Autohome Inc. Announces Unaudited Second Quarter Ended June 30, 2020 Financial Results

BEIJING,Aug. 25,2020 -- Autohome Inc. (NYSE: ATHM) ("Autohome" or the "Company"),the leading online destination for automobile consumers in China,today announced its unaudited financial results for the second quarter ended June 30,2020.

Second Quarter2020Highlights[1]

Net Revenues in the second quarter of 2020 were RMB2,313.3 million ($327.4 million),in line with the Company's guidance.

Online Marketplace and Others Revenues in the second quarter of 2020 were RMB540.2 million ($76.5 million),which contributed to 23.4% of total revenues,compared to 17.0% in the corresponding period of 2019. Data Products in the online marketplace and other business achieved revenue growth ofclose to 70% year-over-year in the second quarter of 2020.

Net Income attributable to Autohome Inc. in the second quarter of 2020 was RMB824.5 million ($116.7 million),compared to RMB801.9 million for the corresponding period of 2019.

Adjusted Net Income attributable to Autohome Inc. (Non-GAAP)[2] in the second quarter of 2020 was RMB881.0 million ($124.7 million),compared to RMB855.4 million for the corresponding period of 2019.

Mr. Min Lu,Chairman of the Board of Directors and Chief Executive Officer of Autohome,stated,"Autohome is making steady strides in building an open and diversified automotive ecosystem with its unique product matrix and ongoing innovations. To support OEMs' digital transformation,we expanded our offerings beyond project-based services,with annual performance-based comprehensive marketing solutions now available,helping our automaker partners plan and carry out their marketing campaigns more efficiently. Our data products also continued their strong growth momentum on the back of proven effectiveness and further product optimization. Looking forward,we remain focused on expanding the breadth and depth of our offerings while providing customers with highly efficient intelligent services that provide even further value to the automotive industry."

Mr. Jun Zou,Chief Financial Officer of Autohome,added,"Our second-quarter results reflectedsolid progress in executing our key growth strategy. Data products together with auto-financing and transaction businesses,achieved double-digit revenue growth,contributing to strong year-over-year growth of 38% in the online marketplace and others revenues. Core businesses also registered sequential improvements,which indicate the gradual recovery of the auto market. Meanwhile,net margin for the quarter improved on a year-over-year basis as we remained committed to enhancing operating efficiency across the platform. We will continue to explore new growth opportunities while keeping a disciplined cost structure,in order to deliver positive returns for our shareholders in the long run."

[1]The reporting currency of the Company is Renminbi ("RMB"). For the convenience of readers,certain amounts throughout the release

are presented in US dollars ("$"). Unless otherwise noted,all conversions from RMB to US$ are translated at the noon buying rate of

US$1.00 to RMB7.0651 on June 30,2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the

Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been,or could be,converted into

US$ at such rate.

[2] Adjusted net income attributable to Autohome Inc. (Non-GAAP) is defined as net income attributable to Autohome Inc. excluding share-

based compensation expenses and amortization expenses of intangible assets related to acquisitions. For more information on this and

other non-GAAP financial measures,please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned

"Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release.

Unaudited Second Quarter 2020 Financial Results

Net Revenues

Net revenues in the second quarterof 2020 were RMB2,313.3million ($327.4million),compared to RMB2,309.0 million in the corresponding period of 2019.

Media services revenues were RMB932.1 million ($131.9 million),compared to RMB1,028.3 million in the corresponding period of 2019. The decline was primarily due to the decrease in average revenue per automaker advertiser.

Leads generation services revenues were RMB841.0 million ($119.0 million),compared to RMB888.8 million in the corresponding period of 2019. The decline was primarily due to the decrease in the number of paying dealers.

Online marketplace and others revenues increased by 37.8% to RMB540.2 million ($76.5 million) from RMB391.9 million in the corresponding period of 2019. The increase was driven by data products as well as auto-financing and transaction businesses.

Cost of Revenues

Cost of revenues wasRMB265.2 million ($37.5million),compared to RMB263.6million in the corresponding period of 2019. In addition,cost of revenues included share-based compensation expenses of RMB6.2million ($0.9 million) during the second quarterof 2020,compared to RMB4.1 million for the corresponding period of 2019.

Operating Expenses

Operating expenses wereRMB1,281.3 million ($181.4million) in the second quarter of 2020,compared toRMB1,335.3million in the corresponding period of 2019.

Sales and marketing expenses were RMB872.4 million ($123.5 million) in the second quarter of 2020,compared to RMB892.9 million in the corresponding period of 2019. Sales and marketing expenses for the second quarter of 2020 included share-based compensation expenses of RMB9.3 million ($1.3 million),compared to RMB12.9 million in the corresponding period of 2019.

General and administrative expenses were RMB82.5 million ($11.7 million) in the second quarter of 2020,compared to RMB81.8 million in the corresponding period of 2019. General and administrative expenses for the second quarter of 2020 included share-based compensation expenses of RMB15.2 million ($2.1 million),relatively flat compared to the corresponding period of 2019.

Product development expenses were RMB326.4 million ($46.2 million) in the second quarter of 2020,compared to RMB360.6 million in the corresponding period of 2019. Product development expenses for the second quarter of 2020 included share-based compensation expenses of RMB24.8 million ($3.5 million),compared to RMB20.2 million in the corresponding period of 2019.

Operating Profit

Operating profit wasRMB870.7 million ($123.2 million) in the second quarter of 2020,compared to RMB835.3million in the corresponding period of 2019.

Income Tax Expense

Income tax expense was RMB174.4 million ($24.7 million) in the second quarter of 2020,compared to RMB147.3 million in the corresponding period of 2019.

Net Income Attributable to Autohome Inc.and EPS

Net income attributable to Autohome Inc. wasRMB824.5 million ($116.7 million) in the second quarter of 2020,compared to RMB801.9million in the corresponding period of 2019. Basic and diluted earnings per share/per ADS or "EPS"were RMB6.92 ($0.98) and RMB6.89 ($0.97),respectively,compared to basic and diluted EPS of RMB6.77and RMB6.70,in the corresponding period of 2019.

Adjusted Net Income Attributable to Autohome Inc.(Non-GAAP) and Non-GAAP EPS

Adjusted net income attributable to Autohome Inc. (Non-GAAP) was RMB881.0 million ($124.7 million) in the second quarter of 2020,compared to RMB855.4million in the corresponding period of 2019.Non-GAAP basic and diluted EPS were RMB7.39 ($1.05) and RMB7.36 ($1.04),compared to non-GAAP basic and diluted EPS of RMB7.22 and RMB7.15,in the corresponding period of 2019.

Balance Sheet and Cash Flow

As of June 30,2020,the Company had cash and cash equivalents and short-term investments of RMB13.0 billion ($1,843.9 million). Net cash provided by operating activities in the second quarter of 2020 was RMB465.7 million ($65.9 million).

Employees

The Company had 4,006 employees as of June 30,2020.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,240million ($317.1 million) to RMB2,280million ($322.7 million) in the third quarter of fiscal year 2020. This forecast reflects the Company's current and preliminary view on the market and its operating conditions,which are subject to change,particularly as a result of uncertainties surrounding the ongoing COVID-19 pandemic.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday,August 25,2020 (8:00 PM Beijing Time on the same day).

Dial-in details for the earnings conference call are as follows:

United States:

+1-855-824-5644

Hong Kong:

+852-3027-6500

Mainland China:

8009-880-563/400-821-0637

United Kingdom:

0800-026-1542

International:

+1-646-722-4977

Passcode:

22378791#

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until August 31,2020:

United States:

+1-646-982-0473

International:

+61-2-8325-2405

Passcode:

319335127#

Additionally,a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.

About Autohome Inc.

Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides original generated content,professionally generated content,user-generated content,AI-generated content,a comprehensive automobile library,and extensive automobile listing information to automobile consumers,covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further,the Company's dealer subscription and advertising services allow dealers to market their inventory and services through Autohome's platform,extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads,data analysis,and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. Autohome operates its "Autohome Mall," a full-service online transaction platform,to facilitate transactions for automakers and dealers. Further,through its websites and mobile applications,it also provides other value-added services,including auto financing,auto insurance,used car transactions,and aftermarket services. For further information,please visit www.autohome.com.cn.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will","expects","anticipates","future","intends","plans","believes","estimates" and similar statements. Among other things,Autohome's business outlook,Autohome's strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"),in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Autohome's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: Autohome's goals and strategies; Autohome's future business development,results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome's ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome's expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome's filings with the SEC. All information provided in this press release is as of the date of this press release,and Autohome does not undertake any obligation to update any forward-looking statement,except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement net income presented in accordance with U.S. GAAP,we use Adjusted Net Income attributable to Autohome Inc.,Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense/(benefit),depreciation expenses of property and equipment and amortization expenses of intangible assets and share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance,in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance,compare business trends among different reporting periods on a consistent basis and assess our core operating results,as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures,but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP,but should not be considered a substitute for,or superior to,financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures,please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.

For investor and media inquiries,please contact:

In China:

Autohome Inc.

Investor Relations

Anita Chen

Tel: +86-10-5985-7483

Email: ir@autohome.com.cn

The Piacente Group,Inc.

Xi Zhang

Tel: +86-10-6508-0677

E-mail: autohome@tpg-ir.com

In the United States:

The Piacente Group,Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: autohome@tpg-ir.com

AUTOHOME INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands,except per share data)

For three months endedJune 30,

For six months ended June 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net revenues:

Media services

1,028,308

932,078

131,927

1,671,543

1,498,388

212,083

Leads generation services

888,799

841,020

119,039

1,622,886

1,511,479

213,936

Online marketplace and others

391,855

540,170

76,456

626,461

850,030

120,314

Total net revenues

2,308,962

2,313,268

327,422

3,920,890

3,859,897

546,333

Cost of revenues

(263,630)

(265,217)

(37,539)

(448,084)

(443,079)

(62,714)

Gross profit

2,045,332

2,048,051

289,883

3,472,806

3,416,818

483,619

Operating expenses:

Sales and marketing expenses

(892,901)

(872,426)

(123,484)

(1,402,625)

(1,396,647)

(197,683)

General and administrative

expenses

(81,807)

(82,482)

(11,675)

(149,565)

(171,634)

(24,293)

Product development

expenses

(360,603)

(326,385)

(46,197)

(629,176)

(618,323)

(87,518)

Total operating expenses

(1,335,311)

(1,281,293)

(181,356)

(2,181,366)

(2,186,604)

(309,494)

Other income,net

125,239

103,991

14,719

201,277

226,462

32,054

Operating profit

835,260

870,749

123,246

1,492,717

1,456,676

206,179

Interest income

114,206

128,869

18,240

228,427

266,260

37,687

Loss from equity method

investments

(89)

(360)

(51)

(1,671)

(1,815)

(257)

Fair value change of other non-

current assets

-

-

-

(4,026)

(9,116)

(1,290)

Income before income taxes

949,377

999,258

141,435

1,715,447

1,712,005

242,319

Income tax expense

(147,285)

(174,430)

(24,689)

(266,810)

(299,914)

(42,450)

Net income

802,092

824,828

116,746

1,448,637

1,412,091

199,869

Net income attributable to

noncontrolling interests

(213)

(351)

(50)

(449)

(435)

(62)

Net income attributable to

Autohome Inc.

801,879

824,477

116,696

1,188

1,411,656

199,807

Earnings per share for

ordinary share

Basic

6.77

6.92

0.98

12.24

11.85

1.68

Diluted

6.70

6.89

0.97

12.12

11.79

1.67

Weighted average shares used to compute

earnings per share attributable to common

stockholders:

Basic

118,463,582

119,160,448

119,448

118,347,380

119,114,768

119,768

Diluted

119,632,344

119,746,398

119,494,603

119,696,812

119,812

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands,except per share data)

For three months ended June 30,

For six months ended June 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net income attributable to

Autohome Inc.

801,807

Plus: income tax expense

147,285

174,430

24,689

266,810

299,914

42,450

Plus: depreciation of property and

equipment

25,681

38,289

5,419

51,007

70,694

10,006

Plus: amortization of intangible

assets

2,917

2,921

413

5,834

6,151

871

EBITDA

977,762

1,040,117

147,217

1,771,839

1,788,415

253,134

Plus: share-based compensation

expenses

52,397

55,420

7,844

105,584

113,277

16,033

Adjusted EBITDA

1,030,159

1,095,537

155,061

1,877,423

1,901,692

269,167

Net income attributable to

Autohome Inc.

801,879

824,477

116,696

1,188

1,656

199,807

Plus: amortization of acquired

intangible assets of Cheerbright,

China Topside and Norstar

1,139

1,139

161

2,278

2,278

322

Plus: share-based compensation

expenses

52,033

Adjusted net income

attributable to Autohome Inc.

855,415

881,036

124,701

1,556,050

1,527,211

216,162

Non-GAAP earnings per share

for ordinary shares

Basic

7.22

7.39

1.05

13.15

12.82

1.81

Diluted

7.15

7.36

1.04

13.02

12.76

1.81

Weighted average shares used

to compute earnings per

share attributable to common

stockholders:

Basic

118,812

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands,except as noted)

As of December 31,

As of June 30,

2019

2020

RMB

RMB

US$

(Audited)

(Unaudited)

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

1,988,298

2,004,278

283,687

Short-term investments

10,806,812

11,022,952

1,560,198

Accounts receivable,net

3,231,486

2,967,765

420,060

Amounts due from related parties,

current

29,501

36,877

5,220

Prepaid expenses and other current

assets

302,285

517,357

73,227

Total current assets

16,358,382

16,549,229

2,342,392

Non-current assets

Restricted cash,non-current

5,200

5,200

736

Property and equipment,net

281,773

359,799

50,926

Goodwill and intangible assets,net

1,532,024

1,526,772

216,101

Long-term investments

71,664

69,849

9,886

Deferred tax assets

27,782

27,782

3,932

Other non-current assets

879,040

1,093,914

154,833

Total non-current assets

2,797,483

3,083,316

436,414

Total assets

19,155,865

19,545

2,778,806

LIABILITIES AND EQUITY

Current liabilities

Accrued expenses and other payables

2,417,438

2,149,244

304,206

Advance from customers

95,636

91,175

12,905

Deferred revenue

1,370,953

1,084,236

153,464

Income tax payable

45,489

118,349

16,751

Amounts due to related parties

36,387

46,538

6,587

Total current liabilities

3,965,903

3,489,542

493,913

Non-current liabilities

Other liabilities

45,534

106,128

15,021

Deferred tax liabilities

538,487

495,697

70,161

Total non-current liabilities

584,021

601,825

85,182

Total liabilities

4,924

4,091,367

579,095

Equity

Total Autohome Inc. shareholders'

equity

14,629,097

15,563,899

2,202,927

Noncontrolling interests

(23,156)

(22,721)

(3,216)

Total equity

14,605,941

15,541,178

2,199,711

Total liabilities and equity

19,806

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