Autohome Inc. Announces Unaudited 2022 Second Quarter and Interim Financial Results

BEIJING,Aug. 3,2022 -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"),the leading online destination for automobile consumers in China,today announced its unaudited financial results for the three months and six months ended June 30,2022.

Second Quarter2022 Highlights[1]

Net Revenues in thesecondquarter of 2022 were RMB1,733.0 million (US$258.7 million),compared to RMB1,938.0 million in the corresponding period of 2021.

Net Income attributable to Autohome Inc. in the second quarter of 2022 was RMB435.0 million (US$64.9 million),compared to RMB754.9 million inthe corresponding period of 2021,and net income attributable to ordinary shareholders in the second quarter of 2022 was RMB423.4 million (US$63.2 million),compared to RMB746.7 million in the corresponding period of 2021.

Adjusted Net Income attributable to Autohome Inc. (Non-GAAP)[2] in the second quarter of 2022 was RMB472.2 million (US$70.5 million),compared to RMB795.4 million in the corresponding period of 2021.

Share Repurchase: As of July 31,2022,the Company has repurchased 1,883,906 American depositary shares ("ADSs") for a total cost of approximately US$54.2 million.

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

US$1.00 to RMB6.6981 on June 30,2022 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] 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.

Mr. Quan Long,Chairman of the Board of Directors and Chief Executive Officer of Autohome,stated,"We are pleased to report a strong operational and financial performance in the second quarter of2022. Though we faced a rather challenging environment due to the pandemic,Autohome still delivered another solid quarter,clearly demonstrating our business resilience and market-leadingposition. For users,we continued to promote our core IP strategy and differentiate our offerings to provide users with more choices and services,effectively expanding ouruser base as we further diversified content ecosystem. In June 2022,our aggregated average daily users grew by 8.1% year-over-year to 47.63 million,according to QuestMobile,setting a new record high and firmly maintaining our leading position in the auto vertical. For our customers,we proactively built new business operation models in response to the cancellation of local offline auto shows due to the pandemic's resurgence. For example,we added VR functionality to our Intelligent Showroom,helping our customers to expand their user reach. We also normalized online auto shows,providing automakers a platform to promote their localized marketing information. In the first half of the year,we held more than 300 national and local online auto shows,covering over 70 million people throughout China. Moving ahead,we remain committed to enhancing our platform while accelerating new initiatives and deepening synergies with Ping An Group. We look forward togenerating additional long-term value for our users,customers,shareholders and other stakeholders across our comprehensive auto search,purchase and use ecosystem."

Mr. CraigYanZeng,Chief Financial Officer of Autohome,added,"We sustained our strong recovery momentum in the second quarter of 2022 with revenues totaling RMB1.73 billion. Notably,the year-over-year revenue growth for our new energy vehicle ("NEV") business once again significantly outpaced the market. Despite the pandemic,by leveraging our big data and technology capabilities,we enabled our dealer customers to realize contactless sales and marketing with our data products and services,leading to an increase in our product popularity. We are also glad to see that the number of our dealer customers fordata products in the second quarter increased by 14% year-over-year while for the first half of this year,the average revenue per dealer store and the average number of data products adopted by each dealer store rose by 20% and 32% year-over-year,respectively,all exhibiting strong growth trends. Looking to the rest of 2022,with government stimulus packages for auto consumption taking effect and supported by our robustbalance sheet and abundantcash on hand,we are confident that we are well-positioned to capture new opportunities in strategic areas that will contribute to Autohome's future growth."

Unaudited Second Quarter 2022 Financial Results

Net Revenues

Net revenues in the second quarter of 2022were RMB1,938.0 million in the corresponding period of 2021.

Media services revenues were RMB530.6 million (US$79.2 million),compared to RMB599.8million in the corresponding period of 2021. The decline was attributableto the decrease in average revenue per automaker advertiser,which was primarilydue tothe impactofthe COVID-19 pandemic oncertaincitiesinChina in the first half of 2022.

Leads generation services revenueswere RMB752.8 million (US$112.4million),compared to RMB744.0million in the corresponding period of 2021.

Online marketplace and others revenues wereRMB449.6 million (US$67.1 million),compared to RMB594.3million in the corresponding period of 2021. The decrease was primarily attributable to the impactofthe COVID-19 pandemic oncertaincitiesinChina in the first half of 2022.

Cost of Revenues

Cost of revenues wasRMB278.9 million (US$41.6million) in the second quarter of 2022,compared to RMB261.6million in the corresponding period of 2021.The increase was primarily attributable to the continuous investment in content. Share-based compensation expense includedin cost of revenues inthe second quarter of 2022 wasRMB1.3million (US$0.2million),compared to RMB5.1 million in the corresponding period of 2021.

Operating Expenses

Operating expenses wereRMB1,227.5million (US$183.3 million) in the second quarter of 2022,compared toRMB1,073.8 million in the corresponding period of 2021.

Sales and marketingexpenses were RMB738.7 million (US$110.3 million) in the second quarter of 2022,compared to RMB562.4 million in the corresponding period of 2021. The increase was primarily attributable to the escalationofmarketing and promotional spending. Share-based compensation expense includedinsales and marketing expenses inthe second quarter of 2022was RMB5.4 million (US$0.8million),compared to RMB10.8 million in the corresponding period of 2021.

General and administrative expenses were RMB126.6 million (US$18.9 million) in the second quarter of 2022,compared to RMB176.8 million in the corresponding period of 2021. The decrease was primarily attributable to the reduction ofexpected credit losses. Share-based compensation expenseincludedingeneral and administrative expenses inthe second quarter of 2022 wasRMB10.1million (US$1.5 million),compared to RMB10.2million in the corresponding period of 2021.

Product development expenses were RMB362.2 million (US$54.1million) in the second quarter of 2022,compared to RMB334.7 million in the corresponding period of 2021. The increase was primarily attributable to greater investment in research and development activities fordigitalproducts.Share-based compensation expenseincludedinproduct development expenses in the second quarter of 2022 was RMB11.6 million (US$1.7 million),compared to RMB18.8 million in the corresponding period of 2021.

Operating Profit

Operating profit wasRMB301.3 million (US$45.0 million) in the second quarter of 2022,compared to RMB673.0million in the corresponding period of 2021.

Income Tax Expense

There was an income tax expense of RMB34.1 million (US$5.1 million) in the second quarter of 2022,compared to income tax expense of RMB70.2 million in the corresponding period of 2021. The decrease was primarily attributable to the lower profit before income tax.

Net Income attributable to Autohome Inc.

Net income attributable to Autohome Inc. was RMB435.0 million (US$64.9 million)in the second quarter of 2022,compared to RMB754.9 million in the corresponding period of 2021.

Net Income attributable to OrdinaryShareholdersand Earnings per Share/ADS

Net income attributable to ordinary shareholders was RMB423.4 million (US$63.2 million) in the second quarter of 2022,compared to RMB746.7 million in the corresponding period of 2021. Basic and diluted earnings per share ("EPS") were RMB0.85 (US$0.13) and RMB0.84 (US$0.13),in the second quarter of 2022,as compared to basic and diluted EPS of RMB1.48 and RMB1.48,in the corresponding period of 2021. Basic and diluted earnings per ADS were RMB3.38 (US$0.50) and RMB3.38 (US$0.50),in the second quarter of 2022 as compared to basic and diluted earnings per ADS of RMB5.92 and RMB5.91,in the corresponding period of 2021.

Adjusted Net Income attributable to Autohome Inc. (Non-GAAP) and Non-GAAP Earnings per Share/ADS

Adjusted net income attributable to Autohome Inc. (Non-GAAP) was RMB472.2 million (US$70.5 million) in the second quarter of 2022,compared to RMB795.4 million in the corresponding period of 2021.Non-GAAP basic and diluted EPS were RMB0.94 (US$0.14) and RMB0.94 (US$0.14),in the second quarter of 2022 as compared to non-GAAP basic and diluted EPS of RMB1.58 and RMB1.57,in the corresponding period of 2021. Non-GAAP basic and diluted earnings per ADS were RMB3.77 (US$0.56) and RMB3.77 (US$0.56),compared to non-GAAP basic and diluted earnings per ADS of RMB6.31 and RMB6.30,in the corresponding period of 2021.

Balance Sheet and Cash Flow

As of June 30,the Company had cash and cash equivalents and short-term investments of RMB20.94 billion (US$3,125.8 million). Net cash provided by operating activities in the second quarter of 2022 was RMB488.3 million (US$72.9 million).

Employees

The Company had 5,631 employees as of June 30,including 2,075 employees from TTP Car,Inc. ("TTP").

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday,August 3,2022 (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,China:

+852-3027-6500

Mainland China:

8009-880-563/ 400-821-0637

United Kingdom:

0800-026-1542

International:

+1-646-722-4977

Passcode:

41836568#

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 10,2022:

United States:

+1-646-982-0473

International:

+61-2-8325-2405

Passcode:

520002963#

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; HKEX: 2518) is the leading online destination for automobile consumers in China. Its mission is to engage,educate and inform consumers about everything auto. Autohome provides original generated content,professionally generated content,user-generated content,and 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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"),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; relevant government policies and regulatory environment of China; 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 and announcements on the website of the Hong Kong Stock Exchange. 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 earnings per ADS,Adjusted net margin andAdjusted 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,amortization of intangible assets resulting from business acquisition,certain noncontrolling interestsadjustments for TTP (starting in the first quarter of 2021 for the first time,which included interest income related to convertible bond investment to TTP that is eliminated in consolidation),investment loss relating to non-operating impact of a write-down of the initial investment in a financial product,(gain)/loss pickup of equity method investments,and impairment of long-term investments,with all the reconciliation items adjusted for related income tax effects. 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 non-GAAP basic and diluted earnings per ADS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ADSs. We define Adjusted net margin as Adjusted Net Income attributable to Autohome Inc. divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense,depreciation expenses of property and equipment,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 non-cash charges or items that are non-operating in nature. The use of the above non-GAAP financial measures has certain limitations as they excluded certain items that have been and will continue to be incurred in the future,but such items 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

Sterling Song

Investor Relations Director

Tel: +86-10-5985-7483

E-mail: ir@autohome.com.cn

The Piacente Group,Inc.

Jenny Cai

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 DATA

(Amount in thousands,except per share / per ADS data)

For three months ended June 30,

For six months ended June 30,

2021

2022

2021

2022

RMB

RMB

US$

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net revenues:

Media services

599,812

530,561

79,211

1,204,636

797,363

119,043

Leads generation services

743,953

752,813

112,392

1,441,587

1,461,017

218,124

Online marketplace and others

594,278

449,619

67,126

1,133,401

945,905

141,220

Total net revenues

1,938,043

1,732,993

258,729

3,779,624

3,285

478,387

Cost of revenues

(261,587)

(278,864)

(41,633)

(504,710)

(533,881)

(79,706)

Gross profit

1,676,456

1,454,129

217,096

3,274,914

2,670,404

398,681

Operating expenses:

Sales and marketing

expenses

(562,362)

(738,729)

(110,289)

(1,244,995)

(1,330,983)

(198,711)

General and administrative

expenses

(176,782)

(126,616)

(18,903)

(305,407)

(263,178)

(39,291)

Product development

expenses

(334,662)

(362,194)

(54,074)

(639,213)

(717,441)

(107,111

Total operating expenses

(1,073,806)

(1,227,539)

(183,266)

(2,189,615)

(2,311,602)

(345,113)

Other operating income,net

70,337

74,661

11,147

154,322

183,685

27,423

Operating profit

672,987

301,251

44,977

1,239,621

542,487

80,991

Interest and investment

income,net

138,859

149,398

22,305

268,562

240,166

35,856

Gain/(loss) from equity method

investments,net

(763)

5,882

878

(960)

(20,347)

(3,038)

Income before income taxes

811,083

456,531

68,160

1,507,223

762,306

113,809

Income tax expense

(70,216)

(34,108)

(5,092)

(135,249)

(42,148)

(6,293)

Net income

740,867

422,423

63,068

1,371,974

720,158

107,516

Net loss attributable to

noncontrolling interests

14,073

12,593

1,880

87,255

33,106

4,943

Net income attributable to

Autohome Inc.

754,940

435,016

64,948

1,459,229

753,264

112,459

Accretion of mezzanine equity

(29,218)

(33,383)

(4,984)

(356,291)

(64,259)

(9,594)

Accretion attributable to

noncontrolling interests

20,984

21,743

3,246

277,567

41,861

6,250

Net income attributable to

ordinary shareholders

746,706

423,376

63,210

1,380,505

730,866

109,115

Earnings per share for

ordinary share

Basic

1.48

0.85

0.13

2.79

1.45

0.22

Diluted

1.48

0.84

0.13

2.79

1.45

0.22

Earnings per ADS

attributable to ordinary

shareholders (one ADS

equals for four ordinary

shares)

Basic

5.92

3.38

0.50

11.18

5.82

0.87

Diluted

5.91

3.38

0.50

11.15

5.81

0.87

Weighted average shares used to compute

earnings per share attributable to ordinary

shareholders:

Basic

504,293,912

500,420

500,420

493,953,692

502,552,188

502,188

Diluted

505,183,728

501,112,704

501,704

495,253,000

502,882,428

502,428

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands,

2021

2022

2021

2022

RMB

RMB

US$

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net income attributable to

Autohome Inc.

754,946

1,459

Plus: income tax expense

72,198

35,448

5,292

137,231

44,829

6,693

Plus: depreciation of property and

equipment

53,816

57,596

8,599

104,510

114,824

17,143

Plus: amortization of intangible

assets

8,307

10,837

1,618

11,276

21,674

3,236

EBITDA

889,261

538,897

80,455

1,712,246

934,591

139,531

Plus: share-based compensation

expenses

44,966

28,396

4,239

98,803

69,257

10,340

Adjusted EBITDA

934,227

567,293

84,694

1,811,049

1,003,848

149,871

Net income attributable to

Autohome Inc.

754,459

Plus: amortization of intangible assets

resulting from business acquisition

6,444

10,722

1,601

7,583

21,444

3,202

Plus: share-based compensation

expenses

44,340

Plus: investment loss arising from

one of financial products[3]

-

4,021

600

-

58,441

8,725

Plus: (gain)/loss on equity method

investments,net

763

(5,882)

(878)

960

20,347

3,038

Plus: certain noncontrolling interests

adjustments for TTP

(10,826)

-

-

(35,196)

-

-

Plus: impairment of long-term

investments

-

1,696

253

-

1,696

253

Plus: tax effects of the

adjustments

(931)

(1,746)

(261)

(968)

(14,693)

(2,194)

Adjusted net income

attributable to Autohome Inc.

795,356

472,223

70,500

1,530,411

909,756

135,823

Net income attributable to

Autohome Inc.

754,459

Net margin

39.0%

25.1%

25.1%

38.6%

23.5%

23.5%

Adjusted net income

attributable to Autohome Inc.

795,823

Adjusted net margin

41.0%

27.2%

27.2%

40.5%

28.4%

28.4%

Non-GAAP earnings per share

Basic

1.58

0.94

0.14

3.10

1.81

0.27

Diluted

1.57

0.94

0.14

3.09

1.81

0.27

Non-GAAP earnings per ADS

(one ADS equals for four

ordinary shares)

Basic

6.31

3.77

0.56

12.39

7.24

1.08

Diluted

6.30

3.77

0.56

12.36

7.24

1.08

Weighted average shares used

to compute non-GAAP

earnings per share:

Basic

504,428

[3] It represented the investment loss of an overdue financial product in the second quarter and first half of 2022,which was recognized at

"interest and investment income,net". The impact was considered to be not directly related to the Company's operating activities.

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands,except as noted)

As of

December 31,

As of June 30,

2021

2022

RMB

RMB

US$

(Audited)

(Unaudited)

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

4,236,501

3,851,719

575,047

Restricted Cash

89,855

9,175

1,370

Short-term investments

16,496,267

17,085,149

2,550,746

Accounts receivable,net

2,139,471

1,444,055

215,592

Amounts due from related parties,current

83,376

45,529

6,797

Prepaid expenses and other current assets

280,248

431,000

64,347

Total current assets

23,325,718

22,866,627

3,413,899

Non-current assets

Restricted cash,non-current

5,200

5,200

776

Property and equipment,net

381,496

305,036

45,541

Goodwill and intangible assets,net

4,428,822

4,389,280

655,302

Long-term investments

70,720

448,677

66,986

Deferred tax assets

176,138

173,414

25,890

Amounts due from related parties,non-current

7,529

14,182

2,117

Other non-current assets

133,383

151,367

22,598

Total non-current assets

5,203,288

5,487,156

819,210

Total assets

28,529,006

28,353,783

4,233,109

LIABILITIES AND EQUITY

Current liabilities

Accrued expenses and other payables

2,044,597

1,962,191

292,946

Advance from customers

123,370

97,537

14,562

Deferred revenue

1,553,013

1,556

190,286

Income tax payable

233,342

163,922

24,473

Amounts due to related parties

31,897

26,838

4,007

Total current liabilities

3,986,219

3,525,044

526,274

Non-current liabilities

Other liabilities

28,619

52,300

7,810

Deferred tax liabilities

576,798

518,548

77,417

Total non-current liabilities

605,417

570,848

85,227

Total liabilities

4,591,636

4,095,892

611,501

MEZZANINE EQUITY

Convertible redeemable noncontrolling interests

1,468,029

1,532,287

228,764

EQUITY

Total Autohome Inc. shareholders' equity

22,754,419

23,878

3,446,631

Noncontrolling interests

(285,078)

(360,274)

(53,787)

Total equity

22,469,341

22,725,604

3,392,844

Total liabilities,mezzanine equity and equity

28,109

View original content:https://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-2022-second-quarter-and-interim-financial-results-301598789.html