Autohome Inc. Announces US$200 Million New Share Repurchase Program

Rhea-AI Summary

Autohome Inc. (NYSE: ATHM; HKEX: 2518), China's leading online automotive consumer platform, has announced a new share repurchase program approved by its board of directors. The program, effective from September 4, 2024, authorizes the company to repurchase up to US$200 million worth of its shares, including ADSs, over the next 12 months.

The repurchases may be executed through various means, including open market transactions, privately negotiated deals, and block trades, subject to market conditions and applicable regulations. The board will periodically review the program and may adjust its terms or size. Autohome plans to fund the repurchases using its existing cash balance.

Positive

• Authorization of a substantial US$200 million share repurchase program
• Potential increase in shareholder value through stock buybacks
• Flexibility in repurchase methods, allowing for optimal execution
• Use of existing cash balance to fund repurchases, indicating strong liquidity

Negative

• Reduction in cash reserves that could be used for other strategic investments
• Potential limitation on future growth opportunities due to allocation of funds to buybacks

BEIJING, Sept. 4, 2024 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced that its board of directors (the "Board") has approved a new share repurchase program (the "New Share Repurchase Program"), effective from September 4, 2024. Pursuant to the New Share Repurchase Program, the Company may repurchase up to US$200 million worth of its shares (including ADSs) over the next 12 months.

The Company's proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The Board will review the authorized share repurchase program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund repurchases from its existing cash balance.

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:

In China:

Autohome Inc.
Investor Relations
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 

View original content:https://www.prnewswire.com/news-releases/autohome-inc-announces-us200-million-new-share-repurchase-program-302237589.html

SOURCE Autohome Inc.

FAQ

What is the size of Autohome's (ATHM) new share repurchase program?

Autohome (ATHM) has announced a new share repurchase program of up to US$200 million worth of its shares, including ADSs, over the next 12 months.

When does Autohome's (ATHM) new share repurchase program begin?

Autohome's (ATHM) new share repurchase program is effective from September 4, 2024.

How will Autohome (ATHM) fund its new share repurchase program?

Autohome (ATHM) plans to fund the share repurchases from its existing cash balance.

What methods will Autohome (ATHM) use for its share repurchases?

Autohome (ATHM) may repurchase shares through open market transactions, privately negotiated transactions, block trades, and other legally permissible means, depending on market conditions and applicable regulations.