from the same period of the
prior year, ranking it No.1 in the automotive vertical media
sector.
Thanks to Autohome's efforts in deepening partnerships with
electric vehicle (EV) manufacturers, revenue from EV brands showed
a year on year rise of 104 per cent during the third quarter of
2021, with the number of such brands with which the company has
established relationships growing to 22 during the first three
quarters of the year. In addition, the firm's secondhand car
trading platform, in cooperation with ttpai.cn, an online auction
platform for used vehicles, has continuously increased the average
revenue per vehicle by improving the operating efficiency through a
streamlining of the workflow. Notably, with a comprehensive
enhancement in the quality of leads, data and management
procedures, the customer base of secondhand car merchants expanded
by 77 per cent year on year as of the end of the third quarter.
Benefiting from the content and technology upgrading of its smart
3.0 system, Autohome's product penetration gained 36 per cent on a
year-on-year basis. Moreover, with the launch of a full array of
digital dealer solutions that include 12 products across three key
categories, the number of products purchased by a single dealer
increased from 3.01 to 3.55 on average.
With the upcoming rebound in the Chinese automobile market,
Autohome launches US$200 share
repurchase plan
During the third quarter of the year, with the automotive sector
continuously buffeted by multiple negative factors, including the
lack of chips and rising prices for raw materials, Autohome's
traditional business faced challenges as a result of carmakers
delaying their expectations for capacity recovery and reducing
marketing budgets. Nevertheless, according to industry forecasts,
the market is expected to return to a normal growth rate by the
first quarter of 2022.
Facing increasing pressure from the industry, Autohome is
seeking to achieve breakthrough growth by facilitating the
implementation of its strategies. In addition, given its greatly
undervalued share price, Autohome's board of directors announced a
plan to repurchase US$200 million
worth of shares in the open market with its own funds over the next
12 months. According to Autohome, backed by sufficient capital and
stable profitability, the share repurchase plan demonstrates the
firm's strong confidence in its future growth.
"We firmly believe that the current challenges facing the
automotive sector are temporary and that our media advertising
business will improve once the Chinese auto market gets back on a
growth track," indicated Autohome chairman and CEO Long Quan. "Going forward, Autohome plans to
continue strengthening ties with Ping
An while steadily promoting the growth of the firm's
innovative businesses based on its healthy business model and solid
business foundation in addition to aggressively expanding into new
fields, with the aim of achieving long-term sustainable
growth."
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SOURCE Autohome Inc.