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1、1 Autohome Inc.Announces Unaudited Second Quarter and Interim 2024 Financial Results BEIJING,July 31,2024 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 month

2、s and six months ended June 30,2024.Second Quarter 2024 Highlights1 Net revenues in the second quarter of 2024 were RMB1,872.6 million(US$257.7 million),compared to RMB1,833.0 million in the corresponding period of 2023.Net income attributable to Autohome in the second quarter of 2024 was RMB524.8 m

3、illion(US$72.2 million),compared to RMB504.7 million in the corresponding period of 2023,while net income attributable to ordinary shareholders in the second quarter of 2024 was RMB509.7 million(US$70.1 million),compared to RMB491.2 million in the corresponding period of 2023.Adjusted net income att

4、ributable to Autohome(Non-GAAP)2 in the second quarter of 2024 was RMB572.4 million(US$78.8 million),compared to RMB569.5 million in the corresponding period of 2023.Mr.Tao Wu,Chief Executive Officer of Autohome,stated,“We are pleased to deliver another solid quarter,highlighted by sustained growth

5、in net revenues,a substantial increase in user traffic,and remarkable progress made in our innovative business initiatives.On content,our diverse and high-quality offerings,bolstered by our strong IP content matrix,has worked to consistently expand our user base and enhance user engagement.According

6、 to QuestMobile,our number of average mobile daily active users grew by 8.3%year-over-year,reaching 67.91 million in June,underscoring our leading position in the automotive media vertical.For our innovative businesses,we launched our Satellite Plan in May,a strategic initiative to establish satelli

7、te stores in lower-tier cities adjacent to flagship Autohome Space stores.This initiative will accelerate our network expansion,facilitating deeper penetration into broader geographical markets.Looking ahead,we remain committed to exploring new business areas and leveraging Ping Ans resources to enh

8、ance our long-term industry competitiveness.”Mr.Craig Yan Zeng,Chief Financial Officer of Autohome,added,“Our focus on innovative businesses has led to robust growth in our data products and new energy vehicle(“NEV”)business,with double-digit year-over-year increases in quarterly revenues.We have ma

9、intained a healthy balance sheet while driving the development of our businesses and fulfilling our commitment to provide stable shareholder returns.Moving forward,we will continue to focus on areas of emerging growth while maintaining stringent cost controls to ensure long-term shareholder value.”1

10、 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 RMB7.2672 on June 28,2024 in the City

11、 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

12、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.2 Unaudited Second Quarter 2024 Financial Results Net Revenues Net revenues in the second quarter of 2024 were RMB1,872.6 mill

13、ion(US$257.7 million),compared to RMB1,833.0 million in the corresponding period of 2023.Media services revenues were RMB432.9 million(US$59.6 million)in the second quarter of 2024,compared to RMB532.0 million in the corresponding period of 2023.Leads generation services revenues were RMB820.3 milli

14、on(US$112.9 million)in the second quarter of 2024,compared to RMB759.6 million in the corresponding period of 2023.Online marketplace and others revenues were RMB619.4 million(US$85.2 million)in the second quarter of 2024,compared to RMB541.4 million in the corresponding period of 2023.Cost of Reven

15、ues Cost of revenues was RMB346.1 million(US$47.6 million)in the second quarter of 2024,compared to RMB330.2 million in the corresponding period of 2023.Share-based compensation expense included in cost of revenues in the second quarter of 2024 was RMB1.9 million(US$0.3 million),compared to RMB1.8 m

16、illion in the corresponding period of 2023.Operating Expenses Operating expenses were RMB1,185.3 million(US$163.1 million)in the second quarter of 2024,compared to RMB1,228.1 million in the corresponding period of 2023.Sales and marketing expenses were RMB752.5 million(US$103.6 million)in the second

17、 quarter of 2024,compared to RMB824.1 million in the corresponding period of 2023,due primarily to a decrease in marketing and promotional expenses.Share-based compensation expenses included in sales and marketing expenses in the second quarter of 2024 were RMB10.1 million(US$1.4 million),compared t

18、o RMB12.3 million in the corresponding period of 2023.General and administrative expenses were RMB117.6 million(US$16.2 million)in the second quarter of 2024,compared to RMB91.0 million in the corresponding period of 2023.Share-based compensation expenses included in general and administrative expen

19、ses in the second quarter of 2024 were RMB10.4 million(US$1.4 million),compared to RMB8.9 million in the corresponding period of 2023.Product development expenses were RMB315.2 million(US$43.4 million)in the second quarter of 2024,compared to RMB313.0 million in the corresponding period of 2023.Shar

20、e-based compensation expenses included in product development expenses in the second quarter of 2024 were RMB18.8 million(US$2.6 million),compared to RMB18.7 million in the corresponding period of 2023.Operating Profit Operating profit was RMB412.4 million(US$56.7 million)in the second quarter of 20

21、24,compared to RMB341.5 million in the corresponding period of 2023.Income Tax Expense 3 Income tax expense was RMB102.2 million(US$14.1 million)in the second quarter of 2024,compared to RMB35.8 million in the corresponding period of 2023.The increase in income tax expense was primarily attributable

22、 to a withholding tax related to the declared cash dividend plan for 2024 and beyond,and the tax filing adjustments of the previous year.Net Income Attributable to Autohome Net income attributable to Autohome was RMB524.8 million(US$72.2 million)in the second quarter of 2024,compared to RMB504.7 mil

23、lion in the corresponding period of 2023.Net Income Attributable to Ordinary Shareholders and Earnings per Share/ADS Net income attributable to ordinary shareholders was RMB509.7 million(US$70.1 million)in the second quarter of 2024,compared to RMB491.2 million in the corresponding period of 2023.Ba

24、sic and diluted earnings per share(“EPS”)were RMB1.05(US$0.14)and RMB1.05(US$0.14),respectively,in the second quarter of 2024,compared to basic and diluted EPS of RMB1.00 and RMB1.00,respectively,in the corresponding period of 2023.Basic and diluted earnings per ADS were RMB4.20(US$0.58)and RMB4.19(

25、US$0.58),respectively,in the second quarter of 2024,compared to basic and diluted earnings per ADS of RMB3.99 and RMB3.98,respectively,in the corresponding period of 2023.Adjusted Net Income Attributable to Autohome(Non-GAAP)and Non-GAAP EPS/ADS Adjusted net income attributable to Autohome(Non-GAAP)

26、was RMB572.4 million(US$78.8 million)in the second quarter of 2024,compared to RMB569.5 million in the corresponding period of 2023.Non-GAAP basic and diluted EPS were RMB1.18(US$0.16)and RMB1.18(US$0.16),respectively,in the second quarter of 2024,compared to non-GAAP basic and diluted EPS of RMB1.1

27、6 and RMB1.15,respectively,in the corresponding period of 2023.Non-GAAP basic and diluted earnings per ADS were RMB4.72(US$0.65)and RMB4.71(US$0.65),respectively,in the second quarter of 2024,compared to non-GAAP basic and diluted earnings per ADS of RMB4.62 and RMB4.61,respectively,in the correspon

28、ding period of 2023.Balance Sheet and Cash Flow As of June 30,2024,the Company had cash and cash equivalents and short-term investments of RMB23.47 billion(US$3.23 billion).Net cash provided by operating activities in the second quarter of 2024 was RMB452.0 million(US$62.2 million).Employees The Com

29、pany had 5,078 employees as of June 30,2024,including 1,755 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 Wednesday,July 31,2024(8:00 p.m.Beijing Time on the same day).Please register in advance of the confere

30、nce 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.4 Registration Link:https:/ Please use the conference access information to join the call 10 minut

31、es before the call is scheduled to begin.Additionally,a live and archived webcast of the conference call will be available at https:/ 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

32、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 li

33、brary,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 ca

34、mpaigns.Further,the Companys dealer subscription and advertising services allow dealers to market their inventory and services through Autohomes platform,extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them.The Company

35、 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 tr

36、ansactions,and aftermarket services.For further information,please visit https:/ 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-loo

37、king statements can be identified by terminology such as will,expects,anticipates,future,intends,plans,believes,estimates and similar statements.Among other things,Autohomes business outlook,Autohomes strategic and operational plans and quotations from management in this announcement contain forward

38、-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 shareh

39、olders,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 Autohomes beliefs and expectations,are forward-looking statements.Forward-looking statements in

40、volve 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:Autohomes goals and strategies;Autohomes future business development,results of operations and f

41、inancial condition;the expected growth of the online automobile advertising market in China;Autohomes ability to attract and retain users and advertisers and further enhance its brand recognition;Autohomes expectations regarding demand for and market acceptance of its products and services;competiti

42、on 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 inc

43、luded in Autohomes 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 un

44、der applicable law.5 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 def

45、ine 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 fi

46、nancial 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 s

47、hares.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

48、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 ou

49、r 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 a

50、ssess 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 sho

51、uld 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 mo

52、re 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.Investor Relations Sterling Song Investor Relations Directo

53、r Tel:+86-10-5985-7483 E-mail: Christensen China Limited Suri Cheng Tel:+86-185-0060-8364 E-mail: 6 AUTOHOME INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (Amount in thousands,except per share/per ADS data)For three months ended June 30,For six months ended June 30,2023 2024 202

54、3 2024 RMB RMB US$RMB RMB US$Net revenues:Media services 532,005 432,858 59,563 893,473 760,289 104,619 Leads generation services 759,635 820,271 112,873 1,440,269 1,546,694 212,832 Online marketplace and others 541,394 619,425 85,236 1,032,921 1,174,636 161,635 Total net revenues 1,833,034 1,872,55

55、4 257,672 3,366,663 3,481,619 479,086 Cost of revenues(330,227)(346,102)(47,625)(670,441)(646,994)(89,029)Gross profit 1,502,807 1,526,452 210,047 2,696,222 2,834,625 390,057 Operating expenses:Sales and marketing expenses (824,081)(752,543)(103,553)(1,347,197)(1,393,819)(191,796)General and adminis

56、trative expenses (90,979)(117,564)(16,177)(240,135)(267,109)(36,755)Product development expenses (313,010)(315,230)(43,377)(637,376)(651,297)(89,621)Total operating expenses(1,228,070)(1,185,337)(163,107)(2,224,708)(2,312,225)(318,172)Other operating income,net 66,772 71,279 9,808 133,160 166,072 22

57、,852 Operating profit 341,509 412,394 56,748 604,674 688,472 94,737 Interest and investment income,net 202,813 189,053 26,015 427,828 409,027 56,284(Loss)/income from equity method investments (1,690)4,640 638 (33,125)(44,493)(6,122)Income before income taxes 542,632 606,087 83,401 999,377 1,053,006

58、 144,899 Income tax expense(35,796)(102,165)(14,058)(90,477)(170,566)(23,471)Net income 506,836 503,922 69,343 908,900 882,440 121,428 Net(income)/loss attributable to noncontrolling interests(2,102)20,839 2,868 1,336 36,820 5,067 Net income attributable to Autohome 504,734 524,761 72,211 910,236 91

59、9,260 126,495 Accretion of mezzanine equity(38,686)(42,687)(5,874)(75,185)(84,358)(11,608)Accretion attributable to noncontrolling interests 25,164 27,599 3,798 48,913 54,547 7,506 Net income attributable to ordinary shareholders 491,212 509,673 70,135 883,964 889,449 122,393 Earnings per share attr

60、ibutable to ordinary shareholders Basic 1.00 1.05 0.14 1.79 1.84 0.25 Diluted 1.00 1.05 0.14 1.79 1.83 0.25 Earnings per ADS attributable to ordinary shareholders(one ADS equals for four ordinary shares)Basic 3.99 4.20 0.58 7.17 7.34 1.01 Diluted 3.98 4.19 0.58 7.15 7.32 1.01 Weighted average shares

61、 used to compute earnings per share attributable to ordinary shareholders:Basic 492,534,428 484,860,625 484,860,625 492,927,049 484,569,763 484,569,763 Diluted 493,624,704 486,591,693 486,591,693 494,261,429 486,029,303 486,029,303 7 AUTOHOME INC.UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULT

62、S(Amount in thousands,except per share/per ADS data)For three months ended June 30,For six months ended June 30,2023 2024 2023 2024 RMB RMB US$RMB RMB US$Net income attributable to Autohome 504,734 524,761 72,211 910,236 919,260 126,495 Plus:income tax expense 37,136 103,505 14,243 93,157 173,247 23

63、,840 Plus:depreciation of property and equipment 42,259 31,750 4,369 90,197 65,284 8,983 Plus:amortization of intangible assets 10,798 9,650 1,328 21,638 19,300 2,656 EBITDA 594,927 669,666 92,151 1,115,228 1,177,091 161,974 Plus:share-based compensation expenses 41,628 41,188 5,668 87,813 89,495 12

64、,315 Adjusted EBITDA 636,555 710,854 97,819 1,203,041 1,266,586 174,289 Net income attributable to Autohome 504,734 524,761 72,211 910,236 919,260 126,495 Plus:amortization of intangible assets resulting from business acquisition 10,722 9,583 1,319 21,444 19,166 2,637 Plus:share-based compensation e

65、xpenses 41,628 41,188 5,668 87,813 89,495 12,315 Plus:investment loss arising from one financial products3 14,532 2,906 400 8,719 2,906 400 Plus:loss/(gain)on equity method investments,net 1,690 (4,640)(638)33,125 44,493 6,122 Plus:tax effects of the adjustments(3,840)(1,360)(187)(8,360)(8,954)(1,23

66、2)Adjusted net income attributable to Autohome 569,466 572,438 78,773 1,052,977 1,066,366 146,737 Net income attributable to Autohome 504,734 524,761 72,211 910,236 919,260 126,495 Net margin 27.5%28.0%28.0%27.0%26.4%26.4%Adjusted net income attributable to Autohome 569,466 572,438 78,773 1,052,977

67、1,066,366 146,737 Adjusted net margin 31.1%30.6%30.6%31.3%30.6%30.6%Non-GAAP earnings per share Basic 1.16 1.18 0.16 2.14 2.20 0.30 Diluted 1.15 1.18 0.16 2.13 2.19 0.30 Non-GAAP earnings per ADS(one ADS equals for four ordinary shares)Basic 4.62 4.72 0.65 8.54 8.80 1.21 Diluted 4.61 4.71 0.65 8.52

68、8.78 1.21 Weighted average shares used to compute non-GAAP earnings per share:Basic 492,534,428 484,860,625 484,860,625 492,927,049 484,569,763 484,569,763 Diluted 493,624,704 486,591,693 486,591,693 494,261,429 486,029,303 486,029,303 3 It represented the loss of an investment with fair value below

69、 its initial investment,which was recognized at“interest and investment income,net”.The impact was considered to be not directly related to the Companys operating activities.8 AUTOHOME INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET(Amount in thousands,except as noted)As of December 31,As of June

70、 30,2023 2024 RMB RMB US$ASSETS Current assets Cash and cash equivalents 4,996,353 3,881,952 534,174 Restricted cash 126,794 107,964 14,856 Short-term investments 18,552,354 19,593,011 2,696,088 Accounts receivable,net 1,472,489 1,350,567 185,844 Amounts due from related parties,current 16,439 30,23

71、3 4,160 Prepaid expenses and other current assets 360,559 423,411 58,263 Total current assets 25,524,988 25,387,138 3,493,385 Non-current assets Restricted cash,non-current 5,000 5,000 688 Property and equipment,net 200,860 194,067 26,705 Goodwill and intangible assets,net 4,143,968 4,106,799 565,11

72、4 Long-term investments 448,341 403,848 55,571 Deferred tax assets 295,598 295,598 40,676 Amounts due from related parties,non-current 16,048 13,839 1,904 Other non-current assets 200,928 157,102 21,619 Total non-current assets 5,310,743 5,176,253 712,277 Total assets 30,835,731 30,563,391 4,205,662

73、 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other payables 2,932,227 2,227,929 306,573 Advance from customers 105,379 102,623 14,121 Deferred revenue 801,581 1,156,160 159,093 Income tax payable 227,260 338,306 46,552 Amounts due to related parties 24,572 31,878 4,387 Dividends

74、payable 984,332 493,881 67,960 Total current liabilities 5,075,351 4,350,777 598,686 Non-current liabilities Other liabilities 89,187 58,622 8,067 Deferred tax liabilities 497,955 472,481 65,016 Total non-current liabilities 587,142 531,103 73,083 Total liabilities 5,662,493 4,881,880 671,769 MEZZAN

75、INE EQUITY Convertible redeemable noncontrolling interests 1,758,933 1,843,291 253,645 EQUITY Total Autohome shareholders equity 23,928,187 24,443,437 3,363,529 Noncontrolling interests (513,882)(605,217)(83,281)Total equity 23,414,305 23,838,220 3,280,248 Total liabilities,mezzanine equity and equi

76、ty 30,835,731 30,563,391 4,205,662 9 UNAUDITED RECONCILIATION BETWEEN U.S.GAAP AND IFRS The unaudited condensed consolidated statements of income for the six month ended June 30,2024 and the unaudited condensed consolidated balance sheets as of June 30,2024(collectively,the“Unaudited Interim Financi

77、al 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 differe

78、nces between U.S.GAAP and the International Financial Reporting Standards(the“IFRS”)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 attached herein.PricewaterhouseCoop

79、ers,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

80、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.The effects of material differences between the Unaudited Interim Financial Statements prepa

81、red under U.S.GAAP and IFRS are as follows:Reconciliation of unaudited condensed consolidated statements of income:For six months ended June 30,2023 2024 RMB RMB Reconciliation of net income in the consolidated statements of income (in thousands)Net income as reported under U.S.GAAP 908,900 882,440

82、IFRS adjustments:Preferred shares(Note a)(64,555)126,264 Leases(Note b)(521)(285)Share-based compensations(Note c)(36,304)(16,419)Net income as reported under IFRS 807,520 992,000 Reconciliation of unaudited condensed consolidated balance sheets:As of December 31,As of June 30,2023 2024 RMB RMB Reco

83、nciliation of total equity in the consolidated balance sheets (in thousands)Total equity as reported under U.S.GAAP 23,414,305 23,838,220 IFRS adjustments:Preferred shares(Note a)1,182,018 1,409,285 Leases(Note b)(9,536)(9,821)Total equity as reported under IFRS 24,586,787 25,237,684 10 Notes:Basis

84、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 Companys unaudited interim condensed consolidated financial i

85、nformation for the six months ended June 30,2024 prepared under U.S.GAAP,with adjustments made(if any)thereto in arriving at the unaudited financial information of the Company prepared under IFRS.The adjustments reflect the differences between the Companys accounting policies under U.S.GAAP and IFRS

86、.(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,the preferred shares,which are redeemable at the option of the hol

87、der,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

88、 risk of the liability shall be presented in the consolidated balance sheets as accumulated other comprehensive income;the remaining amount of change in the fair value of the liability shall be presented in the consolidated statements of comprehensive income.Accordingly,the reconciliation includes a

89、 fair value profit change of RMB64.56 million(negative)and RMB126.26 million recognized in the consolidated statements of comprehensive income for each of the six months ended June 30,2023 and 2024,respectively.The reconciliation also includes the difference between mezzanine equity under U.S.GAAP a

90、nd financial liabilities under IFRS of RMB1,182.02 million and RMB1,409.29 million as at December 31,2023 and June 30,2024,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

91、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 treatmen

92、t under U.S.GAAP results in straight line expense being incurred over the lease term,as opposed to IFRS 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 consolidat

93、ed statements of comprehensive income of RMB0.52 million and RMB0.29 million for each of the six months ended June 30,2023 and 2024,respectively.The reconciliation also includes a difference in total equity of RMB9.54 million and RMB9.82 million as at December 31,2023 and June 30,2024,respectively.(

94、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 pe

95、rformance 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 ea

96、ch tranche of the award is,in substance,a separate award.Under IFRS,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 RMB36.30 million and RMB16.42 million for each of the six months ended June 30,2023 and 2024,respectively.