You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” and elsewhere in this annual report. A.Operating Results Overview We are the leading online destination for automobile consumers in mainland China, ranking first among automotive service platforms in China in terms of mobile daily active users as of December 31, 2025, according to QuestMobile. Through our three websites, autohome.com.cn, che168.com and ttpai.cn, accessible mainly through PCs, mobile devices, our mobile applications and mini apps, we deliver comprehensive, independent and interactive content and tools to automobile consumers as well as a full suite of services to automakers and dealers across the auto value chain. We generate revenues from media services, leads generation services and online marketplace and others. •Media services: Through our media services, we provide automakers with targeted-marketing solutions in connection with brand promotion, new model release and sales promotion. Our large and engaged user base of automobile consumers provides a broad reach for automakers’ marketing messages. •Leads generation service: Our leads generation services enable our dealer subscribers to create their own online stores, list pricing and promotional information, provide dealer contact information, place advertisements and manage customer relationships to help them reach a broad set of potential customers and effectively market their automobiles to consumers online and ultimately generate sales leads. Our leads generation services also include used car listing services, which provide a user interface that allows potential used car buyers to identify suitable listings and contact the relevant sellers. •Online marketplace and others: While we continue to strengthen our media and leads generation services, we are also further developing our online marketplace and other businesses. These businesses focus on providing facilitation services for new and used vehicles transactions and other platform-based services for new and used car buyers and sellers. Through our auto financing business, we provide services to our cooperative financial institutions that involve facilitating the sale of their loans and insurance products to consumers and used automobile sellers. From the end of 2017, we began offering data products, which leverage our intelligent big data analytics capabilities and massive pool of accumulated user data to provide end-to-end data- driven products and solutions for automakers and dealers across different stages of the value chain. We believe the breadth and depth of these products and solutions on our platform will allow us to build a robust and technology-driven automotive ecosystem that covers all aspects of the automobile ownership life cycle. We establish a network of franchised offline stores and expand our involvement in vehicle sales. We also provide comprehensive auto-related services to our users by integrating TTP’s offline vehicle examination, ownership transfer services and other ancillary services with our online services. Our net revenues decreased by 2.0% from RMB7,184.1 million in 2023 to RMB7,039.6 million in 2024, and decreased by 8.3% from RMB7,039.6 million in 2024 to RMB6,452.0 million (US$922.6 million) in 2025. Our net income attributable to Autohome Inc decreased by 13.1% from RMB1,935.3 million in 2023 to RMB1,681.1 million in 2024, and decreased by 14.2% from RMB1,681.1 million in 2024 to RMB1,442.8 million (US$206.3 million) in 2025. General Factors Affecting Our Results of Operations Our business and results of operations are significantly affected by mainland China’s overall economic conditions and the general trends in the automotive industry, especially automobile sales in mainland China and the 106 sales and marketing budgets of automakers and dealers. Economic growth in mainland China has contributed to an increase in household disposable income and improved the availability of financing for automobile purchases. With the support of government policies and the ease of the COVID-19 pandemic situation, the automotive industry showed a recovery since 2022, driven by the NEV sales growth. The ICE sales volume, however, experienced continuous decline while most of our revenues come from ICE automakers. In addition, our business is subject to the overall advertising expenditures by automakers and automobile dealers, the development of online advertising industry in mainland China and the market acceptance of online advertising and promotion. Our results of operations can also be significantly impacted by our ability to minimize costs and maximize efficiency in our operations. In addition, our business and results of operations may be affected by our user reach, the level of user experience and engagement. Automakers and dealers, which contribute a substantial portion of our revenues, choose to advertise on our websites and mobile applications in significant part because of our leading market position in the online automotive advertising industry and the rich, diverse and customized content on our websites and mobile applications. Also, effective marketing and promotion activities we conduct are critical for us to maintain and enhance our brand recognition and attract more traffic to our platform. We anticipate that our ability to maintain a large user base while delivering superior user engagement and experience will affect our ability to attract new advertisers and dealer subscribers, which will ultimately impact our ability to generate leads and transactions. Finally, our business and results of operations may be affected by the development of e-commerce in mainland China and consumers’ acceptance of online automobile purchases. Key Income Statement Line Items and Specific Factors Affecting Our Results of Operations While our business and results of operations are generally affected by the factors detailed above, our results of operations are more directly affected by specific financial factors such as the ones described below. Net Revenues We currently generate our net revenues from media services, leads generation services, online marketplace and others. Media services mainly include automaker advertising services and regional marketing campaigns conducted by certain automobile brands’ regional offices. We sell our advertising services primarily to automakers and dealers through third-party advertising agencies, with automakers contributing a substantial majority of our advertising services revenues. We offer rebates to advertising agencies who represent automakers and automobile dealers that place advertisements on our platform. Our net revenues are presented net of rebates to advertising agencies. We generate revenues from leads generation services through dealer subscription services, advertising services sold to individual dealer advertisers and used car listing services. We sell our dealer subscription services to automobile dealers mainly on a fixed-fee subscription basis, with fee rates that depend on the length and version of the subscription, and the cities where the automobile dealers are located. We also generate revenues from online marketplace and others, which consist of data products, new and used vehicle transactions, auto financing and others. For data products, we provide end-to-end data-driven products and solutions for automakers and dealers. For new and used vehicle transactions and auto financing business, we provide services such as transaction facilitation, transaction-oriented marketing solutions, sales leads, loan facilitation and insurance brokerage services. For vehicle sales, we sell vehicles to the franchised offline stores and individual customers. The service fees are recognized when the services are provided, sales leads are delivered or upon the successful of transaction facilitation, or over the service period of data-driven products and solutions by automakers and dealers, and control of the vehicles is transferred to the customers with acceptance reports. 107 The following table sets forth the principal components of our net revenues in absolute amounts and as percentages of our total net revenues for the years presented: For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) Net revenues: Media services 1,870,819 26.0 1,523,075 21.6 1,153,419 164,937 17.9 Leads generation services 3,111,805 43.4 3,135,885 44.6 2,709,235 387,415 42.0 Online marketplace and others 2,201,511 30.6 2,380,627 33.8 2,589,376 370,276 40.1 Total net revenues 7,184,135 100.0 7,039,587 100.0 6,452,030 922,628 100.0 Media Services Revenues We generate media services revenues primarily from automaker advertising services and regional marketing campaigns conducted by certain automobile brands’ regional offices. In 2023, 2024 and 2025, 96, 101 and 96 automakers operating in mainland China, respectively, purchased media services from us directly or through third-party advertising agencies. We primarily use a “cost per day” pricing model to price our online advertising services by charging advertisers on a daily basis for an advertisement placed in a given location on our websites and mobile applications. As we continue to grow our user base and enhance user engagement, we have set up “cost per thousand impressions,” “cost per click” and other performance-based pricing models. These initiatives have already begun to generate revenues, but the amount was relatively insignificant compared to the revenues generated from the “cost per day” pricing model. We will continue to leverage a combination of the following to attract spending by automakers on our websites and mobile applications: (i) our ability to increase advertising volume, either due to (a) higher sell-through rates, which is calculated as the percentage of advertising locations actually sold over total advertising locations available for sale in a given period, or (b) the increased volume contribution from our mobile websites and applications; (ii) our ability to increase our pricing, as measured by price per location per day, as our user reach continues to expand, and we continue to enhance the effectiveness of the services we offer and build automakers’ increasing awareness of our platform; and (iii) our ability to constantly provide more diversified and optimized portfolio of product offerings. Leads Generation Services Revenues We generate leads generation services revenues through (i) dealer subscription services, (ii) advertising services sold to individual dealer advertisers, and (iii) used car listing services. Our dealer subscribers are dealers that have purchased subscription packages which are delivered through our dealership information system. We provide our dealer subscribers with additional tools and features to enable them to more effectively market their inventories on our websites and mobile applications. Our used car listing services primarily consist of listing and display of used vehicles and generation of sales leads to dealers through our platform. We provided leads generation services to 24,248, 24,900 and 23,540 dealers in 2023, 2024 and 2025, respectively. Our leads generation services revenues accounted for 43.4%, 44.6% and 42.0% of our net revenues in 2023, 2024 and 2025, respectively. We will continue to enhance our ability to (i) increase the penetration rate of high-end subscription packages; (ii) provide more diversified and upgraded value-added services to our dealer customers, leveraging our capabilities of connecting dealers with our large user base; and (iii) ultimately increase the average revenue contribution per dealer. Online Marketplace and Others Revenues We generate revenues from online marketplace and others through our data products, new and used vehicle transaction platform, auto financing services and others. Our data products leverage our intelligent big data analytics capabilities and massive pool of accumulated user data to provide end-to-end data-driven products and solutions for automakers and dealers across different stages of the value chain. For new vehicles, our transaction business currently focuses on platform-based services including facilitating transactions, providing transaction-oriented marketing solutions and other platform-based services. For used vehicles, our transaction platform functions as a 108 transaction system, which connects automobile buyers and used automobile sellers and facilitates their vehicle transactions on our platform through providing a wide range of auto related services, such as online bidding services and valuation tools. For our auto financing business, based on users’ preferences and our big data analysis, we recommend a broad range of loans and insurance products offered by our cooperative financial institutions to our users who have auto financing needs and we match them with these financial institutions to facilitate transactions. We have also introduced merchant loans offered by our cooperative financial institutions to automobile sellers. As a result of our acquisition of Shanghai Tianhe in 2017, we currently facilitate the transactions of insurance products between consumers and our cooperative insurance business partner as an insurance brokerage service provider. We establish a network of franchised offline stores and expand our involvement in vehicle sales. We also provide comprehensive auto-related services to our users by integrating TTP’s offline vehicle examination, ownership transfer services and other ancillary services with our online services. Our revenues from online marketplace and others accounted for 30.6%, 33.8% and 40.1% of our net revenues in 2023, 2024 and 2025, respectively. Going forward, we will explore diversified business models and opportunities to build a robust and comprehensive e-commerce platform and continue to develop our transaction system and data products businesses. Cost of Revenues Cost of revenues refers primarily to (i) operational costs, (ii) content costs, (iii) bandwidth and internet data center (“IDC”) costs and (iv) tax surcharges. The following table sets forth the principal components of our cost of revenues in absolute amounts and as a percentage of our total net revenues for the years indicated: For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) Cost of revenues: Operational costs (1) 696,197 9.7 922,604 13.1 1,307,021 186,902 20.2 Content costs 396,502 5.5 246,348 3.5 199,958 28,594 3.1 Bandwidth and IDC costs 110,508 1.5 122,181 1.8 112,924 16,148 1.8 Tax surcharges 95,147 1.3 85,345 1.2 67,548 9,659 1.0 Others 113,527 1.7 106,742 1.5 96,380 13,781 1.5 Total cost of revenues 1,411,881 19.7 1,483,220 21.1 1,783,831 255,084 27.6 Note: (1)Including share-based compensation expenses of RMB8.0 million for 2023, RMB 8.1 million for 2024, and RMB14.8 million (US$2.1 million) for 2025. Operational Costs Operational costs consist of costs for our revenue-generating business activities and maintaining our business operations, including the transaction fees incurred on our platform, execution costs of service contracts, salaries and benefits, and share-based compensation expenses of related employees. Content Costs Content costs consist of costs for creating and editing the originally-generated content, organizing and maintaining user-generated content on our websites and mobile applications, and purchasing professionally-generated content displayed on our websites and mobile applications. Bandwidth and IDC Costs Bandwidth and IDC costs consist of fees that we pay to telecommunication carriers and other service providers for telecommunication services and for hosting our servers at their internet data centers, as well as fees we pay to our content delivery network service provider for the distribution of our content. 109 Tax Surcharges Our tax surcharges primarily consist of cultural development fees charged for our advertising services, construction and maintenance tax and education surcharges. Our overall tax surcharges as a percentage of our total net revenues was 1.3% in 2023, 1.2% in 2024 and 1.0% in 2025. Others Others mainly include depreciation and amortization expenses, telecommunication charges, and miscellaneous charges such as travel and office expenses of our editorial and operation personnel. Operating Expenses Our operating expenses consist of sales and marketing expenses, general and administrative expenses and product development expenses. The following table sets forth our operating expenses in absolute amounts and as percentages of our total net revenues for the years indicated: For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) Operating expenses Sales and marketing expenses(1) 3,012,479 41.9 2,988,169 42.4 2,532,667 362,167 39.3 General and administrative expenses(2) 537,979 7.5 534,809 7.6 504,013 72,072 7.8 Product development expenses(3) 1,348,472 18.8 1,318,443 18.7 1,063,746 152,114 16.5 Total operating expenses 4,898,930 68.2 4,841,421 68.7 4,100,426 586,353 63.6 Notes: (1)Including share-based compensation expenses of RMB49.3 million for 2023, RMB48.4 million for 2024, and RMB56.9 million (US$8.1 million) for 2025. (2)Including share-based compensation expenses of RMB51.9 million for 2023, RMB51.1 million for 2024, and RMB60.1 million (US$8.6 million) for 2025. (3)Including share-based compensation expenses of RMB85.9 million for 2023, RMB84.3 million for 2024, and RMB87.1 million (US$12.5 million) for 2025. Sales and Marketing Expenses Our sales and marketing expenses primarily consist of the branding and marketing expenses incurred in connection with promoting our brands and platform through search engines, mobile platforms, navigation sites and traditional media channels, sales promotion activities and salaries and benefits and sales commissions for our sales and marketing personnel. Our sales and marketing expenses also include offline execution and business development expenses associated with the implementation of our business and office- and travel-related expenses associated with our sales and marketing activities. General and Administrative Expenses Our general and administrative expenses primarily consist of expected credit losses, personnel-related expenses for management and administrative personnel and professional service fees. Product Development Expenses Our product development expenses primarily consist of personnel-related expenses associated with the development of new technologies and products, investment in underlying big data, AR and VR related technologies, and enhancement of our websites and mobile applications. We recognize these costs as expenses when incurred, unless they qualify for capitalization as software development costs. 110 Other Operating Income, net Our other operating income, net primarily consists of VAT refunds, government grants and others. The government grants primarily represent subsidies and tax refunds for operating a business in certain jurisdictions and fulfillment of specified tax payment obligations. These grants are not subject to any specific requirements and are recorded when received. Depending on the local government policies, some of the grants are not recurring in nature. The following table sets forth our other operating income, net in absolute amounts and as percentages of our total net revenues for the years indicated: For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) VAT refunds 233,922 3.3 219,790 3.1 169,895 24,295 2.6 Government grants 27,184 0.4 71,771 1.0 42,107 6,021 0.7 Others 2,995 0.0 (3,010 ) (0.0 ) (10,488 ) (1,500 ) (0.2 ) Other Operating Income, net 264,101 3.7 288,551 4.1 201,514 28,816 3.1 Taxation Cayman Islands Autohome Inc., Autohome Link Inc. and TTP Car Inc. were incorporated in the Cayman Islands. Autohome Inc. conducts substantially all of its business through its mainland China subsidiaries and VIEs. Under the current laws of the Cayman Islands, companies incorporated in the Cayman Islands are not subject to income or capital gains tax. In addition, dividend payments are not subject to withholding tax in the Cayman Islands. British Virgin Islands Cheerbright and Auto Pai Ltd. were incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, they are not subject to income or capital gains tax. In addition, dividend payments are not subject to withholding tax in the British Virgin Islands. Hong Kong Autohome (Hong Kong) Limited, Autohome Media Limited, Autohome Link Hong Kong Limited and TTP Car (HK) Limited, were incorporated in Hong Kong. Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. On April 1, 2018, a two-tiered profits tax regime was introduced. The profits tax rate for the first HK$2 million of profits of corporations is lowered to 8.25%, while profits above that amount continue to be subject to the tax rate of 16.5%. Under the Hong Kong tax law, our subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. Mainland China On December 29, 2018, the SCNPC amended the EIT Law, which was issued on March 16, 2007. The Implementation Rules of the EIT Law of the PRC on Enterprise Income Tax was issued on December 6, 2007 and became effective on January 1, 2008 and was most recently revised on December 6, 2024. Under the EIT Law and its implementation rules, a standard 25% enterprise income tax rate is generally applicable to both foreign-invested enterprises and domestic enterprises, unless they qualify for certain exceptions. An enterprise may benefit from a preferential tax rate of 15% under the EIT Law if it qualifies as a “High and New Technology Enterprise” strongly supported by the state. Pursuant to the Administrative Measures on the Recognition of High and New Technology Enterprises, or the Recognition Measures, as amended in January 2016, the provincial counterparts of the Ministry of Science and Technology, the MOF and the SAT make joint 111 determination on whether an enterprise is qualified as a “High and New Technology Enterprise” under the EIT Law. In making such determination, these government agencies consider, among other factors, ownership of core technology, whether the key technology supporting the core products or services falls within the scope of high and new technology strongly supported by the state as specified in the Recognition Measures, the ratios of research and development personnel to total personnel, the ratio of research and development expenditures to annual sales revenues, the ratio of revenues attributed to high and new technology products or services to total revenues, and other measures set forth in relevant guidance. A “High and New Technology Enterprise” certificate is effective for a period of three years. Autohome WFOE, Chezhiying WFOE, Beijing Autohome Technologies Co., Ltd., or Beijing Autohome Technologies, Beijing Prbrownies Software Co., Ltd., or Beijing Prbrownies, Hainan Chezhiyitong Information Technology Co., Ltd., or Hainan Chezhiyitong, Tianjin Autohome Software Co., Ltd., or Tianjin Autohome, and another two subsidiaries are recognized as HNTEs and are eligible for a 15% preferential tax rate effective until 2025 at earliest, upon the completion of their filings with the relevant tax authorities. An enterprise may benefit from a tax exemption or preferential tax rate of 10% under the EIT law if it qualifies as a “Key Software Enterprise.” “Key Software Enterprise” status will be subject to relevant governmental authorities’ assessment each year as to whether they are entitled to the tax exemption or preferential tax rate of 10%. In May 2016, the four PRC governmental authorities jointly issued a notice, pursuant to which an enterprise may be entitled to the preferential income tax rate of 10% by filing with the local tax authority with supporting documentation proving its qualifications to be a “Key Software Enterprise” during its annual income tax filing process. In December 2020, the MOF, the SAT, the NDRC, and the MIIT jointly issued a circular which has repealed the original preferential tax treatment applicable to the “Key Software Enterprise.” Such circular provides that the Key Software Enterprise’s EIT would be waived for five years since its first year of making profit and it may benefit from a preferential tax rate of 10% for the following years. Beijing Prbrownies registered as a KSE and enjoyed a reduced enterprise income tax of 10% for tax year from 2017 to 2024. Tianjin Autohome registered as a KSE and enjoyed tax exemption for tax years from 2021 to 2023 and 10% for 2024. Going forward, if Beijing Prbrownies or Tianjin Autohome, fails to complete the filing and registration with the relevant tax authorities, it will no longer enjoy the preferential tax rate. Pursuant to the Circular on Income Tax Policies for Further Encouraging the Development of Software Industry and Integrated Circuit Industry jointly issued by the SAT and the MOF, on April 20, 2012, as amended in 2016 and 2020, the Circular on Issues concerning Preferential Enterprise Income Tax Policies for Software and Integrated Circuit Industries jointly issued by the MOF, the SAT, the NDRC and the MIIT on May 4, 2016, as amended in 2018, and the Circular on Issues concerning Corporate Income Tax Policies for Promoting High-quality Development of Integrated Circuit Industry and Software Industry jointly issued by the MOF, the SAT, the NDRC and the MIIT on December 11, 2020, eligible software enterprises which pass annual review and filing with the relevant tax authorities can enjoy exemption of enterprise income tax for the first and second year as calculated from the profit making year or no later than December 31, 2017 if no profit is made prior to that date, and thereafter enjoy half of the statutory rate of 25% for the third through fifth year thereafter until the expiration of the preferential period. Chezhiying WFOE, Hainan Chezhiyitong and Tianjin Autohome are recognized as software enterprises and could be exempt from income tax for the tax year of 2019 and 2020 and enjoyed a 50% reduction in the statutory income tax rate of 25% for the tax year from 2021 to 2023. As mentioned above, Tianjin Autohome enjoyed a tax exemption for the tax year from 2021 to 2023 and 10% for 2024 as a KSE. Except for the above-mentioned entities, our remaining mainland China subsidiaries and all the VIEs were subject to enterprise income tax at a rate of 25%. If our holding company in the Cayman Islands, Autohome Inc., was deemed to be a “mainland China resident enterprise” under the EIT Law, it would be subject to enterprise income tax on its global income at a rate of 25%. If a subsidiary of us established in Hong Kong was deemed to be a “mainland China resident enterprise” and Autohome Inc. was not deemed to be a “mainland China resident enterprise” under the EIT Law, then dividends payable by such subsidiary to Autohome Inc. may become subject to 10% PRC dividend withholding tax. Under 112 such circumstances, it is not clear whether dividends payable by our mainland China subsidiaries to their respective shareholders in Hong Kong would still be subject to PRC dividend withholding tax at a rate of 5%. If such subsidiary in Hong Kong was deemed to be a “mainland China resident enterprise” under the EIT Law, it would be subject to enterprise income tax at a rate of 25%. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Our global income and the dividends that we may receive from our mainland China subsidiaries, dividends distributed to our non-mainland China shareholders and ADS holders, and gains recognized by such shareholders or ADS holders, may be subject to PRC taxes under the EIT Law, which would have a material adverse effect on our results of operations.” Results of Operations The following table presents our results of operations in absolute amounts and as a percentage of our total net revenues for the years indicated. For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) Net revenues Media services 1,870,819 26.0 1,523,075 21.6 1,153,419 164,937 17.9 Leads generation services 3,111,805 43.4 3,135,885 44.6 2,709,235 387,415 42.0 Online marketplace and others 2,201,511 30.6 2,380,627 33.8 2,589,376 370,276 40.1 Total net revenues 7,184,135 100.0 7,039,587 100.0 6,452,030 922,628 100.0 Cost of revenues(1) (1,411,881 ) (19.7 ) (1,483,220 ) (21.1 ) (1,783,831 ) (255,084 ) (27.6 ) Gross Profit 5,772,254 80.3 5,556,367 78.9 4,668,199 667,544 72.4 Operating expenses Sales and marketing expenses(1) (3,012,479 ) (41.9 ) (2,988,169 ) (42.4 ) (2,532,667 ) (362,167 ) (39.3 ) General and administrative expenses(1) (537,979 ) (7.5 ) (534,809 ) (7.6 ) (504,013 ) (72,072 ) (7.8 ) Product development expenses(1) (1,348,472 ) (18.8 ) (1,318,443 ) (18.7 ) (1,063,746 ) (152,114 ) (16.5 ) Total operating expenses (4,898,930 ) (68.2 ) (4,841,421 ) (68.7 ) (4,100,426 ) (586,353 ) (63.6 ) Other operating income, net 264,101 3.7 288,551 4.1 201,514 28,816 3.1 Operating profit 1,137,425 15.8 1,003,497 14.3 769,287 110,007 11.9 Interest and investment income, net 831,006 11.6 791,905 11.2 659,810 94,352 10.2 Share of results of equity method investments 29,133 0.4 (109,094 ) (1.5 ) 102,770 14,695 1.6 Income before income taxes 1,997,564 27.8 1,686,308 24.0 1,531,867 219,054 23.7 Income tax expenses (72,155 ) (1.0 ) (62,959 ) (0.9 ) (141,745 ) (20,269 ) (2.2 ) Net income 1,925,409 26.8 1,623,349 23.1 1,390,122 198,785 21.5 Net loss attributable to noncontrolling interests 9,901 0.1 57,774 0.8 52,708 7,537 0.9 Net income attributable to Autohome Inc. 1,935,310 26.9 1,681,123 23.9 1,442,830 206,322 22.4 Accretion of mezzanine equity. (153,294 ) (2.1 ) (172,596 ) (2.5 ) (189,661 ) (27,121 ) (2.9 ) Accretion attributable to noncontrolling interests. 98,071 1.4 111,035 1.6 131,964 18,870 2.0 Net income attributable to ordinary shareholders. 1,880,087 26.2 1,619,562 23.0 1,385,133 198,071 21.5 Notes: (1)Including share-based compensation expenses as follows: For the Year Ended December 31, 2023 2024 2025 RMB % RMB % RMB US$ % (in thousands, except percentages) Allocation of Share-Based Compensation Expenses Cost of revenues 7,982 0.1 8,135 0.1 14,812 2,118 0.2 Sales and marketing expenses 49,305 0.7 48,445 0.7 56,938 8,142 0.9 General and administrative expenses 51,860 0.7 51,112 0.7 60,110 8,596 0.9 Product development expenses 85,945 1.2 84,332 1.2 87,114 12,457 1.4 Total share-based compensation expenses 195,092 2.7 192,024 2.7 218,974 31,313 3.4 113 Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Net Revenues Our net revenues decreased by 8.3% from RMB7,039.6 million in 2024 to RMB6,452.0 million (US$922.6 million) in 2025. Media services. Our media services revenues decreased by 24.3% from RMB1,523.1 million in 2024 to RMB1,153.4 million (US$164.9 million) in 2025. The decrease in revenues from our media services was primarily due to reduced advertising spending by ICE automakers amid shrinking sales volumes in the ICE segment. Leads generation services. Leads generation services revenues decreased by 13.6% from RMB3,135.9 million in 2024 to RMB2,709.2 million (US$387.4 million) in 2025. The decline was primarily attributable to a reduction in the number of paying dealers and a lower average revenue per dealer as we expanded our footprint across lower-tier cities. Online marketplace and others. Revenues from online marketplace and others increased by 8.8% from RMB2,380.6 million in 2024 to RMB2,589.4 million (US$370.3 million) in 2025. Cost of Revenues Our cost of revenues increased by 20.3% from RMB1,483.2 million in 2024 to RMB1,783.8 million (US$255.1 million) in 2025. In addition, share-based compensation expenses included in cost of revenues in 2025 was RMB14.8 million (US$2.1 million), compared to RMB8.1 million in 2024. Operational costs. Our operational costs increased by 41.7% from RMB922.6 million in 2024 to RMB1,307.0 million (US$186.9 million) in 2025, primarily due to higher transaction costs associated with the Company’s innovative business in lower-tier cities. Content Costs. Our content costs decreased by 18.8% from RMB246.3million in 2024 to RMB200.0 million (US$28.6 million) in 2025, primarily due to the reduction of content acquisition cost. Bandwidth and IDC Costs. Our bandwidth and IDC costs decreased by 7.6% from RMB122.2million in 2024 to RMB112.9 million (US$16.1 million) in 2025. Tax Surcharges. Tax surcharges decreased by 20.9% from RMB85.3 million in 2024 to RMB67.5 million (US$9.7 million) in 2025, as a result of the revenue decline. Others. Other costs decreased by 9.7% from RMB106.7 million in 2024 to RMB96.4 million (US$13.8 million) in 2025. Operating Expenses Our operating expenses decreased by 15.3% from RMB4841.4 million in 2024 to RMB4,100.4 million (US$586.4 million) in 2025. Sales and Marketing Expenses. Our sales and marketing expenses decreased by 15.2% from RMB2,988.2 million in 2024 to RMB2,532.7 million (US$362.2 million) in 2025, which was primarily due to a decline in marketing and promotional expenses. As a percentage of net revenues, sales and marketing expenses were 39.3% in 2025, compared to 42.4% in 2024. Share-based compensation expense included in sales and marketing expenses in 2025 was RMB56.9 million (US$8.1 million), compared to RMB48.4 million in 2024. General and Administrative Expenses. Our general and administrative expenses decreased by 5.8% from RMB534.8 million in 2024 to RMB504.0 million (US$72.1 million) in 2025. As a percentage of net revenues, general and administrative expenses remained relatively stable at 7.6% in 2024 and 7.8% in 2025. Share-based 114 compensation expense included in general and administrative expenses in 2025 was RMB60.1 million (US$8.6 million), compared to RMB51.1 million in 2024. Product Development Expenses. Our product development expenses decreased by 19.3% from RMB1,318.4 million in 2024 to RMB1,063.7 million (US$152.1 million) in 2025, which was primarily due to a decline in personnel-related expenses. As a percentage of net revenues, product development expenses were 16.5% in 2025, compared to 18.7% in 2024. Share-based compensation expense included in product development expenses in 2025 was RMB87.1 million (US$12.5 million), compared to RMB84.3 million in 2024. Other operating income, net Our other operating income, net, primarily consists of VAT refund, government grants and others. Other operating income, net, was RMB201.5 million (US$28.8 million) in 2025, compared to RMB288.6 million in 2024. Income before Income Taxes Our income before income taxes was RMB1,531.9 million (US$219.1 million) in 2025, compared to RMB1,686.3 million in 2024. The decrease was primary due to the lower revenue. Income Tax Expense We recorded an income tax expense of RMB141.7 million (US$20.3 million) in 2025, compared to RMB63.0 million in 2024. The increase was primarily attributable to the prior-year tax filing adjustments, and less benefits from preferential income tax rates and tax holidays for certain subsidiaries in the PRC. Net Income Attributable to Autohome Inc. As a result of the foregoing, we had net income attributable to Autohome Inc. of RMB1,442.8 million (US$206.3 million) in 2025, decreasing by 14.2% compared to net income attributable to Autohome Inc. of RMB1,681.1 million in 2024. Net Income attributable to Ordinary Shareholders The net income attributable to ordinary shareholders was RMB1,385.1 million (US$198.1 million) in 2025, decreasing by 14.5% compared to net income attributable to ordinary shareholders of RMB1619.6 million in 2024. Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Net Revenues Our net revenues decreased by 2.0% from RMB7,184.1 million in 2023 to RMB7,039.6 million in 2024. Media services. Our media services revenues decreased by 18.6% from RMB1,870.8 million in 2023 to RMB1,523.1 million in 2024. The decrease in revenues from our media services was primarily attributable to the decline in average revenue per automaker advertiser from RMB19.5 million in 2023 to RMB15.1 million in 2024. Leads generation services. Leads generation services revenues increased by 0.8% from RMB3,111.8 million in 2023 to RMB3,135.9 million in 2024. Online marketplace and others. Revenues from online marketplace and others increased by 8.1% from RMB2,201.5 million in 2023 to RMB2,380.6 million in 2024. Cost of Revenues 115 Our cost of revenues increased by 5.1% from RMB1,411.9 million in 2023 to RMB1,483.2 million in 2024. In addition, share-based compensation expenses included in cost of revenues in 2024 was RMB8.1 million, compared to RMB8.0 million in 2023. Operational costs. Our operational costs increased by 32.5% from RMB696.2 million in 2023 to RMB922.6 million in 2024, primarily due to the increased execution costs to fulfil the contracts and transaction fees incurred on the platform. Content Costs. Our content costs decreased by 37.9% from RMB396.5 million in 2023 to RMB246.3 million in 2024, primarily due to the reduction of content acquisition cost. Bandwidth and IDC Costs. Our bandwidth and IDC costs increased by 10.6% from RMB110.5 million in 2023 to RMB122.2 million in 2024. Tax Surcharges. Tax surcharges decreased by 10.3% from RMB95.1 million in 2023 to RMB85.3 million in 2024. Others. Other costs decreased by 6.0% from RMB113.5 million in 2023 to RMB106.7 million in 2024. Operating Expenses Our operating expenses decreased by 1.2% from RMB4,898.9 million in 2023 to RMB4,841.4 million in 2024. Sales and Marketing Expenses. Our sales and marketing expenses decreased by 0.8% from RMB3,012.5 million in 2023 to RMB2,988.2 million in 2024. As a percentage of net revenues, sales and marketing expenses were 42.4% in 2024, compared to 41.9% in 2023. Share-based compensation expense included in sales and marketing expenses in 2024 was RMB48.4 million, compared to RMB49.3 million in 2023. General and Administrative Expenses. Our general and administrative expenses decreased by 0.6% from RMB538.0 million in 2023 to RMB534.8 million in 2024. As a percentage of net revenues, general and administrative expenses remained relatively stable at 7.5% in 2023 and 7.6% in 2024. Share-based compensation expense included in general and administrative expenses in 2024 was RMB51.1 million, compared to RMB51.9 million in 2023. Product Development Expenses. Our product development expenses decreased by 2.2% from RMB1,348.5 million in 2023 to RMB1,318.4 million in 2024. As a percentage of net revenues, product development expenses were 18.7% in 2024, compared to 18.8% in 2023. Share-based compensation expense included in product development expenses in 2024 was RMB84.3 million, compared to RMB85.9 million in 2023. Other operating income, net Our other operating income, net, primarily consists of VAT refund, government grants and others. Other operating income, net, was RMB288.6 million in 2024, compared to RMB264.1 million in 2023. Income before Income Taxes Our income before income taxes was RMB1,686.3 million in 2024, compared to RMB1,997.6 million in 2023. The decrease was primary due to the lower revenue and loss from an equity method. Income Tax Expense We recorded an income tax expense of RMB63.0 million in 2024, compared to RMB72.2 million in 2023. 116 Net Income Attributable to Autohome Inc. As a result of the foregoing, we had net income attributable to Autohome Inc. of RMB1,681.1 million in 2024, decreasing by 13.1% compared to net income attributable to Autohome Inc. of RMB1,935.3 million in 2023. Net Income attributable to Ordinary Shareholders The net income attributable to ordinary shareholders was RMB1,619.6 million in 2024, decreasing by 13.9% compared to net income attributable to ordinary shareholders of RMB1,880.1 million in 2023. Inflation Since our inception, inflation in China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, the consumer price index in mainland China increased by 0.2%, 0.2% and 0.0% in 2023, 2024 and 2025, and the year-over-year percent changes in the consumer price index for December 2023, 2024 and 2025 were decreases of 0.3%, increases of 0.1% and increases of 0.8%, respectively. Although we have not in the past been materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in mainland China. Recent Accounting Pronouncements See Item 17 of Part III, “Financial Statements—Note 2—Summary of significant accounting policies—Recent accounting pronouncements.” B.Liquidity and Capital Resources Cash Flows and Working Capital As of December 31, 2025, we had cash and cash equivalents, restricted cash, short-term investments and long-term financial products, altogether amounting to RMB21.4 billion (US$3.1 billion). We believe that our current cash and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for at least the next 12 months. We may require additional cash due to unanticipated business conditions or other future developments. We may also need additional cash resources if we find and wish to pursue opportunities for investments, acquisitions, strategic cooperation or other similar actions. If our existing cash is insufficient to meet our requirements, we may seek to sell additional equity securities, debt securities or secure debt funding from financial institutions. The following table sets forth a summary of our cash flows for the years indicated. For the Year Ended December 31, 2023 2024 2025 RMB RMB RMB US$ (in thousands) Net cash generated from operating activities 2,451,429 1,373,135 889,462 127,191 Net cash generated from/(used in) investing activities 1,000,349 (3,051,667 ) 2,151,847 307,711 Net cash used in financing activities (1,124,493 ) (1,701,763 ) (2,533,204 ) (362,244 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash (14,612 ) 39,260 (40,300 ) (5,764 ) Net increase/(decrease) in cash and cash equivalents and restricted cash 2,312,673 (3,341,035 ) 467,805 66,894 Cash and cash equivalents and restricted cash at beginning of year 2,815,474 5,128,147 1,787,112 255,554 Cash and cash equivalents and restricted cash at end of year 5,128,147 1,787,112 2,254,917 322,448 117 Operating Activities Net cash generated from operating activities was RMB889.5 million (US$127.2 million) for 2025. The difference between the net income of RMB1,390.1 million (US$198.8 million) and the net cash generated from the operating activities was primarily due to cash reduction of RMB970.6 million (US$138.8 million) used in working capital and adding back certain non-cash expense items of RMB469.9 million (US$67.2 million), mainly including share-based compensation of RMB219.0 million (US$31.3 million), depreciation of property and equipment of RMB110.5 million (US$15.8 million), amortization of operating lease right-of-use asset of RMB88.8 million (US$12.7 million) and share of results of equity method investments of RMB102.8 million (US$14.7 million). The change in working capital was mainly in turn the result of (i) a RMB188.6 million (US$27.0 million) increase in accounts receivable; (ii) a RMB92.7 million (US$13.3 million) decrease in prepaid expenses and other current assets; (iii) a RMB106.1 million (US$15.2 million) decrease in deferred revenue; (iv) a RMB594.3 million (US$85.0 million) decrease in accrued expenses and other payable; and (v) a RMB102.9 million (US$14.7 million) decrease in income tax payable. The increase in accounts receivable was primarily attributable to the slower payment collection from advertisers and dealers. The decrease in prepaid expenses and other current assets was primarily attributable to the decreased prepaid taxes. The decrease in deferred revenue was primarily attributable to the timing difference of collection of subscription fees from annually to quarterly or monthly. The decrease in accrued expenses and other payables was primarily attributable to the decreased promotion expenses. The decrease in income tax payable was primarily attributable to the payment of withholding tax on dividend from our subsidiaries of the parent company. Net cash generated from operating activities was RMB1,373.1 million for 2024. The difference between the net income of RMB1,623.3 million and the net cash generated from the operating activities was primarily due to cash reduction of RMB802.0 million used in working capital and adding back certain non-cash expense items of RMB551.8 million, mainly including share-based compensation of RMB192.0 million, depreciation of property and equipment of RMB123.6 million, amortization of operating lease right-of-use asset of RMB106.5 million and share of results of equity method investments of RMB109.1 million. The change in working capital was mainly in turn the result of (i) a RMB77.8 million decrease in accounts receivable; (ii) a RMB57.1 million increase in prepaid expenses and other current assets; (iii) a RMB524.7 million decrease in deferred revenue; (iv) a RMB135.0 million decrease in accrued expenses and other payable; and (v) a RMB66.1 million decrease in other liabilities. The decrease in accounts receivable was primarily attributable to the enhanced credit risk management. The increase in prepaid expenses and other current assets was primarily attributable to the increased prepaid technical service expenses. The decrease in accrued expenses and other payables was primarily attributable to the increased promotion expenses. The decrease in deferred revenue was primarily attributable to the timing difference of collection of subscription fees from annually to quarterly. The decrease in other liabilities was primarily attributable to the lower operating lease liabilities. Net cash generated from operating activities was RMB2,451.4 million for 2023. The difference between the net income of RMB1,925.4 million and the net cash generated from the operating activities of RMB2,451.4 million was primarily due to additional cash of RMB112.4 million generated from working capital, and adding back certain non-cash expense items mainly including share-based compensation of RMB195.1 million, amortization of operating lease right-of-use asset of RMB108.1 million and depreciation of RMB167.8 million. The change in working capital was in turn the result of (i) a RMB479.9 million decrease in accounts receivable; (ii) a RMB244.1 million increase in prepaid expenses and other current assets; (iii) a RMB193.0 million increase in other non-current assets; (iv) a RMB367.0 million increase in accrued expenses and other payables; and (v) a RMB345.6 million decrease in deferred revenue. The decrease in accounts receivable was primarily attributable to the enhanced credit risk management. The increase in prepaid expenses and other current assets was primarily attributable to the increased prepaid technical service expenses and receivables from third-party payment platform. The increase in other non-current assets was primarily attributable to the recognition of operating lease right-of-use assets. The increase in accrued expenses and other payables was primarily attributable to the increased promotion expenses. The decrease in deferred revenue was primarily attributable to the extension of collection of subscription fees from certain dealers. 118 As of December 31, 2025, 85.4% (or RMB1,328.3 million) of our total accounts receivable at the end of 2024 and 88.9% (or RMB1,452.2 million) of our total accounts receivable at the end of 2023 were subsequently settled. Our accounts receivable turnover days, which are the average accounts receivable balances as of the beginning and the end of the period divided by total net revenues during the period and multiplied by the number of days during the period, were 85.2days in 2023, 74.7days in 2024 and 91.7 days in 2025. Investing Activities Net cash generated in investing activities was RMB2,151.8 million (US$307.7 million) in 2025, which was primarily attributable to the redemption of time deposits and adjustable-rate financial products. Net cash used in investing activities was RMB3,051.7 million in 2024, which was primarily attributable to purchase of time deposits and adjustable-rate financial products. Net cash generated in investing activities was RMB1,000.3 million in 2023, which was primarily attributable to the redemption of time deposits and adjustable-rate financial products. Financing Activities Net cash used in financing activities was RMB2,533.2 million (US$362.2 million) in 2025, which was primarily attributable to payment of dividends and payment for repurchase of ordinary shares. Net cash used in financing activities was RMB1,701.8 million in 2024, which was primarily attributable to payment of dividends and payment for repurchase of ordinary shares. Net cash used in financing activities in 2023 was RMB1,124.5 million, which was primarily attributable to payment for repurchase of ordinary shares and payment of dividends. Material Cash Requirement Our material cash requirement as of December 31, 2025 and any subsequent interim period include our capital expenditures and operating lease obligations. Our capital expenditures were primarily used for the purchase of servers and software for our business. Cash outflow in connection with capital expenditures amounted to RMB78.6million, RMB140.0million and RMB118.1 million (US$16.9 million) in 2023, 2024 and 2025, respectively. Our operating lease obligations mainly relate to the lease of office space and internet data centers. Lease cost for the years ended December 31, 2023, 2024 and 2025 were RMB211.3 million, RMB205.8 million and RMB177.8 million (US$25.4 million), respectively, with the figures in 2023, 2024 and 2025 including those related to lease of data centers. The following summarizes our contractual obligations as of December 31, 2025: Payments Due by Period Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Total (RMB in thousands) Operating lease obligations (1) 40,524 22,365 —— —— 62,889 Note: (1)Operating lease obligations related to the lease of office space and internet data centers. 119 We intend to fund our existing and future material cash requirements with our existing cash balance. We will continue to make cash commitments, including capital expenditures, to support the growth of our business. We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. Other than as discussed above, we did not have any significant capital and other commitments, long-term obligations or guarantees as of December 31, 2025. Holding Company Structure Our ability to pay dividends is primarily dependent on our receiving distributions of funds from our subsidiaries. Relevant statutory laws and regulations of mainland China permit payments of dividends by our mainland China subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of our mainland China subsidiaries. Under PRC law, our mainland China subsidiaries are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund and allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accounting standards to the general reserve, and have the right to discontinue allocations to the general reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, they are also required to make appropriations to the enterprise expansion fund and staff welfare and bonus fund at the discretion of their respective boards of directors. The VIEs in mainland China are also subject to similar statutory reserve requirements. These reserves can only be used for specific purposes and are not transferable to us in the form of loans, advances or cash dividends. As of December 31, 2023, 2024 and 2025, our mainland China subsidiaries and the VIEs had appropriated RMB132.5 million, RMB132.6 million and RMB98.7 million (US$14.1 million), respectively, of retained earnings for their statutory reserves. As a result of these mainland China laws and regulations, prior to allocations of after-tax profits to the statutory reserves, our PRC subsidiaries and the VIEs are restricted in their ability to transfer a portion of their net assets to us. Foreign exchange and other regulation in the PRC may further restrict our mainland China subsidiaries and the VIEs from transferring funds to us in the form of dividends, loans and advances. As of December 31, 2023, 2024 and 2025, the amounts of the net restricted assets of our mainland China subsidiaries and the VIEs were RMB5,073.2 million, RMB5,081.4 million and RMB5,161.7 million (US$738.1 million), respectively. C.Research and Development, Patents and Licenses, etc. Technology and Product Development Our technologies and infrastructure are critical to our success. We follow a user-centric strategy for our system architecture and have developed a robust and scalable technology platform driven by AI, big data and cloud technologies with sufficient flexibility to support our rapid growth. We had an experienced product development team of 1,186 engineers as of December 31, 2025. Our past innovation has focused on helping users research, select and purchase suitable vehicles through our websites. We plan to develop additional products and services for our mobile applications and media-related technology and 120 enhance our big data analytics capabilities and AR- and VR-related technologies. See “Item 4. Information on the Company—B. Business Overview—Technology and Product Development” for more details. Intellectual Property See “Item 4. Information on the Company—B. Business Overview—Intellectual Property.” D.Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments, or events since the beginning of our fiscal year 2025 and as of the date of this annual report that are reasonably likely to have a material effect on our net revenues, income from operations, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial condition. E.Critical Accounting Estimates Critical Accounting Estimates We prepare our financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the end of each reporting period and the reported amount of revenue and expenses during each reporting period. We evaluate these estimates and assumptions based on historical experience, knowledge and assessment of current business and other conditions and expectations that we believe to be reasonable under the circumstances. We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. Such critical estimates are discussed below. For further information on our other significant accounting estimates, see Note 2 to our consolidated financial statements included elsewhere in this annual report. Allowance for Credit Losses The allowance for credit losses represents our management’s estimate of the expected lifetime credit losses inherent in accounts receivables as of December 31, 2025. The adequacy of allowance for credit losses is assessed quarterly, and the assumptions and models used in establishing the allowance are evaluated regularly. We estimated the allowance by segmenting accounts receivable into groups based on certain credit risk characteristics and estimated the allowance for credit losses on receivables not sharing similar risk characteristics on an individual basis. The key factors considered when determining the allowance for credit losses include the historical loss experience and financial performance of the customers. We also provide specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses are recorded as general and administrative expenses on the consolidated statements of comprehensive income. Changes in these estimates and assumptions could materially affect the credit losses. Critical Accounting Policies When reviewing our consolidated financial statements, you should consider (a) our selection of critical accounting policies, (b) the judgment and other uncertainties affecting the application of such policies and (c) the sensitivity of reported results to changes in conditions and assumptions. For further information on our significant accounting policies, see Note 2 to our consolidated financial statements for 2023, 2024 and 2025. We consider the 121 policies discussed below to be critical to an understanding of our consolidated financial statements as their application places significant demands on the judgment of our management. They should be read in conjunction with our consolidated financial statements, the risks and uncertainties as described under “Item 3. Key Information—D. Risk Factors” and other disclosures included in this annual report. Revenue Recognition and Accounts Receivable Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The recognition of revenue involves certain management judgments including identification of performance obligations, stand-alone selling price for each performance obligation, estimation of variable consideration represented by sales rebates, etc. We provide rebates to agency companies based on their cumulative annual advertising and service volume, and the timeliness of their payments, which are accounted for as variable consideration. We estimate our obligations under such agreements by applying the most likely amount method, based on an evaluation of the likelihood of the agency companies’ achievement of the advertising and service volume targets and the timeliness of their payments, after taking into account the agency companies’ purchase trends and history. A refund liability, included in accrued expenses and other payables, is recognized for expected sales rebates payable to agency companies in relation to advertising services provided. We recognize revenue for the amount of fees we receive from the customers, after deducting these sales rebates, and net of VAT collected from customers. We believe that there will not be significant changes to our estimates of variable consideration and update the estimate at each reporting period as actual utilization becomes available. We determine revenue recognition through the following steps: •identification of the contract, or contracts, with a customer; •identification of the performance obligations in the contract; •determination of the transaction price; •allocation of the transaction price to the performance obligations in the contract; and •recognition of revenue when, or as, we satisfy a performance obligation. Media services Media services revenues mainly include revenues from automaker advertising services and regional marketing campaigns conducted by certain automobile brands’ regional offices. The majority of our online advertising service contracts involve multiple deliverables or performance obligations presented on PC and mobile platforms and in different formats, such as banner advertisements, links and logos, other media insertions and promotional activities that are delivered over different periods of time. Revenue is allocated among these different deliverables based on their relative stand-alone selling prices. We generally determine the stand-alone selling price as the observable price of a product or service charged to customers when sold on a stand-alone basis. Advertising services are primarily delivered based on cost per day (“CPD”) pricing model. For CPD advertising arrangements, revenue is recognized when the corresponding advertisements are published over the stated display period. For cost per thousand impressions (“CPM”) model, revenue is recognized when the advertisements are displayed and based on the number of times that the advertisement has been displayed. For cost-per-click (“CPC”) model, revenue is recognized when the user clicks on the customer-sponsored links and based on the number of clicks. For certain marketing campaigns and promotional activities services, revenue is recognized when the corresponding services have been rendered. Leads generation services 122 Leads generation services primarily include revenues from (i) dealer subscription services, (ii) advertising services sold to individual dealer advertisers, and (iii) used car listing services. Under the dealer subscription services, we make available throughout the subscription period a webpage linked to our websites and mobile applications where the dealers can publish information such as the pricing of their products, locations and addresses and other related information. Usually, revenue of dealer subscription services is recognized over time on a straight-line basis as services are constantly provided over the subscription period. For the advertising services sold to individual dealers, revenue is recognized when the advertising is published over the stated display period. The used car listing services primarily include listing and display of used vehicles, generation of sales leads, etc. through our platform. Our used car platform acts as a user interface that allows potential used car buyers to identify listings that meet their specific requirements and contact the sellers. Our service fee is charged based on the number of displayed days, or quantity of sales leads delivered. Revenue is recognized respectively over the stated displaying period or at a point in time upon the delivery of sales leads. Online marketplace and others Online marketplace and others revenues primarily consist of revenues related to (i) data products, (ii) vehicle sales, (iii) new and used vehicle transaction platform, and (iv) auto financing business, and others. For the data products, we provide data-driven products and solutions for automakers and dealers, and recognize revenue over the service period of data-driven products and solutions by the automakers and dealers. For the vehicle sales, the Company sells vehicles to franchised offline stores and individual customers. Revenue is generally recognized at a point in time when control of the vehicles is transferred to the customers with acceptance reports. For the new and used vehicle transaction business, we provide platform-based services including facilitation of transactions, transaction-oriented marketing solutions, and generation of sales leads. For the new car vehicle transaction, we act as the platform for users to review automotive-related information and inquiry, and facilitates of transaction by delivering sales leads to the automakers. For the used vehicle transaction, we act as a used car consumer-to-business-to-consumer transaction system that facilitates the used car transaction between the sellers and buyers and charge the service fee per each sale. The new and used vehicle transaction revenue is recognized at a point in time when the sales leads are delivered or upon the successful facilitation of transaction. For the auto-financing business, we provide a platform which serves as a bridge to match users and automobile sellers that have auto financing needs with our cooperative financial institutions that offer a variety of products covering merchant loans, consumer loans, leases and insurance services. The auto-financing service fee is charged on a per sale or lead basis, and the service fee is recognized at a point in time when the sales leads are delivered or upon the successful facilitation of transaction. Contract Balances and Accounts Receivable Deferred revenue is primarily related to the advanced payment related to dealer subscription services and used car listings under leads generation services. As of December 31, 2023, 2024 and 2025, there was deferred revenue of RMB801.6 million, RMB276.9 million and RMB170.8 million (US$24.4 million), respectively. The beginning balance of deferred revenue of RMB276.9 million was recognized as revenue for the year ended December 31, 2025, and the unrecognized part was immaterial. Practical Expedients and Exemptions We have elected to use the practical expedient to not disclose the remaining performance obligations for contracts that have durations of one year or less. We do not have significant remaining performance obligations in excess of one year. For the remaining performance obligations as of December 31, 2025, most of them are to be recognized within a year. 123 The revenue standard requires us to recognize an asset for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year. We have determined that sales commission for sales personnel meet the requirements of capitalization. However, we apply a practical expedient to expense these costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. Leases We determine if an arrangement is a lease and determine the classification of the lease, as either operating or finance, at commencement. We have operating leases for office buildings and data centers and has no finance leases as of December 31, 2025. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at commencement date, to determine the present value of lease payments. The incremental borrowing rates approximate the rate we would pay to borrow in the currency of the lease payments for the weighted-average life of the lease. The operating lease ROU assets also include any lease payments made prior to lease commencement and excludes lease incentives and initial direct costs incurred if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Our lease agreements contain both lease and non-leas components, which are accounted for separately based on their relative standalone price. As of December 31, 2025, we recognized the following items related to operating lease in its consolidated balance sheet. As of December 31, 2025 RMB US$ (in thousands) Operating lease ROU assets 62,168 8,890 Operating lease liabilities, current portion 39,207 5,607 Operating lease liabilities, non-current portion 21,544 3,079 Lease cost recognized in our consolidated statements of comprehensive income is summarized as follows: For the Year Ended December 31, 2025 RMB US$ (in thousands) Operating lease cost 92,926 13,288 Cost of other leases with terms less than one year 84,895 12,140 Income taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. We record a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. 124 We apply ASC 740, Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a tax position is required to meet before being recognized in the financial statements. We have recorded unrecognized tax benefits in the other liabilities line item in the accompanying consolidated balance sheets. We have elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of “income tax expense”, in the consolidated statements of comprehensive income. Our estimated liability for unrecognized tax benefits and the related interest and penalties are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from our estimates. As each audit is concluded, adjustments, if any, are recorded in our consolidated financial statements. Additionally, in future periods, changes in facts and circumstances, and new information may require us to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which they occur. Fair Value Measurements of Financial Instruments Our financial instruments primarily comprise of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amounts due from related parties, prepaid expenses and other current assets excluding prepayments and staff advances, other long-term investments, other non-current assets excluding operating lease right-of-use assets and prepayments, accrued expenses and other payables, and amounts due to related parties. The carrying values of these financial instruments excluding other non-current assets approximated their fair values due to the short-term maturity of these instruments. ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2—Include other inputs that are directly or indirectly observable in the marketplace Level 3—Unobservable inputs which are supported by little or no market activity ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Intangible Assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. Intangible assets acquired in asset acquisitions are measured based on the cost to the acquiring entity, which generally includes transaction costs. Intangible assets with finite useful lives are amortized using a straight-line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. Our goodwill at December 31, 2023, 2024 and 2025 was related to our acquisition of Cheerbright, China Topside, Norstar and TTP. In accordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. Also, the management has the 125 option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for us) and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business environment, legal factors, financial performances, competition, or events affecting the reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. Our management has determined that we represent the lowest level within the entity at which goodwill is monitored for internal management purposes. The management applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to it carrying amounts. The management estimated fair value using market approach or income approach, which involved assumptions, such as revenue growth rates, profitability in estimating future cash flows, and discount rates etc. Changes in these assumptions could materially affect the determination of fair value for the reporting unit. No impairment charge was recognized for the years ended December 31, 2023, 2024 and 2025. Share-based Compensation Share-based awards granted to employees are accounted for under ASC 718, Compensation-Stock Compensation, which requires that share-based awards granted to employees be measured based on the grant date fair value and recognized as compensation expense over the requisite service period (which is generally the vesting period) in the consolidated statements of comprehensive income. We have elected to recognize compensation expense using the straight-line method for all share-based awards granted with service conditions that have a graded vesting schedule. For awards with performance condition and multiple service periods, if the performance conditions are independent for each year, each tranche should be accounted for as a separate award with its own service inception date, grant-date fair value and requisite service period. Compensation cost should be recognized over the respective requisite service period separately for each separately-vesting tranche as though each tranche of the award is, in substance, a separate award. Under ASC 718, an entity can make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. We have elected to estimate the forfeiture rate at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. We recognize compensation cost for awards with performance conditions if and when we conclude that it is probable that the performance condition will be achieved. We reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on its probability assessment. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates and are adjusted to reflect future changes in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense is recorded only for those share- based awards that are expected to vest. To the extent we revise these estimates in the future, the share- based payments could be materially impacted in the period of revision, as well as in following periods. We, with the assistance of an independent third-party valuation firm, determined the fair value of the stock options granted to employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees. Subsequent to the IPO, fair value of the ordinary shares is the price of our publicly traded shares. We account for a change in any of the terms or conditions of share-based awards as a modification in accordance with ASC subtopic 718-20, Compensation-Stock Compensation: Awards Classified as Equity, whereby the incremental fair value, if any, of a modified award, is recorded as compensation cost on the date of modification for vested awards or over the remaining vesting period for unvested awards. The incremental compensation cost is the excess of the fair value of the modified award on the date of modification over the fair value of the original award immediately before the modification. 126