Autohome Inc. Announces Change in Controlling Shareholder and Management Change

Rhea-AI Summary

Autohome Inc. (NYSE: ATHM; HKEX: 2518) announced a significant change in its controlling shareholder as Yun Chen Capital Cayman agreed to sell 200,884,012 ordinary shares (41.91%) to CARTECH HOLDING COMPANY, a Haier Group subsidiary, for approximately US$1.8 billion. The transaction requires regulatory approvals, after which Yun Chen will retain 23,916,500 shares and cease to be the controlling shareholder.

Additionally, the company announced leadership changes with Mr. Tao Wu's resignation as executive director and CEO, effective February 20, 2025. Mr. Song Yang, who has served as Senior Vice President since October 2021, has been appointed as the new executive director and CEO. Yang brings over 20 years of automotive industry experience from positions at Ford China, Borgward Passenger Vehicle Group, and Dongfeng Nissan.

Positive

• Sale of 41.91% stake values the company at approximately US$4.3 billion
• New CEO brings extensive automotive industry experience from major companies
• Directors expect no material adverse impact on financial position and operations

Negative

• Change in controlling shareholder could lead to strategic uncertainty
• Sudden CEO resignation might indicate internal challenges

Insights

Investment Banking Analyst

The acquisition of Autohome's controlling stake by Haier Group represents a pivotal shift in China's automotive digital landscape. The $1.8 billion transaction for 41.91% ownership signals Haier's strategic push into automotive technology and digital services, leveraging Autohome's dominant position in China's online automotive marketplace.

Several key aspects warrant attention:

• The transaction implies a valuation of approximately $8.96 per share for the transferred stake, which appears to be at a significant discount to current market prices. This pricing structure suggests complex strategic considerations beyond pure market valuations.
• Ping An's retention of a smaller ~5% stake through Yun Chen indicates a structured transition rather than a complete exit, potentially maintaining some strategic alignment while reducing exposure.
• The appointment of Song Yang as CEO is strategically significant. His diverse experience across traditional automakers (Ford, Nissan) and new mobility players positions him well to navigate the evolving automotive ecosystem, particularly as digitalization and new energy vehicles reshape the industry.

The transaction's implications extend beyond immediate ownership changes:

• Haier's entry could accelerate Autohome's technological transformation, potentially integrating IoT capabilities and smart home technologies with automotive platforms.
• The deal structure suggests potential regulatory considerations, particularly regarding data security and competition in China's digital economy.
• The timing coincides with significant transitions in China's automotive sector, including the rise of intelligent connected vehicles and digital retail transformation.

While management states no material adverse impact is expected, this ownership transition could catalyze strategic shifts in Autohome's business model and market positioning. The combination of Haier's industrial expertise with Autohome's digital capabilities could create new opportunities in connected mobility services and automotive e-commerce.

BEIJING, Feb. 20, 2025 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced that the Company has been informed by Yun Chen Capital Cayman ("Yun Chen", a subsidiary of Ping An), its controlling shareholder, that on February 20, 2025, Yun Chen entered into a share sale and purchase agreement (the "Share Sale and Purchase Agreement") with CARTECH HOLDING COMPANY, a subsidiary of Haier Group Corporation (the "Purchaser"). Pursuant to the Share Sale and Purchase Agreement, Yun Chen has agreed to sell, and the Purchaser has agreed to acquire, 200,884,012 ordinary shares of the Company, representing approximately 41.91%^[1] of the issued and outstanding ordinary shares of the Company, at a consideration of approximately US$1.8 billion (the "Share Transfer").

The Share Transfer shall be completed upon satisfaction of the conditions precedent set out in the Share Sale and Purchase Agreement, including, without limitation, obtaining the necessary regulatory approvals. Upon the completion of the Share Transfer, Yun Chen will hold 23,916,500 ordinary shares of the Company, and Yun Chen will cease to be the controlling shareholder of the Company.

The directors of our Company do not expect that the Share Transfer, if completed, will have any material adverse impact on the financial position and business operation of the Company.

The Company further announces that Mr. Tao Wu has resigned from his positions as an executive director and the chief executive officer (the "Chief Executive Officer") of the Company, effective February 20, 2025. The Company would like to take the opportunity to express its sincere gratitude to Mr. Wu for his valuable contribution to the Company during his tenure.

Furthermore, the Company is pleased to announce that Mr. Song Yang has been appointed as an executive director of the Company and the Chief Executive Officer, effective February 20, 2025. The directors of our Company determined that Mr. Yang has valuable and relevant qualifications and experience, and it is in the best interests of the Company to appoint Mr. Yang as an executive director of the Company and the Chief Executive Officer.  

Mr. Yang has over 20 years of experience in automotive industry in both China and the U.S. Since he joined Autohome in October 2021, Mr. Yang has served as Senior Vice President overseeing OEM business, new retail business, used car business, and TTP Car Inc.. Before joining Autohome, Mr. Yang held different leadership positions at multiple automakers. From April 2019 to September 2021, he worked at Ford China, serving as President of NDSD (National Distribution & Service Division) and Deputy General Manager of the Passenger Vehicle Division. Prior to that, he served as CEO of Borgward Passenger Vehicle Group and the Chairman of its North American R&D Center from February 2018 to February 2019. He held several key leadership positions in marketing and sales at Dongfeng Nissan and NNA (Nissan North America) from May 2005 to December 2014. Mr. Yang received his bachelor's degree in economics from Fudan University in July 1995.

Mr. Quan Long, the chairman of the Board, stated, "We are delighted to welcome Mr. Song Yang to join in the Board as our executive director and Chief Executive Officer. Mr. Yang has been working in automotive industry both in China and overseas markets for more than 20 years, where he played different crucial leading roles in multiple important automakers. We strongly believe that his leadership and extensive industry experience will be a great asset to the future development of Autohome. The Company looks forward to working with him closely in the future."

Mr. Long continued, "On behalf of the Board, I would like to express our sincere gratitude to Mr. Wu for his professional dedication and contributions to the Company. We wish him continued success in all of his future endeavors."

About Autohome Inc.

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. Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services. For further information, please visit 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. 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. 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.

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 

 

[1] Based on 479,288,580 issued and outstanding ordinary shares of the Company (excluding 30,099,020 treasury shares and ordinary shares that had been issued and reserved for the purpose of the share incentive plans of the Company) as at December 31, 2024.

 

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SOURCE Autohome Inc.

FAQ

What is the value of Autohome's (ATHM) stake sale to Haier Group?

Haier Group's subsidiary CARTECH HOLDING COMPANY is acquiring a 41.91% stake in Autohome for approximately US$1.8 billion.

When will ATHM's ownership transfer to Haier be completed?

The share transfer will be completed upon satisfaction of conditions precedent, including obtaining necessary regulatory approvals.

Who is the new CEO of Autohome (ATHM) as of February 2025?

Mr. Song Yang has been appointed as the new executive director and CEO of Autohome, effective February 20, 2025.

What percentage of Autohome (ATHM) shares will Yun Chen retain after the sale?

After the sale, Yun Chen will hold 23,916,500 ordinary shares and will cease to be the controlling shareholder of Autohome.

What is the background of Autohome's new CEO Song Yang?

Song Yang has over 20 years of automotive industry experience, including roles at Ford China, Borgward Passenger Vehicle Group, and Dongfeng Nissan, and has served as Autohome's Senior Vice President since October 2021.