Exhibit 99.1

 

Autohome Inc. Announces Unaudited Second Quarter and Interim 2025 Financial Results

BEIJING, July 31, 2025 – 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, 2025.

Second Quarter 2025 Highlights¹

 

•

Net revenues in the second quarter of 2025 were RMB1,758.1 million (US$245.4 million), compared to RMB1,872.6 million in the corresponding period of 2024.

 

•

Net income attributable to Autohome in the second quarter of 2025 was RMB415.7 million (US$58.0 million), compared to RMB524.8 million in the corresponding period of 2024, while net income attributable to ordinary shareholders in the second quarter of 2025 was RMB398.9 million (US$55.7 million), compared to RMB509.7 million in the corresponding period of 2024.

 

•

Adjusted net income attributable to Autohome (Non-GAAP)2 in the second quarter of 2025 was RMB475.7 million (US$66.4 million), compared to RMB572.4 million in the corresponding period of 2024.

 

•

Share repurchase: As of July 25, 2025, the Company had repurchased 5,349,886 American depositary shares (“ADSs”) for a total cost of approximately US$142.4 million.

Mr. Song Yang, Chief Executive Officer of Autohome, stated, “We continued to make steady progress in advancing our O2O strategy by optimizing synergies between online and offline resources. At the same time, we accelerated AI-driven product innovation to empower user decision-making and improve cost efficiency for our customers. Powered by DeepSeek and our auto-related proprietary big data capabilities, our AI smart assistant delivers industry-leading performance in answering questions across both new and used vehicles scenarios. Meanwhile, our new retail business continued to expand its footprint, with the number of franchised stores surpassing 200 by the end of June, significantly expanding our reach to a broader consumer base.”

“Looking ahead, we will continue to expand the applications of AI across our products and services, and deepen the deployment of our O2O automotive ecosystem. By capitalizing on key industry trends - electrification, intelligence and globalization, we will further drive the transformation of the automotive consumer experience and deliver greater value to both our users and customers.”

 

1

The reporting currency of the Company is Renminbi (“RMB”). For readers’ convenience, 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$1.00 to RMB7.1636 on June 30, 2025 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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 “Unaudited Reconciliations of Non-GAAP and GAAP Results” set forth at the end of this release.

 

1

Mr. Craig Yan Zeng, Chief Financial Officer of Autohome, added, “Through the upgrade of our content matrix and innovative initiatives, we have further strengthened Autohome’s content ecosystem advantages and achieved steady user growth. According to QuestMobile, our average number of mobile daily active users grew by 11.5% year-over-year, reaching 75.74 million in June. Notably, online marketplace and others revenues increased by 20.5% year-over-year in the second quarter, driven primarily by the robust performance of our new retail business, which also contributed to the rapid rise in our new energy vehicle revenues. Moving forward in 2025, we will remain committed to capturing emerging growth opportunities while maintaining disciplined cost controls to deliver sustainable value to our shareholders.”

Unaudited Second Quarter 2025 Financial Results

Net Revenues

Net revenues in the second quarter of 2025 were RMB1,758.1 million (US$245.4 million), compared to RMB1,872.6 million in the corresponding period of 2024.

 

•

Media services revenues were RMB279.4 million (US$39.0 million) in the second quarter of 2025, compared to RMB432.9 million in the corresponding period of 2024, primarily due to reduced advertising spending by internal combustion engine automakers.

 

•

Leads generation services revenues were RMB732.6 million (US$102.3 million) in the second quarter of 2025, compared to RMB820.3 million in the corresponding period of 2024.

 

•

Online marketplace and others revenues were RMB746.1 million (US$104.2 million) in the second quarter of 2025, compared to RMB619.4 million in the corresponding period of 2024.

Cost of Revenues

Cost of revenues was RMB503.4 million (US$70.3 million) in the second quarter of 2025, compared to RMB346.1 million in the corresponding period of 2024, primarily due to higher transaction costs associated with the Company’s innovative business in lower-tier cities. Share-based compensation expense included in cost of revenues in the second quarter of 2025 was RMB3.4 million (US$0.5 million), compared to RMB1.9 million in the corresponding period of 2024.

Operating Expenses

Operating expenses were RMB1,015.7 million (US$141.8 million) in the second quarter of 2025, compared to RMB1,185.3 million in the corresponding period of 2024.

 

•

Sales and marketing expenses were RMB630.0 million (US$87.9 million) in the second quarter of 2025, compared to RMB752.5 million in the corresponding period of 2024, primarily due to a decrease in marketing and promotional expenses. Share-based compensation expenses included in sales and marketing expenses in the second quarter of 2025 were RMB13.3 million (US$1.9 million), compared to RMB10.1 million in the corresponding period of 2024.

 

•

General and administrative expenses were RMB132.7 million (US$18.5 million) in the second quarter of 2025, compared to RMB117.6 million in the corresponding period of 2024. Share-based compensation expenses included in general and administrative expenses in the second quarter of 2025 were RMB15.8 million (US$2.2 million), compared to RMB10.4 million in the corresponding period of 2024.

 

•

Product development expenses were RMB253.0 million (US$35.3 million) in the second quarter of 2025, compared to RMB315.2 million in the corresponding period of 2024, primarily due to a decrease in personnel-related expenses. Share-based compensation expenses included in product development expenses in the second quarter of 2025 were RMB19.9 million (US$2.8 million), compared to RMB18.8 million in the corresponding period of 2024.

 

2

Operating Profit

Operating profit was RMB296.6 million (US$41.4 million) in the second quarter of 2025, compared to RMB412.4 million in the corresponding period of 2024.

Income Tax Expense

Income tax expense was RMB60.6 million (US$8.5 million) in the second quarter of 2025, compared to RMB102.2 million in the corresponding period of 2024.

Net Income Attributable to Autohome

Net income attributable to Autohome was RMB415.7 million (US$58.0 million) in the second quarter of 2025, compared to RMB524.8 million in the corresponding period of 2024.

Net Income Attributable to Ordinary Shareholders and Earnings per Share/ADS

Net income attributable to ordinary shareholders was RMB398.9 million (US$55.7 million) in the second quarter of 2025, compared to RMB509.7 million in the corresponding period of 2024. Basic and diluted earnings per share (“EPS”) were RMB0.85 (US$0.12) and RMB0.85 (US$0.12), respectively, in the second quarter of 2025, compared to basic and diluted EPS of RMB1.05 and RMB1.05, respectively, in the corresponding period of 2024. Basic and diluted earnings per ADS were RMB3.40 (US$0.47) and RMB3.38 (US$0.47), respectively, in the second quarter of 2025, compared to basic and diluted earnings per ADS of RMB4.20 and RMB4.19, respectively, in the corresponding period of 2024.

Adjusted Net Income Attributable to Autohome (Non-GAAP) and Non-GAAP EPS/ADS

Adjusted net income attributable to Autohome (Non-GAAP) was RMB475.7 million (US$66.4 million) in the second quarter of 2025, compared to RMB572.4 million in the corresponding period of 2024. Non-GAAP basic and diluted EPS were RMB1.01 (US$0.14) and RMB1.01 (US$0.14), respectively, in the second quarter of 2025, compared to non-GAAP basic and diluted EPS of RMB1.18 and RMB1.18, respectively, in the corresponding period of 2024. Non-GAAP basic and diluted earnings per ADS were RMB4.06 (US$0.57) and RMB4.04 (US$0.56), respectively, in the second quarter of 2025, compared to non-GAAP basic and diluted earnings per ADS of RMB4.72 and RMB4.71, respectively, in the corresponding period of 2024.

Balance Sheet and Cash Flow

As of June 30, 2025, the Company had cash and cash equivalents and short-term investments of RMB22.05 billion (US$3.08 billion). Net cash provided by operating activities in the second quarter of 2025 was RMB495.0 million (US$69.1 million).

 

3

Employees

The Company had 4,360 employees as of June 30, 2025, including 1,311 employees from TTP Car, Inc.

Conference Call Information

The Company will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Thursday, July 31, 2025 (8:00 p.m. Beijing Time on the same day).

Please register in advance of the conference call using the registration link provided below. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Registration Link: https://register-conf.media-server.com/register/BI8cf7e0ee3ea6428a9b2a6318555713d0

Please use the conference access information to join the call 10 minutes before the call is scheduled to begin.

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

About Autohome

Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. Its mission is to relentlessly reduce auto industry decision-making and transaction costs driven by advanced technology. Autohome provides occupationally 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. 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 https://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.

 

4

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, Non-GAAP basic and diluted EPS and earnings per ADS, Adjusted net margin and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome as net income attributable to Autohome excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisition, investment loss relating to non-operating impact of a write-down of the initial investment in a financial product, and loss/(gain) pickup of equity method 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 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 divided by the basic and diluted weighted average number of ADSs. We define Adjusted net margin as Adjusted Net Income attributable to Autohome divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome 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 “Unaudited Reconciliation of non-GAAP and GAAP Results” set forth at the end of this press release.

For investor and media inquiries, please contact:

Autohome Inc.

Sterling Song

Investor Relations Director

Tel: +86-10-5985-7483

E-mail: ir@autohome.com.cn

Christensen China Limited

Suri Cheng

Tel: +86-185-0060-8364

E-mail: suri.cheng@christensencomms.com

 

5

AUTOHOME INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

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

 

		For three months ended June 30,												For six months ended June 30,
		2024				2025								2024				2025
		RMB				RMB				US$				RMB				RMB				US$
Net revenues:
Media services			432,858				279,399				39,003				760,289				521,578				72,809
Leads generation services			820,271				732,581				102,264				1,546,694				1,377,724				192,323
Online marketplace and others			619,425				746,140				104,157				1,174,636				1,312,636				183,237
Total net revenues			1,872,554				1,758,120				245,424				3,481,619				3,211,938				448,369
Cost of revenues			(346,102	)			(503,424	)			(70,275	)			(646,994	)			(818,944	)			(114,320	)
Gross profit			1,526,452				1,254,696				175,149				2,834,625				2,392,994				334,049
Operating expenses:
Sales and marketing expenses			(752,543	)			(629,982	)			(87,942	)			(1,393,819	)			(1,173,621	)			(163,831	)
General and administrative expenses			(117,564	)			(132,665	)			(18,519	)			(267,109	)			(263,688	)			(36,810	)
Product development expenses			(315,230	)			(253,017	)			(35,320	)			(651,297	)			(527,158	)			(73,588	)
Total operating expenses			(1,185,337	)			(1,015,664	)			(141,781	)			(2,312,225	)			(1,964,467	)			(274,229	)
Other operating income, net			71,279				57,611				8,042				166,072				101,471				14,165
Operating profit			412,394				296,643				41,410				688,472				529,998				73,985
Interest and investment income, net			189,053				165,123				23,050				409,027				342,194				47,768
Share of results of equity method investments			4,640				(322	)			(45	)			(44,493	)			(11,958	)			(1,669	)
Income before income taxes			606,087				461,444				64,415				1,053,006				860,234				120,084
Income tax expense			(102,165	)			(60,596	)			(8,459	)			(170,566	)			(116,925	)			(16,322	)
Net income			503,922				400,848				55,956				882,440				743,309				103,762
Net loss attributable to noncontrolling interests			20,839				14,810				2,067				36,820				28,984				4,046
Net income attributable to Autohome			524,761				415,658				58,023				919,260				772,293				107,808
Accretion of mezzanine equity			(42,687	)			(47,355	)			(6,611	)			(84,358	)			(93,009	)			(12,984	)
Accretion attributable to noncontrolling interests			27,599				30,563				4,266				54,547				60,032				8,380
Net income attributable to ordinary shareholders			509,673				398,866				55,678				889,449				739,316				103,204
Earnings per share attributable to ordinary shareholders
Basic			1.05				0.85				0.12				1.84				1.57				0.22
Diluted			1.05				0.85				0.12				1.83				1.56				0.22
Earnings per ADS attributable to ordinary shareholders (one ADS equals for four ordinary shares)
Basic			4.20				3.40				0.47				7.34				6.26				0.87
Diluted			4.19				3.38				0.47				7.32				6.23				0.87
Weighted average shares used to compute earnings per share attributable to ordinary shareholders:
Basic			484,860,625				469,269,006				469,269,006				484,569,763				472,358,950				472,358,950
Diluted			486,591,693				471,358,186				471,358,186				486,029,303				474,595,274				474,595,274

 

6

AUTOHOME INC.

UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS

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

 

		For three months ended June 30,												For six months ended June 30,
		2024				2025								2024				2025
		RMB				RMB				US$				RMB				RMB				US$
Net income attributable to Autohome			524,761				415,658				58,023				919,260				772,293				107,808
Plus: income tax expense			103,505				61,936				8,646				173,247				119,605				16,696
Plus: depreciation of property and equipment			31,750				25,846				3,608				65,284				53,216				7,429
Plus: amortization of intangible assets			9,650				9,595				1,339				19,300				19,216				2,682
EBITDA			669,666				513,035				71,616				1,177,091				964,330				134,615
Plus: share-based compensation expenses			41,188				52,311				7,302				89,495				97,801				13,652
Adjusted EBITDA			710,854				565,346				78,918				1,266,586				1,062,131				148,267
Net income attributable to Autohome			524,761				415,658				58,023				919,260				772,293				107,808
Plus: amortization of intangible assets resulting from business acquisition			9,583				9,583				1,338				19,166				19,166				2,675
Plus: share-based compensation expenses			41,188				52,311				7,302				89,495				97,801				13,652
Plus: investment loss arising from one of financial products3			2,906				—				—				2,906				—				—
Plus: (gain)/loss on equity method investments, net			(4,640	)			322				45				44,493				11,958				1,669
Plus: tax effects of the adjustments			(1,360	)			(2,147	)			(300	)			(8,954	)			(4,721	)			(659	)
Adjusted net income attributable to Autohome			572,438				475,727				66,408				1,066,366				896,497				125,145
Net income attributable to Autohome			524,761				415,658				58,023				919,260				772,293				107,808
Net margin			28.0	%			23.6	%			23.6	%			26.4	%			24.0	%			24.0	%
Adjusted net income attributable to Autohome			572,438				475,727				66,408				1,066,366				896,497				125,145
Adjusted net margin			30.6	%			27.1	%			27.1	%			30.6	%			27.9	%			27.9	%
Non-GAAP earnings per share
Basic			1.18				1.01				0.14				2.20				1.90				0.27
Diluted			1.18				1.01				0.14				2.19				1.89				0.26
Non-GAAP earnings per ADS (one ADS equals for four ordinary shares)
Basic			4.72				4.06				0.57				8.80				7.59				1.06
Diluted			4.71				4.04				0.56				8.78				7.56				1.05
Weighted average shares used to compute non-GAAP earnings per share:
Basic			484,860,625				469,269,006				469,269,006				484,569,763				472,358,950				472,358,950
Diluted			486,591,693				471,358,186				471,358,186				486,029,303				474,595,274				474,595,274

3	It represented the loss of an investment with fair value below its initial investment, which was recognized at “interest and investment income, net”. The impact was considered to be not directly related to the Company’s operating activities.

 

7

AUTOHOME INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands, except as noted)

 

		As of December 31,				As of June 30,
		2024				2025
		RMB				RMB				US$
ASSETS
Current assets
Cash and cash equivalents			1,693,597				2,878,872				401,875
Restricted cash			88,515				93,891				13,107
Short-term investments			21,621,992				19,174,574				2,676,667
Accounts receivable, net			1,358,849				1,483,888				207,143
Amounts due from related parties, current			63,957				60,913				8,503
Prepaid expenses and other current assets			336,941				258,786				36,125
Total current assets			25,163,851				23,950,924				3,343,420
Non-current assets
Restricted cash, non-current			5,000				5,000				698
Property and equipment, net			204,049				179,129				25,005
Goodwill and intangible assets, net			4,069,637				4,032,550				562,922
Long-term investments			339,247				327,289				45,688
Deferred tax assets			308,246				308,246				43,029
Amounts due from related parties, non-current			3,521				5,825				813
Other non-current assets			128,074				124,698				17,407
Total non-current assets			5,057,774				4,982,737				695,562
Total assets			30,221,625				28,933,661				4,038,982
LIABILITIES AND EQUITY
Current liabilities
Accrued expenses and other payables			2,931,869				1,954,966				272,903
Advance from customers			106,276				112,312				15,678
Deferred revenue			276,894				822,995				114,886
Income tax payable			185,976				133,458				18,630
Amounts due to related parties			38,250				56,831				7,933
Dividends payable			990,529				—				—
Total current liabilities			4,529,794				3,080,562				430,030
Non-current liabilities
Other liabilities			23,103				33,516				4,679
Deferred tax liabilities			468,078				462,136				64,512
Total non-current liabilities			491,181				495,652				69,191
Total liabilities			5,020,975				3,576,214				499,221
MEZZANINE EQUITY
Convertible redeemable noncontrolling interests			1,931,529				2,024,538				282,612
EQUITY
Total Autohome shareholders’ equity			23,951,737				24,104,561				3,364,867
Noncontrolling interests			(682,616	)			(771,652	)			(107,718	)
Total equity			23,269,121				23,332,909				3,257,149
Total liabilities, mezzanine equity and equity			30,221,625				28,933,661				4,038,982

 

 

8

UNAUDITED RECONCILIATION BETWEEN U.S. GAAP AND IFRS Accounting Standards

The unaudited condensed consolidated statements of income for the six month ended June 30, 2025 and the unaudited condensed consolidated balance sheets as of June 30, 2025 (collectively, the “Unaudited Interim Financial Statements”) of Autohome Inc., its subsidiaries, the variable interest entities, and the subsidiaries of the variable interest entities (collectively, the “Company”) are prepared in accordance with the accounting principles generally accepted in the United States of America (the “U.S. GAAP”), and the differences between U.S. GAAP and IFRS Accounting Standards issued by the International Accounting Standards Board (together, the “Reconciliation Statement”) have been disclosed in the Appendix — Unaudited Reconciliation Between U.S. GAAP and IFRS Accounting Standards attached herein.

PricewaterhouseCoopers, the auditor of the Company in Hong Kong, has performed a limited assurance engagement on the Reconciliation Statement in accordance with International Standards on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” issued by the International Auditing and Assurance Standards Board.

Appendix

The Unaudited Interim Financial Statements of the Company are prepared in accordance with U.S. GAAP, which differ in certain respects from IFRS Accounting Standards. The effects of material differences between the Unaudited Interim Financial Statements prepared under U.S. GAAP and IFRS Accounting Standards are as follows:

Reconciliation of unaudited condensed consolidated statements of income:

 

		For six months ended June 30,
		2024				2025
		RMB				RMB
Reconciliation of net income in the consolidated statements of income		(in thousands)
Net income as reported under U.S. GAAP			882,440				743,309
IFRS Accounting Standards adjustments:
Preferred shares (Note a)			126,264				64,042
Leases (Note b)			(285	)			1,253
Share-based compensations (Note c)			(16,419	)			(8,625	)
Net income as reported under IFRS Accounting Standards			992,000				799,979

Reconciliation of unaudited condensed consolidated balance sheets:

 

		As of December 31,				As of June 30,
		2024				2025
		RMB				RMB
Reconciliation of total equity in the consolidated balance sheets		(in thousands)
Total equity as reported under U.S. GAAP			23,269,121				23,332,909
IFRS Accounting Standards adjustments:
Preferred shares (Note a)			1,693,068				1,858,262
Leases (Note b)			(8,019	)			(6,766	)
Total equity as reported under IFRS Accounting Standards			24,954,170				25,184,405

 

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Notes:

Basis of Preparation

The Directors of the Company are responsible for preparation of the Reconciliation Statement in accordance with the relevant requirements of the Hong Kong Listing Rules. The Reconciliation Statement was prepared based on the Company’s unaudited interim condensed consolidated financial information for the six months ended June 30, 2025 prepared under U.S. GAAP, with adjustments made (if any) thereto in arriving at the unaudited financial information of the Company prepared under IFRS Accounting Standards. The adjustments reflect the differences between the Company’s accounting policies under U.S. GAAP and IFRS Accounting Standards.

 

(a)	Preferred Shares

Under U.S. GAAP, the preferred shares of the Company are accounted for as mezzanine equity, which is subsequently accreted to the amount which equals to redemption value of each series of preferred shares.

Under IFRS Accounting Standards, the preferred shares, which are redeemable at the option of the holder, represent a financial liability. And the financial liability is measured at fair value and changes in the fair value are reflected in the consolidated statements of comprehensive income. The amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of the liability shall be recognized in other comprehensive income/(loss); the remaining amount of change in the fair value of the liability shall be recognized in profit or loss.

Accordingly, the reconciliation includes a fair value profit change of RMB126.26 million and RMB64.04 million recognized in the consolidated statements of comprehensive income for each of the six months ended June 30, 2024 and 2025, respectively. The reconciliation also includes the difference between mezzanine equity under U.S. GAAP and financial liabilities under IFRS Accounting Standards of RMB1,693.07 million and RMB1,858.26 million as at December 31, 2024 and June 30, 2025, respectively.

 

(b)

Leases

For operating leases under U.S. GAAP, the subsequent measurement of the lease liability is based on the present value of the remaining lease payments using the discount rate determined at lease commencement, while the right-of-use asset is remeasured at the amount of the lease liability, adjusted for the remaining balance of any lease incentives received, cumulative prepaid or accrued rents, unamortized initial direct costs and any impairment. This treatment under U.S. GAAP results in straight line expense being incurred over the lease term, as opposed to IFRS Accounting Standards which generally yields a “front-loaded” expense with more expense recognized in earlier years of the lease.

Accordingly, the reconciliation includes an expenses difference recognized in the consolidated statements of comprehensive income of RMB0.29 million (negative) and RMB1.25 million for each of the six months ended June 30, 2024 and 2025, respectively. The reconciliation also includes a difference in total equity of RMB8.02 million (negative) and RMB6.77 million (negative) as at December 31, 2024 and June 30, 2025, respectively.

 

(c)	Share-based Compensation

Under U.S. GAAP, the Company has 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 dates, if the performance conditions are all set at inception and independent for each year, each tranche is accounted for as a separate award with its own requisite service period. Compensation cost is 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 IFRS Accounting Standards, the accelerated method is required to recognize compensation expense for all employee equity awards granted with graded vesting.

Accordingly, the reconciliation includes an expense recognition difference in the consolidated statements of comprehensive income of RMB16.42 million (negative) and RMB8.63 million (negative) for each of the six months ended June 30, 2024 and 2025, respectively.

 

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