Autohome
Annual Report 2015

Plain-text annual report

Table of Contents UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 20-F (Mark One)¨REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGEACT OF 1934OR xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2015OR ¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934For the transition period from to OR ¨SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934Date of event requiring this shell company report Commission file number: 001-36222 Autohome Inc.(Exact name of registrant as specified in its charter) N/A(Translation of Registrant’s name into English)Cayman Islands(Jurisdiction of incorporation or organization)10th Floor Tower B, CEC Plaza3 Dan Ling StreetHaidian District, Beijing 100080The People’s Republic of China(Address of principal executive offices)Nicholas Yik Kay ChongChief Financial OfficerTel: +86 (10) 5985-7001E-mail: ir@autohome.com.cnFax: +86 (10) 5985-738710th Floor Tower B, CEC Plaza3 Dan Ling StreetHaidian District, Beijing 100080The People’s Republic of China(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Persons)Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which RegisteredClass A ordinary shares, par value US$0.01 per share* The New York Stock Exchange *Not for trading, but only in connection with the listing on The New York Stock Exchange of the American depositary shares (“ADSs”). Currently, oneADS represents one Class A ordinary share.Securities registered or to be registered pursuant to Section 12(g) of the Act:None(Title of Class)Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:None(Title of Class) Indicate the number of outstanding shares of each of the Issuer’s classes of capital or common stock as of the close of the period covered by the annualreport. 51,230,242 Class A ordinary shares, par value US$0.01 per share, and 61,824,328 Class B ordinary shares, par value US$0.01 per share, wereoutstanding as of December 31, 2015.Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934. Yes ¨ No xIndicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days Yes x No ¨Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data Filerequired to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorterperiod that the registrant was required to submit and post such files). Yes x No ¨Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “acceleratedfiler and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer x Accelerated filer ¨Non-accelerated filer ¨ Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP x International Financial Reporting Standards as issuedby the International Accounting Standards Board ¨ Other ¨If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the Registrant has elected tofollow: Item 17 ¨ Item 18 ¨If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the ExchangeAct). Yes ¨ No x(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the SecuritiesExchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ¨ No ¨ Table of ContentsTABLE OF CONTENTS INTRODUCTION 1 FORWARD-LOOKING STATEMENTS 1 PART I 2 ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS 2 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 2 ITEM 3. KEY INFORMATION 3 ITEM 4. INFORMATION ON THE COMPANY 37 ITEM 4A. UNRESOLVED STAFF COMMENTS 61 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 61 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 79 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 90 ITEM 8. FINANCIAL INFORMATION 95 ITEM 9. THE OFFER AND LISTING 96 ITEM 10. ADDITIONAL INFORMATION 96 ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 108 ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 109 PART II 111 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 111 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 111 ITEM 15. CONTROLS AND PROCEDURES 112 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 113 ITEM 16B. CODE OF ETHICS 113 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 113 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 114 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 114 ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT 114 ITEM 16G. CORPORATE GOVERNANCE 114 ITEM 16H. MINE SAFETY DISCLOSURE 114 PART III 114 ITEM 17. FINANCIAL STATEMENTS 114 ITEM 18. FINANCIAL STATEMENTS 114 ITEM 19. EXHIBITS 115 iTable of ContentsINTRODUCTIONUnless otherwise indicated and except where the context otherwise requires, references in this annual report on Form 20-F to: • “ADSs” are to our American depositary shares, each of which represents one Class A ordinary share; • “CAGR” refers to compound annual growth rate; • “China” or the “PRC” are to the People’s Republic of China, excluding, for the purpose of this annual report only, Hong Kong, Macau andTaiwan; • “shares” or “ordinary shares” are our ordinary shares, par value US$0.01 per share, before our initial public offering, or IPO, and our Class A andClass B ordinary shares, par value US$0.01 per share, after our initial public offering; • “RMB” and “Renminbi” are to the legal currency of China; • “we,” “us,” “our,” “our company” and “the Company” are to Autohome Inc., its predecessors, subsidiaries and variable interest entities, or VIEs; • “U.S. GAAP” refers to generally accepted accounting principles in the United States; and • “$,” “dollars,” “US$” or “U.S. dollars” refers to the legal currency of the United States.FORWARD-LOOKING STATEMENTSThis annual report contains forward-looking statements that reflect our current expectations and views of future events. The forward-looking statementsare contained principally in the sections entitled “Item 3. Key Information—D. Risk Factors,” “Item 4. Information on the Company—B. Business Overview”and “Item 5. Operating and Financial Review and Prospects.” These forward looking statements are made under the “safe-harbor” provisions of the U.S.Private Securities Litigation Reform Act of 1995. Known and unknown risks, uncertainties and other factors, including those listed under “Item 3. KeyInformation—D. Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by theforward-looking statements.You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,”“intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largelyon our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy andfinancial needs. These forward-looking statements include statements relating to: • our ability to attract and retain users and customers; • our business strategies and initiatives as well as our new business plans; • our future business development, financial condition and results of operations; • our ability to further enhance our brand recognition; • our ability to attract, retain and motivate key personnel; • competition in our industry in China; and • relevant government policies and regulations relating to our industry. 1Table of ContentsThese forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations.Other sections of this annual report include additional factors that could adversely impact our business and financial performance. Moreover, we operate inan evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors anduncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual resultsto differ materially from those contained in any forward-looking statements. You should read thoroughly this annual report and the documents that we referto with the understanding that our actual future results may be materially different from, or worse than, what we expect. We qualify all of our forward-lookingstatements by these cautionary statements.This annual report contains certain data and information that we obtained from various government and private publications. Statistical data in thesepublications also include projections based on a number of assumptions. The online automotive advertising industry may not grow at the rate projected bymarket data, or at all. The failure of this market to grow at the projected rate may have a material adverse effect on our business and the market price of ourADSs. In addition, the rapidly changing nature of the online automotive advertising industry and the online automobile transaction industry results insignificant uncertainties for any projections or estimates relating to the growth prospects or future condition of our market. Furthermore, if any one or more ofthe assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. Youshould not place undue reliance on these forward-looking statements.The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in thisannual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of newinformation, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should readthis annual report and the documents that we refer to in this annual report and exhibits to this annual report completely and with the understanding that ouractual future results may be materially different from what we expect.PART IITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORSNot applicable.ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLENot applicable. 2Table of ContentsITEM 3. KEY INFORMATION A.Selected Financial DataThe following tables present the selected consolidated financial information for our company. Our selected consolidated statement of comprehensiveincome data presented below for the years ended December 31, 2013, 2014 and 2015 and our selected consolidated balance sheet data as of December 31,2014 and 2015 have been derived from our consolidated financial statements, which are included in this annual report beginning on page F-1. Our selectedconsolidated balance sheet data as of December 31, 2011, 2012 and 2013 and the selected consolidated statement of comprehensive income data for 2011and 2012 presented below have been derived from our consolidated financial statements not included in this annual report. Our historical results for anyperiod are not necessarily indicative of results to be expected for any future period. You should read the following selected financial data in conjunction withthe consolidated financial statements and related notes and the information under “Item 5. Operating and Financial Review and Prospects” in this annualreport. Our audited consolidated financial statements are prepared and presented in accordance with U.S. GAAP. For the Year Ended December 31, (in thousands, except for number of shares and per share data) 2011 2012 2013 2014 2015 RMB RMB RMB RMB RMB US$ Selected Consolidated Statement of Comprehensive Income Data: Net revenues Advertising services 379,666 592,622 894,937 1,499,516 2,400,023 370,500 Dealer subscription services 53,523 139,898 321,611 633,433 1,063,952 164,246 Total net revenues 433,189 732,520 1,216,548 2,132,949 3,463,975 534,746 Cost of revenues (130,565) (178,240) (252,236) (381,498) (669,121) (103,294) Gross profit 302,624 554,280 964,312 1,751,451 2,794,854 431,452 Operating expenses Sales and marketing expenses (67,500) (129,796) (245,228) (559,070) (1,127,484) (174,054) General and administrative expenses (46,547) (83,153) (82,529) (129,751) (193,655) (29,895) Product development expenses (16,459) (42,865) (81,651) (158,395) (273,908) (42,284) Operating profit 172,118 298,466 554,904 904,235 1,199,807 185,219 Interest income 1,167 5,093 11,082 34,682 63,218 9,759 Interest expense — — (414) — — — Earnings from equity method investments — — — — 102 16 Other income, net 509 310 2,884 2,544 13,064 2,017 Income from continuing operations before income taxes 173,794 303,869 568,456 941,461 1,276,191 197,011 Income tax expense (38,348) (90,988) (112,294) (192,781) (285,542) (44,080) Income from continuing operations 135,446 212,881 456,162 748,680 990,649 152,931 Loss from discontinued operations (4,182) — — — — — Net income 131,264 212,881 456,162 748,680 990,649 152,931 Other comprehensive income, net of tax of nil Foreign currency translation adjustments — 583 1,403 3,946 56,821 8,772 Comprehensive income 131,264 213,464 457,565 752,626 1,047,470 161,703 Earnings per share for ordinary shares – Basic Net income from continuing operations 1.35 2.13 4.57 7.01 8.83 1.36 Loss from discontinued operations (0.04) — — — — — Net income 1.31 2.13 4.57 7.01 8.83 1.36 3Table of Contents For the Year Ended December 31, (in thousands, except for number of shares and per share data) 2011 2012 2013 2014 2015 RMB RMB RMB RMB RMB US$ Earnings per share for ordinary shares – Diluted Net income from continuing operations 1.35 2.12 4.37 6.64 8.57 1.32 Loss from discontinued operations (0.04) — — — — — Net income 1.31 2.12 4.37 6.64 8.57 1.32 Weighted average number of shares used to computeearnings pershare(1) Ordinary shares: Basic 100,000,000 100,000,000 — — — — Diluted 100,189,928 100,650,652 — — — — Class A and Class B ordinary shares(2): Basic — — 99,898,154 106,735,303 112,227,405 112,227,405 Diluted — — 104,329,226 112,831,585 115,646,826 115,646,826 Dividend per share(3) — — — — — — (1)Earnings per share for ordinary shares (Diluted) for each year from 2011 to 2015 were computed after taking into account the dilutive effect of theshares underlying our employees’ share-based awards.(2)As holders of Class A and Class B ordinary shares have the same dividend right in our undistributed earnings, the basic and diluted net income perClass A ordinary share and Class B ordinary share are the same for all the periods presented during which there were two classes of ordinary shares. Theweighted average number of shares represents the sum of the weighted average number of Class A and Class B ordinary shares. Please see “Earnings perShare” under Note 17 to our audited consolidated financial statements included in this annual report for additional information regarding thecomputation of the per share amounts and the weighted average numbers of Class A and Class B ordinary shares.(3)Dividends distributed to our shareholders in the fiscal years ended 2012 and 2013 were one-time distributions due to special circumstances. See “Item8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy.” As of December 31, 2011 2012 2013 2014 2015 RMB RMB RMB RMB RMB US$ (in thousands) Selected Consolidated Balance Sheet Data: Cash and cash equivalents, restricted cash and term deposits 213,705 420,576 1,383,613 2,772,191 4,169,053 643,591 Accounts receivable, net 203,102 326,071 465,712 736,695 1,075,456 166,022 Total current assets 451,823 786,192 1,899,265 3,640,766 5,742,475 886,486 Total assets 2,043,005 2,379,673 3,512,950 5,278,515 7,530,076 1,162,445 Deferred revenue 41,461 94,392 213,240 438,797 872,487 134,689 Total current liabilities 203,805 336,292 789,818 1,080,657 2,156,534 332,913 Total liabilities 682,726 821,698 1,300,586 1,613,092 2,679,040 413,574 Total shareholders’ equity 1,360,279 1,557,975 2,212,364 3,665,423 4,851,036 748,871 4Table of ContentsExchange Rate InformationSubstantially all of our operations are conducted in China and substantially all of our revenues are denominated in RMB. This annual report containstranslations of RMB amounts into U.S. dollars at specific rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB toU.S. dollars and from U.S. dollars to RMB in this annual report were made at a rate of RMB6.4778 to US$1.00, the noon buying rate in The City of New Yorkfor cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2015. We make no representationthat any RMB or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or RMB, as the case may be, at any particular rate, at the ratesstated below, or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of RMBinto foreign exchange and through restrictions on foreign trade. On February 29, 2016, the noon buying rate was RMB6.5525 to US$1.00.The following table sets forth information concerning exchange rates between the RMB and the U.S. dollar for the periods indicated. Noon Buying Rate Period Period End Average (1) Low High (RMB per US$1.00) 2011 6.2939 6.4475 6.6364 6.2939 2012 6.2301 6.2990 6.3879 6.2221 2013 6.0537 6.1412 6.2438 6.0537 2014 6.2046 6.1704 6.2591 6.0402 2015 6.4778 6.2869 6.4896 6.1870 September 6.3556 6.3676 6.3836 6.3544 October 6.3180 6.3505 6.3591 6.3180 November 6.3883 6.3640 6.3945 6.3180 December 6.4778 6.4491 6.4896 6.3883 2016 January 6.5752 6.5726 6.5932 6.5219 February 6.5525 6.5501 6.5795 6.5154 Source: Federal Reserve Statistical Release (1)Annual averages are calculated from month-end rates. Monthly averages are calculated using the average of the daily rates during the relevant period. B.Capitalization and IndebtednessNot applicable. C.Reasons for the Offer and Use of ProceedsNot applicable. D.Risk FactorsAn investment in our capital stock involves a high degree of risk. You should carefully consider the risks described below, together with all of the otherinformation included in this annual report, before making an investment decision. If any of the following risks actually occurs, our business, financialcondition or results of operations could suffer. In that case, the trading price of our capital stock could decline, and you may lose all or part of yourinvestment. 5Table of ContentsRisks Related to Our Business and IndustryWe rely on China’s automotive industry for substantially all of our revenues and future growth, the prospects of which are subject to many uncertainties,including government regulations and policies.We rely on China’s automotive industry for substantially all of our revenues and future growth. We have greatly benefited from the growth of China’sautomotive industry during the past few years. However, China’s automotive industry is still at an early stage of development and are subject to manyuncertainties. We cannot predict how this industry will develop in the future. Further, the growth of China’s automotive industry could be affected by manyfactors, including general economic conditions in China, the urbanization rate of China’s population, the growth of disposable household income, the cost ofnew automobiles as well as tax and incentives related to automobile purchases. In addition, governmental policies may have a considerable impact on thegrowth of the automotive industry in China. For example, in an effort to alleviate traffic congestion and improve air quality, the Beijing municipalgovernment issued a regulation in December 2010 to limit the number of new passenger vehicle plates issued in Beijing each year to 240,000 commencing in2011, and the limitation was subsequently further reduced to 150,000 starting from 2014. There are similar policies that restrict the issuance of new passengervehicle plates in several other cities, Shanghai, Guangzhou, Tianjin, Guiyang, Shijiazhuang, Hangzhou and Shenzhen. Other cities such as Chengdu,Chongqing and Wuhan may take measures to limit the number of purchases of automobiles. In September 2013, the PRC government released a plan for theprevention and remediation of air pollution, which requires large cities such as Beijing, Shanghai and Guangzhou to further restrict the ownership of motorvehicles. In October 2013, the Beijing municipal government issued an additional regulation to limit the total number of vehicles in Beijing to no more thansix million by the end of 2017, compared to approximately 5.2 million vehicles in operation by the end of 2013. In 2015, the PRC government released highautomobile emission standards and new tax benefits for electric cars. Since late 2014, the PRC government has released a series of incentive policies for newenergy-efficient vehicles. Beginning from late 2011, the National Development and Reform Commission, one of China’s antitrust regulatory authorities,initiated a series of investigations into the pricing practices of foreign automobile companies in China in connection with allegations of the lack of faircompetition. These investigations may lead to price reductions due to enhanced competition. Such regulatory developments, as well as other uncertainties,may adversely affect the growth prospects of China’s automotive industry, and in turn reduce demand for automobiles. If automakers and automobile dealerswere to reduce their marketing expenditures as a result, our business, financial condition and results of operations could be materially and adversely affected.We face significant competition, and if we fail to compete effectively, we may lose market share and our business, prospects and results of operations maybe materially and adversely affected.The markets for our services are highly competitive. With respect to our advertising services, we face competition from China’s automotive websites,such as xcar.com.cn, pcauto.com.cn and bitauto.com, from the automotive channels of major internet portals, such as Sina and Sohu, and from social mediaand online video websites. We may also face competition from other websites engaged in the online automobile transaction business, such as bitauto.comand tmall.com, as we develop our transaction platform. In addition, we also face competition from other used-automobile websites, such as 51auto.com,taoche.com, youxinpai.com, guazi.com and renrenche.com. Competition with these and other websites is primarily centered on increasing user reach, userengagement and brand recognition, relationships with the suppliers, and attracting and retaining advertisers or customers, among other factors.Some of our competitors or potential competitors have longer operating histories and may have greater financial, management, technological,development, sales, marketing and other resources than we do. They may use their experience and resources to compete with us in a variety of ways,including by competing more heavily for users, advertisers and dealers, investing more heavily in research and development and making acquisitions. Someof our competitors have entered or may enter into business cooperation agreements with search engines, which may impact our ability to obtain additionaluser traffic from the same sources. Our competitors may be acquired and consolidated by, or cooperate with, industry conglomerates who are able to furtherinvest with significant resources into our operating space. We cannot assure you that any such large internet business will not in the future focus on theautomotive sector. If we are unable to compete effectively and at a reasonable cost against our existing and future competitors, our business, prospects andresults of operations could be materially and adversely affected.For our advertising business and dealer subscription business, we also face competition from traditional advertising media, such as newspapers,magazines, yellow pages, television, radio and outdoor media. Advertisers in China generally allocate a significant portion of their marketing budgets totraditional advertising media. If we cannot effectively compete with traditional media for the marketing budgets of our existing and potential customers, ourresults of operations and growth prospects could be adversely affected. For our transaction business, as online automobile transaction is a relatively newbusiness model and consumers in China might be accustomed to make automobile purchases with traditional dealerships, we cannot guarantee that theautomobile consumers in China will accept such business model. If we cannot earn consumer recognition and trust in our transaction business, our results ofoperations and growth prospects could be adversely affected. 6Table of ContentsIf we fail to attract and retain users and advertisers, our business and results of operations may be materially and adversely affected.In order to maintain and strengthen our position as the leading online destination for automobile consumers in China, we must continue to attract andretain users to our websites, which requires us to continue to provide quality content throughout the automobile-ownership cycle. We must also innovate andintroduce services and applications that enhance user experience. In addition, we must maintain and enhance our brand recognition among consumers. If wefail to provide high-quality content, offer a superior user experience or maintain and enhance our brand recognition, we may not be able to attract and retainusers. If our user base decreases, our websites may be rendered less attractive to advertisers and our advertising services and dealer subscription servicesrevenues may decline, which may have a material and adverse impact on our business, financial condition and results of operations.We may not be able to successfully monetize and expand our mobile internet services.We plan to continue to expand our mobile internet services and explore monetization strategies for our mobile internet services. We have madesignificant efforts in recent years to optimize the mobile version of our websites to display our content and develop new mobile applications to capture agreater number of users that access our services through mobile devices. For example, the number of our average daily unique users who access our websitesvia mobile devices and the number of our average daily unique users of our mobile applications amounted to approximately 7.7 million and 6.1 million,respectively, in December 2015. However, if we are unable to attract and retain a substantial number of mobile device users, or if we do not keep up with ourcompetitors in developing attractive services that are adapted for such mobile devices, we may fail to capture a significant share of an increasingly importantportion of the mobile internet market for our services or lose existing users.Furthermore, we are still in the midst of experimenting with early monetization strategies for our mobile internet services. Advertisers currently spendless on advertising on mobile devices as compared to advertising on PCs, and may not increase their advertising spending on mobile devices in the future. Ifour users continue to allocate more time on our mobile services instead of our traditional PC services, mobile monetization may become increasinglyimportant to our results of operations. Accordingly, if we are unable to successfully implement monetization strategies for our mobile internet users, ourresults of operations may be negatively affected.A limited number of automaker advertisers have accounted for, and are expected to continue to account for, a significant portion of our revenues. Thefailure to maintain or to increase revenues from these advertisers could harm our prospects.A limited number of automaker advertisers have accounted for, and are expected to continue to account for, a significant portion of our revenues. Ourtop five advertisers, all of whom were automakers, contributed 15.0%, 9.8% and 11.1% of our net revenues in 2013, 2014 and 2015, respectively. In each of2013, 2014 and 2015, 75, 85 and 87 automakers operating in China used our advertising services. These automakers include independent Chineseautomakers, joint ventures between Chinese and international automakers and international automakers that sell cars made outside of China. We believe thatour major future revenue growth will be focused on deepening our existing commercial relationships with automakers to increase our share of eachautomaker’s advertising budget. If we fail to do so, our growth prospects could be harmed.Due to the limited number of automakers operating in China and our revenue concentration attributable to a small number of these companies, any ofthe following events, among others, may cause a material decline in our revenue and materially and adversely affect our results of operations and prospects: • contract reduction, delay or cancellation by one or more significant advertisers and our failure to identify and acquire additional or replacementadvertisers; • a substantial reduction by one or more of our significant advertisers in the price they are willing to pay for our services; and • financial difficulty of one or more of our significant advertisers who become unable to make timely payment for the advertisements placed onour websites. 7Table of ContentsWe may not be able to successfully monetize and expand our dealer network.We had local sales and service representatives covering 202 cities across China as of December 31, 2015. We intend to increase our penetration inexisting dealer advertising and subscription services markets and expand into new geographic markets. China is a large and diverse country and businesspractices and demands may vary significantly by region and by the level of development of the cities. Our experience in the markets in which we currentlyoperate may not be applicable in other parts of China or in the lower tier cities in China. We may not be able to leverage our experience to expand into newgeographic markets or in the lower tier cities in China. As a result, our monetization and expansion strategies, including our “share of wallet” approach, salesand marketing efforts designed to attract dealer advertisers and maximize the conversion of registered dealers using our free basic listing service into dealersubscribers, may be unsuccessful. Furthermore, expanding into new geographical markets or lower tier cities will require us to hire additional employees tocover these markets. We will incur additional compensation and benefit costs, office rental expenses and other costs, as well as additional strain on ourmanagerial resources. In addition, we intend to further monetize our existing dealer network by converting dealers that currently use our free listing serviceinto dealer subscribers, increasing the average spending of our existing dealer subscribers and upselling our premium packages with higher rates for ourdealer subscription services. If we are unable to successfully monetize and expand our dealer network and to generate sufficient revenues to cover ourincreased costs and expenses, our business and results of operations may be materially and adversely affected.Our business depends on strong brand recognition, and failing to maintain or enhance our brands could adversely affect our business and prospects.Maintaining and enhancing our “Autohome” and “Che168” brands is critical to our business and prospects. We believe that brand recognition willbecome increasingly important as the number of internet users in China grows and competition in our industry intensifies. A number of factors could preventus from successfully promoting our brands, including user dissatisfaction with the content offered on our websites, negative publicity involving our businessand the failure of our sales and marketing activities. If we fail to maintain and enhance our brands, or if we incur excessive expenses in this effort, ourbusiness, results of operations and financial condition will be materially and adversely affected.If we are unable to conduct our marketing activities cost-effectively, our results of operations and financial condition may be materially and adverselyaffected.We have incurred expenses on a variety of different marketing and brand promotion efforts designed to enhance our brand recognition and increasesales of our products and services. Our marketing and promotional activities may not be well received by customers and may not result in the levels of salesof products and services that we anticipate. We incurred RMB245.2 million, RMB559.1 million and RMB1,127.5 million (US$174.1 million) in sales andmarketing expenses in 2013, 2014 and 2015, respectively, representing 20.2%, 26.2% and 32.6%, respectively, of total net revenues in the correspondingyears. Marketing approaches and tools in the consumer products market in China are evolving. This further requires us to enhance our marketing approachesand experiment with new marketing methods to keep pace with industry developments and consumer preferences, which may not be as cost-effective as ourmarketing activities in the past and may lead to significantly higher marketing expenses in the future. We conducted various sales and marketing initiativesto promote our brands through search engines, mobile platforms and navigation sites, a 10-year anniversary campaign, “Singles’ Day” event and variousoffline promotional activities such as the “Group Buy” initiative. For example, we have entered into an arrangement with Baidu for a 12-month period thatstarted from July 1, 2014, for enhanced automotive-related content search results on PCs powered by “Aladdin,” Baidu’s open platform initiative, and wecontinued our cooperation with Baidu as an exclusive supplier for automotive-related content on PCs powered by “Aladdin” for a six-month period thatstarted from August 25, 2015. We also cooperate with brands and dealers for promotions in target regions. We may not be able to continue or conduct theseactivities efficiently, and our marketing activities may not yield satisfactory results. Failure to refine our existing marketing approaches or to introduce neweffective marketing approaches in a cost-effective manner could impact our net revenues and profitability. 8Table of ContentsInaccuracy in pricing and listing information provided by our dealer customers may adversely affect our business and financial performance.Our automobile listings and promotional information are provided and continuously updated by our dealer customers. Users interested in particularvehicle models can conveniently search for up-to-date information on such models without having to visit the local showrooms of relevant dealers. If suchlistings and promotional information provided by our dealer customers are frequently inaccurate or not reliable, our users may lose faith in our websites,resulting in reduced user traffic to our websites and diminished value to advertisers. We may receive more customer complaints, and we may need to allocatemore resources in responding and handling such complaints. We cannot guarantee that such complaints will be resolved in satisfactory. Our reputation couldbe harmed, which could adversely affect our business and financial performance.We may not be able to manage our expansion and new business initiatives effectively.We have experienced rapid growth in our business in recent years. The number of our employees has grown rapidly from 1,191 as of December 31,2013 to 1,771 as of December 31, 2014 and 3,292 as of December 31, 2015. Our net revenues increased from RMB1,216.5 million in 2013 to 2,132.9 millionin 2014 and RMB3,464.0 million (US$534.7 million) in 2015, representing a CAGR of 68.7%. We expect to continue to grow our user base and our businessoperations.Our rapid expansion and new business initiatives may expose us to new challenges and risks. To manage the further expansion of our business, we needto continuously expand and enhance our infrastructure and technology, and improve our operational and financial systems, procedures and internal controls.We also need to train, manage and motivate our growing employee base. In addition, we need to maintain and expand our relationships with automaker anddealer advertisers, advertising agencies and other third parties. We cannot assure you that our current and planned personnel, infrastructure, systems,procedures and controls will be adequate to support our expanding operations. We may be required to increase our sales and marketing expenses in order tosupport any such expansion and our efforts may not be effective. If we fail to manage our expansion and new business initiatives effectively or efficiently, ourbusiness and results of operations may be materially and adversely affected.If we are unable to maintain our relationships with advertising agencies or if we are unable to collect accounts receivable from advertising agencies in atimely manner, our results of operations and prospects may be materially and adversely affected.Although we consider automakers and automobile dealers to be our end-customers for our advertising business and dealer subscription business, wesell our advertising services and solutions primarily to third-party advertising agencies that represent the automakers and automobile dealers, as is customaryin China. Our top ten advertising agencies accounted for 44.0%, 38.7% and 39.2% of our total net revenues in 2013, 2014 and 2015, respectively. In 2013,2014 and 2015, our largest agency accounted for 6.7%, 5.9% and 6.9% of our total net revenues, respectively. We do not have long-term cooperationagreements or exclusive arrangements with these agencies and they may elect to direct business to other advertising service providers, including ourcompetitors. If we fail to retain and enhance our business relationships with third-party advertising agencies, we may suffer from a loss of advertisers and ourbusiness, financial condition, results of operations and prospects may be materially and adversely affected. In our agreements with certain major advertisingagencies, we undertake to provide them with most favored pricing terms. Such most favored pricing terms may hinder our ability to acquire new customersusing special pricing terms.In addition, we rely on third-party advertising agencies for the collection of payment from our advertisers. As a result, the financial soundness of ouradvertising agencies may affect our collection of accounts receivables. We make a credit assessment of the advertising agency to evaluate the collectabilityof the advertising service fees before entering into an advertising contract. However, we cannot assure you that we will be able to accurately assess thecreditworthiness of each advertising agency, and any failure of advertising agencies to pay us in a timely manner may adversely affect our liquidity and cashflows. 9Table of ContentsIf online advertising does not continue to grow in China, our ability to increase revenue and profitability could be materially and adversely affected.The use of the internet as a marketing medium in China has been growing recently but remains in an early stage as compared to the developed markets.The expansion of China’s internet population may be limited by a number of factors, including limitations on network infrastructure and social and politicaluncertainties, among others.Many of our current and potential advertisers and dealer subscribers have limited experience with the internet as a marketing medium, and they havenot devoted a significant portion of their marketing budgets to online marketing and promotion until recently. As a result, they may not consider the internetas the most effective medium to promote or sell automobiles as compared to traditional print and broadcast media. Our ability to increase revenue andprofitability from online marketing may be adversely impacted by a number of factors, many of which are beyond our control, including: • difficulties associated with developing a larger user base with demographic characteristics attractive to advertisers; • increased competition and potential downward pressure on online advertising prices; • difficulties in acquiring and retaining advertisers or dealer subscribers; • failure to develop an independent and reliable means of verifying online traffic; and • decreased use of the internet or online marketing in China.If the internet does not become more widely accepted as an effective media platform for advertising and marketing by China’s automotive industry, ourbusiness, financial condition and results of operations could be materially and adversely affected.If we are unable to grow our transaction business, we may not be able to achieve our expected business growth and our results of operations may beadversely affected.We started to develop our transaction business in 2014 and has expanded to include direct vehicle sales and commission-based services facilitatingtransactions through our transaction platform. In June 2014, we launched Autohome Mall, an online transaction platform that we believe will allow us to be atransaction facilitator as we develop our transaction business. The success of our transaction business depends, in part, on third parties and factors over whichwe have limited control. We may incur more investment on inventory. We will need to react quickly to meet the changing consumer preferences and buyingtrends relating to our transaction business. We will also face competition from other websites engaged in the online automobile transaction business as wellas from traditional dealerships. In addition, we also rely on our dealership partners to perform order fulfillments for vehicles sold on our platform. We may notbe able to cooperate with dealership partners on commercially reasonable terms, or at all. We may not have full control over the order fulfillment procedures,and any dissatisfaction from the consumers might harm our reputation.Furthermore, we must keep up to date with competitive technology trends, including the use of new or improved technology, creative user interfacesand other transaction marketing tools, such as paid search and mobile applications among others, which may increase our costs and which may not succeed inincreasing sales or attracting consumers. Developing the transaction business may require significant investment in product development, sales andmarketing and working capital, and we may not be able to get the expected return on our investment. As online automobile transaction is a relatively newbusiness model, we cannot guarantee that the automobile consumers in China will accept such business model. Due to the limited operating history of ourtransaction business, we cannot predict that whether the consumers will trust our platform or view us as an option for purchasing automobile. Finally,developing the transaction business may take up our management’s time and allow them less time to focus on our existing core business. Our transactionbusiness is substantially dependent on the new vehicle sales level in China, which is sensitive to changing economic conditions. Our failure to successfullymitigate these risks and uncertainties might adversely affect the sales or margins in our transaction business, as well as damage our reputation and brand. 10Table of ContentsOur ability to meet the consumers’ demand for vehicles depend in part on our ability to maintain a reasonable level of inventory.We must maintain a reasonable level of inventory of new vehicles in terms of their quantity and selection to satisfy the consumers’ needs in a timelymanner. Our inventories was RMB111.7 million (US$17.2 million) as of December 31, 2015 as we expanded our transaction business. As we plan to continueexpanding our transaction business, we expect to include more vehicles in our inventory, which will make it more challenging for us to manage ourinventory effectively and will put more pressure on our inventory system. If we fail to manage our inventory effectively, we may be subject to a heightenedrisk of inventory obsolescence, a decline in inventory values, and significant inventory write-downs or write-offs. We may misjudge customer demand andresult in unexpected inventory build-up or possible inventory write-downs. In addition, we may be required to lower sale prices in order to reduce inventorylevel, which may lead to lower or even negative gross margins. High inventory levels may also require us to commit substantial capital resources, preventingus from using that capital for other important purposes. If our inventory is too low, our ability to satisfy the consumers’ needs may be compromised, whichmay harm our reputation and result in lost revenues. Any of the above may materially and adversely affect our results of operations and financial condition.If we fail to manage and maintain our relationships with automakers, our ability to obtain a desirable mix of popular vehicles for our transaction platformwill be adversely affected. If we are unable to offer vehicles that attract new consumers and new purchases from existing consumers on our transactionplatform, our business, financial condition and results of operations may be materially and adversely affected.Our future growth depends on our ability to continue to attract new consumers as well as new purchases from existing consumers. Constantly changingconsumer preferences have affected and will continue to affect the online automobile retail industry. We must stay abreast of emerging consumer preferencesand anticipate product trends that will appeal to existing and potential consumers. Our new automobile sales are influenced by the automakers’ abilities toanticipate changes in consumer tastes, preferences and requirements, including those driven by environmental or popular trends, and to manufacture anddeliver to us in sufficient quantities and on a timely basis, a desirable, high quality and price-competitive mix of new vehicles to sell to our consumers. Themost popular vehicles usually generate the highest profit margins and are frequently difficult to obtain from the automakers. If we cannot obtain sufficientquantities of the most popular models, our profitability may be adversely affected. Sales of less desirable models may reduce our profit margins.We source vehicles from automakers for our online transaction platforms. Maintaining strong relationships with these automakers is important to thegrowth of our business. We cannot assure you that our current automaker suppliers will continue to sell vehicles to us on commercially acceptable terms, or atall. Even if we maintain good relations with the automakers, their ability to supply products to us in sufficient quantity and at competitive prices may beadversely affected by economic conditions, labor actions, regulatory or legal decisions, natural disasters or other causes. Furthermore, some automakers maylimit the number of vehicle sales maintained by a certain platform or dealership. Automakers may also prefer to offer vehicles to their franchise dealershipsinstead of us. Some automakers may not approve our applications as a sales partner for its certain vehicles or may require certain purchase commitments fromus, which could materially compromise our growth strategies and business prospects. Any adverse developments in our relationships with suppliers couldmaterially and adversely affect our business and growth prospects. In addition, as part of our growth strategy, we plan to further expand our product offerings.If we fail to attract new suppliers to sell their vehicles to us or on our platform due to any reason, our business and growth prospects may be materially andadversely affected.If we are unable to grow our used automobile-related business through our repositioned che168.com website, we may not be able to achieve our expectedbusiness growth and our results of operations may be adversely affected.Historically, we have delivered content related to new and used automobiles through both autohome.com.cn and che168.com websites whose userbases overlap to some extent. We redesigned our che168.com website in October 2011 to focus on used automobile information and content. Through thiswebsite, we offer used automobile listing services to dealers and individual car owners through a user interface that allows potential used car buyers toidentify listings that meet their specific requirements and contact the dealer or individual selling the selected car. In 2015, we started to trial used cartransaction business in selected cities in China and completed and facilitated used car transaction between sellers and buyers. 11Table of ContentsWe may not be able to successfully grow our used automobile-related business through our repositioned che168.com website and our used cartransaction platforms. Although the used automobile market in China is growing due to the increased number of consumer-owned automobiles, there is stillsignificant uncertainty regarding the extent to which our used automobile- business may benefit from such growth. We may not be able to attract a broad userbase to our che168.com website. Even if we are able to grow our user base, we may not be able to establish a business model that allows us to successfullymonetize the user traffic. We may not be able to successfully facilitate used car transactions and our services might not be satisfactory to the used car buyersor sellers. In such cases, we may not be able to achieve our expected business growth and our results of operations may be adversely affected.Our business is subject to fluctuations, which makes our results of operations difficult to predict and may cause our quarterly results of operations to fallshort of expectations.Our quarterly revenues and other operating results have fluctuated in the past and may continue to fluctuate depending upon a number of factors, manyof which are beyond our control. For these reasons, comparing our operating results on a period-to-period basis may not be meaningful, and you should notrely on our historical results as an indication of our future performance. For instance, our advertising services revenues typically increase in the secondquarter as automakers increase marketing activities in connection with China’s major auto shows, and in the fourth quarter as advertisers seek to completeyear-end marketing campaigns. Demand for our advertising services is generally lowest in the first quarter of each year, primarily due to a general slowdownin business activities and a reduced number of working days during the Chinese New Year holiday period. Our transaction business has not experiencedsimilar trends due to its limited operating history and rapid growth but seasonality may increase in the future.In addition, because a significant portion of our advertising services revenues is attributable to new model promotion campaigns, the timing of new carreleases of our major automaker advertisers can have a significant impact on our results of operations. The timing of such releases, however, is subject touncertainty due to various factors, such as automakers’ design or manufacturing issues, marketing conditions and government incentives or restrictions.These factors may make our results of operations difficult to predict and cause our quarterly results of operations to fall short of expectations.Problems with our network infrastructure or information technology systems could impair our ability to provide services.Our ability to provide our users with a high quality online experience depends on the continuing operation and scalability of our networkinfrastructure and information technology systems. Our systems are potentially vulnerable to damage or interruption as a result of earthquakes, floods, fires,extreme temperatures, power loss, telecommunications failures, technical error, computer viruses, hacking or similar events. We may encounter problemswhen upgrading our systems or services and undetected programming errors could adversely affect the performance of the software we use to provide ourservices. The development and implementation of software upgrades and other improvements to our internet services is a complex process, and issues notidentified during pre-launch testing of new services may only become evident when such services are made available to our entire user base.In addition, we rely on content delivery networks, data centers and other network facilities provided by third parties. Any disruption to these networkfacilities may result in service interruptions, decreases in connection speed, degradation of our services or the permanent loss of user data and uploadedcontent. If we experience frequent or persistent service disruptions, whether caused by failures of our own systems or those of third-party service providers,our reputation or relationships with our users or advertisers may be damaged and our users and advertisers may switch to our competitors, which may have amaterial adverse effect on our business, financial condition and results of operations. 12Table of ContentsComputer viruses and “hacking” may cause delays or interruptions on our systems and may reduce use of our services and damage our reputation andbrand.Computer viruses and “hacking” may cause delays or other service interruptions on our systems. “Hacking” involves efforts to gain unauthorizedaccess to information or systems or to cause intentional malfunctions, loss or corruption of data, including user identity data, software, hardware or othercomputer equipment. In addition, the inadvertent transmission of computer viruses could result in significant damage to our hardware and software systemsand databases, disruptions to our business activities, including our e-mail and other communications systems, breaches of security and inadvertent disclosureof confidential or sensitive information, interruptions in access to our website through the use of “denial of service” or similar attacks and other materialadverse effects on our operations. We have experienced hacking attacks in the past, and although such attacks in the past have not had a material adverseeffect on our operations, there is no assurance that there will be no serious computer viruses or hacking attacks in the future. We may incur significant costs toprotect our systems and equipment against the threat of, and to repair any damage caused by, computer viruses and hacking. Moreover, if a computer virus orhacking affects our systems and is highly publicized, our reputation and brand could be materially damaged and use of our services may decrease.Failure to protect confidential information of our customers and network against security breaches could damage our reputation and brand andsubstantially harm our business and results of operations.Ensuring secured transmission of confidential information through public networks is essential to maintaining the confidence of our customers andusers. Our existing security measures may not be adequate to protect such confidential information. In addition, computer and network systems aresusceptible to breaches by computer hackers. Security breaches could expose us to litigation and potential liability for failing to secure confidential customerinformation and could harm our reputation and reduce our ability to attract customers and users. Future security breaches, if any, may result in a materialadverse effect on our business, financial condition and results of operations.Practices regarding the collection, use, storage, transmission and security of personal information by companies operating over the internet and mobileplatforms have recently come under increased public scrutiny. As e-commerce continues to evolve, we believe that increased regulation by the PRCgovernment of data privacy on the internet is likely. We may become subject to new laws and regulations applying to the solicitation, collection, processingor use of personal or consumer information that could affect how we store, process and share data with our customers. We generally comply with industrystandards and are subject to the terms of our own privacy policies. Compliance with any additional laws could be expensive and may place restrictions on theconduct of our business and the manner in which we interact with our customers. Any failure to comply with applicable regulations could also result inregulatory enforcement actions against us.Significant capital and other resources may be required to protect against information security breaches or to alleviate problems caused by suchbreaches or to comply with our privacy policies or privacy-related legal obligations. The resources required may increase over time as the methods used byhackers and others engaged in online criminal activities are increasingly sophisticated, well-funded and constantly evolving. Any failure or perceived failureby us to prevent information security breaches or to comply with privacy policies or privacy-related legal obligations, or any compromise of security thatresults in the unauthorized release or transfer of personally identifiable information or other customer data, could cause our customers to lose trust in us andcould expose us to legal claims. Any perception by the public that online transactions or the privacy of user information is becoming increasingly unsafe orvulnerable to attacks could inhibit the growth of online retail and other online services generally, which may reduce the number of orders we receive.The continuing and collaborative efforts of our senior management, key employees and highly skilled personnel are crucial to our success, and ourbusiness may be harmed if we were to lose their services.Our success depends on the continuous effort and services of our senior management team and other key personnel. If one or more of our executiveofficers or other key personnel are unable or unwilling to continue to provide us with their services, we might not be able to replace them within a shortperiod of time or at all. Our business could be severely disrupted, our financial condition and results of operations could be materially and adversely affected,and we might incur additional expenses to recruit, train and retain personnel. If any of our executive officers joins a competitor or forms a competingcompany, we may lose advertisers, know-how and key professionals and staff members. Each of our executive officers has entered into an employmentagreement with Beijing Cheerbright Technologies Co., Ltd., or Autohome WFOE, which contains non-competition provisions. However, if any dispute arisesbetween us and our executive officers, we may have to incur substantial costs and expenses in order to enforce these agreements in China. 13Table of ContentsOur performance and future success also depend on our ability to identify, hire, develop, motivate and retain skilled personnel for all areas of ourorganization. Competition in the automotive and internet advertising industries and the online automobile transaction industry for qualified employees isintense, and if competition in these industries further intensifies, it may be more difficult for us to hire, motivate and retain highly skilled personnel. If we donot succeed in attracting additional highly skilled personnel or retaining or motivating our existing personnel, we may be unable to grow effectively or at all.If we fail to protect our intellectual property rights, our brand and business may suffer.We rely on a combination of trademark, patent, copyright and trade secret protection laws in the PRC and other jurisdictions, as well as throughconfidentiality agreements and other measures, to protect our intellectual property rights. Our major brand names and logos are registered trademarks inChina. Most of our professionally produced content available on our websites and proprietary software are protected by copyright laws. Despite ourprecautions, third parties may obtain and use our intellectual property without our authorization. Historically, the legal system and courts of the PRC havenot protected intellectual property rights to the same extent as the legal system and courts of the United States, and companies operating in the PRC continueto face an increased risk of intellectual property infringement. Furthermore, the validity, application, enforceability and scope of protection of intellectualproperty rights for many internet-related activities, such as internet commercial methods patents, are uncertain and still evolving in China and abroad, whichmay make it more difficult for us to protect our intellectual property. From time to time, other websites may use our articles, photos or other content withoutour proper authorization. Although such use has not in the past caused any material damage to our business, it is possible that there may be misappropriationon a much larger scale with a material adverse impact to our business. If we are unable to adequately protect our intellectual property rights in the future, ourbrand and business may suffer.We may be vulnerable to intellectual property infringement claims brought against us by others.Internet, technology and media companies are frequently involved in litigation based on allegations of infringement of intellectual property rights,unfair competition, invasion of privacy, defamation and other violation of other parties’ rights. We have never experienced any material claims on theseissues against us in the past, but as we face increasing competition and as litigation becomes more common in China in resolving commercial disputes, weface a higher risk of being the subject of intellectual property infringement claims. We may be subject to legal proceedings and claims from time to timerelating to the intellectual property of others in the ordinary course of our business. We could also be subject to claims based upon the content that isdisplayed on our websites or accessible from our websites through links to other websites or information on our websites supplied by third parties.Intellectual property claims and litigation are expensive and time-consuming to investigate and defend and may divert resources and management attentionfrom the operation of our websites. Such claims, even if they do not result in liability, may harm our reputation. Any resulting liability or expenses, orchanges required to our websites to reduce the risk of future liability, may have a material adverse effect on our business, financial condition and results ofoperations.We may be subject to liability for advertisements and other content placed on our websites.The PRC government has adopted regulations governing advertising content as well as internet access and the distribution of information over theinternet. Under PRC advertising laws and regulations, we are obligated to monitor the advertising content shown on our websites to ensure that such contentis true and accurate and in full compliance with applicable laws and regulations. See “Item 4. Information on the Company—B. Business Overview—PRCRegulation—Regulations on Advertisements.” Under the internet information regulations, internet content providers and internet publishers are prohibitedfrom posting or displaying over the internet content that, among other things, compromises national security, harms the dignity or interests of the state,incites ethnic hatred or racial discrimination, undermines the PRC’s religious policy, disturbs social order, disseminates obscenity or pornography,encourages gambling, violence, murder or fear, incites the commission of a crime, infringes upon the lawful rights and interests of a third party, or is otherwiseprohibited by law or administrative regulations. See “Item 4. Information on the Company—B. Business Overview—PRC Regulation—Regulations onInternet Content Services.” 14Table of ContentsWe display advertisements on our websites. In addition, through our websites and user forums, we allow users to upload written materials, images,pictures and other content on our websites, and also allow users to share and link to content from other websites through our websites. Failure to identify andprevent illegal or inappropriate content from being displayed on or through our websites may subject us to liability. We cannot assure you that all of theadvertisements and content shown or posted on our websites adhere to the advertising and internet content laws and regulations, especially given theuncertainty in the interpretation of these PRC laws and regulations.If PRC regulatory authorities determine that any advertisements or content displayed on our websites do not adhere to applicable laws and regulations,they may require us to limit or eliminate the dissemination or availability of such advertisements and other content on our websites in the form of take-downorders or otherwise. Such regulatory authorities may also impose penalties on us, including fines, confiscation of advertising income or, in circumstancesinvolving more serious violations by us, the termination of our advertising or internet content license, any of which would materially and adversely affect ourbusiness and results of operations.In addition, we may be subject to claims by consumers asserting that the information on our websites is misleading, and we may not be able to recoverour losses from advertisers. As a result, our business, financial condition and results of operations could be materially and adversely affected.We may undertake acquisitions, investments, joint ventures or other alliances that could prove difficult to integrate, disrupt our business or otherwisenegatively impact our operating results and the value of your investment.As part of our business strategy, we regularly evaluate potential acquisitions, investments and alliances, including joint ventures and minority equityinvestments. These transactions involve numerous risks, including: • the failure to achieve the expected benefits of the acquisition, investment or alliance; • difficulties in, and the cost of, integrating operations, technologies, services and personnel; • write-offs of investments or acquired assets; • non-performance by, or conflicts of interest with, the parties with whom we enter into investments or alliances; • limited ability to monitor or control the actions of other parties with whom we enter into investments or alliances; • misuse of proprietary information shared in connection with an acquisition, investment or alliance; and • depending on the nature of the acquisition, investment or alliance, exposure to new regulatory risks.The realization of any of these risks could materially adversely affect our business. To the extent any of our directors or officers also invests in acapacity other than as our director or officer, his or her interest may not be aligned with ours.In addition, if we finance acquisitions by issuing equity or convertible debt securities, our existing shareholders may be diluted, which could affect themarket price of our ADSs.Furthermore, we may fail to identify or secure suitable acquisition, investment and other strategic opportunities, or our competitors may capitalize onsuch opportunities before we do, which could impair our ability to compete with our competitors and adversely affect our growth prospects and results ofoperations. 15Table of ContentsAny financial or economic crisis, or perceived threat of such a crisis, including a significant decrease in consumer confidence, may materially andadversely affect our business, financial condition and results of operations.The global financial markets experienced significant disruptions in 2008 and the United States, European and other economies went into recession.The recovery from the lows of 2008 and 2009 was uneven and the global financial markets are facing new challenges, including the escalation of theEuropean sovereign debt crisis since 2011, the hostilities in the Ukraine, the end of quantitative easing by the U.S. Federal Reserve and the economicslowdown in the Eurozone in 2014. It is unclear whether these challenges will be contained and what effects they each may have. There is considerableuncertainty over the long-term effects of the expansionary monetary and fiscal policies that have been adopted by the central banks and financial authoritiesof some of the world’s leading economies, including China’s. Economic conditions in China are sensitive to global economic conditions. Recently therehave been signs that the rate of China’s economic growth is declining. Any prolonged slowdown in China’s economic development might lead to tightercredit markets, increased market volatility, sudden drops in business and consumer confidence and dramatic changes in business and consumer behaviors. Inresponse to their perceived uncertainty in economic conditions, consumers might delay, reduce or cancel purchases of automobiles, which are still consideredluxury items in China, and our advertisers may also defer, reduce or cancel purchasing our services. To the extent any fluctuations in the Chinese economysignificantly affect automakers’ and dealers’ demand for our services or change their spending habits, our results of operations may be materially andadversely affected.Our third-party vendors may raise prices and as a result increase our operating expenses.We rely on third parties for certain essential services, such as internet services and we may not have any control over the costs of the services theyprovide. Any third-party service provider may raise their prices, which might not be commercially reasonable to us. If we are forced to seek other providers,there is no assurance that we will be able to find alternative providers willing or able to provide comparable high-quality services and there is no assurancethat such providers will not charge us higher prices for their services. If the prices that we are required to pay third-party vendors for services rise significantly,our results of operations could be adversely affected.We are a “controlled company” within the meaning of the NYSE corporate governance requirements, which may result in public investors not having asmuch protection as they would if we were not a controlled company.As of February 29, 2016, Telstra Holdings Pty Limited, a wholly owned subsidiary of Telstra Corporation Limited, or Telstra, owned 54.6% of the totalvoting rights in our company, and we are a “controlled company” under Section 303A of the NYSE Listed Company Manual. As a controlled company, werely on certain exemptions that are available to controlled companies from the NYSE corporate governance requirements, including the requirements that: • a majority of our board of directors consists of independent directors; • our compensation committee be composed entirely of independent directors; and • our corporate governance and nominating committee be composed entirely of independent directors.We are not required to and will not voluntarily meet these requirements. As a result of our use of the “controlled company” exemption, our investorswill not have the same protection as they would if we were not a controlled company.In addition, because Telstra beneficially owns 54.6% of the voting rights in our company, it has decisive influence in determining the outcome of anycorporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations and the sale of all or substantially all ofour assets, election of directors and other significant corporate actions. Without the consent of Telstra, we may be prevented from entering into transactionsthat could be beneficial to us. The interests of Telstra may differ from the interests of our other shareholders. Furthermore, Telstra’s business activities,although not related to our operations, may adversely impact reputation. 16Table of ContentsIf we fail to maintain an effective system of internal control over financial reporting, our ability to accurately and timely report our financial results orprevent fraud may be adversely affected, and investor confidence and the market price of our ADSs may be adversely impacted.The Securities and Exchange Commission, or the SEC, as required by Section 404 of the Sarbanes-Oxley Act of 2002, adopted rules requiring everypublic company to include a management report on the company’s internal control over financial reporting in its annual report, which containsmanagement’s assessment of the effectiveness of the company’s internal control over financial reporting. Our management has concluded that our internalcontrol over financial reporting was effective as of December 31, 2015. See “Item 15. Controls and Procedures—Management’s Annual Report on InternalControl over Financial Reporting.” Our independent registered public accounting firm has issued an attestation report, which has concluded that our internalcontrol over financial reporting was effective in all material aspects as of December 31, 2015. However, if we fail to maintain effective internal control overfinancial reporting in the future, our management and our independent registered public accounting firm may not be able to conclude that we have effectiveinternal control over financial reporting at a reasonable assurance level. This could in turn result in loss of investor confidence in the reliability of ourfinancial statements and negatively impact the trading price of our ADSs. Furthermore, we have incurred and anticipate that we will continue to incurconsiderable costs, management time and other resources in an effort to comply with Section 404 and other requirements of the Sarbanes-Oxley Act.We have a limited operating history, which makes it difficult to evaluate our business.We have a limited operating history. Autohome.com.cn and che168.com were launched in 2005 and 2004, respectively. Our company was incorporatedin June 2008 and acquired the entities that operated these two websites soon thereafter. Although we have achieved profitability in recent periods, ourlimited operating history makes the prediction of future results of operations difficult. Historical results of operations achieved by us should not be taken asindicative of the rate of growth, if any, that can be expected in the future. You should consider our future prospects in light of the risks and uncertainties fast-growing companies with limited operating histories may encounter.We have limited business insurance coverage.Insurance companies in China currently do not offer as extensive an array of insurance products as insurance companies do in more developedeconomies. We do not have any business liability or disruption insurance to cover our operations. We have determined that the costs of insuring for theserisks and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such insurance. Anyuninsured occurrence of business disruption may result in our incurring substantial costs and the diversion of resources, which could have an adverse effecton our results of operations and financial condition.We face risks related to health epidemics and natural disasters.Our business could be adversely affected by the effects of H1N1 flu, avian flu, Severe Acute Respiratory Syndrome, or SARS, or another epidemic.China reported a number of cases of SARS in 2003, which resulted in the closure of many businesses by the PRC government to prevent the transmission ofSARS. In recent years, there have been reports of occurrences of avian flu in various parts of China, including a few confirmed human cases and deaths. In2009, the global spread of H1N1 flu resulted in several confirmed infections and deaths in China. Restrictions on travel resulting from any prolongedoutbreak of H1N1 flu, avian flu, SARS or another epidemic could adversely affect our ability to market our services to users, automakers and automobiledealers throughout China. Our business operations could be disrupted if one of our employees is suspected of having H1N1 flu, avian flu, SARS or anotherepidemic, which could require that a certain number of our employees be quarantined and/or our offices be disinfected. In addition, our results of operationscould be adversely affected to the extent that H1N1 flu, avian flu, SARS or another outbreak harms the Chinese economy in general.We are also vulnerable to natural disasters and other calamities. Although our servers are hosted in an offsite location, our backup system does notcapture data on a real-time basis and we may be unable to recover certain data in the event of a server failure. We cannot assure you that any backup systemswill be adequate to protect us from the effects of fire, floods, typhoons, earthquakes, power loss, telecommunications failures, break-ins, war, riots, terroristattacks or similar events. Any of the foregoing events may give rise to server interruptions, breakdowns, system failures, technology platform failures orinternet failures, which could cause the loss or corruption of data or malfunctions of software or hardware as well as adversely affect our ability to provideservices. In addition, a severe disaster could affect the operations or financial condition of our customers and suppliers, which could harm our results ofoperations. For example, certain Japanese automakers or their joint ventures in China delayed or cancelled advertising campaigns following the earthquakeand tsunami in Japan in March 2011. 17Table of ContentsRisks Related to Our Corporate StructureSubstantial uncertainties exist with respect to the enactment timetable, final content, interpretation and implementation of draft PRC Foreign InvestmentLaw published for public comments and how it may impact the viability of our current corporate structure, corporate governance and business operations.The Ministry of Commerce published a discussion draft of the proposed Foreign Investment Law in January 2015 aiming to, upon its enactment,replace the trio of existing laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreignCooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillaryregulations. The draft Foreign Investment Law embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in linewith prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. TheMinistry of Commerce solicited comments on this draft in 2015, but no new draft has been published since then. As such, substantial uncertainties exist withrespect to its enactment timetable, final content, interpretation and implementation. The draft Foreign Investment Law, if enacted as proposed, may materiallyimpact the viability of our current corporate structure, corporate governance and business operations in many aspects.Among other things, the draft Foreign Investment Law expands the definition of foreign investment and introduces the principle of “actual control” indetermining whether a company is considered a foreign-invested enterprise, or an FIE. The draft Foreign Investment Law specifically provides that entitiesestablished in China but “controlled” by foreign investors will be treated as FIEs, whereas an entity set up in a foreign jurisdiction would nonetheless be,upon market entry clearance by the Ministry of Commerce, treated as a PRC domestic investor provided that the entity is “controlled” by PRC entities and/orcitizens. In this connection, “control” is broadly defined in the draft law to cover the following summarized categories: (i) holding 50% of more of the votingrights of the subject entity; (ii) holding less than 50% of the voting rights of the subject entity but having the power to secure at least 50% of the seats on theboard or other equivalent decision making bodies, or having the voting power to exert material influence on the board, the shareholders’ meeting or otherequivalent decision making bodies; or (iii) having the power to exert decisive influence, via contractual or trust arrangements, over the subject entity’soperations, financial matters or other key aspects of business operations. Once an entity is determined to be an FIE, it will be subject to the foreign investmentrestrictions or prohibitions set forth in a “negative list,” to be separately issued by the State Council later. Unless the underlying business of the FIE fallswithin the negative list, which calls for market entry clearance by the Ministry of Commerce, prior approval from the government authorities as mandated bythe existing foreign investment legal regime would no longer be required for establishment of the FIE.The VIE structure has been adopted by many PRC-based companies, including us, to obtain necessary licenses and permits in the industries that arecurrently subject to foreign investment restrictions in China. See “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions— Contractual Agreements with our Variable Interest Entities” and “—If the PRC government finds that the agreements that establish the structure foroperating our services in China do not comply with PRC governmental restrictions on foreign investment in internet businesses, or if these regulations or theinterpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations”below. Under the draft Foreign Investment Law, VIEs that are controlled via contractual arrangement would also be deemed as FIEs, if they are ultimately“controlled” by foreign investors. Therefore, for any companies with a VIE structure in an industry category that is on the “negative list,” the VIE structuremay be deemed legitimate only if the ultimate controlling person(s) is/are of PRC nationality (either PRC companies or PRC citizens). Conversely, if theactual controlling person(s) is/are of foreign nationalities, the VIEs will be treated as FIEs and any operation in the industry category on the “negative list”without market entry clearance may be considered as illegal. 18Table of ContentsThe draft Foreign Investment Law has not taken a position on what actions will be taken with respect to existing companies with a VIE structure,whether or not these companies are controlled by Chinese parties, while it is soliciting comments from the public on this point. The provision of internetcontent services, which we conduct through our VIEs, is subject to foreign investment restrictions set forth in the Catalogue for the Guidance of ForeignInvestment Industries, or the Catalogue, issued by the National Development and Reform Commission and the Ministry of Commerce in March 2015. It isunclear whether the new “negative list” will be different from the Catalogue. If the enacted version of the Foreign Investment Law and the final “negativelist” mandate further actions, such as Ministry of Commerce market entry clearance or certain restructuring of our corporate structure and operations, to becompleted by companies with existing VIE structure like us, we face substantial uncertainties as to whether these actions can be timely completed, or at all,and our business and financial condition may be materially and adversely affected.The draft Foreign Investment Law, if enacted as proposed, may also materially impact our corporate governance practice and increase our compliancecosts. For instance, the draft Foreign Investment Law imposes stringent ad hoc and periodic information reporting requirements on foreign investors and theapplicable FIEs. Aside from the investment implementation report and investment amendment report that are required at each investment and alteration ofinvestment specifics, an annual report is mandatory, and large foreign investors meeting certain criteria are required to report on a quarterly basis. Anycompany found to be non-compliant with these information reporting obligations may potentially be subject to fines and/or administrative or criminalliabilities, and the persons directly responsible may be subject to criminal liabilities.If the PRC government finds that the agreements that establish the structure for operating our services in China do not comply with PRC governmentalrestrictions on foreign investment in internet businesses, or if these regulations or the interpretation of existing regulations change in the future, we couldbe subject to severe penalties or be forced to relinquish our interests in those operations.Current PRC laws and regulations place certain restrictions on foreign ownership of companies that provide internet content services in China.Specifically, foreign ownership of internet service providers or other value-added telecommunication service providers may not exceed 50%. In addition,according to the Several Opinions on the Introduction of Foreign Investment in the Cultural Industry promulgated by the Ministry of Culture, the StateAdministration of Radio, Film and Television, or the SARFT, the General Administration of Press and Publication, or the GAPP, the National Developmentand Reform Commission and the Ministry of Commerce in June 2005, foreign investors are prohibited from investing in or operating “internet culturalactivities.” We are a Cayman Islands company and foreign legal person under PRC laws. Accordingly, neither we nor our wholly foreign-invested PRCsubsidiaries are currently eligible to apply for the required licenses for providing internet content services in China.As such, we conduct our business through contractual arrangements in China. In particular, we operate our internet content business through AutohomeInformation and Shengtuo Hongyuan. Autohome Information and Shengtuo Hongyuan are currently owned by individual shareholders who are PRC citizensand hold the requisite licenses or permits to provide internet content and advertising services in China. We do not have an equity interest in AutohomeInformation or Shengtuo Hongyuan but substantially control their operations and receive the economic benefits through a series of contractual arrangements.We have been and are expected to continue to be dependent upon Autohome Information and its subsidiaries and Shengtuo Hongyuan and its subsidiaries tooperate our businesses in the near future. For more information regarding these contractual arrangements, see “Item 7. Major Shareholders and Related PartyTransactions—B. Related Party Transactions— Contractual Agreements with our Variable Interest Entities.”Based on the advice of our PRC legal counsel, TransAsia Lawyers, the corporate structure of our VIEs and our subsidiaries in China are in compliancewith all existing PRC laws and regulations. However, as there are substantial uncertainties regarding the interpretation and application of PRC laws andregulations, we cannot assure you that the PRC government would agree that our corporate structure or any of the above contractual arrangements complywith PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future.PRC laws and regulations governing the validity of these contractual arrangements are uncertain and the relevant government authorities have broaddiscretion in interpreting these laws and regulations. 19Table of ContentsIf we or any of our current or future VIEs or subsidiaries are found to be in violation of any existing or future PRC laws or regulations, or fail to obtainor maintain any of the required permits or approvals, the relevant PRC regulatory authorities, including the Ministry of Industry and InformationTechnology, or the MIIT, which regulates internet information services companies and the China Securities Regulatory Commission, or the CSRC, wouldhave broad discretion in dealing with such violations, including levying fines, confiscating our income or the income of Autohome WFOE, ChezhiyingWFOE and the VIEs, revoking the business licenses or operating licenses of Autohome WFOE, Chezhiying WFOE and the VIEs, shutting down our servers orblocking our websites, discontinuing or placing restrictions or onerous conditions on our operations, requiring us to undergo a costly and disruptiverestructuring, or taking other enforcement actions that could be harmful to our business.Any of these actions could cause significant disruption to our business operations and severely damage our reputation, which would in turn materiallyand adversely affect our business and results of operations. In addition, if the imposition of any of these penalties causes us to lose the rights to direct theactivities of the VIEs or our right to receive their economic benefits, we would no longer be able to consolidate the VIEs.Our contractual arrangements with our VIEs may not be as effective in providing operational control as direct ownership.We have relied and expect to continue to rely on (i) contractual arrangements with Autohome Information and its subsidiaries and shareholders and(ii) contractual arrangements with Shengtuo Hongyuan and its subsidiaries and shareholders to operate our business. For a description of these contractualarrangements, see “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions— Contractual Agreements with our VariableInterest Entities.” These contractual arrangements may not be as effective in providing us with control over our VIEs as direct ownership. If we had directownership of these entities, we would be able to exercise our rights as a shareholder to effect changes in the board of directors, which in turn could effectchanges, subject to any applicable fiduciary obligations, at the management level. However, under the current contractual arrangements, we rely on theperformance by these entities and their shareholders of their contractual obligations to exercise control over our VIEs. Therefore, our contractualarrangements with our VIEs may not be as effective in ensuring our control over their operations as direct ownership would be.The shareholders of our VIEs may breach, or cause our VIEs to breach, or refuse to renew, the existing contractual arrangements we have with them andour VIEs. Any failure by our VIEs or their shareholders to perform their obligations under our contractual arrangements with them would have a materialadverse effect on our business and financial condition.The shareholders of our VIEs may breach, or cause our VIEs to breach, or refuse to renew, the existing contractual arrangements we have with them andour VIEs. If our VIEs or their shareholders fail to perform their obligations under the contractual arrangements, we may have to incur substantial costs andexpend resources to enforce our rights under the contracts. We may have to rely on legal remedies under PRC law, including seeking specific performance orinjunctive relief and claiming damages, which may not be effective. For example, if the shareholders of Autohome Information and Shengtuo Hongyuan wereto refuse to transfer their equity interests in those companies to us or our designee when we exercise the call option pursuant to these contractualarrangements, if they transfer the equity interests to other persons against our interests, or if they were otherwise to act in bad faith toward us, then we mayhave to take legal actions to compel them to perform their contractual obligations.All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly,these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legalsystem in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit ourability to enforce these contractual arrangements. Under PRC law, rulings by arbitrators are final, parties cannot appeal the arbitration results in courts, andthe prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings, which would incuradditional expenses and delay. In the event we are unable to enforce these contractual arrangements, we may not be able to exert effective control over ourVIEs, and our ability to conduct our business may be negatively affected. 20Table of ContentsContractual arrangements our subsidiary has entered into with our VIEs may be subject to scrutiny by the PRC tax authorities and a finding that we or ourVIEs owe additional taxes could substantially reduce our consolidated net income and the value of your investment.Under PRC laws and regulations, arrangements and transactions among related parties may be subject to audit or challenge by the PRC tax authoritieswithin ten years after the taxable year when the transactions are conducted. We could face material and adverse tax consequences if the PRC tax authoritiesdetermine that the contractual arrangements among Autohome WFOE, Chezhiying WFOE, our VIEs and the shareholders of our VIEs do not represent arm’s-length prices and consequently adjust Autohome WFOE and Chezhiying WFOE’s or our VIEs’ income in the form of a transfer pricing adjustment. A transferpricing adjustment could, among other things, result in a reduction, for PRC tax purposes, of expense deductions recorded by our VIEs, which could in turnincrease their tax liabilities. In addition, the PRC tax authorities may impose late payment fees and other penalties on Autohome WFOE, Chezhiying WFOEor our VIEs for any unpaid taxes. Our consolidated net income may be materially and adversely affected if Autohome WFOE and Chezhiying WFOE or ourVIEs’ tax liabilities increase or if they are subject to late payment fees or other penalties.The shareholders of our VIEs may have potential conflicts of interest with us, which may materially and adversely affect our business.The shareholders of Guangzhou Advertising, Shanghai Advertising and Autohome Information are James Zhi Qin, our director and chief executiveofficer, Xiang Li, our director, and Zheng Fan, our vice president. They hold 8%, 68% and 24%, respectively, of the equity interests in GuangzhouAdvertising, Shanghai Advertising and Autohome Information. Each of these three individuals is also a beneficial owner of our company and a PRC citizen.The shareholders of Shengtuo Hongyuan are James Zhi Qin and Zheng Fan, each holding 50% of the equity interests in Shengtuo Hongyuan. Conflicts ofinterest may arise between their roles as directors, officers and/or beneficial owners of our holding company and as shareholders of our VIEs. In addition, thecontrolling shareholders of our company are substantially different from that of the VIEs, which may heighten any conflicts of interest that could arisebetween the two groups of shareholders. We cannot assure you that when conflicts of interest arise, any or all of these equity holders will act in the bestinterests of our company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential conflicts of interestbetween these equity holders and our company. We rely on these individuals to comply with the laws of China, which protect contracts, provide thatdirectors and executive officers owe a duty of loyalty and a duty of diligence to our company and require them to avoid conflicts of interest and not to takeadvantage of their positions for personal gain. We also rely on the laws of the Cayman Islands, which provide that directors owe a duty of care and a duty ofloyalty to our company. However, the legal frameworks of China and the Cayman Islands do not provide guidance on resolving conflicts in the event of aconflict with another corporate governance regime. If we cannot resolve any conflict of interest or dispute between us and the shareholders of our VIEs, wewould have to rely on legal proceedings, which could result in disruption of our business and subject us to substantial uncertainty as to the outcome of anysuch legal proceedings.We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have. Anylimitation on the ability of our PRC subsidiaries to pay dividends to us could have a material adverse effect on our ability to conduct our business.We are a holding company, and we may rely on dividends and other distributions on equity to be paid by our wholly owned PRC subsidiaries for ourcash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt wemay incur. If our PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividendsor make other distributions to us.Under PRC laws and regulations, our PRC subsidiaries, as wholly foreign-owned enterprises in the PRC, may pay dividends only out of theiraccumulated profits as determined in accordance with PRC accounting standards and regulations. In addition, wholly foreign-owned enterprises are requiredto set aside at least 10% of their accumulated after-tax profits, if any, each year to fund certain statutory reserve funds, until the aggregate amount of suchfunds reach 50% of their registered capital. These statutory reserve funds are not distributable as cash dividends. 21Table of ContentsAny limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit ourability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.PRC regulation of loans to, and direct investment in, PRC entities by offshore holding companies and governmental control of currency conversion mayrestrict or prevent us from using the proceeds of our equity offerings to make loans to our PRC subsidiaries and VIEs or to make additional capitalcontributions to our PRC subsidiaries, which may materially and adversely affect our liquidity and our ability to fund and expand our business.We are an offshore holding company conducting our operations in China through our PRC subsidiaries and VIEs. We may make loans to our PRCsubsidiaries and VIEs, or we may make additional capital contributions to our PRC subsidiaries. Any loans by us to our PRC subsidiaries, which are treated asforeign-invested enterprises under PRC law, are subject to PRC regulations and foreign exchange loan registrations. For example, loans by us to AutohomeWFOE or Chezhiying WFOE to finance its activities cannot exceed statutory limits and must be registered with the local counterpart of the StateAdministration of Foreign Exchange, or SAFE. We may also decide to finance Autohome WFOE and Chezhiying WFOE by means of capital contributions.These capital contributions must be approved by the PRC Ministry of Commerce or its local counterpart. Due to the restrictions imposed on loans in foreigncurrencies extended to any PRC domestic companies, we are not likely to make such loans to our VIEs, which are PRC domestic companies. Further, we arenot likely to finance the activities of our VIEs by means of capital contributions due to regulatory restrictions relating to foreign investment in PRC domesticenterprises engaged in internet content services and online advertising businesses.SAFE promulgated a circular on November 19, 2010, or Circular No. 59, which tightens the examination on the authenticity of settlement of netproceeds from an offering and requires that the settlement of net proceeds shall be in accordance with the description in its prospectus. On March 30, 2015,the SAFE issued the Circular on Reform of the Administrative Rules of the Payment and Settlement of Foreign Exchange Capital of Foreign-InvestedEnterprises, or SAFE Circular 19, which became effective on June 1, 2015. Pursuant to SAFE Circular 19, foreign-invested enterprises may either continue tofollow the current payment-based foreign currency settlement system or choose to follow the “conversion-at-will” system for foreign currency settlement.Where a foreign-invested enterprise follows the conversion-at-will system for foreign currency settlement, it may convert part or all of the amount of theforeign currency in its capital account into Renminbi at any time. The converted Renminbi will be kept in a designated account labeled as settled butpending payment, and if the foreign-invested enterprise needs to make payment from such designated account, it still needs to go through the review processwith its bank and provide necessary supporting documents. SAFE Circular 19, therefore, has substantially lifted the restrictions on the usage by a foreign-invested enterprise of its Renminbi registered capital converted from foreign currencies. According to SAFE Circular 19, such Renminbi capital may be usedat the discretion of the foreign-invested enterprise and the SAFE will eliminate the prior approval requirement and only examine the authenticity of thedeclared usage afterwards. Nevertheless, foreign-invested enterprises like our PRC subsidiaries are still not allowed to extend intercompany loans to our VIEs.In addition, as SAFE Circular 19 was promulgated recently, there remain substantial uncertainties with respect to the interpretation and implementation ofthis circular by relevant authorities.In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies wecannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, ifat all, with respect to future loans by us to our PRC subsidiaries or VIEs or with respect to future capital contributions by us to our PRC subsidiaries. If we failto complete such registrations or obtain such approvals, our ability to use the proceeds we received from our equity offerings and to capitalize or otherwisefund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity and our ability to fund and expand ourbusiness. 22Table of ContentsIf our PRC subsidiaries or VIEs become the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy substantially all ofour assets, which could reduce the size of our operations and materially and adversely affect our business, our ability to generate revenues and the marketprice of our ADSs.As part of the contractual arrangements with our VIEs and their shareholders, Autohome Information and Shengtuo Hongyuan hold operating permitsand licenses and substantially all of the assets that are important to the operation of our business. We expect to continue to be dependent on our VIEs tooperate a significant portion of our business in China. If our VIEs go bankrupt and all or part of their assets become subject to liens or rights of third-partycreditors, we may be unable to continue some or all of our business activities, which would materially and adversely affect our business, financial conditionand results of operations. If our VIEs undergo a voluntary or involuntary liquidation proceeding, their equity holders or unrelated third-party creditors mayclaim rights to some or all of these assets, thereby hindering our ability to operate our business, which would materially and adversely affect our business, ourability to generate revenues and the market price of our ADSs.Risks Related to Doing Business in ChinaChanges in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and operations.The majority of our assets and operations are located in China. Accordingly, our business, financial condition, results of operations and prospects maybe influenced to a significant degree by political, economic and social conditions in China generally and by continued economic growth in China as awhole.The Chinese economy differs from the economies of most developed countries in many respects, including the level of government involvement, levelof development, growth rate, control of foreign exchange and allocation of resources. Although the Chinese government has implemented measures since thelate 1970s emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment ofimproved corporate governance in business enterprises, a substantial portion of productive assets in China are still owned by the Chinese government. Inaddition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinesegovernment also exercises significant control over China’s economic growth through allocating resources, controlling payment of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.While the Chinese economy has experienced significant growth over the past decades, the growth has been uneven, both geographically and amongvarious sectors of the economy, and the rate of growth has been slowing. The Chinese government has implemented various measures to encourage economicgrowth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us. Forexample, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in taxregulations. In addition, in the past the Chinese government has implemented certain measures, including interest rate increases, to control the pace ofeconomic growth. These measures may cause decreased economic activity in China, which may adversely affect our business and operating results.Uncertainties with respect to the PRC legal system could adversely affect us.We conduct our business primarily through our PRC subsidiaries and VIEs in China. Our operations in China are governed by PRC laws andregulations. Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to you and us. In1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall effectof legislation over the past several decades has significantly enhanced the protections afforded to various forms of foreign investments in China. However,China has not developed a fully integrated legal system, and recently enacted laws and regulations may not sufficiently cover all aspects of economicactivities in China. In particular, because these laws and regulations are relatively new, and because of the limited volume of published decisions and theirnonbinding nature, the interpretation and enforcement of these laws and regulations involve uncertainties. Since PRC administrative and court authoritieshave significant discretion in interpreting and implementing statutory and contractual terms, it may be difficult to evaluate the outcome of administrativeand court proceedings and the level of legal protection we enjoy. Furthermore, the PRC legal system is based in part on government policies and internalrules, some of which are not published on a timely basis or at all, which may have a retroactive effect. As a result, we may not be aware of our violation ofthese policies and rules until sometime after the violation. In addition, any administrative and court proceedings in China may be protracted, resulting insubstantial costs and diversion of resources and management attention. 23Table of ContentsWe may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet business and companies.The PRC government extensively regulates the internet industry, including foreign ownership of, and the licensing and permit requirements pertainingto, companies in the internet industry. These internet-related laws and regulations are relatively new and evolving, and their interpretation and enforcementinvolve significant uncertainty. As a result, in certain circumstances it may be difficult to determine what actions or omissions may be deemed to beviolations of applicable laws and regulations. Issues, risks and uncertainties relating to the PRC government regulation of the internet industry include, butare not limited to, the following: • We only have contractual control over our websites. We do not own the websites due to the restriction on foreign investment in businessesproviding value-added telecommunication services in China, which includes internet content provision services. • There are uncertainties relating to the regulation of the internet industry in China, including evolving licensing requirements. This means thatpermits, licenses or operations at some of our companies may be subject to challenge, or we may fail to obtain permits or licenses that applicableregulators may deem necessary for our operations, or we may not be able to obtain or renew permits or licenses. For example, both AutohomeInformation and Shengtuo Hongyuan may be required to obtain additional licenses, including internet publishing licenses and internet newsinformation service licenses, if the release of articles and information or the broadcast of videos on the websites autohome.com.cn andche168.com is deemed by the PRC regulatory authorities as being the provision of internet publishing service, internet news information service,or internet culture operating service. See “Item 4. Information on the Company—B. Business Overview—PRC Regulation—Regulations onOnline Cultural Services,” “Item 4. Information on the Company—B. Business Overview—PRC Regulation—Regulations on InternetPublishing” and “Item 4. Information on the Company—B. Business Overview—PRC Regulation—Regulations on Internet News InformationService” for additional details. • The evolving PRC regulatory system for the internet industry may lead to the establishment of new regulatory agencies. For example, theCyberspace Administration of China was established in 2014, as the central Internet censorship, oversight and control agency for the PRC. • New laws and regulations may be promulgated to regulate internet activities, including online advertising businesses. As such, additionallicenses may be required for our operations. If our operations do not comply with these new regulations at the time they become effective, or ifwe fail to obtain any licenses required under these new laws and regulations, we could be subject to penalties.On July 13, 2006, the MIIT, the predecessor of which was the Ministry of Information Industry, issued the Notice of the Ministry of InformationIndustry on Intensifying the Administration of Foreign Investment in Value-added Telecommunications Services. This notice prohibits domestictelecommunication service providers from leasing, transferring or selling telecommunications business operating licenses to any foreign investor in any form,or providing any resources, sites or facilities to any foreign investor for their illegal operation of a telecommunications business in China. According to thisnotice, either the holder of a value-added telecommunication services operation permit or its shareholders must directly own the domain names andtrademarks used by such license holders in their provision of value-added telecommunication services. The notice also requires each license holder to havethe necessary facilities, including servers, for its approved business operations and to maintain such facilities in the regions covered by its license. Currently,Autohome Information and Shengtuo Hongyuan, two of our VIEs, own the related domain names and trademarks and hold the internet content providerlicenses, or ICP licenses, necessary to conduct our operations for websites in China.The interpretation and application of existing PRC laws, regulations and policies and possible new laws, regulations or policies relating to the internetindustry have created substantial uncertainties regarding the legality of existing and future foreign investments in, and the businesses and activities of,internet businesses in China, including our business. We cannot assure you that we will be able to maintain our existing licenses or obtain any new licenses ifrequired by any new laws or regulations. There are also risks that we may be found to violate existing or future laws and regulations given the uncertainty andcomplexity of China’s regulation of the internet industry. If we or our VIEs fail to obtain or maintain any of the required assets, licenses or approvals, ourcontinued business operations in the internet industry may subject us to various penalties, including the confiscation of illegal net revenues, fines and thediscontinuation or restriction of our operations, any of which would materially and adversely affect our business and results of operations. 24Table of ContentsThere are substantial uncertainties with respect to the enactment, final content, interpretation and implementation of the Draft Cyber Security Law andhow it may impact our business operations.On July 1, 2015, the Standing Committee of the National People’s Congress of China issued the National Security Law, which came into effect on thesame day. The National Security Law provides that the state shall safeguard sovereignty, security and development interests of cyberspace in the state, andthe state shall establish a national security review and supervision system to review including foreign investment, key technologies, internet and informationtechnology products and services and other important activities that are likely to impact the national security of China.On July 6, 2015, the Standing Committee of the National People’s Congress of China released the Draft Cyber Security Law to solicit publiccomments. Once adopted, this will be the first Chinese law that focuses exclusively on cyber security. The Draft Cyber Security Law sets high requirementsfor the operational security of facilities deemed to be part of PRC’s “key information infrastructure facilities,” and includes the integration of nationalsecurity examinations under certain circumstances. Among which, “key information infrastructure facilities” includes networks and systems owned ormanaged by network service providers with a significant number of users. The Draft Cyber Security Law provides that key information infrastructure facilitiesoperators must set up specialized internal security management divisions and assign appropriate person(s) responsible for security management.Additionally, these operators must conduct background checks on the person(s) responsible for security management and on personnel in critical positions. Itfurther provides that when operators of key information infrastructure facilities purchase network products or services that may affect or involve nationalsecurity, the operator must pass a security examination jointly arranged by the national network and information authority and the relevant governmentdepartments and the national security examination process under the National Security Law will be triggered. The operators of key information infrastructurefacilities must store important data collected and generated, including citizens’ personal information, exclusively within the territory of the People’sRepublic of China. The Draft Cyber Security Law also sets increasingly more stringent requirements for network operators. The Draft Cyber Security Lawestablishes censorship duties for network operators, including digital information distribution service providers and application software download serviceproviders. When these operators notice a prohibited publication, or the transmission of illicit information, they must promptly stop transmitting theinformation and take measures necessary to prevent the spread of that information. Operators must maintain a record of these incidents when they occur andreport them to the competent authorities. The Draft Cyber Security Law provides relevant subjects with solid legal authorities who are empowered to takemeasures to cut off any transmission(s) of prohibited information on communication networks. Upon finding prohibited information, those authorities willrequire that the network operators stop the transmission and take the necessary measures to remove any prohibited content. Where the above prohibitedinformation comes from outside the territory of China, these authorities may request that all related institutions to take necessary measures to stop the flow ofprohibited information.There are substantial uncertainties with respect to the enactment timetable, final content, interpretation and implementation of the Draft Cyber SecurityLaw. If enacted as proposed, the Draft Cyber Security Law could cause us to incur substantial costs or require us to change our business practices in a mannermaterially adverse to our business.Fluctuations in exchange rates may have a material adverse effect on your investment.Substantially all of our revenues and costs are denominated in RMB. The conversion of RMB into foreign currencies, including U.S. dollars, is basedon rates set by the People’s Bank of China. In July 2005, the PRC government changed its decades-old policy of pegging the value of the RMB to the U.S.dollar, and the RMB appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciationhalted and the exchange rate between the RMB and the U.S. dollar remained within a narrow band. Since June 2010, the RMB has fluctuated against the U.S.dollar, at times significantly and unpredictably. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange ratebetween the RMB and the U.S. dollar in the future. 25Table of ContentsTo the extent that we need to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation ofthe RMB against the U.S. dollar would have an adverse effect on the RMB amount we would receive from the conversion. Conversely, if we decide to convertRMB into U.S. dollars for the purpose of making payments for dividends on our ordinary shares or ADSs, strategic acquisitions or investments or otherbusiness purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount available to us. In addition, asignificant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of our earnings, which in turn could adverselyaffect the price of our ADSs.Very limited hedging options are available in China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into anyhedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in thefuture, the availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or to hedge our exposureat all. In addition, our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert RMB into foreigncurrency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment.The PRC government imposes controls on the convertibility of the RMB into foreign currencies and, in certain cases, the remittance of currency out ofChina. We receive substantially all of our revenues in RMB. Under existing PRC foreign exchange regulations, payments of current account items, includingprofit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFEapproval by complying with certain procedural requirements. Therefore, Autohome WFOE and Chezhiying WFOE are able to pay dividends in foreigncurrencies to us without prior approval from SAFE. However, approval from or registration with appropriate government authorities is required where RMB isto be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies.The PRC government may also at its discretion restrict access to foreign currencies for current account transactions in the future. If the foreign exchangecontrol system prevents us from obtaining sufficient foreign currency to satisfy our foreign currency demands, we may not be able to pay dividends in foreigncurrencies to our shareholders, including holders of our ADSs.Certain regulations in the PRC may make it more difficult for us to pursue growth through acquisitions.Among other things, certain regulations and rules concerning mergers and acquisitions established additional procedures and requirements that couldmake merger and acquisition activities by foreign investors more time-consuming and complex. For example, these regulations require that the Ministry ofCommerce be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise or a foreigncompany with substantial PRC operations, if certain thresholds under the Provisions on Thresholds for Prior Notification of Concentrations of Undertakings,issued by the State Council on August 3, 2008, are triggered. According to the Implementing Rules Concerning Security Review on Mergers andAcquisitions by Foreign Investors of Domestic Enterprises issued by the Ministry of Commerce in August 2011, mergers and acquisitions by foreigninvestors involved in an industry related to national security are subject to strict review by the Ministry of Commerce. These rules also prohibit anytransactions attempting to bypass such security review, including by controlling entities through contractual arrangements. We believe that our business isnot in an industry related to national security. However, we cannot preclude the possibility that the Ministry of Commerce or other government agencies maypublish interpretations contrary to our understanding or broaden the scope of such security review in the future. Although we have no current plans to makeany acquisitions, we may elect to grow our business in the future in part by directly acquiring complementary businesses in China. Complying with therequirements of these regulations to complete such transactions could be time-consuming, and any required approval processes, including obtainingapproval from the Ministry of Commerce, may delay or inhibit our ability to complete such transactions. 26Table of ContentsPRC regulations relating to the establishment of offshore holding companies by PRC residents may subject our PRC resident beneficial owners or ourPRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our PRC subsidiaries’ ability to increase theirregistered capital or distribute profits to us, or may otherwise adversely affect us.On July 4, 2014, SAFE promulgated the Notice on Relevant Issues Concerning Foreign Exchange Control of Domestic Residents’ Overseas Investmentand Financing and Roundtrip Investment through Offshore Special Purpose Vehicles, or SAFE Circular No. 37, which replaced the former Notice on RelevantIssues Concerning Foreign Exchange Administration for PRC Residents to Engage in Financing and Inbound Investment via Overseas Special PurposeVehicles (generally known as SAFE Circular No. 75) promulgated by SAFE on October 21, 2005.SAFE Circular No. 37 requires PRC residents to register with local branches of SAFE in connection with their direct establishment or indirect control ofan offshore entity, for the purpose of overseas investment and financing, with such PRC residents’ legally owned assets or equity interests in domesticenterprises or offshore assets or interests, which is referred to in SAFE Circular No. 37 as a “special purpose vehicle.” SAFE Circular No. 37 further requiresamendment to the registration in the event of any significant changes with respect to the special purpose vehicle, such as an increase or decrease of capitalcontributed by PRC residents share transfer or exchange, merger, division or other material events. In the event that a PRC resident holding interests in aspecial purpose vehicle fails to complete the required SAFE registration, the PRC subsidiaries of that special purpose vehicle may be prohibited from makingprofit distributions to the offshore parent and from carrying out subsequent cross-border foreign exchange activities and the special purpose vehicle may berestricted in its ability to contribute additional capital into its PRC subsidiaries. Furthermore, failure to comply with the various SAFE registrationrequirements described above could result in liability under PRC law for evasion of foreign exchange controls.Currently, all of our shareholders who are PRC residents have registered with the competent local branch of SAFE with respect to their investments inour company as required by SAFE Circular No. 75 and will update their registration filings with SAFE under SAFE Circular No. 37 when there are anychanges that should be registered under SAFE Circular No. 37. However, we may not at all times be fully aware or informed of the identities of all ourshareholders or beneficial owners that are required to make such registrations, and if or when we have such shareholders or beneficial owners, we may notalways be able to compel them to comply with SAFE Circular No. 37 requirements. As a result, we cannot assure you that all of our shareholders or beneficialowners who are PRC residents will at all times comply with, or in the future make or obtain any applicable registrations or approvals required by, SAFECircular No. 37 or other related regulations. The failure or inability of such individuals to comply with the registration procedures set forth in theseregulations may subject us to fines or legal sanctions, restrictions on our cross-border investment activities or our PRC subsidiaries’ ability to distributedividends to, or obtain foreign-exchange-dominated loans from, our company, or prevent us from making distributions or paying dividends. As a result, ourbusiness operations and our ability to make distributions to you could be materially and adversely affected.Furthermore, as these foreign exchange regulations are still relatively new and their interpretation and implementation has been constantly evolving, itis unclear how these regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implementedby the relevant government authorities. We cannot predict how these regulations will affect our business operations or future strategy. In addition, if wedecide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain thenecessary approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict our ability toimplement our acquisition strategy and could adversely affect our business and prospects. 27Table of ContentsFailure to comply with PRC regulations regarding the registration requirements for employee share ownership plans or share option plans may subject thePRC plan participants or us to fines and other legal or administrative sanctions.In December 2006, the People’s Bank of China, or PBOC, promulgated the Administrative Measures of Foreign Exchange Matters for Individuals,which sets forth the respective requirements for foreign exchange transactions by individuals (both PRC and non-PRC citizens) under either the currentaccount or the capital account. In January 2007, SAFE issued relevant implementing rules that specified approval requirements for certain capital accounttransactions such as a PRC citizen’s participation in the employee stock incentive plans or share option plans of an overseas publicly listed company. InFebruary 2012, SAFE promulgated the Notice on the Administration of Foreign Exchange Matters for Domestic Individuals Participating in the StockIncentive Plans of Overseas Listed Companies, or the Stock Option Notice. The Stock Option Notice supersedes the requirements and procedures for theregistration of PRC resident individuals’ participation in stock incentive plans set forth by certain rules promulgated by SAFE in March 2007. Under thesemeasures, PRC resident individuals who participate in an employee stock incentive plan or a share option plan in an overseas publicly listed company arerequired to register with SAFE and complete certain other procedures. A PRC domestic qualified agent appointed through the PRC subsidiaries of suchoverseas listed company must file applications on behalf of such PRC resident individuals with SAFE or its local counterpart to obtain approval for an annualallowance with respect to the foreign exchange in connection with stock holding or share option exercises. With the approval from SAFE or its localcounterpart, the PRC domestic qualified agent must open a special foreign exchange account at a PRC domestic bank to hold the funds required inconnection with the stock purchase or option exercise, payment received upon sales of shares, dividends issued on the stock and any other income orexpenditures approved by SAFE or its local counterpart. We and our PRC resident employees who participate in our share incentive plans are subject to theseregulations as we are an overseas listed company. We have made registration with the local counterparts of SAFE for our PRC resident employees whoparticipate in our share incentive plans as required under the Stock Option notice and relevant rules. If we or our PRC optionees fail to comply with theseregulations, we or our PRC optionees may be subject to fines and other legal or administrative sanctions. See “Item 4. Information on the Company—B.Business Overview—PRC Regulation—Regulations on Employee Stock Options Plans.”We face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.Pursuant to the Notice on Strengthening Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises, or SATCircular 698, issued by the State Administration of Taxation, or the SAT, on December 10, 2009 with retroactive effect from January 1, 2008, where a non-resident enterprise transfers the equity interests of a PRC resident enterprise indirectly via disposing of the equity interests of an overseas holding company,or an Indirect Transfer, and such overseas holding company is located in a tax jurisdiction that: (a) has an effective tax rate less than 12.5% or (b) does not taxthe foreign income of its residents, the non-resident enterprise, being the transferor, shall report to the relevant tax authority of the PRC resident enterprisethis Indirect Transfer. Using a “substance over form” principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacksa reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such IndirectTransfer may be subject to PRC withholding tax at a rate of up to 10%. SAT Circular 698 also provides that, where a non-PRC resident enterprise transfers itsequity interests in a PRC resident enterprise to its related parties at a price lower than the fair market value, the relevant tax authority has the power to make areasonable adjustment to the taxable income of the transaction.On February 3, 2015, the SAT issued SAT Notice 7 to supersede the existing tax rules in relation to the Indirect Transfer, while the other provisions ofSAT Circular 698 remain in force. SAT Notice 7 introduces a more sophisticated anti-avoidance guidance. SAT Notice 7 extends its tax jurisdiction tocapture not only Indirect Transfer as set forth under SAT Circular 698 but also transactions involving transfer of movable and immovable property in Chinaof a foreign company through the offshore transfer of a foreign intermediate holding company. According to SAT Notice 7, if a non-resident enterpriseindirectly transfers PRC taxable properties through an arrangement without reasonable commercial purpose but to avoid PRC Corporate Income Tax, theIndirect Transfer shall be re-characterized and treated as a direct transfer of PRC taxable properties. SAT Notice 7 also interprets the term “transfer of theequity interest in a foreign intermediate holding company” broadly. In addition, SAT Notice 7 provides clearer criteria than Circular 698 on how to assessreasonable commercial purposes and introduces safe harbor scenarios applicable to the public trading of shares in a listed company holding taxable PRCassets and indirect transfers resulting from a corporate restructuring. 28Table of ContentsFurther, SAT Notice 7 replaces the compulsory reporting requirement in SAT Circular 698 with a voluntary reporting regime and the criteria set forth inCircular 698 for indirect transfer reporting have been abolished. Both the foreign transferor and the transferee, and the PRC tax resident enterprise whoseequity interests being transferred may voluntarily report the transfer by submitting the documents required in SAT Notice 7. In addition to the voluntaryreporting, SAT Notice 7 empowers the Chinese tax authorities to require various documents from the parties involved. Although SAT Notice 7 providesclarities in many important areas such as reasonable commercial purpose and reporting requirements, it brings challenges to both the foreign transferor andtransferee of the Indirect Transfer as they are required to make a self-assessment on whether the transaction should be subject to PRC tax and to file orwithhold the PRC tax accordingly. It also introduces the interest regime by providing that where a transferor fails to file and pay tax on time, and where awithholding agent fails to withhold the tax, interest will be charged on a daily basis. If the transferor has provided the required documents and information orhas filed and paid the tax within 30 days from the date that the share transfer contract or agreement is signed, interest shall be calculated based on thebenchmark interest rate; otherwise, the benchmark interest rate plus 5% will apply.SAT Notice 7 became effective on February 3, 2015, but it also applies to Indirect Transfers which occurred before its issuance but have not receivedassessments from the tax authorities. SAT Circular 698 and SAT Notice 7 may be determined by the tax authorities to be applicable to our corporaterestructuring where non-resident investors were involved, if any of such transactions were determined by the tax authorities to lack reasonable commercialpurpose. As a result, we and our non-resident investors in such transactions may become at risk of being taxed under SAT Circular 698 and SAT Notice 7 andwe may be required to expend valuable resources to comply with SAT Circular 698 and SAT Notice 7 or to establish that we should not be taxed under thegeneral anti-avoidance rule of the PRC Enterprise Income Tax Law, which may have a material adverse effect on our financial condition and results ofoperations or such non-resident investors’ investments in us.There are still uncertainties as to the interpretation and implementation of SAT Notice 7. The PRC tax authorities have the discretion under SATCircular 698 and SAT Notice 7 to make adjustments to the taxable capital gains based on the difference between the fair value of the equity intereststransferred and the cost of investment. We may pursue acquisitions in the future that may involve complex corporate structures. If we are considered a non-resident enterprise under the PRC Enterprise Income Tax Law and if the PRC tax authorities make adjustments to the taxable income of these transactionsunder Circular 698 and SAT Notice 7, our income tax expenses associated with such potential acquisitions will be increased, which may have an adverseeffect on our financial condition and results of operations.Discontinuation of any of the preferential tax treatments or imposition of any additional taxes could adversely affect our financial condition and results ofoperations.China passed a new PRC Enterprise Income Tax Law and its implementation rules, which became effective on January 1, 2008. The Enterprise IncomeTax Law (a) reduces the statutory rate of the enterprise income tax from 33% to 25%, (b) permits companies established before March 16, 2007 to continue toenjoy their existing tax incentives, adjusted by certain transitional phase-out rules promulgated by the State Council on December 26, 2007, and(c) introduces new tax incentives, subject to various qualification criteria.The Enterprise Income Tax Law and its implementation rules permit certain “high and new technology enterprises strongly supported by the state”which hold independent ownership of core intellectual property to enjoy a preferential enterprise income tax rate of 15% subject to certain qualificationcriteria. Autohome WFOE was recognized jointly by the Beijing Municipal Science and Technology Commission and other authorities as a “high and newtechnology enterprise,” or HNTE, on September 17, 2010 and therefore was eligible for the preferential 15% enterprise income tax rate from 2010 to 2012upon its filing with the relevant tax authority. The qualification as an HNTE is subject to annual evaluation and a three-year review by the relevantauthorities in China. We have obtained renewal of the HNTE qualification through 2015. Beijing Autohome Technologies Co., Ltd., or Beijing AutohomeTechnologies, was recognized as an HNTE in July 2015 and therefore was eligible for the preferential 15% enterprise income tax rate from 2015 to 2017upon their filing with the relevant tax authority. Beijing Prbrownies Software Co., Ltd., or Beijing Prbrownies, was recognized as an HNTE on February 29,2016, qualifying it for the preferential 15% enterprise income tax rate from 2015 to 2017 upon its filing with the relevant tax authority. However, should welose this qualification for any reason, Autohome WFOE, Beijing Autohome Technologies and Beijing Prbrownies will no longer enjoy the 15% preferentialtax rate, and the applicable enterprise income tax rate may increase to up to 25%. 29Table of ContentsOur global income and the dividends that we may receive from our PRC subsidiaries, dividends distributed to our non-PRC shareholders and ADS holders,and gains recognized by such shareholders or ADS holders, may be subject to PRC taxes under the Enterprise Income Tax Law, which would have amaterial adverse effect on our results of operations.Under the Enterprise Income Tax Law and its implementation rules, both of which became effective on January 1, 2008, an enterprise establishedoutside of the PRC with “de facto management bodies” within the PRC is considered a resident enterprise and will be subject to the enterprise income tax atthe rate of 25% on its global income. The implementation rules define the term “de facto management bodies” as “establishments that carry out substantialand overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc. of an enterprise.” The SATissued the Notice Regarding the Determination of Chinese-Controlled Offshore Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of DeFacto Management Bodies, or SAT Circular 82, on April 22, 2009. SAT Circular 82 provides certain specific criteria for determining whether the “de factomanagement body” of a Chinese-controlled offshore-incorporated enterprise is located in China. Although SAT Circular 82 only applies to offshoreenterprises controlled by PRC enterprises, not those controlled by PRC individuals, the determining criteria set forth in Circular 82 may reflect the SAT’sgeneral position on how the “de facto management body” test should be applied in determining the tax resident status of offshore enterprises, regardless ofwhether they are controlled by PRC enterprises or individuals. Although we do not believe that our legal entities organized outside of the PRC constitutePRC resident enterprises, it is possible that the PRC tax authorities could reach a different conclusion. In such case, we may be considered a PRC residententerprise and may therefore be subject to enterprise income tax at a rate of 25% on our global income. If we are considered a PRC resident enterprise andearn income other than dividends from our PRC subsidiaries, a 25% enterprise income tax on our global income could significantly increase our tax burdenand materially and adversely affect our cash flow and profitability.Pursuant to the Enterprise Income Tax Law and its implementation rules, dividends generated after January 1, 2008 and payable by a foreign-investedenterprise in China to its foreign investors, which are non-PRC tax resident enterprises without an establishment in China, or whose income has noconnection with their institutions and establishments inside China, are subject to withholding tax at a rate of 10%, unless any such foreign investor’sjurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. We are a Cayman Islands holding companyand we conduct our business through Autohome WFOE and Chezhiying WFOE. Autohome WFOE is 100% owned by Cheerbright, our wholly ownedsubsidiary located in the British Virgin Islands. The British Virgin Islands currently does not have any tax treaty with China with respect to withholding tax.As long as Cheerbright is considered a non-PRC resident enterprise and holds at least 25% of the equity interest of Autohome WFOE, dividends that itreceives from Autohome WFOE may be subject to withholding tax at a rate of 10%. Chezhiying WFOE is 100% owned by Autohome Link Hong KongLimited, our wholly owned subsidiary located in Hong Kong. Under the Arrangement between the PRC and the Hong Kong Special Administrative Regionon the Avoidance of Double Taxation and Prevention of Fiscal Evasion, effective on January 1, 2007, as long as Autohome Link Hong Kong Limited isconsidered a non-PRC resident enterprise and holds at least 25% of the equity interest of its PRC subsidiaries, dividends that it receives from its PRCsubsidiaries may be subject to withholding tax at a preferential rate of 5%, if it is the beneficial owner of the dividends, upon receiving the approval from thelocal tax authority. In August 2015, the State Administration of Taxation promulgated the Administrative Measures for Non-Resident Taxpayers to EnjoyTreatments under Tax Treaties, or SAT Circular 60, which became effective on November 1, 2015. SAT Circular 60 provides that non-resident enterprises arenot required to obtain pre-approval from the relevant tax authority in order to enjoy the reduced withholding tax rate. Instead, non-resident enterprises andtheir withholding agents may, by self-assessment and upon their confirmation that the prescribed criteria to enjoy the tax treaty benefits are met, directlyapply the reduced withholding tax rate, and file necessary forms and supporting documents when performing tax filings, which will be subject to post-filingexaminations by the relevant tax authorities. We have migrated our advertising business from our VIEs to the subsidiaries of Autohome Media. AutohomeMedia is 100% owned by Autohome HK, our wholly owned subsidiary located in Hong Kong. Under the Arrangement between the PRC and the Hong KongSpecial Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion, effective on January 1, 2007, as long as AutohomeHK is considered a non-PRC resident enterprise and holds at least 25% of the equity interest of its PRC subsidiaries, dividends that it receives from its PRCsubsidiaries may be subject to withholding tax at a preferential rate of 5%, if it is the beneficial owner of the dividends, upon receiving the approval from thelocal tax authority. 30Table of ContentsAs uncertainties remain regarding the interpretation and implementation of the Enterprise Income Tax Law and its implementation rules, we cannotassure you that if we are regarded as a PRC resident enterprise, any dividends to be distributed by us to our non-PRC shareholders and ADS holders would notbe subject to any PRC withholding tax at a rate of up to 10%. Similarly, any gain recognized by such non-PRC shareholders or ADS holders on the sale ofshares or ADSs, as applicable, may also be subject to PRC withholding tax. If we are required under the Enterprise Income Tax Law to withhold PRC incometax on our dividends payable to our non-PRC enterprise shareholders and ADS holders, or on gains recognized by such non-PRC shareholders or ADSholders, such investors’ investment in our Class A ordinary shares or ADSs may be materially and adversely affected.The enforcement of the PRC Labor Contract Law and other labor-related regulations in the PRC may adversely affect our business and our results ofoperations.The PRC Labor Contract Law became effective and was implemented on January 1, 2008 as amended on December 28, 2012 and effective as of July 1,2013. It has reinforced the protection of employees who, under the PRC Labor Contract Law, have the right, among others, to have written labor contracts, toenter into labor contracts with no fixed terms under certain circumstances, to receive overtime wages and to terminate or alter terms in labor contracts.According to the PRC Social Insurance Law, which became effective on July 1, 2011, and the Administrative Regulations on the Housing Funds, employeesare required to participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance, maternity insurance and housingfunds, and the employers must pay all or a portion of the social insurance premiums and housing funds for such employees.As a result of these laws and regulations designed to enhance labor protection, we expect our labor costs will increase. In addition, as the interpretationand implementation of these new laws and regulations are still evolving, our employment practice may not at all times be deemed in compliance with thenew laws and regulations. If we are subject to severe penalties or incur significant liabilities in connection with labor disputes or investigations, our businessand results of operations may be adversely affected.The Public Company Accounting Oversight Board is not permitted to inspect independent registered public accounting firms operating in China,including our auditor, and as such, investors may be deprived of the benefits of such inspection.Our independent registered public accounting firm, as an auditor of companies that are traded publicly in the United States and a firm registered withthe Public Company Accounting Oversight Board (United States), or PCAOB, is required by the laws of the United States to undergo regular inspections byPCAOB to assess its compliance with the laws of the United States and professional standards. Because our independent registered public accounting firm islocated in China, a jurisdiction where PCAOB is currently unable to conduct inspections without receiving the required approval from the PRC authorities,our independent registered public accounting firm, like other independent registered public accounting firms operating in China, is currently not inspectedby PCAOB. Inspections of other firms that PCAOB has conducted outside of China have identified deficiencies in those firms’ audit procedures and qualitycontrol procedures, which may be addressed as part of the inspection process to improve future audit quality. Since PCAOB cannot conduct inspections ofindependent registered public accounting firms operating in China without receiving the required approval from the PRC authorities, it is more difficult toevaluate the effectiveness of our independent registered public accounting firm’s audit or quality control procedures. As a result, investors may be deprivedof the benefits of PCAOB inspections.Proceedings instituted by the SEC against certain PRC-based accounting firms, including our independent registered public accounting firm, could resultin financial statements being determined to be not in compliance with the requirements of the Exchange Act.In December 2012, the SEC brought administrative proceedings against five accounting firms in China, including our independent registered publicaccounting firm, alleging that they had refused to produce audit work papers and other documents related to certain other China-based companies underinvestigation by the SEC. On January 22, 2014, an initial administrative law decision was issued, censuring these accounting firms and suspending four ofthese firms from practicing before the SEC for a period of six months. The decision is neither final nor legally effective unless and until reviewed andapproved by the SEC. On February 12, 2014, four of these PRC-based accounting firms appealed to the SEC against this decision. In February 2015, each ofthe four PRC-based accounting firms agreed to a censure and to pay a fine to the SEC to settle the dispute and avoid suspension of their ability to practicebefore the SEC. The firms’ ability to continue to serve all their respective clients is not affected by the settlement. The settlement requires the firms to followdetailed procedures to seek to provide the SEC with access to Chinese firms’ audit documents via the CSRC. If the firms do not follow these procedures, theSEC could impose penalties such as suspensions, or it could restart the administrative proceedings. The settlement did not require the firms to admit to anyviolation of law and preserves the firms’ legal defenses in the event the administrative proceeding is restarted. 31Table of ContentsIn the event that the SEC restarts the administrative proceedings, depending upon the final outcome, listed companies in the United States with majorPRC operations may find it difficult or impossible to retain auditors in respect of their operations in the PRC, which could result in financial statements beingdetermined to not be in compliance with the requirements of the Exchange Act, including possible delisting. Moreover, any negative news about theproceedings against these audit firms may cause investor uncertainty regarding China-based, United States-listed companies and the market price of ourADSs may be adversely affected.If our independent registered public accounting firm was denied, even temporarily, the ability to practice before the SEC and we were unable to timelyfind another registered public accounting firm to audit and issue an opinion on our financial statements, our financial statements could be determined not tobe in compliance with the requirements of the Exchange Act. Such a determination could ultimately lead to the delay or abandonment of this offering,delisting of our ordinary shares from the NYSE or deregistration from the SEC, or both, which would substantially reduce or effectively terminate the tradingof our ADSs in the United States.Risks Related to our ADSsThe market price for our ADSs has fluctuated and may be volatile.The daily closing trading prices for our ADSs ranged from US$28.42 to US$55.02 in 2015. The trading price for our ADSs may continue to fluctuate inresponse to factors including, without limitation, the following: • regulatory developments in our target markets affecting us, our advertisers or our competitors; • announcements of studies and reports relating to the quality of our services or those of our competitors; • changes in the economic performance or market valuations of other companies that provide online automotive advertising services; • actual or anticipated fluctuations in our quarterly results of operations and changes or revisions to our expected results; • changes in financial estimates by securities research analysts; • conditions in the online automotive advertising industry; • conditions in the online retail industry; • announcements by us or our competitors of new solutions, acquisitions, strategic relationships, joint ventures or capital commitments; • additions to or departures of our senior management; • fluctuations of exchange rates between the RMB and the U.S. dollar; • release or expiry of lock-up or other transfer restrictions on our outstanding Class A ordinary shares or ADSs; • sales or perceived potential sales of additional Class A ordinary shares or ADSs; and • pending or potential litigation or administrative investigation. 32Table of ContentsIn addition, the securities market has from time to time experienced significant price and volume fluctuations that are not related to the operatingperformance of any particular company. These market fluctuations may also have a material adverse effect on the market price of our ADSs.If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for our ADSsand trading volume could decline.The trading market for our ADSs will depend in part on the research and reports that securities or industry analysts publish about us or our business. Ifwe do not establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades our ADSs or publishes inaccurate orunfavorable research about our business, the market price for our ADSs would likely decline. If one or more of these analysts ceases coverage of our companyor fails to publish reports on us regularly, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume forour ADSs to decline.Because we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of our ADSs for return on your investment.We currently intend to retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business. As aresult, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our ADSs as a source of anyfuture dividend income.Subject to certain exceptions, our board of directors has complete discretion as to whether to distribute dividends. Even if our board of directorsdecides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on, among other things, our future results ofoperations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financialcondition, contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our ADSs willlikely depend entirely upon any future price appreciation of our ADSs. There is no guarantee that our ADSs will appreciate in value or even maintain theprice at which you purchased the ADSs. You may not realize a return on your investment in our ADSs and you may even lose your entire investment in ourADSs.Substantial future sales or perceived potential sales of our ADSs in the public market could cause the price of our ADSs to decline.Sales of our ADSs in the public market, or the perception that these sales could occur, could cause the market price of our ADSs to decline. All ADSssold in our equity offerings will be freely transferable without restriction or additional registration under the Securities Act. In addition, certain holders of ourordinary shares have the right to cause us to register under the Securities Act the sale of their shares. Registration of these shares under the Securities Actwould result in ADSs representing these shares becoming freely tradable without restriction under the Securities Act. Sales of these registered shares, in theform of ADSs, in the public market could cause the price of our ADSs to decline. Such sales also might make it more difficult for us to sell equity or equity-related securities in the future at a time and price that we deem appropriate. In addition, if we pay for our future acquisitions in whole or in part withadditionally issued ordinary shares, your ownership interests in our company would be diluted and this, in turn, could have a material and adverse effect onthe price of our ADSs.Our dual-class share structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of controltransactions that holders of our Class A ordinary shares and ADSs may view as beneficial.Our ordinary shares are divided into Class A ordinary shares and Class B ordinary shares. Holders of Class A and Class B ordinary shares have the samerights, including dividend rights, except for conversion and voting rights. Each Class B ordinary share may be converted into one Class A ordinary share byits holder at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares under any circumstances. Each Class A ordinary shareis entitled to one vote. When the total number of ordinary shares held by Telstra Holdings Pty Limited and/or its affiliates, or the Telstra Shareholder,constitutes no less than 51% of all of our issued and outstanding ordinary shares, each Class B ordinary share is entitled to one vote; when the total numberof ordinary shares held by the Telstra Shareholder, drops below 51% but is no less than 39.3% of all of our issued and outstanding ordinary shares, each ClassB ordinary share will carry such number of votes that would result in the total number of ordinary shares held by the Telstra Shareholder carrying, in theaggregate, 51% of the voting rights represented by all of our issued and outstanding ordinary shares; when the total number of ordinary shares held by theTelstra Shareholder drops below 39.3% of all of our issued and outstanding ordinary shares, all Class B ordinary shares will be automatically converted intothe same number of Class A ordinary shares. As of February 29, 2016, Telstra beneficially owned 61,824,328 Class B ordinary shares, representing 54.6% ofall of our issued and outstanding ordinary shares and 54.6% of our aggregate voting rights. This concentrated control will limit your ability to influencecorporate matters and could discourage others from pursuing any potential merger, takeover or other change of control transactions that holders of Class Aordinary shares and ADSs may view as beneficial. 33Table of ContentsYou may not have the same voting rights as the holders of our Class A ordinary shares and may not receive voting materials in time to be able to exerciseyour right to vote.Except as described in this annual report and in the deposit agreement, holders of our ADSs will not be able to exercise voting rights attaching to theClass A ordinary shares represented by our ADSs on an individual basis. Holders of our ADSs will appoint the depositary or its nominee as theirrepresentative to exercise the voting rights attaching to the Class A ordinary shares represented by the ADSs. Upon receipt of your voting instructions, thedepositary will vote the underlying ordinary shares in accordance with these instructions.Pursuant to our fourth amended and restated memorandum and articles of association, we may convene a shareholders’ meeting upon ten calendardays’ notice. If we give timely notice to the depositary under the terms of the deposit agreement (30 business days’ notice), the depositary will notify you ofthe upcoming vote and arrange to deliver our voting materials to you. We cannot assure you that you will receive the voting materials in time to instruct thedepositary to vote the Class A ordinary shares underlying your ADSs, and it is possible that you, or persons who hold their ADSs through brokers, dealers orother third parties, will not have the opportunity to exercise a right to vote. In addition, the depositary and its agents are not responsible for failing to carryout voting instructions or for the manner of carrying out voting instructions. This means that you may not be able to exercise your right to vote and there maybe nothing you can do if the Class A ordinary shares underlying your ADSs are not voted as you requested. In addition, although you may directly exerciseyour right to vote by withdrawing the Class A ordinary shares underlying your ADSs, you may not receive sufficient advance notice of an upcomingshareholders’ meeting to withdraw the Class A ordinary shares underlying your ADSs to allow you to vote with respect to any specific matter.Your right to participate in any future rights offerings may be limited, which may cause dilution to your holdings, and you may not receive cash dividendsif it is illegal or impractical to make them available to you.We may from time to time distribute rights to our shareholders, including rights to acquire our securities. However, we cannot make rights available toyou in the United States unless we register both the rights and the securities to which the rights relate under the Securities Act or an exemption from theregistration requirements is available. Under the deposit agreement, the depositary will not make rights available to you unless both the rights and theunderlying securities to be distributed to ADS holders are either registered under the Securities Act or exempt from registration under the Securities Act. Weare under no obligation to file a registration statement with respect to any such rights or securities or to endeavor to cause such a registration statement to bedeclared effective and we may not be able to establish a necessary exemption from registration under the Securities Act. Accordingly, you may be unable toparticipate in our rights offerings and may experience dilution in your holdings.The depositary of our ADSs has agreed to pay to you the cash dividends or other distributions it or the custodian receives on Class A ordinary shares orother deposited securities after deducting its fees and expenses. You will receive these distributions in proportion to the number of Class A ordinary sharesyour ADSs represent. However, the depositary is not responsible if it decides that it is inequitable or impractical to make a distribution available to anyholders of ADSs. For example, the depositary may determine that it is not feasible to distribute certain property through the mail. Additionally, the value ofcertain distributions may be less than the cost of mailing them. In those cases, the depositary may determine not to distribute such property. We have noobligation to register under U.S. securities laws any ADSs, ordinary shares, rights or other securities received through such distributions. We also have noobligation to take any other action to permit the distribution of ADSs, ordinary shares, rights or anything else to holders of ADSs. This means that you maynot receive the distribution we make on our Class A ordinary shares or any value for them if it is illegal or impractical for us to make them available to you.These restrictions may have a material adverse effect on the value of your ADSs. 34Table of ContentsYou may be subject to limitations on the transfer of your ADSs.Your ADSs are transferable on the books of the depositary. However, the depositary may close its transfer books at any time or from time to time whenit deems expedient in connection with the performance of its duties. In addition, the depositary may refuse to deliver, transfer or register transfers of ADSsgenerally when our books or the books of the depositary are closed, or at any time if we or the depositary deems it advisable to do so because of anyrequirement of law or of any government or governmental body, or under any provision of the deposit agreement, or for any other reason in accordance withthe terms of the deposit agreement.You may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts may be limited because we areincorporated under Cayman Islands law, we conduct substantially all of our operations in China and substantially all of our directors and officers resideoutside the United States.We are incorporated in the Cayman Islands and conduct substantially all of our operations in China through our PRC subsidiaries and VIEs. Most ofour directors and officers reside outside the United States and a substantial portion of the assets of such directors and officers are located outside of the UnitedStates. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in the Cayman Islands or in China in theevent that you believe that your rights have been infringed under the securities laws or otherwise. Even if you are successful in bringing an action of thiskind, the laws of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.There is no statutory recognition in the Cayman Islands of judgments obtained in the United States, although the courts of the Cayman Islands will generallyrecognize and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits.Our corporate affairs are governed by our memorandum and articles of association, as amended and restated from time to time, and by the CompaniesLaw and common law of the Cayman Islands. The rights of shareholders to take legal action against us and our directors, actions by minority shareholdersand the fiduciary responsibilities of our directors are to a large extent governed by the common law of the Cayman Islands. The common law of the CaymanIslands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from English common law, which providespersuasive, but not binding, authority. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not asclearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman Islands has a less developed body ofsecurities laws than the United States and provides significantly less protection to investors. In addition, Cayman Islands companies may not have standingto initiate a shareholder derivative action in U.S. federal courts.As a result, our public shareholders may have more difficulty in protecting their interests through actions against us, our management, our directors orour major shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.Our memorandum and articles of association contain anti-takeover provisions that could adversely affect the rights of holders of our Class A ordinaryshares and ADSs.Our fourth amended and restated memorandum and articles of association contain certain provisions that could limit the ability of others to acquirecontrol of our company, including a provision that grants authority to our board of directors to establish from time to time one or more series of preferredshares without action by our shareholders and to determine, with respect to any series of preferred shares, the terms and rights of that series. Preferred sharescould be issued quickly with terms calculated to delay or prevent a change in control of our company or make removal of management more difficult. If ourboard of directors decides to issue preferred shares, the price of our ADSs may fall and the voting and other rights of the holders of our Class A ordinary sharesand ADSs may be materially adversely affected. These provisions could have the effect of depriving our shareholders of the opportunity to sell their shares ata premium over the prevailing market price by discouraging third parties from seeking to obtain control of our company in a tender offer or similartransaction. 35Table of ContentsWe are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable toU.S. domestic public companies.Because we qualify as a foreign private issuer under the Securities Exchange Act of 1934, as amended, or the Exchange Act, we are exempt from certainprovisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including: • the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K; • the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under theExchange Act; • the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiderswho profit from trades made in a short period of time; and • the selective disclosure rules by issuers of material nonpublic information under Regulation FD.We are required to file an annual report on Form 20-F within four months of the end of each fiscal year. We intend to publish our results on a quarterlybasis as press releases, distributed pursuant to the rules and regulations of the NYSE. Press releases relating to financial results and material events will also befurnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less frequentcompared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information, whichwould be made available to you, were you investing in a United States domestic issuer.We may be classified as a passive foreign investment company for United States federal income tax purposes, which could subject United States investorsin the ADSs or Class A ordinary shares to significant adverse tax consequences.Under United States federal income tax law, we will be classified as a passive foreign investment company (“PFIC”) for any taxable year if either (i) atleast 75% of our gross income for the taxable year is passive income or (ii) at least 50% of the value of our assets (based on the average quarterly value of ourassets during the taxable year) is attributable to assets that produce or are held for the production of passive income (the “asset test”). Although the law in thisregard is not entirely clear, we treat our VIEs as being owned by us for United States federal income tax purposes because we control their managementdecisions and are entitled to substantially all of the economic benefits associated with such entities, and, as a result, we consolidate their results of operationsin our consolidated U.S. GAAP financial statements. Assuming we are the owner of our VIEs for U.S. federal income tax purposes and based on our currentincome and assets, including goodwill and unbooked intangibles, we do not believe that we were a PFIC for the taxable year ended December 31, 2015 anddo not anticipate becoming a PFIC in future taxable years.While we do not believe that we were a PFIC for the taxable year ended December 31, 2015 and do not anticipate becoming a PFIC in the foreseeablefuture, no assurance can be given in this regard because the determination of whether we will be or become a PFIC is a fact-intensive inquiry made on anannual basis that depends, in part, on the composition of our income and assets. Fluctuations in the market price of our ADSs may cause us to become a PFICfor the current or subsequent taxable years because the value of assets for the purpose of the asset test may be determined by reference to the market price ofour ADSs from time to time (which may be volatile). The composition of our income and assets may also be affected by how, and how quickly, we use ourliquid assets. Under circumstances where our revenue from activities that produce passive income significantly increase relative to our revenue from activitiesthat produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk of becoming classified as aPFIC may substantially increase. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the Internal RevenueService may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible assets, each of which mayresult in our becoming a PFIC for the current or subsequent taxable years. 36Table of ContentsIf we were to be or become a PFIC, a U.S. Holder (as defined in “Item 10. Additional Information—E. Taxation—United States Federal Income TaxConsiderations—General”) may incur significantly increased United States income tax on gains recognized on the sale or other disposition of the ADSs orClass A ordinary shares and on the receipt of distributions on the ADSs or Class A ordinary shares to the extent such gain or distribution is treated as an“excess distribution” under United States federal income tax rules. Further, if we were a PFIC for any year during which a U.S. Holder held our ADSs orClass A ordinary shares, we generally would continue to be treated as a PFIC as to such U.S. Holder for all succeeding years during which such U.S. Holderheld our ADSs or Class A ordinary shares. Alternatively, U.S. Holders of PFIC shares can sometimes avoid the rules described above by making certainelections, including a “mark-to-market” election or electing to treat a PFIC as a “qualified electing fund.” However, U.S. Holders will not be able to make anelection to treat us as a “qualified electing fund” because, even if we were to be or become a PFIC, we do not intend to comply with the requirementsnecessary to permit U.S. Holders to make such election. Each U.S. Holder is urged to consult its tax advisor concerning the United States federal income taxconsequences of owning and disposing of ADSs or Class A ordinary shares if we are or become a PFIC. For more information, see “Item 10. AdditionalInformation—E. Taxation—United States Federal Income Tax Considerations—Passive Foreign Investment Company Rules.”We incur increased costs as a result of being a public company.We are a public company and expect to incur significant accounting, legal and other expenses that we did not incur as a private company. TheSarbanes-Oxley Act, including Section 404 therein relating to internal control over financial reporting, as well as rules subsequently implemented by theSEC and the NYSE, have detailed requirements concerning corporate governance practices of public companies. We expect these rules and regulationsapplicable to public companies to increase our accounting, legal and financial compliance costs and to make certain corporate activities more time-consuming and costly. Our management is required to devote substantial time and attention to our public company reporting obligations and othercompliance matters. We evaluate and monitor developments with respect to these rules and regulations, and we cannot predict or estimate the amount ofadditional costs we may incur or the timing of such costs. Our reporting and other compliance obligations as a public company may place a significant strainon our management, operational and financial resources and systems for the foreseeable future.In the past, shareholders of a public company often brought securities class action suits against the company following periods of instability in themarket price of that company’s securities. If we were involved in a class action suit, it could divert a significant amount of our management’s attention andother resources from our business and operations, which could harm our results of operations and require us to incur significant expenses to defend the suit.Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim issuccessfully made against us, we may be required to pay significant damages, which could have a material adverse effect on our financial condition andresults of operations.ITEM 4. INFORMATION ON THE COMPANY A.History and Development of the CompanyAutohome Inc. was incorporated under the laws of the Cayman Islands under its former name, Sequel Limited, in June 2008 and adopted its currentname in October 2011. Shortly after its inception, in June 2008, Autohome acquired all of the equity interests of the following entities: • Cheerbright International Holdings Limited, or Cheerbright, a British Virgin Islands company that operates autohome.com.cn, which waslaunched in 2005; • Norstar Advertising Media Holdings Limited, or Norstar, a Cayman Islands Company that, among other businesses, operated che168.com, whichwas launched in 2004; and • China Topside Limited, or China Topside, a British Virgin Islands company.Our largest shareholder is Telstra Holdings, a wholly owned subsidiary of Telstra Corporation Limited, the leading diversified telecommunicationscompany in Australia and a Fortune Global 500 company. 37Table of ContentsTo sharpen our business focus on the automotive industry, we completed a corporate reorganization in 2011 by spinning off our then subsidiaries thatwere not involved in our core business. In March 2011, we completed the transfer of the che168.com business from Norstar to Cheerbright. In June 2011, inconnection with our strategy to focus on serving the automotive industry in China, we contributed our entire equity interests in Norstar and China Topside,which serve the information technology industry, to Sequel Media, our subsidiary in the Cayman Islands. We then immediately distributed shares of SequelMedia to our shareholders. Since the spin-off, we have focused on serving the automotive industry in China through our autohome.com.cn and che168.comwebsites.On March 16, 2012, we established a new wholly owned subsidiary, Autohome HK, in Hong Kong. Autohome HK has no material business operationas of the date of this annual report.In October 2013, Autohome HK acquired Prbrownies Marketing Limited, a Hong Kong advertising and marketing company, which we renamedAutohome Media Limited, or Autohome Media, in March 2014. Autohome Media has engaged in the advertising business outside the PRC for more thanthree years, and is therefore qualified to directly invest in a PRC company providing advertising services in accordance with PRC law. Autohome Media hasestablished subsidiaries in Beijing, Shanghai, Guangzhou and Tianjin. We have migrated our advertising business from Guangzhou Advertising, ShanghaiAdvertising, Beijing Shengtuo Autohome Advertising Co., Ltd., or Autohome Advertising, Beijing Shengtuo Chengshi Advertising Co., Ltd., or ChengshiAdvertising, to the subsidiaries of Autohome Media in 2015.In December 2013, we completed our initial public offering of 8,993,000 ADSs, representing 8,993,000 Class A ordinary shares, and our ADSs werelisted on the NYSE under the symbol “ATHM.”In November 2014, we completed a public offering, or the 2014 Offering, in which we offered and sold 2,424,801 ADSs, and our selling shareholderssold 7,220,858 ADSs, representing 2,424,801 Class A ordinary shares and 7,220,858 Class A ordinary shares, respectively.In January 2015, we established Beijing Autohome Used Car Appraisal Co., Ltd. in Beijing to conduct used car appraisal business. In May 2015, weestablished a new wholly owned subsidiary, Beijing Chezhiying Technology Co., Ltd., in Beijing, China. In June 2015, we established Beijing AutohomeUsed Car Brokerage Co., Ltd. in Beijing, China to conduct used car brokerage business. In December 2015, we established a new wholly owned subsidiary,Beijing Chezhiying Software Co., Ltd. in Beijing, China.In February 2015, we established Autohome E-commerce Hong Kong Limited and Autohome Link Hong Kong Limited in Hong Kong and in April2015, we established Autohome Financing Hong Kong Limited in Hong Kong. These three subsidiaries have no business operation as of the date of thisannual report.In June 2015, we established a strategic joint venture with HappiGo Home Shopping Co, a leading TV shopping business in China, to build a full-service auto sales platform. We invested RMB49 million into the joint venture, accounting for 49% of the shareholding.In July 2015, Autohome Information, Shengtuo Hongyuan and Autohome WFOE entered into a termination agreement, pursuant to which the partiesterminated the contractual agreements among themselves and Autohome Information transferred all of its equity interest in Shengtuo Hongyuan to James ZhiQin and Zheng Fan. In July 2015, Chezhiying WFOE, Shengtuo Hongyuan and each of its subsidiaries, and James Zhi Qin and Zheng Fan entered intocontractual agreements.In September 2015, we established a joint venture, the Financing JV, with Beijing Chehejia Information Technology Co., Ltd and two companiesunaffiliated with us. Xiang Li, our director, is the founder of Beijing Chehejia Information Technology Co., Ltd. We invested a full payment of RMB75million into the Financing JV for a 25% equity interest of the Financing JV. The Financing JV is expected to provide auto financing to car buyers andfacilitate the transaction process.Our principal executive offices are located at 10th Floor Tower B, CEC Plaza, 3 Dan Ling Street, Haidian District, Beijing 100080, the People’sRepublic of China. Our telephone number at this address is +86 (10) 5985 7001. Our registered office in the Cayman Islands is located at the office of CodanTrust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Our agent for service ofprocess in the United States is Law Debenture Corporate Services Inc., 400 Madison Avenue, 4th Floor, New York, New York 10017. 38Table of ContentsSee “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures” for a discussion of ourcapital expenditures and divestitures. B.Business OverviewOverviewWe are the leading online destination for automobile consumers in China. Through our two websites, autohome.com.cn and che168.com, and ourmobile applications, we deliver comprehensive, independent and interactive content to automobile buyers and owners. The number of our average dailyunique users who access our websites via mobile devices and the number of average daily unique users of our mobile applications amounted toapproximately 7.7 million and 6.1 million, respectively, in December 2015. We have developed a strong and well-recognized brand. Our (“Autohome”) brand has been the most searched automotive-related keyword during substantially the entire period since July 2011 on Baidu.com, theleading Chinese language internet search engine.Our ability to reach a large and engaged user base of automobile consumers has made us a preferred platform for automakers and automobile dealers toconduct their advertising campaigns. We generate a majority of our revenues from online advertising services and dealer subscription services. We have ahigh penetration rate in the automaker market, with 75, 85 and 87 automakers operating in China having advertised on our websites in each of 2013, 2014and 2015, respectively. In addition, a large and rapidly growing number of dealers are purchasing our advertising services and subscription services, throughwhich they showcase and market their inventories on our websites.We believe our focus on user experience, innovation and high-quality content distinguishes us from our competitors and is the foundation for ourlong-term success.Our professionally produced and user generated content, comprehensive automobile library and extensive automobile listing information haveattracted a large and engaged user base. This, in turn, represents a highly relevant audience that is receptive to automotive advertising. We believe that thisuser base, together with our nationwide advertising platform, targeted advertising solutions and value-added services, has led to our rapid growth and has laidthe foundation for our continuing success in our core advertising and dealer subscription business.We develop our business model and technology platforms to provide services for the complete consumer automobile ownership life cycle. We havebuilt an online automotive media and transaction platform that captures critical stages of the sales funnel, starting from product awareness, to purchase desireinitiation and sales leads generation. We further developed our transaction business which include direct vehicle sales and commission-based servicesfacilitating transactions through our transaction platform. For instance, in June 2014 we launched Autohome Mall, an online transaction platform that webelieve will allow us to be a transaction service provider as we develop our transaction business.We have experienced significant revenue growth while maintaining profitability. Our net revenues increased from RMB1,216.5 million in 2013 toRMB2,132.9 million in 2014 and RMB3,464.0 million (US$534.7 million) in 2015, representing a CAGR of 68.7%. Our net income increased fromRMB456.2 million in 2013 to RMB748.7 million in 2014 and RMB990.6 million (US$152.9 million) in 2015, representing a CAGR of 47.4%.Our Business Model and Technology PlatformsWe are the leading online destination for automobile consumers in China. Over the past several years, we have developed the largest and most activeonline community of automobile consumers in China. We serve three distinct groups: our large and engaged user base of our websites and mobileapplications, automobile consumers on our transaction platform and customers for our advertising business and subscription business that includeautomakers, dealers and other auto-related products and service providers. Our business model and technology platforms seek to effectively link each stage ofour users’ automobile ownership life cycle with the corresponding stage of our customers’ sales cycle. 39Table of ContentsWe have built an online automotive media and transaction platform that capture critical stages of the sales funnel, starting from product awareness, topurchase desire initiation and to sales leads generation. We are further developing our business model to also include the generation of actual sales. Toinitiate product awareness and purchase desire, we utilize our comprehensive, independent and interactive content through our websites that are accessiblethrough PCs and mobile devices and on our mobile applications to create strong user traffic and user engagement and stickiness. As our user traffic grows, wefocus on generating sales leads through engaging our users with our promotional activities, including our dealer yellow page business which consists ofdealer advertising services and dealer subscription services. We also launched several promotional initiatives such as “Group Buy” initiative to leverage ourbroad user base in our online social community and convert them into higher quality leads for our dealers. Finally we provide a transaction platform forautomobile buyers to purchase new vehicles directly from the automakers or used vehicles from sellers on our platform. In June 2014, we launched AutohomeMall, an online transaction platform. Autohome Mall is a one-stop platform for users to review automotive-related information, purchase coupons offered byautomakers or dealers for discounts and make purchases to complete the transaction. We developed a used automobile listing platform underlying ourdedicated used car website che168.com, which targets the automobile replacement stage by allowing both used automobile dealers and individuals to listtheir used automobiles on our websites. We have completed or facilitated successful new and used vehicle transactions on our platform through various salesinitiatives and other promotional campaigns. In 2014 and 2015, we conducted several online marketing events on Autohome Mall or offline promotioncampaigns with our partners, such as the “Group Buy” initiative, “Singles’ Day” and “Double 12” campaigns which generated quality sales leads for ourdealer customers or our transaction business. In addition, we have been leveraging our comprehensive platform to capture additional revenue opportunities inconnection with the remaining stages of the automobile ownership life cycle.Our Services for Automobile ConsumersOur service offerings for users mainly include our high performance websites and mobile applications, our professional and user generated content andour interactive online community.Our WebsitesOur user-centric approach has successfully attracted the largest user base of automobile consumers in China to our websites. According to the iResearchPublic Data, autohome.com.cn had an average of 8.0 million unique visitors per day in 2015, more than any of our competitors and also maintained amoderate growth rate of 7% compared with 2014. On average, our users spent approximately 16.5 minutes per day on autohome.com.cn, approximately 2.5times that of our closest competitor. Our users are significantly more affluent, well-educated and active than the general internet users in China. The averagemonthly personal income of our users was RMB9,313 according to a survey conducted by a third-party research firm in October 2015, or the User Survey,which is higher than the average monthly personal income of general internet users according to the 37th survey report issued by CNNIC in January 2016.Approximately 86% of our users held post-secondary degrees and above, according to the User Survey, compared to 20% for the general internet users inChina, according to the 37th survey report issued by the CNNIC in January 2016. The average age of our users was 30 and almost were male, according to theUser Survey. Our autohome.com.cn website targets a wide spectrum of automobile consumers with a focus on new automobiles. To capitalize on the growingused automobile market in China, we redesigned our che168.com website, which in the past had features and user base similar to our autohome.com.cnwebsite, to focus on used automobiles. The re-designed che168.com website was launched in October 2011. We have started to conduct our used car businessvia our che168.com, such as our jiajiahaoche platform.Most of the content on our websites is tagged by vehicle models to facilitate easy user access. We have developed and are continuing to improve ouruser intelligence engine to analyze user browsing behavior and prioritize content that the user is likely to find relevant and interesting. A user who searchesfor or navigates to a page for a specific vehicle model will be provided with links to relevant content such as vehicle specifications, photos and video clips,reviews, competing vehicle models, and listing and promotional information from local dealers. Users can easily compare competing vehicle models andbrands for price and specifications to make informed purchase decisions. In addition, these user behavior data are summarized and analyzed on a regular basisto improve user experience and provide consumer intelligence to our advertisers. 40Table of ContentsTo provide a superior experience to our users, we label sponsored content clearly to maintain objectivity. We do not allow our advertisers to have anyinfluence over our content rankings, such as our “Most-Viewed Models,” which are generated solely from data relating to the number of times users navigateto the relevant pages. We do not use distracting pop-up advertisements which may adversely affect user experience.Our Mobile Website and ApplicationsOur content can be accessed on our websites through PCs and mobile devices and on our mobile applications. We have made significant efforts inrecent years to optimize the mobile version of our websites to display our content and develop new mobile applications to capture a greater number of usersthat access our services through mobile devices. For example, the numbers of average daily unique users who access our websites via mobile devicesamounted to 7.7 million in December 2015. We were among the earliest in our industry in China to introduce both iOS- and Android-based applications toallow users to easily access our content. As of December 31, 2015, we had nine iOS-based applications and eight Android-based applications. Our mobileapplications have generated significant user interest. In 2015, our iOS- and Android-based applications were downloaded approximately 84.2 million times,and the number of average daily unique users of our mobile applications amounted to approximately 6.1 million in December 2015. The combined numberof average daily unique visitors for our mobile websites and mobile applications in December 2015 grew about 79% year-over-year. Users can convenientlyenjoy features available on our websites from their mobile devices, such as reading articles, checking vehicle prices and model parameters, viewing pictures,and participating in forum discussions. In addition, through our location-based services, our users are able to obtain vehicle pricing information directly fromtheir nearby dealers in approximately 330 cities in China.Our ContentThe foundation of our websites and mobile applications is a large amount of professionally produced content, a comprehensive automobile library andextensive automobile listing and promotional information organized around our automotive information database. In addition, our automotive informationdatabase includes a significant amount of user generated content originating from our user forums.Professionally produced contentOur professionally produced content is created by our dedicated editorial team and includes automobile-related articles and reviews, pricing trends invarious local markets, and photos and video clips. This content covers topics throughout the automobile ownership life cycle, from automobile research,selection and purchase to ownership and maintenance and to eventual replacement. Our review writers obtain first-hand experiences by test-driving manynewly released vehicle models provided by various automakers. Our editorial team at our Beijing headquarters and sales offices located in 78 citiesthroughout China work closely with automakers, dealers and other industry participants to create automobile related articles. Although automakers mayprovide us with sample vehicles to test drive, we review all new automobiles independently, based upon our teams’ experience and from our users’perspective.We follow well-developed guidelines in creating and publishing professional content with attention to details, such as the angles of photos, imagesizes and the time between industry events and the relevant article publication. These practices enable us to streamline our editorial process and quickly andefficiently make national and local content available to our users, while ensuring that we maintain high quality standards and a consistent user experience.Automobile libraryWe have one of the most comprehensive automobile libraries within our industry in China with over 22,400 vehicle model configurations andapproximately 3.2 million photos as of December 31, 2015. We believe our automobile library covers all passenger vehicle models released in China since2005. It includes a broad range of specifications covering performance levels, dimensions, powertrains, vehicle bodies, interiors, safety, entertainmentsystems and other unique features, as well as automakers’ suggested retail prices. The scale of content in our automobile library, which we believe wouldrequire significant time, expertise and expense to replicate, makes it a valuable tool for our users in researching both new and used automobiles. 41Table of ContentsAutomobile listingsOur database also includes a large amount of new and used automobile listings and promotional information. With the comprehensive andcontinuously updated listing information, users can conveniently search for up-to-date information of vehicle models without having to visit each individualdealer at their local showrooms.User forums and user generated contentOur platform hosts an open and vibrant community of automobile consumers, from first-time buyers to sophisticated automobile enthusiasts. Our usercommunity centers around our discussion forums, which are organized based on vehicle models, cities and regions, and provides users an easy and intuitiveway to access various topics of interest. Registered users utilize our discussion forums to share a wide range of automotive experiences such as drivingexperiences and usage and maintenance tips. Users also frequently provide reviews of automobiles or automotive products and services, post questions andreceive answers from fellow forum members. We continued to enhance user engagement and participation in the content generation and delivery process. Forexample, we expanded our user review platform by allowing users to add or modify their views and insights on a continuous basis.We strive to ensure the credibility, appeal and usefulness of our forums by identifying verified automobile owners and empowering selected registeredusers as forum moderators. Our verified automobile owners are registered users whose vehicle ownership has been confirmed through various channels. Ourforum moderators are generally active registered users with significant forum post counts whom we have identified as being reputable automobile enthusiastswithin our online community.Our registered users increased by more than 7.2 million in 2015 with 152.0 million additional pieces of user generated content added to our userforums during 2015. As of December 31, 2015, we had over 19.6 million registered users and 749.0 million cumulative posts in our user forums. As our userbase has grown and our user engagement and forum activity has increased, our database of user generated content has expanded, which in turn has attractedmore users. Furthermore, this feedback effect on our growing user base has also enhanced the effectiveness of our advertisements and therefore the value ofour advertising services, allowing us to attract more advertisers and increase revenues from existing advertisers.Our Advertising Services for Automakers and Automobile DealersLeveraging our large and rapidly growing user base and utilizing the user intelligence data we have collected, we provide our advertisers with a broadrange of advertising solutions and tools. Our advertisers are comprised primarily of automakers and new automobile dealers. As millions of consumers visitour websites for automotive information, we have become an increasingly important medium for automakers and automobile dealers to conduct theiradvertising campaigns.Automakers typically utilize our advertising services for brand promotion, new model releases and sales promotions. We believe we are well-positioned to provide solutions to meet all of these needs. Our large and growing automobile purchase- and ownership-oriented user base provides a broadreach for automakers’ marketing messages. Our automotive content delivery and advertisement management platform allows us to segment our user base in anumber of different dimensions, including by users’ geographical location and specific automotive interests, and enables us to place advertisements withtargeted audiences likely to be receptive to particular advertising messages.Leveraging our large user base and extensive forum posting data, we provide automakers with more reliable and timely business insights thantraditional customer surveys or other post-sales feedback channels. For instance, we analyze user posts in our forums to evaluate consumer response. Inaddition, we organize various types of offline national or local events for our automaker and dealer customers through our online marketing campaigns anduser forum activities to complement our advertising services and dealer subscription services. For example, we help automakers increase their brandawareness and execute sales promotions by organizing large-scale test driving activities for specific vehicle models in multiple cities across China. Users canconveniently participate and interact with automaker representatives through our forums. 42Table of ContentsOur Dealer Subscription ServicesOur dealer subscription services allow dealers to market their inventory and services through our websites, extending the reach of their physicalshowrooms to potentially millions of internet users in China and generating sales leads for them. Our dealer subscription services are delivered through ourdealership information system on a fixed-fee basis, typically for a period of one year. Through the web-based interface of our dealership information system,dealers can create online showrooms hosted on our websites and upload and manage their automobile inventories, pricing and promotional information.Potential automobile purchasers can interact with our dealer subscribers online or through toll free numbers provided by us to inquire for more detailedinformation and schedule test drives. Our dealer subscribers can track all the interactions with their customers originating from our websites, analyze thenumber of sales leads and assess the effectiveness of their marketing activities.We provide automobile consumers trend analysis services for our automaker and dealer customers that helps them analyze data in specific geographicmarkets such as consumer purchasing behavior characteristics and their brand strength in comparison to that of their competitors. We believe the consumerintelligence gathered from our large user base reflects the current automotive market trends in China and provides excellent market insight to our automakerand dealer customers. We continue to develop our dealer subscription services and plan to implement additional services in the future, which we believe willallow us to reach additional dealers by enabling us to offer basic and premium subscriptions at different price levels.We also offer some basic functions of our dealer subscription services to automobile dealers for free. Registered dealers can create their onlineshowrooms and upload inventory and pricing information on our websites. However, their listings have lower priority than those of our dealer subscriberswhen being displayed in response to users’ inquiries and do not have the user interaction features. We believe that these free services allow more dealers tounderstand and appreciate the benefits our subscription services may bring to them, which helps us convert them into dealer subscribers.Our Transaction BusinessE-commerce platform for new vehiclesIn June 2014, we launched Autohome Mall, an online transaction platform. Autohome Mall is a one-stop platform for users to review automotive-related information, purchase coupons offered by automakers or dealers for discounts and make purchases to complete the transaction. In 2015, we began toprovide direct vehicle sales and commission-based services facilitating transactions through our transaction platform. We have completed new vehicletransactions on our platform through various sales initiatives and other promotional campaigns. In 2014 and 2015, we conducted several online marketingevents on Autohome Mall and offline promotion campaigns with our partners for our transaction business. We also partnered with automakers to sellcustomized or exclusive models of selected vehicles on our platform.Used automobile listing & transactions servicesWe launched our used automobile listing platform in late 2009. Our used automobile listings services allow used dealers and individuals to markettheir automobiles for sale on our websites. Our used automobile listing database has been expanding rapidly. We had approximately 4.3 million usedautomobile listings in our database as of December 31, 2015.In an effort to capitalize on the used automobile market as it matures, in October 2011, we redesigned our che168.com website as a platform dedicatedto used automobiles. The redesigned website features content, listings and interactive functionality similar to our autohome.com.cn website, but focusesprimarily on used automobiles. We also developed a mobile application for our used automobile services. Since 2014, we continued to develop and enhanceour used automobile sales platform and began to provide advertising services, dealer subscription services and C2C transactions in selected cities.The used automobile market still remains at a nascent stage of development and the revenue generated from our used automobile listing andtransaction services was not significant for the year ended December 31, 2015. 43Table of ContentsOur Advertisers and Dealer SubscribersThe vast majority of our current end-customers for our advertising business and subscription business are automakers or new dealers. In each of 2013,2014 and 2015, 75, 85 and 87 automakers in China, which includes independent Chinese automakers, joint ventures between Chinese and internationalautomakers and international automakers that sell their cars made outside of China, purchased online advertisements from us. Our top five advertisers, all ofwhom were automakers, contributed 15.0%, 9.8% and 11.1% of our total net revenues in 2013, 2014 and 2015, respectively. No single automakercontributed more than 10% of our net revenues in 2013, 2014 and 2015. In addition, a large number of dealers utilize our online advertising services toimprove their brand awareness, promote their inventories and generate sales leads. We also offer dealer subscription services to enable dealers to establish andmaintain online showrooms of automobiles with pricing and promotional information on autohome.com.cn.As is customary in China, we sell our advertising services and solutions primarily through third-party advertising agencies that represent theautomakers and automobile dealers. Our top ten advertising agencies accounted for 44.0%, 38.7% and 39.2% of our total net revenues in 2013, 2014 and2015, respectively. In 2013, 2014 and 2015, our largest agency accounted for 6.7%, 5.9% and 6.9% of our total net revenues, respectively. We typically enterinto individual advertising agreements with the third-party advertising agencies. Depending on the type of advertiser and content, the duration of anadvertising agreement ranges from one to twelve months, with the majority being one to three months. We typically require payment be made within 90 daysafter the delivery of our services, but for contracts that last for three months or longer, installment payments are typically required. Our agreements withcertain major advertising agencies contain a “most-favored price term” provision, through which we undertake to provide the advertising agencies with thebest price we give to any other agencies or advertisers.Although we sell our advertising services and solutions to third-party advertising agencies, we consider the automakers and automobile dealers, whoare the main decision makers as to whether to place advertisements on our websites, to be our end-customers. As a result, our sales efforts focus primarily onautomakers and automobile dealers. However, through direct contact between our sales team, advertisers and advertising agencies, we are able to maintaingood relationships with existing advertisers and their advertising agencies, which in turn may identify and refer new advertisers to us. See “—Our AdvertisingServices for Automakers and Automobile Dealers.”Technology and Product DevelopmentOur technologies and infrastructure are critical to our success. We follow a user-centric strategy for our system architecture and have developed robustand scalable technology platforms with sufficient flexibility to support our rapid growth.A key component of our user-centric strategy is our user intelligence engine which we have developed and are continually enhancing. Our userintelligence engine allows us to rapidly gather user intelligence by analyzing large amounts of data from many sources throughout our content productionsystem. We can utilize such user intelligence data to personalize user interfaces, associate and understand the relationship of information from differentsources and facilitate interactions among users and various elements on our websites. It also helps us recommend suitable products, services and userconnections to our users. Through our user intelligence engine, we can engage our users more closely by providing them with relevant content. We are alsoable to provide precision marketing services to our automakers, dealers and other automotive-related customers so that they can deliver relevantadvertisements to targeted users who are more receptive to such marketing information.We distribute our web content to numerous network nodes close to our users by utilizing the content delivery networks, allowing most of our usercommunications to bypass internet congestion. With our technological expertise, we manage the content delivery networks to enhance our websiteresponsiveness and improve user experience. As such, we believe our websites have a performance advantage over other automotive websites.We invested heavily in mobile technologies and were among the earliest in our industry in China to introduce a mobile version of our websites andboth Apple iOS- and Android-based applications to allow our users to easily access our content. We have built up a team of 179 research and developmentpersonnel as of December 31, 2015, to focus exclusively on the development of our mobile websites and applications and to explore new business modelsand opportunities through mobile technology. We plan to continue to leverage our mobile technology to develop more applications for Apple iOS andAndroid platforms focusing on convenience, real-time interaction and location based services. 44Table of ContentsWe had an experienced product development team of 787 engineers as of December 31, 2015. Our past innovation has focused on helping usersresearch, select and purchase suitable vehicles through our websites. We plan to develop additional products and services for our transaction business, mobileapplications and media-related technology.Sales and MarketingOur nationwide in-house team of sales representatives sells our services to advertisers. As of December 31, 2015, we had 2,044 sales and marketingrepresentatives operating our physical sales office network spanning 79 cities across China and visiting customers in an additional 123 satellite cities, asignificant increase from December 31, 2009, when we had physical sales offices in 17 cities. We have a prudent expansion plan and we typically only opennew physical sales offices in a city after we have already established a sufficient customer base in the area. In cities where we do not yet have a customer base,we provide sales coverage by telephone. Our Beijing-based telephone sales team provided sales coverage to the cities in which we did not have physicalsales offices. Our sales team also provides ongoing customer support to advertisers and dealer subscribers. In the past years, we have successfully expandedour market presence in the first- and second-tier cities in China. We plan to continue to expand our sales and marketing efforts into third- and fourth-tier citiesto further capture the opportunities for automobile sales growth in those markets. In 2015, we also established a dedicated sales and marketing team focusingon developing our transaction business.Our sales team is equipped with specialized automotive industry knowledge and expertise, understands our customers’ needs and is trained to helpthem develop their advertising strategies. Salespeople work directly with our advertisers and advertising agencies that represent advertisers. Our sales teamalso maintains close relationships with our dealer customers by, among other things, providing continuing training, support and ongoing customer service forour dealer subscriptions services. Our sales team for transaction business is in charge of customer services and maintains our relationships with automakers,our dealership partners which perform order fulfillments for vehicles sold on our platform, our in-house valuers of used vehicles and business developmentpersonnel.Compensation for our salespeople includes a base salary and incentives based on the sales revenues they generate. We provide regular in-house andexternal education and training to our salespeople to help them provide current and prospective customers with information on, and the advantages of using,our services. We believe that our performance-linked compensation structure and career-oriented training help to retain and motivate our salespeople.We believe brand recognition is important to our ability to attract users. We focus our sales and marketing efforts through search engines, navigationwebsites and mobile platforms to retain and strengthen our leading position in terms of user reach. For example, we cooperate with application stores andmobile browsers to promote our mobile applications and our websites. In July 2014, we entered into an arrangement with Baidu for a period of 12 months toprovide automotive-related information, such as model descriptions, pricing information and other useful data for potential vehicle buyers, to enhance theuser experience of automotive-related searches on PCs using “Aladdin,” Baidu’s open platform initiative. And we continued our cooperation with Baidu asan exclusive supplier for automotive-related content on PCs powered by “Aladdin” for a six-month period that started from August 25, 2015. We alsoconduct promotional campaigns on navigation websites from time to time.Intellectual PropertyOur intellectual property includes trademarks and trademark applications related to our brands and services, software copyrights, trade secrets and otherintellectual property rights and licenses. We seek to protect our intellectual property assets and brands through a combination of trademark, patent, copyrightand trade secret protection laws in the PRC and other jurisdictions, as well as through confidentiality agreements and other measures.We hold and (both mean “auto home” in English) and “AUTOHOME®” trademarks in China. In addition, as at December 31, 2015,we held 211 pending trademark applications and 93 registered trademarks in China. As at the same date, we had 45 registered domain names, including ourmain website domain names, autohome.com.cn and che168.com, 92 pending patent applications, and 19 registered patents. 45Table of ContentsCompetitionWe compete with China’s automotive websites, such as xcar.com.cn, pcauto.com.cn and bitauto.com, automotive channels of major internet portals,such as Sina and Sohu, and traditional forms of media such as television and magazines. We compete primarily on the basis of user traffic, user engagementand brand recognition, which drive the acquisition and retention of automakers and automobile dealers as advertisers and their spending on our advertisingservices. We may also face competition from other websites engaged in the online automobile transaction business, such as bitauto.com and tmall.com, as wedevelop our transaction platform. We re-designed our che168.com website in October 2011 and converted it into our dedicated used car platform. Our re-designed che168.com website faces competition from other used car websites, such as 51auto.com, taoche.com, youxinpai.com, guazi.com andrenrenche.com. Competition will be centered on factors similar to those affecting our current automotive advertising and dealer subscription services,primarily centered on increasing user reach, user engagement and brand recognition, relationships with the suppliers, and attracting and retaining advertisersor customers, among other factors. For our transaction business, as online automobile transaction is a relatively new business model and consumers in Chinamight be accustomed to make automobile purchases with traditional dealerships, we cannot guarantee that the automobile consumers in China will acceptsuch business model. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—We face significant competition, and ifwe fail to compete effectively, we may lose market share and our business, prospects and results of operations may be materially and adversely affected.”SeasonalitySeasonal fluctuations have affected, and are likely to continue to affect, our business. We generally generate less revenue from advertising services anddealer subscription services in the first quarter of each year due to the Chinese New Year holidays and reduced customer activities during this period. Ouradvertising services typically increase in the second quarter as automakers increase marketing activities in connection with China’s major auto shows, and inthe fourth quarter as advertisers seek to complete year-end marketing campaigns. Our cost of revenues, sales and marketing expenses and general andadministrative expenses tend to follow the trend of our business growth. See also “Item 3. Key Information—D. Risk Factors—Risks Related to Our Businessand Industry—Our business is subject to fluctuations, which makes our results of operations difficult to predict and may cause our quarterly results ofoperations to fall short of expectations.” Our transaction business has not experienced similar trends due to its limited operating history and rapid growth butseasonality may increase in the future.Our cost of revenues, sales and marketing expenses and general and administrative expenses tend to follow the trend of our business growth. See also“Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Our business is subject to fluctuations, which makes our results ofoperations difficult to predict and may cause our quarterly results of operations to fall short of expectations.”Legal ProceedingsFrom time to time, we may be subject to various claims and legal actions that arise in the ordinary course of our business. There are currently no legalproceedings that, in the opinion of our management, may have a material adverse effect on our business and results of operations.Disclosure of Iran-related Activities under Section 13(r) of the Securities Exchange Act of 1934Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Securities Exchange Act of 1934, asamended, or the Exchange Act. Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliatesknowingly engaged in certain activities, transactions or dealings relating to Iran or with designated natural persons or entities involved in terrorism or theproliferation of weapons of mass destruction. Disclosure is required even where the activities, transactions or dealings are conducted outside the United Statesby non-U.S. affiliates in compliance with applicable law, whether or not the activities are sanctionable under U.S. law.As of the date of this report, we are not aware of any activity, transaction or dealing by us or any of our affiliates for the year ended December 31, 2015that requires disclosure in this report under Section 13(r) of the Exchange Act, except as set forth below with respect to our affiliate, Telstra CorporationLimited, or Telstra. 46Table of ContentsTelstra has informed us that it is party to roaming, interconnection and wholesale voice agreements with the following telecommunication providers inIran, some of which may be government-controlled entities: Mobile Company of Iran, Rafsanjan Industrial Complex Islamic Cooperative Company (alsoknown as Taliya) and Telecommunication Infrastructure Company of Iran. These agreements provide Telstra’s customers with service in areas where Telstradoes not own networks and our counterparties’ customers with service on Telstra’s networks. As Telstra’s fiscal year ends on June 30, Telstra does notnormally prepare gross revenue or net profit on the basis of a year ended on December 31. Further, Telstra does not allocate costs on an agreement-by-agreement or country-by-country basis and therefore does not normally calculate a profit measure on such bases. However, for the year ended December 31,2015, it is estimated that gross revenues generated by roaming, interconnection and wholesale voice agreements with Iranian entities were A$45,266(US$32,981) and gross expenses were A$879,120 (US$640,527), in this connection. In addition, Telstra provides telecommunications services in theordinary course of business to the Embassy of the Islamic Republic of Iran in Australia. Gross revenues and net profits generated by these services areestimated to be less than A$40,000 (US$29,144) for the year ended December 31, 2015.We understand that Telstra intends to continue these activities.The financial data in this section has been translated from Australian dollars into U.S. dollars using the noon buying rate for December 31, 2015 ofAUD$1.00=US$0.7286.PRC RegulationThis section summarizes the principal PRC laws and regulations relevant to our business and operations.Regulations on Value-Added Telecommunications ServicesOn September 25, 2000, the State Council promulgated the Telecommunications Regulations, or the Telecom Regulations, which draw a distinctionbetween “basic telecommunication services” and “value-added telecommunication services.” The Telecommunications Regulations were subsequentlyrevised on July 29, 2014. On 25 December 2015, the MIIT published the Classification Catalogue of Telecommunications Services (the 2015 Catalogue),which will take effect on March 1, 2016. The first catalogue was published in September 2000 and was subsequently amended in 2001 and 2003,respectively. Under the 2015 Catalogue, “value-added telecommunication services” was further classified into two sub-categories and 10 items. Internetcontent provision services, or ICP services, is under the second subcategory of value-added telecommunications businesses. Under the Telecom Regulations,commercial operators of value-added telecommunications services must first obtain an operating license from the MIIT or its provincial level counterparts.On September 25, 2000, the State Council issued the Administrative Measures on Internet Information Services, or the Internet Measures. The measureswere subsequently revised on January 8, 2011. According to the Internet Measures, commercial ICP service operators must obtain an ICP license from therelevant government authorities before engaging in any commercial ICP operations within the PRC.On March 1, 2009, the MIIT promulgated the Administrative Measures on Telecommunications Business Operating License, or the Telecom LicenseMeasures, which took effect on April 10, 2009. The Telecom License Measures set forth the types of licenses required to operate value-addedtelecommunications services and the qualifications and procedures for obtaining such licenses. For example, an ICP operator providing value-added servicesin multiple provinces is required to obtain an inter-regional license, whereas an ICP operator providing the same services in one province is required toobtain a local license.To comply with these PRC laws and regulations, both of our ICP operators, Autohome Information and Shengtuo Hongyuan, hold ICP licenses.Autohome Information also holds a value-added telecommunications business operation license for provision of mobile network information services. 47Table of ContentsRestrictions on Foreign Ownership in Value-Added Telecommunications ServicesAccording to the Provisions on Administration of Foreign Invested Telecommunications Enterprises, or the FITE Provisions, promulgated by the StateCouncil on December 11, 2001 and amended on September 10, 2008, the ultimate foreign equity ownership in a value-added telecommunications serviceprovider must not exceed 50%. Moreover, for a foreign investor to acquire any equity interest in a value-added telecommunication business in China, it mustdemonstrate a good track record and experience in operating value-added telecommunications services. Foreign investors that meet these requirements mustobtain approvals from the MIIT and the Ministry of Commerce or its authorized local branches, and the relevant approval application process usually takessix to nine months.On July 13, 2006, the MIIT issued the Notice of the MIIT on Intensifying the Administration of Foreign Investment in Value-addedTelecommunications Services. This notice prohibits domestic telecommunication service providers from leasing, transferring or selling telecommunicationsbusiness operating licenses to any foreign investor in any form, or providing any resources, sites or facilities to any foreign investor for their illegal operationof a telecommunications business in China. According to this notice, either the holder of a value-added telecommunication business operating license or itsshareholders must legally own the domain names and trademarks used by such license holders in their provision of value-added telecommunication services.The notice further requires each license holder to have the necessary facilities, including servers, for its approved business operations and to maintain suchfacilities in the regions covered by its license. In addition, all value-added telecommunication service providers are required to maintain network and internetsecurity in accordance with the standards set forth in relevant PRC regulations. If a license holder fails to comply with the requirements in the notice and curesuch non-compliance, the MIIT or its local counterparts have the discretion to take measures against such license holders, including revoking their valued-added telecommunication business operating licenses.To comply with these PRC regulations, we operate our websites through our VIEs, Autohome Information and Shengtuo Hongyuan. AutohomeInformation is currently 68% owned by Xiang Li, 24% owned by Zheng Fan and 8% owned by James Zhi Qin, all of whom are PRC citizens. ShengtuoHongyuan is currently 50% owned by James Zhi Qin and 50% owned by Zheng Fan, all of whom are PRC citizens. Both Autohome Information andShengtuo Hongyuan hold ICP licenses.Regulations on Internet Content ServicesThe National People’s Congress has enacted laws with respect to maintaining the security of internet operation and internet content. According tothese laws, as well as the Internet Measures, violators may be subject to penalties, including criminal sanctions, for internet content that: • opposes the fundamental principles stated in the PRC constitution; • compromises national security, divulges state secrets, subverts state power or damages national unity; • harms the dignity or interests of the state; • incites ethnic hatred or racial discrimination or damages inter-ethnic unity; • undermines the PRC’s religious policy or propagates heretical teachings or feudal superstitions; • disseminates rumors, disturbs social order or disrupts social stability; • disseminates obscenity or pornography, encourages gambling, violence, murder or fear or incites the commission of a crime; • insults or slanders a third party or infringes upon the lawful rights and interests of a third party; or • is otherwise prohibited by law or administrative regulations.On February 4, 2015, the China Internet Network Information Center promulgated the Administrative Provisions on Account Names of Internet Users,or the Account Names Provisions, which became effective as of March 1, 2015. The Account Name Provisions require all users of internet information serviceproviders to authenticate their real identity information for registration of accounts and to commit to complying with the “seven basic requirements,”including observing the laws and regulations, upholding the socialist regime, protecting state interests and, among other requirements, ensuring theauthenticity of any information they provide. Relevant internet information service providers are responsible for the protection of users’ privacy, consistencyof user information, such as account names, avatars, the requirements contemplated in the Account Names Provisions, making reports to the competentauthorities regarding any violation of the Account Names Provisions, and taking appropriate measures to stop any such violations, such as notifying the userto make corrections within a specified time and suspending or closing accounts in the event of continuing non-compliance. 48Table of ContentsICP operators are required to monitor their websites. They may not post or disseminate any content that falls within these prohibited categories andmust remove any such content from their websites. The PRC government may shut down the websites of ICP license holders that violate any of the above-mentioned content restrictions, order them to suspend their operations, or revoke their ICP licenses. These laws and regulations apply to the websites weoperate through our VIEs.Regulations on Internet PrivacyIn recent years, PRC government authorities have enacted legislation on internet use to protect personal information from any unauthorized disclosure.The PRC law does not prohibit ICP operators from collecting and using personal information from their users with the users’ consent. However, the InternetMeasures prohibit an ICP operator from insulting or slandering a third party or infringing the lawful rights and interests of a third party. The regulationsfurther authorize the relevant telecommunications authorities to order ICP operators to rectify unauthorized disclosure. ICP operators are subject to legalliability if the unauthorized disclosure results in damages or losses to users. The PRC government, however, has the power and authority to order ICPoperators to turn over personal information if an internet user posts any prohibited content or engages in illegal activities on the internet. On December 29,2011, the MIIT promulgated the Several Provisions on Regulating the Market Order of Internet Information Services, effective as of March 15, 2012. Itstipulates that ICP operators may not, without a user’s consent, collect the user’s information that can be used alone or in combination with other informationto identify the user and may not provide any such information to third parties without the user’s prior consent. ICP operators may only collect users’ personalinformation that is necessary to provide their services and must expressly inform the users of the method, content and purpose of the collection and use ofsuch personal information. In addition, an ICP operator may only use users’ personal information for the stated purposes under the ICP operator’s scope ofservice. ICP operators are also required to ensure the proper security of users’ personal information, and take immediate remedial measures if users’ personalinformation is suspected to have been inappropriately disclosed. If the consequences of any such disclosure are expected to be serious, ICP operators mustimmediately report the incident to the telecommunications regulatory authority and cooperate with the authorities in their investigations.On December 28, 2012, the Standing Committee of the National People’s Congress of the PRC issued the Decision on Strengthening the Protection ofOnline Information. Most requirements under this decision relevant to ICP operators are consistent with the requirements already established under the MIITprovisions discussed above, but are often stricter and broader. Under this decision, ICP operators are required to take such technical and other measuresnecessary to safeguard information against inappropriate disclosure. To further implement this decision and relevant rules, MIIT issued the Regulation ofProtection of Telecommunication and Internet User Information on July 16, 2013, which became effective on September 1, 2013.To comply with these laws and regulations, we require our users to accept a user terms of service whereby they agree to provide certain personalinformation to us, and have established information security systems to protect users’ privacy.Regulations on AdvertisementsThe PRC government regulates advertising, including online advertising, principally through the SAIC, although there is no PRC law or regulation atthe national level that specifically regulates the online advertising business. Prior to November 30, 2004, in order to conduct any advertising business, anenterprise was required to hold an operating license for advertising in addition to a relevant business license. On November 30, 2004, the SAIC issued theAdministrative Rules for Advertising Operation Licenses, effective as of January 1, 2005, granting a general exemption to this requirement for mostenterprises (other than radio stations, television stations, newspapers and magazines, non-corporate entities and entities specified in other regulations).Because our subsidiaries and VIEs which engage in advertising businesses qualify for the exemption noted above, they are not required to hold anadvertising operation license. 49Table of ContentsBefore we acquired Autohome Media (formerly known as Prbrownies Marketing Limited) in October 2013, we conducted our advertising businessthrough two subsidiaries of Autohome Information, namely Autohome Advertising and Chengshi Advertising, Shanghai Advertising and GuangzhouAdvertising due to the previous restrictions on foreign investors holding direct equity interests in PRC advertising companies. In October 2013, AutohomeHK acquired Autohome Media, a Hong Kong advertising and marketing company. Autohome Media has established subsidiaries in Beijing, Shanghai,Guangzhou and Tianjin. We have migrated our advertising business from Autohome Advertising, Chengshi Advertising, Shanghai Advertising andGuangzhou Advertising, to the subsidiaries of Autohome Media in 2015.Advertisers, advertising operators and advertising distributors are required by PRC advertising laws and regulations to ensure that the content of theadvertisements they produce or distribute are true and in full compliance with applicable laws and regulations. In addition, where a special governmentreview is required for certain categories of advertisements before publishing, the advertisers, advertising operators and advertising distributors are obligatedto confirm that such review has been duly performed and that the relevant approval has been obtained. Violation of these regulations may result in penalties,including fines, confiscation of advertising income, orders to cease dissemination of the advertisements and orders to publish an advertisement correcting themisleading information. In circumstances involving serious violations, the SAIC or its local branches may order the violator to terminate its advertisingoperation or even revoke its business license. Furthermore, advertisers, advertising operators or advertising distributors may be subject to civil liabilities ifthey infringe on the legal rights and interests of third parties.On April 24, 2015 the Standing Committee of the National People’s Congress issued the PRC Advertising Law or the Advertising Law, which cameinto effect on September 1, 2015. The Advertising Law applies to all advertising activities conducted via the internet. The Advertising Law requires thatusers must be able to close online pop-up ads with one click. Moreover, internet service providers are obligated to cease publishing any advertisements thatthey know or should know are illegal. Violation of these regulations may result in penalties, including fines, confiscation of the advertising incomes,termination of advertising operations and even suspension of the provider’s business license.To comply with these laws and regulations, we include clauses in our advertising contracts requiring that all advertising content provided byadvertisers must comply with relevant laws and regulations. Prior to website posting, our staff reviews advertising materials to ensure there is no violent,pornographic or any other improper content, and will request the advertiser to provide government approval if the advertisement is subject to specialgovernment review.Regulations on Broadcasting Audio/Video Programs through the InternetOn July 6, 2004, the SARFT promulgated the Rules for the Administration of Broadcasting of Audio/Video Programs through the Internet and OtherInformation Networks, or the A/V Broadcasting Rules. The A/V Broadcasting Rules apply to the launch, broadcasting, aggregation, transmission or downloadof audio/video programs via televisions, mobile phones and the internet and other information networks. Anyone who wishes to engage in internetbroadcasting activities must first obtain an audio/video program transmission license issued by the SARFT and operate pursuant to the scope as provided insuch license. Foreign invested enterprises are not allowed to engage in the above business.On April 13, 2005, the State Council announced Several Decisions on Investment by Non-state-owned Companies in Culture-related Business inChina. These decisions encourage and support non-state-owned companies to enter certain culture-related business in China, subject to restrictions andprohibitions for investment in audio/video broadcasting, website news and certain other businesses by non-state-owned companies. These decisionsauthorize the SARFT, the Ministry of Culture and the General Administration of Press and Publication to adopt detailed implementation rules according tothese decisions. 50Table of ContentsOn December 20, 2007, the SARFT and the MIIT jointly issued the Rules for the Administration of Internet Audio and Video Program Services,commonly known as Circular 56, which came into effect as of January 31, 2008. Circular 56 reiterates the requirement set forth in the A/V Broadcasting Rulesthat online audio/video service providers must obtain an “internet audio/video program transmission license” from the SARFT. Furthermore, Circular 56requires all online audio/video service providers to be either wholly state-owned or state-controlled companies. According to relevant official answers topress questions published on the SARFT’s website dated February 3, 2008, officials from the SARFT and the MIIT clarified that online audio/video serviceproviders that already had been operating lawfully prior to the issuance of Circular 56 may re-register and continue to operate without becoming state-ownedor controlled, provided that such providers have not engaged in any unlawful activities. This exemption will not be granted to online audio/video serviceproviders established after Circular 56 was issued. These policies have been reflected in the Application Procedure for Audio/Video Program TransmissionLicense. Failure to obtain the internet audio/video program transmission license may subject an online audio/video service provider to various penalties,including fines of up to RMB30,000, seizure of related equipment and servers used primarily for such activities and even suspension of its onlineaudio/video services.To comply with these laws and regulations, Autohome Information obtained an internet audio/video program transmission license on February 9,2010, for automotive-industry-information-related audio/video programs posted on our autohome.com.cn website.Regulations on Producing Audio/Video ProgramsOn July 19, 2004, the SARFT promulgated the Administrative Measures on the Production and Operation of Radio and Television Programs, effectiveas of August 20, 2004. These Measures provide that anyone who wishes to produce or operate radio or television programs must first obtain an operatingpermit. Applicants for this permit must meet several criteria, including having a minimum registered capital of RMB3.0 million. Autohome Information andShengtuo Hongyuan hold operating licenses for the production and dissemination of radio and television programs for special topic programs, cartoons andtelevision variety shows.Regulations on Internet Mapping ServicesAccording to the amended Administrative Rules of Surveying Qualification Certificates and the amended Standards for Internet Map Services issuedby the National Administration of Surveying, Mapping and Geoinformation, or NASMG, in July 2014, the provision of internet mapping services by anynon-surveying and mapping enterprise is subject to the approval of the NASMG and requires a surveying and mapping qualification certificate. According tothese rules, certain conditions and requirements, such as the number of technical personnel and map security verification personnel, security facilities andapproval from relevant provincial or national government on the service provider’s security system, qualification management and filings management, arenecessary for an enterprise applying for a Surveying and Mapping Qualification Certificate. Pursuant to the Notice on Further Strengthening theAdministration of Internet Map Services Qualification issued by the NASMG in December 2011, any entity that has not yet applied for a surveyingqualification certificate for internet mapping services is prohibited from providing any internet mapping services.On November 26, 2015, the State Council enacted the Administrative Regulations on Maps, or the Maps Regulations, effective as of January 1, 2016.The Maps Regulations requires entities engaging in internet mapping services, such as geographic positioning, the uploading of geographic information ormarkings, and the development of a public map database, to obtain a relevant qualification certificate for surveying and mapping. The Maps Regulationsrequire entities engaging in online map services to use mapping data approved by the relevant governmental authorities, host servers storing map data withinthe PRC, and establish a management system as well as protection measures for the data security of the online maps. The mapping data must not contain anycontent prohibited by the Maps Regulations, and no entities or individuals are allowed to upload or mark such prohibited content online. Further, entitiesengaging in internet mapping services shall keep confidential any information involving state secrets and trade secrets acquired during their work.We have provided maps on our websites for the convenience of our users to locate certain services providers. Both Autohome Information andShengtuo Hongyuan hold the Surveying and Mapping Qualification Certificate for internet mapping. 51Table of ContentsRegulations on Online Cultural ServicesOn February 17, 2011, the Ministry of Culture promulgated the Internet Culture Administration Tentative Measures, or the Internet Culture Measures,which became effective on April 1, 2011 and replaced the original measures promulgated in 2003 and amended in 2004. The Internet Culture Measuresrequire ICP operators engaged in “internet culture activities” to obtain an internet cultural operating license from the provincial administration of culture.The term “internet culture activities” includes, among other things, online dissemination of internet cultural products (such as audio-video products, gamingproducts, performances of plays or programs, works of art and cartoons) and the production, reproduction, importation, publication and broadcasting ofinternet cultural products.Autohome Information has applied for and obtained an internet culture operating license in January 2013.Regulations on Internet PublishingThe Administrative Provisions on Online Publishing Services, or the Online Publishing Provisions, was jointly issued by the MIIT and the StateGeneral Administration of Press, Publication, Radio, Film and Television in 2016, and came into effect on March 10, 2016. The Online Publishing Provisionsdefine “online publishing services” as providing online publications to the public through information networks. Any online publishing services provided inthe territory of the PRC are subject to these provisions. The Online Publishing Provisions requires any internet publishing services provider to obtain anonline publishing service license to engage in online publishing services. Under the Online Publishing Provisions, online publications refers to digital workswhich have publishing features such as digital work that have been edited, produced or processed and which are made available to the public throughinformation networks, including written works, pictures, maps, games, cartoons, audio/video reading materials and other methods. Any online game shallobtain approval from SAPPRFT before it is launched online. Furthermore, Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures andwholly foreign-owned enterprises cannot engage in providing web publishing services.Based on a consultation we had with the local press and publication administration authority, we believe we are not required to obtain the internetpublishing license as the activities we engage in on our websites do not constitute “internet publishing activities,” as such term is used in the OnlinePublishing Provisions. We are also not aware of companies with an operation similar to ours that have obtained or been required to obtain the internetpublishing license. As a result, both Autohome Information and Shengtuo Hongyuan have not applied for such internet publishing approval. However, in theevent that our activities are deemed to be “internet publishing,” we may be required to obtain approval from GAPP. If we are deemed to be in breach ofrelevant internet publishing regulations, the PRC regulatory authorities may seize the related equipment and servers used primarily for such activities andconfiscate any revenues generated from such activities. In addition, relevant PRC authorities may also impose a fine of five to ten times of any revenuesexceeding RMB10,000 or a fine of not more than RMB50,000 if such related revenues are below RMB10,000.Regulations on Internet News Information ServiceIn September 2005, the State Council Information Office, or SIIO, and the Ministry of Industry and Information Technology jointly issued theProvisions for the Administration of Internet News Information Services, or Internet News Provision. Internet news information services shall include thepublishing of news via the internet, provision of electronic bulletin services on current and political events and transmission of information on current andpolitical events to the public. Under the Internet News Provision, internet news service providers shall also include entities that are not established by thepress but reproduce internet news from other sources, provide electronic bulletin services on current and political events, and transmit such information to thepublic. The Information Office of the State Council shall be in charge of the supervision and administration of the internet news information servicesthroughout China. The counterparts of the Information Office of the State Council at the provincial level shall take charge of the supervision andadministration of the internet news information services within their own jurisdiction. The SIIO circulated a revised draft of the Administrative Regulationsfor Internet News Information Services to solicit public comments on 11 January 2016.If we release information that may be deemed by authorities as internet news, we may be required to obtain the internet news information servicelicense. However, we have consulted the relevant government authorities and have been informed that we would not be required to obtain the internet newsreleasing license because the internet news posted on our website is only automotive industry related news which is not political in nature or related tomacroeconomics. However, if any of the internet news posted on our website is deemed by the government to be political in nature, related tomacroeconomics, or otherwise requires such license based on the sole discretion of the government authority, we would need to apply for such license. If weare deemed to be in breach of the Internet News Provision or other relevant internet news releasing regulations, the PRC regulatory authorities may suspendour information release activities and impose a fine exceeding RMB10,000 but not more than RMB30,000. In serious cases, the PRC regulatory authoritiesmay even suspend the internet service or internet access. 52Table of ContentsRegulations on E-commerceChina’s e-commerce industry is at an early stage of development and there are few PRC laws or regulations specifically regulating the e-commerceindustry. In January 2014, the SAIC promulgated the Administrative Measures for Online Trading, which strengthen the protection of consumers and imposestringent requirements and obligations on online business operators and third-party online marketplace operators. Online business operators and third-partyonline marketplace operators are prohibited from collecting any information on consumers and business operators or disclosing, selling or providing anysuch information to any third party, or sending commercial electronic messages to consumers without their consent. Fictitious transactions, deletion ofadverse comments and technical attacks on competitors’ websites are prohibited as well. In addition, third-party online marketplace operators are required toexamine and verify the identifications of the online business operators and set up and retain relevant records for at least two years. Moreover, any third-partyonline marketplace operator that simultaneously engages in online trading for products and services should clearly distinguish itself from other onlinebusiness operators on the marketplace platform. We are subject to these measures as a result of our online platform services.Foreign investors were not allowed to own more than 50% of the equity interests in e-commerce companies which is a subcategory of value-addedtelecommunication services, and any such foreign investor must have experience in providing value-added telecommunications services overseas andmaintain a good track record, except for foreign investors in China (Shanghai) Pilot Free Trade Zone, subject to certain conditions. The NationalDevelopment and Reform Commission and the Ministry of Commerce jointly issued the Catalogue for the Guidance of Foreign Investment Industries inMarch 2015, or the Catalogue, which further relaxes market access through regulatory reforms such as allowing foreign investors to have complete ownershipof equity interests in e-commerce businesses. The Catalogue took effect on April 10, 2015.Currently, we primarily engage in the E-commerce business of automobiles through Autohome (Tianjin) Automobile Sales Co., Ltd., a wholly ownedsubsidiary of the Company.Regulations on Foreign Investment in the Leasing IndustryOn October 28, 2015, the Ministry of Commerce enacted the Measures for the Administration of Foreign Investment in the Leasing Industry, or theForeign Investment in the Leasing Industry Measures, effective as of October 25, 2018. Under the Measures, foreign invested enterprises in the form of Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures and wholly foreign-owned enterprises in the PRC are allowed to engage in the leasingbusiness or financial leasing business as well as to carry out relevant business activities upon the approval of the Ministry of Commerce. Foreign-investedfinancial leasing companies may conduct the following businesses: (i) financial leasing business; (ii) leasing business; (iii) purchase of leased property insideand outside of PRC; (iv) maintenance of assets underlying the leases and disposal of the residual value of assets underlying the leases; (v) lease transactionconsultancy and security services; and (vi) other businesses approved by the Ministry of Commerce. The leased objects include transportation equipment,such as airplanes, automobiles, ships and other personal properties.Currently, the Financing JV primarily engages in the financial leasing business of automobiles.Regulations on Used Automobile TradingOn August 29, 2005, SAT, SAIC, the Ministry of Commerce and the Ministry of Public Security jointly promulgated the Measures for theAdministration of the Trading of Used Automobiles, or the Used Automobile Trading Measures, which became effective on October 1, 2005. Pursuant to theUsed Automobile Trading Measures, only an enterprise legal person duly registered with the SAIC or its local branches may engage in used automobiletrading, either as an operator of used automobiles markets, as a retailer, or as a brokerage entity. Furthermore, for a foreign invested enterprise to engage in thetrading of used automobiles, it shall first obtain approval from the Ministry of Commerce and be in compliance with the requirements on the Measures for theAdministration of Foreign Investment in the Commercial Sector, or the FICE Measures, which was promulgated by MOFCOM on 16 April, 2004 and revisedon 28 October, 2015. 53Table of ContentsUnder the Used Automobile Trading Measures, a seller of used automobiles must verify certain background information regarding to the automobilesfor sale, including verification of the identity certificate of the previous owner, the number plate of the automobile, the motor vehicle registration certificate,driver’s license of the previous owner, proof that the automobile has passed the security technical examination, automobile insurance, and paymentcertificate of relevant taxes and fees. Used automobile retailers shall also provide quality guarantees as well as after-sale services, information about whichshall be clearly indicated at its business location. Furthermore, under certain circumstances, used automobiles are prohibited from being resold, includinginstances where an automobile has been discarded as unusable, been required to be discarded, or been obtained by illegal means, such as through theft,robbery or fraud.On March 24, 2006, the Ministry of Commerce promulgated the Specifications for Used Automobile Trade, which provided detailed requirements as tothe responsibilities of used automobiles trading entity regarding the trading of used automobiles, including the confirmation of the identity of the seller andthe legitimacy of the used automobiles, signing contract for used automobile trading, establishing transaction archives and keeping records for at least threeyears.Currently, we primarily engage in the used automobile trading through Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Regulations on Automobile SalesOn February 21, 2005, the Ministry of Commerce, the National Development and Reform Commission, or the NDRC, and the SAIC jointlypromulgated the Implementation Measures for the Administration of Sales of Branded Automobile, or the Branded Automobile Sales Measures, which tookeffect on April 1, 2005. The Branded Automobile Sales Measures provide for a dealership arrangement under which one general distributor is in charge of theentire sales and after-sales service chain. According to the Branded Automobile Sales Measures, the plan for the distribution and after-sales service networkfor each single brand of automobile shall in general be formulated and implemented by one single enterprise in the PRC, i.e., either the automakers in thePRC itself or an authorized general distributor.To address increasing monopoly concerns in the Chinese automotive industry, on July 31, 2013, SAIC promulgated the Announcement on StoppingRecordal of Automobile General Distributors and Authorized Branded Automobile Dealers, or the Stopping Recordal Announcement. Starting fromAugust 20, 2014, the SAIC no longer accepts any filing for recordal of authorized dealers of branded automobiles, including general distributors, and theimplementation of the recordal system of general distributor and dealers for branded automobiles has ceased. For any new general distributors or authorizeddealers, their business scope will be stated as “sales of automobiles” without mentioning the brand of the automobiles for sale. For the existing ones, theymay also apply to changing their business scope from “sales of brand named automobiles” to “sales of automobiles”. The Stopping Recordal Announcementalso emphasizes that the SAIC will strengthen its administration and supervision of the operational activities in the automobile industry, protect the lawfulrights of consumers and maintain a market with fair competition.On January 7, 2016, the Ministry of Commerce publicized the draft of Measures on the Administrations of Sales of Automobile, or the Measures onSales of Automobile, for public consultation. The Measures on Sales of Automobile proposed changes to the provisions on dealership arrangement under theBranded Automobile Sales Measures. Once the Measures on Sales of Automobile is promulgated by the Ministry of Commerce, it will replace the BrandedAutomobile Sales Measures.Currently, we primarily engage in the automobile sales through Autohome (Tianjin) Automobile Sales Co., Ltd.Regulations on Intellectual Property RightsChina has adopted legislation governing intellectual property rights, including trademarks, patents and copyrights. China is a signatory to the majorinternational conventions on intellectual property rights and became a member of the Agreement on Trade Related Aspects of Intellectual Property Rightsupon its accession to the World Trade Organization in December 2001.Patent. The National People’s Congress adopted the Patent Law in 1984, and amended it in 1992, 2000 and 2008. The purpose of the Patent Law is toprotect lawful interests of patent holders, encourage invention, foster applications of inventions, enhance innovative capabilities and promote thedevelopment of science and technology. To be patentable, invention or utility models must meet three conditions: novelty, inventiveness and practicalapplicability. Patents cannot be granted for scientific discoveries, rules and methods for intellectual activities, methods used to diagnose or treat diseases,animal and plant breeds, substances obtained by means of nuclear transformation or a design which has major marking effect on the patterns or colors ofgraphic print products or a combination of both patterns and colors. The Patent Office under the State Intellectual Property Office is responsible for receiving,examining and approving patent applications. A patent is valid for a term of twenty years in the case of an invention and a term of ten years in the case ofutility models and designs. A third-party user must obtain consent or a proper license from the patent owner to use the patent. Otherwise, the use constitutesan infringement of patent rights. We had 92 pending patent applications and 19 registered patents as of December 31, 2015. 54Table of ContentsCopyright. The National People’s Congress adopted the Copyright Law in 1990 and amended it in 2001 and 2010, respectively. The amendedCopyright Law extends copyright protection to internet activities, products disseminated over the internet and software products. In addition, there is avoluntary registration system administered by the China Copyright Protection Center. The amended Copyright Law also requires registration of a copyrightpledge.To address the problem of copyright infringement related to the content posted or transmitted over the internet, the National Copyright Administrationand the MIIT jointly promulgated the Measures for Administrative Protection of Internet Copyright on April 29, 2005. This measure became effective onMay 30, 2005.On October 27, 2000, the MIIT issued the Administrative Measures on Software Products, or the Software Measures, to strengthen the regulation ofsoftware products and to encourage the development of the PRC software industry. On March 5, 2009, the MIIT issued amended Software Measures, whichbecame effective on April 10, 2009. The Software Measures provide a registration and filing system with respect to software products made in or importedinto China. These software products may be registered with the competent local authorities in charge of software industry administration. Registered softwareproducts may enjoy preferential treatment status granted by relevant software industry regulations. Software products can be registered for five years, and theregistration is renewable upon expiration.In order to further implement the Computer Software Protection Regulations promulgated by the State Council on December 20, 2001, as amended in2013, the National Copyright Administration of the PRC issued Computer Software Copyright Registration Procedures on February 20, 2002, which apply tosoftware copyright registration, license contract registration and transfer contract registration.In compliance with, and in order to take advantage of, the above rules, we have registered 129 computer software copyrights as of December 31, 2015.On May 18, 2006, the State Council promulgated the Protection of the Right of Communication through Information Networks, which becameeffective on July 1, 2006, as amended in 2013. Under this regulation, with respect to any information storage space, search or link services provided by aninternet service provider, if the legitimate rights owner believes that the works, performance or audio or video recordings pertaining to that service infringehis or her rights of communication, the rights owner may give the internet service provider a written notice containing the relevant information along withpreliminary documents supporting that an infringement has occurred, and requesting that the internet service provider delete, or disconnect the links to, suchworks or recordings. The rights owner will be responsible for the truthfulness of the content of the notice. Upon receipt of the notice, the internet serviceprovider must delete or disconnect the links to the infringing content immediately and forward the notice to the user that provided the infringing works orrecordings. If the user believes that the subject works or recordings have not infringed upon others’ rights, the user may submit to the internet service providera written explanation with preliminary documents supporting non-infringement, and a request for the restoration of the deleted works or recordings. Theinternet service provider should then immediately restore the deleted or disconnected content and forward the user’s written statement to the rights owner.On December 26, 2009, the Standing Committee of the National People’s Congress adopted the Torts Liability Law, which became effective on July 1,2010. Under this Torts Liability Law, both internet users and internet service providers may be liable for the wrongful acts of users who infringe the lawfulrights of other parties. If an internet user utilizes internet services to commit a tortious act, the party whose rights are infringed may request the internetservice provider to take measures, such as removing or blocking the content, or disabling the links thereto. Failure to take necessary measures after receivingsuch notice will subject the internet service providers to joint liability for any further damages suffered by the rights holder. Furthermore, if an internetservice provider fails to take necessary measures when it knows that an internet user utilizes its internet services to infringe the lawful rights and interests ofother parties, it will be held jointly liable with the internet user for damages resulting from the infringement. 55Table of ContentsAccording to an interpretation by PRC Supreme People’s Court, which took effect on January 1, 2013, internet service providers will be held jointlyliable if they continue their infringing activities or do not remove infringing content from their websites once they know of the infringement or receive noticefrom the rights holder. If an internet service provider economically benefits from the works, performances, and sound or visual recordings provided bynetwork users, it must pay close attention to infringement of network information transmission rights by network users.Trademark. The PRC Trademark Law, adopted in 1982 and amended in 1993, 2001 and 2013, protects registered trademarks. The Trademark Officeunder the SAIC handles trademark registrations and grants a term of ten years for registered trademarks. Trademark license agreements must be filed with theTrademark Office for record. We hold and (“auto home” in English) and “AUTOHOME®” trademarks in China with each registered underdifferent categories.Domain Names. In September 2002, the CNNIC issued the Implementing Rules for Domain Name Registration, as amended in June 2009 and May2012, that set forth detailed rules for registration of domain names. On November 5, 2004, the MIIT promulgated the Measures for Administration of DomainNames for the Chinese Internet, or the Domain Name Measures. The Domain Name Measures regulate the registration of domain names, such as the first tierdomain name “.cn.” In 2002, the CNNIC issued the Measures on Domain Name Dispute Resolution, as amended in February 2006 and 2012, pursuant towhich the CNNIC can authorize a domain name dispute resolution institution to decide disputes. We have registered a number of domain names, includingautohome.com.cn, autohome.com and che168.com.Regulations on TaxSee “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Taxation—PRC” and “Item 10. Additional Information—E.Taxation—People’s Republic of China Taxation.”Regulations on Foreign ExchangeForeign exchange activities in China are primarily governed by the following regulations: • Foreign Currency Administration Rules (2008), or the Exchange Rules; and • Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules.Under the Exchange Rules, if documents certifying the purposes of the conversion of RMB into foreign currency are submitted to the relevant foreignexchange conversion bank, the RMB will be convertible for current account items, including the distribution of dividends, interest and royalties payments,and trade and service-related foreign exchange transactions. Conversion of RMB for capital account items, such as direct investment, loans, securitiesinvestment and repatriation of investment, however, is subject to the approval of, or registration with, SAFE or its local counterpart. Capital investments byPRC entities outside of China, after obtaining the required approvals of, or making filings with, the relevant approval authorities, such as the Ministry ofCommerce and the National Development and Reform Commission or their local counterparts, are also required to register with SAFE or its local counterpart.Under the Administration Rules, foreign-invested enterprises may only buy, sell and/or remit foreign currencies at banks authorized to conduct foreignexchange business after providing valid commercial documents and, in the case of capital account item transactions, obtaining approval from or beingregistered with SAFE or its local counterpart. 56Table of ContentsIn utilizing the proceeds we received from our equity offerings, as an offshore holding company with PRC subsidiaries, we may (a) make additionalcapital contributions to our PRC subsidiaries, (b) establish new PRC subsidiaries and make capital contributions to these new PRC subsidiaries, (c) makeloans to our PRC subsidiaries or VIEs or (d) acquire offshore entities with business operations in China in offshore transactions. However, most of these usesare subject to PRC regulations and approvals. For example: • capital contributions to our PRC subsidiaries, whether existing or newly established, must be approved by the Ministry of Commerce or its localcounterparts; • loans by us to our PRC subsidiaries, each of which is a foreign-invested enterprise, to finance their activities cannot exceed statutory limits andmust be registered with SAFE or its local branches; and • loans by us to our VIEs, which are domestic PRC entities, must be approved by the National Development and Reform Commission (in the caseof middle or long term loans) or be within the limits approved by SAFE (in the case of short term loans), and must also be registered with SAFE orits local branches.On March 30, 2015, SAFE issued the SAFE Circular 19, which became effective on June 1, 2015. Pursuant to SAFE Circular 19, foreign-investedenterprises may either continue to follow the current payment-based foreign currency settlement system or choose to follow the “conversion-at-will” systemfor foreign currency settlement. Where a foreign-invested enterprise follows the conversion-at-will system for foreign currency settlement, it may convert partor all of the amount of the foreign currency in its capital account into Renminbi at any time. The converted Renminbi will be kept in a designated accountlabeled as settled but pending payment, and if the foreign-invested enterprise needs to make payment from such designated account, it still needs to gothrough the review process with its bank and provide necessary supporting documents. SAFE Circular 19, therefore, has substantially lifted the restrictions onthe usage by a foreign-invested enterprise of its Renminbi registered capital converted from foreign currencies. According to SAFE Circular 19, suchRenminbi capital may be used at the discretion of the foreign-invested enterprise and SAFE will eliminate the prior approval requirement and only examinethe authenticity of the declared usage afterwards. Nevertheless, foreign-invested enterprises like our PRC subsidiaries are still not allowed to extendintercompany loans to our VIEs. In addition, as SAFE Circular 19 was promulgated recently, there remains substantial uncertainties with respect to theinterpretation and implementation of this circular by relevant authorities. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our CorporateStructure—PRC regulation of loans to, and direct investment in, PRC entities by offshore holding companies and governmental control of currencyconversion may restrict or prevent us from using the proceeds of our equity offerings to make loans to our PRC subsidiaries and VIEs or to make additionalcapital contributions to our PRC subsidiaries, which may materially and adversely affect our liquidity and our ability to fund and expand our business.”Regulations on Dividend DistributionThe principal regulations governing dividend distributions of wholly foreign-owned enterprises include: • the Companies Law (2005, as amended in 2013); • the Wholly Foreign-Owned Enterprise Law (2000); and • the Wholly Foreign-Owned Enterprise Law Implementing Rules (2001).Under these regulations, wholly foreign-owned enterprises in the PRC may pay dividends only out of their accumulated profits as determined inaccordance with PRC accounting standards and regulations. In addition, these wholly foreign-owned enterprises are required to set aside at least 10% of theirrespective accumulated profits each year, if any, to fund certain reserve funds, until the aggregate amount of such fund reaches 50% of its registered capital.Regulations on Offshore Investment by PRC ResidentsOn July 4, 2014, the SAFE promulgated the Notice on Relevant Issues Concerning Foreign Exchange Control of Domestic Residents’ OverseasInvestment and Financing and Roundtrip Investment through Offshore Special Purpose Vehicles, or SAFE Circular No. 37, which replaced the former Noticeon Relevant Issues Concerning Foreign Exchange Administration for PRC Residents to Engage in Financing and Inbound Investment via Overseas SpecialPurpose Vehicles (generally known as SAFE Circular No. 75) promulgated by the SAFE on October 21, 2005. 57Table of ContentsSAFE Circular No. 37 requires PRC residents to register with local branches of SAFE in connection with their direct establishment or indirect control ofan offshore entity, for the purpose of overseas investment and financing, with such PRC residents’ legally owned assets or equity interests in domesticenterprises or offshore assets or interests, which is referred to in SAFE Circular No. 37 as a “special purpose vehicle.” SAFE Circular No. 37 further requiresamendment to the registration in the event of any significant changes with respect to the special purpose vehicle, such as an increase or decrease of capitalcontributed by PRC residents, share transfer or exchange, merger, division or other material events. In the event that a PRC resident holding interests in aspecial purpose vehicle fails to complete the required SAFE registration, the PRC subsidiaries of that special purpose vehicle may be prohibited from makingprofit distributions to the offshore parent and from carrying out subsequent cross-border foreign exchange activities and the special purpose vehicle may berestricted in its ability to contribute additional capital into its PRC subsidiaries. Furthermore, failure to comply with the various SAFE registrationrequirements described above could result in liability under PRC law for evasion of foreign exchange controls.Currently, all of our shareholders who are PRC residents have registered with the competent local branch of the SAFE with respect to their investmentsin our company as required by SAFE Circular No. 75 and will update their registration filings with the SAFE under SAFE Circular No. 37 when there are anychanges that should be registered under SAFE Circular No. 37.Regulations on Employee Stock Options PlansIn December 2006, the PBOC promulgated the Administrative Measures of Foreign Exchange Matters for Individuals, setting forth the respectiverequirements for foreign exchange transactions by individuals (both PRC or non-PRC citizens) under either the current account or the capital account. InJanuary 2007, SAFE issued relevant implementing rules that specified approval requirements for certain capital account transactions, such as a PRC citizen’sparticipation in employee stock ownership plans or share option plans of an overseas publicly listed company. In February 2012, SAFE promulgated theStock Option Notice that supersedes the requirements and procedures for the registration of PRC resident individuals’ participation in stock incentive plansset forth by certain rules promulgated by SAFE in March 2007. The purpose of the Stock Option Notice is to regulate the foreign exchange administration ofPRC resident individuals who participate in employee stock holding plans and share option plans of overseas listed companies.According to the Stock Option Notice, if a PRC resident individual participates in any employee stock incentive plan of an overseas listed company, aPRC domestic qualified agent appointed through the PRC subsidiary of such overseas listed company must, among other things, file, on behalf of suchindividual, an application with SAFE or its local counterpart to obtain approval for an annual allowance with respect to the purchase of foreign exchange inconnection with stock holding or share option exercises. With the approval from SAFE or its local counterpart, the PRC domestic qualified agent shall open aspecial foreign exchange account at a PRC domestic bank to hold the funds required in connection with the stock purchase or option exercise, any returnedprincipal or profits upon sales of shares, any dividends issued on the stock and any other income or expenditures approved by SAFE or its local counterpart.Under the Foreign Currency Administration Rules, as amended, the foreign exchange proceeds of domestic entities and individuals can be remittedinto China or deposited abroad, subject to the terms and conditions to be issued by SAFE. However, the implementing rules in respect of depositing theforeign exchange proceeds abroad have not been issued by SAFE. The foreign exchange proceeds from the sales of shares can be converted into RMB ortransferred to such individuals’ foreign exchange savings account after the proceeds have been remitted back to the special foreign exchange account openedat the PRC domestic bank. If share options are exercised in a cashless exercise, the PRC domestic individuals are required to remit the proceeds to specialforeign exchange accounts.Many issues with respect to the Stock Option Notice require further interpretation. We and our PRC employees who participate in an employee stockincentive plan are subject to the Stock Option Notice as we are an overseas listed company. We have registered with the local counterparts of SAFE for ourPRC resident employees who participate in our share incentive plans, as required under the Stock Option Notice and relevant rules. If we or our PRCemployees fail to comply with the Stock Option Notice, we and our PRC employees may face sanctions imposed by the PRC foreign exchange authority orany other PRC government authorities, including restrictions on foreign currency conversions and additional capital contribution to our PRC subsidiaries. 58Table of ContentsIn addition, the SAT has issued circulars concerning employee share options. Under these circulars, our employees working in China who exerciseshare options will be subject to PRC individual income tax. Our PRC subsidiary has obligations to file documents related to employee share options withrelevant tax authorities and withhold the individual income taxes of employees who exercise their share options. If our employees fail to pay and we fail towithhold their income taxes, we may face sanctions imposed by tax authorities or any other PRC government authorities. See “Item 3. Key Information—D.Risk Factors—Risks Related to Doing Business in China—Failure to comply with PRC regulations regarding the registration requirements for employeeshare ownership plans or share option plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.”Regulation on EmploymentPursuant to the PRC Labor Law and the PRC Labor Contract Law, employers must execute written labor contracts with full-time employees. Allemployers must compensate their employees with wages equal to at least the local minimum wage standards. All employers are required to establish a systemfor labor safety and sanitation, strictly abide by state rules and standards and provide employees with workplace safety training. Violations of the PRC LaborContract Law and the PRC Labor Law may result in the imposition of fines and other administrative liabilities.In addition, employers in China are obliged to provide employees with welfare schemes covering pension insurance, unemployment insurance,maternity insurance, work-related injury insurance, medical insurance and housing funds.Regulations on Concentration in Merger and Acquisition TransactionsThe M&A Rules established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time-consuming and complex. These rules require, among other things, that the Ministry of Commerce be notified in advance of any change-of-control transactionin which a foreign investor will take control of a PRC domestic enterprise or a foreign company with substantial PRC operations, if certain thresholds underthe Provisions on Thresholds for Prior Notification of Concentrations of Undertakings issued by the State Council on August 3, 2008 are triggered.Complying with these requirements could affect our ability to expand our business or maintain our market share. See “Item 3. Key Information—D.Risk Factors—Risks Related to Doing Business in China—Certain regulations in the PRC may make it more difficult for us to pursue growth throughacquisitions.” 59Table of ContentsC.Organizational StructureThe following diagram illustrates our corporate structure, including our principal subsidiaries and VIEs, as of the date of this annual report: 60Table of Contents (1)The three individuals are James Zhi Qin, our director and chief executive officer, Xiang Li, our director, and Zheng Fan, our vice president. Each ofthese three individuals is also a beneficial owner of our company and a PRC citizen. James Zhi Qin, Xiang Li and Zheng Fan hold 8%, 68% and 24%,respectively, of the equity in each of Autohome Information, Shanghai Advertising and Guangzhou Advertising.(2)The two individuals are James Zhi Qin and Zheng Fan, who each holds 50% of the equity in Shengtuo Hongyuan. D.Property, Plants and EquipmentOur corporate headquarters is located in Beijing, China, where we lease office space with an area of approximately 21,562 square meters. We generallymake rental payments on a monthly basis. In addition, as of December 31, 2015, we also leased office space in 78 cities for our representative offices,including regional operation centers in Shanghai, Guangzhou and Tianjin in China. We believe that our existing facilities are generally adequate to meet ourcurrent needs, but we expect to seek additional space as needed to accommodate future growth.Our servers are primarily hosted at internet data centers owned by major domestic internet data center providers. The hosting services agreementstypically have a term of one year. We believe that our current facilities are adequate and that we will be able to obtain additional facilities, principallythrough leasing, to accommodate any future expansion plans.ITEM 4A. UNRESOLVED STAFF COMMENTSNone.ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTSYou should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financialstatements and the related notes included elsewhere in this annual report. This discussion contains forward-looking statements that involve risks anduncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as aresult of various factors, including those set forth under “Risk Factors” and elsewhere in this annual report. A.Operating ResultsOverviewWe are the leading online destination for automobile consumers in China. Through our two websites, autohome.com.cn and che168.com, and ourmobile applications, we deliver comprehensive, independent and interactive content to automobile buyers and owners. We generate revenues from onlineadvertising services, dealer subscription services and new vehicle transaction business. Our advertisers consist primarily of automakers and dealers, withautomakers contributing a substantial majority of our total advertising services revenues. In each of 2013, 2014 and 2015, we provided advertising servicesto 75, 85 and 87 automakers operating in China, respectively. We also provided dealer subscription services to 10,617, 17,779 and 21,705 dealer subscribersin 2013, 2014 and 2015, respectively. Our new vehicle transaction business includes direct vehicle sales and commission-based services facilitatingtransactions.Our net revenues increased from RMB1,216.5 million in 2013 to RMB2,132.9 million in 2014 and RMB3,464.0 million(US$534.7 million),representing a CAGR of 68.7%. Our net income increased from RMB456.2 million in 2013 to RMB748.7 million in 2014 and RMB990.6 million (US$152.9million) in 2015, representing a CAGR of 47.4%. 61Table of ContentsGeneral Factors Affecting Our Results of OperationsOur business and results of operations are significantly affected by China’s overall economic conditions and the general trends in the automotiveindustry, especially new automobile sales in China. Economic growth in China has contributed to an increase in household disposable income and improvedthe availability of financing for automobile purchases. These factors, coupled with increased production capacity and lower import tariffs, past governmentalincentives designed to encourage automobile purchases and the decreasing cost of new automobiles, have contributed to the growth of the number of newautomobiles sold in China. Although the automotive industry has benefited from China’s overall favorable policies, some local governments have imposedrestrictions on automobile registrations to curb traffic congestion and environment pollution in urban centers. If such regulations slow the growth rate of newautomobile sales in China, the demand for our services would likely reduce. If overall advertising expenditures by automakers and automobile dealers orautomobile transaction volume decrease, our business and results of operations may be adversely affected.In addition, our business and results of operations may be affected by our user reach and engagement. Automaker and dealer advertisers, whichcontribute a substantial portion of our revenues, choose to advertise on our websites and mobile applications in significant part due to our leading marketposition in the online automotive advertising industry. We anticipate that our ability to continue to attract a large and growing user base and maintain a highlevel of user engagement will affect our ability to attract advertisers and dealer subscribers to our websites and in turn, our ability to generate sales leads.Finally, our business and results of operations may be affected by the development of e-commerce in China and consumers’ acceptance of online automobilepurchases.Specific Factors Affecting Our Results of OperationsWhile our business and results of operations are generally affected by China’s overall economic conditions, the general trends in China’s automotiveindustry and our user reach and engagement, our results of operations are more directly affected by the specific financial factors set forth below.Net RevenuesWe primarily generate our net revenues from selling online advertising services and dealer subscription services. We sell our advertising servicesprimarily to automakers and dealers, with automakers contributing a substantial majority of our advertising services revenues. As is customary in China, wesell our advertising services primarily through third-party advertising agencies while we consider automaker and dealer advertisers to be our end-customers.Consistent with common practice in the advertising industry in China, we offer rebates to advertising agencies. We also provide cash incentives toautomakers and automobile dealers who participate in various incentive programs on our online transaction platform. Our net revenues are presented net ofrebates to advertising agencies and cash incentives to automakers and automobile dealers. We sell our dealer subscription services to automobile dealers on afixed-fee subscription basis.We also generate an insignificant portion of our net revenues from our transaction business. We record revenues from direct sales on gross basis whenvehicles are delivered and title has passed to the consumers. In addition, we earn commissions from automakers for new vehicle transactions facilitated onAutohome Mall pursuant to commission-based service arrangements with automakers.The following table sets forth the principal components of our net revenues in absolute amounts and as percentages of our total net revenues for theyears presented: For the Year Ended December 31, 2013 2014 2015 RMB % RMB % RMB US$ % (in thousands, except percentages) Net revenues: Advertising services 894,937 73.6% 1,499,516 70.3% 2,400,023 370,500 69.3% Dealer subscription services 321,611 26.4 633,433 29.7 1,063,952 164,246 30.7 Total net revenues 1,216,548 100.0% 2,132,949 100.0% 3,463,975 534,746 100.0% Advertising Services RevenuesWe generate advertising services revenues primarily from automakers. In each of 2013, 2014 and 2015, 75, 85 and 87 automakers operating in Chinapurchased advertising services from us. As a result of our high penetration in the automaker market, we believe that our future automaker advertising servicesrevenue growth will be driven primarily by automakers’ increased advertising spending on our websites and mobile applications as they continue to shifttheir advertising budgets from traditional media to online media. 62Table of ContentsIncreased spending will be driven primarily by a combination of (i) our ability to increase advertising volume, either due to the availability ofadditional advertising locations as we expand our service offerings or due to higher sell-through rates, which is calculated as the percentage of advertisinglocations actually sold over total advertising locations available for sale in a given period and (ii) our ability to increase our pricing, as measured by price perlocation per day, as our user reach continues to expand, thereby enhancing the effectiveness of the services we offer. As is customary in China’s onlineadvertising market, we use a “cost per time” pricing model to price our online advertising services by charging our advertisers on a daily basis for anadvertisement placed in a given location on our websites. We expect that this cost-per-time model will continue to be our primary pricing model in the nearfuture. However, as we continue to grow our user base and enhance user engagement, we intend to explore “cost per thousands impressions,” “cost per lead”and other performance-based pricing models.Revenues from dealer advertising services are generated from (i) advertising services sold to individual dealer advertisers, (ii) regional marketingcampaigns conducted by certain automobile brands’ regional offices and (iii) our transaction business. Revenues from dealer advertising services accountedfor 21.3%, 29.4% and 34.3% of our advertising services revenues in 2013, 2014 and 2015, respectively. We believe that our dealer advertising servicesrevenues will continue to grow in absolute amounts in the near future, driven mainly by (i) the increase in the advertising budgets that automakers allocate totheir dealers and (ii) our ability to increase our “share of wallet” relative to other online medias as we continue to expand into new geographical markets andpenetrate deeper into existing markets to increase our customer base of automobile dealers. Our transaction business contribute a new growth driver as part ofthe dealer advertising revenues, including direct sales revenues and commission-based revenues.Dealer Subscription ServicesWe generate dealer subscription services revenues through the sale of various subscription services packages at different prices, which enable dealers tomarket their vehicle inventories on our websites and mobile applications. All of our dealer subscription services are sold on a quarterly or annual fixed-feebasis.We offer basic automobile listing services free of charge to all of our registered dealers. We had 26,190 registered dealers as of December 31, 2015,compared with 24,562 and 23,897 registered dealers as of December 31, 2014 and 2013, respectively. Our dealer subscribers are registered dealers that havepurchased subscription packages. We provide our dealer subscribers with additional tools and features to enable them to more effectively market theirinventories on our websites and mobile applications. Our dealer subscribers grew from 10,617 in 2013 to 17,779 in 2014 and 21,705 in 2015. Our dealersubscription services revenues accounted for 26.4%, 29.7% and 30.7% of our net revenues in 2013, 2014 and 2015, respectively. We believe that our dealersubscription services revenues will continue to grow in the near future, driven by our ability to subsequently convert registered dealers into dealer subscribersand command higher fees for different subscription packages by providing more value-added services to our dealer subscribers.Cost of RevenuesCost of revenues refers primarily to (i) content-related costs and others, (ii) depreciation and amortization expenses, (iii) bandwidth and internet datacenter (“IDC”) costs and (iv) value-added tax (“VAT”) and surcharges. The following table sets forth the principal components of our cost of revenues inabsolute amounts and as a percentage of our total net revenues for the years indicated: For the Year Ended December 31, 2013 2014 2015 RMB % RMB % RMB US$ % (in thousands, except percentages) Cost of revenues: Content-related costs and others(1) 95,987 7.9% 127,929 6.0% 298,160 46,027 8.6% Depreciation and amortization expenses 26,439 2.2 31,703 1.5 43,160 6,663 1.3 Bandwidth and IDC costs 21,047 1.7 30,713 1.4 38,893 6,004 1.1 VAT and surcharges 108,763 8.9 191,153 9.0 288,908 44,600 8.3 Total cost of revenues 252,236 20.7% 381,498 17.9% 669,121 103,294 19.3% (1)Including share-based compensation expenses of RMB6.5 million for 2013, RMB8.0 million for 2014 and RMB6.9 million (US$1.1 million) for 2015,respectively. 63Table of ContentsContent-related Costs and Others. Content-related costs and others are costs directly related to creating and editing the professionally producedcontent and organizing and maintaining user generated content on our websites and mobile applications and new vehicle transaction business costs.Content-related costs mainly include salaries and benefits, toll free telephone charges, travel and office expenses of our editorial personnel, expenses weincur in the execution of the offline portion of our advertisers’ online promotions and expenses we pay to third parties for creating and publishing certain richmedia content displayed on our websites. New vehicle transaction business costs primarily include cost of vehicle purchases and other directly attributablecosts. Rebates relating to new vehicles purchased but still held by us as of the balance sheet date are recorded as a reduction to cost of inventories whilerebates relating to new vehicles purchased and sold during the reporting period are recorded as a reduction to cost of revenues. We expect our content-relatedcosts and others will continue to increase primarily due to our business growth. In addition, as a result of our adoption of the 2011 Share Incentive Plan andthe 2013 Share Incentive Plan, our content-related costs and others in subsequent periods include share-based compensation expenses related to our editorialpersonnel.Depreciation and Amortization Expenses. A substantial majority of our amortization expenses relate to the amortization of intangibles includingtrademarks and customer relationships that we acquired in connection with the acquisitions of Cheerbright, China Topside and Norstar in June 2008, shortlyafter the inception of our company. Depreciation expenses are related to servers and other equipment that are directly related to our revenue-generatingbusiness activities and leasehold improvements. We expect our amortization expenses will decrease after the end of the estimated useful lives of certainintangible assets, while depreciation expenses will increase as we continue to invest in our business.Bandwidth and IDC Costs. Bandwidth and IDC costs consist of fees that we pay to telecommunication carriers and other service providers fortelecommunication services and for hosting our servers at their internet data centers, as well as fees we pay to our content delivery network service providerfor the distribution of our content. Our bandwidth and IDC costs continued to increase in subsequent periods as our user traffic continued to increase and werequired more high quality bandwidth to support user traffic growth and improve our users’ experience.VAT and Surcharges. After VAT reform in 2012, our advertising services and dealer subscription services were subject to 6% VAT rate, and advertisingservices also subject to the cultural construction fee. Our dealer subscription service was sold in the form of software products starting from October 2014 andsubject to 17% VAT rate. Since November 2014, Beijing Prbrownies Software Co., Ltd. was entitled to a 14% VAT refund on the total VAT payable at therate of 17% after the registration of its software resolutions with the relevant authority. Our direct sales of vehicles were subject to 17% VAT rate. As a resultof the above, our overall VAT and surcharges as a percentage of our total net revenues was 8.9% in 2013, 9.0% in 2014 and decreased to 8.3% in 2015.Operating ExpensesOur operating expenses consist of sales and marketing expenses, general and administrative expenses and product development expenses. Thefollowing 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, 2013 2014 2015 RMB % RMB % RMB US$ % (in thousands, except percentages) Operating expenses: Sales and marketing expenses(1) 245,228 20.2% 559,070 26.2% 1,127,484 174,054 32.6% General and administrative expenses(2) 82,529 6.8 129,751 6.1 193,655 29,895 5.6 Product development expenses(3) 81,651 6.7 158,395 7.4 273,908 42,284 7.9 Total operating expenses 409,408 33.7% 847,216 39.7% 1,595,047 246,233 46.0% 64Table of Contents (1)Including share-based compensation expenses of RMB4.4 million for 2013, RMB14.6 million for 2014 and RMB36.6 million (US$5.6 million) for2015, respectively.(2)Including share-based compensation expenses of RMB11.7 million for 2013, RMB20.6 million for 2014 and RMB40.1 million (US$6.2 million) for2015, respectively.(3)Including share-based compensation expenses of RMB3.0 million for 2013, RMB13.4 million for 2014 and RMB24.3 million (US$3.7 million) for2015, respectively.Sales and Marketing Expenses. Our sales and marketing expenses primarily consist of the marketing expenses incurred in connection with promotingour brands through search engines, mobile platforms and navigation sites, sales promotion activities and salaries and benefits and sales commissions for oursales and marketing personnel. Our sales and marketing expenses also include office and travel-related expenses and business development expensesassociated with our sales and marketing activities. We expect that our sales and marketing expenses will continue to increase as we increase traffic on ourwebsites and mobile applications, enlarge our sales force to expand our coverage and develop our transaction business initiatives to realize our value as atransaction platform.General and Administrative Expenses. Our general and administrative expenses primarily consist of personnel-related expenses for management andadministrative personnel and professional service fees. We expect that our general and administrative expenses will increase in the future as we expand ourbusiness.Product Development Expenses. Our product development expenses primarily consist of personnel-related expenses associated with the developmentof new technologies and products as well as enhancement of our websites. We expect that our product development expenses will increase as we expand ourbusiness, develop new features and functionalities and increase the accessibility of our websites, mobile applications and the transaction platform.TaxationCayman IslandsWe are incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, we are not subject to income or capital gains tax. Inaddition, dividend payments are not subject to withholding tax in the Cayman Islands.British Virgin IslandsCheerbright is a company incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, Cheerbright is not subject toincome or capital gains tax. In addition, dividend payments are not subject to withholding tax in the British Virgin Islands.Hong KongAutohome HK, Autohome Media, Autohome E-commerce Hong Kong Limited, Autohome Link Hong Kong Limited and Autohome Financing HongKong Limited are incorporated in Hong Kong. Companies incorporated and registered in Hong Kong are subject to Hong Kong profits tax on the taxableincome as reported in their respective statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is16.5% in Hong Kong. For 2013, 2014 and 2015, we did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from orearned in Hong Kong during these periods. Under the Hong Kong tax law, Autohome HK, Autohome Media, Autohome E-commerce Hong Kong Limited,Autohome Link Hong Kong Limited and Autohome Financing Hong Kong Limited are exempted from income tax on their foreign-derived income and thereare no withholding taxes in Hong Kong on remittance of dividends. 65Table of ContentsPRCOur PRC subsidiaries and VIEs are subject to PRC enterprise income tax, or EIT, on the taxable income in accordance with the relevant PRC incometax laws.Under the PRC Enterprise Income Tax Law and its implementation rules, both of which became effective on January 1, 2008, a uniform 25% enterpriseincome tax rate is generally applicable to both foreign-invested enterprises and domestic enterprises, unless they qualify for certain exceptions.In 2010, Autohome WFOE was recognized as an HNTE, effective 2010 and was eligible for a 15% preferential enterprise income tax rate effective from2010 through 2012. The HNTE qualification is subject to an annual evaluation and a three-year review by the relevant authorities in China. We haveobtained renewal of the HNTE qualification through 2015. However, should we lose this qualification for any reason, Autohome WFOE will no longer enjoythe 15% preferential tax rate, and the applicable enterprise income tax rate may increase to up to 25%. Beijing Autohome Technologies was recognized as anHNTE in July 2015 and therefore was eligible for the preferential 15% enterprise income tax rate from 2015 to 2017 upon their filing with the relevant taxauthority. Beijing Prbrownies was recognized as an HNTE on February 29, 2016, qualifying it for the preferential 15% enterprise income tax rate from 2015to 2017 upon its filing with the relevant tax authority.Our remaining PRC subsidiaries and all the VIEs were subject to EIT at a rate of 25% for 2013, 2014 and 2015.Under the PRC Enterprise Income Tax Law, an enterprise established outside of the PRC with “de facto management bodies” located within the PRC isconsidered a PRC resident enterprise and therefore will be subject to a 25% EIT on its global income. The implementation rules define “de facto managementbodies” as “establishments that carry out substantial and overall management and control over the manufacturing and business operations, personnel,accounting, properties, etc. of an enterprise.” In addition, according to the Notice Regarding the Determination of Chinese-Controlled Offshore IncorporatedEnterprises as PRC Tax Resident Enterprises on the Basis of De Facto Management Bodies issued by State Administration of Taxation, or SAT Circular 82,on April 22, 2009, a Chinese-controlled enterprise established outside of China is treated as a PRC resident enterprise with “de facto management bodies”located in the PRC for tax purposes where all of the following requirements are satisfied: (a) the senior management and core management departments incharge of its daily production or business operations are located in the PRC; (b) its financial and human resource decisions are subject to determination orapproval by persons or bodies in the PRC; (c) its major assets, accounting books, company seals, and minutes and files of its board and shareholders’meetings are located or kept in the PRC; and (d) more than half of the enterprise’s board members with voting rights or senior management habitually residein the PRC. Despite the uncertainties resulting from limited PRC tax guidance on the issue, we do not believe that our legal entities organized outside of thePRC constitute PRC resident enterprises under the PRC Enterprise Income Tax Law. However, if we are considered a PRC resident enterprise and earn incomeother than dividends from our PRC subsidiaries, a 25% enterprise income tax on our global income could significantly increase our tax burden and materiallyand adversely affect our cash flow and profitability.Further, the PRC Enterprise Income Tax Law and the implementation rules provide that an income tax rate of 10% may be applicable to China-sourcedincome of foreign enterprises, such as dividends paid by PRC subsidiaries to their overseas parent that is not a PRC resident enterprise, which (a) do not havean establishment or place of business in the PRC or (b) have an establishment or place of business in the PRC but the relevant income is not effectivelyconnected with the establishment or place of business, unless there are applicable treaties that reduce such rate. The implementation rules of the new PRCEnterprise Income Tax Law provide that (a) if the enterprise that distributes dividends is domiciled in the PRC, or (b) if gains are realized from transferringequity interests of enterprises domiciled in the PRC, then such dividends or capital gains are treated as China-sourced income. It is not clear how “domicile”may be interpreted under the PRC Enterprise Income Tax Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore, ifwe are considered as a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders or ADS holders as well as gainsrealized by such shareholders or ADS holders from the transfer of our shares or ADSs may be regarded as China-sourced income and as a result become subjectto PRC withholding tax at the rate of 10%, subject to reduction by an applicable treaty. See “Item 3. Key Information—D. Risk Factors—Risks Related toDoing Business in China—Our global income and the dividends that we may receive from our PRC subsidiaries, dividends distributed to our non-PRCshareholders and ADS holders, and gains recognized by such shareholders or ADS holders, may be subject to PRC taxes under the Enterprise Income TaxLaw, which would have a material adverse effect on our results of operations.” 66Table of ContentsCritical Accounting PoliciesWe prepare our financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect thereported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the end of each reporting period and the reported amount ofrevenue and expenses during each reporting period. We evaluate these estimates and assumptions based on historical experience, knowledge and assessmentof current business and other conditions and expectations that we believe to be reasonable under the circumstances. Since the use of estimates is an integralcomponent of the financial reporting process, actual results could differ from these estimates and assumptions.Some of our accounting policies require higher degrees of judgment than others in their application. When reviewing our consolidated financialstatements, you should consider (a) our selection of critical accounting policies, (b) the judgment and other uncertainties affecting the application of suchpolicies 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 2013, 2014 and 2015. We consider the policies discussed below to be critical to an understanding ofour consolidated financial statements as their application places significant demands on the judgment of our management. We believe the following criticalaccounting policies are the most significant to the presentation of our financial statements and some of which may require the most difficult, subjective andcomplex judgments. They should be read in conjunction with our consolidated financial statements, the risks and uncertainties of which are described under“Item 3. Key Information—D. Risk Factors” and other disclosures included in this annual report.Revenue RecognitionOur revenue is primarily derived from online advertising and dealer subscription services. Revenue is recognized only when the price is fixed ordeterminable, persuasive evidence of an arrangement exists, the service is performed and collectability of the related fee is reasonably assured based on theguidance in ASC 605, Revenue Recognition.Contracts are signed to establish significant terms such as the price and online advertising services to be provided. We consider the price for ourservices to be fixed and determinable when we and our customers have signed the contracts. We assess the creditworthiness of our customers prior to signingthe contracts to ensure collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied arerecorded as deferred revenue.Advertising servicesWe provide online advertising services to automakers, dealers and agency companies that represent automakers and automobile dealers. The majorityof our online advertising service arrangements involve multiple deliverables such as banner advertisements, links and logos, other media insertions andpromotional activities that are delivered over different periods of time. Multiple contracts with the same customers are accounted for as separate arrangementsif the contracts are not linked together in a single transaction. Historically, we have not entered into multiple contracts with the same counterparty thatshould be combined and accounted for as a single arrangement.In determining our best estimated selling price for each deliverable, we considered our overall pricing model and objectives, as well as market orcompetitive conditions that may impact the price at which we would transact if the deliverable were sold regularly on a standalone basis. We monitor theconditions that affect our determination of selling price for each deliverable and reassess such estimates periodically. Revenue is recognized ratably when theadvertisements are published over the stated display period in the case of websites or when the services have been rendered in the case of promotionalactivities. The amount recognized is limited to the amount that is not contingent upon the delivery of additional deliverables or meeting other specifiedperformance conditions. 67Table of ContentsNew vehicle transaction businessThe new vehicle transaction business launched in 2015 primarily includes direct vehicle sales and commission-based services to facilitate transactionson the Autohome Mall platform. For direct vehicle sales, we recognize revenue on a gross basis as we act as the principal, we are the primary obligor of thesales arrangements and are subject to inventory risk. Revenue from direct vehicle sales is recognized when a sales contract has been executed and the vehiclehas been delivered. Under the commission-based service arrangements, the Company earns commission for the new vehicle transactions facilitated throughour Autohome Mall platform. Commission revenue is recognized after the vehicles are delivered to customers. For the year ended December 31, 2015, therevenues from new vehicle transaction business accounted for 5.2% of our consolidated net revenues and therefore, were not separately disclosed as aseparate line item but included in advertising services in the consolidated statements of comprehensive income.Dealer subscription servicesWe provide subscription services to automakers, dealers and agency companies that represent automakers and automobile dealers. We make availablethroughout the subscription period a webpage linked to our websites and mobile applications where the dealers can publish information such as the pricingof their products, locations and addresses and other related information. Revenue is recognized ratably as services are provided over the subscription period.Rebates and cash incentives provided to customersWe provide rebates to agency companies based on cumulative annual advertising and service volume or surrounding occasional activities. Weestimate our obligations under such agreements based on an evaluation of the likelihood of the agency companies’ achievement of the advertising andservice volume targets, giving consideration to the actual activity during the incentive period and, as appropriate, evaluation of the agency companies’purchase trends and history.We also provide cash incentives to automakers and automobile dealers who participated in various incentive programs on our online transactionplatform. The cash incentives are accounted for as a reduction of revenue in accordance with ASC 605-50, “Revenue Recognition: Customer Payments andIncentives”.Therefore, rebates and cash incentives are recorded as a reduction of revenue in the period revenue is recognized in the consolidated financialstatements. We have estimated and recorded rebates and cash incentives to agency companies, dealers and automakers cumulatively amounting toRMB231.1 million, RMB395.2 million and RMB578.5 million (US$89.3 million) for 2013, 2014 and 2015, respectively.Income taxesWe account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the differencebetween 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 areexpected 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 thatsome portion, or all, of the deferred tax assets will not be realized. The effect of a change in tax rates on deferred taxes is recognized in income in the periodthat includes the enactment date.We apply ASC 740, Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a taxposition is required to meet before being recognized in the financial statements. We have recorded unrecognized tax benefits in the other liabilities line itemin the accompanying consolidated balance sheets. We have elected to classify interest and penalties related to unrecognized tax benefits, if and whenrequired, 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 affectedby changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute oflimitations. The actual benefits ultimately realized may differ from our estimates. As each audit is concluded, adjustments, if any, are recorded in ourconsolidated financial statements. Additionally, in future periods, changes in facts and circumstances, and new information may require us to adjust therecognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in theperiod in which they occur. 68Table of ContentsAccounts Receivable and Allowance for Doubtful AccountsAccounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded in the period when a loss is probable based onan assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable balance iswritten off after all collection efforts have ceased.InventoriesInventories consist of new vehicles held for sale, stated at the lower of cost or market value using the specific identification method. Amounts areremoved from inventories using the specific identification method. Our purchase arrangements with certain automakers entitle us to receive a specifiedamount of cash rebates if certain conditions are met during the stated rebate periods. We account for these rebates in accordance with ASC sub-topic 605-50,Revenue Recognition: Customer Payments and Incentives. Rebates relating to new vehicles purchased but still held by us as of the balance sheet date arerecorded as a reduction to cost of inventories while rebates relating to new vehicles purchased and sold during the reporting period are recorded as areduction to cost of revenues.GoodwillOur goodwill is related to the acquisition of Cheerbright, China Topside, and Norstar, representing the excess of the purchase price over the amountsassigned to the fair value of the assets acquired and the liabilities assumed. In accordance with ASC 350, Goodwill and Other Intangible Assets, recordedgoodwill amounts are not amortized, but rather are tested for impairment annually, or more frequently if there are indicators of impairment present.Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an eventoccurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events orcircumstances include a significant change in our stock prices, business environment, legal factors, financial performances, competition, or events affectingour reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets andliabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair valueof a reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which isdependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, anddetermination of our weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based onoperating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwillimpairment for the reporting unit.We have the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASU No. 2011-08, or ASU 2011-08, Testing Goodwill for Impairment. Determining the reporting units of the Company begins at the operating segment level, and weconcluded that we have one reporting unit as of December 31, 2013, 2014 and 2015. We evaluated all relevant factors, weighed all factors in their entiretyand concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing ongoodwill was unnecessary as of December 31, 2015. No impairment loss was recorded for any of the years presented.If we reorganize our reporting structure in a manner that changes the composition of one or more of our reporting units, goodwill will be reassignedbased on the relative fair value of each of the affected reporting units. 69Table of ContentsShare-based CompensationWe account for share-based awards granted to employees under ASC 718, Compensation—Stock Compensation, which requires that share-basedawards granted to employees be measured based on the grant date fair value and recognized as compensation expense over the requisite service period (whichis generally the vesting period) in the consolidated statements of comprehensive income. We have elected to recognize compensation expense using thestraight-line method for all share-based awards granted with service conditions that have a graded vesting schedule. ASC 718 requires forfeitures to beestimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates.Forfeiture rates are estimated based on historical and future expectations of employee turnover rates and are adjusted to reflect future changes incircumstances 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 theperiod 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 stockoptions granted to employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees.Subsequent to our initial public offering, fair value of the ordinary shares will be the price of our publicly traded shares.Results of OperationsThe 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, 2013 2014 2015 RMB % RMB % RMB US$ % (in thousands, except percentages) Net revenues Advertising services 894,937 73.6% 1,499,516 70.3% 2,400,023 370,500 69.3% Dealer subscription services 321,611 26.4 633,433 29.7 1,063,952 164,246 30.7 Total net revenues 1,216,548 100.0 2,132,949 100.0 3,463,975 534,746 100.0 Cost of revenues(1) (252,236) (20.7) (381,498) (17.9) (669,121) (103,294) (19.3) Gross Profit 964,312 79.3 1,751,451 82.1 2,794,854 431,452 80.7 Operating expenses Sales and marketing expenses(1) (245,228) (20.2) (559,070) (26.2) (1,127,484) (174,054) (32.6) General and administrative expenses(1) (82,529) (6.8) (129,751) (6.1) (193,655) (29,895) (5.6) Product development expenses(1) (81,651) (6.7) (158,395) (7.4) (273,908) (42,284) (7.9) Operating profit 554,904 45.6 904,235 42.4 1,199,807 185,219 34.6 Interest income 11,082 0.9 34,682 1.6 63,218 9,759 1.8 Interest expense (414) (0.0) — — — — — Earnings from equity method investments — — — — 102 16 0.0 Other income, net 2,884 0.2 2,544 0.1 13,064 2,017 0.4 Income before income taxes 568,456 46.7 941,461 44.1 1,276,191 197,011 36.8 Income tax expense (112,294) (9.2) (192,781) (9.0) (285,542) (44,080) (8.2) Net income 456,162 37.5% 748,680 35.1% 990,649 152,931 28.6% 70Table of Contents (1)Including share-based compensation expenses as follows: For the Year Ended December 31, 2013 2014 2015 RMB % RMB % RMB US$ % (in thousands, except percentages) Allocation of Share-Based Compensation Expenses Cost of revenues 6,534 0.5% 8,048 0.4% 6,939 1,071 0.2% Sales and marketing expenses 4,375 0.4 14,644 0.7 36,584 5,648 1.1 General and administrative expenses 11,738 1.0 20,557 1.0 40,142 6,197 1.1 Product development expenses 2,961 0.2 13,417 0.6 24,280 3,748 0.7 Total share-based compensation expenses 25,608 2.1% 56,666 2.7% 107,945 16,664 3.1% Year Ended December 31, 2015 Compared to Year Ended December 31, 2014Net Revenues. Our net revenues increased by 62.4% from RMB2,132.9 million in 2014 to RMB3,464.0 million (US$534.7 million) in 2015. Thisincrease was due to increases in both our advertising services revenues and our dealer subscription services revenues.Advertising services. Our advertising services revenues increased by 60.1% from RMB1,499.5 million in 2014 to RMB2,400.0 million (US$370.5million) in 2015. This increase was due to our increased revenues from both automaker advertisers and dealer advertisers, of which transaction businesscontributed a new growth driver as part of the dealer advertising revenues. Revenues from our automaker advertisers and dealer advertisers accounted for65.7% and 34.3%, respectively, of our total advertising services revenues in 2015. Revenues from our automaker advertisers and dealer advertisers accountedfor 70.6% and 29.4%, respectively, of our total advertising services revenues in 2014. In 2013, 2014 and 2015, 75, 85 and 87 automakers operating in Chinaused our advertising services, respectively. In 2014 and 2015, dealers involving over 100 brands used our advertising services, which include the regionalmarketing campaigns conducted by certain automobile brands’ regional offices.The increase in revenues from our automaker advertisers was attributable to a 45.7% increase in average revenues per automaker advertiser fromRMB12.4 million in 2014 to RMB18.1 million (US$2.8 million) in 2015, as automakers continued to allocate more of their advertising budgets toAutohome’s online advertising channels. The increase in dealer advertising services revenues was mainly due to (i) the Company’s new vehicle transactionbusiness, which is primarily composed of direct vehicle sales and commission-based services facilitating transactions through our platform; and (ii) theincrease in the volume of pure advertising purchased by the Company’s growing base of paying dealers to drive better performance. For the year endedDecember 31, 2015, the revenue from new vehicle transaction business accounted for 7.5% of our total advertising services revenues. If we exclude this, theaverage revenue per vehicle brand of dealer advertiser increased by 45.4% from RMB4.1 million in 2014 to RMB6.0 million (US$0.9 million) in 2015.Dealer subscription services. Dealer subscription services revenues increased by 68.0% from RMB633.4 million in 2014 to RMB1,064.0 million(US$164.2 million) in 2015. The increase in dealer subscription services revenues was mainly driven by (i) a 22.1% year-over-year increase in the number ofpaying dealers, which in turn was a result of Autohome’s expansion into new geographic markets, especially within China’s growing tier 3 and 4 cities, aswell as deeper penetration into existing markets; and (ii) a 37.6% increase in average revenue per paying subscriber from RMB35.6 thousand in 2014 toRMB49.0 thousand in 2015, and rates for dealer subscription services as dealers continue to allocate a greater portion of their budgets to the Company’ssubscription services. The Company sold dealer subscription services to 21,705 dealers in 2015, compared with 17,779 dealers in 2014.Cost of Revenues. Our cost of revenues increased by 75.4% from RMB381.5 million in 2014 to RMB669.1 million (US$103.3 million) in 2015,primarily due to increases in content-related costs and others, and VAT and surcharges. 71Table of ContentsContent-related Costs and Others. Our content-related costs and others increased by 133.1% from RMB127.9 million in 2014 to RMB298.2 million(US$46.0 million) in 2015, primarily due to new vehicle transaction business costs and salaries and benefits of our editorial personnel. Our content-relatedcosts included share-based compensation expenses, which decreased from RMB8.0 million in 2014 to RMB6.9 million (US$1.1 million) in 2015.Depreciation and Amortization Expenses. Our depreciation and amortization expenses increased by 36.1% from RMB31.7 million in 2014 toRMB43.2 million (US$6.7 million) in 2015, primarily due to an increase in depreciation expenses related to servers purchased and leasehold improvementalong with business expansion, partially offset by a decrease in amortization of acquired intangible assets, including domain names and licensing agreement.Bandwidth and IDC Costs. Our bandwidth and IDC costs increased by 26.6% from RMB30.7 million in 2014 to RMB38.9 million (US$6.0 million) in2015, primarily due to increased bandwidth and IDC requirements to fulfill the growth of our user traffic and new business.VAT and Surcharges. VAT and related surcharges increased by 51.1% from RMB191.2 million for 2014 to RMB288.9 million (US$44.6 million) for2015, as a result of increased revenues.Operating Expenses. Our operating expenses increased by 88.3% from RMB847.2 million in 2014 to RMB1,595.0 million (US$246.2 million) in2015, primarily due to increases in sales and marketing expenses, product development expenses and general and administrative expenses as the Companyhas been reinvesting for future growth opportunities. As a percentage of net revenues, operating expenses increased from 39.7% in 2014 to 46.0% in 2015.Sales and Marketing Expenses. Our sales and marketing expenses increased by 101.7% from RMB559.1million in 2014 to RMB1,127.5 million(US$174.1 million) in 2015. This increase was primarily due to (i) an increase in marketing expenses in connection with the promotion of the Company’sbrands through search engines, mobile platforms and navigation sites, a 10-year anniversary campaign, and offline promotional activities such as anationwide group-buy campaign and (ii) an increase in salaries and benefits due to an increase in sales and marketing headcount, which is in line with theCompany’s rapid growth. As a percentage of net revenues, sales and marketing expenses increased from 26.2% in 2014 to 32.6% in 2015. Our sales andmarketing expenses in 2015 included share-based compensation expenses of RMB36.6 million (US$5.6 million), compared to RMB14.6 million in 2014.General and Administrative Expenses. Our general and administrative expenses increased by 49.3% from RMB129.8 million in 2014 to RMB193.7million (US$29.9 million) in 2015. This increase was primarily attributable to an increase in salaries and benefits as a result of the growth in general andadministrative headcount, which is in line with the Company’s rapid growth. As a percentage of net revenues, general and administrative expenses decreasedfrom 6.1% in 2014 to 5.6% in 2015. Our general and administrative expenses for 2015 included share-based compensation expenses of RMB40.1 million(US$6.2 million), compared to RMB20.6 million in 2014.Product Development Expenses. Our product development expenses increased by 72.9% from RMB158.4 million in 2014 to RMB273.9 million(US$42.3 million) in 2015. The increase was primarily attributable to an increase in salaries and benefits due to the controlled increase in productdevelopment headcount. As a percentage of net revenues, product development expenses increased from 7.4% in 2014 to 7.9% in 2015. Our productdevelopment expenses for 2015 included share-based compensation expenses of RMB24.3 million (US$3.7 million), compared to RMB13.4 million in 2014.Income before Income Taxes. Our income before income taxes increased by 35.6% from RMB941.5 million in 2014 to RMB1,276.2 million(US$197.0 million) in 2015.Income Tax Expense. We incurred income tax expense of RMB285.5 million (US$44.1 million) in 2015, compared with RMB192.8 million in 2014,primarily due to the growth of our income before income taxes. As a percentage of our income before income taxes, our income tax expenses were 20.5% in2014 and 22.4% in 2015. 72Table of ContentsNet Income. As a result of the foregoing, we had net income of RMB990.6 million (US$152.9 million) in 2015, compared with net income ofRMB748.7 million in 2014.Year Ended December 31, 2014 Compared to Year Ended December 31, 2013Net Revenues. Our net revenues increased by 75.3% from RMB1,216.5 million in 2013 to RMB2,132.9 million in 2014. This increase was due toincreases in both our advertising services revenues and our dealer subscription services revenues.Advertising services. Our advertising services revenues increased by 67.6% from RMB894.9 million in 2013 to RMB1,499.5 million in 2014. Thisincrease was due to our increased revenues from both automaker advertisers and dealer advertisers. Revenues from our automaker advertisers and dealeradvertisers accounted for 70.6% and 29.4%, respectively, of our total advertising services revenues in 2014. Revenues from our automaker advertisers anddealer advertisers accounted for 78.7% and 21.3%, respectively, of our total advertising services revenues in 2013.The increase in revenues from our automaker advertisers was attributable to an increase in average revenues per automaker advertiser, as automakerscontinued to allocate more of their advertising budget to Autohome’s online advertising channels. The increase in dealer advertising services revenues wasmainly due to an increase in the volume of advertising purchased by dealer advertisers as a result of our expansion into new geographic markets and deeperpenetration into existing markets, as well as an increase in the rates for our dealer advertising services.Dealer subscription services. Dealer subscription services revenues increased by 97.0% from RMB321.6 million in 2013 to RMB633.4 million in2014. The increase in dealer subscription services revenues was mainly due to (i) an increase in the number of paying subscribers, which in turn was a resultof our expansion into new geographic markets and deeper penetration into existing markets and (ii) an increase in average revenue per paying subscriber asdealers continue to allocate a greater portion of their budget to subscribe to our services and an increase in the rates for our dealer subscription services. Wesold dealer subscription services to 17,779 dealers in 2014, compared with 10,617 dealers in 2013.Cost of Revenues. Our cost of revenues increased by 51.2% from RMB252.2 million in 2013 to RMB381.5 million in 2014, primarily due to increasesin VAT and surcharges, content-related costs and others, bandwidth and IDC costs and depreciation.Content-related Costs. Our content-related costs increased by 33.3% from RMB96.0 million in 2013 to RMB127.9 million in 2014, primarily due toan increase in salaries and benefits of our editorial personnel and an increase in toll free telephone charges due to the increase of sales leads generated fordealer subscribers. Our content-related costs included share-based compensation expenses, which increased from RMB6.5 million in 2013 to RMB8.0million in 2014.Depreciation and Amortization Expenses. Our depreciation and amortization expenses increased by 19.9% from RMB26.4 million in 2013 toRMB31.7 million in 2014, primarily due to an increase in depreciation expenses related to servers that were mainly purchased in 2014, partially offset by adecrease in amortization of acquired intangible assets, including customer relationships, domain names and licensing agreement.Bandwidth and IDC Costs. Our bandwidth and IDC costs increased by 45.9% from RMB21.0 million in 2013 to RMB30.7 million in 2014, primarilydue to increased bandwidth and IDC requirements to fulfill the growth of our user traffic and improve our users’ experience.VAT and Surcharges. VAT and related surcharges increased by 75.8% from RMB108.8 million for 2013 to RMB191.2 million for 2014, as a result ofincreased revenues.Operating Expenses. Our operating expenses increased by 106.9% from RMB409.4 million in 2013 to RMB847.2 million in 2014, primarily due toincreases in sales and marketing expenses, general and administrative expenses and product development expenses. As a percentage of net revenues,operating expenses increased from 33.7% in 2013 to 39.7% in 2014. 73Table of ContentsSales and Marketing Expenses. Our sales and marketing expenses increased by 128.0% from RMB245.2 million in 2013 to RMB559.1 million in2014. This increase was primarily due to (i) an increase in marketing expenses in connection with the promotion of our brands through search engines,mobile platforms and navigation sites, including the cooperation with Baidu for enhanced auto-related content search results on PCs powered by “Aladdin,”and the cooperation with application stores and mobile browsers to promote our mobile applications and websites, and (ii) an increase in salaries andbenefits, resulting from our increased sales and marketing headcount and the hiring of senior personnel to oversee our sales and marketing activities as wellas more experienced sales persons to provide better service and support to our important customers. As a percentage of net revenues, sales and marketingexpenses increased from 20.2% in 2013 to 26.2% in 2014. Our sales and marketing expenses in 2014 included share-based compensation expenses ofRMB14.6 million, compared to RMB4.4 million in 2013.General and Administrative Expenses. Our general and administrative expenses increased by 57.2% from RMB82.5 million in 2013 to RMB129.8million in 2014. This increase was primarily attributable to an increase in salaries and benefits, professional service fees and office expenses. As a percentageof net revenues, general and administrative expenses decreased from 6.8% in 2013 to 6.1% in 2014. Our general and administrative expenses for 2014included share-based compensation expenses of RMB20.6 million, compared to RMB11.7 million in 2013.Product Development Expenses. Our product development expenses increased by 94.0% from RMB81.7 million in 2013 to RMB158.4 million in2014, primarily due to an increase in salaries and benefits in line with an increase in the number of product development personnel including additionalsenior engineers to enhance our product development capabilities, especially in our growth initiatives, such as mobile platforms. As a percentage of netrevenues, product development expenses increased from 6.7% in 2013 to 7.4% in 2014. Our product development expenses for 2014 included share-basedcompensation expenses of RMB13.4 million, compared to RMB3.0 million in 2013.Income before Income Taxes. Our income before income taxes increased by 65.6% from RMB568.5 million in 2013 to RMB941.5 million in 2014.Income Tax Expense. We incurred income tax expense of RMB192.8 million in 2014, compared with RMB112.3 million in 2013, primarily due to thegrowth of our income before income taxes. As a percentage of our income before income taxes, our income tax expenses were 19.8% in 2013 and 20.5% in2014.Net Income. As a result of the foregoing, we had net income of RMB748.7 million in 2014, compared with net income of RMB456.2 million in 2013.InflationSince 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 China increased by 2.6%, 2.0% and 1.4% in 2013, 2014 and 2015, and the year-over-year percent changes in the consumer priceindex for December 2013, 2014, and 2015 were increases of 2.5%, 1.5% and 1.6%, respectively. Although we have not in the past been materially affected byinflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in China.Recent Accounting PronouncementsIn July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying theMeasurement of Inventory (“ASU 2015-11”). The amendments in this update simplify the measurement of inventory. ASU 2015-11 states that an entityshould measure inventory at the lower of cost and net realizable value. The amendments in ASU 2015-11 are effective for fiscal years beginning afterDecember 15, 2016, including interim periods within those fiscal years. The amendments in ASU 2015-11 should be applied prospectively with earlierapplication permitted as of the beginning of an interim or annual reporting period. The adoption of the guidance is not expected to have significant impacton our consolidated financial statements.In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers-Deferral of the effective date (“ASU 2015-14”). Theamendments in ASU 2015-14 defer the effective date of ASU No. 2014-09, Revenue from Contracts with Customers issued in May 2014. According to theamendments in ASU 2015-14, the new revenue guidance ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017,including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning afterDecember 15, 2016, including interim reporting periods within that reporting period. We are in the process of evaluating contracts with our customers underthe new standard and cannot currently estimate the financial statement impact of adoption. 74Table of ContentsIn November 2015, the FASB issued ASU No. 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). Theamendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified asnoncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016,including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period.The adoption of the guidance is not expected to have significant impact on our consolidated financial statements. B.Liquidity and Capital ResourcesCash Flows and Working CapitalOur principal sources of liquidity are cash generated from our operating activities and our issuance of ADSs. In December 2013, we completed ourinitial public offering and raised net proceeds of US$142.6 million, after deducting underwriting commissions and discounts and expenses. In November2014, we completed our 2014 Offering and raised net proceeds of US$97.3 million, after deducting underwriting commissions and discounts and expenses.Our principal uses of cash for 2013, 2014 and 2015 were operating activities, including employee compensation, tax expenses, marketing expenses,bandwidth and IDC costs and purchase of vehicles, investments and capital expenditures. As of December 31, 2015, we had RMB2,152.6 million (US$$332.3million) in cash and cash equivalents.We believe that our current cash and anticipated cash flow from operations, together with the net proceeds that we received from our equity offerings,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 tounanticipated business conditions or other future developments. If our existing cash is insufficient to meet our requirements, we may seek to sell additionalequity securities, debt securities or secure debt funding from financial institutions.We expect to continue to accrue for staff welfare benefits including medical insurance, housing funds, pension benefits, unemployment insurance,maternity insurance and work-related injury insurance based on certain percentages of the employees’ respective salaries and to make cash contributions tostate-sponsored plans out of the amounts accrued. The amount of such cash contributions may increase due to our expanding workforce as we grow ourbusiness or increase wage levels. However, we do not expect that any such increases will have a material effect on our liquidity.The following table sets forth a summary of our cash flows for the years indicated. For the Year Ended December 31, 2013 2014 2015 RMB RMB RMB US$ (in thousands) Net cash generated from operating activities 593,893 1,023,743 1,461,841 225,669 Net cash used in investing activities (45,943) (1,759,517) (407,657) (62,931) Net cash generated from financing activities 169,298 647,396 30,200 4,662 Effect of exchange rate on cash and cash equivalents 789 4,181 13,847 2,138 Net increase/(decrease) in cash and cash equivalents 718,037 (84,197) 1,098,231 169,538 Cash and cash equivalents at beginning of year 420,576 1,138,613 1,054,416 162,773 Cash and cash equivalents at end of year 1,138,613 1,054,416 2,152,647 332,311 75Table of ContentsOperating ActivitiesNet cash generated from operating activities was RMB1,461.8 million (US$225.7 million) for 2015. This amount was primarily attributable to netincome of RMB990.6 million (US$152.9 million), (a) adjusted for (i) certain non-cash expenses, primarily share-based compensation expenses of RMB107.9million (US$16.7 million), depreciation of property and equipment of RMB51.3 million (US$7.9 million) and deferred income taxes of RMB6.5 million(US$1.0 million), and (ii) changes in operating assets and liabilities that positively affected operating cash flow, primarily an increase in deferred revenue ofRMB433.7 million (US$67.0 million) and an increase in accrued expenses and other payables of RMB316.7 million (US$48.9 million), and (b) partiallyoffset by changes in operating assets and liabilities that negatively affected operating cash flow, primarily an increase in accounts receivable of RMB340.9million (US$52.6 million) and increase in prepaid expenses and other current assets of RMB264.4 million (US$40.8 million) and inventories of RMB111.7(US$17.2 million). The increase in deferred revenues was mainly attributable to the growth of our dealer subscription services. The increase in accruedexpenses and other payables was mainly due to the increase in accrued rebates to advertising agencies in accordance with growth of revenue and accrual forthe year-end bonuses to employees during the period. The increase in accounts receivable was primarily due to the increase of our advertising services. Theincrease in prepaid expenses and inventories was mainly due to the advance payment for and purchase of vehicles.Net cash generated from operating activities was RMB1,023.7 million for 2014. This amount was primarily attributable to net income of RMB748.7million, (a) adjusted for (i) certain non-cash expenses, primarily share-based compensation expenses of RMB56.7 million, depreciation of property andequipment of RMB35.1 million and deferred income taxes of RMB5.3 million, and (ii) changes in operating assets and liabilities that positively affectedoperating cash flow, primarily an increase in deferred revenue of RMB225.6 million and an increase in accrued expenses and other payables of RMB201.4million, and (b) partially offset by changes in operating assets and liabilities that negatively affected operating cash flow, primarily an increase in accountsreceivable of RMB271.0 million. The increase in deferred revenues was mainly attributable to the growth of our dealer subscription services. The increase inaccounts receivable was primarily due to the increase of our advertising service sales. The increase in accrued expenses and other payables was mainly due tothe increase in accrued rebates to advertising agencies in accordance with growth of revenue and accrual for the year-end bonuses to employees during theperiod.Net cash generated from operating activities was RMB593.9 million for 2013. This amount was primarily attributable to net income of RMB456.2million, (a) adjusted for (i) certain non-cash expenses, primarily share-based compensation expenses of RMB25.6 million, depreciation of property andequipment of RMB25.5 million and deferred income taxes of RMB3.3 million, and (ii) changes in operating assets and liabilities that positively affectedoperating cash flow, primarily an increase in deferred revenue of RMB118.8 million and an increase in accrued expenses and other payables of RMB97.8million, and (b) partially offset by changes in operating assets and liabilities that negatively affected operating cash flow, primarily an increase in accountsreceivable of RMB139.9 million. The increase in deferred revenues was mainly attributable to the subscription fees we received from our growing number ofdealer subscribers. The increase in accounts receivable was primarily due to the increase in our advertising services sales. The increase in accrued expensesand other payables was mainly due to accrued rebates to advertising agencies in accordance with growth of revenue and accrual for the year-end bonuses toemployees during the period.Investing ActivitiesNet cash used in investing activities was RMB407.7 million (US$62.9 million) in 2015, which was primarily attributable to the purchase of termdeposits, the investment in our new joint ventures and the purchase of property and equipment.Net cash used in investing activities was RMB1,759.5 million in 2014, which was primarily attributable to the purchase of term deposits.Net cash used in investing activities amounted to RMB45.9 million in 2013, primarily attributable to the purchase of property and equipment. 76Table of ContentsFinancing ActivitiesNet cash generated from financing activities in 2015 was RMB30.2 million (US$4.7 million), which was attributable to proceeds from exercise ofshare-based awards.Net cash generated from financing activities in 2014 was RMB647.4 million, which was primarily attributable to the net proceeds from our 2014Offering of RMB604.0 million and the decrease in restricted cash of RMB245.0 million, partially offset by the payment of the final installment for therepurchase of common stock from Mr. Jiang Lan, a former director of our company, of RMB227.0 million, pursuant to the West Crest Share Purchase. See“Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions—Transactions with Entities Affiliated with Our Shareholders”for more information.Net cash generated from financing activities in 2013 was RMB169.3 million, mainly attributable to the net proceeds from our initial public offering ofRMB863.2 million, partially offset by the payments of dividends amounting to RMB220.9 million, net of withholding taxes paid in June and July 2013 toall of our shareholders and the payment of the first installment for the repurchase of common stock from Mr. Jiang Lan of RMB230.3 million, pursuant to forthe West Crest Share Purchase. See “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transaction—Transactions with EntitiesAffiliated with Our Shareholders” for more information.In connection with financing the first installment payable to Mr. Jiang Lan under the West Crest Share Purchase, we entered into a short-term loanfacility agreement with The Hongkong and Shanghai Banking Corporation Limited, Hong Kong, on November 18, 2013 in the amount of RMB230.3million. The term of this loan was three months, with an interest rate of LIBOR plus 0.9% and a maturity of three months from the date of first drawdown. Thisshort-term facility was secured by RMB denominated bank deposits of RMB245.0 million placed with HSBC Bank (China) Company Limited, whichincreased restricted cash for 2013. We repaid this loan in full in 2013 and subsequently the pledged RMB denominated bank deposits were released in early2014.Capital ExpendituresCash outflow in connection with capital expenditures amounted to RMB46.5 million, RMB42.8 million and RMB89.2 million (US$13.8 million) in2013, 2014 and 2015, respectively. These capital expenditures were primarily used to purchase equipment for our business and leasehold improvements.Holding Company StructureOur ability to pay dividends is primarily dependent on our receiving distributions of funds from our subsidiaries. Relevant PRC statutory laws andregulations permit payments of dividends by our PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRCaccounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAPdiffer from those reflected in the statutory financial statements of our PRC subsidiaries.Under PRC law, our PRC subsidiaries are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and astaff welfare and bonus fund and allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accountingstandards to the general reserve, and have the right to discontinue allocations to the general reserve if such reserve has reached 50% of registered capital onan individual company basis. In addition, they are also required to make appropriations to the enterprise expansion fund and staff welfare and bonus fund atthe discretion of their respective boards of directors. Our VIEs in the PRC are also subject to similar statutory reserve requirements. These reserves can only beused for specific purposes and are not transferable to us in the form of loans, advances or cash dividends. As of December 31, 2013, 2014 and 2015, our PRCsubsidiaries and VIEs had appropriated RMB7.1 million, RMB8.8 million and RMB19.2 million (US$3.0 million), respectively, of retained earnings for theirstatutory reserves.As a result of these PRC laws and regulations, prior to allocations of after-tax profits to the statutory reserves, our PRC subsidiaries and VIEs arerestricted 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 PRC subsidiaries and VIEs from transferring funds to us in the form ofdividends, loans and advances. As of December 31, 2014 and 2015, the amounts of the net restricted assets of our PRC subsidiaries and VIEs wereRMB2,626.1 million and RMB3,740.5 million (US$577.4 million), respectively. 77Table of ContentsC.Research and Development, Patents and Licenses, Etc.Technology and Product DevelopmentOur technologies and infrastructure are critical to our success. We follow a user-centric strategy for our system architecture and have developed robustand scalable technology platforms with sufficient flexibility to support our rapid growth.A key component of our user-centric strategy is our user intelligence engine which we have developed and are continually enhancing. Our userintelligence engine allows us to rapidly gather user intelligence by analyzing large amounts of data from many sources throughout our content productionsystem. We can utilize such user intelligence data to personalize user interfaces, associate and understand the relationship of information from differentsources and facilitate interactions among users and various elements on our websites and mobile applications. It also helps us recommend suitable products,services and user connections to our users. Through our user intelligence engine, we can engage our users more closely by providing them with relevantcontent. We are also able to provide precision marketing services to our automakers, dealers and other automotive-related customers so that they can deliverrelevant advertisements to targeted users who are more receptive to such marketing information.We distribute our web content to numerous network nodes close to our users by utilizing the content delivery networks, allowing most of our usercommunications to bypass internet congestion. With our technological expertise, we manage the content delivery networks to enhance our websiteresponsiveness and to improve user experience. As such, we believe our websites have a performance advantage over other automotive websites.We invested heavily in mobile technologies and were among the earliest in our industry in China to introduce a mobile version of our websites andboth Apple iOS- and Android-based applications to allow our users to easily access our content. We have built up a team of 179 research and developmentpersonnel as of December 31, 2015, to focus exclusively on the development of our mobile websites and applications and to explore new business modelsand opportunities through mobile technology. We plan to continue to leverage our mobile technology to develop more applications for Apple iOS- andAndroid- platforms focusing on convenience, real-time interaction and location based services.We had an experienced product development team of 787 engineers as of December 31, 2015. Our past innovation has focused on helping usersresearch, select and purchase suitable automobiles through our websites. We plan to develop additional products and services for our transaction business,mobile applications and media-related technology. Our product development expenses were RMB81.7 million, RMB158.4 million and RMB273.9 million(US$42.3 million) for the years ended December 31, 2013, 2014 and 2015, respectively.Intellectual PropertyOur intellectual property includes trademarks and trademark applications related to our brands and services, software copyrights, trade secrets and otherintellectual property rights and licenses. We seek to protect our intellectual property assets and brands through a combination of trademark, patent, copyrightand trade secret protection laws in the PRC and other jurisdictions, as well as through confidentiality agreements and other measures.We hold and (both mean “auto home” in English) and “AUTOHOME®” trademarks in China. In addition, as at December 31, 2015,we held 211 pending trademark applications and 93 registered trademarks in China. As at the same date, we had 45 registered names, including our mainwebsite domain names, autohome.com.cn and che168.com, 92 pending patent applications and 19 registered patents. D.Trend InformationOther than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events since thebeginning of our fiscal year 2015 that are reasonably likely to have a material effect on our net revenues, income from operations, profitability, liquidity orcapital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial condition. 78Table of ContentsE.Off-Balance Sheet ArrangementsWe have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have notentered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity, or that are not reflected in our consolidatedfinancial statements. 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, marketrisk or credit support to us or engages in leasing, hedging or research and development services with us. F.Tabular Disclosure of Contractual ObligationsThe following summarizes our contractual obligations as of December 31, 2015: Payments Due by Period Less Than 1Year 1 to 3 Years 3 to 5 Years More than 5Years Total (in thousands of RMB) Operating lease obligations(1) 66,352 51,504 — — 117,856 (1)Operating lease obligations primarily related to the lease of office space.Rental expenses for the years ended December 31,2013, 2014 and 2015 were RMB17.9 million, RMB30.5 million and RMB49.9 million (US$7.7million), respectively.As of December 31, 2015, the Company had commitment to make an investment of RMB10 million in a joint venture to be established, accounting fora 20% shareholding. The joint venture is expected to provide data searching and analysis service. G.Safe HarborSee “Forward-Looking Statements” on page 2 of this annual report.ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES A.Directors and Senior ManagementThe following table sets forth information regarding our directors and executive officers as of the date of this annual report. Directors and Executive Officers Age Position/TitleTimothy Y. (Tim) Chen 59 Chairman of the BoardJames Zhi Qin 43 Director and Chief Executive OfficerAndrew Penn 52 DirectorXiang Li 34 DirectorNicholas Yik Kay Chong 48 Chief Financial OfficerCynthia Whelan 46 DirectorHan Willem Kotterman 50 DirectorRuey-Bin Kao 55 DirectorTed Tak-Tai Lee 65 Independent DirectorGuangfu Cui 47 Independent DirectorJunling Liu 51 Independent DirectorTimothy Y. (Tim) Chen has served as our chairman of the board since 2012. He joined Asia Pacific Telecom as the General Manager since January 2016.He served as the president and group managing director of Telstra International Group and Advisor to Telstra CEO from November 2012 to December 2015.He is also a director of China Communications Media Group Co. Ltd., Qingdao Haier. He was a non-executive director on the board of directors of TelstraCorporation Limited between April 2012 and November 2012 and a director of Sequel Media Inc. between November 2012 and November 2014. Previously,Mr. Chen was a partner of a China Opportunities Fund within GL Capital Group. He was the CEO of National Basketball Association China from 2007 to2010, the corporate vice president of Microsoft and the CEO of its Greater China region from 2003 to 2007, the corporate vice president of Motorola and thechairman and president of Motorola (China) Electronics from 2001 to 2003. Before Motorola, he was the CEO of 21CN Cybernet, a company listed on theHong Kong Stock Exchange, from 2000 to 2001. Prior to 2000, Mr. Chen spent eight years in China with Motorola, including serving as the general managerresponsible for the sales and marketing for the Greater China Cellular Infrastructure Division. He also spent nine years with AT&T Bell Laboratories in theUnited States. Mr. Chen holds an MBA degree from the University of Chicago and a master’s degree in both computer science and mathematics from OhioState University. 79Table of ContentsJames Zhi Qin has served as our director since 2008 and chief executive officer since 2009. Mr. Qin is also a director of Sequel Media. Mr. Qin joinedour company in 2007 and prior to joining us, from 2006 to 2007, Mr. Qin was the chief operating officer of 265.com, an internet company providing websitedirectory service, which was acquired by Google in 2007. Mr. Qin worked for McKinsey & Company as an associate from 2005 to 2006 and NorthernTelecom Limited as a software engineer from 1999 to 2003. Prior to that, Mr. Qin was employed at IBM Corporation from 1996 to 1998 and Hughes NetworkSystems from 1995 to 1996. Mr. Qin earned a bachelor’s degree in electrical engineering from Tsinghua University in 1995, a master’s degree in computerscience from the University of Iowa in 1999, and an MBA degree from Harvard Business School in 2005.Andrew Penn has served as our director since March 2012. Andrew is the Chief Executive Officer of Telstra Corporation Limited since May 1, 2015. Hejoined Telstra in 2012 as Chief Financial Officer and was also appointed Group Executive International in 2014. Prior to that, Mr. Penn had a career at AXAAsia Pacific Holdings Limited spanning twenty years, where he served in a variety of senior finance, strategy and executive roles, including group ChiefExecutive Officer from 2006 to 2011. Mr. Penn holds an MBA degree from Kingston University, London and is a graduate of Harvard Business School’sadvanced management program. He is a fellow of the Chartered Association of Certified Accountants.Xiang Li has served as our director since 2008. He served as our president from May 2013 to June 2015 and executive vice president between 2008 andMay 2013. Mr. Li is also a director of Sequel Media. In 2005, Mr. Li founded our autohome.com.cn website providing online advertising services to theautomotive industry. In 2000, Mr. Li founded pcpop.com website, which began commercial operations in 2003. Pcpop.com focuses on providing marketingservices for the information technology industry and was operated through China Topside. Pcpop.com was spun off from our company in June 2011.Nicholas Yik Kay Chong has served as our chief financial officer since February 2014. He served as our co-chief financial officer between September2013 and February 2014. Mr. Chong has over 22 years of experience in the fast-moving consumer goods, IT and sporting goods industries. From 2009 to2012, Mr. Chong was a director and the group chief financial officer of Li Ning Sports Limited, a company listed on the Hong Kong Stock Exchange.Mr. Chong served in a variety of senior finance and management roles at Dell China from 2001 to 2009 and Procter & Gamble Singapore and China from1991 to 2001. Mr. Chong holds a bachelor’s degree in economics, statistics and business studies from National University of Singapore.Cynthia Whelan has served as our director since December 10, 2013. Ms. Whelan was appointed to the role of Group Executive International and NewBusinesses within Telstra in October 2015. In this role, Cynthia is responsible for a number of Telstra’s key growth businesses including Telstra Health,Telstra Ventures, Telstra Home and Premium Services. She is also responsible for the company’s international operations as Telstra expands in globalmarkets. Ms. Whelan joined Telstra in August 2013 as the Group Managing Director Strategic Finance. Prior to that, she was with Barclays Bank PLC,Australia Branch where she held the role of chief executive officer, Australia/New Zealand for three years. Over her ten years at Barclays, Ms. Whelan held avariety of roles including managing director and head of Asia Pacific capital markets, based in Hong Kong. During her investment banking career spanningmore than 20 years, Ms. Whelan worked in Australia for Barclays, UBS, Merrill Lynch and Westpac. Ms. Whelan was previously a director of Asia SecuritiesIndustry and Financial Markets Association and Australian Financial Markets Association. She holds a Bachelor of Commerce (Finance and Japanese studies)from the University of New South Wales and a Masters of Applied Finance from Macquarie University. 80Table of ContentsHan Willem Kotterman has served as our director since December 10, 2013. Mr. Kotterman is the COO of Telstra International Group, based in HongKong. Mr. Kotterman joined Telstra from CSL Limited where he held the position of acting chief executive officer and executive vice president, customerservice and operations. Mr. Kotterman has over 20 years of experience in telecommunications, management consulting, and international corporate tax lawacross Europe, Asia and North America. Before joining CSL Limited, Mr. Kotterman was a senior strategy consultant in Accenture’s WirelessCommunications Practice based in New York. In this role, Mr. Kotterman advised the leading U.S. wireless operators in the areas of corporate strategy andmerger integration, and was involved in executing several large industry mergers in the North American wireless industry. Mr. Kotterman holds an MBAdegree from Wharton School of Business in Philadelphia in finance and strategic management and a master of laws degree in international corporate taxationfrom Leiden University in the Netherlands.Ruey-Bin Kao has served as our director since February 20, 2014. Dr. Kao was named CEO of Telstra Greater China in January 2014. Based in Beijing,he is responsible for developing Telstra’s integrated service capabilities and identifying strategic areas to grow the business in the rapidly evolving GreaterChina market. He has more than 25 years of technology and management experience in the U.S. and Asia, and has served in many senior positions, includingas country president of Applied Materials China. Prior to that, he was the managing director and vice president of Enterprise Business in Hewlett PackardChina and the chairman of Motorola (China) Electronics Limited and Motorola Asia Pacific Business Council. He holds directorships at China NationalTravel Service (HK) Group Corporation, one of the largest diversified comprehensive travel groups in China, and Want-Want China Holdings Limited, acompany listed on the Hong Kong Stock Exchange. He is also a former director at Shenhua Group Corporation Limited, a diversified energy enterprise.Dr. Kao holds a bachelor of science degree in computer science from Tam-Kang University, a master of science degree in computer and information sciencefrom the University of Delaware and a doctorate of business administration from The Hong Kong Polytechnic University.Ted Tak-Tai Lee has served as our independent director since December 10, 2013. Mr. Lee is the managing director of T Plus Capital Ltd., a firm hefounded in 2007 that provides strategic, financial and business development advisory services to accounting, financial valuation services and humanresources firms in China. Mr. Lee is also an independent director and chairman of the audit committee of Daphne International Holding Limited, a HongKong listed company, and a director of Shriro Trading (Shanghai) Company Limited, a privately held company established in China. From September 2007to April 2009, he was an executive director at Prax Capital, a private equity firm specializing in China-focused investments. Mr. Lee was a senior partner atDeloitte where he worked for 31 years in the United States and Asia. Mr. Lee is an AICPA certified public accountant (inactive) and received his MBA degreefrom the University of Southern California in 1979 and his bachelor’s degree in accounting from California State University, Fresno in 1973.Guangfu Cui has served as our independent director since December 9, 2014. Mr. Cui served as the Chief Executive Officer of eLong, Inc., a companylisted on the Nasdaq Stock Market, from October 2007 to June 2015, and as a director of eLong, Inc. from February 2011 to May 2015. Prior to joiningeLong, Inc., Mr. Cui was the Managing Director for FedEx Kinko’s China for more than three years. Prior to FedEx Kinko’s, Mr. Cui worked for Procter &Gamble for over 12 years, including two and half years working in the United States. Mr. Cui holds a bachelor’s degree in law from Peking University, anMBA from Kellogg School of Management at Northwestern University.Junling Liu has served as our independent director since January 12, 2015. Mr. Liu is the co-founder and Chairman of New Peak Group, a leadingdigital and mobile health group in China since 2015. Before joining New Peak Group, he was the co-founder and chief executive officer of Yihaodian. Priorto that, Mr. Liu was the co-president of Dell China and Hong Kong. Prior to that, he was a managing director of Avaya China. Mr. Liu received his Master ofInternational Business Administration from Flinders University in Australia. B.Compensation of Directors and Executive OfficersFor the fiscal year ended December 31, 2015, we incurred an aggregate compensation expense of approximately RMB12.97 million (US$2.0 million)for our executive officers and directors (not including share-based compensation expenses). Our PRC subsidiaries and VIEs are required by law to makecontributions equal to certain percentages of each employee’s salary for his or her pension insurance, medical insurance, unemployment insurance, housingfund and other statutory benefits. Other than the above-mentioned statutory contributions mandated by applicable PRC law, we have not set aside or accruedany amount to provide pension, retirement or other similar benefits to our executive officers and directors. For additional information on share incentivegrants to our directors and executive officers, see “— Share Incentive Plans.” 81Table of ContentsEmployment AgreementsWe have entered into employment agreements with each of our executive officers through Autohome WFOE. Under these agreements, each of ourexecutive officers is employed for a specified time period. We may terminate employment for cause at any time without advance notice or remuneration forcertain acts of the executive officer, such as a conviction or plea of guilty to a felony or any crime involving moral turpitude, negligent or dishonest acts toour detriment, or misconduct or a failure to perform agreed duties. In such case, the executive officer will not be entitled to receive payment of any severancebenefits or other amounts by reason of the termination, and the executive officer’s right to all other benefits will terminate, except as required by anyapplicable law. We may also terminate an executive officer’s employment without cause upon one-month advance written notice. In such case of terminationby us, we are required to provide compensation to the executive officer, including cash compensation equivalent to three months of the executive officer’ssalary. The executive officer may terminate the employment at any time with a one-month advance written notice, if there is any significant change in theexecutive officer’s duties and responsibilities inconsistent in any material and adverse respect with his or her title and position, or a material reduction in theexecutive officer’s annual salary before the next annual salary review, or if otherwise approved by the board of directors.Each executive officer has agreed to hold, both during and after the termination or expiry of his or her employment agreement, in strict confidence andnot to use, except as required in the performance of his duties in connection with the employment, any of our confidential information or trade secrets, anyconfidential information or trade secrets of our clients or prospective clients, or the confidential or proprietary information of any third party received by usand for which we have confidential obligations. The executive officers have also agreed to disclose in confidence to us all inventions, designs and tradesecrets which they conceive, develop or reduce to practice and to assign all right, title and interest in them to us, and assist us in obtaining patents, copyrightsand other legal rights for these inventions, designs and trade secrets.In addition, each executive officer has agreed to be bound by non-competition and non-solicitation restrictions during the term of his or heremployment. Specifically, each executive officer has agreed not to (a) approach our clients, advertisers or contacts or other persons or entities introduced tothe executive officer for the purpose of doing business with such persons or entities that will harm our business relationships with these persons or entities;(b) assume employment with or provide services to any of our competitors, or engage, whether as principal, partner, licensor or otherwise, any of ourcompetitors; or (c) seek directly or indirectly, to solicit the services of any of our employees who is employed by us on or after the date of the executiveofficer’s termination, or in the year preceding such termination.Share Incentive Plans2011 Share Incentive PlanOn May 4, 2011, we adopted our 2011 Share Incentive Plan to attract and retain the best available personnel, provide additional incentives toemployees, directors and consultants and promote the success of our business. The maximum aggregate number of our Class A ordinary shares which may beissued pursuant to all awards under the 2011 Share Incentive Plan, as currently in effect, is 7,843,100. As of February 29, 2016, options to purchase 2,570,765Class A ordinary shares under the 2011 Share Incentive Plan at an exercise price of US$2.20 were outstanding. The following table summarizes, as ofFebruary 29, 2016, the outstanding options we had granted to our directors, officers and other individuals under our 2011 Share Incentive Plan: Name Options Exercise Price(US$/Share) Date of Grant Date ofExpiration Vesting ScheduleJames Zhi Qin * US$2.20 May 6, 2011 May 5, 2021 **Other individuals as a group 2,370,765 US$2.20 May 6, 2011August 1, 2011October 8, 2011December 19, 2011July 1, 2012May 27, 2013October 22, 2013January 16, 2014 Ten years aftergrant date Approximately4 years fromeach date ofgrant *Less than one percent of our total outstanding share capital.**25% of the awards vested on each of January 1, 2012, 2013, 2014 and 2015. 82Table of ContentsThe following paragraphs describe the principal terms of the 2011 Share Incentive Plan:Types of awards. The Plan permits the awards of incentive and non-statutory share-based awards, share appreciation rights, restricted shares andrestricted share units. The following briefly describes the principal features of the various awards that may be granted under the 2011 Share Incentive Plan. • Options. The administrator may grant incentive stock options, or ISOs, or non-statutory stock options, NSOs, under our 2011 Share IncentivePlan. Unless the administrator determines otherwise, the exercise price of options granted under our 2011 Share Incentive Plan must at least beequal to the fair market value of our ordinary shares on the date of grant and its term may not exceed ten years. In addition, for any participantwho owns more than 10% of the total combined voting rights of all classes of our outstanding shares, or of certain of our parent or subsidiary, theterm of an ISO must not exceed five years and the exercise price of such ISO must equal at least 110% of the fair market value on the grant date.The administrator determines the term of all other options.After termination of an employee, director or consultant, he or she may exercise his or her option, to the extent vested as of such date oftermination, within 60 days of termination, or such longer period of time stated in the option agreement. In the absence of a specified period oftime in the option agreement, the option will remain exercisable for a period of 12 months in the event of a termination due to death ordisability. However, in no event may an option be exercised later than the expiration of its term. • Share appreciation rights. Share appreciation rights may be granted under our 2011 Share Incentive Plan. Share appreciation rights allow therecipient to receive the appreciation in the fair market value of our ordinary shares between the exercise date and the date of grant. The exerciseprice of share appreciation rights granted under our 2011 Share Incentive Plan must at least be equal to the fair market value of our ordinaryshares on the date of grant. The administrator determines the terms of share appreciation rights, including when such rights vest and becomeexercisable and whether to settle such awards in cash or with our ordinary shares, or a combination thereof. Share appreciation rights expire underthe same rules that apply to options. • Restricted shares. Restricted shares may be granted under our 2011 Share Incentive Plan. Restricted share awards are Class A ordinary shares thatare subject to various restrictions, including restrictions on transferability and forfeiture provisions. Restricted shares will vest and therestrictions on such shares will lapse, in accordance with terms and conditions established by the administrator. The administrator will determinethe number of restricted shares granted to any employee. The administrator may impose whatever conditions to vesting it determines to beappropriate. For example, the administrator may set restrictions based on the achievement of specific performance goals and/or continued serviceto us. Holders of restricted share awards generally will have voting rights but not dividend rights, unless the administrator provides otherwise.Restricted shares that do not vest for any reason will be forfeited by the recipient and will revert to us. • Restricted Share Units. A restricted share unit award is the grant of the right to receive an ordinary share at a future date and may be subject toforfeiture. Our plan administrator has the discretion to set performance objectives or other vesting criteria that will determine the number or valueof restricted share units to be granted. Unless otherwise determined by our plan administrator, a restricted share unit is nontransferable and maybe forfeited or repurchased by us upon termination of employment or service during a restricted period. Our plan administrator, at the time ofgrant, specifies the dates on which the restricted share units become fully vested. 83Table of ContentsAdministration. Our board of directors or the compensation committee of our board of directors administers our 2011 Share Incentive Plan. Subject tothe provisions of our 2011 Share Incentive Plan, the administrator has the power to determine the terms of the awards, including the recipients, the exerciseprice, the number of shares subject to each such award, the vesting schedule applicable to the awards, together with any vesting acceleration, and the form ofconsideration payable upon exercise. The administrator also has the authority to modify or amend awards, to prescribe rules and to construe and interpret the2011 Share Incentive Plan. Our board of directors may delegate limited authority to additional committees with respect to certain employees and consultantsto reduce the burden on the board in administering the 2011 Share Incentive Plan.Award Agreement. Options, share appreciation rights, restricted shares, or restricted share units granted under the plan are evidenced by an awardagreement that sets forth the terms, conditions, and limitations for each grant.Eligibility. We may grant awards to our employees, directors and consultants of our company. However, we may grant options that are intended toqualify as incentive share-based awards only to our employees and employees of our parent companies and subsidiaries.Transferability. Unless the administrator provides otherwise, our 2011 Share Incentive Plan does not allow for the transfer of awards other than by willor the laws of descent and distribution and only the recipient of an award may exercise an award during his or her lifetime.Certain adjustments. In the event of certain changes in our capitalization, to prevent diminution or enlargement of the benefits or potential benefitsavailable under the 2011 Share Incentive Plan, the administrator will make adjustments to one or more of the number and class of shares that may bedelivered under the plan and/or the number, class and price of shares covered by each outstanding award and the numerical share limits contained in the plan.In the event of our proposed liquidation or dissolution, the administrator will notify participants as soon as practicable and all awards will terminateimmediately prior to the consummation of such proposed transaction.Change in control transactions. Our 2011 Share Incentive Plan provides that in the event of our merger or change in control, as defined in the 2011Share Incentive Plan, each outstanding award will be treated as the administrator determines, except that if the successor corporation or its parent orsubsidiary does not assume or substitute an equivalent award for each outstanding option or share appreciation right, then such option or share appreciationright will be exercisable for a period of time determined by the administrator in its sole discretion. The option or share appreciation right will then terminateupon the expiration of the specified period of time.Amendment and Termination. Our board of directors has the authority to amend, suspend or terminate the 2011 Share Incentive Plan.2013 Share Incentive PlanWe adopted the 2013 Share Incentive Plan in November 2013. The maximum aggregate number of Class A ordinary shares which may be issuedpursuant to all awards under the 2013 Share Incentive Plan is 3,350,000. As of February 29, 2016, 1,463,915 restricted shares under the 2013 Share Incentiveplan were outstanding. The following table summarizes, as of February 29, 2016, the outstanding awards we granted under the 2013 Share Incentive Plan: Name Restricted Shares Date of Grant Vesting ScheduleNicholas Yik Kay Chong * November 4, 2013 **James Zhi Qin * January 23, 2015 *** October 30, 2015 ***Ted Tak-Tai Lee * April 30, 2015 ****Guangfu Cui * April 30, 2015 ****Junling Liu * April 30, 2015 ****Directors and officers as a group * November 4, 2013 ** January 23, 2015 *** April 30, 2015October 30, 2015 *******Other individuals as a group * May 8, 2014October 9, 2014January 23, 2015April 1, 2015August 19, 2015October 1, 2015 Approximately 4 yearsfrom each date of grant 84Table of Contents *Less than one percent of our total outstanding share capital.**25% of the restricted shares vested on each of September 29, 2014 and September 29, 2015, and the remaining restricted shares will vest on each ofSeptember 29, 2016 and September 29, 2017.***25% of the restricted shares vested on January 1, 2016, and the remaining restricted shares will vest on each of January 1, 2017, January 1, 2018 andJanuary 1, 2019.****25% of the restricted shares vested on various dates ranging from December 8, 2015 to January 11, 2016 and the remaining restricted shares will veston an annual basis thereafter.The following paragraphs summarize the terms of the 2013 Share Incentive Plan:Types of awards. The 2013 Share Incentive Plan permits the awards of options, restricted shares and restricted share units. The following brieflydescribe the principal features of the various awards that may be granted under the 2013 Share Incentive Plan. • Options. Options provide for the right to purchase a specified number of our ordinary shares at a specified price and usually will becomeexercisable at the discretion of our plan administrator in one or more installments after the grant date. The option exercise price may be paid,subject to the discretion of the plan administrator, in cash or check, in our ordinary shares which have been held by the option holder for suchperiod of time as may be required by our plan administrator, in other property with value equal to the exercise price, through a broker-assistedcashless exercise, or by any combination of the foregoing. • Restricted Shares. A restricted share award is the grant of our ordinary shares which are subject to certain restrictions and may be subject to riskof forfeiture. Unless otherwise determined by our plan administrator, a restricted share is nontransferable and may be forfeited or repurchased byus upon termination of employment or service during a restricted period. Our plan administrator may also impose other restrictions on therestricted shares, such as limitations on the right to vote or the right to receive dividends. • Restricted share units. A restricted share unit award is the grant of the right to receive an ordinary share at a future date and may be subject toforfeiture. Our plan administrator has the discretion to set performance objectives or other vesting criteria that will determine the number or valueof restricted share units to be granted. Unless otherwise determined by our plan administrator, a restricted share unit is nontransferable and maybe forfeited or repurchased by us upon termination of employment or service during a restricted period. Our plan administrator, at the time ofgrant, specifies the dates on which the restricted share units become fully vested.Plan Administration. Our board or a committee of one or more members of our board duly authorized for the purpose of the 2013 Share Incentive Plancan act as the plan administrator.Award Agreement. Options, restricted shares or restricted share units granted under the 2013 Share Incentive Plan are evidenced by an award agreementthat sets forth the terms, conditions and limitations for each grant.Exercise Price. The exercise price in respect of any option shall be determined by the plan administrator and set forth in the award agreement whichmay be a fixed or variable price related to the fair market value of the shares. The exercise price per share subject to an option may be amended or adjusted inthe absolute discretion of the plan administrator, the determination of which shall be final, binding and conclusive. 85Table of ContentsEligibility. We may grant awards to our directors, employees or consultants.Term of the Options. The term of each option grant shall be no more than ten years from the date of the grant.Vesting Schedule. In general, the plan administrator determines the vesting schedule, which is set forth in the award agreement.Transfer Restrictions. Unless otherwise determined by the plan administrator, no awards may be transferred other than by will or the laws of descentand distribution. Nevertheless, awards (other than incentive share-based awards) can be transferred to certain persons or entities related to the planparticipants.Termination. The 2013 Share Incentive Plan will expire ten years after it became effective and may be terminated earlier with the approval of our board.2016 Share Incentive PlanOur board of directors adopted the 2016 Share Incentive Plan in February 2016 pending ratification by our shareholders within 12 months. Themaximum aggregate number of Class A ordinary shares which may be issued pursuant to all awards under the 2016 Share Incentive Plan is 4,890,000. As ofFebruary 29, 2016, options to purchase 3,032,500 Class A ordinary shares under the 2016 Share Incentive Plan at an exercise price of US$23.97 wereoutstanding. No shares will be issued pursuant to awards granted under the 2016 Share Incentive Plan prior to the ratification of the 2016 Share IncentivePlan by our shareholders. In the event that the 2016 Share Incentive Plan is not ratified by our shareholders, all awards granted under the 2016 ShareIncentive Plan will be null and void. The following table summarizes, as of February 29, 2016, the outstanding options we had granted under the 2016 ShareIncentive Plan: Name Options(1) ExercisePrice(US$/Share) Date of Grant Date of Expiration Vesting Schedule James Zhi Qin 1,500,000 US$23.97 February 15, 2016 February 14, 2026 ** Nicholas Yik Kay Chong * US$23.97 February 15, 2016 February 14, 2026 *** Directors and officers as a group 1,600,000 US$23.97 February 15, 2016 February 14, 2026 ** US$23.97 February 15, 2016 February 14, 2026 *** Other individuals as a group 1,432,500 US$23.97 February 15, 2016 February 14, 2026 Approximately 4 yearsfrom the date of grant (1) No shares will be issued pursuant to awards granted under the 2016 Share Incentive Plan prior to the ratification of the 2016 Share Incentive Plan byour shareholders. In the event that the 2016 Share Incentive Plan is not ratified by our shareholders, all awards granted under the 2016 Share IncentivePlan will be null and void.*Less than one percent of our total outstanding share capital.**25% of the awards will vest on each of January 1, 2017, 2018, 2019 and 2020.***50% of the awards will vest on each of October 30, 2018 and 2019.The following paragraphs describe the principal terms of the 2016 Share Incentive Plan:Types of awards. The 2016 Share Incentive Plan permits the awards of options, restricted shares and restricted share units. The following brieflydescribe the principal features of the various awards that may be granted under the 2016 Share Incentive Plan. • Options. Options provide for the right to purchase a specified number of our ordinary shares at a specified price and usually will becomeexercisable at the discretion of our plan administrator in one or more installments after the grant date. The option exercise price may bepaid, subject to the discretion of the plan administrator, in cash or check, in our ordinary shares which have been held by the optionholder for such period of time as may be required by our plan administrator, in other property with value equal to the exercise price,through a broker-assisted cashless exercise, or by any combination of the foregoing. • Restricted Shares. A restricted share award is the grant of our ordinary shares which are subject to certain restrictions and may be subjectto risk of forfeiture. Unless otherwise determined by our plan administrator, a restricted share is nontransferable and may be forfeited orrepurchased by us upon termination of employment or service during a restricted period. Our plan administrator may also impose otherrestrictions on the restricted shares, such as limitations on the right to vote or the right to receive dividends. • Restricted share units. A restricted share unit award is the grant of the right to receive an ordinary share at a future date and may besubject to forfeiture. Our plan administrator has the discretion to set performance objectives or other vesting criteria that will determinethe number or value of restricted share units to be granted. Unless otherwise determined by our plan administrator, a restricted share unitis nontransferable and may be forfeited or repurchased by us upon termination of employment or service during a restricted period. Ourplan administrator, at the time of grant, specifies the dates on which the restricted share units become fully vested. 86Table of ContentsPlan Administration. Our board or a committee of one or more members of our board duly authorized for the purpose of the 2016 Share Incentive Plancan act as the plan administrator.Award Agreement. Options, restricted shares or restricted share units granted under the 2016 Share Incentive Plan are evidenced by an award agreementthat sets forth the terms, conditions and limitations for each grant.Exercise Price. The exercise price in respect of any option shall be determined by the plan administrator and set forth in the award agreement whichmay be a fixed or variable price related to the fair market value of the shares. The exercise price per share subject to an option may be amended or adjusted inthe absolute discretion of the plan administrator, the determination of which shall be final, binding and conclusive.Eligibility. We may grant awards to our directors, employees or consultants.Term of the Options. The term of each option grant shall be no more than ten years from the date of the grant.Vesting Schedule. In general, the plan administrator determines the vesting schedule, which is set forth in the award agreement.Transfer Restrictions. Unless otherwise determined by the plan administrator, no awards may be transferred other than by will or the laws of descentand distribution. Nevertheless, awards (other than incentive share-based awards) can be transferred to certain persons or entities related to the planparticipants.Termination. The 2016 Share Incentive Plan will expire ten years after it became effective and may be terminated earlier with the approval of our board. C.Board PracticesOur board of directors consists of ten directors. A director is not required to hold any shares in the company by way of qualification. A director mayvote with respect to any contract, proposed contract or arrangement in which he or she is materially interested provided (a) such director, if his or her interestin such contract or arrangement is material, has declared the nature of his or her interest at the earliest meeting of the board at which it is practicable for him orher to do so, either specifically or by way of a general notice and (b) if such contract or arrangement is a transaction with a related party, such transaction hasbeen approved by the audit committee. The directors may exercise all the powers of the company to borrow money, mortgage its undertaking, property anduncalled capital, and issue debentures or other securities whenever money is borrowed or as security for any obligation of the company or of any third party.None of our non-executive directors has a service contract with us that provides for benefits upon termination of service.Committees of the Board of DirectorsWe have established three committees under the board of directors: the audit committee, the compensation committee and the nominating andcorporate governance committee. We have adopted a charter for each of the three committees. Each committee’s members and functions are described below.Audit Committee. Our audit committee consists of Messrs. Ted Tak-Tai Lee, Guangfu Cui and Junling Liu. Mr. Ted Tak-Tai Lee is the chairman of ouraudit committee. We have determined that Messrs. Ted Tak-Tai Lee, Guangfu Cui and Junling Liu satisfy the “independence” requirements of Section 303Aof the NYSE Listed Company Manual and Rule 10A-3 under the Securities Exchange Act of 1934. The audit committee oversees our accounting andfinancial reporting processes and the audits of the financial statements of our company. The audit committee is responsible for, among other things: • appointing the independent auditors and preapproving all auditing and nonauditing services permitted to be performed by the independentauditors; • reviewing with the independent auditors any audit problems or difficulties and management’s response; • discussing the annual audited financial statements with management and the independent auditors; • reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor andcontrol major financial risk exposures; • reviewing and approving all proposed related party transactions; • meeting separately and periodically with management and the independent auditors; and • monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures toensure proper compliance. 87Table of ContentsCompensation Committee. Our compensation committee consists of Dr. Ruey-Bin Kao, Mr. Han Willem Kotterman, Ms. Cynthia Whelan, Mr. JamesZhi Qin and Mr. Guangfu Cui. Dr. Ruey-Bin Kao is the chairman of our compensation committee. We have determined that Mr. Guangfu Cui satisfies the“independence” requirements of Section 303A of the NYSE Listed Company Manual. The compensation committee assists the board in reviewing andapproving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer maynot be present at any committee meeting during which his compensation is deliberated. The compensation committee is responsible for, among other things: • reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executiveofficers; • reviewing and recommending to the board for determination with respect to the compensation of our nonemployee directors; and • reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements.Nominating and Corporate Governance Committee. Our nominating and corporate governance committee consists of Messrs. Tim Chen, Andrew Penn,James Zhi Qin and Ted Tak-Tai Lee. Mr. Tim Chen is the chairperson of our nominating and corporate governance committee. We have determined thatMr. Ted Tak-Tai Lee satisfies the “independence” requirements of Section 303A of the NYSE Listed Company Manual. The nominating and corporategovernance committee assists the board of directors in selecting individuals qualified to become our directors and in determining the composition of theboard and its committees. The nominating and corporate governance committee is responsible for, among other things: • selecting and recommending to the board nominees for election by the shareholders or appointment by the board; • reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills,experience and diversity; • making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and • advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as ourcompliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on anyremedial action to be taken.Duties of DirectorsUnder Cayman Islands law, our directors have a duty of loyalty to act honestly in good faith with a view to our best interests. Our directors also owe toour company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his or her duties a greaterdegree of skill than may reasonably be expected from a person of his or her knowledge and experience. However, English and Commonwealth courts havemoved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands. Infulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association. Our company has the right to seekdamages if a duty owed by our directors is breached.Terms of Directors and OfficersOur officers are elected by and serve at the discretion of the board of directors. At each annual general meeting, one-third of our directors then existing,or if their number is not a multiple of three, then the number nearest to and not exceeding one-third, shall retire from office by rotation, provided that (i) thechairman of the board and/or our chief executive officer shall not, whilst holding such office, be subject to retirement by rotation or be taken into account indetermining the number of directors to retire in each year, and (ii) a director appointed by the Telstra Shareholder shall not be subject to retirement byrotation and should not be taken into account in determining the number of directors who are to retire by rotation, so long as the Telstra Shareholder holds atleast 51% of the voting rights represented by our issued and outstanding voting shares. D.EmployeesWe had 1,191, 1,771 and 3,292 employees as of December 31, 2013, 2014 and 2015, respectively. The following table sets forth the number of ouremployees by function as of December 31, 2015: Functional Area Number of Employees Sales and marketing 2,044 Content and editorial 328 Product development 787 Management and administrative 133 Total 3,292 88Table of ContentsOur sales and marketing personnel increased from 975 as of December 31, 2014 to 2,044 as of December 31, 2015, as we were expanding ourtransaction business and our dealership network in 2015. Through a combination of short-term performance evaluations and long-term incentivearrangements, we intend to build a competent, loyal and highly motivated workforce. We have not experienced any work stoppages due to labor disputes. E.Share OwnershipClass A Ordinary SharesAs of February 29, 2016, we had 51,505,946 Class A ordinary shares outstanding (excluding 632,026 Class A ordinary shares that are reserved forfuture grants under our share incentive plans). In addition, as of February 29, 2016, we have granted, and have outstanding, options to purchase a total of2,570,765 Class A ordinary shares and 1,463,915 restricted shares to our employees, directors and consultants. For information regarding the Share IncentivePlans, see “Item 6. Directors, Senior Management and Employees—B. Compensation of Directors and Executive Officers.”Class B Ordinary SharesAs of February 29, 2016, we had 61,824,328 Class B ordinary shares outstanding.Beneficial Ownership of Ordinary SharesExcept as specifically noted in the table, the following table sets forth information with respect to the beneficial ownership of our ordinary shares as ofFebruary 29, 2016: • each of our directors and executive officers; and • each person known to us to own beneficially more than 5% of our ordinary shares.Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned bya person and the percentage ownership of that person, we have included shares that the person has the right to acquire within 60 days, including through theexercise of any option, warrant or other right or the conversion of any other security. These shares, however, are not included in the computation of thepercentage ownership of any other person. Ordinary Shares Beneficially Owned as of February 29, 2016 Class A Class B % of VotingRights(2) Number %(1) Number %(1) Directors and Executive Officers: Timothy Y. (Tim) Chen(3) — — — — — James Zhi Qin(4) 3,340,025 2.9% — — 2.9% Andrew Penn(5) — — — — — Xiang Li(6) 3,000,000 2.6% — — 2.6% Nicholas Yik Kay Chong(7) * * — — * Cynthia Whelan(8) — — — — — Han Willem Kotterman(9) — — — — — Ruey-Bin Kao(10) — — — — — Ted Tak-Tai Lee(11) * * — — * Guangfu Cui(12) * * — — * Junling Liu(13) * * — — * All Directors and Executive Officers as a Group 6,507,302 5.7% — — 5.7% Principal Shareholders: Telstra Holdings Pty Limited(14) — — 61,824,328 54.6% 54.6% *Less than one percent of our total outstanding share capital.(1)For each person and group included in this column, percentage ownership is calculated by dividing the number of shares beneficially owned by suchperson or group by the sum of the total number of our Class A ordinary shares and Class B ordinary shares outstanding, which is 113,330,274 as ofFebruary 29, 2016, and the number of shares such person or group has the right to acquire upon exercise of option, warrant or other right within 60 daysafter February 29, 2016. 89Table of Contents(2)For each person and group included in this column, the percentage of voting rights is calculated by dividing the voting rights beneficially owned bysuch person or group by the voting rights with respect to all of our Class A ordinary shares and Class B ordinary shares as a single class. Each Class Aordinary share is entitled to one vote. When the total number of ordinary shares held by Telstra Holdings Pty Limited and/or its affiliates, or the TelstraShareholder, constitutes no less than 51% of all of our issued and outstanding ordinary shares, each Class B ordinary share is entitled to one vote; whenthe total number of ordinary shares held by the Telstra Shareholder, drops below 51% but is no less than 39.3% of all of our issued and outstandingordinary shares, each Class B ordinary share will carry such number of votes that would result in the total number of ordinary shares held by the TelstraShareholder carrying, in the aggregate, 51% of the voting rights represented by all of our issued and outstanding ordinary shares; when the totalnumber of ordinary shares held by the Telstra Shareholder drops below 39.3% of all of our issued and outstanding ordinary shares, all Class B ordinaryshares will be automatically converted into the same number of Class A ordinary shares.(3)The business address of Mr. Chen is No. 32, Jihu Rd., Neihu Dist., Taipei City 11492, Taiwan.(4)Represents (i) 3,088,929 Class A ordinary shares held by Right Brain Limited, which is wholly owned by Mr. Qin, (ii) 51,096 Class A ordinary sharesin the form of ADSs converted from restricted shares held by Mr. Qin, and (iii) 200,000 Class A ordinary shares underlying the options that areexercisable within 60 days after February 29, 2016 held by Mr. Qin. The business address of Mr. Qin is 10th Floor, Tower B, CEC Plaza, No. 3 DanLing Street, Haidian District, Beijing 100080, People’s Republic of China.(5)The business address of Mr. Penn is Telstra Corporation Ltd, 242 Exhibition Street, Melbourne, VIC 3000, Australia.(6)Represents 3,000,000 Class A ordinary shares held by AutoLee Ltd., which is wholly owned by Mr. Li. The business address of Mr. Li is No. 339Dongxindian, Cuigezhuang, Chaoyang District, Beijing 100103, People’s Republic of China.(7)Represents Class A ordinary shares in the form of ADSs held by Mr. Chong vested from restricted shares held by Mr. Chong. The business address ofMr. Chong is 10th Floor Tower B, CEC Plaza, No. 3 Dan Ling Street, Haidian District, Beijing 100080, People’s Republic of China.(8)The business address of Ms. Whelan is Telstra, 400 George Street, Sydney NSW 2000, Australia.(9)The business address of Mr. Kotterman is 43/F, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong.(10)The business address of Dr. Kao is Unit 2428, China World Tower One, No. 1 Jianguo Men Wai Avenue, Chaoyang District, Beijing 100004, People’sRepublic of China.(11)Represents Class A ordinary shares in the form of ADSs vested from restricted shares held by Mr. Lee. The business address of Mr. Lee is Room 3303,No. 17, Lane 668 Xizang South Road, Shanghai 200011, Peoples’s Republic of China.(12)Represents Class A ordinary shares in the form of ADSs vested from restricted shares held by Mr. Cui. The business address of Mr. Cui is Apt 96202Beida ZhongGuanXinYuan, 126 ZhongGuanCun North Street, Beijing 100871, People’s Republic of China.(13)Represents Class A ordinary shares in the form of ADSs vested from restricted shares held by Mr. Liu. The business address of Mr. Liu is Floor 3,Building 9, No. 115 Lane 572, Bibo Rd, Pudong, Shanghai, 201203, People’s Republic of China.(14)Represents 61,824,328 Class B ordinary shares. Telstra Holdings Pty Limited is an Australian company and a wholly owned subsidiary of TelstraCorporation Limited, which is a public company traded on the Australian Securities Exchange. Telstra Holdings Pty Limited’s business address isLevel 41, 242 Exhibition Street, Melbourne, VIC 3000, Australia.To our knowledge, as of February 29, 2016, 44,709,123 Class A ordinary shares were held by one record holder in the United States, which wasDeutsche Bank Trust Company Americas, the depositary of our ADS program (excluding 632,026 Class A ordinary shares that are reserved for future grantsunder our share incentive plans). No Class B ordinary shares were held by record holders in the United States. The number of beneficial owners of our ADSs inthe United States is likely to be much larger than the number of record holders of our ordinary shares in the United States.As of February 29, 2016, Telstra beneficially owned 54.6% of the total voting rights in our company. We are not aware of any arrangement that may, ata subsequent date, result in a change of control of our company.ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A.Major ShareholdersPlease refer to “Item 6. Directors, Senior Management and Employees—E. Share Ownership.” 90Table of ContentsB.Related Party TransactionsContractual Agreements with our Variable Interest EntitiesPRC laws and regulations currently limit foreign ownership of companies that engage in internet services. We therefore conduct our part of ouroperations in China primarily through contractual agreements between the following entities: • our wholly owned PRC subsidiary, Beijing Cheerbright Technologies Co., Ltd., or Autohome WFOE, and each of the three groups of entities andindividuals—(i) Beijing Autohome Information Technology Co., Ltd., or Autohome Information, shareholders of Autohome Information and twosubsidiaries of Autohome Information: Beijing Shengtuo Chengshi Advertising Co., Ltd., or Chengshi Advertising, and Beijing ShengtuoAutohome Advertising Co., Ltd., or Autohome Advertising, (ii) Shanghai You Che You Jia Advertising Co., Ltd., or Shanghai Advertising, andshareholders of Shanghai Advertising, and (iii) Guangzhou You Che You Jia Advertising Co., Ltd., or Guangzhou Advertising, and shareholdersof Guangzhou Advertising; and • our wholly owned PRC subsidiary, Beijing Chezhiying Technology Co., Ltd., or Chezhiying WFOE, and each of the group of entities andindividuals, Beijing Shengtuo Hongyuan Information Technology Co., Ltd., or Shengtuo Hongyuan, shareholders of Shengtuo Hongyuan andtwo subsidiaries of Shengtuo Hongyuan: Beijing Autohome Used Car Appraisal Co., Ltd., or Autohome Used Car Appraisal, and BeijingAutohome Used Car Brokerage Co., Ltd., or Autohome Used Car Brokerage.We treat these groups of entities as our VIEs under U.S. GAAP.In July 2015, Autohome Information, Shengtuo Hongyuan and Autohome WFOE entered into a termination agreement, pursuant to which the partiesterminated all contractual agreements among themselves, which includes the equity interest pledge agreement, exclusive technology consulting and serviceagreement, equity option agreement and power of attorney, and Autohome Information transferred all of its equity interest in Shengtuo Hongyuan to JamesZhi Qin and Zheng Fan. In July 2015, Chezhiying WFOE, Shengtuo Hongyuan and each of its subsidiaries, and James Zhi Qin and Zheng Fan entered intocontractual agreements.The following is a summary of our current contractual arrangements among Autohome WFOE, Autohome Information and its subsidiaries andshareholders and among Chezhiying WFOE, Shengtuo Hongyuan and its subsidiaries and shareholders. The contractual agreements among Autohome WFOEand Shanghai Advertising and its shareholders and the contractual agreements among Autohome WFOE and Guangzhou Advertising and its shareholders aresubstantially the same as the contractual agreements among Autohome WFOE, Autohome Information and its shareholders.Agreements that Provide Effective Control over Autohome Information and Shengtuo HongyuanEquity Interest Pledge Agreements. Pursuant to the equity interest pledge agreements between Autohome WFOE and each of the three shareholders ofAutohome Information, each shareholder of Autohome Information pledges to Autohome WFOE all of his equity interests in Autohome Information to securethe performance of such shareholder’s respective obligations and Autohome Information’s obligations under the loan agreements, equity option agreements,and the exclusive technology consulting and service agreements. See “—Contractual Agreements with our Variable Interest Entities—Agreements thatTransfer Economic Benefits of Autohome Information and Shengtuo Hongyuan to Us” and “—Contractual Agreements with our Variable Interest Entities—Agreements that Provide Us the Options to Purchase the Equity Interests in Autohome Information” for a brief description of these obligations. WithoutAutohome WFOE’s consent, shareholders of Autohome Information shall not create or permit to create any encumbrances on the pledged equities inAutohome Information. In the event of default, Autohome WFOE is entitled to request immediate repayment of the outstanding amounts payable under theloan agreements, the equity option agreements and the exclusive technology consulting and service agreements or to dispose of the pledged equity interestsat Autohome WFOE’s sole discretion. The equity pledge agreements have an indefinite term and will terminate after all the secured obligations under theseagreements have been satisfied in full or the pledged equity interests have been transferred to Autohome WFOE or its designee.Pursuant to the equity interest pledge agreements between Autohome WFOE and Autohome Information, Autohome Information pledges to AutohomeWFOE all of its equity interests in its two subsidiaries to secure the performance of its obligations under the exclusive technology consulting and serviceagreements and the equity option agreements. These equity interest pledge agreements contain substantially the same terms as the equity interest pledgeagreements between Autohome WFOE and the shareholders of Autohome Information.In July 2015, Chezhiying WFOE and each of the shareholders of Shengtuo Hongyuan entered into equity interest pledge agreements. The terms ofthese agreements are substantially the same as the equity interest pledge agreements between Autohome WFOE and each of the three shareholders ofAutohome Information described above. In July 2015, Chezhiying WFOE and Shengtuo Hongyuan entered into equity interest pledge agreements. The termsof these agreements are substantially the same as the equity interest pledge agreements between Autohome WFOE and Autohome Information. We are in theprocess of obtaining registration for these equity interest pledge agreements. 91Table of ContentsPower of Attorney. Autohome Information and each of the shareholders of Autohome Information have executed an irrevocable power of attorneyappointing Autohome WFOE, or any person designated by Autohome WFOE, as their attorney-in-fact to vote on their behalf at the shareholders’ meetings ofAutohome Information’s subsidiaries and Autohome Information and to exercise full voting rights as the shareholders of these companies with powersgranted under PRC laws and regulations and the articles of association of each of the above companies, including the rights to appoint directors andmanagement personnel.In July 2015, Shengtuo Hongyuan and each of the shareholders of Shengtuo Hongyuan have executed an irrevocable power of attorney appointingChezhiying WFOE, or any person designated by Chezhiying WFOE, as their attorney-in-fact to vote on their behalf at the shareholders’ meetings ofShengtuo Hongyuan’s subsidiaries and Shengtuo Hongyuan and to exercise full voting rights as the shareholders of these companies with powers grantedunder PRC laws and regulations and the articles of association of each of the above companies, including the rights to appoint directors and managementpersonnel.Agreements that Transfer Economic Benefits of Autohome Information and Shengtuo Hongyuan to UsExclusive Technology Consulting and Service Agreements. Pursuant to the exclusive technology consulting and service agreements betweenAutohome WFOE and each of Autohome Information and its subsidiaries, Autohome WFOE has the exclusive right to provide each of these VIEscomprehensive technology and management consulting services. In addition, Autohome WFOE is obligated to provide financing support to each of theseVIEs to ensure the cash flow requirements of the day-to-day operations of these VIEs. Each of these VIEs is obligated to pay to Autohome WFOE service fees,which are calculated based on such VIE’s revenues reduced by its business taxes and surcharges, operating expenses and an appropriate amount of retainedprofit that is determined pursuant to our tax planning strategies and relevant tax laws. Such service fees may be adjusted by Autohome WFOE at AutohomeWFOE’s sole discretion. Autohome WFOE owns the intellectual properties arising from the performance of these agreements. These agreements have a 30-year term that can be automatically extended for another 10 years at the option of Autohome WFOE and can only be terminated by the parties’ mutual writtenconsent or by Autohome WFOE’s prior 30-day notice at its sole discretion. During the term of these agreements, these VIEs may not enter into anyagreements with third parties for the provision of any technology or management consulting services without prior consent of Autohome WFOE.In July 2015, Chezhiying WFOE and each of Shengtuo Hongyuan and its subsidiaries entered into exclusive technology consulting and serviceagreements. The terms of these agreements are substantially the same as the exclusive technology consulting and service agreements between AutohomeWFOE and each of Autohome Information and its subsidiaries described above.Autohome WFOE and Chezhiying WFOE recognized service fees from all the VIEs in the amount of RMB657.2 million in 2013, RMB980.5 million in2014 and RMB365.5 million (US$56.4 million) in 2015 in consideration for services provided to the VIEs.Loan Agreements. Pursuant to the loan agreements between Autohome WFOE and each of the three shareholders of Autohome Information, AutohomeWFOE granted interest-free loans to these three shareholders of Autohome Information. The loans are to be used solely for the purpose of making capitalcontributions to the registered capital of Autohome Information. The term of the loans is indefinite and must be repaid in the manner specified in theagreements upon written notice from Autohome WFOE at any time in Autohome WFOE’s sole discretion or upon an event of default by the shareholders ofAutohome Information.In July 2015, Chezhiying WFOE and each of the shareholders of Shengtuo Hongyuan entered into loan agreements. The terms of these agreements aresubstantially the same as the loan agreements between Autohome WFOE and each of the three shareholders of Autohome Information described above.Agreements that Provide Us the Options to Purchase the Equity Interests in Autohome Information and Shengtuo HongyuanEquity Option Agreements. Pursuant to the equity option agreements between Autohome WFOE and each of the three shareholders of AutohomeInformation, each shareholder of Autohome Information jointly and severally grants to Autohome WFOE an option to purchase all or part of his equityinterests in Autohome Information at a price equivalent to the lowest price permitted by PRC law. The purchase price is to be offset against the loanrepayments under the loan agreements. If there will be additional payments to be made by Autohome Information to these shareholders required by the PRClaw, these shareholders must immediately return the received payments to Autohome WFOE. Autohome WFOE may exercise its option at any time or transferthe rights and obligations under the equity option agreement to any of its designated parties. The equity option agreements have an indefinite term and willterminate at the earlier of (i) the date on which the equity interests in Autohome Information have been transferred to Autohome WFOE or its designatedparties, or (ii) the unilateral termination by Autohome WFOE. 92Table of ContentsPursuant to the equity option agreements among Autohome WFOE, Autohome Information and each of the two subsidiaries of Autohome Information,Autohome Information granted Autohome WFOE or its designated parties an option to purchase all or part of Autohome Information’s equity interests in itssubsidiaries at a price equivalent to the lowest price permitted by PRC law. Autohome WFOE may exercise its option at any time. The equity optionagreements have an indefinite term and will terminate at the earlier of (i) the date on which all of Autohome Information’s equity interests in its subsidiarieshave been transferred to Autohome WFOE or its designated parties, or (ii) the unilateral termination by Autohome WFOE.In July 2015, Chezhiying WFOE and each of the shareholders of Shengtuo Hongyuan entered into equity option agreements. The terms of theseagreements are substantially the same as the equity option agreements between Autohome WFOE and each of the three shareholders of AutohomeInformation described above. In July 2015, Chezhiying WFOE, Shengtuo Hongyuan and each of the two subsidiaries of Shengtuo Hongyuan entered intoequity option agreements. The terms of these agreements are substantially the same as the equity option agreements among Autohome WFOE, AutohomeInformation and each of the two subsidiaries of Autohome Information.Transactions with Entities Affiliated with Our ShareholdersDuring 2013, Telstra International HK Limited provided network maintenance services amounting to RMB0.1 million to Autohome Information. Inaddition, Telstra International Limited provided network maintenance services amounting to RMB0.3 million, RMB0.4 million and RMB0.3 million(US$0.05 million), respectively, to Autohome Information in 2013, 2014 and 2015, respectively. There was an outstanding balance of RMB0.4 million,RMB0.03 million and nil as of December 31, 2013, 2014 and 2015, respectively. In October 2013, Autohome HK acquired Autohome Media with aconsideration of RMB1.9 million. Autohome Media was 50% owned by the spouse of Mr. Henry Hon, one of our former directors whose resignation waseffective as of March 28, 2014.On October 30, 2013, West Crest Limited and its sole shareholder Mr. Jiang Lan, a then-director of our company, requested that we repurchase itsoutstanding shares in our company, namely 6,684,711 ordinary shares, for a total purchase price of US$130 million. On November 4, 2013, we and TelstraHoldings entered into a share purchase agreement with West Crest Limited, Mr. Jiang Lan and other shareholders of our company. Pursuant to the agreement,we and Telstra Holdings purchased 3,856,564 and 2,828,147 ordinary shares of our company held by West Crest Limited, or the West Crest Share Purchase,for US$75 million and US$55 million, respectively, in cash. We paid fifty percent of the purchase price on November 21 2013, and paid the remainder onJanuary 29, 2014 using proceeds from our initial public offering.During 2013, we and Telstra International Limited entered into an agreement whereby a Telstra executive would provide consulting services to us.Under this agreement, the amount due to Telstra for services provided during 2013 and 2014 amounted to RMB0.4 million and RMB0.3 million,respectively. All outstanding balances have been paid in full as of December 31, 2015.During 2013, we and Beijing Australian Telecommunications Technical Consulting Limited entered into an agreement whereby a Telstra executivewould provide consulting services to us. Under this agreement, the amount due to Beijing Australian Telecommunications Technical Consulting Limited forservices provided during 2013 and 2014 both amounted to RMB0.2 million.In September 2015, we established a joint venture, the Financing JV, with Beijing Chehejia Information Technology Co., Ltd. and two companiesunaffiliated with us. Xiang Li, our director, is the founder of Beijing Chehejia Information Technology Co., Ltd. We invested a full payment of RMB75million into the Financing JV for a 25% equity interest of the Financing JV.Investors Rights AgreementWe and certain of our current shareholders, including Telstra, entered into an investors rights agreement on November 4, 2013. Under the investorsrights agreement, certain shareholders are entitled to registration rights, rights of access to information and pre-emptive rights. 93Table of ContentsRegistration RightsPursuant to our investors rights agreement, we have granted registration rights to certain of our current shareholders. Set forth below is a description ofthe registration rights granted under the agreement.Demand Registration Rights. The Telstra Shareholder has the right to demand that we file a registration statement covering the offer and sale ofsecurities it holds. Upon receipt of a request by the Telstra Shareholder, we should offer other holders of registrable securities the opportunity to register thenumber of registrable shares as such holders may request. We, however, are not obligated to effect a demand registration if the dollar amount of securities tobe sold to the public is of an aggregate price less than US$5.0 million; and we are not obligated to effect a demand registration if, among other things, wehave already filed three demand registrations and each of such registrations has been declared effective. We have the right to defer filing of a registrationstatement for up to 90 days if our board of directors determines in good faith that the filing of a registration statement would be materially detrimental to us,but we cannot exercise the deferral right more than three times in any 12-month period.Piggyback Registration Rights. If we propose to file a registration statement for a public offering of our ordinary shares on a form that would besuitable for registrable securities, we must offer holders of registrable securities an opportunity to include in that registration all or any part of their registrablesecurities. The underwriters of any underwritten offering have the right to limit the number of shares with registration rights to be included in the registrationstatement if a piggyback registration is initiated as a primary underwritten offering on our behalf.Form F-3 Registration Rights. When we are eligible for registration on Form F-3, upon a written request from the Telstra Shareholder, we shall file aregistration statement on Form F-3 covering the offer and sale of the registrable securities owned and designated by them. Upon receipt of a request by theTelstra Shareholder, we should offer other holders of registrable shares the opportunity to register the number of registrable shares as such holders mayrequest. We, however, are not obligated to effect an F-3 resignation if the dollar amount of securities to be sold to the public is of an aggregate price less thanUS$5.0 million. We have the right to defer filing of a registration statement for up to 90 days if our board of directors determines in good faith that the filingof a registration statement would be materially detrimental to us, but we cannot exercise the deferral right more than three times in any 12-month period.Expenses of Registration. We will pay all expenses incurred by us in complying with any demand, Form F-3 or piggyback registration. We are notobligated to pay any underwriting discounts and selling commissions applicable to the sale of a holder’s registrable securities or any fees and expenses ofany counsel representing holders of registrable securities.Termination of Obligations. We shall have no obligation to effect any demand, Form F-3, or piggyback registration if, in the opinion of counsel to us,all such registrable securities proposed to be sold by a holder may then be sold without registration and without regard to any volume limitation requirementunder Rule 144 under the Securities Act. In addition, our obligations relating to registration rights under the investors rights agreement with respect to theTelstra Shareholder shall automatically terminate if the Telstra Shareholder beneficially owns less than 5% of our issued and outstanding shares.Pre-emptive RightsWhen we propose to issue any ordinary shares or securities convertible into ordinary shares, the Telstra Shareholder (for so long as the TelstraShareholder beneficially owns any Class B ordinary shares) is entitled to purchase such number of new securities at its election so as to enable the TelstraShareholder to beneficially hold a pro rata portion of the new securities equal to the respective percentage of our issued and outstanding share capital ownedby the Telstra Shareholder prior to the issuance. If the Telstra Shareholder does not exercise its pre-emptive rights, we are entitled to issue such number of newsecurities at a price no less than that offered to the Telstra Shareholder (as applicable) within 90 business days, which period of time may be extended in orderto comply with applicable laws and regulations (including receipt of any applicable regulatory or shareholder approvals). 94Table of ContentsEmployment AgreementsSee “Item 6. Directors, Senior Management and Employees—B. Compensation of Directors and Executive Officers—Employee Agreements” for adescription of the employment agreements we have entered into with our senior executive officers.Share Incentive PlansSee “Item 6. Directors, Senior Management and Employees—B. Compensation of Directors and Executive Officers” for a description of share-basedcompensation awards we have granted to our directors, officers and other individuals as a group.See footnote 12 to our financial statements for further information about our related party transactions. C.Interests of Experts and CounselNot applicable.ITEM 8. FINANCIAL INFORMATION A.Consolidated Statements and Other Financial InformationSee “Item 18. Financial Statements.”Legal ProceedingsFrom time to time, we may be subject to various claims and legal actions that arise in the ordinary course of our business. There are currently no legalproceedings that, in the opinion of our management, may have a material adverse effect on our business and results of operations.Dividend PolicyOur board of directors has complete discretion, subject to approval by a duly authorized representative of the Telstra Shareholder for so long as theTelstra Shareholder holds at least 51% of our issued and outstanding shares, to declare dividends. Even if our board of directors decides to pay dividends, theform, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractualrestrictions and other factors that the board of directors may deem relevant.Our board of directors declared dividends of RMB49.9 million and RMB249.2 million in February 2012 and May 2013, respectively, to all of ourshareholders. The dividends, net of applicable withholding taxes, were paid in April 2012 and June and July 2013, respectively. We do not have any plan topay additional cash dividends on our ordinary shares in the foreseeable future. We currently intend to retain most, if not all, of our remaining available fundsand any future earnings to operate and expand our business.We are a holding company incorporated in the Cayman Islands. We may rely on dividends from our subsidiaries in China for our cash requirements,including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us. See “Item 4.Information on the Company—B. Business Overview—PRC Regulation—Regulations on Dividend Distribution.”If we pay any dividends, we will pay our ADS holders to the same extent as holders of our ordinary shares, subject to the terms of the depositagreement, including the fees and expenses payable thereunder. See “Item 12. Description of Securities other than Equity Securities—D. AmericanDepositary Shares.” Cash dividends on our ordinary shares, if any, will be paid in U.S. dollars. B.Significant ChangesExcept as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidatedfinancial statements included in this annual report. 95Table of ContentsITEM 9. THE OFFER AND LISTING A.Offering and Listing DetailsSee “—C. Markets.” B.Plan of DistributionNot applicable. C.MarketsOur ADSs, each representing one Class A ordinary share, have been listed on the NYSE since December 2013 and trade under the symbol “ATHM.”The following table provides the high and low trading prices for our ADSs on the NYSE for the periods indicated. Trading Price High Low US$ US$ Annual High and Low Fiscal Year 2013 (from December 11, 2013) US$37.88 US$26.51 Fiscal Year 2014 US$57.93 US$28.50 Fiscal Year 2015 US$56.59 US$28.00 Quarterly Highs and Lows Fourth Fiscal Quarter of 2013 (from December 11, 2013) US$37.88 US$26.51 First Fiscal Quarter of 2014 US$51.98 US$28.52 Second Fiscal Quarter of 2014 US$42.68 US$28.50 Third Fiscal Quarter of 2014 US$57.93 US$31.80 Fourth Fiscal Quarter of 2014 US$53.56 US$34.14 First Fiscal Quarter of 2015 US$47.47 US$34.50 Second Fiscal Quarter of 2015 US$56.59 US$43.27 Third Fiscal Quarter of 2015 US$50.50 US$28.00 Fourth Fiscal Quarter of 2015 US$37.73 US$29.18 Monthly Highs and Lows September 2015 US$34.19 US$28.13 October 2015 US$37.73 US$31.62 November 2015 US$37.63 US$29.18 December 2015 US$37.17 US$30.20 January 2016 US$33.70 US$23.35 February 2016 US$26.34 US$21.53 D.Selling ShareholdersNot applicable. E.DilutionNot applicable. F.Expenses of the IssueNot applicable.ITEM 10. ADDITIONAL INFORMATION A.Share CapitalNot applicable. 96Table of ContentsB.Memorandum and Articles of AssociationWe are a Cayman Islands company and our affairs are governed by our memorandum and articles of association and the Companies Law of the CaymanIslands, referred to as the Companies Law below. The following are summaries of certain provisions of our memorandum and articles of association in effectas of the date of this annual report insofar as they relate to the material terms of our ordinary shares.Registered Office and ObjectsOur registered office in the Cayman Islands is located at Codan Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681,Grand Cayman KY1-1111, Cayman Islands. The memorandum of association provides, inter alia, that the liability of the members of our company is limitedto the amount, if any, for the time being unpaid on the ordinary shares. The objects for which our company is established are unrestricted (including acting asan investment company), and we shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of corporate benefit,as provided in section 27(2) of the Companies Law and in view of the fact that we are an exempted Company, we will not trade in the Cayman Islands withany person, firm or corporation except in furtherance of our business carried on outside the Cayman Islands.Board of DirectorsSee “Item 6. Directors, Senior Management and Employees—C. Board Practices—Duties of Directors” and “— Terms of Directors and Officers.”Ordinary SharesGeneralOur authorized share capital consists of (i) 99,931,211,060 Class A ordinary shares with a par value of US$0.01 each and (ii) 68,788,940 Class Bordinary shares with a par value of US$0.01 each. As of February 29, 2016, we had 51,505,946 Class A ordinary shares (excluding 632,026 Class A ordinaryshares that are reserved for future grants under our share incentive plans) and 61,824,328 Class B ordinary shares issued and outstanding.All of our outstanding ordinary shares, which consist of Class A ordinary shares and Class B ordinary shares, are fully paid and non-assessable.Certificates representing the ordinary shares are issued in registered form. Our shareholders who are non-residents of the Cayman Islands may freely hold andtransfer their ordinary shares.Class Rights of our Class A and Class B Ordinary SharesSubject to our fourth memorandum and articles of association and any resolution of the shareholders to the contrary and without prejudice to anyspecial rights conferred thereby on the holders of any other shares or class of shares, the Class A ordinary shares and Class B ordinary shares carry equal rightsand rank pari passu with one another other than as set out below.ConversionSubject to the provisions of our fourth amended and restated memorandum and articles of association and in compliance with all fiscal and other lawsand regulations applicable thereto, a holder of Class B ordinary shares shall have the right to convert all or any of its Class B ordinary shares into Class Aordinary shares on a one-for-one basis. Upon the transfer of any Class B ordinary shares by the Telstra Shareholder to any person that is not an affiliate of theTelstra Shareholder, such Class B ordinary shares will be converted into an equal number of Class A ordinary shares. When the total number of Class A andClass B ordinary shares held by the Telstra Shareholder represents less than 39.3% of all of our total issued and outstanding shares, all Class B ordinary shareswill be automatically converted into the same number of Class A ordinary shares. In addition, if immediately following the transfer of any ordinary sharesheld by the Telstra Shareholder to any party that is not an affiliate of the Telstra Shareholder, the Telstra Shareholder holds less than 51% of our total numberof outstanding shares, all Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares. Furthermore, upon achange of control event involving the Telstra Shareholder, all Class B ordinary shares shall be automatically converted into the same number of Class Aordinary shares. 97Table of ContentsA holder of Class A ordinary shares has no rights of conversion in respect of each such Class A ordinary share into Class B ordinary shares.DividendsThe holders of our ordinary shares are entitled to such dividends as may be declared by us in general meeting or by our board of directors subject to theCompanies Law and to the fourth amended and restated memorandum and articles of association. So long as the Telstra Shareholder holds at least 51% of ourissued and outstanding shares, the board may not declare any dividend unless the dividend is approved by a duly authorized representative of the TelstraShareholder.Voting RightsSubject to any special rights or restrictions as to voting for the time being attached to any shares, at any general meeting every holder of Class Aordinary shares who is present in person or by proxy (or, in the case of a shareholder being a corporation, by its duly authorized representative) shall have onevote on a show of hands, and on a poll every shareholder holding Class A ordinary shares present in person or by proxy (or, in the case of a shareholder beinga corporation, by its duly appointed representative) shall have one vote for each fully paid Class A ordinary share of which such shareholder is the holder.Subject to any special rights or restrictions as to voting for the time being attached to any shares, at any general meeting every holder of Class Bordinary shares who is present in person or by proxy (or, in the case of a shareholder being a corporation, by its duly authorized representative) shall have thenumber of votes for each fully paid Class B ordinary share calculated as described in the following paragraph.When the total number of ordinary shares held by the Telstra Shareholder constitutes no less than 51% of all of our issued and outstanding ordinaryshares, each Class B ordinary share is entitled to one vote; when the total number of ordinary shares held by the Telstra Shareholder drops below 51% but isno less than 39.3% of all of our issued and outstanding ordinary shares, each Class B ordinary share will carry such number of votes that would result in thetotal number of ordinary shares held by the Telstra Shareholder carrying, in the aggregate, 51% of the voting rights represented by all of our issued andoutstanding ordinary shares; when the total number of ordinary shares held by the Telstra Shareholder drops below 39.3% of all of our issued and outstandingordinary shares, all Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares.A quorum required for a meeting of shareholders consists of two shareholders entitled to vote and present in person or by proxy or, if a corporation orother non-natural person, by its duly authorized representative holding at least one third of the voting rights represented by the issued and outstandingordinary shares throughout the meeting. However, if at any time the Telstra Shareholder holds at least 51% of voting rights represented by all of our issuedand outstanding ordinary shares, two or more members entitled to vote and present in person or by proxy or (in the case of a member being a corporation) byits duly authorized representative representing not less than fifty percent (50%) of the voting rights represented by our issued and outstanding voting sharesthroughout the meeting will form a quorum for all purposes. We may, but are not obligated to, hold a general meeting in each year as our annual generalmeeting. The annual general meeting shall be held at such time and place as may be determined by the directors. Each general meeting, other than an annualgeneral meeting, shall be an extraordinary general meeting. A majority of our board of directors or our chairman may call extraordinary general meetings.Advance notice of at least ten clear days is required for the convening of our annual general meeting and other shareholders meetings. The agenda of anyextraordinary general meeting will be set by a majority of the directors then in office.An ordinary resolution to be passed by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary sharescast in a general meeting, while a special resolution requires the affirmative vote of at least two-thirds of the votes cast attaching to the outstanding ordinaryshares. A special resolution will be required for important matters such as a change of name or making changes to our fourth amended and restatedmemorandum and articles of association. 98Table of ContentsTransfer of Ordinary SharesSubject to the restrictions of our fourth amended and restated memorandum and articles of association, as applicable, any of our shareholders maytransfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or any other form approved by our board of directors.Our board of directors may, in its absolute discretion, decline to register any transfer of any ordinary share which is not fully paid up or on which wehave a lien. Our board of directors may also decline to register any transfer of any ordinary share unless: • the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence asour board of directors may reasonably require to show the right of the transferor to make the transfer; • the instrument of transfer is in respect of only one class of ordinary shares; • the instrument of transfer is properly stamped, if required; and • in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four.If our directors refuse to register a transfer they shall, within three months after the date on which the instrument of transfer was lodged, send to each ofthe transferor and the transferee notice of such refusal.The registration of transfers may, after compliance with any notice required of the Designated Stock Exchange (as defined in the fourth amended andrestated memorandum and articles of association), be suspended and the register closed at such times and for such periods as our board of directors may fromtime to time determine, provided, however, that the registration of transfers shall not be suspended nor the register closed for more than 30 days in any year.LiquidationOn a return of capital on winding up or otherwise (other than on conversion, redemption or purchase of ordinary shares), assets available fordistribution among the holders of ordinary shares shall be distributed among the holders of the ordinary shares on a pro rata basis. The amount received byholders of Class B ordinary shares and Class A ordinary shares should be the same in any liquidation event. If our assets available for distribution areinsufficient to repay all of the paid-up capital, the assets will be distributed so that the losses are borne by our shareholders proportionately.Calls on Ordinary Shares and Forfeiture of Ordinary SharesOur board of directors may from time to time make calls upon shareholders for any amounts unpaid on their ordinary shares in a notice served to suchshareholders at least 14 days prior to the specified time of payment. The ordinary shares that have been called upon and remain unpaid are subject toforfeiture.Redemption of Ordinary SharesSubject to the provisions of the Companies Law, we may repurchase or redeem shares at our option or at the option of the holders of these shares, onsuch terms and in such manner, including out of capital, as may be determined by our board of directors.Variations of Rights of SharesAll or any of the special rights attached to any class of shares may, subject to the provisions of the Companies Law, be varied with the sanction of aspecial resolution passed at a general meeting of the holders of the shares of that class. The rights conferred upon the holders of the shares of any class issuedwith preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by thecreation or issue of further shares ranking pari passu with such existing class of shares. 99Table of ContentsGeneral Meetings of ShareholdersShareholders’ meetings may be convened by a majority of our board of directors or our chairman. Advance notice of at least ten clear days is requiredfor the convening of our annual general shareholders’ meeting and any other general meeting of our shareholders. In addition, general meetings will also beconvened on the requisition in writing of any shareholder or shareholders entitled to attend and vote at our general meetings holding at least one third of thevoting rights represented by our issued voting shares.Appointment of DirectorsSo long as the Telstra Shareholder holds at least 51% of our voting rights, it will be entitled to appoint a majority of our directors and to remove anydirector so appointed. Subject to the foregoing, our shareholders may by ordinary resolution elect any person to fill a casual vacancy or as an addition to theexisting board.The directors will also have the power from time to time and at any time to appoint any person as a director to fill a casual vacancy on the board or asan addition to the existing board.Inspection of Books and RecordsHolders of our ordinary shares have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporaterecords. However, we will allow our shareholders to inspect our register of members and provide our shareholders with annual audited financial statements.Pursuant to the investors rights agreement we have with the Telstra Shareholder and other shareholders, the Telstra Shareholder has the right to accessour books and records so long as it holds in aggregate at least 20% of our issued and outstanding share capital.Issuance of Additional Preferred SharesOur fourth amended and restated memorandum of association authorizes our board of directors to issue additional ordinary shares from time to time asour board of directors shall determine, to the extent of available authorized but unissued shares.Our fourth amended and restated memorandum of association authorizes our board of directors to establish from time to time one or more series ofpreferred shares and to determine, with respect to any series of preferred shares, the terms and rights of that series, including: • the designation of the series; • the number of shares of the series; • the dividend rights, dividend rates, conversion rights, voting rights; and • the rights and terms of redemption and liquidation preferences.Our board of directors may issue preferred shares without action by our shareholders to the extent authorized but unissued. The issuance of preferredshares may be used as an anti takeover device without further action on the part of the shareholders. Issuance of these shares may dilute the voting rights ofholders of ordinary shares. C.Material ContractsWe have not entered into any material contracts other than in the ordinary course of business and other than those described elsewhere in “Item 4.Information on the Company—B. Business Overview,” “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions,” orelsewhere in this annual report. 100Table of ContentsD.Exchange ControlsSee “Item 4. Information on the Company—B. Business Overview—PRC Regulation—Regulations on Foreign Exchange.” E.TaxationCayman Islands TaxationThe Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxationin the nature of inheritance tax or estate duty. There are no other taxes levied by the Government of the Cayman Islands that are likely to be material toholders of ADSs or Class A ordinary shares. The Cayman Islands is not party to any double tax treaties, except for a double tax treaty entered into with theUnited Kingdom in 2010. There are no exchange control regulations or currency restrictions in the Cayman Islands.Pursuant to Section 6 of the Tax Concessions Law (1999 Revision) of the Cayman Islands, we have obtained an undertaking from the Governor-in-Cabinet:(a) that no law which is enacted in the Cayman Islands imposing any tax to be levied on profits or income or gains or appreciation shall apply to us orour operations; and(b) that the aforesaid tax or any tax in the nature of estate duty or inheritance tax shall not be payable on our shares, debentures or other obligations.The undertaking for us is for a period of 20 years from July 22, 2008.People’s Republic of China TaxationWe are a holding company incorporated in the Cayman Islands, which indirectly holds Autohome WFOE, Chezhiying WFOE and other subsidiaries inthe PRC. Our business operations are principally conducted through our PRC subsidiaries and VIEs.The PRC enterprise income tax is calculated based on the taxable income determined under the applicable Enterprise Income Tax Law and itsimplementation rules, which became effective on January 1, 2008. The Enterprise Income Tax Law imposes a uniform enterprise income tax rate of 25% onall resident enterprises in China, including foreign-invested enterprises and domestic enterprises, unless they qualify for certain exceptions.The Enterprise Income Tax Law and its implementation rules permit certain “high and new technology enterprises strongly supported by the state” thathold independent ownership of core intellectual property and simultaneously meet a list of other criteria, financial or non-financial as stipulated in theimplementation rules and other regulations, to enjoy a reduced 15% enterprise income tax rate subject to certain qualification criteria. On April 14, 2008, theState Administration of Taxation, the Ministry of Science and Technology and the Ministry of Finance jointly issued the Administrative Rules for theCertification of High and New Technology Enterprises delineating the specific criteria and procedures for the certification of “high and new technologyenterprises,” or HNTEs.Autohome WFOE, our PRC subsidiary, was recognized by the provincial level science and technology commission, finance bureau, and state and localtax bureaus as an HNTE on September 17, 2010, which is valid for three years. Therefore, Autohome WFOE is entitled to the preferential enterprise incometax rate of 15% from 2010 through 2012. We have obtained renewal of the HNTE qualification through 2015. Beijing Autohome Technologies wasrecognized as an HNTE in July 2015 and therefore was eligible for the preferential 15% enterprise income tax rate from 2015 to 2017 upon their filing withthe relevant tax authority. Beijing Prbrownies was recognized as an HNTE on February 29, 2016, qualifying it for the preferential 15% enterprise income taxrate from 2015 to 2017 upon its filing with the relevant tax authority. However, if we lose this qualification, Autohome WFOE, Beijing AutohomeTechnologies and Beijing Prbrownies will no longer enjoy the 15% preferential tax rate, and the applicable enterprise income tax rate may increase to up to25%. 101Table of ContentsAlthough we believe we are not a PRC resident enterprise for enterprise income tax purposes, substantial uncertainty exists. In the event that ourcompany or any of our Offshore Entities, is considered to be a PRC resident enterprise: (a) our company or our Offshore Entities, as the case may be, would besubject to the PRC enterprise income tax at the rate of 25% on worldwide income; and (b) dividend income that our company or our Offshore Entities, as thecase may be, receives from our PRC subsidiaries would be exempt from the PRC withholding tax since such income is exempted under the Enterprise IncomeTax Law for PRC resident enterprise; and (c) any dividends we pay to our non-PRC shareholders or ADS holders as well as gains realized by suchshareholders or ADS holders from the transfer of our shares or ADSs may be regarded as China-sourced income and as a result become subject to PRCwithholding tax at a rate of up to 10%, subject to reduction or exemption by an applicable treaty. See “Item 3. Key Information—D. Risk Factors—RisksRelated to Doing Business in China—Our global income and the dividends that we may receive from our PRC subsidiaries, dividends distributed to our non-PRC shareholders and ADS holders, and gains recognized by such shareholders or ADS holders, may be subject to PRC taxes under the Enterprise IncomeTax Law, which would have a material adverse effect on our results of operations.” 102Table of ContentsDividend Withholding TaxWe are a Cayman Islands holding company and substantially all of our income will come from dividends distributed by our subsidiaries located in thePRC through our Offshore Entities. Pursuant to the Enterprise Income Tax Law and its implementation rules, dividends from our PRC subsidiaries paid out ofprofits generated after January 1, 2008, are subject to a withholding tax of 10%, unless there is a tax treaty with China that provides for a differentwithholding arrangement. The British Virgin Islands currently does not have any tax treaty with China with respect to withholding tax.Pursuant to the Arrangement between mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation andTax Evasion on Income, the withholding tax rate with respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise is reduced to 5%from a standard rate of 10% if the Hong Kong enterprise directly holds at least 25% of the PRC enterprise. Distributions of profits generated before January 1,2008 are exempt from PRC withholding tax. Our board of directors declared dividends of RMB49.9 million and RMB249.2 million in February 2012 andMay 2013, respectively, to all of our shareholders. The dividends, net of applicable withholding tax, were paid in April 2012 and June and July 2013,respectively. We do not have any plan to pay additional cash dividends on our ordinary shares in the foreseeable future. The board of Autohome WFOE hasresolved to reinvest all its undistributed earnings indefinitely in Autohome WFOE. We currently intend to retain most, if not all, of our remaining availablefunds and any future earnings to operate and expand our business.As uncertainties remain regarding the interpretation and implementation of the Enterprise Income Tax Law and its implementation rules, we cannotassure you that, if we are deemed a PRC resident enterprise, any dividends to be distributed by us to our non-PRC shareholders and ADS holders would not besubject to any PRC withholding tax. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Our global income and thedividends that we may receive from our PRC subsidiaries, dividends distributed to our non-PRC shareholders and ADS holders, and gains recognized by suchshareholders or ADS holders, may be subject to PRC taxes under the Enterprise Income Tax Law, which would have a material adverse effect on our results ofoperations.” 103Table of ContentsUnited States Federal Income Tax ConsiderationsThe following discussion is a summary of United States federal income tax considerations relating to the ownership and disposition of our ADSs orClass A ordinary shares by U.S. Holders (as defined below) that will hold ADSs or Class A ordinary shares as “capital assets” (generally, property held forinvestment) under the United States Internal Revenue Code of 1986, as amended (the “Code”). This discussion is based upon applicable provisions of theInternal Revenue Code, Treasury regulations (proposed, temporary and final) promulgated thereunder, pertinent judicial decisions, interpretive rulings of theInternal Revenue Service and such other authorities as we have considered relevant, which are subject to change, possibly with retroactive effect. Thisdiscussion does not address all aspects of United States federal income taxation that may be important to particular investors in light of their individualinvestment circumstances, including investors subject to special tax rules (for example, certain financial institutions, insurance companies, broker-dealers,pension plans, regulated investment companies, real estate investment trusts, cooperatives, and tax-exempt organizations (including private foundations),holders who are not U.S. Holders, holders who own (directly, indirectly, or constructively) 10% or more of our voting stock, investors that will hold theirADSs or Class A ordinary shares as part of a straddle, hedge, conversion, constructive sale, or other integrated transaction for United States federal income taxpurposes, investors that are traders in securities that have elected the mark-to-market method of accounting, or investors that have a functional currency otherthan the United States dollar), all of whom may be subject to tax rules that differ significantly from those discussed below. In addition, this discussion doesnot address United States federal estate, gift, Medicare, and alternative minimum tax considerations, or any non-United States, state, or local taxconsiderations. Each U.S. Holder is urged to consult its tax advisors regarding the United States federal, state, local, and non-United States income and othertax considerations of an investment in ADSs or Class A ordinary shares.GeneralFor purposes of this summary, a “U.S. Holder” is a beneficial owner of our ADSs or Class A ordinary shares that is, for United States federal income taxpurposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation, or other entity treated as a corporation for United States federalincome tax purposes, created in, or organized under the laws of the United States or any state thereof or the District of Columbia, or treated as such for UnitedStates federal income tax purposes, (iii) an estate the income of which is includible in gross income for United States federal income tax purposes regardlessof its source, or (iv) a trust (A) the administration of which is subject to the primary supervision of a United States court and which has one or more UnitedStates persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a United Statesperson under the Code.If a partnership (or other entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of our ADSs or Class Aordinary shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. If aU.S. Holder is a partner of a partnership holding our ADSs or Class A ordinary shares, the U.S. Holder is urged to consult its tax advisors regarding aninvestment in our ADSs or Class A ordinary shares.It is generally expected that a U.S. Holder of ADSs will be treated as the beneficial owner, for United States federal income tax purposes, of theunderlying shares represented by the ADSs. The remainder of this discussion assumes that a U.S. Holder of our ADSs will be treated in this manner.Accordingly, deposits or withdrawals of our Class A ordinary shares for our ADSs will not be subject to United States federal income tax.Passive Foreign Investment Company ConsiderationsA non-United States corporation, such as our company, will be classified as a “passive foreign investment company” (or a “PFIC”), for United Statesfederal income tax purposes for any taxable year, if either (i) 75% or more of its gross income for such year consists of certain types of “passive” income or(ii) 50% or more of the value of its assets (determined on the basis of a quarterly average) during such year produce or are held for the production of passiveincome (the “asset test”). Passive income generally includes dividends, interest, royalties, rents, annuities, net gains from the sale or exchange of propertyproducing such income and net foreign currency gains. For this purpose, cash is categorized as a passive asset and the company’s goodwill and otherunbooked intangibles associated with active business activity are taken into account as non-passive assets. We will be treated as owning our proportionateshare of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, more than 25% (byvalue) of the stock.Although the law in this regard is unclear, we treat our VIEs as being owned by us for United States federal income tax purposes, not only because weexercise effective control over the operation of such entities but also because we are entitled to substantially all of their economic benefits, and, as a result,we consolidate their results of operation in our consolidated financial statements. If it were determined, however, that we are not the owner of our VIEs forUnited States federal income tax purposes, we would likely be treated as a PFIC for our current and any subsequent taxable year. 104Table of ContentsFurthermore, the determination of whether we will be or become a PFIC will depend, in part, on the composition of our income and assets. Fluctuationsin the market price of our ADSs may cause us to become a PFIC for the current or subsequent taxable years because the value of assets for the purpose of theasset test may be determined by reference to the market price of our ADSs. The composition of our income and assets may also be affected by how, and howquickly, we use our liquid assets. Under circumstances where our revenue from activities that produce passive income significantly increase relative to ourrevenue from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk ofbecoming classified as a PFIC may substantially increase. In addition, because there are uncertainties in the application of the relevant rules, it is possiblethat the Internal Revenue Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangibleassets, each of which may result in our becoming a PFIC for the current or subsequent taxable years.Assuming we are the owner of our VIEs for U.S. federal income tax purposes, we believe that we primarily operate as an active provider of onlineautomotive advertising solutions in China. Based on our current income and assets, we do not believe that we were a PFIC for the taxable year endedDecember 31, 2015 and do not anticipate becoming a PFIC in future taxable years. While we do not believe that we were a PFIC for the taxable year endedDecember 31, 2015 and do not anticipate becoming a PFIC for the current taxable year or the foreseeable future, no assurance can be given in this regard.Because the determination of whether we will be or become a PFIC is a fact-intensive inquiry made on an annual basis, the determination of whether we willbe or become a PFIC will depend, in part, upon the value of our goodwill and other unbooked intangibles (which will depend upon the market value of ourADSs from time to time, which may be volatile). In estimating the value of our goodwill and other unbooked intangibles, we have taken into account ourcurrent market capitalization. If our market capitalization subsequently declines, we may be or become classified as a PFIC for the current taxable year orfuture taxable years. It is also possible that the Internal Revenue Service may challenge our classification or valuation of our goodwill and other unbookedintangibles, which may result in our company being or becoming a PFIC for the current taxable year or foreseeable future.If we are classified as a PFIC for any taxable year during which a U.S. Holder holds our ADSs or Class A ordinary shares, the PFIC tax rules discussedbelow under “Passive Foreign Investment Company Rules” generally will apply to such U.S. Holder for such taxable year and, unless the U.S. Holder makescertain elections, will apply in future years even if we cease to be a PFIC in subsequent years. The discussion below under “Dividends” and “Sale or OtherDisposition of ADSs or Class A Ordinary Shares” is written on the basis that we will not be classified as a PFIC for United States federal income tax purposes.DividendsAny cash distributions (including the amount of any PRC tax withheld) paid on ADSs or Class A ordinary shares out of our earnings and profits, asdetermined under United States federal income tax principles, will generally be includible in the gross income of a U.S. Holder as dividend income on theday actually or constructively received by the U.S. Holder, in the case of Class A ordinary shares, or by the depositary bank, in the case of ADSs. Because wedo not intend to determine our earnings and profits on the basis of United States federal income tax principles, any distribution paid will generally be treatedas a “dividend” for United States federal income tax purposes. Non-corporate U.S. Holders receiving dividend income generally will be subject to tax on suchdividend income from a “qualified foreign corporation” at a lower applicable capital gains rate rather than the marginal tax rates generally applicable toordinary income provided that certain holding period and other requirements are met. A non-United States corporation (other than a corporation that isclassified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) generally will be considered to be a qualified foreigncorporation (i) with respect to any dividend it pays on stock (or ADSs in respect of such stock) which is readily tradable on an established securities market inthe United States, or (ii) if it is eligible for the benefits of a comprehensive tax treaty with the United States that the Secretary of Treasury of the United Statesdetermines is satisfactory for purposes of this provision and that includes an exchange of information program. Our ADSs are listed on the NYSE, which is anestablished securities market in the United States, and will be considered readily tradable on an established securities market for as long as the ADSs continueto be listed on such exchange. Thus, we believe that we will be a qualified foreign corporation with respect to dividends we pay on our ADSs, but there canbe no assurance that our ADSs will continue to be considered readily tradable on an established securities market in later years. 105Table of ContentsSince we do not expect that our Class A ordinary shares be listed on established securities markets, it is unclear whether dividends that we pay on ourordinary shares that are not backed by ADSs currently meet the requirements for the reduced tax rate. However, in the event that we are deemed to be a PRCresident enterprise under the Enterprise Income Tax Law (see “People’s Republic of China Taxation”), we may be eligible for the benefits of the UnitedStates-PRC income tax treaty, which the United States Treasury Department has determined is satisfactory for this purpose, and be treated as a qualifiedforeign corporation with respect to dividends paid on our ADSs or Class A ordinary shares. Dividends received on our ADSs or Class A ordinary shares willnot be eligible for the dividends-received deduction allowed to corporations. Each U.S. Holder is advised to consult its tax advisors regarding the availabilityof the reduced tax rate applicable to qualified dividend income for any dividends we pay with respect to our ADSs or Class A ordinary shares.Dividends generally will be treated as income from foreign sources for United States foreign tax credit purposes. In the event that we are deemed to be aPRC resident enterprise under the Enterprise Income Tax Law, a U.S. Holder may be subject to PRC withholding taxes on dividends paid on our ADSs orClass A ordinary shares. A U.S. Holder may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of any foreignwithholding taxes imposed on dividends received on ADSs or Class A ordinary shares. A U.S. Holder who does not elect to claim a foreign tax credit forforeign tax withheld may instead claim a deduction, for United States federal income tax purposes, in respect of such withholding taxes, but only for a year inwhich such U.S. Holder elects to do so for all creditable foreign income taxes. The rules governing the foreign tax credit are complex and U.S. Holders areurged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.Sale or Other Disposition of ADSs or Class A Ordinary SharesA U.S. Holder will generally recognize capital gain or loss upon the sale or other disposition of ADSs or Class A ordinary shares in an amount equal tothe difference between the amount realized upon the disposition and the holder’s adjusted tax basis in such ADSs or Class A ordinary shares. Any capital gainor loss will be long-term gain or loss if the ADSs or Class A ordinary shares have been held for more than one year and will generally be United States-sourcegain or loss for United States foreign tax credit purposes. Long-term capital gain of non-corporate U.S. Holders is generally eligible for reduced rates oftaxation. In the event that gain from the disposition of the ADSs or Class A ordinary shares is subject to tax in the PRC, a U.S. Holder that is eligible for thebenefits of the United States-PRC income tax treaty may elect to treat the gain as PRC-source income. The deductibility of a capital loss may be subject tolimitations. U.S. Holders are urged to consult their tax advisors regarding the tax consequences if a foreign tax is imposed on a disposition of our ADSs orClass A ordinary shares, including the availability of the foreign tax credit under their particular circumstances.Passive Foreign Investment Company RulesIf we are classified as a PFIC for any taxable year during which a U.S. Holder holds our ADSs or Class A ordinary shares, and unless the U.S. Holdermakes a mark-to-market election with respect to ADSs (as described below), the U.S. Holder will generally be subject to special tax rules that have apenalizing effect, regardless of whether we remain a PFIC, on (i) any excess distribution that we make to the U.S. Holder (which generally means anydistribution paid during a taxable year that is greater than 125% of the average annual distributions paid in the three preceding taxable years or, if shorter, theU.S. Holder’s holding period for the ADSs or Class A ordinary shares), and (ii) any gain realized on the sale or other disposition, including a pledge, undercertain circumstances, of ADSs or Class A ordinary shares. Under these PFIC rules: • the U.S. Holder’s excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or Class A ordinaryshares; • the amount allocated to the current taxable year and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in whichwe are classified as a PFIC (each, a “pre-PFIC year”) will be taxable as ordinary income; 106Table of Contents • the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect applicable toindividuals or corporations, as appropriate, for that year; • an additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the tax attributable to each priortaxable year, other than a pre-PFIC year.If we are a PFIC for any taxable year during which a U.S. Holder holds our ADSs or Class A ordinary shares and any of our non-United Statessubsidiaries is also a PFIC (i.e., a lower-tier PFIC), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC and would be subject to the rules described above on certain distributions by a lower-tier PFIC and a disposition of shares of a lower-tier PFIC eventhough such U.S. Holder would not receive the proceeds of those distributions or dispositions. U.S. Holders are urged to consult their tax advisors regardingthe application of the PFIC rules to any of our subsidiaries.As an alternative to the foregoing rules, a U.S. Holder of “marketable stock” in a PFIC may make a mark-to-market election with respect to our ADSs,provided that the ADSs are regularly traded on the NYSE. We anticipate that the ADSs should qualify as being regularly traded, but no assurances may begiven in this regard. If a U.S. Holder makes this election, the U.S. Holder will generally (i) include as ordinary income for each taxable year the excess, if any,of the fair market value of ADSs held at the end of the taxable year over the adjusted tax basis of such ADSs and (ii) deduct as an ordinary loss the excess, ifany, of the adjusted tax basis of such ADSs over the fair market value of such ADSs held at the end of the taxable year, but such deduction will be allowedonly to the extent of the amount previously included in income as a result of the mark-to-market election. The U.S. Holder’s adjusted tax basis in the ADSswould be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U.S. Holder makes a mark-to-market election in respect of acorporation classified as a PFIC and such corporation ceases to be classified as a PFIC, the U.S. Holder will not be required to take into account the gain orloss described above during any year that such corporation is not classified as a PFIC. If a U.S. Holder makes a mark-to-market election, any gain such U.S.Holder recognizes upon the sale or other disposition of our ADSs in a year when we are a PFIC will be treated as ordinary income and any loss will be treatedas ordinary loss, but such loss will only be treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-market election. In the case of a U.S. Holder who has held ADSs or Class A ordinary shares during any taxable year in respect of which we were classified as aPFIC and continues to hold such ADSs or Class A ordinary shares (or any portion thereof) and has not previously made a mark-to-market election, and if suchU.S. Holder makes a mark-to-market election, special tax rules may apply relating to purging the PFIC taint of such ADSs or Class A ordinary shares.Because, as a technical matter, a mark-to-market election cannot be made for any lower-tier PFICs that we may own, a U.S. Holder may continue to besubject to the PFIC rules with respect to its indirect interest in any investments held by us that are treated as an equity interest in a PFIC for United Statesfederal income tax purposes.We do not intend to provide information necessary for U.S. Holders to make “qualified electing fund” elections which, if available, would result in taxtreatment different from the general tax treatment for PFICs described above.Dividends that we pay on our ADSs or Class A ordinary shares will not be eligible for the reduced tax rate that applies to qualified dividend incomediscussed above under “Dividends” if we are classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year. If a U.S.Holder owns our ADSs or Class A ordinary shares during any taxable year that we are a PFIC, the U.S. Holder must generally file an annual report with theInternal Revenue Service, subject to certain limited exceptions. Each U.S. Holder is urged to consult its tax advisor concerning the United States federalincome tax consequences of owning and disposing of our ADSs or Class A ordinary shares if we are or become a PFIC, including filing requirements, thepossibility of making a mark-to-market election and the unavailability of the qualifying electing fund election.Information ReportingCertain U.S. Holders are required to report information to the Internal Revenue Service relating to an interest in “specified foreign financial assets,”including shares issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign financial assets exceeds$50,000 (or a higher dollar amount prescribed by the Internal Revenue Service), subject to certain exceptions (including an exception for shares held incustodial accounts maintained with a U.S. financial institution). These rules also impose penalties if a U.S. Holder is required to submit such information tothe Internal Revenue Service and fails to do so. 107Table of ContentsIn addition, dividend payments with respect to our ADSs or Class A ordinary shares and proceeds from the sale or other disposition of our ADSs orClass A ordinary shares may be subject to information reporting to the Internal Revenue Service. U.S. Holders are urged to consult their tax advisorsregarding the application of the United States information reporting rules to their particular circumstances. F.Dividends and Paying AgentsNot applicable. G.Statement by ExpertsNot applicable. H.Documents on DisplayWe previously filed with the SEC a registration statement on Form F-1 under the Securities Act with respect to our initial public offering of our Class Aordinary shares represented by ADSs.We are subject to the periodic reporting and other informational requirements of the Securities Exchange Act of 1934, or the Exchange Act. Under theExchange Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F within fourmonths after the end of each fiscal year, which is December 31. The SEC maintains a website at www.sec.gov that contains reports, proxy and informationstatements, and other information regarding registrants that make electronic filings with the SEC using its EDGAR system. Copies of reports and otherinformation, when filed, may also be inspected without charge, and may be obtained at prescribed rates at the public reference facilities maintained by theSEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. The public may obtain information regarding the Washington, D.C. Public Reference Roomby calling the SEC at 1-800-SEC-0330. As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing andcontent of quarterly reports and proxy statements, and officers, directors and principal shareholders are exempt from the reporting and short-swing profitrecovery provisions contained in Section 16 of the Exchange Act.We will furnish Deutsche Bank Trust Company Americas, the depositary of our ADSs, with our annual reports, which will include a review ofoperations and annual audited consolidated financial statements prepared in conformity with U.S. GAAP, and all notices of shareholders’ meetings and otherreports and communications that are made generally available to our shareholders. The depositary will make such notices, reports and communicationsavailable to holders of ADSs and, upon our request, will mail to all record holders of ADSs the information contained in any notice of a shareholders’ meetingreceived by the depositary from us. I.Subsidiary InformationFor a listing of our subsidiaries, see “Item 4. Information on the Company—C. Organizational Structure.”ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKInterest Rate RiskOur exposure to interest rate risk primarily relates to the interest income generated by excess cash, which is mostly held in interest-bearing bankdeposits. We have not used derivative financial instruments in our investment portfolio. Interest earning instruments carry a degree of interest rate risk. Wehave not been exposed to, nor do we anticipate being exposed to, material risks due to changes in market interest rates. However, our future interest incomeand interest expense may fluctuate due to changes in market interest rates. 108Table of ContentsForeign Exchange RiskWe earn substantially all of our revenues and incur most of our expenses in RMB, and substantially all of our sales contracts are denominated in RMB.We do not believe that we currently have any significant direct foreign exchange risk and have not used any derivative financial instruments to hedge ourexposure to such risk. Although in general, our exposure to foreign exchange risks should be limited, the value of your investment in our ADSs will beaffected by the exchange rate between the U.S. dollar and the RMB because the value of our business is effectively denominated in RMB, while the ADSswill be traded in U.S. dollars. Based on the amount of our cash and cash equivalents and term deposits as of December 31, 2015, a 1.0% change in theexchange rate between the Renminbi and the U.S. dollar would result in an increase or decrease of approximately US$1.4 million to our cash and cashequivalents and term deposits.Significant revaluation of RMB against U.S. dollar may materially affect our earnings and financial position, the conversion of RMB into foreigncurrencies, including U.S. dollars, is based on rates set by the People’s Bank of China. In July 2005, the PRC government changed its decades-old policy ofpegging the value of the RMB to the U.S. dollar, and the RMB appreciated more than 20% against the U.S. dollar over the following three years. BetweenJuly 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the U.S. dollar remained within a narrow band. Since June2010, the RMB has fluctuated against the U.S. dollar, at times significantly and unpredictably. It is difficult to predict how market forces or PRC or U.S.government policy may impact the exchange rate between the RMB and the U.S. dollar in the future.To the extent that we need to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation ofthe RMB against the U.S. dollar would have an adverse effect on the RMB amount we would receive from the conversion. Conversely, if we decide to convertRMB into U.S. dollars for the purpose of making payments for dividends on our ordinary shares or ADSs, strategic acquisitions or investments or otherbusiness purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount available to us.ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES A.Debt SecuritiesNot applicable. B.Warrants and RightsNot applicable. C.Other SecuritiesNot applicable. D.American Depositary SharesFees and Charges Our ADS Holders May Have to PayAs an ADS holder, you will be required to pay the following service fees to the depositary bank: Service Fees• Issuance of ADSs, including issuances resulting from a distribution ofshares or rights or other property Up to US$0.05 per ADS issued• Cancellation of ADSs, including in the case of termination of the depositagreement Up to US$0.05 per ADS cancelled 109Table of Contents• Distribution of cash dividends or other cash distributions Up to US$0.05 per ADS held• Distribution of ADSs pursuant to share dividends, free share distributions orexercise of rights Up to US$0.05 per ADS held• Distribution of securities other than ADSs or rights to purchase additionalADSs A fee equivalent to the fee that would be payable if securities distributed toyou had been Class A ordinary shares and the Class A ordinary shares hadbeen deposited for issuance of ADSs• Depositary services Up to US$0.05 per ADS held on the applicable record date(s) established bythe depositary bank• Transfer of ADRs US$1.50 per certificate presented for transferAs an ADS holder, you will also be responsible for paying certain fees and expenses incurred by the depositary bank and certain taxes andgovernmental charges (in addition to any applicable fees, expenses, taxes and other governmental charges payable on the deposited securities represented byany of your ADSs) such as: • Fees for the transfer and registration of Class A ordinary shares charged by the registrar and transfer agent for the Class A ordinary shares in theCayman Islands (i.e., upon deposit and withdrawal of Class A ordinary shares). • Expenses incurred for converting foreign currency into U.S. dollars. • Expenses for cable, telex and fax transmissions and for delivery of securities. • Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e.,when Class A ordinary shares are deposited or withdrawn from deposit). • Fees and expenses incurred in connection with the delivery or servicing of Class A ordinary shares on deposit. • Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable toClass A ordinary shares, deposited securities, ADSs and ADRs. • Any applicable fees and penalties thereon.The depositary fees payable upon the issuance and cancellation of ADSs are typically paid to the depositary bank by the brokers (on behalf of theirclients) receiving the newly issued ADSs from the depositary bank and by the brokers (on behalf of their clients) delivering the ADSs to the depositary bankfor cancellation. The brokers in turn charge these fees to their clients. Depositary fees payable in connection with distributions of cash or securities to ADSholders and the depositary services fee are charged by the depositary bank to the holders of record of ADSs as of the applicable ADS record date.The depositary fees payable for cash distributions are generally deducted from the cash being distributed or by selling a portion of distributableproperty to pay the fees. In the case of distributions other than cash (i.e., share dividends, rights), the depositary bank charges the applicable fee to the ADSrecord date holders concurrent with the distribution. In the case of ADSs registered in the name of the investor (whether certificated or uncertificated in directregistration), the depositary bank sends invoices to the applicable record date ADS holders. In the case of ADSs held in brokerage and custodian accounts(via DTC), the depositary bank generally collects its fees through the systems provided by DTC (whose nominee is the registered holder of the ADSs held inDTC) from the brokers and custodians holding ADSs in their DTC accounts. The brokers and custodians who hold their clients’ ADSs in DTC accounts inturn charge their clients’ accounts the amount of the fees paid to the depositary banks. 110Table of ContentsIn the event of refusal to pay the depositary fees, the depositary bank may, under the terms of the deposit agreement, refuse the requested service untilpayment is received or may set off the amount of the depositary fees from any distribution to be made to the ADS holder.Fees and Other Payments Made by the Depositary to UsDeutsche Bank Trust Company Americas, as depositary, has agreed to reimburse us for a portion of certain expenses we incur that are related toestablishment and maintenance of the ADR program, including investor relations expenses. There are limits on the amount of expenses for which thedepositary will reimburse us, but the amount of reimbursement available to us is not related to the amounts of fees the depositary collects from investors.Further, the depositary has agreed to reimburse us certain fees payable to the depositary by holders of ADSs. Neither we nor the depositary can determine theexact amount to be made available to us because (i) the number of ADSs that will be issued and outstanding, (ii) the level of service fees to be charged toholders of ADSs and (iii) our reimbursable expenses related to the program are not known at this time. In our most recent fiscal year, we have received fromthe depositary a reimbursement of approximately US$63,000.PART IIITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIESNone.ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDSSee “Item 10. Additional Information” for a description of the rights of securities holders, which remain unchanged.The following “Use of Proceeds” information relates to: • the registration statement on Form F-1, as amended (File Number 333-192085) for our initial public offering of 8,993,000 ADSs (reflecting thefull exercise of the over-allotment option by the underwriters to purchase an additional 1,173,000 ADSs), representing 8,993,000 Class Aordinary shares, which registration statement was declared effective by the SEC on December 10, 2013. Deutsche Bank Securities Inc. andGoldman Sachs (Asia) L.L.C. acted as the representatives of the underwriters in our initial public offering; and • the registration statement on Form F-1, as amended (File Number 333-199862) for our 2014 Offering of 9,645,659 ADSs (reflecting the partialexercise of the over-allotment option by the underwriters to purchase an additional 1,145,659 ADSs), representing 9,645,659 Class A ordinaryshares, which registration statement was declared effective by the SEC on November 19, 2014. Deutsche Bank Securities Inc. and Goldman Sachs(Asia) L.L.C. acted as the representatives of the underwriters in our 2014 Offering.We incurred expenses and paid to others US$12.8 million for underwriting discounts and commissions in connection with our initial public offeringfrom the effective date of the registration statement for the initial public offering to December 31, 2014. We incurred expenses and paid to othersUS$5.0 million for underwriting discounts and commissions in connection with our 2014 Offering from the effective date of the registration statement for the2014 Offering to December 31, 2014. We received net proceeds of approximately US$142.6 million and US$97.3 million from our initial public offering and2014 Offering (together, the “Offerings”), respectively.In 2015, we used approximately US$21 million of the net proceeds from the Offerings for payment of establishment of new subsidiaries, investment injoint venture, professional fees, insurance fees, compensation to directors and general corporate purposes.We intend to use the remainder of the proceeds from the Offerings for general corporate purposes, including funding potential investments andacquisitions of complementary businesses, assets and technologies. 111Table of ContentsITEM 15. CONTROLS AND PROCEDURESEvaluation of Disclosure Controls and ProceduresOur management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness ofour disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as requiredby Rule 13a-15(b) under the Exchange Act. Based on that evaluation, our management has concluded that, as of December 31, 2015, our disclosure controlsand procedures were effective.Management’s Annual Report on Internal Control over Financial ReportingOur management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and15d-15(f) under the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of consolidated financial statements in accordance with U.S. GAAP and includes those policies and procedures that(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of a company’s assets,(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance withgenerally accepted accounting principles, and that a company’s receipts and expenditures are being made only in accordance with authorizations of acompany’s management and directors, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ordisposition of a company’s assets that could have a material effect on the consolidated financial statements. Our management, with the participation of ourchief executive officer and chief financial officer, conducted an evaluation of the effectiveness of our company’s internal control over financial reporting asof December 31, 2015 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of theTreadway Commission (2013 Framework). Based on this evaluation, our management concluded that our internal control over financial reporting waseffective as of December 31, 2015.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, any evaluation ofeffectiveness as to future periods is subject to the risks that controls may become inadequate because of changes in conditions, or that the degree ofcompliance with the policies or procedures may deteriorate.Ernst & Young Hua Ming LLP, our independent registered public accounting firm, audited the effectiveness of our company’s internal control overfinancial reporting as of December 31, 2015 and has issued an attestation report set forth below.Report of Independent Registered Public Accounting FirmThe Board of Directors and Shareholders of Autohome Inc.We have audited Autohome Inc.’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the “COSO criteria”).Autohome Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness ofinternal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Ourresponsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in allmaterial respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weaknessexists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures aswe considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 112Table of ContentsA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’sinternal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on thefinancial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of anyevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedures may deteriorate.In our opinion, Autohome Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based onthe COSO criteria.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balancesheets of Autohome Inc. as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, cash flows and changes inshareholders’ equity for each of the three years in the period ended December 31, 2015 of Autohome Inc. and our report dated March 17, 2016 expressed anunqualified opinion thereon. /s/ Ernst & Young Hua Ming LLPBeijing, the People’s Republic of ChinaMarch 17, 2016Changes in Internal Control Over Financial ReportingThere were no changes in our internal control over financial reporting that occurred during the year ended December 31, 2015 that have materiallyaffected, or are reasonably likely to materially affect, our internal control over financial reporting.ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERTOur board of directors has determined that Mr. Ted Tak-Tai Lee is our audit committee financial expert, who is an independent director under thestandards set forth in Section 303A of the NYSE Listed Company Manual and Rule 10A-3 of the Exchange Act. Mr. Lee is the chairman of our auditcommittee.ITEM 16B. CODE OF ETHICSOur board of directors has adopted a code of business conduct and ethics that applies to our directors, officers, employees and agents, including certainprovisions that specifically apply to our chairman, chief executive officer, chief financial officer, controller, vice presidents and any other persons whoperform similar functions for us. We filed our code of business conduct and ethics as Exhibit 99.1 to our registration statement on Form F-1, as amended,which was originally filed with the SEC on November 4, 2013 and subsequently amended and filed with this annual report. We have posted a copy of ourcode of business conduct and ethics on our website at http://ir.autohome.com.cn.ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICESThe following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by Ernst &Young Hua Ming LLP, our independent registered public accounting firm, for the periods indicated. We did not pay any other fees to our independentregistered public accounting firm during the periods other than those indicated below. For the Year Ended December 31, 2014 2015 (in RMB thousands) Audit fees(1) 8,138 7,853 Audit-related fees(2) 2,168 — 113Table of Contents (1)“Audit fees” means the aggregate fees billed for professional services rendered by our independent registered public accounting firm for the audit ofour annual financial statements, the audit of our internal control over financial reporting and the review of our comparative interim financialinformation.(2)“Audit-related fees” represents aggregate fees billed for professional services rendered by our principal auditor for the assurance and related services,which were not included under “Audit Fees” above.The policy of our audit committee is to preapprove all audit and nonaudit services provided by Ernst & Young Hua Ming LLP, including auditservices and audit-related services as described above, other than those for de minimis services which are approved by the audit committee prior to thecompletion of the audit. Our audit committee has approved all of our audit fees for the year ended December 31, 2015.ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEESNot applicable.ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERSNone.ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANTNot applicable.ITEM 16G. CORPORATE GOVERNANCEWe have followed and intend to follow the applicable NYSE corporate governance listing standards.ITEM 16H. MINE SAFETY DISCLOSURENot applicable.PART IIIITEM 17. FINANCIAL STATEMENTSWe have elected to provide financial statements pursuant to Item 18.ITEM 18. FINANCIAL STATEMENTSThe consolidated financial statements of Autohome Inc. are included at the end of this annual report. 114Table of ContentsITEM 19. EXHIBITS ExhibitNumber Description of Document 1.1 Fourth Amended and Restated Memorandum and Articles of Association of the Registrant, adopted on November 27, 2013 (incorporated hereinby reference to Exhibit 3.2 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities andExchange Commission on November 4, 2013) 2.1 Registrant’s Specimen American Depositary Receipt (incorporated herein by reference to Exhibit 4.1 to the registration statement on Form F-1,as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 2.2 Registrant’s Specimen Certificate for Ordinary Shares (incorporated herein by reference to Exhibit 4.2 to the registration statement on Form F-1,as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 2.3 Deposit Agreement among the Registrant, the depositary and holders of the American Depositary Receipts dated as of December 10, 2013(incorporated herein by reference to Exhibit 4.3 to the registration statement on Form S-8 (File No. 333-196006), filed with the Securities andExchange Commission on May 16, 2014) 2.4 Investors Rights Agreement among the Registrant, Telstra Holdings Pty Limited and certain minority shareholders of the Registrant datedNovember 4, 2013 (incorporated herein by reference to Exhibit 4.63 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.1 2011 Share Incentive Plan of the Registrant (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1, asamended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.2 2013 Share Incentive Plan of the Registrant (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1, asamended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.3 Form of Indemnification Agreement between the Registrant and its directors and officers (incorporated herein by reference to Exhibit 10.3 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.4 English Translation of Form of Employment Agreement between Autohome WFOE and an executive officer of the Registrant (incorporatedherein by reference to Exhibit 10.4 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with theSecurities and Exchange Commission on November 4, 2013) 4.5 Restated Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Autohome Information dated June 7, 2011(incorporated herein by reference to Exhibit 4.5 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed withthe Securities and Exchange Commission on November 4, 2013) 4.6 Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Chengshi Advertising dated November 12, 2010(incorporated herein by reference to Exhibit 4.7 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed withthe Securities and Exchange Commission on November 4, 2013) 4.7 Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Autohome Advertising dated September 21, 2010(incorporated herein by reference to Exhibit 4.8 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed withthe Securities and Exchange Commission on November 4, 2013) 115Table of ContentsExhibitNumber Description of Document 4.8 Restated Loan Agreement between Autohome WFOE and Zhi Qin dated June 7, 2011 (incorporated herein by reference to Exhibit 4.9 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.9 Restated Loan Agreement between Autohome WFOE and Zheng Fan dated June 7, 2011 (incorporated herein by reference to Exhibit 4.10 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.10 Restated Loan Agreement between Autohome WFOE and Xiang Li dated June 7, 2011 (incorporated herein by reference to Exhibit 4.11 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.11 Restated Equity Option Agreement among Autohome WFOE, Autohome Information and Zhi Qin dated June 7, 2011 (incorporated herein byreference to Exhibit 4.12 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities andExchange Commission on November 4, 2013) 4.12 Restated Equity Option Agreement among Autohome WFOE, Autohome Information and Zheng Fan dated June 7, 2011 (incorporated herein byreference to Exhibit 4.13 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities andExchange Commission on November 4, 2013) 4.13 Restated Equity Option Agreement among Autohome WFOE, Autohome Information and Xiang Li dated June 7, 2011 (incorporated herein byreference to Exhibit 4.14 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities andExchange Commission on November 4, 2013) 4.14 Equity Option Agreement among Autohome WFOE, Autohome Information and Chengshi Advertising dated November 12, 2010 (incorporatedherein by reference to Exhibit 4.16 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with theSecurities and Exchange Commission on November 4, 2013) 4.15 Equity Option Agreement among Autohome WFOE, Autohome Information and Autohome Advertising dated September 21, 2010 (incorporatedherein by reference to Exhibit 4.17 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with theSecurities and Exchange Commission on November 4, 2013) 4.16 Restated Equity Interest Pledge Agreement between Autohome WFOE and Zhi Qin dated August 23, 2011 (incorporated herein by reference toExhibit 4.18 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.17 Restated Equity Interest Pledge Agreement between Autohome WFOE and Zheng Fan dated August 23, 2011 (incorporated herein by referenceto Exhibit 4.19 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.18 Restated Equity Interest Pledge Agreement between Autohome WFOE and Xiang Li dated August 23, 2011 (incorporated herein by reference toExhibit 4.20 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 116Table of ContentsExhibitNumber Description of Document 4.19 Equity Interest Pledge Agreement between Autohome WFOE and Autohome Information dated November 12, 2010 regarding ChengshiAdvertising (incorporated herein by reference to Exhibit 4.22 to the registration statement on Form F-1, as amended (File No. 333-192085),initially filed with the Securities and Exchange Commission on November 4, 2013) 4.20 Equity Interest Pledge Agreement between Autohome WFOE and Autohome Information dated September 21, 2010 regarding AutohomeAdvertising (incorporated herein by reference to Exhibit 4.23 to the registration statement on Form F-1, as amended (File No. 333-192085),initially filed with the Securities and Exchange Commission on November 4, 2013) 4.21 Power of Attorney issued by Zhi Qin dated April 3, 2013 regarding Autohome Information (incorporated herein by reference to Exhibit 4.24 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.22 Power of Attorney issued by Zheng Fan dated April 3, 2013 regarding Autohome Information (incorporated herein by reference to Exhibit 4.25to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.23 Power of Attorney issued by Xiang Li dated April 3, 2013 regarding Autohome Information (incorporated herein by reference to Exhibit 4.26 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.24 Power of Attorney issued by Autohome Information dated April 3, 2013 regarding Chengshi Advertising (incorporated herein by reference toExhibit 4.28 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.25 Power of Attorney issued by Autohome Information dated April 3, 2013 regarding Autohome Advertising (incorporated herein by reference toExhibit 4.29 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.26 Supplementary Agreement to Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Chengshi Advertisingdated July 22, 2011 (incorporated herein by reference to Exhibit 4.31 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.27 Supplementary Agreement to Exclusive Technology Consulting and Service Agreement between Autohome Advertising and Autohome WFOEdated July 22, 2011 (incorporated herein by reference to Exhibit 4.32 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.28 Supplementary Agreement to Restated Exclusive Technology Consulting and Service Agreement between Autohome Information andAutohome WFOE dated July 22, 2011 (incorporated herein by reference to Exhibit 4.33 to the registration statement on Form F-1, as amended(File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.29 Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Shanghai Advertising dated December 31, 2011(incorporated herein by reference to Exhibit 4.34 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filedwith the Securities and Exchange Commission on November 4, 2013) 117Table of ContentsExhibitNumber Description of Document 4.30 Loan Agreement between Autohome WFOE and Zhi Qin dated December 31, 2011 (incorporated herein by reference to Exhibit 4.35 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.31 Loan Agreement between Autohome WFOE and Zheng Fan dated December 31, 2011 (incorporated herein by reference to Exhibit 4.36 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.32 Loan Agreement between Autohome WFOE and Xiang Li dated December 31, 2011 (incorporated herein by reference to Exhibit 4.37 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.33 Equity Option Agreement among Autohome WFOE, Shanghai Advertising and Zhi Qin dated July 2, 2012 (incorporated herein by reference toExhibit 4.38 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.34 Equity Option Agreement among Autohome WFOE, Shanghai Advertising and Zheng Fan dated July 2, 2012 (incorporated herein by referenceto Exhibit 4.39 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.35 Equity Option Agreement among Autohome WFOE, Shanghai Advertising and Xiang Li dated July 2, 2012 (incorporated herein by reference toExhibit 4.40 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.36 Equity Interest Pledge Agreement between Autohome WFOE and Zhi Qin dated July 2, 2012 (incorporated herein by reference to Exhibit 4.41 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.37 Equity Interest Pledge Agreement between Autohome WFOE and Zheng Fan dated July 2, 2012 (incorporated herein by reference to Exhibit4.42 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commissionon November 4, 2013) 4.38 Equity Interest Pledge Agreement between Autohome WFOE and Xiang Li dated July 2, 2012 (incorporated herein by reference to Exhibit 4.43to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.39 Power of Attorney issued by Zhi Qin dated April 3, 2013 regarding Shanghai Advertising (incorporated herein by reference to Exhibit 4.44 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.40 Power of Attorney issued by Zheng Fan dated April 3, 2013 regarding Shanghai Advertising (incorporated herein by reference to Exhibit 4.45 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 118Table of ContentsExhibitNumber Description of Document 4.41 Power of Attorney issued by Xiang Li dated April 3, 2013 regarding Shanghai Advertising (incorporated herein by reference to Exhibit 4.46 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.42 Loan Agreement between Autohome WFOE and Zhi Qin dated July 2, 2012 (incorporated herein by reference to Exhibit 4.47 to the registrationstatement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.43 Loan Agreement between Autohome WFOE and Zheng Fan dated July 2, 2012 (incorporated herein by reference to Exhibit 4.48 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.44 Loan Agreement between Autohome WFOE and Xiang Li dated July 2, 2012 (incorporated herein by reference to Exhibit 4.49 to the registrationstatement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.45 Exclusive Technology Consulting and Service Agreement between Autohome WFOE and Guangzhou Advertising dated May 8, 2012(incorporated herein by reference to Exhibit 4.50 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filedwith the Securities and Exchange Commission on November 4, 2013) 4.46 Loan Agreement between Autohome WFOE and Zhi Qin dated May 8, 2012 (incorporated herein by reference to Exhibit 4.51 to the registrationstatement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.47 Loan Agreement between Autohome WFOE and Zheng Fan dated May 8, 2012 (incorporated herein by reference to Exhibit 4.52 to theregistration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.48 Loan Agreement between Autohome WFOE and Xiang Li dated May 8, 2012 (incorporated herein by reference to Exhibit 4.53 to the registrationstatement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission on November 4, 2013) 4.49 Equity Option Agreement among Autohome WFOE, Guangzhou Advertising and Zhi Qin dated May 8, 2012 (incorporated herein by referenceto Exhibit 4.54 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.50 Equity Option Agreement among Autohome WFOE, Guangzhou Advertising and Zheng Fan dated May 8, 2012 (incorporated herein byreference to Exhibit 4.55 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities andExchange Commission on November 4, 2013) 4.51 Equity Option Agreement among Autohome WFOE, Guangzhou Advertising and Xiang Li dated May 8, 2012 (incorporated herein by referenceto Exhibit 4.56 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and ExchangeCommission on November 4, 2013) 4.52 Equity Interest Pledge Agreement between Autohome WFOE and Zhi Qin dated May 8, 2012 (incorporated herein by reference to Exhibit 4.57to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 119Table of ContentsExhibitNumber Description of Document 4.53 Equity Interest Pledge Agreement between Autohome WFOE and Zheng Fan dated May 8, 2012 (incorporated herein by reference to Exhibit4.58 to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commissionon November 4, 2013) 4.54 Equity Interest Pledge Agreement between Autohome WFOE and Xiang Li dated May 8, 2012 (incorporated herein by reference to Exhibit 4.59to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.55 Power of Attorney issued by Zhi Qin dated April 3, 2013 regarding Guangzhou Advertising (incorporated herein by reference to Exhibit 4.60 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.56 Power of Attorney issued by Zheng Fan dated April 3, 2013 regarding Guangzhou Advertising (incorporated herein by reference to Exhibit 4.61to the registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.57 Power of Attorney issued by Xiang Li dated April 3, 2013 regarding Guangzhou Advertising (incorporated herein by reference to Exhibit 4.62 tothe registration statement on Form F-1, as amended (File No. 333-192085), initially filed with the Securities and Exchange Commission onNovember 4, 2013) 4.58* Termination Agreement among Autohome Information, Shengtuo Hongyuan and Autohome WFOE dated July 8, 2015 4.59* English Translation of Equity Interest Transfer Agreement between Autohome Information and Zhi Qin dated July 8, 2015 4.60* English Translation of Equity Interest Transfer Agreement between Autohome Information and Zheng Fan dated July 8, 2015 4.61* Exclusive Technology Consulting and Service Agreement between Chezhiying WFOE and Shengtuo Hongyuan dated July 8, 2015 4.62* Exclusive Technology Consulting and Service Agreement between Chezhiying WFOE and Autohome Used Car Appraisal dated July 8, 2015 4.63* Exclusive Technology Consulting and Service Agreement between Chezhiying WFOE and Autohome Used Car Brokerage dated July 8, 2015 4.64* Equity Interest Pledge Agreement between Chezhiying WFOE and Shengtuo Hongyuan pledging equity interest in Autohome Used CarAppraisal dated July 8, 2015 4.65* Equity Interest Pledge Agreement between Chezhiying WFOE and Shengtuo Hongyuan pledging equity interest in Autohome Used CarBrokerage, dated July 8, 2015 4.66* Equity Interest Pledge Agreement between Chezhiying WFOE and Zhi Qin dated July 8, 2015 4.67* Equity Interest Pledge Agreement between Chezhiying WFOE and Zheng Fan dated July 8, 2015 4.68* Power of Attorney issued by Shengtuo Hongyuan dated July 8, 2015 regarding Autohome Used Car Appraisal. 4.69* Power of Attorney issued by Shengtuo Hongyuan dated July 8, 2015 regarding Autohome Used Car Brokerage 4.70* Power of Attorney issued by Zhi Qin dated July 8, 2015 regarding Shengtuo Hongyuan 4.71* Power of Attorney issued by Zheng Fan dated July 8, 2015 regarding Shengtuo Hongyuan 120Table of ContentsExhibitNumber Description of Document 4.72* Loan Agreement between Chezhiying WFOE and Zhi Qin dated July 8, 2015 4.73* Loan Agreement between Chezhiying WFOE and Zheng Fan dated July 8, 2015 4.74* Equity Option Agreement among Chezhiying WFOE, Shengtuo Hongyuan and Autohome Used Car Appraisal dated July 8, 2015 4.75* Equity Option Agreement among Chezhiying WFOE, Shengtuo Hongyuan and Autohome Used Car Brokerage dated July 8, 2015 4.76* Equity Option Agreement among Chezhiying WFOE, Shengtuo Hongyuan and Zhi Qin dated July 8, 2015 4.77* Equity Option Agreement among Chezhiying WFOE, Shengtuo Hongyuan and Zheng Fan dated July 8, 2015 4.78* 2016 Share Incentive Plan of the Registrant 8.1* List of Principal Subsidiaries 11.1 Amended and Restated Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 11.1 to the Form20-F (File No. 001-36222), filed with the Securities and Exchange Commission on March 31, 2014) 12.1* Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 12.2* Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 13.1** Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 13.2** Certification by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 15.1* Consent of Ernst & Young Hua Ming LLP, independent registered public accounting firm 15.2* Consent of TransAsia Lawyers101.INS* XBRL Instance Document101.SCH* XBRL Taxonomy Extension Schema Document101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document101.DEF* XBRL Taxonomy Extension Definition Linkbase Document101.LAB* XBRL Taxonomy Extension Label Linkbase Document101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document *Filed with this annual report on Form 20-F.**Furnished with this annual report on Form 20-F. 121Table of ContentsSIGNATURESThe registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned tosign this annual report on its behalf. AUTOHOME INC.By: /s/ James Zhi Qin Name: James Zhi Qin Title: Director and Chief Executive OfficerDate: March 17, 2016 122Table of ContentsAUTOHOME INC.INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of independent registered public accounting firm F-2 Consolidated balance sheets as of December 31, 2014 and 2015 F-3-4 Consolidated statements of comprehensive income for the years ended December 31, 2013, 2014 and 2015 F-5 Consolidated statements of cash flows for the years ended December 31, 2013, 2014 and 2015 F-6 Consolidated statements of changes in shareholders’ equity for the years ended December 31, 2013, 2014 and 2015 F-7 Notes to the consolidated financial statements F-8-43 F-1Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMThe Board of Directors and Shareholders of Autohome Inc.We have audited the accompanying consolidated balance sheets of Autohome Inc. (the “Company”) as of December 31, 2015 and 2014, and the relatedconsolidated statements of comprehensive income, cash flows and changes in shareholders’ equity for each of the three years in the period ended December31, 2015. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on theseconsolidated financial statements based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of AutohomeInc. at December 31, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December31, 2015, in conformity with U.S. generally accepted accounting principles.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Autohome Inc.’s internal controlover financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee ofSponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 17, 2016 expressed an unqualified opinion thereon./s/ Ernst & Young Hua Ming LLPBeijing, the People’s Republic of ChinaMarch 17, 2016 F-2Table of ContentsAUTOHOME INC.CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2014 AND 2015(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) Note 2014 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,054,416 2,152,647 332,311 Restricted cash — 61,091 9,431 Term deposits 1,717,775 1,955,315 301,849 Accounts receivable (net of allowance for doubtful accounts of RMB335 and RMB2,315 (US$357) as ofDecember 31, 2014 and 2015, respectively) 3 736,695 1,075,456 166,022 Inventories 4 — 111,667 17,238 Amount due from a related party 12 — 1,645 254 Prepaid expenses and other current assets 5 73,911 338,677 52,283 Deferred tax assets, current 6 57,969 45,977 7,098 Total current assets 3,640,766 5,742,475 886,486 Non-current assets: Property and equipment, net 7 74,882 103,554 15,986 Intangible assets, net 8 39,400 34,155 5,273 Goodwill 10 1,504,278 1,504,278 232,221 Long-term investments 9 — 124,102 19,158 Other non-current assets 19,189 21,512 3,321 Total non-current assets 1,637,749 1,787,601 275,959 Total assets 5,278,515 7,530,076 1,162,445 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables (including accrued expenses and other payables of consolidated VIEswithout recourse to Autohome WFOE and Chezhiying WFOE of RMB53,106 and RMB111,610(US$17,230) as of December 31, 2014 and 2015, respectively) 11 524,534 833,473 128,667 Advance from customers (including advance from customers of consolidated VIEs without recourse toAutohome WFOE and Chezhiying WFOE of RMB17,650 and RMB10,942 (US$1,689) as of December 31,2014 and 2015, respectively) 42,530 27,214 4,201 Deferred revenue (including deferred revenue of consolidated VIEs without recourse to Autohome WFOE andChezhiying WFOE of RMB138,921 and RMB6,063 (US$936) as of December 31, 2014 and 2015,respectively) 438,797 872,487 134,689 Notes payable (including notes payable of consolidated VIEs without recourse to Autohome WFOE andChezhiying WFOE of nil and nil as of December 31, 2014 and 2015, respectively) — 174,943 27,007 Income tax payable (including income tax payable of consolidated VIEs without recourse to Autohome WFOEand Chezhiying WFOE of RMB13,930 and RMB6,408 (US$989) as of December 31, 2014 and 2015,respectively) 74,763 224,973 34,730 Amount due to a related party (including amount due to a related party of consolidated VIEs without recourseto Autohome WFOE and Chezhiying WFOE of RMB33 and RMB2,910 (US$449) as of December 31, 2014and 2015, respectively) 12 33 23,444 3,619 Total current liabilities (including current liabilities of consolidated VIEs without recourse to AutohomeWFOE and Chezhiying WFOE of RMB223,640 and RMB137,933 (US$21,293) as of December 31, 2014and 2015, respectively) 1,080,657 2,156,534 332,913 The accompanying notes are an integral part of these consolidated financial statements F-3Table of ContentsAUTOHOME INC.CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2014 AND 2015(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) Note 2014 2015 RMB RMB US$ Non-current liabilities: Other liabilities (including other liabilities of consolidated VIEs without recourse to Autohome WFOE andChezhiying WFOE of RMB17,212 and RMB19,906 (US$3,073) as of December 31, 2014 and 2015,respectively) 24,058 32,596 5,032 Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to AutohomeWFOE and Chezhiying WFOE of RMB9,677 and RMB8,539 (US$1,318) as of December 31, 2014 and2015, respectively) 6 508,377 489,910 75,629 Total non-current liabilities (including non-current liabilities of consolidated VIEs without recourse toAutohome WFOE and Chezhiying WFOE of RMB26,889 and RMB28,445 (US$4,391) as of December 31,2014 and 2015, respectively) 532,435 522,506 80,661 Total liabilities (including total liabilities of consolidated VIEs without recourse to Autohome WFOE andChezhiying WFOE of RMB250,529 and RMB166,378 (US$25,684) as of December 31, 2014 and 2015,respectively) 1,613,092 2,679,040 413,574 Commitments and contingencies 13 Shareholders’ equity: Class A ordinary shares (par value of US$0.01 per share; 99,931,211,060 shares authorized; 48,777,835 and51,230,242 shares issued and outstanding as of December 31, 2014 and 2015, respectively) 15 3,301 3,452 533 Class B ordinary shares (par value US$0.01 per share; 68,788,940 shares authorized; 61,824,328 and61,824,328 shares issued and outstanding as of December 31, 2014 and 2015, respectively) 15 4,183 4,183 646 Additional paid-in capital 15 2,649,111 2,787,103 430,255 Accumulated other comprehensive income 5,932 62,753 9,687 Retained earnings 1,002,896 1,993,545 307,750 Total shareholders’ equity 3,665,423 4,851,036 748,871 Total liabilities and shareholders’ equity 5,278,515 7,530,076 1,162,445 The accompanying notes are an integral part of these consolidated financial statements F-4Table of ContentsAUTOHOME INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) Note 2013 2014 2015 RMB RMB RMB US$ Net revenues: Advertising services 894,937 1,499,516 2,400,023 370,500 Dealer subscription services 321,611 633,433 1,063,952 164,246 Total net revenues 1,216,548 2,132,949 3,463,975 534,746 Cost of revenues 14 (252,236) (381,498) (669,121) (103,294) Gross profit 964,312 1,751,451 2,794,854 431,452 Operating expenses: Sales and marketing expenses (245,228) (559,070) (1,127,484) (174,054) General and administrative expenses (82,529) (129,751) (193,655) (29,895) Product development expenses (81,651) (158,395) (273,908) (42,284) Operating profit 554,904 904,235 1,199,807 185,219 Interest income 11,082 34,682 63,218 9,759 Interest expense (414) — — — Earnings from equity method investments — — 102 16 Other income, net 2,884 2,544 13,064 2,017 Income before income taxes 568,456 941,461 1,276,191 197,011 Income tax expense 6 (112,294) (192,781) (285,542) (44,080) Net income 456,162 748,680 990,649 152,931 Earnings per share for ordinary shares: Basic 17 4.57 7.01 8.83 1.36 Diluted 17 4.37 6.64 8.57 1.32 Weighted average number of shares used to compute earnings per shareattributable to Class A and Class B common stockholders: Basic 17 99,898,154 106,735,303 112,227,405 112,227,405 Diluted 17 104,329,226 112,831,585 115,646,826 115,646,826 Other comprehensive income, net of tax of nil Foreign currency translation adjustments 1,403 3,946 56,821 8,772 Comprehensive income 457,565 752,626 1,047,470 161,703 The accompanying notes are an integral part of these consolidated financial statements F-5Table of ContentsAUTOHOME INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2013 2014 2015 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net income 456,162 748,680 990,649 152,931 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 25,548 35,084 51,337 7,925 Amortization of intangible assets 6,250 6,053 5,247 810 Loss on disposal of property and equipment 90 163 570 88 Provision for doubtful accounts 251 42 2,179 336 Earnings from equity method investments — — (102) (16) Share-based compensation 25,608 56,666 107,945 16,664 Deferred income taxes 3,327 5,334 (6,475) (1,000) Changes in operating assets and liabilities: Accounts receivable (139,901) (271,025) (340,940) (52,632) Amount due from a related party — — (1,645) (254) Prepaid expenses and other current assets (855) (60,528) (264,391) (40,816) Inventories — — (111,667) (17,238) Restricted cash — — (61,091) (9,431) Other non-current assets (6,149) (12,936) (1,965) (303) Accrued expenses and other payables 97,803 201,421 316,714 48,892 Advance from customers 2,340 40,190 (15,316) (2,364) Notes payable — — 174,943 27,007 Deferred revenue 118,848 225,557 433,690 66,950 Income tax payable (8,469) 54,559 150,210 23,188 Amount due to a related party 567 (534) 23,411 3,614 Other liabilities 12,473 (4,983) 8,538 1,318 Net cash generated from operating activities 593,893 1,023,743 1,461,841 225,669 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (44,212) (42,718) (89,161) (13,764) Proceeds from disposal of property and equipment 535 1,084 595 92 Acquisition of intangible assets (2,266) (108) — — Long-term investments — — (124,000) (19,142) Purchase of term deposits — (2,155,360) (3,715,074) (573,509) Maturity of term deposits — 437,585 3,519,983 543,392 Net cash used in investing activities (45,943) (1,759,517) (407,657) (62,931) CASH FLOWS FROM FINANCING ACTIVITIES (Increase)/decrease in restricted cash (245,000) 245,000 — — Proceeds from short-term debt 232,398 — — — Repayment of short-term debt (230,040) (2,358) — — Net proceeds from the initial public offering (“IPO”) and follow-on offering of ADSs 863,200 603,980 — — Payments of offering cost for IPO — (11,998) — — Payments for repurchase of common stock (Note 15) (230,335) (227,015) — — Proceeds from exercise of share options — 39,787 30,200 4,662 Payments of dividends (220,925) — — — Net cash generated from financing activities 169,298 647,396 30,200 4,662 Effect of exchange rate changes on cash and cash equivalents 789 4,181 13,847 2,138 Net increase/(decrease) in cash and cash equivalents 718,037 (84,197) 1,098,231 169,538 Cash and cash equivalents at beginning of year 420,576 1,138,613 1,054,416 162,773 Cash and cash equivalents at end of year 1,138,613 1,054,416 2,152,647 332,311 Supplemental disclosures of cash flow information: Income taxes paid 107,134 137,826 133,265 20,573 Payable for repurchase of common stock (Note 15) 227,015 — — — Capitalized IPO costs included in accrued expenses and other payables 13,079 — — — Purchase of fixed assets included in accrued expenses and other payables — 10,598 2,612 403 The accompanying notes are an integral part of these consolidated financial statements F-6Table of ContentsAUTOHOME INC.CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) Ordinary shares, Class Aordinary shares andClass B ordinary shares Additionalpaid-in capital Accumulated othercomprehensiveincome RetainedEarnings TotalShareholders’Equity Shares Amount Number RMB RMB RMB RMB RMB Balance as of January 1, 2013 100,000,000 6,867 1,128,314 583 422,211 1,557,975 Net income — — — — 456,162 456,162 Other comprehensive income: Foreign currency translation adjustments — — — 1,403 — 1,403 Payments of dividends — — — — (220,925) (220,925) Repurchase and retirement of treasury stock (Note 1,Note 15) (3,856,564) (265) (53,853) — (403,232) (457,350) Issuance of Class A ordinary shares upon completion of theIPO, net of offering costs (Note 15) 8,993,000 547 848,944 — — 849,491 Share-based compensation — — 25,608 — — 25,608 Balance as of December 31, 2013 105,136,436 7,149 1,949,013 1,986 254,216 2,212,364 Net income — — — — 748,680 748,680 Other comprehensive income: Foreign currency translation adjustments — — — 3,946 — 3,946 Issuance of Class A ordinary shares upon completion offollow-on offering of ADSs in November, 2014, net ofoffering costs (Note 15) 2,424,801 149 603,831 — — 603,980 Exercise and vesting of share-based awards 3,040,926 186 39,601 — — 39,787 Share-based compensation — — 56,666 — — 56,666 Balance as of December 31, 2014 110,602,163 7,484 2,649,111 5,932 1,002,896 3,665,423 Net income — — — 990,649 990,649 Other comprehensive income: Foreign currency translation adjustments — — — 56,821 — 56,821 Exercise and vesting of share-based awards 2,452,407 151 30,047 — — 30,198 Share-based compensation — — 107,945 — — 107,945 Balance as of December 31, 2015 113,054,570 7,635 2,787,103 62,753 1,993,545 4,851,036 Balance as of December 31, 2015, in US$ 1,179 430,255 9,687 307,750 748,871 The accompanying notes are an integral part of these consolidated financial statements F-7Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATIONAutohome Inc., formerly known as Sequel Limited (the “Company”), was incorporated under the laws of the Cayman Islands on June 23, 2008. Uponincorporation, the Company was 100% owned by Telstra Holdings Pty Ltd. (“Telstra”). On June 27, 2008 (the “Acquisition date”), the Company acquiredCheerbright International Holdings Limited (“Cheerbright”), China Topside Co., Ltd. (“China Topside”), and Norstar Advertising Media Holdings Co., Ltd.(“Norstar”), and their respective wholly foreign-owned enterprises and variable interest entities (“VIEs”). Subsequent to the acquisition, the Company wasowned 55% by Telstra, and 45% by the selling shareholders of Cheerbright, China Topside and Norstar. The Company, through its subsidiaries and VIEs (asdisclosed in the table below), is principally engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China(the “PRC”). In May 2012, Telstra acquired additional ordinary shares of the Company from other shareholders.On June 14, 2011, the Company incorporated, under the laws of the Cayman Islands, a wholly-owned subsidiary, Sequel Media Inc. (“Sequel Media”). OnJune 30, 2011, the Company contributed all the shares of the entities that provided online advertising services to manufacturers and retailers in theinformation technology industry (collectively the “Distributed Entities”) to Sequel Media. On June 30, 2011, the Company distributed all the shares ofSequel Media to its shareholders. Accordingly, pursuant to ASC 205-20, Discontinued Operations, the Distributed Entities have been accounted for as adiscontinued operation whereby the results of operations of these businesses have been eliminated from the results of continuing operations.On October 8, 2011, the Shijiazhuang Industry and Commercial Bureau approved the termination of the business license of Shijiazhuang XinFengAdvertising Co., Ltd., formally dissolving the legal entity.On November 4, 2013, the Company and Telstra entered into a Share Purchase Agreement with West Crest Limited, its sole shareholder and the othershareholders of the Company. Pursuant to the agreement, the Company and Telstra purchased 3,856,564 and 2,828,147 ordinary shares of the Company heldby West Crest Limited for US$75 million and US$55 million, respectively, in cash to be paid in two instalments (“West Crest Limited Share Purchase”). Theselling shareholder has resigned from the board of directors upon signing of the agreement. On November 15, 2013, the Company decided to retire thetreasury stock purchased from West Crest.The Company successfully completed its IPO and listing of 8,993,000 American Depositary Shares (“ADSs”) on the New York Stock Exchange in December,2013, and raised net proceeds of US$142,590 from the offering. Each ADS represents one ordinary share. Upon the completion of IPO in December, 2013, theCompany’s dual-class ordinary share structure came into effect (Note 15). Upon the completion of follow-on offering in November 2014, 2,424,801 ADSswere issued by the Company and 6,964,612 Class B ordinary shares were converted into Class A ordinary shares. The net proceeds from the follow-onoffering amounted to US$97,344 net of issuance cost. As of December 31, 2015, the Company had ordinary shares outstanding, comprised of 51,230,242Class A ordinary shares and 61,824,328 Class B ordinary shares. Telstra remains the Company’s controlling shareholder holding 54.7% of the total equityinterest and voting rights, respectively in the Company as of December 31, 2015. F-8Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) As of December 31, 2015, the Company’s principal subsidiaries and VIEs where Autohome WFOE and Chezhiying WFOE are the primary beneficiariesinclude the following entities: Entity Date of incorporationor acquisition Place ofincorporation Percentage ofdirectownership bythe Company Principal activitiesSubsidiaries Cheerbright International Holdings, Limited(“Cheerbright”) June 13, 2006 British VirginIslands 100% Investment holdingAutohome E-commerce Inc. February 6, 2015 CaymanIslands 100% Investment holdingAutohome Link Inc. January 29, 2015 CaymanIslands 100% Investment holdingAutohome Financing Limited March 23, 2015 CaymanIslands 100% Investment holdingAutohome (Hong Kong) Limited (“AutohomeHK”) March 16, 2012 Hong Kong 100% Provision of online advertising servicesAutohome Media Limited (“AutohomeMedia”, formerly known as PrbrowniesMarketing Limited) October 18, 2013 Hong Kong 100% Provision of online advertising servicesAutohome E-commerce Hong Kong Limited February 18, 2015 Hong Kong 100% Provision of information technology servicesAutohome Link Hong Kong Limited February 16, 2015 Hong Kong 100% Provision of information technology servicesAutohome Financing Hong Kong Limited April 15, 2015 Hong Kong 100% Provision of financial servicesBeijing Cheerbright Technologies Co., Ltd.(“Autohome WFOE”) September 1, 2006 PRC 100% Provision of technical and consulting servicesAutohome Shanghai Advertising Co., Ltd. September 29, 2013 PRC 100% Provision of online advertising servicesBeijing Prbrownies Software Co., Ltd.(formerly known as “Beijing AutohomeSoftware Co., Ltd.”) November 12, 2013 PRC 100% Provision of information technology servicesBeijing Autohome Technologies Co., Ltd. November 12, 2013 PRC 100% Provision of information technology servicesBeijing Autohome Advertising Co., Ltd. November 13, 2013 PRC 100% Provision of online advertising servicesGuangzhou Autohome Advertising Co., Ltd. November 25, 2013 PRC 100% Provision of online advertising servicesTianjin Autohome Technologies Co., Ltd. October 20, 2014 PRC 100% Provision of information technology servicesAutohome (Tianjin) Automobile Sales Co.,Ltd. October 20, 2014 PRC 100% Provision of automobile and component partssales service F-9Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) Entity Date of incorporationor acquisition Place ofincorporation Percentage ofdirectownership bythe Company Principal activitiesBeijing Chezhiying Technology Co., Ltd.(“Chezhiying WFOE”) May 26, 2015 PRC 100% Provision of information technology servicesBeijing Chezhiying Software Co., Ltd.(“Chezhiying Software”) December 9, 2015 PRC 100% Provision of information technology servicesBeijing Kemoshijie Technology Co., Ltd. September 11, 2015 PRC 100% Provision of information technology servicesShanghai Baiche Julian Information TechnologyCo., Ltd. December 29, 2014 PRC 100% Provision of information technology servicesVIEs Beijing Autohome Information Technology Co.,Ltd. (“Autohome Information”) August 28, 2006 PRC — Provision of online advertising and dealersubscription servicesBeijing Shengtuo Autohome Advertising Co.,Ltd. September 21, 2010 PRC — Provision of online advertising servicesBeijing Shengtuo Hongyuan InformationTechnology Co., Ltd. (“Shengtuo Hongyuan”) November 8, 2010 PRC — Provision of online advertising and dealersubscription servicesBeijing Shengtuo Chengshi Advertising Co.,Ltd. November 12, 2010 PRC — Provision of online advertising servicesShanghai You Che You Jia Advertising Co., Ltd.(“Shanghai Advertising”) December 31, 2011 PRC — Provision of online advertising servicesGuangzhou You Che You Jia Advertising Co.,Ltd. (“Guangzhou Advertising”) May 8, 2012 PRC — Provision of online advertising servicesBeijing Autohome Used Car Appraisal Co., Ltd. January 30, 2015 PRC — Provision of used car sales and evaluatingserviceBeijing Autohome Used Car Brokerage Co., Ltd. June 10, 2015 PRC — Provision of used car brokerage service F-10Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) The Company, its subsidiaries and VIEs are hereinafter collectively referred to as the “Group”. The Group provides online advertising and dealer subscriptionservices through its websites and mobile applications. These services are offered to automakers and dealers, and advertising agencies that representautomakers and dealers in the automobile industry. In 2015, the Group further developed transaction business which includes direct vehicle sales andcommission-based services facilitating transactions through the transaction platform. The Group’s principal geographic market is in the PRC. The Companydoes not conduct any substantive operations of its own but conducts its primary business operations through its wholly-owned subsidiaries and VIEs in thePRC.PRC laws and regulations prohibit or restrict foreign ownership of internet content and online advertising businesses. To comply with these foreignownership restrictions, the Company and its subsidiaries operate websites and provide online advertising services and dealer subscription services in the PRCthrough VIEs. The paid-in capital of the VIEs was funded by the Company’s PRC subsidiaries, Autohome WFOE and Chezhiying WFOE, through loansextended to the VIEs’ shareholders (“Nominee Shareholders”). The effective control of the VIEs is held by WFOEs, through a series of contractual agreements(the “Contractual Agreements”). As a result of the Contractual Agreements, the WFOEs maintain the ability to control the VIEs, are entitled to substantiallyall of the economic benefits from the VIEs and are obligated to absorb all of the VIE’s expected losses.In July 2015, Autohome Information, Shengtuo Hongyuan and Autohome WFOE entered into a termination agreement, pursuant to which the partiesterminated the contractual agreements among themselves and Autohome Information transferred all of its equity interest in Shengtuo Hongyuan to James ZhiQin and Zheng Fan. In July 2015, Chezhiying WFOE, Shengtuo Hongyuan and each of its subsidiaries, and James Zhi Qin and Zheng Fan entered intocontractual agreements to effect the Company’s control over Shengtuo Hongyuan. The terms of these agreements are substantially the same as the contractualagreements between Autohome WFOE and each of the three shareholders of Autohome Information described below. This termination of contractualagreements and transfer of equity interest in Shengtuo Hongyuan from Autohome WFOE to Chezhiying WFOE had no impact on the Company’s operationsand consolidated financial statements.Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Company and the VIEs through the irrevocablepower of attorney agreement, whereby the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interest in the VIEs tothe WFOEs. In addition, through the Contractual Agreements the Company demonstrates its ability and intention to continue to exercise the ability to absorbsubstantially all of the expected losses and majority of the profits of the VIEs through the WFOEs.Thus, the Company is also considered the primary beneficiary of the VIEs through the WFOEs. As a result of the above, the Company consolidates the VIEsin accordance with SEC Regulation SX-3A-02 and Accounting Standards Codification (“ASC”) 810-10 (“ASC 810-10”) Consolidation: Overall.The following is a summary of the Contractual Agreements:Exclusive technical consulting and service agreementsPursuant to the exclusive technical consulting and service agreements that have been entered into by the WFOEs and the VIEs, the VIEs have engaged theWFOEs as their exclusive provider of technical support and management consulting services. The VIEs shall pay to the WFOEs service fees determined basedon the revenues of the VIEs. The service fees can be adjusted by the WFOEs unilaterally. The WFOEs shall exclusively own any intellectual property arisingfrom the performance of this agreement. This agreement has a 30 year term that can be automatically extended for another 10 years at the option of theWFOEs. The agreement can only be terminated mutually by the parties in writing. During the term of the agreement, the VIEs may not enter into anyagreement with third parties for the provision of any technical or management consulting services without prior consent of the WFOEs.Loan agreementsPursuant to the loan agreements between the Nominee Shareholders of the VIEs and the WFOEs, the WFOEs granted interest-free loans for the NomineeShareholders’ contributions to the VIEs. The term of the loan is indefinite until the WFOEs requests repayment. The manner and timing of the repaymentshall be at the sole discretion of the WFOEs and at the WFOEs’ option may be in the form of transferring the VIEs’ equity interest to the WFOEs or theirdesignated persons. F-11Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) Exclusive equity option agreementsPursuant to the exclusive option agreements, entered into between the Nominee Shareholders of the VIEs and the WFOEs, the Nominee Shareholders jointlyand severally granted to the WFOEs an option to purchase their equity interests in the VIEs. The purchase price will be offset against the loan repaymentsunder the loan agreements. If the transfer price of the equity interest is greater than the loan amount, the Nominee Shareholders are required to immediatelyreturn the received transfer price in excess of the loan amount to theWFOEs or any person designated by the WFOEs. The WFOEs may exercise such option at any time until it has acquired all equity interests of the VIEs orfreely transfer the option to any third party and such third party may assume the right and obligations of the option agreement. The exclusive equity optionagreements have an indefinite term and will terminate at the earlier of i) the date on which all of the equity interests have been transferred to the WFOEs orany person designated by the WFOEs; or ii) the unilateral termination by the WFOEs.Equity interest pledge agreementsPursuant to the equity interest pledge agreements entered into between the Nominee Shareholders of the VIEs and the WFOEs, the Nominee Shareholderspledged all of their equity interests in the VIEs to the WFOEs as collateral for all of their payments due to the WFOEs and to secure their obligations underthe above agreements. The Nominee Shareholders may not transfer or assign the shares, the rights and obligations in the share pledge agreement or create orpermit to create any pledges which may have an adverse effect on the rights or benefits of the VIEs without the WFOE’s preapproval. The WFOE is entitled totransfer or assign in full or in part the shares pledged. In the event of default, the WFOE as the pledgee will be entitled to request immediate repayment of theloan or to dispose of the pledged equity interests through transfer or assignment. There have been no dividends or distributions from inception to date. Theequity interest pledge agreements have an indefinite term and will terminate after all the obligations under these agreements have been satisfied in full or thepledged equity interests have been transferred to the WFOEs or their designees.Power of attorney agreementsPursuant to the power of attorney agreements signed between the Nominee Shareholders of the VIEs and the WFOEs, the Nominee Shareholders have giventhe WFOEs an irrevocable proxy to act on their behalf on all matters pertaining to the VIEs and to exercise all of their rights as shareholders of the VIEs,including the right to attend shareholders meetings, to exercise voting rights and to transfer all or a part of his equity interests in the VIEs.In June 2011, the Contractual Agreements were supplemented with the following terms: • With respect to the exclusive equity option agreements, in the event of liquidation or dissolution of the VIEs, all assets shall be sold to the WFOEs atthe lowest selling price permitted by applicable PRC law, and any proceeds from the transfer and any residual interests in the VIEs shall be remitted tothe WFOEs immediately; • With respect to the exclusive equity option agreements, dividends and distributions are not permitted without the prior consent of the WFOEs, to theextent there is a dividend or distribution, the Nominee Shareholders will remit the amounts in full to the WFOEs immediately; • With respect to the exclusive technical consulting and service agreements and loan agreements, the WFOEs shall provide the necessary financialsupport to the VIEs whether or not the VIEs incur any losses, and not request for repayment if the VIEs are unable to do so. F-12Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) Risk in relation to the VIE StructureInternet and advertising related businesses are subject to significant restrictions under current PRC laws and regulations. Specifically, foreign investors arenot allowed to own more than a 50% equity interest in any Internet Content Provider (“ICP”) business. In addition, PRC regulations require any foreignentities that invest in the advertising services industry to have at least a two-year track record with a principal business in the advertising industry outside ofChina.The Group conducts its operations in China through Contractual Agreements entered into between the WFOEs and VIEs. In 2014, the Group began graduallymigrating the advertising service business from the VIEs to the subsidiaries of Autohome Media, a transition that was completed to a substantial extent. Therelevant regulatory authorities may find the current contractual agreements and businesses to be in violation of any existing or future PRC laws orregulations. If the Company or any of its current or future VIEs or subsidiaries are found in violation of any existing or future laws or regulations, or fail toobtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with suchviolations, including levying fines, confiscating the income of Autohome WFOE, Chezhiying WFOE, Shanghai Advertising, Guangzhou Advertising,Autohome Information and its subsidiaries, revoking the business licenses or operating licenses of Autohome WFOE, Chezhiying WFOE, ShanghaiAdvertising, Guangzhou Advertising, Autohome Information and its subsidiaries, shutting down the Group’s servers or blocking the Group’s websites,discontinuing or placing restrictions or onerous conditions on the Group’s operations, requiring the Group to undergo a costly and disruptive restructuring,restricting the Group’s rights to use the proceeds from this offering to finance the Group’s business and operations in China, or enforcement actions that couldbe harmful to the Group’s business. Any of these actions could cause significant disruption to the Group’s business operations and severely damage theGroup’s reputation, which would in turn materially and adversely affect the Group’s business and results of operations. In addition, if the imposition of any ofthese penalties causes the Company to lose the rights to direct the actives of VIEs or the Company’s right to receive their economic benefits, the Companywould no longer be able to consolidate the VIEs.In addition, if Shanghai Advertising, Guangzhou Advertising, Autohome Information and its subsidiaries or their shareholders fail to perform theirobligations under the Contractual Agreements, the Company may have to incur substantial costs and expend resources to enforce the Company’s rights underthe contracts. The Company may have to rely on legal remedies under PRC law, including seeking specific performance or injunctive relief and claimingdamages, which may not be effective. All of these Contractual Agreements are governed by PRC law and provide for the resolution of disputes througharbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance withPRC legal procedures. The legal system in PRC is not as developed as in other jurisdictions, such as United States. As a result, uncertainties in the PRC legalsystem could limit the Company’s ability to enforce these Contractual Agreements. Under PRC law, rulings by arbitrators are final, parties cannot appeal thearbitration results in courts, and prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings,which would incur additional expenses and delay. In the event the Company is unable to enforce these Contractual Agreements, the Company may not beable to exert effective control over its VIEs, and the Company’s ability to conduct its business may be negatively affected.Based on the advice of the Company’s PRC legal counsel, the corporate structure and Contractual Agreements of the Company’s VIEs and WFOEs in Chinaare in compliance with all existing PRC laws and regulations. Therefore, in the opinion of management, (i) the ownership structure of the Company and theVIEs are in compliance with existing PRC laws and regulations; (ii) the Contractual Agreements with VIEs and their nominee shareholder are valid andbinding, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the Group’s business operations are in compliance withexisting PRC law and regulations in all material respects.VIEs contributed an aggregate of 100.0%, 69.1% and 7.8% of the consolidated net revenues for the years ended December 31, 2013, 2014 and 2015,respectively after elimination of inter-company transactions. As of December 31, 2014 and 2015, the VIEs accounted for an aggregate of 37.4% and 24.1%,respectively, of the consolidated total assets, and 15.6% and 6.2%, respectively, of the consolidated total liabilities after elimination of inter-companybalances.Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its sharecapital, to the company in the form of loans and advances or cash dividends. Please refer to Note 16 for disclosure of restricted net assets. F-13Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 1.ORGANIZATION (CONTINUED) The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs included in the Company’s consolidated balance sheets,consolidated statements of comprehensive income and consolidated statements of cash flows: December 31, 2014 2015 RMB RMB US$ Current assets 639,347 502,938 77,640 Non-current assets 1,612,276 1,618,469 249,849 Total assets 2,251,623 2,121,407 327,489 Current liabilities 498,209 412,994 63,755 Non-current liabilities 26,889 28,445 4,391 Total liabilities 525,098 441,439 68,146 Net assets 1,726,525 1,679,968 259,343 Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Net revenues 1,216,410 1,473,401 271,198 41,866 Net income/(loss) 28,170 57,358 (68,272) (10,539) Year ended December 31, 2013 2014 2015 RMB RMB RMB RMB Net cash generated from/(used in ) operating activities 29,925 102,403 (23,630) (3,648) Net cash used in investing activities (38,100) (33,773) (73,318) (11,318) Net cash generated from financing activities — — — — The revenue-producing assets that are held by the VIEs comprise of customer relationships, trademarks, websites, domain names and servers.The current assets of the VIEs included amounts due from PRC subsidiaries of RMB280,857 and RMB310,096(US$47,871), for the years endedDecember 31, 2014 and 2015, respectively, which were eliminated upon consolidation by the Company. The current liabilities of the VIEs included amountsdue to PRC subsidiaries of RMB274,569 and RMB275,061(US$42,462), for the years ended December 31, 2014 and 2015, respectively, which wereeliminated upon consolidation by the Company. There was no pledge or collateralization of the VIEs’ assets and the WFOEs have not provided any financialsupport that they were not previously contractually required to provide to the VIEs. There were no assets of the VIEs that can only be used to settle their ownobligations. Creditors of the VIEs have no recourse to the general credit of the WFOEs, which are the primary beneficiary of the VIEs. F-14Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)Basis of accountingThe accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). (b)Principles of ConsolidationThe consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs for which the Company or subsidiariesof the Company are the primary beneficiaries. All significant inter-company transactions and balances between the Company, its subsidiaries, and the VIEsare eliminated upon consolidation. Results of acquired subsidiaries and VIEs are consolidated from the date on which control is transferred to the Company. (c)Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and thereported amounts of revenues and expenses during the year. Areas where management uses subjective judgment include, but are not limited to, estimating theuseful lives of long-lived assets and intangible assets, identifying separate accounting units and estimating rebates related to revenue transactions, assessingthe initial valuation of the assets acquired and liabilities assumed in a business combination and the subsequent impairment assessment of long-lived assets,intangible assets and goodwill, long-term investments, determining the provision for accounts receivable and inventories, determining the value-added tax(“VAT”) receivables, accounting for deferred income taxes and accounting for the share-based compensation. Changes in facts and circumstances may resultin revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d)Foreign CurrencyThe functional currency of the Company, its Cayman subsidiaries and Cheerbright, is the United States dollar (“US$”), whereas the functional currency ofHong Kong subsidiaries is the Hong Kong dollar (“HK$”), and the functional currency of the PRC subsidiaries and VIEs is the Chinese Renminbi (“RMB”) asdetermined based on the criteria of ASC 830, Foreign Currency Matters. The Company uses the RMB as its reporting currency. Transactions denominated inforeign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominatedfinancial assets and liabilities are re-measured at the balance sheet date exchange rate. Exchange gains and losses are included in other income, net in theconsolidated statements of comprehensive income.Assets and liabilities of the Company, its Cayman subsidiaries, Cheerbright and Hong Kong subsidiaries are translated into RMB at fiscal year-end exchangerates. Income and expense items are translated at average exchange rates prevailing during the fiscal year. (e)Convenience TranslationAmounts in United States dollars (“US$”) are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 toRMB6.4778 on December 31, 2015 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of NewYork. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (f)Cash and Cash EquivalentsCash and cash equivalents consist of cash on hand, demand deposits and time deposits placed with banks or other financial institutions which areunrestricted as to withdrawal and use and have original maturities less than three months. F-15Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (g)Term depositsAll bank deposits with original maturities of greater than 3 months but less than 1 year are classified as term deposits which are stated at their approximatefair value. (h)Restricted CashRestricted cash represents cash pledged to the bank as collateral for the Company’s notes payable. (i)Deferred Offering CostsDirect costs incurred by the Company attributable to its IPO of ordinary shares in December, 2013 and follow-on offering of ADSs in November, 2014 in theUnited States have been deferred and charged against the gross proceeds received from such offerings. (j)Fair Value of Financial InstrumentsFinancial instruments of the Group primarily comprise of cash and cash equivalents, term deposits, restricted cash, accounts receivable, amount due from arelated party, prepaid expenses and other current assets, notes payable, accrued expenses and other payables, and amount due to a related party. The carryingvalues of these financial instruments approximated their fair values due to the short-term maturity of these instruments. (k)Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded in the period when a loss is probable based on anassessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable balance iswritten off after all collection effort has ceased. (l)InventoriesInventories consist of new vehicles held for sale, stated at the lower of cost or market. Cost is determined using the specific identification method. Amountsare removed from inventories using the specific identification method. The Company’s purchase arrangements with certain automakers entitle the Companyto receive a specified amount of cash rebates if certain conditions are met during the stated rebate periods. The Company accounts for these rebates inaccordance with ASC 605-50, Revenue Recognition: Customer Payments and Incentives. Rebates relating to new vehicles purchased but still held by theCompany as of the balance sheet date are recorded as a reduction to cost of inventories while rebates relating to new vehicles purchased and sold during thereporting period are recorded as a reduction to cost of revenues. (m)Property and EquipmentProperty and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful lifeElectronic equipment 3 – 5 yearsOffice equipment 3 – 5 yearsMotor vehicles 4 – 5 yearsPurchased and internally-developed software 3–5 yearsLeasehold improvements Shorter of lease term orthe estimated usefullives of the assets F-16Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment arecapitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation withany resulting gain or loss reflected in the consolidated statements of comprehensive income. (n)Intangible AssetsIntangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination wererecognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method of amortizationthat reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. The estimated useful life for the intangible assetsis as follows: Category Estimated useful lifeTrademark 15 yearsCustomer relationship 5 yearsWebsites 4 yearsDomain names 4 yearsLicensing agreements 1.75 years (o)Long-term InvestmentsThe Company’s long-term investments consist of equity method investments. Investments in entities in which the Company can exercise significantinfluence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323(“ASC 323”), Investments-Equity Method and Joint Ventures. Under the equity method, the Company initially records its investments at cost. The Companysubsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or lossinto earnings after the date of investments. The Company evaluates the equity method investments for impairment under ASC 323. An impairment loss on theequity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. (p)GoodwillGoodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of anacquired business. The Group’s goodwill at December 31, 2014 and 2015 were related to its acquisition of Cheerbright, China Topside and Norstar. Inaccordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annuallyor more frequently if there are indicators of impairment present.Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occursor circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstancesinclude 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 toreporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of reportingunit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internalforecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, anddetermination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to yearbased on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value andgoodwill impairment for the reporting unit. F-17Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Management has determined that the Group represents the lowest level within the entity at which goodwill is monitored for internal management purposes.Management evaluated the recoverability of goodwill by performing a qualitative assessment before using a two-step impairment test approach at thereporting unit level. Based on an assessment of the qualitative factors, management determined that it is more-likely-than-not that the fair value of thereporting unit is in excess of its carrying amount. Therefore, management concluded that it was not necessary to proceed to the two-step goodwill impairmenttest. No impairment loss was recorded for any of the years presented.If the Group reorganizes its reporting structure in a manner that changes the composition of one or more of its reporting units, goodwill is reassigned based onthe relative fair value of each of the affected reporting units. (q)Impairment of Long-Lived Assets and IntangiblesThe Group evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes incircumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of anasset or a group of long-lived assets may not be recoverable. When these events occur, the Group evaluates impairment by comparing the carrying amount ofthe assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expectedundiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the excess of the carryingamount of the asset group over its fair value. No impairment charge was recorded for any of the years presented. (r)Revenue RecognitionThe Group’s revenue is primarily derived from online advertising and dealer subscription services. Revenue is recognized only when the price is fixed ordeterminable, persuasive evidence of an arrangement exists, the service is performed and collectability of the related fee is reasonably assured based on theguidance in ASC 605, Revenue Recognition.Contracts are signed to establish significant terms such as the price and online advertising services to be provided. The Group considers the price for itsservices to be fixed and determinable when the Group and its customers have signed the contracts. The Group assesses the creditworthiness of its customersprior to signing the contracts to ensure collectability is reasonably assured. Non-refundable payments received before all of the relevant criteria for revenuerecognition are satisfied are recorded as deferred revenue.Advertising servicesThe Group provides online advertising services to automakers, dealers and agency companies that represent automakers and dealers. The majority of theGroup’s online advertising service arrangements involve multiple deliverables such as banner advertisements, links and logos, other media insertions andpromotional activities that are delivered over different periods of time. Multiple contracts with the same customers are accounted for as separate arrangementsif the contracts are not linked together in a single transaction. Historically, the Company has not entered into multiple contracts with the same counterpartythat should be combined and accounted for as a single arrangement.In determining its best estimated selling price for each deliverable, the Group considered its overall pricing model and objectives, as well as market orcompetitive conditions that may impact the price at which the Group would transact if the deliverable were sold regularly on a standalone basis. The Groupmonitors the conditions that affect its determination of selling price for each deliverable and reassesses such estimates periodically. Revenue is recognizedratably when the advertisements are published over the stated display period in the case of websites or when the services have been rendered in the case ofpromotional activities. The amount recognized is limited to the amount that is not contingent upon the delivery of additional deliverables or meeting otherspecified performance conditions. F-18Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) New vehicle transaction businessThe new vehicle transaction business launched in mid- 2015 primarily includes direct vehicle sales and commission-based services to facilitate transactionson the Autohome Mall platform. For direct vehicle sales, the Company recognizes revenue on a gross basis as it acts as the principal, is the primary obligor ofthe sales arrangements and is subject to inventory risk. Revenue from direct vehicle sales are recognized when a sales contract has been executed and thevehicle has been delivered. Under the commission-based service arrangements, the Company earns commission for the new vehicle transactions facilitatedthrough the Autohome Mall platform. Commission revenue is recognized after the vehicles are delivered to customers. For the year ended December 31,2015, the revenues from new vehicle transaction business accounted for 5.2% of the consolidated net revenues of the Company and therefore, were notseparately disclosed as a separate line item but included in advertising services in the consolidated statements of comprehensive income.Dealer subscription servicesThe Group provides subscription services to automakers, dealers and agency companies that represent automakers and dealers. The Group makes availablethroughout the subscription period a webpage linked to its websites where the dealers can publish information such as the pricing of their products, locationsand addresses and other related information. Revenue is recognized ratably as services are provided over the subscription period.Rebates and cash incentives provided to customersThe Group provides rebates to agency companies based on cumulative annual advertising and service volume or surrounding occasional activities. TheGroup estimates its obligations under such agreements based on an evaluation of the likelihood of the agency companies’ achievement of the advertising andservice volume targets, giving consideration to the actual activity during the incentive period and, as appropriate, evaluation of the agency companies’purchase trends and history.The Group also provides cash incentives to automakers and dealers who participated in various incentive programs on the Group’s online transactionplatform. The cash incentives are accounted for as a reduction of revenue in accordance with ASC 605-50, “Revenue Recognition: Customer Payments andIncentives”.Therefore, rebates and cash incentives are recorded as a reduction of revenue in the period revenue is recognized in the Group’s consolidated financialstatements. The Group has estimated and recorded rebates and cash incentives to agency companies, dealers and automakers cumulatively amounting toRMB231,136, RMB395,175 and RMB578,548 (US$89,312) for the years ended December 31, 2013, 2014 and 2015, respectively. F-19Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (s)Cost of RevenuesCost of revenues consist primarily of bandwidth and internet data center fees, depreciation of the Group’s long-lived assets, amortization of acquiredintangible assets, VAT and surcharges, content-related costs and others. Content-related costs and others primarily comprise of salaries and benefits foremployees directly involved in revenue generation activities and other overhead expenses directly attributable to the provision of the online advertising anddealer subscription services and new vehicle transaction business costs. New vehicle transaction business costs include vehicle purchase cost and otherdirectly attributable costs. Rebates relating to new vehicles purchased and sold during the reporting period are recorded as a reduction to cost of revenues.The Group’s business is subject to VAT, surcharges and cultural construction fees levied on advertising related sales in China. Pursuant to ASC 605-45,Revenue Recognition—Principal Agent Considerations, the group elected to present VAT, surcharges and cultural construction fees as cost of revenues onthe consolidated statements of comprehensive income. For the years ended December 31, 2013, 2014 and 2015, the Company’s PRC subsidiaries and its VIEsare subject to a 6% VAT for the service provided and 17% for the new vehicles delivered under transaction business. Since November 2014, BeijingPrbrownies Software Co., Ltd. was entitled to a 14% VAT refund on the total VAT payable at the rate of 17% after registration of its software resolutions withthe relevant authority. (t)Advertising ExpendituresAdvertising expenditures which amounted to RMB86,198, RMB266,942 and RMB533,632 (US$82,379) for the years ended December 31, 2013, 2014 and2015, respectively, are expensed as incurred and are included in sales and marketing expenses. (u)Product Development ExpensesProduct development expenses consist primarily of employee costs related to personnel involved in the development and enhancement of the Group’sservice offerings on its websites, mobile application and related software. The Group recognizes these costs as expenses when incurred, unless they result insignificant additional functionality, in which case they are capitalized. (v)LeasesLeases are classified at the inception date as either a capital lease or an operating lease. The Group assesses a lease to be a capital lease if any of the followingconditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% ofthe property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more ofthe fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and anincurrence of an obligation at the inception of the lease. The Group has no capital leases for the years presented.All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leaseterms. The Group leases office space and employee accommodation under operating lease agreements. Certain of the lease agreements contain rent holidays.Rent holidays are considered in determining the straight-line rental expense to be recorded over the lease term. The lease term begins on the date of initialpossession of the lease property for purposes of recognizing lease expense on straight-line basis over the term of the lease. (w)Notes payableNotes payable represents short-term bank acceptance notes issued by financial institutions that entitle the holder to receive the stated amount from thefinancial institutions at the maturity date of the notes. The Group has utilized notes payable to settle amounts owed to the automakers. F-20Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (x)Income TaxesThe Group accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the differencebetween 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 areexpected to reverse. The Group records 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 theperiod that includes the enactment date.The Group applies ASC 740, Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a taxposition is required to meet before being recognized in the financial statements. The Group has recorded unrecognized tax benefits in the other liabilities lineitem in the accompanying consolidated balance sheets. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if andwhen required, as part of “income tax expense”, in the consolidated statements of comprehensive income.The Group’s estimated liability for unrecognized tax benefits and the related interest and penalties are periodically assessed for adequacy and may beaffected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statuteof limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded inthe Company’s consolidated financial statements. Additionally, in future periods, changes in facts and circumstances, and new information may require theGroup to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates arerecognized in the period in which they occur. (y)Treasury StockThe Company accounts for treasury stock repurchases at cost in accordance with ASC 505-30, Treasury Stock. When a corporation’s stock is retired, anexcess of repurchase price over par value may be allocated between additional paid-in capital and retained earnings. (z)Earnings Per ShareEarnings per share are calculated in accordance with ASC 260-10, Earnings per Share: Overall. Basic earnings per share are computed by dividing netincome attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two-class method.Under the two-class method, net income is allocated between the Class A and Class B ordinary shares based on their participating rights in undistributedearnings as if all the earnings for the reporting period had been distributed.Diluted earnings per ordinary share reflects the potential dilution that could occur if securities to issue ordinary shares were exercised. The dilutive effect ofoutstanding share-based awards is reflected in the diluted earnings per share by application of the treasury stock method. The computation of the dilutive netincome per share of Class A ordinary share assumes the conversion of Class B ordinary shares, while the diluted income per share of Class B ordinary sharedoes not assume the conversion of those shares.The participating rights (liquidation and dividend rights) of the holders of the Company’s Class A and Class B ordinary shares are identical, except withrespect to voting and conversion. As a result, and in accordance with ASC 260, the undistributed income for each year is allocated based on the contractualparticipating rights of the Class A and Class B ordinary shares as if the income for the year had been distributed. As the participating rights are identical, theundistributed income is allocated on a proportionate basis. F-21Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (aa)Comprehensive IncomeComprehensive income is defined to include all changes in shareholders’ equity except those resulting from investments by owners and distributions toowners. Among other disclosures, ASC 220-10, Comprehensive Income: Overall requires that all items that are required to be recognized under currentaccounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as otherfinancial statements. For each of the periods presented, the Company’s comprehensive income includes foreign currency translation adjustments and ispresented in the consolidated statement of comprehensive income. There have been no reclassifications out of accumulated other comprehensive income tonet income for the periods presented. (bb)Segment ReportingIn accordance with ASC 280-10, Segment Reporting: Overall, the Group’s chief operating decision maker has been identified as the Chief Executive Officerwho reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group as a whole;hence, the Group has only one operating segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As theGroup’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. (cc)Employee BenefitsThe full-time employees of the Company’s PRC subsidiaries and VIEs are entitled to staff welfare benefits including medical care, housing fund, pensionbenefits and unemployment insurance, which are governmental mandated defined contribution plans. These entities are required to accrue for these benefitsbased on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and makecash contributions to the state-sponsored plans out of the amounts accrued. The total expenses for the employee benefits plans were RMB23,410,RMB61,532 and RMB134,125 (US$20,705) for the years ended December 31, 2013, 2014 and 2015, respectively. (dd)Share-based CompensationShare-based awards granted to employees are accounted for under ASC 718, Compensation—Stock Compensation, which requires that share-based awardsgranted to employees be measured based on the grant date fair value and recognized as compensation expense over the requisite service period (which isgenerally the vesting period) in the consolidated statements of comprehensive income. The Company has elected to recognize compensation expense usingthe straight-line method for all share-based awards granted with service conditions that have a graded vesting schedule. ASC 718 requires forfeitures to beestimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates.Forfeiture rates are estimated based on historical and future expectations of employee turnover rates and are adjusted to reflect future changes incircumstances 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 the Company revises these estimates in the future, the share-based payments could be materiallyimpacted in the period of revision, as well as in following periods. The Company, 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 valueof the options granted to employees. Subsequent to the IPO, fair value of the ordinary shares will be the price of the Company’s publicly traded shares. (ee)Government GrantsGovernment grants primarily represent tax refunds for operating a business in certain jurisdictions and fulfilment of specified tax payment obligations, andsubsidies. These grants are not subject to any specific requirements and are recorded when received in “other income, net” in the Company’s consolidatedstatements of comprehensive income. For the years ended December 31, 2013, 2014 and 2015, RMB3,567, RMB2,984 and RMB11,281 (US$1,741) ofgovernment grants were recorded as other income, net. F-22Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (ff)Recent Accounting PronouncementsIn August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of FinancialStatements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidancerequires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity’s ability to continue as agoing concern within one year after the date that the financial statements are issued and to provide related footnote disclosures in certain circumstances. Theguidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. Theadoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements.In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). The amendments in this update simplify themeasurement of inventory. ASU 2015-11 states that an entity should measure inventory at the lower of cost and net realizable value. The amendments in ASU2015-11 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in ASU 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of theguidance is not expected to have significant impact on the Company’s consolidated financial statements.In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers-Deferral of the effective date (“ASU 2015-14”). Theamendments in ASU 2015-14 defer the effective date of ASU No. 2014-09, Revenue from Contracts with Customers issued in May 2014. According to theamendments in ASU 2015-14, the new revenue guidance ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017,including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning afterDecember 15, 2016, including interim reporting periods within that reporting period. The Company is in the process of evaluating its contracts withcustomers under the new standard and cannot currently estimate the financial statement impact of adoption.In November 2015, the FASB issued ASU No. 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). The amendments inthis update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in aclassified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interimperiods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption ofthe guidance is not expected to have significant impact on the Company’s consolidated financial statements. (gg)Concentration of RiskCredit riskFinancial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restrictedcash, term deposits and accounts receivable. As of December 31, 2014 and 2015, cash and cash equivalents, restricted cash and term deposits altogetheramounting to RMB2,772,191 and RMB4,169,053 (US$643,591), respectively, were deposited with various major reputable financial institutions located inthe PRC and international financial institutions outside of the PRC. Management believes that these financial institutions are of high credit quality andcontinually monitors the creditworthiness of these financial institutions. Historically, deposits in Chinese banks are secure due to the state policy onprotecting depositors’ interests. However, China promulgated a new Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains aseparate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on theBankruptcy Law. Under the new Bankruptcy Law, a Chinese bank may go into bankruptcy. In the event of bankruptcy of one of the banks which holds theGroup’s deposits, it is unlikely to claim its deposits back in full since it is unlikely to be classified as a secured creditor based on PRC laws. The Groupcontinues to monitor the financial strength of these financial institutions. F-23Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts receivable are typically unsecured and derived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk ismitigated by the Group’s assessment of its customers’ creditworthiness and its ongoing monitoring process of outstanding balances. The Group maintainsreserves for estimated credit losses and these losses have generally been within expectations. There was one customer and two customers that individuallyrepresented greater than 10% of the total accounts receivable as of December 31, 2014 and 2015, respectively.Business, customer, political, social and economic risksThe Group participates in a dynamic high technology industry and believes that changes in any of the following areas could have a material adverse effect onthe Group’s future financial position, results of operations or cash flows; changes in the overall demand for services and products; changes in businessofferings; competitive pressures due to new entrants; acceptance of the Internet as an effective marketing platform by China’s automotive industry; changesin certain strategic relationships or customer relationships; growth in China’s automotive industry, regulatory considerations; and risks associated with theGroup’s ability to attract and retain employees necessary to support its growth.There were no customers that individually represented greater than 10% of the total net revenue for the years ended December 31, 2013, 2014 and 2015,respectively.Currency convertibility riskThe Group transacts substantially all its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC governmentabolished the dual-rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, theunification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchangetransactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by thePBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’invoices, shipping documents and signed contracts.As of December 31, 2015, cash and cash equivalents, restricted cash and term deposits in PRC were held by PRC subsidiaries and the VIEs. Cash and cashequivalents , restricted cash and term deposits of PRC subsidiaries and VIEs are all denominated in RMB and altogether amounted toRMB3,177,830(US$490,572) and RMB70,989(US$10,959), respectively. Cash distributed outside of the PRC by PRC subsidiaries and the VIEs may besubject to PRC dividend withholding tax.Foreign Currency exchange rate riskSince July 21, 2005, the RMB was permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. There wasappreciation of RMB against US$ of approximately 2.9% in the years ended December 31, 2013 and depreciation of 2.4% and 4.2% in the year endedDecember 31, 2014 and 2015, respectively. Appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount availableto the Company. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of theCompany’s earnings, which in turn could adversely affect the price of the Company’s ADSs. F-24Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 3.ACCOUNTS RECEIVABLE, NETAccounts receivable and allowance for doubtful accounts consist of the following: December 31, 2014 2015 RMB RMB US$ Accounts receivable 737,030 1,077,771 166,379 Allowance for doubtful accounts (335) (2,315) (357) Total 736,695 1,075,456 166,022 As of December 31, 2014 and 2015, all accounts receivable were due from third party customers.An analysis of the allowance for doubtful accounts is as follows: December 31, 2014 2015 RMB RMB US$ Beginning balance 1,253 335 52 Additions charged to bad debt expense 348 2,621 404 Reversal (306) (442) (68) Write off (960) (199) (31) Ending balance 335 2,315 357 The Group recognized additions to allowance for doubtful accounts amounting to RMB251, RMB42 and RMB2,179 (US$336) within general andadministrative expenses, for the years ended December 31, 2013, 2014 and 2015, respectively. 4.INVENTORIESInventories consist of new vehicles held for sale amounting to nil and RMB111,667 (US$17,238) as of December 31, 2014 and 2015, respectively.No inventory obsolescence provision, or net losses on firm purchase commitments, measured based upon the lower of cost or market were recorded duringany of the years presented. 5.PREPAID EXPENSES AND OTHER CURRENT ASSETSPrepaid expenses and other current assets consist of the following: December 31, 2014 2015 RMB RMB US$ Prepayments 42,120 272,859 42,122 Rental deposits 843 10,051 1,552 Staff advances 2,435 6,529 1,008 Interest receivable 12,040 9,944 1,535 Receivables from third-party payment platform 12,283 4,598 710 Other receivables 4,190 34,696 5,356 73,911 338,677 52,283 Prepayments primarily include prepaid purchase cost for new vehicles, prepaid marketing expenses and prepaid VAT and surcharges. As of December 31,2014 and 2015, prepaid purchase cost for new vehicles were nil and RMB191,341 (US$29,538), respectively. F-25Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 6.TAXATIONEnterprise income taxCayman IslandsThe Company is incorporated in the Cayman Islands and conducts substantially all of its business through its PRC subsidiaries and VIEs. Under the currentlaws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by these entities to theirshareholders, no Cayman Islands withholding tax will be imposed.British Virgin IslandsCheerbright is incorporated in the British Virgin Islands and conducts substantially all of its businesses through its PRC subsidiary and VIEs. Under thecurrent laws of the British Virgin Islands, Cheerbright is not subject to tax on income or capital gains. In addition, upon payments of dividends by theseentities to their shareholders, no British Virgin Islands withholding tax will be imposed.Hong KongAutohome HK is incorporated in Hong Kong on March 16, 2012. In October 2013, Autohome HK acquired Autohome Media, a Hong Kong advertising andmarketing company. Also in 2015, three new entities are established in Hong Kong. Companies registered in Hong Kong are subject to Hong Kong ProfitsTax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. Theapplicable tax rate is 16.5% in Hong Kong. For the years ended December 31, 2013, 2014 and 2015, the Company did not make any provisions for HongKong profit tax as there were no assessable profits derived from or earned in Hong Kong during this period. Under the Hong Kong tax law, Autohome HK,Autohome Media, Autohome E-commerce Hong Kong Limited, Autohome Link Hong Kong Limited and Autohome Financing Hong Kong Limited areexempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.The PRCIn September 2010, Autohome WFOE was recognized as a “High-New Technology Enterprise” (“HNTE”), and is eligible for a 15% preferential tax rateeffective from 2010 to 2012 and thereafter for an additional three years through an administrative renewal process if it qualifies. Autohome WFOE met theHNTE requirements and completed the administrative renewal process in November 2013, qualifying for a 15% preferential tax rate for three years from 2013to 2015. In July 2015, Beijing Autohome Technologies Co., Ltd obtained the certificate of HNTE and is eligible for a 15% preferential tax rate from 2015 to2017. The aggregate effects of the preferential tax rate were RMB49,551, RMB89,394 and RMB56,389 (US$8,705) for the years ended December 31, 2013,2014 and 2015, respectively. The basic earnings per share effects related to the preferential tax rate were RMB0.50, RMB0.84 and RMB0.50 (US$0.08) forthe years ended December 31, 2013, 2014 and 2015, respectively.The Company’s remaining PRC subsidiaries and all the VIEs were subject to Enterprise Income Tax (“EIT”) at a rate of 25% for the years ended December 31,2013, 2014 and 2015.Under the New EIT Law, dividends paid by PRC enterprises out of profits earned post-2007 to non-PRC tax resident investors are subject to PRC withholdingtax of 10%. A lower withholding tax rate may be applied based on applicable tax treaty with certain countries. F-26Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 6.TAXATION(CONTINUED) The New EIT Law also provides that enterprises established under the laws of foreign countries or regions and whose “place of effective management” islocated within the PRC are considered PRC tax resident enterprises and subject to PRC income tax at the rate of 25% on worldwide income. The definition of“place of effective management” refers to an establishment that exercises, in substance, overall management and control over the production and business,personnel, accounting, properties, and other aspects of an enterprise. As of December 31, 2015, no detailed interpretation or guidance has been issued todefine “place of effective management”. Furthermore, as of December 31, 2015, the administrative practice associated with interpreting and applying theconcept of “place of effective management” is unclear. If the Company is deemed as a PRC tax resident, it would be subject to PRC tax under the New EITLaw. The Company has analyzed the applicability of this law and will continue to monitor the related development and application.The Company had minimal operations in jurisdictions other than the PRC. Income before income tax expense consists of: Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ PRC 570,659 946,261 1,292,104 199,468 Non PRC (2,203) (4,800) (15,913) (2,457) 568,456 941,461 1,276,191 197,011 The income tax expense is comprised of: Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Current 136,047 187,447 292,017 45,080 Deferred (23,753) 5,334 (6,475) (1,000) 112,294 192,781 285,542 44,080 The reconciliation of income tax expense for the years ended December 31, 2013, 2014 and 2015 is as follows: Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Income before income tax expense 568,456 941,461 1,276,191 197,011 Income tax expense computed at applicable tax rates (25%) 142,114 235,365 319,047 49,252 Non-deductible expenses 697 8,344 16,372 2,528 Change in valuation allowances 2,114 5,493 16,054 2,478 Outside basis difference 14,254 27,789 (17,329) (2,675) Effect of international tax rate difference 551 1,200 3,978 614 Interest expense relating to unrecognized tax benefits 2,115 3,984 3,809 588 Effect of preferential tax rate (49,551) (89,394) (56,389) (8,705) Income tax expense 112,294 192,781 285,542 44,080 F-27Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 6.TAXATION(CONTINUED) Deferred taxThe significant components of deferred taxes are as follows: December 31, 2014 2015 RMB RMB US$ Deferred tax assets Current Allowance for doubtful accounts 84 937 144 Accrued staff cost 31,463 3,396 524 Accrued expenses 7,802 8,972 1,385 Revenue recognition 17,941 30,912 4,772 Tax losses 2,962 4,071 629 VAT refund — 4,111 635 Less: Valuation allowances (2,283) (6,422) (991) Net current deferred tax assets 57,969 45,977 7,098 Non-current Tax losses 5,324 17,239 2,661 Less: Valuation allowances (5,324) (17,239) (2,661) Net non-current deferred tax assets — — — Total deferred tax assets 57,969 45,977 7,098 Deferred tax liabilities Non-current Intangible assets 9,677 8,539 1,318 Outside basis difference 498,700 481,371 74,311 Total non-current deferred tax liabilities 508,377 489,910 75,629 Total deferred tax liabilities 508,377 489,910 75,629 In assessing the realizability of deferred tax assets, the Group has considered whether it is more-likely-than-not that some portion or all of the deferred taxassets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods inwhich those temporary differences become deductible. The Group records a valuation allowance to reduce deferred tax assets to a net amount thatmanagement believes is more-likely-than-not of being realizable based on the weight of all available evidence. The Company recorded valuation allowancesagainst the deferred tax assets of five VIEs as of December 31, 2014 and eleven PRC subsidiaries and VIEs as of December 31, 2015, respectively, due to thecumulative tax loss positions and insufficient forecasted future taxable income.As of December 31, 2015, the Group had net operating losses of approximately RMB85,244 (US$13,159), which can be carried forward to offset taxableincome. The net operating loss will start to expire in 2017 if not utilized.As of December 31, 2014 and 2015, the Company intended to indefinitely reinvest the undistributed earnings of its PRC subsidiaries. As of December 31,2014 and 2015, the total amount of undistributed earnings from the Company’s PRC subsidiaries that are considered to be permanently reinvested wasRMB1,265,273 and RMB2,330,698 (US$359,798), respectively. As of December 31, 2014 and 2015, determination of the amount of unrecognized deferredtax liability related to the earnings that are indefinitely reinvested is not practical. F-28Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 6.TAXATION(CONTINUED) Unrecognized tax benefitsAs of December 31, 2014 and 2015, the Company recorded an unrecognized tax benefit of RMB24,058 and RMB32,596 (US$5,032), respectively, of whichnil and nil, respectively, are presented on a net basis against the deferred tax assets related to tax loss carry forwards on the consolidated balance sheets. Thisprimarily represents the estimated income tax expense the Group would pay should its income tax returns have been prepared in accordance with the currentPRC tax laws and regulations. It is possible that the amount of uncertain tax position will change in the next twelve months, however, an estimate of therange of the possible outcomes cannot be made at this time. As of December 31, 2014 and 2015, unrecognized tax benefits of RMB15,222 and RMB19,951(US$3,080), respectively, if ultimately recognized, will impact the effective tax rate.A roll-forward of unrecognized tax benefits is as follows: December 31, 2014 2015 RMB RMB US$ Beginning balance 26,659 17,274 2,667 Additions based on tax positions related to current year 4,662 4,729 730 Decreases based on tax positions related to prior years (14,047) — — Ending balance 17,274 22,003 3,397 During the years ended December 31, 2013, 2014 and 2015, the Company recorded late payment interest expense of RMB2,115, RMB3,984 and RMB3,809(US$588), and penalties of nil, nil and nil, respectively, as part of income tax expense. As of December 31, 2014 and 2015, the Company recorded RMB6,784and RMB10,593 (US$1,635) for late payment interest expense, and nil and nil for penalties.The tax years ended December 31, 2010 through 2015 for the Company’s PRC subsidiaries and VIEs remain subject to examination by the PRC taxauthorities. 7.PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: December 31, 2014 2015 RMB RMB US$ At cost: Electronic equipment 120,872 177,862 27,458 Office equipment 792 851 131 Motor vehicles 2,729 2,511 388 Purchased software 9,440 16,629 2,567 Leasehold improvements 14,749 29,872 4,611 148,582 227,725 35,155 Less: Accumulated depreciation (73,700) (124,171) (19,169) 74,882 103,554 15,986 Depreciation expense was RMB25,548, RMB35,084 and RMB51,337 (US$7,925) for the years ended December 31, 2013, 2014 and 2015, respectively. F-29Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 8.INTANGIBLE ASSETS, NETThe following tables present the Group’s intangible assets with definite lives as of the respective balance sheet dates: December 31, 2015 GrossCarryingValue AccumulatedAmortization Net CarryingValue RMB RMB RMB US$ Trademarks 68,310 (34,155) 34,155 5,273 Customer relationship 9,050 (9,050) — — Websites 27,000 (27,000) — — Domain names 1,870 (1,870) — — Licensing agreements 2,498 (2,498) — — 108,728 (74,573) 34,155 5,273 December 31, 2014 GrossCarryingValue AccumulatedAmortization NetCarryingValue RMB RMB RMB Trademarks 68,310 (29,601) 38,709 Customer relationship 9,050 (9,050) — Websites 27,000 (27,000) — Domain names 1,870 (1,870) — Licensing agreements 2,352 (1,661) 691 108,582 (69,182) 39,400 The intangible assets are amortized using the straight-line method, which is the Group’s best estimate of how these assets will be economically consumedover their respective estimated useful lives ranging from approximately 1.75 to 15 years. Amortization expense was RMB6,250, RMB6,053 and RMB5,247(US$810) for the years ended December 31, 2013, 2014 and 2015, respectively.The annual estimated amortization expenses for the acquired intangible assets for each of the next five years are as follows: 2016 2017 2018 2019 2020 RMB RMB RMB RMB RMB Trademarks 4,554 4,554 4,554 4,554 4,554 9.LONG-TERM INVESTMENTSThe Company’s long-term investments consist of equity method investments.Hunan Mango Autohome Automobile Sales Co., Ltd. (“Mango JV”)In May, 2015, the Group entered into a shareholder agreement with HappiGo Home Shopping Co. (“HappiGo”) to establish a strategic joint venture, MangoJV, with total capital contribution of RMB100,000, of which the Company subscribed for RMB49,000 or 49% of the ordinary shares. As of December 31,2015, the carrying value of the long-term investment was RMB49,102 (US$7,580). F-30Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 9.LONG-TERM INVESTMENTS(CONTINUED) Shanghai Youcheyoujia Financing Co., Ltd. (“Financing JV”)In September 2015, the Group signed a memorandum of understanding to establish a joint venture with three parties, one of which is Beijing ChehejiaInformation Technology Co., Ltd. that was founded by a director of the Company. As of December 31, 2015, the Group made a full payment of RMB75, 000,for a 25% equity interest of the Financing JV and the carrying value of the long-term investment was RMB75,000 (US$11,578).No impairment charges associated with the equity method investments were recognized during any of the years presented. 10.GOODWILLAt December 31, 2014 and 2015, goodwill was RMB1,504,278 and RMB1,504,278 (US$232,221), respectively.Goodwill was assessed for impairment as of December 31, 2014 and 2015, and no impairment loss was recognized in any of the years presented. 11.ACCRUED EXPENSES AND OTHER PAYABLESThe components of accrued expenses and other payables are as follows: December 31, 2014 2015 RMB RMB US$ VAT and surcharges payable 22,535 38,037 5,872 Payroll and welfare payable 160,404 239,945 37,041 Accrued rebates and cash incentives 283,025 410,893 63,431 Deposit from customers 13,289 19,458 3,004 Accrued expenses 15,565 71,961 11,109 Payable for purchase of fixed assets 10,598 2,612 403 Professional service fees 3,798 17,262 2,666 Others 15,320 33,305 5,141 524,534 833,473 128,667 F-31Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 12.RELATED PARTY TRANSACTIONS Name of related parties Relationship with the GroupTelstra International Limited A wholly-owned subsidiary of the Company’s major shareholderBeijing Australian Telecommunications Technical Consulting Limited A wholly-owned subsidiary of the Company’s major shareholderMango JV A equity-method investee of the Company’s subsidiaryDuring the year ended December 31, 2014, Telstra International Limited provided network maintenance services amounting to RMB384 to AutohomeInformation.During the year ended December 31, 2014, an executive of Telstra International Limited provided consulting services amounting to RMB266 to the Group.The outstanding balance has been paid in full as of December 31, 2014.During the year ended December 31, 2014, an executive of Beijing Australian Telecommunications Technical Consulting Limited provided consultingservices amounting to RMB218 to the Group. The outstanding balance has been paid in full as of December 31, 2014.During the year ended December 31, 2015, Telstra International Limited provided network services amounting to RMB261 (US$40) to AutohomeInformation. The outstanding balance has been paid in full as of December 31, 2015.During the year ended December 31, 2015, the Group facilitated the sales of Mango JV’s vehicles through the Autohome Mall platform and chargedcommission fee amounting to RMB1,645 (US$254). The outstanding receivable has not been settled as of December 31, 2015.As of December 31, 2015, the outstanding payable of RMB23,444 (US$3,619) to Mango JV represents the proceeds from vehicle sales on the Autohome Mallplatform collected by the Group on behalf of Mango JV.The Group had the following related party receivables outstanding as of December 31, 2014 and 2015: December 31, 2014 2015 RMB RMB US$ Mango JV — 1,645 254 F-32Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 12.RELATED PARTY TRANSACTIONS(CONTINUED) The Group had the following related party payables outstanding as of December 31, 2014 and 2015: December 31, 2014 2015 RMB RMB US$ Telstra International Limited 33 — — Mango JV — 23,444 3,619 33 23,444 3,619 13.COMMITMENTS AND CONTINGENCIESOperating lease commitmentsThe Group leases office space and employee accommodation in the PRC under non-cancellable operating leases expiring on various dates. Payments underoperating leases are expensed on a straight-line basis, after considering rent holidays, over the periods of the respective lease terms. The terms of the leases donot contain rent escalation or contingent rents for the years ended December 31, 2013, 2014 and 2015, total rental expenses for all operating leases amountedto RMB17,898, RMB30,461 and RMB49,892 (US$7,702) respectively.As of December 31, 2015, the Group has future minimum lease payments under non-cancellable operating leases, with initial terms in excess of one year, foroffice premises consisting of the following: RMB US$ 2016 66,352 10,243 2017 30,594 4,723 2018 20,910 3,228 2019 and thereafter — — 117,856 18,194 Capital commitmentsAs of December 31, 2015, the Company had commitment to make an investment of RMB10,000 in a joint venture to be established, accounting for a 20%shareholding. The joint venture is expected to provide data searching and analysis service.TaxationAs of December 31, 2014 and 2015, the Group has recognized liabilities of RMB24,058 and RMB32,596 (US$5,032), respectively, related to unrecognizedtax benefits (Note 6). The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws orexpiration of statutes of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing auditsby the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties. The Groupclassified the accrual for unrecognized tax benefits as a non-current liability.With respect to display advertising services, consistent with industry practice in the PRC, the Company regularly provides such services at a discount to itsstandard rates. These discounts are in the form of free advertising elements, of which the duration and other terms of services are specified as part of therevenue contract. The VAT pilot program replaced the business tax rules for advertising services in Beijing effective from September 1, 2012. There areuncertainties under the current VAT rules as to whether these free elements should constitute deemed services in addition to the chargeable elements ratherthan discounts to the overall revenue arrangements for tax purposes and thus be subject to VAT at the standard rates of services. The Company currentlyconsiders that such free elements do not give rise to deemed services for VAT purposes and the value-added tax for a revenue contract is calculated based onthe contract price for the overall arrangements. The rules related to the VAT pilot program are still evolving and the timing of the promulgation of the finaltax rules or related interpretation is uncertain. The estimated amount of this contingency as of December 31, 2015 is not determinable. F-33Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 14.COST OF REVENUES Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Content-related costs and others 95,987 127,929 298,160 46,027 Depreciation and amortization 26,439 31,703 43,160 6,663 Bandwidth and internet data center 21,047 30,713 38,893 6,004 VAT and surcharges 108,763 191,153 288,908 44,600 252,236 381,498 669,121 103,294 15.ORDINARY SHARESOn November 4, 2013, the Company entered into the West Crest Limited Share Purchase agreement and repurchased 3,856,564 treasury stock. OnNovember 15, 2013, the Company decided to retire the treasury stocks repurchased. As of December 31, 2013, there was an outstanding payable of RMB227,015 due to West Crest Limited, which was fully repaid in 2014.Upon the effectiveness of the IPO registration statement, the Company’s ordinary shares were redeemed and cancelled in consideration for the issuance of anequivalent number of Class A ordinary shares and Class B ordinary shares to the holders of former ordinary shares, respectively. Holders of Class A ordinaryshares and Class B ordinary shares have the same rights except for conversion and voting rights. Each Class B ordinary share is convertible into one Class Aordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares under any circumstances. Each Class A ordinaryshare is entitled to one vote. When the total number of ordinary shares held by Telstra constitutes no less than 51% of all of the Company’s issued andoutstanding ordinary shares, each Class B ordinary share is entitled to one vote; when the total number of ordinary shares held by Telstra drops below 51%but is no less than 39.3% of all of the Company’s issued and outstanding ordinary shares, each Class B ordinary share will carry such number of votes thatwould result in the total number of ordinary shares held by Telstra carrying, in the aggregate, 51% of the voting rights represented by all of the Company’sissued and outstanding ordinary shares; when the total number of ordinary shares held by Telstra drops below 39.3% of all of the Company’s issued andoutstanding ordinary shares, all Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares.Immediately prior to the completion of the IPO in December 2013, the Company had 27,354,496 Class A ordinary shares and 68,788,940 Class B ordinaryshares outstanding. During the IPO, the Company issued 8,993,000 Class A ordinary shares. As of December 31, 2013, the Company had ordinary sharesoutstanding comprised of 36,347,496 Class A ordinary shares and 68,788,940 Class B ordinary shares.Upon the completion of follow-on offering in November, 2014, 2,424,801 ADSs were issued by the Company and the net proceeds from the follow-onoffering amounts to US$97,344 net of issuance costs. There were nil, 6,964,612 and nil class B ordinary shares converted into Class A ordinary shares for theyears ended December 31, 2013, 2014 and 2015. As of December 31, 2015, the Company had ordinary shares outstanding, comprised of 51,230,242 Class Aordinary shares and 61,824,328 Class B ordinary shares. F-34Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 16.RESTRICTED NET ASSETSThe Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRCstatutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of its retained earnings, if any, as determined inaccordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared inaccordance with U.S.GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries.Under PRC law, the Company’s PRC subsidiaries are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fundand a staff welfare and bonus fund. The subsidiary is required to allocate at least 10% of their after tax profits on an individual company basis as determinedunder PRC accounting standards to the general reserve and has the right to discontinue allocations to the general reserve if such reserve has reached 50% ofregistered capital on an individual company basis. In addition, the registered capital of the Company’s PRC subsidiaries and VIEs is also restricted.Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the subsidiary. TheCompany’s VIEs in the PRC are also subject to similar statutory reserve requirements. These reserves can only be used for specific purposes and are nottransferable to the Group in the form of loans, advances or cash dividends. As of December 31, 2013, 2014 and 2015, the Company’s PRC subsidiaries andVIEs had appropriated RMB7,113, RMB8,836 and RMB19,175 (US$2,960), respectively, of retained earnings for its statutory reserves.As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be setaside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion oftheir net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict the Company’s PRC subsidiaries and VIEs fromtransferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2014 and 2015, amounts restricted are the net assets ofthe Company’s PRC subsidiaries and VIEs, which amounted to RMB2,626,141 and RMB3,740,507 (US$577,435), respectively. F-35Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 17.EARNINGS PER SHAREBasic and diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2013 2014 2015 Class A Class B Class A Class B Class A Class A Class B Class B RMB RMB RMB RMB RMB US$ RMB US$ Basic earnings per share: Numerator: Net income 142,053 314,109 270,988 477,692 444,916 68,684 545,733 84,247 Denominator: Weighted average ordinary sharesoutstanding 31,109,214 68,788,940 38,633,284 68,102,019 50,403,077 50,403,077 61,824,328 61,824,328 Basic earnings per share 4.57 4.57 7.01 7.01 8.83 1.36 8.83 1.36 Diluted earnings per share: Numerator: Net income 155,394 300,768 296,797 451,883 461,052 71,174 529,597 81,757 Reallocation of net income as a resultof conversion of Class B into Class Aordinary shares (Note 15) 300,768 — 451,883 — 529,597 81,757 — — Net income 456,162 300,768 748,680 451,883 990,649 152,931 529,597 81,757 Denominator: Weighted average ordinary sharesoutstanding 31,109,214 68,788,940 38,633,284 68,102,019 50,403,077 50,403,077 61,824,328 61,824,328 Conversion of Class B into Class Aordinary shares (Note 15) 68,788,940 — 68,102,019 — 61,824,328 61,824,328 — — Dilutive effect of share-based awards 4,431,072 — 6,096,282 — 3,419,421 3,419,421 — — Weighted-average number of sharesoutstanding- diluted 104,329,226 68,788,940 112,831,585 68,102,019 115,646,826 115,646,826 61,824,328 61,824,328 Diluted earnings per share 4.37 4.37 6.64 6.64 8.57 1.32 8.57 1.32 The effects of 43,846, nil and nil stock options were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutiveduring the years ended December 31, 2013, 2014 and 2015, respectively. The effects of 62,637, 300,185 and 256,165 restricted shares were excluded fromthe calculation of diluted earnings per share as their effect would have been anti-dilutive during the years ended December 31, 2013, 2014 and 2015,respectively. F-36Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 18.SHARE-BASED COMPENSATIONIn order to provide additional incentives to employees and to promote the success of the Company’s business, the Company adopted a share incentive planin 2011 (the “2011 Plan”) and a share incentive plan in 2013 (the “2013 Plan”), (collectively “the Plans). The Company may grant share-based awards to itsemployees, directors and consultants to purchase an aggregate of no more than 7,843,100 and 3,350,000 ordinary shares of the Company under the 2011 Planand 2013 Plan, respectively. The Plans were approved by the Board of Directors and shareholders of the Company on May 4, 2011 and November 4, 2013,respectively. The Plans are administered by the Board of Directors or any of its committees as set forth in the Plans.Share optionsThe following table summarizes the options granted to employees and directors during the years ended December 31, 2013, 2014 and 2015. Grant Date ContractualTerms NumberofAwards ExercisePrice(US$) VestingScheduleMay 27, 2013 10 years 560,000 2.20 (a)October 22, 2013 10 years 78,000 2.20 (a)October 22, 2013 10 years 150,000 2.20 (b)January 16, 2014 10 years 57,600 2.20 (c)January 16, 2014 10 years 120,000 2.20 (d)As of December 31, 2015, share-based awards to purchase 4,338,634 Class A ordinary shares were outstanding and share-based awards to purchase 1,361,133Class A ordinary shares were available for future grant under the 2011 Plan and 2013 Plan, respectively. (a)25% of the awards have vested on each of January 1, 2014 and 2015 and the remainder of the awards will vest on an annual basis each January 1,thereafter, until January 1, 2017.(b)25% of the awards have vested on each of July 1, 2014 and 2015 and the remainder of the awards will vest on an annual basis each July 1, thereafter,until July 1, 2017.(c)25% of the awards have vested on each of January 16, 2014 and 2015 and the remainder of the awards will vest on an annual basis each January 16,thereafter, until January 16, 2017.(d)25% of the awards have vested on January 1, 2015 and the remainder of the awards will vest on an annual basis each January 1, thereafter, untilJanuary 1, 2018.The following table summarizes the Company’s employee share option activity under the share option plans: Number ofoptions Weightedaverageexerciseprice Weightedaveragegrantdate fairvalue Weightedaverageremainingcontractualterm Aggregateintrinsicvalue US$ US$ Years US$ Outstanding, January 1, 2015 4,868,237 2.20 3.77 6.89 166,299 Granted — Exercised (2,228,172) 2.20 96,268 Forfeited (45,000) 2.20 Outstanding, December 31, 2015 2,595,065 2.20 5.00 6.21 84,911 Vested and expected to vest at December 31, 2015 2,579,525 2.20 4.95 6.20 84,402 Exercisable as of December 31, 2015 1,669,765 2.20 3.55 5.84 54,635 F-37Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 18.SHARE-BASED COMPENSATION (CONTINUED) The aggregate intrinsic value in the table above is calculated as the difference between the exercise price of the underlying awards and US$34.92, the closingstock price of the Company’s ordinary shares on December 31, 2015. The weighted-average grant-date fair value of options granted during the years endedDecember 31, 2013, 2014 and 2015 was US$4.95, US$34.57 and nil, respectively. The total grant date fair value of options vested during the years endedDecember 31, 2013, 2014 and 2015 was RMB25,173, RMB29,968 and RMB37,582(US$5,802). Total intrinsic value of options exercised during the yearsended December 31, 2013, 2014 and 2015 was nil, RMB693,878 and RMB623,605(US$96,268), respectively.The aggregate fair value of the outstanding options at the grant dates were determined to be RMB84,043(US$12,974) and such amount shall be recognizedas compensation expenses using the straight-line method for all employee share options granted with graded vesting. As of December 31, 2015, there wasRMB25,697(US$3,967) of total unrecognized share-based compensation expenses, net of estimated forfeitures, related to unvested share-based awards whichare expected to be recognized over a weighted-average period of 1.60 years. Total unrecognized compensation expenses may be adjusted for future changesin estimated forfeitures.Restricted sharesThe following table summarizes the restricted shares granted till December 31, 2015. Grant Date Vesting Schedule Number of Awards Fair Value per Shareat the Grant date(US$) November 4, 2013 (a) 400,000 12.38 May 8, 2014 (b) 100,000 29.00 October 9, 2014 (c) 406,000 39.35 December 9, 2014 (d) 1,063 36.71 January 23, 2015 (e) 781,000 35.00 April 1, 2015 (f) 68,000 44.03 April 30, 2015 (g) 7,054 51.04 August 19, 2015 (h) 248,500 31.49 October 1, 2015 (i) 136,000 32.32 October 30, 2015 (j) 100,000 36.14 (a)25% of the awards vested on each of September 29, 2014 and 2015 and the remainder of the awards will vest on an annual basis each September 29,thereafter, until September 29, 2017.(b)25% of the awards having vested on various dates ranging from March 14, 2015 to May 13, 2015, and the remainder of the awards vesting on anannual basis thereafter, until 2018.(c)25% of the awards having vested on various dates ranging from January 1, 2015 to October 1, 2015, and the remainder of the awards vesting on anannual basis thereafter, until 2018.(d)The restricted shares granted on December 9, 2014 were fully vested on the grant date.(e)25% of the awards having vested on January 1, 2016, and the remainder of the awards will vest on an annual basis each January 1, thereafter, untilJanuary 1, 2019.(f)25% of the awards vesting on April 1, 2016, and the remainder of the awards vesting on an annual basis each April 1, thereafter, until April 1, 2019.(g)25% of the awards vesting on various dates ranging from December 8, 2015 to January 11, 2016 and the remainder of the awards vesting on an annualbasis thereafter.(h)25% of the awards vesting on July 1, 2016, and the remainder of the awards vesting on an annual basis each July 1, thereafter, until July 1, 2019(i)25% of the awards vesting on dates of January 1, 2016 and October 1, 2016, and the remainder of the awards vesting on an annual basis thereafter, until2019.(j)25% of the awards vesting on January 1, 2016, and the remainder of the awards vesting on an annual basis thereafter, until 2019. F-38Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 18.SHARE-BASED COMPENSATION (CONTINUED) Restricted shares activity for the year ended December 31, 2015 was as follows: Numberof shares Weightedaverage grantdate fairvalue US$ Outstanding, January 1, 2015 795,000 27.87 Granted 1,340,554 34.70 Vested (224,235) 26.23 Forfeited (167,750) 36.12 Outstanding, December 31, 2015 1,743,569 32.54 Expected to vest, December 31, 2015 1,697,350 32.48 The weighted average grant-date fair value of restricted shares granted during the years ended December 31, 2013, 2014 and 2015 was US$12.38, US$37.30and US$34.70, respectively, which was derived from the fair value of the underlying ordinary shares. The total grant date fair value of restricted shares vestedduring the years ended December 31, 2013, 2014 and 2015 was nil, RMB7,925 and RMB38,104 (US$5,882). The aggregate fair value of the outstandingrestricted shares at the grant dates were determined to be RMB367,550 (US$56,740) and such amount shall be recognized as compensation expense using thestraight-line method for all restricted shares granted with graded vesting. As of December 31, 2015, there was RMB297,344 (US$45,902) of totalunrecognized share-based compensation expenses, net of estimated forfeitures, related to unvested restricted shares which are expected to be recognized overa weighted-average period of 2.89 years. Total unrecognized compensation expenses may be adjusted for future changes in estimated forfeitures.The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees. The model requires the input ofhighly subjective assumptions including the estimated expected stock price volatility and the exercise multiple for which employees are likely to exerciseshare options. For expected volatilities, the Company has made reference to the historical price volatilities of ordinary shares of several comparablecompanies in the same industry as the Company. For the exercise multiple, the Company has no historical exercise patterns as reference, thus the exercisemultiple is based on management’s estimation, which the Company believes is representative of the future exercise pattern of the options. The risk-free ratefor periods within the contractual life of the option is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The estimated fair value of theordinary shares, at the option grant dates prior to the IPO, was determined with assistance from an independent third party valuation firm. The Company’smanagement is ultimately responsible for the determination of the estimated fair value of its ordinary shares. Subsequent to the IPO, fair value of the ordinaryshares was the price of the Company’s publicly traded shares.The Company calculated the estimated fair value of the share-based awards on the respective grant dates using the binomial option pricing model with thefollowing assumptions: 2013 2014Fair value of ordinary share US$4.58-US$11.64 US$36.62Risk-free interest rates 2.07%-2.60% 2.909%Expected exercise multiple 2.2 2.2Expected volatility 53.70%-55.49% 53.5%Expected dividend yield 0.00% 0.00%Weighted average fair value per option granted US$3.03-US$9.69 US$34.52-US$34.59 F-39Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 18.SHARE-BASED COMPENSATION (CONTINUED) Share-based compensation expenses relating to options and restricted shares granted to employees recognized for the year ended December 31, 2013, 2014and 2015 is as follows: Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Cost of revenues 6,534 8,048 6,939 1,071 Sales and marketing expenses 4,375 14,644 36,584 5,648 General and administrative expenses 11,738 20,557 40,142 6,197 Product development expenses 2,961 13,417 24,280 3,748 25,608 56,666 107,945 16,664 F-40Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 19.CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANYCONDENSED BALANCE SHEETS December 31, 2014 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 234,034 136,810 21,120 Term deposits 685,633 667,911 103,108 Prepaid expenses and other current assets 7,591 10,397 1,605 Total current assets 927,258 815,118 125,833 Non-current assets: Other non-current assets 8,421 7,173 1,107 Investment in subsidiaries 2,737,009 4,047,714 624,859 Total non-current assets 2,745,430 4,054,887 625,966 Total assets 3,672,688 4,870,005 751,799 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 4,772 16,327 2,520 Due to subsidiaries 2,493 2,642 408 Total current liabilities 7,265 18,969 2,928 Total liabilities 7,265 18,969 2,928 Commitments and Contingencies Shareholders’ equity: Class A ordinary shares(par value of US$0.01 per share; 99,931,211,060 sharesauthorized; 48,777,835 and 51,230,242 shares issued and outstanding as ofDecember 31, 2014 and 2015, respectively) 3,301 3,452 533 Class B ordinary shares(par value US$0.01 per share; 68,788,940 shares authorized;61,824,328 and 61,824,328 shares issued and outstanding as of December 31, 2014and 2015, respectively) 4,183 4,183 646 Additional paid-in capital 2,649,111 2,787,103 430,255 Accumulated other comprehensive income 5,932 62,753 9,687 Retained earnings 1,002,896 1,993,545 307,750 Total shareholders’ equity 3,665,423 4,851,036 748,871 Total liabilities and shareholders’ equity 3,672,688 4,870,005 751,799 F-41Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 19.CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (CONTINUED) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Operating expenses: General and administrative expenses (1,125) (9,178) (24,235) (3,741) Operating losses (1,125) (9,178) (24,235) (3,741) Interest income — 4,973 11,526 1,779 Equity in income of subsidiaries 457,287 752,885 1,003,358 154,893 Income before income taxes 456,162 748,680 990,649 152,931 Income tax expense — — — — Net income 456,162 748,680 990,649 152,931 Other comprehensive income, net of tax of nil Foreign currency translation adjustments 1,734 3,946 56,821 8,772 Comprehensive income 457,896 752,626 1,047,470 161,703 CONDENSED STATEMENTS OF CASH FLOWS Year ended December 31, 2013 2014 2015 RMB RMB RMB US$ Net cash used in operating activities (3,294) (8,908) (2,017) (311) Net cash used in investing activities — (796,209) (132,976) (20,528) Net cash generated from financing activities 632,865 404,754 30,200 4,662 Effect of exchange rate changes on cash and cash equivalents 1,099 3,727 7,569 1,168 Net increase/(decrease) in cash and cash equivalents 630,670 (396,636) (97,224) (15,009) Cash and cash equivalents at beginning of year — 630,670 234,034 36,129 Cash and cash equivalents at end of year 630,670 234,034 136,810 21,120 (a)Basis of accountingFor the Company only condensed financial information, the Company records its investment in its subsidiaries and VIEs under the equity method ofaccounting as prescribed in ASC 323-10, Investments-Equity Method and Joint Ventures: Overall. Such investment is presented on the condensed balancesheets as “Investment in subsidiaries” and share of their income as “Equity in income of subsidiaries” on the condensed statements of comprehensive income.The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. (b)CommitmentsThe Company does not have any significant commitments or long-term obligations as of any of the years presented. F-42Table of ContentsAUTOHOME INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 20.SUBSEQUENT EVENTSIn February 2016, the Board of Directors of the Company adopted the 2016 Share Incentive Plan (“2016 Plan”) to attract and retain the best availablepersonnel, provide additional incentives to employees, directors and consultants and promote the success of the Company’s business. As of the date of thisreport, 2016 Plan is pending for ratification by the shareholders of the Company.On February 29, 2016, Beijing Prbrownies Software Co., Ltd. was recognized as an HNTE, qualifying for a preferential tax rate of 15% for three years from2015 to 2017. This change in the enacted tax rate will result in a decrease in income tax expense of RMB69,422 (US$10,717), which will be recorded in thefirst quarter of 2016. F-43Exhibit 4.58TERMINATION AGREEMENTThis TERMINATION AGREEMENT (“Agreement”) is entered into as of July 8, 2015 in Beijing of the People’s Republic of China (“PRC”)by and among A.Beijing Autohome Information Technology Co., Ltd., a company duly organized and existing under the PRC laws with its legal address at Room1001, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China. (Party A) B.Beijing Shengtuo Hongyuan Information Technology Co., Ltd., with its registered address at Room 1005, F/10, Tower B, No. 3, Danling Street,Haidian District, Beijing 100080, China (Party B); C.Beijing Cheerbright Technologies Co., Ltd., with its registered address at 1102, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080,China (Party C).(Individually a “Party”, and collectively the “Parties”)RECITALS D.The Parties entered into a series of agreements, with the signatories and dates of execution set forth in Schedule A (“Control Documents”) E.After the execution of the Control Documents. Party A transferred all its equity interest in Party B to Fan Zheng (50%) and Qin Zhi (50%) on July 8,2015; and F.The Parties hereby decide and agree to terminate and to be no longer bound by any rights or obligations arising from the Control Documents.NOW, THEREFORE, in consideration of the mutual agreements, covenants and other promises set forth herein, the mutual benefits to be gained by theperformance thereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, the Partieshereby agree as follows:ARTICLE I TERMINATION 1.1The Parties hereby confirm that all Control Documents to which any Party is bound are irrevocably terminated on the effective date of this Agreement(“Termination Date”). As of the Termination Date, the Control Documents shall have no further force and effect. The Parties acknowledge that eachParty thereto has no obligation, legal or otherwise, express or implied, on the part of any other Party thereto. Except as expressly set forth herein, theParties hereto have not stipulated any other obligation or undertaking, express or implied. 11.2The Parties undertake and covenant that, as of the Termination Date of this Agreement, the parties will not make any claim (whether monetary or not)against other parties and/or any of their affiliated entities in respect of all matters which have been agreed by the Parties as stipulated in the ControlDocuments or this Agreement. 1.3This Agreement will become effective as of the execution date by the Parties or their authorized representatives first written above.ARTICLE II CONFIDENTIALITY 2.1The Parties agree not to discuss, disclose, publish, or otherwise transmit this Agreement including, but not limited to, the identity and personalinformation of any Party to anyone other than: (i) as required by any law, regulation, court order, or similar legal requirement, or in connection withany filing with any governmental authority; and (ii) to comply with any obligations contained in this Agreement. 2.2Notwithstanding the above, the Parties shall have the right to discuss, disclose, publish or transmit this Agreement to their affiliates, officers,shareholders, members, legal counsel and advisors.ARTICLE III APPLICABLE LAW AND DISPUTE RESOLUTION 3.1The execution, validity, interpretation and implementation of this Agreement and the settlement of disputes under it shall be governed by the laws ofPRC. 3.2Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to China International Economic and TradeArbitration Commission (“CIETAC”) for arbitration, which shall be conducted in accordance with CIETAC’s rules in effect at the time of submissionof the dispute for arbitration. The place of arbitration shall be Beijing. The language for arbitration shall be English. The tribunal shall consist ofthree (3) arbitrators. The arbitral award is final and binding upon the parties.ARTICLE IV MISCELLANEOUS 4.1This Agreement shall constitute the entire agreement among the Parties in respect of the subject matter hereof and shall supersede any previousdiscussions, negotiations and agreements related thereto, 4.2This Agreement shall be amended only by a written agreement signed by the Parties, which amendment shall be attached to this Agreement. Ifrequired by law, the Parties shall obtain all requisite approvals from the relevant authorities to give effect to the amendment. 24.3Unless otherwise agreed upon by the Parties in writing, any failure or delay on the part of any Party to exercise any right, authority or privilege underthis Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shall any single or partial exercise of any right,authority or privilege preclude any other future exercise thereof. 4.4The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall not affect the validity orenforceability of any other provision of this agreement, 4.5This Agreement shall be valid and binding on the Parties, their successors and permitted assigns. 4.6No Party shall assign any of its rights or obligations hereunder without the prior written consent of the other Parties. 4.7This Agreement is written in Chinese and English versions and in three (3) counterparts in each language version. The two language versions shallhave equal validity and legal effect. Each of the Parties acknowledges that it has reviewed both language versions of this Agreement and that they arethe same in all material respects.[Remainder of page intentionally left blank.] 3IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed, all as of the date first written above.For and on Behalf ofParty A Beijing Autohome Information Technology Co., Ltd. By: /s/ Li XiangName: Li XiangTitle: Legal RepresentativeCompany Seal: /s/ Beijing Autohome Information Technology Co., Ltd.For and on Behalf ofParty B: Beijing Shengtuo Hongyuan Information Technology Co., Ltd. By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., LtdFor and on Behalf ofParty C: Beijing Cheerbright Technologies Co., Ltd. By: /s/ Li XiangName: Li XiangTitle: Legal RepresentativeCompany Seal: /s/ Beijing Cheerbright Technologies Co., LtdSchedule AExclusive Technology Service Agreement (Chinese and English) dated 8 November 2010 between Beijing Shengtuo Hongyuan Information TechnologyCo., Ltd. and Beijing Cheerbright Technologies Co., Ltd.;Equity Interest Pledge Agreement (Chinese and English) dated 8 November 2010 between Beijing Autohome Information Technology Co., Ltd. andBeijing Cheerbright Technologies Co., Ltd..;Power Of Attorney dated 12 November 2010 by Beijing Autohome Information Technology Co., Ltd.; andEquity Option Agreement(Chinese and English) dated 12 November 2010 between Beijing Autohome Information Technology Co., Ltd. and BeijingCheerbright Technologies Co., Ltd.Supplementary Agreement to Exclusive Technical Consulting and Services Agreement(Chinese and English) dated 12 July 2011 between BeijingShengtuo Hongyuan Information Technology Co., Ltd. and Beijing Cheerbright Technologies Co., Ltd.Exhibit 4.59Equity Transfer AgreementThis Equity Transfer Agreement (this “Agreement”) is entered into in Beijing, the People’s Republic of China (the “PRC”) on July 8, 2015 by andbetween: (1)Beijing Autohome Information Technology Co., Ltd. (“Party A”), a limited liability company duly incorporated and validly existing under the PRClaws, with its address at Room 1011-1015 Block B, 3 Dan Leng Street, Haidian District, Beijing, and its legal representative being Li Xiang; and (2)Qin Zhi (“Party B”), with its residence located at 452 Door 4, 31 Yuetan Street (S) C, Xicheng District, Beijing, and ID No.: ***.(each a “Party,” and both the “Parties”).WHEREAS A.Beijing Shengtuo Hongyuan Information Technology Co., Ltd. (the “Company”), a limited liability company duly incorporated and validly existingunder the PRC Laws (as defined below), with a registered capital of RMB10 million. B.As of the date first above written herein, Party A holds 100% equity interests of the Company. C.Party A intends to transfer to Party B 50% of its equity interests in the Company (the “Equity”) in accordance with the following terms andconditions (the “Equity Transfer”).In consideration of the above, the Parties hereby agree as follows:Article 1 Definitions and Interpretation 1.1DefinitionsUnless otherwise specified, the following terms herein shall have the following meanings: Affiliate with respect to any Party, means any third party that controls, is controlled by or under common control with, directly orindirectly, such Party; “control” (including “controlled” and “common control”) means direct or indirect power to direct orcause the direction of the management or decision-making, whether realized through holding of securities, partnership orother owner’s equity, or by contract or otherwise. - 1 -PRC Laws all currently effective PRC laws and regulations, including laws, regulations; resolutions, decisions, decrees, orders of thegovernment authorities and other documents having legislative, administrative or judicial nature.RelatedDocuments all documents executed under the PRC Laws for consummation of the Equity Transfer, including without limitationapplications, authorizations, written consents and Board resolutions. 1.2InterpretationThe headings used herein are for reference only and shall not affect the meaning or interpretation of any provision hereof. Any term or exhibitmentioned herein refers to the specific term or exhibit hereof. Words in plural forms include the singular form and vice versa. Unless otherwisespecified, any day, month or year mentioned herein shall refer to a calendar day, month and year, and any reference to business day shall mean anydate the PRC commercial banks are open for business. Words importing masculine gender shall include feminine gender, and vice versa.Article 2 Equity Transfer 2.1Equity Transfer 2.1.1Party A shall sell to Party B, and Party B shall purchase from Party A, 50% of Party A’s equity interests in the Company. 2.1.2Party A acknowledges and agrees to provide all assistance necessary for obtaining the approval from the approval authority in connectionwith the Equity Transfer, including without limitation procuring the Company’s directors to sign on all the documents necessary for relevantfilings and applications. 2.2Purchase Price 2.2.1The purchase price payable by Party B to Party A for the Equity shall be RMB five million (RMB5,000,000); 2.2.2Party B shall bear any bank charges relating to the payment of the purchase price, and Party A shall bear all taxes and other fees relating to theEquity Transfer.Article 3 Representations and Warranties 3.1Mutual Representations and WarrantiesEach Party represents and warrants that as of the date of the Equity Transfer: - 2 - 3.1.1it has all necessary rights and authority to sign, deliver and perform this Agreement and all other Related Documents to which it is a party; 3.1.2the execution, delivery and performance of this Agreement and any Related Document to which it is party will not conflict, contravene orviolate its constitutional documents or any contract, agreement, understanding or other legal arrangement, law or regulation it shall complywith; and 3.1.3in connection with the execution, delivery and performance of this Agreement and any Related Document to which it is a party, it hasobtained necessary consents, approvals or authorizations from, or made representations, filings or registrations to, any government or otherperson. 3.2Representations and Warranties of Party AParty A further represents and warrants to Party B that as of the date of the Equity Transfer: 3.2.1there is no pledge or other encumbrance on the Equity; 3.2.2the Equity Transfer is not restricted due to the Company’s violation of any PRC Law for reasons attributable to Party A; 3.2.3there is no pending litigation, third party claim, order or investigation initiated against the Company by any third party, court, governmentauthority or arbitration body for reasons attributable to Party A; 3.2.4the Equity Transfer is not subject to any agreement relating to any other entity owned or formerly owned by the Company, any of theCompany’s Affiliates, Party A or individual shareholders of Party A; 3.2.5prior to the execution of this Agreement, Party A has caused the directors and/or persons it appoints to the Board of the Company to signRelated Documents; and 3.2.6at the execution of this Agreement, Party A will issue a dismissal letter to the directors and/or persons it appoints to the Board of theCompany.Article 4 Effective Date and Termination 4.1Effective DateThis Agreement shall become effective as of the date when the registration authority issues the Company’s amended approval certificate confirmingthat the Equity Transfer has been approved. 4.2TerminationEither Party may decide, at its own discretion, to cancel this Agreement with immediate effect by sending a written notice to the other Party within120 days upon the execution hereof. - 3 -Article 5 Default 5.1Event of DefaultAny one or more of the following events shall constitute a breach hereof: 5.1.1either Party substantially breaches the provisions hereof, or fails to perform its obligations hereunder in any material respect, and fails tocorrect such breach or non-performance within 10 days after receipt of a written notice from the other Party requiring such correction; and 5.1.2any representation or warranty of either Party hereunder is proved to be fake or misleading. 5.2Loss CompensationEither Party who violates this Agreement shall compensate the other Party for all losses incurred as a result of such violation, excluding the indirectlosses. 5.3Continued PerformanceAfter the occurrence of an default hereunder, if the non-defaulting Party requires continued performance of this Agreement, the defaulting Party shallcontinue to perform this agreement, regardless of whether an indemnity exists in connection with such default or whether such indemnity has beenpaid.Article 6 General 6.1ConfidentialityEach Party agrees to keep in strict confidence and not to disclose to any third party any information relating to the negotiations of the Equity Transferand other related information a Party deems confidential and discloses to the other during the negotiations of this Agreement, including withoutlimitation the information relating to either Party’s business and intellectual property. 6.2Language and CounterpartsThis Agreement is made in 2 counterparts, one for each Party, and the rest shall be submitted to approval authority and registration authority forapproval. 6.3NoticesAll notices and correspondences between the Parties shall be made in written form and in Chinese language, to be delivered to the proper addresseslisted as follows by facsimile, personal delivery (including express courier service) or registered mail: - 4 -If to Party A:Beijing Autohome Information Technology Co., Ltd.Address: 10F Block B, 3 Dan Leng Street, Haidian District, BeijingTel: 010-59857001Fax: 010-59857004Attention: Li XiangIf to Party B:Qin ZhiAddress: 10F Block B, 3 Dan Leng Street, Haidian District, BeijingTel: 010-59857002Fax: 010-59857387Attention Qin ZhiThe notices or correspondences shall be deemed served at the following time: 6.3.1if by fax, at the time shown on the transmission record, except that if such fax is sent after 5 pm or on a non-business day in the recipient’splace, the delivery date shall be the immediately following business day; 6.3.2if by personal delivery (including express courier service), on the date when the recipient signs for acceptance; if the recipient refuses to sign,then on the last delivery date specified on the delivery proof or the date when the delivery is refused, whichever is later; or 6.3.3if by registered mail, on the 7th day after the postal office issues the receipt. 6.4Governing Law and Dispute Resolution 6.4.1The formation, validity, interpretation, execution and resolution of disputes hereunder shall be governed by the PRC Laws. 6.4.2In case of any dispute in connection with this Agreement, both Parties shall first try to resolve such dispute through amicable negotiations ormediation. If such dispute fails to be resolved as aforementioned within 30 days after the negotiation begins, either Party may submit suchdispute to China International Economic and Trade Arbitration Commission for resolution by arbitration. 6.5WaiverEither Party’s failure or delay in exercising any of its rights hereunder shall not jeopardize such right or constitute a waiver of such rights, nor shall itconstitute an acquiesce in breach of any of its representations, warranties, covenants and agreement. - 5 -6.6AmendmentAny amendment or other revisions hereto must be executed by the authorized representatives of the Parties hereto. 6.7AssignmentNeither Party may assign its rights and/or obligations hereunder without prior written consent of the other Party. 6.8SeverabilitySubject to Article 6.4 hereof, to the extent any provision hereof is subject to any dispute or is adjudicated as invalid or unenforceable by a competentcourt, arbitration body or government authority, the remaining parts of this Agreement shall remain fully valid and enforceable.[The rest of this page is intentionally left blank] - 6 -IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties on the date first above written. Party A:Beijing Autohome Information Technology Co., Ltd.(official seal: /s/ Beijing Autohome Information Technology Co., Ltd.) Party B:/s/ Li Xiang /s/ Qin ZhiLegal Representative: Li XiangDate: July 8, 2015 Qin ZhiDate: July 8, 2015 - 7 -Exhibit 4.60Equity Transfer AgreementThis Equity Transfer Agreement (this “Agreement”) is entered into in Shanghai, the People’s Republic of China (the “PRC”) on July 8, 2015 by andbetween: (1)Beijing Autohome Information Technology Co., Ltd. (“Party A”), a limited liability company duly incorporated and validly existing under the PRClaws, with its address at Room 1011-1015 Block B, 3 Dan Leng Street, Haidian District, Beijing, and its legal representative being Li Xiang; and (2)Fan Zheng (“Party B”), with its residence located at Room 302, Suite 2, Block 2, 336 Xin Shi Road (N), Qiao Xi District, Shijiazhuang, HebeiProvince, and ID No.: ***.(each a “Party,” and both the “Parties”).WHEREAS A.Beijing Shengtuo Hongyuan Information Technology Co., Ltd. (the “Company”), a limited liability company duly incorporated and validly existingunder the PRC Laws (as defined below), with a registered capital of RMB10 million. B.As of the date first above written herein, Party A holds 100% equity interests of the Company. C.Party A intends to transfer to Party B 50% of its equity interests in the Company (the “Equity”) in accordance with the following terms and conditions(the “Equity Transfer”).In consideration of the above, the Parties hereby agree as follows:Article 1 Definitions and Interpretation 1.1DefinitionsUnless otherwise specified, the following terms herein shall have the following meanings: Affiliate with respect to any Party, means any third party that controls, is controlled by or under common control with, directly or indirectly,such Party; “control” (including “controlled” and “common control”) means direct or indirect power to direct or cause the directionof the management or decision-making, whether realized through holding of securities, partnership or other owner’s equity, or bycontract or otherwise. - 1 -PRC Laws all currently effective PRC laws and regulations, including laws, regulations; resolutions, decisions, decrees, orders of thegovernment authorities and other documents having legislative, administrative or judicial nature.RelatedDocuments all documents executed under the PRC Laws for consummation of the Equity Transfer, including without limitationapplications, authorizations, written consents and Board resolutions. 1.2InterpretationThe headings used herein are for reference only and shall not affect the meaning or interpretation of any provision hereof. Any term or exhibitmentioned herein refers to the specific term or exhibit hereof. Words in plural forms include the singular form and vice versa. Unless otherwisespecified, any day, month or year mentioned herein shall refer to a calendar day, month and year, and any reference to business day shall mean anydate the PRC commercial banks are open for business. Words importing masculine gender shall include feminine gender, and vice versa.Article 2 Equity Transfer 2.1Equity Transfer 2.1.1Party A shall sell to Party B, and Party B shall purchase from Party A, 50% of Party A’s equity interests in the Company. 2.1.2Party A acknowledges and agrees to provide all assistance necessary for obtaining the approval from the approval authority in connectionwith the Equity Transfer, including without limitation procuring the Company’s directors to sign on all the documents necessary for relevantfilings and applications. 2.2Purchase Price 2.2.1The purchase price payable by Party B to Party A for the Equity shall be RMB five million (RMB5,000,000); 2.2.2Party B shall bear any bank charges relating to the payment of the purchase price, and Party A shall bear all taxes and other fees relating to theEquity Transfer.Article 3 Representations and Warranties 3.1Mutual Representations and WarrantiesEach Party represents and warrants that as of the date of the Equity Transfer: - 2 - 3.1.1it has all necessary rights and authority to sign, deliver and perform this Agreement and all other Related Documents to which it is a party; 3.1.2the execution, delivery and performance of this Agreement and any Related Document to which it is party will not conflict, contravene orviolate its constitutional documents or any contract, agreement, understanding or other legal arrangement, law or regulation it shall complywith; and 3.1.3in connection with the execution, delivery and performance of this Agreement and any Related Document to which it is a party, it hasobtained necessary consents, approvals or authorizations from, or made representations, filings or registrations to, any government or otherperson. 3.2Representations and Warranties of Party AParty A further represents and warrants to Party B that as of the date of the Equity Transfer: 3.2.1there is no pledge or other encumbrance on the Equity; 3.2.2the Equity Transfer is not restricted due to the Company’s violation of any PRC Law for reasons attributable to Party A; 3.2.3there is no pending litigation, third party claim, order or investigation initiated against the Company by any third party, court, governmentauthority or arbitration body for reasons attributable to Party A; 3.2.4the Equity Transfer is not subject to any agreement relating to any other entity owned or formerly owned by the Company, any of theCompany’s Affiliates, Party A or individual shareholders of Party A; 3.2.5prior to the execution of this Agreement, Party A has caused the directors and/or persons it appoints to the Board of the Company to signRelated Documents; and 3.2.6at the execution of this Agreement, Party A will issue a dismissal letter to the directors and/or persons it appoints to the Board of theCompany.Article 4 Effective Date and Termination 4.1Effective DateThis Agreement shall become effective as of the date when the registration authority issues the Company’s amended approval certificate confirmingthat the Equity Transfer has been approved. 4.2TerminationEither Party may decide, at its own discretion, to cancel this Agreement with immediate effect by sending a written notice to the other Party within120 days upon the execution hereof. - 3 -Article 5 Default 5.1Event of DefaultAny one or more of the following events shall constitute a breach hereof: 5.1.1either Party substantially breaches the provisions hereof, or fails to perform its obligations hereunder in any material respect, and fails tocorrect such breach or non-performance within 10 days after receipt of a written notice from the other Party requiring such correction; and 5.1.2any representation or warranty of either Party hereunder is proved to be fake or misleading. 5.2Loss CompensationEither Party who violates this Agreement shall compensate the other Party for all losses incurred as a result of such violation, excluding the indirectlosses. 5.3Continued PerformanceAfter the occurrence of an default hereunder, if the non-defaulting Party requires continued performance of this Agreement, the defaulting Party shallcontinue to perform this agreement, regardless of whether an indemnity exists in connection with such default or whether such indemnity has beenpaid.Article 6 General 6.1ConfidentialityEach Party agrees to keep in strict confidence and not to disclose to any third party any information relating to the negotiations of the Equity Transferand other related information a Party deems confidential and discloses to the other during the negotiations of this Agreement, including withoutlimitation the information relating to either Party’s business and intellectual property. 6.2Language and CounterpartsThis Agreement is made in 2 counterparts, one for each Party, and the rest shall be submitted to approval authority and registration authority forapproval. 6.3NoticesAll notices and correspondences between the Parties shall be made in written form and in Chinese language, to be delivered to the proper addresseslisted as follows by facsimile, personal delivery (including express courier service) or registered mail: - 4 -If to Party A:Beijing Autohome Information Technology Co., Ltd.Address:Tel:Fax:Attention: 10F Block B, 3 Dan Leng Street, Haidian District, Beijing010-59857001010-59857004Li XiangIf to Party B:Fan ZhengAddress:Tel:Fax:Attention 10F Block B, 3 Dan Leng Street, Haidian District, Beijing010-59857002010-59857387Fan ZhengThe notices or correspondences shall be deemed served at the following time: 6.3.1if by fax, at the time shown on the transmission record, except that if such fax is sent after 5 pm or on a non-business day in the recipient’splace, the delivery date shall be the immediately following business day; 6.3.2if by personal delivery (including express courier service), on the date when the recipient signs for acceptance; if the recipient refuses to sign,then on the last delivery date specified on the delivery proof or the date when the delivery is refused, whichever is later; or 6.3.3if by registered mail, on the 7th day after the postal office issues the receipt. 6.4Governing Law and Dispute Resolution 6.4.1The formation, validity, interpretation, execution and resolution of disputes hereunder shall be governed by the PRC Laws. 6.4.2In case of any dispute in connection with this Agreement, both Parties shall first try to resolve such dispute through amicable negotiations ormediation. If such dispute fails to be resolved as aforementioned within 30 days after the negotiation begins, either Party may submit suchdispute to China International Economic and Trade Arbitration Commission for resolution by arbitration. 6.5WaiverEither Party’s failure or delay in exercising any of its rights hereunder shall not jeopardize such right or constitute a waiver of such rights, nor shall itconstitute an acquiesce in breach of any of its representations, warranties, covenants and agreement. - 5 -6.6AmendmentAny amendment or other revisions hereto must be executed by the authorized representatives of the Parties hereto. 6.7AssignmentNeither Party may assign its rights and/or obligations hereunder without prior written consent of the other Party. 6.8SeverabilitySubject to Article 6.4 hereof, to the extent any provision hereof is subject to any dispute or is adjudicated as invalid or unenforceable by a competentcourt, arbitration body or government authority, the remaining parts of this Agreement shall remain fully valid and enforceable.[The rest of this page is intentionally left blank] - 6 -IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties on the date first above written. Party A:Beijing Autohome Information Technology Co., Ltd.(official seal: /s/ Beijing Autohome Information Technology Co., Ltd.) Party B:/s/ Li Xiang /s/ Fan ZhengLegal Representative: Li Xiang Date: July 8, 2015 Fan Zheng Date: July 8, 2015 - 7 -Exhibit 4.61 Exclusive Technical Consulting andServices Agreement betweenBeijing Chezhiying Technologies Co., Ltd.andBeijing Shengtuo Hongyuan Information Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS ARTICLE PAGE 1. APPOINTMENT AND PROVISION OF SERVICES 3 2. INTELLECTUAL PROPERTY RIGHTS 4 3. SERVICE FEE AND PAYMENT 4 4. REPRESENTATIONS AND WARRANTIES 4 5. CONFIDENTIALITY 5 6. BREACH 5 7. FORCE MAJEURE 5 8. EFFECTIVE DATE AND TERM 6 9. TERMINATION 7 10. MISCELLANEOUS 7 EXHIBIT: I. SCOPE OF SERVICES II. CALCULATION AND PAYMENT OF THE SERVICE FEE Exclusive Technical Consulting and Services Agreement - 2 -THIS EXCLUSIVE TECHNICAL CONSULTING AND SERVICES AGREEMENT (Agreement) is entered into on July 8, 2015 (Execution Date) inBeijing, the People’s Republic of China (PRC).between (1)Beijing Cheerbright Chezhiying Technologies Co., Ltd. , a company duly organized and existing under the PRC lawswith its legal address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China. (Party A);and (2)Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , with its registered address at Room 1005, F/11,Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party B).Recitals A.Party A is a domestic company duly incorporated and validly existing under the laws of the PRC, which engages in the business of advertisingagency. Party A wishes to develop its technology, improve its management and increase and enhance its market position. B.Party B is a wholly foreign owned enterprise duly incorporated and validly existing under the laws of the PRC, which holds the resources andqualifications for technical and consulting services. Party B is engaged in research and development relating to networks and has expertise inproviding technical training and consulting services.NOW, THEREFORE, the parties agree as follows: 1.APPOINTMENT AND PROVISION OF SERVICES 1.1Scope of Services. Party A hereby appoints Party B to provide Party A with the Services detailed in the Exhibit I (Services). 1.2Provision of Services. The Parties agree that Party B shall provide the Services to Party A on an exclusive basis, for the duration of theterm of this Agreement and at standards commonly accepted in the market. 1.3Financial Support. To ensure that the cash flow requirements of Party A’s ordinary operations are met and/or to set off any loss accruedduring such operations, Party B is obligated, only to the extent permissible under PRC law, to provide financing support for Party A,whether or not Party A actually incurs any such operational loss. Party B’s financing support for Party A may take the form of bankentrusted loans or borrowings. Contracts for any such entrusted loans or borrowings shall be executed separately. Party B will not requestrepayment if Party A is unable to do so. Exclusive Technical Consulting and Services Agreement - 3 -2.INTELLECTUAL PROPERTY RIGHTSThe Parties agree that the intellectual property rights created by Party B in the course of performing this Agreement (including without limitationany copyrights, trademarks or logos registered or not, patents and proprietary technology), shall belong to Party B. 3.SERVICE FEE AND PAYMENT 3.1Service Fee. The Parties agree that the Service Fee under this Agreement shall be determined according to the Exhibit II. 3.2Payment Method. Party B shall, within the first 5 days of each month, provide Party A with written statement of the service fee spentproviding the Services during the previous month. Party A shall confirm to Party B in writing within 3 business days of receipt that theservice see is correct. If Party A fails to provide such confirmation on time, Party A shall be deemed to have confirmed Party B’sstatement. Party A shall pay the service fee to Party B’s designated account within 10 days after confirming the service fee provided inParty B’s statement. 4.REPRESENTATIONS AND WARRANTIESEach party represents and warrants to the other that, as of the date of signing hereof: 4.1it has full power and authority as an independent legal person to execute and deliver this Agreement and to carry out its responsibilitiesand obligations hereunder; 4.2its execution and performance of this Agreement will not result in a breach of any law, regulation, authorization or agreement to which itis subject. Exclusive Technical Consulting and Services Agreement - 4 -5.CONFIDENTIALITY 5.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all information relating to or arisen from thisAgreement, or made available under this Agreement to a party or any associate thereof (Confidential Information). Without the priorwritten consent of the other party, no party shall disclose any Confidential Information to any third party unless the disclosure is requiredby law or by enforceable orders of the court or related government departments. Under such circumstances, the party required to disclosethe Confidential Information shall notify the other party immediately, take all possible measures to minimize the disclosure, and notifythe persons to whom information is being disclosed of the confidentiality obligation. Notwithstanding anything to the contrary above,Party A shall have the full right to disclose any Confidential Information to its shareholders, affiliates or professional advisors. 5.2Obligations upon Termination. Upon termination of this Agreement, either party shall, at the request of the other party, return anydocument, material, database, equipment, or software containing the Confidential Information to the other party. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, either party shall destroy all the Confidential Informationbelonging to the other party and delete such Confidential Information from any memory devices. No party shall be permitted to continueusing the Confidential Information in any way after the termination of this Agreement. 5.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive thetermination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. 6.BREACH 6.1Written Notice. If a party breaches any of its respective representations, warranties or obligations under this Agreement, the non-breaching party may send a written notice to the breaching party demanding rectification within 10 days. 6.2Compensation. The breaching party shall be liable to compensate the non-breaching party for any losses it has sustained as a result ofthe breach, including loss of profits. 7.FORCE MAJEURE 7.1Definition. The term Force Majeure refers to any unforeseeable (or if foreseeable, reasonably unavoidable), event beyond the reasonablecontrol of any party which prevents the performance of this Agreement, including without limitation acts of government, acts of nature,fire, explosion, typhoon, flood, earthquake, tide, lightning and war, but excluding any shortage of credit. Exclusive Technical Consulting and Services Agreement - 5 - 7.2Exemption. Where either party fails to perform this Agreement in full or in part due to Force Majeure, such party shall be exempted fromits responsibilities hereunder, to the extent of the Force Majeure in question and except where PRC law provides otherwise. For theavoidance of doubt, a party shall not be excused from performing its obligations hereunder where Force Majeure occurs following thedelay by that party to perform this Agreement. 7.3Notice. Should either party be unable to perform this Agreement as a result of Force Majeure, it shall inform the other party, as soon aspossible following the occurrence of such Force Majeure, of the situation and the reason(s) for non-performance, so as to minimize anylosses incurred by the other party as a consequence thereof. Furthermore, within a reasonable time after notice of Force Majeure has beengiven, the party encountering Force Majeure shall provide to the other party a legal certificate issued by a public notary (or otherappropriate organization) of the place wherein the Force Majeure occurred, in witness of the same. 7.4Mitigation. The party affected by Force Majeure may suspend the performance of its obligations under this Agreement until anydisruption resulting from the Force Majeure has been resolved. However, such party shall make every effort to eliminate any obstaclesresulting from the Force Majeure, thereby minimizing to the greatest extent possible the adverse effects of such, as well as any resultinglosses. 8.EFFECTIVE DATE AND TERM 8.1Term. This Agreement shall enter into effect as of the date first indicated above and shall continue for a period of 30 years unless it isextended according to Article 8.2 or terminated early according to Article 9. 8.2Extension. This Agreement shall be automatically extended for another ten (10) years except Party B gives its written notice terminatingthis Agreement three (3) months before the expiration of this Agreement. Exclusive Technical Consulting and Services Agreement - 6 -9.TERMINATION 9.1Early Termination. This Agreement may be terminated early in the following situations: 9.1.1with the mutual written consent of the parties following consultation; 9.1.2in case of a Force Majeure event prevailing for 30 days or longer, the Parties shall discuss whether performance under thisAgreement shall be partially exempted or postponed according to the degree by which such performance is affected by theForce Majeure event; or 9.1.3by Party B, with 30 days’ prior written notice to Party A at any time. 9.2Survival of Obligations. The expiry or early termination of this Agreement for any reason whatsoever shall not affect the paymentobligations of the parties hereunder, the respective liability of the parties for damages or the confidentiality obligations of the parties. 10.MISCELLANEOUS 10.1Notices and Delivery. All notices and communications between the parties shall be written in English and delivered in person (includingcourier service), by facsimile transmission or by registered mail to the appropriate addresses set forth below: Party AAddress : Room 1117, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing, ChinaTel : 86-10-59857387Fax : 86-10-59857001Attn : Qin ZhiParty BAddress : Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857001Fax : 86-10-59857400Attn : Qin Zhi 10.2Timing. The time of receipt of the notice or communication shall be deemed to be: 10.2.1if in person (including courier), at the time of signing of a receipt by the receiving party or a duly authorized person at thereceiving party’s address; Exclusive Technical Consulting and Services Agreement - 7 - 10.2.2if by facsimile transmission, at the time displayed in the corresponding transmission record, unless such facsimile is sent after5:00 p.m. or on a non-business day in the place of receipt, in which case the date of receipt shall be deemed to be the followingbusiness day; or 10.2.3if by registered mail, on the 10th day after the date of the receipt of the registered mail. 10.3No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of either party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shallany single or partial exercise of any right, authority or privilege preclude any other future exercise thereof. 10.4Severability. The provisions of this Agreement are severable from each other. The invalidity of any provision of this Agreement shall notaffect the validity or enforceability of any other provision of this Agreement. 10.5Successors. This Agreement shall be valid and binding upon the parties and upon their respective successors and assigns (if any). 10.6Assignment. Party A shall not assign its rights or obligations under this Agreement to any third party without the prior written consent ofParty B. Party B may transfer its rights or obligations under this Agreement to any third party without the consent of Party A, but shallinform Party A of the above assignment. 10.7Governing Law. The execution, validity, interpretation and implementation of this Agreement and the settlement of disputes hereundershall be governed by PRC law. 10.8Arbitration. 10.8.1If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolve such disputethrough friendly consultation or mediation. 10.8.2If the dispute cannot be resolved in the above manner within 30 days after the commencement of the consultation or mediation,either party may submit the dispute to arbitration as follows: 10.8.2.1all disputes arising out of or in connection with this Agreement shall be submitted to the China InternationalEconomic and Trade Arbitration Commission for arbitration in accordance with the Commission’s then-currentrules; and 10.8.2.2the arbitration shall be held in Beijing and conducted in the English language, with the arbitral award being finaland binding upon the parties. 10.8.3When any dispute is submitted to arbitration, the parties shall continue to perform their obligations under this Agreement. Exclusive Technical Consulting and Services Agreement - 8 - 10.9Entire Agreement. This Agreement and its Exhibits shall constitute the entire agreement between the parties in respect of the subjectmatter hereof and shall supersede any previous discussions, negotiations and agreements, including without limitation, the OriginalAgreement. 10.10Amendments. Without the prior written consent of Party B, Party A shall not amend this Agreement. If required by law, the parties shallobtain all requisite approvals from the relevant authorities to give effect to the amendment. 10.11Language and Copies.This Agreement is prepared in both English and Chinese, and both language versions have the same legal effect. This Agreement shall beexecuted in 2 originals, with 1 original copy for each party.[The space below is intentionally left blank.] Exclusive Technical Consulting and Services Agreement - 9 -IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their duly authorized representatives on the date first indicatedabove.Party A: Beijing Chezhiying Technologies Co., Ltd./s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technologies Co., Ltd.Party B: Beijing Shengtuo Hongyuan Information Technology Co., Ltd./s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Exclusive Technical Consulting and Services Agreement Exhibit IScope of Services 1.Technical Services. Party B will provide technical services and training to Party A, taking advantage of Party B’s advanced network, website andmultimedia technologies to improve Party A’s system integration. Such technical services shall include: (a)administering, managing and maintaining Party A’s information application system and website system infrastructure; (b)providing system optimization plans and implementing optimization features; (c)assuring the security and reliability of the website application systems; (d)procuring, installing and supporting the relevant products produced by Party B, and providing training in the use of those products; (e)managing and maintaining all network and providing technologies to assure the reliability and efficiency thereof; (f)providing information technology services and assuring the reliable operation of the information infrastructure. 2.Marketing and Management Consulting. For the purposes of expanding Party A’s market share, popularizing its products and creating an efficientinternal operations, Party B will provide consulting services regarding marketing and management, which shall include: (a)providing strategic co-operation proposals and recommending relevant partners to Party A, and assisting Party A to establish anddevelop cooperative relationships with such partners with respect to advertising; (b)providing Party A with market development strategies, including but not limited to the design and improvement of Party A’s products,services and business model as well as strategic on its market position and brand-building; and (c)training management personnel and providing management consultation services, including but not limited to regular business trainingfor Party A’s management personnel and formulating realistic and effective solutions to existing problems in Party A’s businessoperations. Exclusive Technical Consulting and Services Agreement Exhibit IICalculation and Payment of the Service FeeDURING THE TERM OF THIS AGREEMENT, THE SERVICE FEE PAYABLE BY PARTY A TO PARTY B FOR SERVICES RENDERED ACCORDING TO EXHIBIT ISHALL BE A FEE IN RMB DETERMINED BY THE FOLLOWING FORMULA:SERVICE FEE PAYABLE = PARTY A’S REVENUE – TURNOVER TAXES – PARTY A’S TOTAL COSTS – PROFIT TO BE RETAINED BY PARTY A;Where: • Party A’s Revenue is revenue received by Party A from third parties in the course of its ordinary business; • Turnover Taxes include, but are not limited to, business tax (if applicable), value-added tax, urban maintenance and construction tax and educationsurcharges; • Party A’s Total Costs include all costs and expenses, such as costs of goods sold and operating costs incurred by Party A for carrying out the business;and • Profit to be retained by Party A shall be determined by a reputable certified public accountant designated by Party B.During the term of this Agreement, Party B shall have the right to adjust the above Fees at its sole discretion without the consent of Party A. Exclusive Technical Consulting and Services Agreement Exhibit 4.62 Exclusive Technical Consulting andServices Agreement betweenAutohome Used Car Appraisal Co., Ltd.andBeijing Chezhiying Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS ARTICLE PAGE 1. APPOINTMENT AND PROVISION OF SERVICES 3 2. INTELLECTUAL PROPERTY RIGHTS 4 3. SERVICE FEE AND PAYMENT 4 4. REPRESENTATIONS AND WARRANTIES 4 5. CONFIDENTIALITY 5 6. BREACH 5 7. FORCE MAJEURE 5 8. EFFECTIVE DATE AND TERM 6 9. TERMINATION 7 10. MISCELLANEOUS 7 EXHIBIT: I. SCOPE OF SERVICES II. CALCULATION AND PAYMENT OF THE SERVICE FEE Exclusive Technical Consulting and Services Agreement - 2 -THIS EXCLUSIVE TECHNICAL CONSULTING AND SERVICES AGREEMENT (Agreement) is entered into on July 8, 2015 (Execution Date) inBeijing, the People’s Republic of China (PRC).between (1)Autohome Used Car Appraisal Co., Ltd. , with its registered address at Room 201, No. 35 Road West,Guchengxi Street, Shijingshan District, Beijing 100043, China (Party A);and (2)Beijing Chezhiying Technology Co., Ltd. , with its registered address at Room 1117, F/11, Tower B, No. 3, DanlingStreet, Haidian District, Beijing 100080, China (Party B).Recitals A.Party A is a domestic company duly incorporated and validly existing under the laws of the PRC, and engages in the business of used car appraisal,Party A wishes to develop its technology, improve its management and increase and enhance its market position. B.Party B is a wholly foreign owned enterprise duly incorporated and validly existing under the laws of the PRC, which holds the resources andqualifications for technical and consulting services. Party B is engaged in research and development relating to networks and has expertise inproviding technical training and consulting services.NOW, THEREFORE, the parties agree as follows: 1.APPOINTMENT AND PROVISION OF SERVICES 1.1Scope of Services. Party A hereby appoints Party B to provide Party A with the Services detailed in the Exhibit I (Services). 1.2Provision of Services. The Parties agree that Party B shall provide the Services to Party A on an exclusive basis, for the duration of theterm of this Agreement and at standards commonly accepted in the market. 1.3Financial Support. To ensure that the cash flow requirements of Party A’s ordinary operations are met and/or to set off any loss accruedduring such operations, Party B is obligated, only to the extent permissible under PRC law, to provide financing support for Party A,whether or not Party A actually incurs any such operational loss. Party B’s financing support for Party A may take the form of bankentrusted loans. Contracts for any such entrusted loans shall be executed separately. Party B will not request repayment if Party A isunable to do so. Exclusive Technical Consulting and Services Agreement - 3 -2.INTELLECTUAL PROPERTY RIGHTSThe Parties agree that the intellectual property rights created by Party B in the course of performing this Agreement (including without limitationany copyrights, trademarks or logos registered or not, patents and proprietary technology), shall belong to Party B. 3.SERVICE FEE AND PAYMENT 3.1Service Fee. The Parties agree that the Service Fee under this Agreement shall be determined according to the Exhibit II. 3.2Payment Method. Party B shall, within the first 5 days of each month, provide Party A with written statement of the service fee spentproviding the Services during the previous month. Party A shall confirm to Party B in writing within 3 business days of receipt that theservice see is correct. If Party A fails to provide such confirmation on time, Party A shall be deemed to have confirmed Party B’sstatement. Party A shall pay the service fee to Party B’s designated account within 10 days after confirming the service fee provided inParty B’s statement. 4.REPRESENTATIONS AND WARRANTIESEach party represents and warrants to the other that, as of the date of signing hereof: 4.1it has full power and authority as an independent legal person to execute and deliver this Agreement and to carry out its responsibilitiesand obligations hereunder; 4.2its execution and performance of this Agreement will not result in a breach of any law, regulation, authorization or agreement to which itis subject. Exclusive Technical Consulting and Services Agreement - 4 -5.CONFIDENTIALITY 5.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all information relating to or arisen from thisAgreement, or made available under this Agreement to a party or any associate thereof (Confidential Information). Without the priorwritten consent of the other party, no party shall disclose any Confidential Information to any third party unless the disclosure is requiredby law or by enforceable orders of the court or related government departments. Under such circumstances, the party required to disclosethe Confidential Information shall notify the other party immediately, take all possible measures to minimize the disclosure, and notifythe persons to whom information is being disclosed of the confidentiality obligation. Notwithstanding anything to the contrary above,Party A shall have the full right to disclose any Confidential Information to its shareholders, affiliates or professional advisors. 5.2Obligations upon Termination. Upon termination of this Agreement, either party shall, at the request of the other party, return anydocument, material, database, equipment, or software containing the Confidential Information to the other party. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, either party shall destroy all the Confidential Informationbelonging to the other party and delete such Confidential Information from any memory devices. No party shall be permitted to continueusing the Confidential Information in any way after the termination of this Agreement. 5.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive thetermination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. 6.BREACH 6.1Written Notice. If a party breaches any of its respective representations, warranties or obligations under this Agreement, the non-breaching party may send a written notice to the breaching party demanding rectification within 10 days. 6.2Compensation. The breaching party shall be liable to compensate the non-breaching party for any losses it has sustained as a result ofthe breach, including loss of profits. 7.FORCE MAJEURE 7.1Definition. The term Force Majeure refers to any unforeseeable (or if foreseeable, reasonably unavoidable), event beyond the reasonablecontrol of any party which prevents the performance of this Agreement, including without limitation acts of government, acts of nature,fire, explosion, typhoon, flood, earthquake, tide, lightning and war, but excluding any shortage of credit. Exclusive Technical Consulting and Services Agreement - 5 - 7.2Exemption. Where either party fails to perform this Agreement in full or in part due to Force Majeure, such party shall be exempted fromits responsibilities hereunder, to the extent of the Force Majeure in question and except where PRC law provides otherwise. For theavoidance of doubt, a party shall not be excused from performing its obligations hereunder where Force Majeure occurs following thedelay by that party to perform this Agreement. 7.3Notice. Should either party be unable to perform this Agreement as a result of Force Majeure, it shall inform the other party, as soon aspossible following the occurrence of such Force Majeure, of the situation and the reason(s) for non-performance, so as to minimize anylosses incurred by the other party as a consequence thereof. Furthermore, within a reasonable time after notice of Force Majeure has beengiven, the party encountering Force Majeure shall provide to the other party a legal certificate issued by a public notary (or otherappropriate organization) of the place wherein the Force Majeure occurred, in witness of the same. 7.4Mitigation. The party affected by Force Majeure may suspend the performance of its obligations under this Agreement until anydisruption resulting from the Force Majeure has been resolved. However, such party shall make every effort to eliminate any obstaclesresulting from the Force Majeure, thereby minimizing to the greatest extent possible the adverse effects of such, as well as any resultinglosses. 8.EFFECTIVE DATE AND TERM 8.1Term. This Agreement shall enter into effect as of the date first indicated above and shall continue for a period of 30 years unless it isextended according to Article 8.2 or terminated early according to Article 9. 8.2Extension. This Agreement shall be automatically extended for another ten (10) years except Party B gives its written notice terminatingthis Agreement three (3) months before the expiration of this Agreement. Exclusive Technical Consulting and Services Agreement - 6 -9.TERMINATION 9.1Early Termination. This Agreement may be terminated early in the following situations: 9.1.1with the mutual written consent of the parties following consultation; 9.1.2in case of a Force Majeure event prevailing for 30 days or longer, the Parties shall discuss whether performance under thisAgreement shall be partially exempted or postponed according to the degree by which such performance is affected by theForce Majeure event; or 9.1.3by Party B, with 30 days’ prior written notice to Party A at any time. 9.2Survival of Obligations. The expiry or early termination of this Agreement for any reason whatsoever shall not affect the paymentobligations of the parties hereunder, the respective liability of the parties for damages or the confidentiality obligations of the parties. 10.MISCELLANEOUS 10.1Notices and Delivery. All notices and communications between the parties shall be written in English and delivered in person (includingcourier service), by facsimile transmission or by registered mail to the appropriate addresses set forth below: Party AAddress : Room 201, No. 35 Road West, Guchengxi Street, Shijingshan District, Beijing 100043, ChinaTel : 86-10-59857001Fax : 86-10-59857387Attn : Qin ZhiParty BAddress : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857001Fax : 86-10-59857387Attn : Qin Zhi 10.2Timing. The time of receipt of the notice or communication shall be deemed to be: 10.2.1if in person (including courier), at the time of signing of a receipt by the receiving party or a duly authorized person at thereceiving party’s address; Exclusive Technical Consulting and Services Agreement - 7 - 10.2.2if by facsimile transmission, at the time displayed in the corresponding transmission record, unless such facsimile is sent after5:00 p.m. or on a non-business day in the place of receipt, in which case the date of receipt shall be deemed to be the followingbusiness day; or 10.2.3if by registered mail, on the 10th day after the date of the receipt of the registered mail. 10.3No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of either party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shallany single or partial exercise of any right, authority or privilege preclude any other future exercise thereof. 10.4Severability. The provisions of this Agreement are severable from each other. The invalidity of any provision of this Agreement shall notaffect the validity or enforceability of any other provision of this Agreement. 10.5Successors. This Agreement shall be valid and binding upon the parties and upon their respective successors and assigns (if any). 10.6Assignment. Party A shall not assign its rights or obligations under this Agreement to any third party without the prior written consent ofParty B. Party B may transfer its rights or obligations under this Agreement to any third party without the consent of Party A, but shallinform Party A of the above assignment. 10.7Governing Law. The execution, validity, interpretation and implementation of this Agreement and the settlement of disputes hereundershall be governed by PRC law. 10.8Arbitration. 10.8.1If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolve such disputethrough friendly consultation or mediation. Exclusive Technical Consulting and Services Agreement - 8 - 10.8.2If the dispute cannot be resolved in the above manner within 30 days after the commencement of the consultation or mediation,either party may submit the dispute to arbitration as follows: 10.8.2.1all disputes arising out of or in connection with this Agreement shall be submitted to the China InternationalEconomic and Trade Arbitration Commission for arbitration in accordance with the Commission’s then-currentrules; and 10.8.2.2the arbitration shall be held in Beijing and conducted in the English language, with the arbitral award being finaland binding upon the parties. 10.8.3When any dispute is submitted to arbitration, the parties shall continue to perform their obligations under this Agreement. 10.9Entire Agreement. This Agreement and its Exhibits shall constitute the entire agreement between the parties in respect of the subjectmatter hereof and shall supersede any previous discussions, negotiations and agreements. 10.10Amendments. Without the prior written consent of Party B, Party A shall not amend this Agreement. If required by law, the parties shallobtain all requisite approvals from the relevant authorities to give effect to the amendment. 10.11Language and Copies.This Agreement is prepared in both English and Chinese, and both language versions have the same legal effect. This Agreement shall beexecuted in 2 originals, with 1 original copy for each party.[The space below is intentionally left blank.] Exclusive Technical Consulting and Services Agreement - 9 -IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their duly authorized representatives on the date first indicatedabove. Party A: Autohome Used Car Appraisal Co., Ltd./s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Autohome Used Car Appraisal Co., Ltd. Party B: Beijing Chezhiying Technology Co., Ltd./s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Chezhiying Technology Co., Ltd. Exclusive Technical Consulting and Services Agreement Exhibit IScope of Services 1.Technical Services. Party B will provide technical services and training to Party A, taking advantage of Party B’s advanced network, website andmultimedia technologies to improve Party A’s system integration. Such technical services shall include: (a)administering, managing and maintaining Party A’s information application system and website system infrastructure; (b)providing system optimization plans and implementing optimization features; (c)assuring the security and reliability of the website application systems; (d)procuring, installing and supporting the relevant products produced by Party B, and providing training in the use of those products; (e)managing and maintaining all network and providing technologies to assure the reliability and efficiency thereof; (f)providing information technology services and assuring the reliable operation of the information infrastructure. 2.Marketing and Management Consulting. For the purposes of expanding Party A’s market share, popularizing its products and creating a efficientinternal operations, Party B will provide consulting services regarding marketing and management, which shall include: (a)providing strategic co-operation proposals and recommending relevant partners to Party A, and assisting Party A to establish anddevelop cooperative relationships with such partners with respect to information networks; (b)providing Party A with market development strategies, including but not limited to the design and improvement of Party A’s products,services and business model as well as strategic on its market position and brand-building; and (c)training management personnel and providing management consultation services, including but not limited to regular business trainingfor Party A’s management personnel and formulating realistic and effective solutions to existing problems in Party A’s businessoperations. Exclusive Technical Consulting and Services Agreement Exhibit IICalculation and Payment of the Service FeeDURING THE TERM OF THIS AGREEMENT, THE SERVICE FEE PAYABLE BY PARTY A TO PARTY B FOR SERVICES RENDERED ACCORDING TO EXHIBIT ISHALL BE A FEE IN RMB DETERMINED BY THE FOLLOWING FORMULA:SERVICE FEE PAYABLE = PARTY A’S REVENUE – TURNOVER TAXES – PARTY A’S TOTAL COSTS – PROFIT TO BE RETAINED BY PARTY A;Where: • Party A’s Revenue is revenue received by Party A from third parties in the course of its ordinary business; • Turnover Taxes include, but are not limited to, business tax, value-added tax, urban maintenance and construction tax and education surcharges; • Party A’s Total Costs include all costs and expenses, such as costs of goods sold and operating costs incurred by Party A for carrying out the business,including without limitation any fees to be paid to advertising agency; and • Profit to be retained by Party A shall be determined by a reputable certified public accountant designated by Party B.During the term of this Agreement, Party B shall have the right to adjust the above Fees at its sole discretion without the consent of Party A. Exclusive Technical Consulting and Services Agreement Exhibit 4.63 Exclusive Technical Consulting andServices Agreement betweenBeijing Autohome Used Car Brokerage Co., LtdandBeijing Chezhiying Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS ARTICLE PAGE 1. APPOINTMENT AND PROVISION OF SERVICES 3 2. INTELLECTUAL PROPERTY RIGHTS 4 3. SERVICE FEE AND PAYMENT 4 4. REPRESENTATIONS AND WARRANTIES 4 5. CONFIDENTIALITY 4 6. BREACH 5 7. FORCE MAJEURE 5 8. EFFECTIVE DATE AND TERM 6 9. TERMINATION 6 10. MISCELLANEOUS 7 EXHIBIT: I. SCOPE OF SERVICES II. CALCULATION AND PAYMENT OF THE SERVICE FEE Exclusive Technical Consulting and Services Agreement - 2 -THIS EXCLUSIVE TECHNICAL CONSULTING AND SERVICES AGREEMENT (Agreement) is entered into on July 8, 2016 (Execution Date) inBeijing, the People’s Republic of China (PRC).between (1)Beijing Autohome Used Car Brokerage Co., Ltd , a company duly organized and existing under the PRC laws withits legal address at No.101 Oudebao Vehicles Trading Market, Huilongguan, Changping District, Beijing, China (Party A);and (2)Beijing Chezhiying Technology Co., Ltd. , a company duly organized and existing under the PRC laws with its legaladdress at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China. (Party B).Recitals A.Party A is a domestic company duly incorporated and validly existing under the laws of the PRC, which engages in the business of used vehiclesbrokerages. Party A wishes to develop its technology, to improve its management and increase and enhance its market position. B.Party B is a wholly foreign owned enterprise duly incorporated and validly existing under the laws of the PRC, which holds the resources andqualifications for technical and consulting services. Party B is engaged in research and development relating to networks and has expertise inproviding technical training and consulting services.NOW, THEREFORE, the parties agree as follows: 1.APPOINTMENT AND PROVISION OF SERVICES 1.1Scope of Services. Party A hereby appoints Party B to provide Party A with the Services detailed in the Exhibit I (Services). 1.2Provision of Services. The Parties agree that Party B shall provide the Services to Party A on an exclusive basis, for the duration of the term ofthis Agreement and at standards commonly accepted in the market. 1.3Financial Support. To ensure that the cash flow requirements of Party A’s ordinary operations are met and/or to set off any loss accruedduring such operations, Party B is obligated, only to the extent permissible under PRC law, to provide financing support for Party A, whetheror not Party A actually incurs any such operational loss. Party B’s financing support for Party A may take the form of bank entrusted loans orborrowings. Contracts for any such entrusted loans or borrowings shall be executed separately. Party B will not request repayment if Party A isunable to do so. Exclusive Technical Consulting and Services Agreement - 3 -2.INTELLECTUAL PROPERTY RIGHTSThe Parties agree that the intellectual property rights created by Party B in the course of performing this Agreement (including without limitation anycopyrights, trademarks or logos registered or not, patents and proprietary technology), shall belong to Party B. 3.SERVICE FEE AND PAYMENT 3.1Service Fee. The Parties agree that the Service Fee under this Agreement shall be determined according to the Exhibit II. 3.2Payment Method. Party B shall, within the first 5 days of each month, provide Party A with written statement of the service fee spentproviding the Services during the previous month. Party A shall confirm to Party B in writing within 3 business days of receipt that the servicesee is correct. If Party A fails to provide such confirmation on time, Party A shall be deemed to have confirmed Party B’s statement. Party Ashall pay the service fee to Party B’s designated account within 10 days after confirming the service fee provided in Party B’s statement. 4.REPRESENTATIONS AND WARRANTIESEach party represents and warrants to the other that, as of the date of signing hereof: 4.1it has full power and authority as an independent legal person to execute and deliver this Agreement and to carry out its responsibilities andobligations hereunder; 4.2its execution and performance of this Agreement will not result in a breach of any law, regulation, authorization or agreement to which it issubject. 5.CONFIDENTIALITY 5.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all information relating to or arisen from thisAgreement, or made available under this Agreement to a party or any associate thereof (Confidential Information). Without the prior writtenconsent of the other party, no party shall disclose any Confidential Information to any third party unless the disclosure is required by law orby enforceable orders of the court or related government departments. Under such circumstances, the party required to disclose theConfidential Information shall notify the other party immediately, take all possible measures to minimize the disclosure, and notify thepersons to whom information is being disclosed of the confidentiality obligation. Notwithstanding anything to the contrary above, Party Ashall have the full right to disclose any Confidential Information to its shareholders, affiliates or professional advisors. Exclusive Technical Consulting and Services Agreement - 4 - 5.2Obligations upon Termination. Upon termination of this Agreement, either party shall, at the request of the other party, return any document,material, database, equipment, or software containing the Confidential Information to the other party. If, for any reason, such document,material, database, equipment, or software cannot be returned, either party shall destroy all the Confidential Information belonging to theother party and delete such Confidential Information from any memory devices. No party shall be permitted to continue using theConfidential Information in any way after the termination of this Agreement. 5.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive thetermination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. 6.BREACH 6.1Written Notice. If a party breaches any of its respective representations, warranties or obligations under this Agreement, the non-breachingparty may send a written notice to the breaching party demanding rectification within 10 days. 6.2Compensation. The breaching party shall be liable to compensate the non-breaching party for any losses it has sustained as a result of thebreach, including loss of profits. 7.FORCE MAJEURE 7.1Definition. The term Force Majeure refers to any unforeseeable (or if foreseeable, reasonably unavoidable), event beyond the reasonablecontrol of any party which prevents the performance of this Agreement, including without limitation acts of government, acts of nature, fire,explosion, typhoon, flood, earthquake, tide, lightning and war, but excluding any shortage of credit. Exclusive Technical Consulting and Services Agreement - 5 - 7.2Exemption. Where either party fails to perform this Agreement in full or in part due to Force Majeure, such party shall be exempted from itsresponsibilities hereunder, to the extent of the Force Majeure in question and except where PRC law provides otherwise. For the avoidance ofdoubt, a party shall not be excused from performing its obligations hereunder where Force Majeure occurs following the delay by that party toperform this Agreement. 7.3Notice. Should either party be unable to perform this Agreement as a result of Force Majeure, it shall inform the other party, as soon aspossible following the occurrence of such Force Majeure, of the situation and the reason(s) for non-performance, so as to minimize any lossesincurred by the other party as a consequence thereof. Furthermore, within a reasonable time after notice of Force Majeure has been given, theparty encountering Force Majeure shall provide to the other party a legal certificate issued by a public notary (or other appropriateorganization) of the place wherein the Force Majeure occurred, in witness of the same. 7.4Mitigation. The party affected by Force Majeure may suspend the performance of its obligations under this Agreement until any disruptionresulting from the Force Majeure has been resolved. However, such party shall make every effort to eliminate any obstacles resulting from theForce Majeure, thereby minimizing to the greatest extent possible the adverse effects of such, as well as any resulting losses. 8.EFFECTIVE DATE AND TERM 8.1Term. This Agreement shall enter into effect as of the date first indicated above and shall continue for a period of 30 years unless it isextended according to Article 8.2 or terminated early according to Article 9. 8.2Extension. This Agreement shall be automatically extended for another ten (10) years except Party B gives its written notice terminating thisAgreement three (3) months before the expiration of this Agreement. 9.TERMINATION 9.1Early Termination. This Agreement may be terminated early in the following situations: 9.1.1with the mutual written consent of the parties following consultation; Exclusive Technical Consulting and Services Agreement - 6 - 9.1.2in case of a Force Majeure event prevailing for 30 days or longer, the Parties shall discuss whether performanceunder this Agreement shall be partially exempted or postponed according to the degree by which such performanceis affected by the Force Majeure event; or 9.1.3by Party B, with 30 days’ prior written notice to Party A at any time. 9.2Survival of Obligations. The expiry or early termination of this Agreement for any reason whatsoever shall not affect the paymentobligations of the parties hereunder, the respective liability of the parties for damages or the confidentiality obligations of the parties. 10.MISCELLANEOUS 10.1Notices and Delivery. All notices and communications between the parties shall be written in English and delivered in person (includingcourier service), by facsimile transmission or by registered mail to the appropriate addresses set forth below: Party AAddress : No. 101 Oudebao Vehicles Trading Market, Huilongguan, Changping District, Beijing, ChinaTel : 86-10-59857001Fax : 86-10-59857400Attn : Qin ZhiParty BAddress : Room 1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing, ChinaTel : 86-10-59857387Fax : 86-10-59857001Attn : Qin Zhi 10.2Timing. The time of receipt of the notice or communication shall be deemed to be: 10.2.1if in person (including courier), at the time of signing of a receipt by the receiving party or a duly authorized person at thereceiving party’s address; Exclusive Technical Consulting and Services Agreement - 7 - 10.2.2if by facsimile transmission, at the time displayed in the corresponding transmission record, unless such facsimile is sent after 5:00p.m. or on a non-business day in the place of receipt, in which case the date of receipt shall be deemed to be the following businessday; or 10.2.3if by registered mail, on the 10th day after the date of the receipt of the registered mail. 10.3No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of either party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shall anysingle or partial exercise of any right, authority or privilege preclude any other future exercise thereof. 10.4Severability. The provisions of this Agreement are severable from each other. The invalidity of any provision of this Agreement shall notaffect the validity or enforceability of any other provision of this Agreement. 10.5Successors. This Agreement shall be valid and binding upon the parties and upon their respective successors and assigns (if any). 10.6Assignment. Party A shall not assign its rights or obligations under this Agreement to any third party without the prior written consent ofParty B. Party B may transfer its rights or obligations under this Agreement to any third party without the consent of Party A, but shall informParty A of the above assignment. 10.7Governing Law. The execution, validity, interpretation and implementation of this Agreement and the settlement of disputes hereunder shallbe governed by PRC law. 10.8Arbitration. 10.8.1If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolve such disputethrough friendly consultation or mediation. 10.8.2If the dispute cannot be resolved in the above manner within 30 days after the commencement of the consultation or mediation,either party may submit the dispute to arbitration as follows: 10.8.2.1all disputes arising out of or in connection with this Agreement shall be submitted to the China InternationalEconomic and Trade Arbitration Commission for arbitration in accordance with the Commission’s then-currentrules; and 10.8.2.2the arbitration shall be held in Beijing and conducted in the English language, with the arbitral award being finaland binding upon the parties. Exclusive Technical Consulting and Services Agreement - 8 - 10.8.3When any dispute is submitted to arbitration, the parties shall continue to perform their obligations under this Agreement. 10.9Entire Agreement. This Agreement and its Exhibits shall constitute the entire agreement between the parties in respect of the subject matterhereof and shall supersede any previous discussions, negotiations and agreements, including without limitation, the Original Agreement. 10.10Amendments. Without the prior written consent of Party B, Party A shall not amend this Agreement. If required by law, the parties shall obtainall requisite approvals from the relevant authorities to give effect to the amendment. 10.11Language and Copies.This Agreement is prepared in both English and Chinese, and both language versions have the same legal effect. This Agreement shall beexecuted in 2 originals, with 1 original copy for each party.[The space below is intentionally left blank.] Exclusive Technical Consulting and Services Agreement - 9 -IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their duly authorized representatives on the date first indicatedabove. Party A:Beijing Autohome Used Car Brokerage Co., Ltd/s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Autohome Used Car Brokerage Co., LtdParty B:Beijing Chezhiying Technology Co., Ltd./s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Chezhiying Technology Co., Ltd. Exclusive Technical Consulting and Services Agreement Exhibit IScope of Services 1.Technical Services. Party B will provide technical services and training to Party A, taking advantage of Party B’s advanced network, website andmultimedia technologies to improve Party A’s system integration. Such technical services shall include: (a)administering, managing and maintaining Party A’s information application system and website system infrastructure; (b)providing system optimization plans and implementing optimization features; (c)assuring the security and reliability of the website application systems; (d)procuring, installing and supporting the relevant products produced by Party B, and providing training in the use of those products; (e)managing and maintaining all network and providing technologies to assure the reliability and efficiency thereof; (f)providing information technology services and assuring the reliable operation of the information infrastructure. 2.Marketing and Management Consulting. For the purposes of expanding Party A’s market share, popularizing its products and creating an efficientinternal operations, Party B will provide consulting services regarding marketing and management, which shall include: (a)providing strategic co-operation proposals and recommending relevant partners to Party A, and assisting Party A to establish and developcooperative relationships with such partners with respect to advertising; (b)providing Party A with market development strategies, including but not limited to the design and improvement of Party A’s products, servicesand business model as well as strategic on its market position and brand-building; and (c)training management personnel and providing management consultation services, including but not limited to regular business training for PartyA’s management personnel and formulating realistic and effective solutions to existing problems in Party A’s business operations. Exclusive Technical Consulting and Services Agreement Exhibit IICalculation and Payment of the Service FeeDURING THE TERM OF THIS AGREEMENT, THE SERVICE FEE PAYABLE BY PARTY A TO PARTY B FOR SERVICES RENDERED ACCORDING TO EXHIBIT ISHALL BE A FEE IN RMB DETERMINED BY THE FOLLOWING FORMULA:SERVICE FEE PAYABLE = PARTY A’S REVENUE – TURNOVER TAXES – PARTY A’S TOTAL COSTS – PROFIT TO BE RETAINED BY PARTY A;Where: • Party A’s Revenue is revenue received by Party A from third parties in the course of its ordinary business; • Turnover Taxes include, but are not limited to, business tax (if applicable), value-added tax, urban maintenance and construction tax and educationsurcharges; • Party A’s Total Costs include all costs and expenses, such as costs of goods sold and operating costs incurred by Party A for carrying out the business;and • Profit to be retained by Party A shall be determined by a reputable certified public accountant designated by Party B.During the term of this Agreement, Party B shall have the right to adjust the above Fees at its sole discretion without the consent of Party A. Exclusive Technical Consulting and Services Agreement Exhibit 4.64 Equity Interest Pledge Agreement BetweenBeijing Chezhiying Technology Co., Ltd.andBeijing Shengtuo Hongyuan Information Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS ARTICLES PAGES 1. DEFINITIONS 4 2. PLEDGE 5 3. EFFECTIVENESS OF PLEDGE, SCOPE AND TERM 6 4. REPRESENTATIONS AND WARRANTIES OF THE PLEDGOR 7 5. COVENANTS OF THE PLEDGOR 7 6. EVENTS OF DEFAULT 8 7. EXERCISE OF THE RIGHTS OF THE PLEDGE 10 8. TRANSFER OR ASSIGNMENT 10 9. TERMINATION 11 10. FORCE MAJEURE 11 11. APPLICABLE LAW AND DISPUTE RESOLUTION 11 12. NOTICE 12 13. APPENDICES 12 14. WAIVER 13 15. MISCELLANEOUS 13 Equity Interest Pledge Agreement - 2 - This Equity Interest Pledge Agreement (this “Agreement”) is entered in Beijing, the People’s Republic of China (“PRC”, excluding the Hong Kong SpecialAdministrative Region, the Macao Special Administrative Region and Taiwan, for the purposes of this Agreement) and dated July 8, 2015 by and betweenthe following parties: (1)PLEDGEE: Beijing Chezhiying Technology Co., Ltd. , a wholly foreign owned enterprise duly incorporated andvalidly existing under the laws of the PRC, with its registered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing100080, China.and (2)PLEDGOR: Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized andexisting under the PRC laws with its legal address at Room 1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China.(individually a “Party” and collectively the “Parties”)WHEREAS: A.Pledgor is a PRC domestic company, and holds100 % of the equity interest of Autohome Used Car Appraisal Co., Ltd.( ) (“Autohome Used Car Appraisal”). B.Autohome Used Car Appraisal is a limited liability company registered in Beijing, which engages in the business of used car appraisal services. C.The Pledgee, a wholly foreign-owned company registered in Beijing, PRC, and has been licensed by the relevant PRC government authority tocarry on the business of technology-related research and development, website design, transfer of technology, technology training and consulting,and the sale of its own products. The Pledgee and Autohome Used Car Appraisal entered into an Exclusive Technical and Consulting ServicesAgreement on July 8, 2015, pursuant to which Autohome Used Car Appraisal is required to pay service fees (the “Service Fees”) to the Pledgee inconsideration for the corresponding services to be provided by the Pledgee (the “Services Agreement”). D.Simultaneous with the execution of this Agreement, the Pledgor has also entered into an Equity Option Agreement with the Pledgee, pursuant towhich the Pledgor grants to the Pledgee an exclusive right to purchase the Equity Interest (as defined below) at any time upon satisfaction ofvarious requirements under PRC law (the “Option Agreement”). Equity Interest Pledge Agreement -3- E.In order to ensure that (i) the Pledgee collects Service Fees under the ServicesAgreement from Autohome Used Car Appraisal, (ii) the Pledgor’ other obligations under the Option Agreement are fulfilled, and (iii) all other debts,monetary liabilities or other payment obligations owed to the Pledgee by the Pledgor and/or Autohome Used Car Appraisal, arising under or inrelation to the Services Agreement including, but not limited to, any obligation to pay damages for a breach of any obligation of the Pledgor orAutohome Used Car Appraisal under the Services Agreement (as applicable), are paid, the Pledgor is willing to pledge all the Equity Interest (asdefined below,) i.e. the 100% equity interest of Autohome Used Car Appraisal, equivalent to a contribution of RMB 2,000,000, to the Pledgee assecurity for the above-mentioned obligations of the Pledgor and Autohome Used Car Appraisal (collectively, the “Secured Obligations”).In order to set forth each Party’s rights and obligations, the Pledgee and the Pledgor through mutual negotiations hereby enter into this Agreement basedupon the following terms: 1.DefinitionsUnless otherwise provided in this Agreement, the following terms shall have the following meanings: 1.1“Pledge” means the full content of Section 2 hereunder. 1.2“Equity Interest” means all the equity interests in Autohome Used Car Appraisal held by the Pledgor (including all present and futurerights and benefits based on such equity interests), and any additional equity interests in Autohome Used Car Appraisal acquired by suchPledgor subsequent to the date hereof. For the avoidance of any doubt, on the date hereof, the Pledgor holds a 100% equity interest(equivalent to a contribution of RMB 2,000,000) in Autohome Used Car Appraisal. 1.3“Event of Default” means any event in accordance with Section 6 hereunder. 1.4“Notice of Default” means the notice of default issued by the Pledgee in accordance with this Agreement. 1.5.“Effective Date” This Agreement shall be effective upon its being signed by the Parties hereunder. Notwithstanding the foregoing, thePledge (as defined in Section 2.1) shall only come into effect in accordance with Section 3 of this Agreement. Equity Interest Pledge Agreement -4- 2.Pledge 2.1Each Pledgor hereby pledges, and if required, transfers and assigns the Equity Interest to the Pledgee as security for all of the SecuredObligations (the “Pledge”) of an amount up to the Maximum Amount (as defined below), and grant a first priority security interest in allrights, titles and interests that it has or may at any time hereafter acquire in and to the Equity Interest, together with all equity or otherownership interests representing a dividend on the Equity Interest, a distribution or return of capital upon or in respect of such EquityInterest, any subscription, first refusal, pre-emptive or other purchase rights with respect to or arising from such Equity Interest, anyvoting rights with respect to such Equity Interest or any other interest in Autohome Used Car Appraisal which, by reason of notice orlapse of time or the occurrence of other events, may be converted into a direct equity interest in Autohome Used Car Appraisal, and allproceeds of the foregoing (collectively, the “Pledged Collateral”). 2.1.1The Parties understand and agree that the monetary valuation arising from, relating to or in connection with the SecuredObligations shall be a variable and floating valuation until the Settlement Date (as defined below). Therefore, based on thereasonable assessment and evaluation by the Pledgor and the Pledgee of the Secured Obligations and the Pledged Collateral,the Pledgor and the Pledgee mutually acknowledge and agree that the Pledge shall aggregately secure the Secured Obligationsfor a maximum amount of RMB 2,000,000 (the “Maximum Amount”) prior to the Settlement Date.The Pledgor and the Pledgee may, taking into account the fluctuation in the monetary value of the Secured Obligations and thePledged Collateral, adjust the Maximum Amount based on mutual agreement by amending and supplementing this Agreement,from time to time, prior to the Settlement Date. 2.1.2Upon the occurrence of any of the events below (each an “Event of Settlement”), the Secured Obligations shall be fixed at avalue of the sum of all Secured Obligations that are due, outstanding and payable to the Pledgee on or immediately prior to thedate of such occurrence (the “Fixed Obligations”): (a)any or all of the Services Agreements or the Option Agreements expires or is terminated pursuant to thestipulations thereunder; (b)the occurrence of an Event of Default pursuant to Section 6 that is not resolved, which results in the Pledgeeserving a Notice of Default to the relevant Pledgor(s) pursuant to Section 6.3; Equity Interest Pledge Agreement -5-  (c)the Pledgee reasonably determines (having made due enquiries) that the Pledgor and/or Autohome Used CarAppraisal is insolvent or could potentially be made insolvent; or (d)any other event that requires the settlement of the Secured Obligations in accordance with relevant laws of thePRC. 2.2For the avoidance of doubt, the day of the occurrence of an Event of Settlement shall be the settlement date (the “Settlement Date”). Onor after the Settlement Date, the Pledgee shall be entitled, at the election of the Pledgee, to enforce the Pledge in accordance with Section7. 2.3The Pledgee is entitled to collect any and all dividends or other distributions, if any, arising from the Equity Interest during the Term ofthe Pledge (as defined below). 3.Effectiveness of Pledge, Scope and Term 3.1The Pledgor shall, promptly after the execution of this Agreement, but in no event later than 10 days from the date of this Agreement,register this Agreement and the Pledge hereunder with the State Administration for Industry and Commerce of the PRC or its competentlocal counterpart (the “AIC”). The Pledgor shall deliver to the Pledgee a copy of the registration or filing certificate from the AIC within7 days from the date of submission of the application for registration of this Agreement and Pledge with the AIC. 3.2The Pledge shall be effective upon the registration of the Pledge with the AIC in accordance with Section 3.1 above. The term of thePledge shall commence on the date when the Pledge is registered with the AIC and shall expire on the earlier of (a) the date on which alloutstanding Secured Obligations are paid in full or otherwise satisfied (as applicable) or (b) the Pledgee enforces the Pledge pursuant tothe terms and conditions hereof, to satisfy its rights under the Secured Obligations and Pledged Collateral in full or (c) the Pledgorcompletes its transfer of the Equity Interest to another party (individual or legal entity) pursuant to the Option Agreement and no longerholds any equity interest in Autohome Used Car Appraisal (the “Term of the Pledge”). Equity Interest Pledge Agreement -6- 4.Representations and Warranties of the PledgorThe Pledgor hereby makes the following representations and warranties to the Pledgee and confirms that the Pledgee executes this Agreement inreliance on such representations and warranties: 4.1The Pledgor is the legal owner of the Equity Interest that has been registered in his/her name, and is entitled to create a pledge on suchEquity Interest. 4.2None of the Pledged Collateral or the Pledge will be interfered with by any other pledgee at any time once the Pledgee exercises therights of the Pledge in accordance with this Agreement. 4.3The Pledgee shall be entitled to dispose or assign the Pledge in accordance with the relevant laws and this Agreement. 4.4All necessary authorizations have been obtained for the execution and performance of this Agreement by the Pledgor and the executionand performance of this Agreement by the Pledgor does not violate any applicable laws or regulations. The representative of the Pledgorwho signs this Agreement is lawfully and effectively authorized. 4.5The Pledgor warrants that there is no on-going civil, administrative or criminal litigation or administrative punishment or arbitrationrelated to the Equity Interest and is not aware of any such action pending or likely to be pending in the future as of the date of thisAgreement. 4.6There are no outstanding taxes, fees or undecided legal procedures related to the Equity Interest as of the date of this Agreement. 4.7Each stipulation hereunder is the expression of each Party’s true intention and shall be binding upon all the Parties. 5.Covenants of the Pledgor 5.1The Pledgor covenants to the Pledgee that it shall: 5.1.1not transfer or assign the Equity Interest, or create or permit to be created any pledge, lien, charge, mortgage, encumbrance,option, security or other interest in or over the Equity Interest that has been registered in its name, other than the Pledge createdhereunder and the option granted under the Option Agreement, without the prior written consent from the Pledgee; 5.1.2comply with and implement laws and regulations with respect to the pledge of rights, present to the Pledgee the notices, ordersor suggestions with respect to the Pledge issued or made by the competent authority within 5 days upon receiving such notices,orders or suggestions and take actions in accordance with the reasonable instructions of the Pledgee; and 5.1.3timely notify the Pledgee of any events or any received notices (i) which may affect the Equity Interest or any part of thePledgee’s rights, (ii) which may change the Pledgor’ covenants or obligations under this Agreement or (iii) which may affect thePledgor’ performance of their obligations under this Agreement, and take actions in accordance with the reasonable instructionsof the Pledgee. Equity Interest Pledge Agreement -7-  5.2The Pledgor agrees that the Pledgee’s right of exercising the Pledge under this Agreement shall not be suspended or hampered by thePledgor or any successors of the Pledgor or any person authorized by the Pledgor. 5.3The Pledgor jointly and severally covenants to the Pledgee that in order to protect or perfect the security over the Secured Obligations,the Pledgor shall (i) execute in good faith and cause other parties who have interests in the Pledge to execute all the forms, instruments,agreements (including those required for the registration and de-registration of the Pledge with the AIC), and/or (ii) take actions andcause other parties who have interests in the Pledge to take actions as required by the Pledgee and (iii) allow the Pledgee to exercise therights and authorization vested in the Pledgee under this Agreement. 5.4The Pledgor agrees to promptly make or cause to be made any filings or records, give or cause to be given any notices and take or causeto be taken any other actions as may be necessary under the laws of the PRC, to perfect the Pledge of the Pledged Collateral, includingthe AIC registration set forth in Section 3.1. 5.5The Pledgor covenants to the Pledgee that it will comply with and perform all the guarantees, covenants, agreements, representations andconditions for the benefits of the Pledgee. The Pledgor shall compensate for all the losses suffered by the Pledgee for such Pledgor’sfailure to perform or fully perform its guarantees, covenants, agreements, representations or conditions. 6.Events of Default 6.1Each of the following shall constitute an Event of Default: 6.1.1Autohome Used Car Appraisal or the Pledgor fails to make full and timely payment of any amounts due under the SecuredObligations as required under the Services Agreement or Option Agreement, or an event of default (as defined and stipulated inthose agreements) has occurred and is continuing; Equity Interest Pledge Agreement -8-  6.1.2the Pledgor makes or has made any inaccurate, incomplete, misleading or untrue representations or warranties under Section 4,or is in violation or breach of any of the representations and warranties under Section 4; 6.1.3the Pledgor breaches any of the covenants under Section 5; 6.1.4the Pledgor breaches any other covenants, undertakings or obligations of the Pledgor set forth herein; 6.1.5the Pledgor is unable to perform its obligations under this Agreement due to the separation or merger of Autohome Used CarAppraisal with other third parties or for any other reason; 6.1.6the Pledgor relinquishes all or any part of the Pledged Collateral or transfers or assigns all or any part of the Pledged Collateralwithout the prior written consent of the Pledgee (except the transfers or assigns permitted under the Option Agreement); 6.1.7any indebtedness, guarantee or other obligation of the Pledgor, whether pursuant to a contract or otherwise, (i) is accelerated asa result of a default thereunder and is required to be repaid or performed prior to the due date; or (ii) has become due and is notrepaid or performed when due which, in the Pledgee’s reasonable view, has materially adversely affected the Pledgor’s ability toperform their obligations under this Agreement; 6.1.8this Agreement is illegal as a result of any applicable laws or the Pledgor is restricted from continuing to perform its obligationsunder this Agreement; 6.1.9any approval, permit, license or authorization from any applicable governmental entity (or registration or filing procedure)required for Autohome Used Car Appraisal to provide used car appraisal services in the PRC is withdrawn, suspended,invalidated or materially amended; 6.1.10any approval, permit, license or authorization from any applicable government authority required to perform this Agreement ormake this Agreement enforceable, legal and valid is withdrawn, suspended, invalidated or materially amended; or 6.1.11any property owned by the Pledgor is altered or damaged which, in the Pledgee’s reasonable view, has materially adverselyaffected the Pledgor’s ability to perform their obligations under this Agreement. Equity Interest Pledge Agreement -9-  6.2The Pledgor shall immediately give a written notice to the Pledgee if the Pledgor is aware or find that any event set forth in Section 6.1 orany events that may result in the foregoing events have occurred or are occurring. 6.3Unless an Event of Default set forth in Section 6.1 has been rectified to the Pledgee’s satisfaction, the Pledgee, at any time the event ofdefault occurs or thereafter, may give a written notice of default to the Pledgor, and require the Pledgor, at the discretion of the Pledgee,to immediately make full payment of the outstanding amounts payable under the Services Agreements, and/or Option Agreements, andother payables, or dispose of the Pledge in accordance with Section 7 herein. 7.Exercise of the Rights of the Pledge 7.1The Pledgor shall not transfer or assign the Pledge without prior written approval from the Pledgee prior to the full settlement andfulfillment of the Secured Obligations. 7.2The Pledgee shall give a notice of default to the Pledgor(s) when the Pledgee exercises the rights of Pledge. 7.3Subject to Section 6.3, the Pledgee may exercise the right to dispose of the Pledge at any time when the Pledgee gives a notice of defaultin accordance with Section 6.3 or thereafter. 7.4The Pledgee is entitled to have priority in receiving payment by the evaluation or proceeds from the auction or sale of whole or part ofthe Pledged Collateral in accordance with legal procedures until the outstanding Secured Obligation or other monetary obligationspayable by the Pledgor and/or Autohome Used Car Appraisal is fully paid, repaid or otherwise settled. 7.5The Pledgor shall not hinder the Pledgee from disposing the Pledge in accordance with this Agreement and shall give necessaryassistance so that the Pledgee could realize its Pledge. 8.Transfer or Assignment 8.1The Pledgor shall not donate or transfer their rights and obligations herein to any third party without prior written consent from thePledgee. 8.2This Agreement shall be binding upon the Pledgor and their successors and be effective to the Pledgee and its each successor andassignee. Equity Interest Pledge Agreement -10-  8.3The Pledgee may transfer or assign all Secured Obligations and its right to the Pledge to any third party at any time. In this case, theassignee shall enjoy and undertake the same rights and obligations herein of the Pledgee as if the assignee is a party hereto. When thePledgee transfers or assigns the Secured Obligations and its rights to the Pledge, at the request of the Pledgee, the Pledgor shall executethe relevant agreements and/or documents with respect to such transfer or assignment. 8.4After a change to the Pledgee resulting from a transfer or assignment, the new parties to the pledge shall re-execute a pledge contract. 9.TerminationThis Agreement shall not terminate until the Term of the Pledge expires pursuant to Section 3 herein. 10.Force Majeure 10.1If this Agreement is delayed in or prevented from performing in the Event of Force Majeure (“Event of Force Majeure”), only within thelimitation of such delay or prevention, the affected Party is absolved from any liability under this Agreement. Force Majeure, whichincludes acts of governments, acts of nature, fire, explosion, geographic change, flood, earthquake, tide, lightning, war, means anyunforeseen events beyond the prevented Party’s reasonable control and cannot be prevented with reasonable care. However, any shortageof credit, capital or finance shall not be regarded as an event beyond a Party’s reasonable control. The Party affected by Force Majeurewho claims for exemption from performing any obligations under this Agreement or under any Section herein shall notify the other partyof such exemption promptly and advice him of the steps to be taken for completion of the performance. 10.2The Party affected by Force Majeure shall not assume any liability under this Agreement. However, subject to the Party affected by ForceMajeure having taken its reasonable and practicable efforts to perform this Agreement, the Party claiming for exemption of the liabilitiesmay only be exempted from performing such liability as within limitation of the part performance delayed or prevented by ForceMajeure. Once causes for such exemption of liabilities are rectified and remedied, both parties agree to resume performance of thisAgreement with their best efforts. 11.Applicable Law and Dispute Resolution 11.1The execution, validity, performance and interpretation of this Agreement shall be governed by and construed in accordance with thelaws of the PRC. Equity Interest Pledge Agreement -11-  11.2The Parties shall strive to settle any dispute arising from the interpretation or performance through friendly consultation. In case nosettlement can be reached through consultation, each party can submit such matter to China International Economic and TradeArbitration Commission (“CIETAC”) for arbitration. The arbitration shall follow the then current rules of CIETAC, and the arbitrationproceedings shall be conducted in Chinese and shall take place in Beijing. The arbitration award shall be final and binding upon theParties. This article shall not be affected by the termination or elimination of this Agreement. 11.3In case of any disputes arising out of the interpretation and performance of this Agreement or any pending arbitration of such dispute,each Party shall continue to perform their obligations under this Agreement, except for the matters in dispute. 12.NoticeAny notice or correspondence, which is given by the Party as stipulated hereunder, shall be in Chinese and English writing and shall be delivered inperson or by registered or prepaid mail or recognized express service, or be transmitted by telex or facsimile to the following addresses: Pledgee : Beijing Chezhiying Technology Co., Ltd. Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaFax : 010-59857387Tele : 010-59857001Addressee : Qin ZhiPledgor : Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Address : Room 1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China.Fax : 010-59857400Tele : 010-59857002Addressee : Qin Zhi 13.AppendicesThe appendices to this Agreement constitute an integral part of this Agreement. Equity Interest Pledge Agreement -12- 14.WaiverThe Pledgee’s non-exercise or delay in exercise of any rights, remedies, power or privileges hereunder shall not be deemed as the waiver of suchrights, remedies, power or privileges. Any single or partial exercise of the rights, remedies, power and privileges shall not exclude the Pledgee fromexercising any other rights, remedies, power and privileges. The rights, remedies, power and privileges hereunder are accumulative and shall notexclude the application of any other rights, remedies, power and privileges stipulated by laws. 15.Miscellaneous 15.1Any amendments, modifications or supplements to this Agreement shall be in writing and come into effect upon being executed andsealed by the Parties hereto. 15.2In case any terms and stipulations in this Agreement are regarded as illegal or can not be performed in accordance with the applicablelaw, such terms and stipulations shall be deemed to ineffective and not enforceable within the scope governed by the applicable law, andthe remaining stipulations will remain effective. 15.3This Agreement, the Services Agreement, the Equity Option Agreement shall constitute the entire agreement among the parties in respectof the subject matter hereof and shall supersede any previous discussions, negotiations and agreements related thereto.[The space below is intentionally left blank.] Equity Interest Pledge Agreement -13- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of thedate first written above.PLEDGEE: Beijing Chezhiying Technology Co., Ltd.(Company Seal: /s/ Beijing ChezhiyingTechnology Co., Ltd.)By: /s/ Qin ZhiQin ZhiAuthorized RepresentativePLEDGOR: Beijing Shengtuo Hongyuan Information Technology Co., Ltd.(Company Seal: /s/ Beijing ShengtuoHongyuan InformationTechnology Co., Ltd.)By: /s/ Qin ZhiQin ZhiAuthorized Representative Equity Interest Pledge Agreement Exhibit 4.65 Equity Interest Pledge Agreement BetweenBeijing Chezhiying Technology Co., Ltd.andBeijing Shengtuo Hongyuan Information Technology Co.July 8, 2015TABLE OF CONTENTS ARTICLES PAGES1. DEFINITIONS 42. PLEDGE 43. EFFECTIVENESS OF PLEDGE, SCOPE AND TERM 64. REPRESENTATIONS AND WARRANTIES OF THE PLEDGOR 65. COVENANTS OF THE PLEDGOR 76. EVENTS OF DEFAULT 87. EXERCISE OF THE RIGHTS OF THE PLEDGE 108. TRANSFER OR ASSIGNMENT 109. TERMINATION 1110. FORCE MAJEURE 1111. APPLICABLE LAW AND DISPUTE RESOLUTION 1112. NOTICE 1213. APPENDICES 1214. WAIVER 1215. MISCELLANEOUS 13 Equity Interest Pledge Agreement - 2 - This Interest Pledge Agreement (this “Agreement”) is entered in Beijing, the People’s Republic of China (“PRC”, excluding the Hong Kong SpecialAdministrative Region, the Macao Special Administrative Region and Taiwan, for the purposes of this Agreement) and dated on July 8, 2015 by and amongthe following parties: (1)PLEDGEE: Beijing Chezhiying Technology Co., Ltd. ( ), a wholly foreign owned enterprise duly incorporated andvalidly existing under the laws of the PRC, with its registered address at Room1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing,China.and (2)PLEDGOR: Beijing Shengtuo Hongyuan Information Technology Co., Ltd. ( ), a limited liability companyduly incorporated and validly existing under the laws of the PRC, with its registered address at Room 1005, F/10, Tower B, No. 3, Danling Street,Haidian District, Beijing, China..(individually a “Party” and collectively the “Parties”)WHEREAS: A.Pledgor is a PRC limited company, and holds 100 % of the equity interest of Beijing Autohome Used Car Brokerage Co., Ltd ( ) (“Autohome Brokerage”). B.Autohome Brokerage is a limited liability company registered in Beijing, which engages in the business of used vehicles brokerage. C.The Pledgee, a wholly foreign-owned company registered in Beijing, PRC, and has been licensed by the relevant PRC government authority to carryon the business of internet technology development, technology promotion, technology transfer, technology consulting, technology service; computersystem integration; trading consulting; business information consulting. The Pledgee and Autohome Brokerage entered into an Exclusive Technicaland Consulting Services Agreement on July 8, 2015, pursuant to which Autohome Brokerage required to pay service fees (the “Service Fees”) to thePledgee in consideration for the corresponding services to be provided by the Pledgee (the “Services Agreement”). D.Simultaneous with the execution of this Agreement, the Pledgor has also entered into an Equity Option Agreement with the Pledgee, pursuant to whichthe Pledgor grants to the Pledgee an exclusive right to purchase the Equity Interest (as defined below) at any time upon satisfaction of variousrequirements under PRC law (the “Option Agreement”). Equity Interest Pledge Agreement -3- E.In order to ensure that (i) the Pledgee collects Service Fees under the Services Agreement from Autohome Brokerage, (ii) the Pledgor’ other obligationsunder the Option Agreement are fulfilled, and (iii) all other debts, monetary liabilities or other payment obligations owed to the Pledgee by the Pledgorand/or Autohome Brokerage, arising under or in relation to the Services Agreement including, but not limited to, any obligation to pay damages for abreach of any obligation of the Pledgor or Autohome Brokerage under the Services Agreement, are paid, the Pledgor is willing to pledge all the EquityInterest (as defined below,) i.e. the 100% equity interest of Autohome Brokerage, equivalent to a contribution of RMB 2,000,000 to the Pledgee assecurity for the above-mentioned obligations of the Pledgor and Autohome Brokerage (collectively, the “Secured Obligations”).In order to set forth each Party’s rights and obligations, the Pledgee and the Pledgor through mutual negotiations hereby enter into this Agreement basedupon the following terms: 1.DefinitionsUnless otherwise provided in this Agreement, the following terms shall have the following meanings: 1.1“Pledge” means the full content of Section 2 hereunder. 1.2“Equity Interest” means all the equity interests in Autohome Brokerage held by the Pledgor (including all present and future rights and benefitsbased on such equity interests), and any additional equity interests in Autohome Brokerage acquired by such Pledgor subsequent to the datehereof. For the avoidance of any doubt, on the date hereof, the Pledgor holds a 100% equity interest (equivalent to a contribution ofRMB2,000,000) in Autohome Brokerage. 1.3“Event of Default” means any event in accordance with Section 6 hereunder. 1.4“Notice of Default” means the notice of default issued by the Pledgee in accordance with this Agreement. 1.5.“Effective Date” This Agreement shall be effective upon its being signed by the Parties hereunder. Notwithstanding the foregoing, the Pledge (asdefined in Section 2.1) shall only come into effect in accordance with Section 3 of this Agreement. Equity Interest Pledge Agreement -4- 2.Pledge 2.1Pledgor hereby pledges, and if required, transfers and assigns the Equity Interest to the Pledgee as security for all of the Secured Obligations (the“Pledge”) of an amount up to the Maximum Amount (as defined below), and grant a first priority security interest in all rights, titles and intereststhat he has or may at any time hereafter acquire in and to the Equity Interest, together with all equity or other ownership interests representing adividend on the Equity Interest, a distribution or return of capital upon or in respect of such Equity Interest, any subscription, first refusal, pre-emptive or other purchase rights with respect to or arising from such Equity Interest, any voting rights with respect to such Equity Interest or anyother interest in Autohome Brokerage which, by reason of notice or lapse of time or the occurrence of other events, may be converted into adirect equity interest in Autohome Brokerage, and all proceeds of the foregoing (collectively, the “Pledged Collateral”). 2.1.1The Parties understand and agree that the monetary valuation arising from, relating to or in connection with the Secured Obligationsshall be a variable and floating valuation until the Settlement Date (as defined below). Therefore, based on the reasonable assessmentand evaluation by the Pledgor and the Pledgee of the Secured Obligations and the Pledged Collateral, the Pledgor and the Pledgeemutually acknowledge and agree that the Pledge shall aggregately secure the Secured Obligations for a maximum amount of RMB2,000,000 (the “Maximum Amount”) prior to the Settlement Date.The Pledgor and the Pledgee may, taking into account the fluctuation in the monetary value of the Secured Obligations and thePledged Collateral, adjust the Maximum Amount based on mutual agreement by amending and supplementing this Agreement, fromtime to time, prior to the Settlement Date. 2.1.2Upon the occurrence of any of the events below (each an “Event of Settlement”), the Secured Obligations shall be fixed at a value ofthe sum of all Secured Obligations that are due, outstanding and payable to the Pledgee on or immediately prior to the date of suchoccurrence (the “Fixed Obligations”): (a)any or all of the Services Agreements or the Option Agreements expires or is terminated pursuant to the stipulations thereunder; (b)the occurrence of an Event of Default pursuant to Section 6 that is not resolved, which results in the Pledgee serving a Notice ofDefault to the relevant Pledgor(s) pursuant to Section 6.3; Equity Interest Pledge Agreement -5-  (c)the Pledgee reasonably determines (having made due enquiries) that any of the Pledgor and/or Autohome Brokerage is insolventor could potentially be made insolvent; or (d)any other event that requires the settlement of the Secured Obligations in accordance with relevant laws of the PRC. 2.2For the avoidance of doubt, the day of the occurrence of an Event of Settlement shall be the settlement date (the “Settlement Date”). On or afterthe Settlement Date, the Pledgee shall be entitled, at the election of the Pledgee, to enforce the Pledge in accordance with Section 7. 2.3The Pledgee is entitled to collect any and all dividends or other distributions, if any, arising from the Equity Interest during the Term of thePledge (as defined below). 3.Effectiveness of Pledge, Scope and Term 3.1The Pledgor shall, promptly after the execution of this Agreement, but in no event later than 10 days from the date of this Agreement, registerthis Agreement and the Pledge hereunder with the State Administration for Industry and Commerce of the PRC or its competent local counterpart(the “AIC”). The Pledgor shall deliver to the Pledgee a copy of the registration or filing certificate from the AIC within 7 days from the date ofsubmission of the application for registration of this Agreement and Pledge with the AIC. 3.2The Pledge shall be effective upon the registration of the Pledge with the AIC in accordance with Section 3.1 above. The term of the Pledge shallcommence on the date when the Pledge is registered with the AIC and shall expire on the earlier of (a) the date on which all outstanding SecuredObligations are paid in full or otherwise satisfied (as applicable) or (b) the Pledgee enforces the Pledge pursuant to the terms and conditionshereof, to satisfy its rights under the Secured Obligations and Pledged Collateral in full or (c) the Pledgor completes her transfer of the EquityInterest to another party (individual or legal entity) pursuant to the Option Agreement and no longer holds any equity interest in AutohomeBrokerage (the “Term of the Pledge”). 4.Representations and Warranties of the PledgorThe Pledgor hereby makes the following representations and warranties to the Pledgee and confirms that the Pledgee executes this Agreement inreliance on such representations and warranties: Equity Interest Pledge Agreement -6-  4.1The Pledgor is the legal owner of the Equity Interest that has been registered in its name, and is entitled to create a pledge on such EquityInterest. 4.2None of the Pledged Collateral or the Pledge will be interfered with by any other pledgee at any time once the Pledgee exercises the rights of thePledge in accordance with this Agreement. 4.3The Pledgee shall be entitled to dispose or assign the Pledge in accordance with the relevant laws and this Agreement. 4.4All necessary authorizations have been obtained for the execution and performance of this Agreement by the Pledgor and the execution andperformance of this Agreement by the Pledgor does not violate any applicable laws or regulations. The representative of the Pledgor who signsthis Agreement is lawfully and effectively authorized. 4.5The Pledgor warrants that there is no on-going civil, administrative or criminal litigation or administrative punishment or arbitration related tothe Equity Interest and is not aware of any such action pending or likely to be pending in the future as of the date of this Agreement. 4.6There are no outstanding taxes, fees or undecided legal procedures related to the Equity Interest as of the date of this Agreement. 4.7Each stipulation hereunder is the expression of each Party’s true intention and shall be binding upon all the Parties. 5.Covenants of the Pledgor 5.1The Pledgor covenants to the Pledgee that it shall: 5.1.1not transfer or assign the Equity Interest, or create or permit to be created any pledge, lien, charge, mortgage, encumbrance, option,security or other interest in or over the Equity Interest that has been registered in its name, other than the Pledge created hereunder andthe option granted under the Option Agreement, without the prior written consent from the Pledgee; 5.1.2comply with and implement laws and regulations with respect to the pledge of rights, present to the Pledgee the notices, orders orsuggestions with respect to the Pledge issued or made by the competent authority within 5 days upon receiving such notices, orders orsuggestions and take actions in accordance with the reasonable instructions of the Pledgee; and Equity Interest Pledge Agreement -7-  5.1.3timely notify the Pledgee of any events or any received notices (i) which may affect the Equity Interest or any part of the Pledgee’s rights,(ii) which may change the Pledgor’ covenants or obligations under this Agreement or (iii) which may affect the Pledgor’ performance oftheir obligations under this Agreement, and take actions in accordance with the reasonable instructions of the Pledgee. 5.2The Pledgor agrees that the Pledgee’s right of exercising the Pledge under this Agreement shall not be suspended or hampered by the Pledgor orany successors of the Pledgor or any person authorized by the Pledgor. 5.3The Pledgor covenants to the Pledgee that in order to protect or perfect the security over the Secured Obligations, the Pledgor shall (i) execute ingood faith and cause other parties who have interests in the Pledge to execute all the forms, instruments, agreements (including those required forthe registration and de-registration of the Pledge with the AIC), and/or (ii) take actions and cause other parties who have interests in the Pledge totake actions as required by the Pledgee and (iii) allow the Pledgee to exercise the rights and authorization vested in the Pledgee under thisAgreement. 5.4The Pledgor agrees to promptly make or cause to be made any filings or records, give or cause to be given any notices and take or cause to betaken any other actions as may be necessary under the laws of the PRC, to perfect the Pledge of the Pledged Collateral, including the AICregistration set forth in Section 3.1. 5.5The Pledgor covenants to the Pledgee that he will comply with and perform all the guarantees, covenants, agreements, representations andconditions for the benefits of the Pledgee. The Pledgor shall compensate for all the losses suffered by the Pledgee for such Pledgor’s failure toperform or fully perform its guarantees, covenants, agreements, representations or conditions. 6.Events of Default 6.1Each of the following shall constitute an Event of Default: 6.1.1Autohome Brokerage or the Pledgor fails to make full and timely payment of any amounts due under the Secured Obligations as requiredunder the Services Agreement or Option Agreement, or an event of default (as defined and stipulated in those agreements) has occurredand is continuing; 6.1.2the Pledgor makes or has made any inaccurate, incomplete, misleading or untrue representations or warranties under Section 4, or is inviolation or breach of any of the representations and warranties under Section 4; Equity Interest Pledge Agreement -8-  6.1.3the Pledgor breaches any of the covenants under Section 5; 6.1.4the Pledgor breaches any other covenants, undertakings or obligations of the Pledgor set forth herein; 6.1.5the Pledgor is unable to perform its obligations under this Agreement due to the separation or merger of Autohome Brokerage with otherthird parties or for any other reason; 6.1.6the Pledgor relinquishes all or any part of the Pledged Collateral or transfers or assigns all or any part of the Pledged Collateral withoutthe prior written consent of the Pledgee (except the transfers or assigns permitted under the Option Agreement); 6.1.7any indebtedness, guarantee or other obligation of the Pledgor, whether pursuant to a contract or otherwise, (i) is accelerated as a result ofa default thereunder and is required to be repaid or performed prior to the due date; or (ii) has become due and is not repaid or performedwhen due which, in the Pledgee’s reasonable view, has materially adversely affected the Pledgor’s ability to perform their obligationsunder this Agreement; 6.1.8this Agreement is illegal as a result of any applicable laws or the Pledgor is restricted from continuing to perform its obligations underthis Agreement; 6.1.9any approval, permit, license or authorization from any applicable governmental entity (or registration or filing procedure) required forAutohome Brokerage to provide used vehicles brokerage service in the PRC is withdrawn, suspended, invalidated or materiallyamended; 6.1.10any approval, permit, license or authorization from any applicable government authority required to perform this Agreement or make thisAgreement enforceable, legal and valid is withdrawn, suspended, invalidated or materially amended; or 6.1.11any property owned by the Pledgor is altered or damaged which, in the Pledgee’s reasonable view, has materially adversely affected thePledgor’s ability to perform their obligations under this Agreement. Equity Interest Pledge Agreement -9-  6.2The Pledgor shall immediately give a written notice to the Pledgee if the Pledgor is aware or find that any event set forth in Section 6.1 or anyevents that may result in the foregoing events have occurred or are occurring. 6.3Unless an Event of Default set forth in Section 6.1 has been rectified to the Pledgee’s satisfaction, the Pledgee, at any time the event of defaultoccurs or thereafter, may give a written notice of default to the Pledgor, and require the Pledgor, at the discretion of the Pledgee, to immediatelymake full payment of the outstanding amounts payable under the Services Agreements, and/or Option Agreements, and other payables, ordispose of the Pledge in accordance with Section 7 herein. 7.Exercise of the Rights of the Pledge 7.1The Pledgor shall not transfer or assign the Pledge without prior written approval from the Pledgee prior to the full settlement and fulfillment ofthe Secured Obligations. 7.2The Pledgee shall give a notice of default to the Pledgor(s) when the Pledgee exercises the rights of Pledge. 7.3Subject to Section 6.3, the Pledgee may exercise the right to dispose of the Pledge at any time when the Pledgee gives a notice of default inaccordance with Section 6.3 or thereafter. 7.4The Pledgee is entitled to have priority in receiving payment by the evaluation or proceeds from the auction or sale of whole or part of thePledged Collateral in accordance with legal procedures until the outstanding Secured Obligation or other monetary obligations payable by thePledgor and/or Autohome Brokerage is fully paid, repaid or otherwise settled. 7.5The Pledgor shall not hinder the Pledgee from disposing the Pledge in accordance with this Agreement and shall give necessary assistance sothat the Pledgee could realize his Pledge. 8.Transfer or Assignment 8.1The Pledgor shall not donate or transfer their rights and obligations herein to any third party without prior written consent from the Pledgee. 8.2This Agreement shall be binding upon the Pledgor and their successors and be effective to the Pledgee and his each successor and assignee. 8.3The Pledgee may transfer or assign all Secured Obligations and its right to the Pledge to any third party at any time. In this case, the assigneeshall enjoy and undertake the same rights and obligations herein of the Pledgee as if the assignee is a party hereto. When the Pledgee transfers orassigns the Secured Obligations and its rights to the Pledge, at the request of the Pledgee, the Pledgor shall execute the relevant agreementsand/or documents with respect to such transfer or assignment. Equity Interest Pledge Agreement -10-  8.4After a change to the Pledgee resulting from a transfer or assignment, the new parties to the pledge shall re-execute a pledge contract. 9.TerminationThis Agreement shall not terminate until the Term of the Pledge expires pursuant to Section 3 herein. 10.Force Majeure 10.1If this Agreement is delayed in or prevented from performing in the Event of Force Majeure (“Event of Force Majeure”), only within thelimitation of such delay or prevention, the affected Party is absolved from any liability under this Agreement. Force Majeure, which includes actsof governments, acts of nature, fire, explosion, geographic change, flood, earthquake, tide, lightning, war, means any unforeseen events beyondthe prevented Party’s reasonable control and cannot be prevented with reasonable care. However, any shortage of credit, capital or finance shallnot be regarded as an event beyond a Party’s reasonable control. The Party affected by Force Majeure who claims for exemption from performingany obligations under this Agreement or under any Section herein shall notify the other party of such exemption promptly and advice him of thesteps to be taken for completion of the performance. 10.2The Party affected by Force Majeure shall not assume any liability under this Agreement. However, subject to the Party affected by ForceMajeure having taken its reasonable and practicable efforts to perform this Agreement, the Party claiming for exemption of the liabilities mayonly be exempted from performing such liability as within limitation of the part performance delayed or prevented by Force Majeure. Oncecauses for such exemption of liabilities are rectified and remedied, both parties agree to resume performance of this Agreement with their bestefforts. 11.Applicable Law and Dispute Resolution 11.1The execution, validity, performance and interpretation of this Agreement shall be governed by and construed in accordance with the laws of thePRC. Equity Interest Pledge Agreement -11-  11.2The Parties shall strive to settle any dispute arising from the interpretation or performance through friendly consultation. In case no settlementcan be reached through consultation, each party can submit such matter to China International Economic and Trade Arbitration Commission(“CIETAC”) for arbitration. The arbitration shall follow the then current rules of CIETAC, and the arbitration proceedings shall be conducted inChinese and shall take place in Beijing. The arbitration award shall be final and binding upon the Parties. This article shall not be affected by thetermination or elimination of this Agreement. 11.3In case of any disputes arising out of the interpretation and performance of this Agreement or any pending arbitration of such dispute, each Partyshall continue to perform their obligations under this Agreement, except for the matters in dispute. 12.NoticeAny notice or correspondence, which is given by the Party as stipulated hereunder, shall be in Chinese and English writing and shall be delivered inperson or by registered or prepaid mail or recognized express service, or be transmitted by telex or facsimile to the following addresses: Pledgee : Beijing Chezhiying Technology Co., Ltd. ( )Address : 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaFax : 010-59857400Tele : 010-59857002Addressee : Qin Zhi Pledgor : Beijing Shengtuo Hongyuan Information Technology Co., Ltd. ( )Address : Room1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaFax : 010-59857400Tele : 010-59857899Addressee : Qin Zhi 13.AppendicesThe appendices to this Agreement constitute an integral part of this Agreement. Equity Interest Pledge Agreement -12- 14.WaiverThe Pledgee’s non-exercise or delay in exercise of any rights, remedies, power or privileges hereunder shall not be deemed as the waiver of such rights,remedies, power or privileges. Any single or partial exercise of the rights, remedies, power and privileges shall not exclude the Pledgee from exercisingany other rights, remedies, power and privileges. The rights, remedies, power and privileges hereunder are accumulative and shall not exclude theapplication of any other rights, remedies, power and privileges stipulated by laws. 15.Miscellaneous 15.1Any amendments, modifications or supplements to this Agreement shall be in writing and come into effect upon being executed and sealed bythe Parties hereto. 15.2In case any terms and stipulations in this Agreement are regarded as illegal or can not be performed in accordance with the applicable law, suchterms and stipulations shall be deemed to ineffective and not enforceable within the scope governed by the applicable law, and the remainingstipulations will remain effective. 15.3This Agreement, the Services Agreement, the Equity Option Agreement and the Power of Attorney from the Pledgor to the Pledgee in favor of thePledgee shall constitute the entire agreement among the parties in respect of the subject matter hereof and shall supersede any previousdiscussions, negotiations and agreements related thereto.[The space below is intentionally left blank.] Equity Interest Pledge Agreement -13- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of thedate first written above.PLEDGEE: Beijing Chezhiying Technology Co., Ltd.( )(Company Seal: /s/ Beijing Chezhiying Technology Co., Ltd.)By: /s/ Qin Zhi Authorized Representative:PLEDGOR: Beijing Shengtuo Hongyuan Information Technology Co., Ltd.( )(Company Seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd.)By: /s/ Qin Zhi Authorized Representative: Equity Interest Pledge Agreement Exhibit 4.66 Equity Interest Pledge Agreement BetweenBeijing Chezhiying Technologies Co., Ltd.andQin ZhiJuly 8, 2015TABLE OF CONTENTS ARTICLES PAGES 1. DEFINITIONS 4 2. PLEDGE 5 3. EFFECTIVENESS OF PLEDGE, SCOPE AND TERM 6 4. REPRESENTATIONS AND WARRANTIES OF THE PLEDGOR 7 5. COVENANTS OF THE PLEDGOR 7 6. EVENTS OF DEFAULT 8 7. EXERCISE OF THE RIGHTS OF THE PLEDGE 10 8. TRANSFER OR ASSIGNMENT 10 9. TERMINATION 11 10. FORCE MAJEURE 11 11. APPLICABLE LAW AND DISPUTE RESOLUTION 12 12. NOTICE 12 13. APPENDICES 12 14. WAIVER 13 15. MISCELLANEOUS 13 Equity Interest Pledge Agreement - 2 - This Interest Pledge Agreement (this “Agreement”) is entered in Beijing, the People’s Republic of China (“PRC”, excluding the Hong Kong SpecialAdministrative Region, the Macao Special Administrative Region and Taiwan, for the purposes of this Agreement) and dated on July 8, 2015 by and amongthe following parties: (1)PLEDGEE: Beijing Chezhiying Technologies Co., Ltd. , a wholly foreign owned enterprise duly incorporated andvalidly existing under the laws of the PRC, with its registered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing100080, China.and (2)PLEDGOR: Qin Zhi, a PRC citizen, holder of identification card number ***, whose residential address is at Room 452, Unit 4, Building 31,Yuetan South Street, Xicheng District, Beijing, China.(individually a “Party” and collectively the “Parties”)WHEREAS: A.Pledgor is a PRC citizen, and holds 50 % of the equity interest of Beijing Shengtuo Hongyuan Information Technology Co., Ltd. (“Shengtuo Hongyuan Information”). B.Shengtuo Hongyuan Information is a limited liability company registered in Beijing, which engages in the business of Internet information service. C.The Pledgor and the Pledgee entered into a Loan Agreement on July 8, 2015, pursuant to which the Pledgee extended a loan in the amount of RMB5,000,000 (the “Loan”) to the Pledgor (the “Loan Agreement”). D.The Pledgee, a wholly foreign-owned company registered in Beijing, PRC, and has been licensed by the relevant PRC government authority tocarry on the business of technology-related research and development, transfer of technology, technology training and consulting. The Pledgee andShengtuo Hongyuan Information entered into an Exclusive Technical and Consulting Services Agreement on July 8, 2015, pursuant to whichShengtuo Hongyuan Information is required to pay service fees (the “Service Fees”) to the Pledgee in consideration for the corresponding servicesto be provided by the Pledgee (the “Services Agreement”). E.Simultaneous with the execution of this Agreement, the Pledgor has also entered into an Equity Option Agreement with the Pledgee, pursuant towhich the Pledgor grants to the Pledgee an exclusive right to purchase the Equity Interest (as defined below) at any time upon satisfaction ofvarious requirements under PRC law (the “Option Agreement”). Equity Interest Pledge Agreement -3- F.In order to ensure that (i) the Pledgor repay the Loan under the Loan Agreement; (ii) the Pledgee collects Service Fees under the Services Agreementfrom Shengtuo Hongyuan Information, (iii) the Pledgor’ other obligations under the Option Agreement are fulfilled, and (iv) all other debts,monetary liabilities or other payment obligations owed to the Pledgee by the Pledgor and/or Shengtuo Hongyuan Information, arising under or inrelation to the Services Agreement or the Loan Agreement including, but not limited to, any obligation to pay damages for a breach of anyobligation of the Pledgor or Shengtuo Hongyuan Information under the Loan Agreement or the Services Agreement (as applicable), are paid, thePledgor is willing to pledge all the Equity Interest (as defined below,) i.e. the 50% equity interest of You Che You Jia Advertising, equivalent to acontribution of RMB 5,000,000 to the Pledgee as security for the above-mentioned obligations of the Pledgor and Shengtuo Hongyuan Information(collectively, the “Secured Obligations”).In order to set forth each Party’s rights and obligations, the Pledgee and the Pledgor through mutual negotiations hereby enter into this Agreement basedupon the following terms: 1.DefinitionsUnless otherwise provided in this Agreement, the following terms shall have the following meanings: 1.1“Pledge” means the full content of Section 2 hereunder. 1.2“Equity Interest” means all the equity interests in Shengtuo Hongyuan Information held by the Pledgor (including all present and futurerights and benefits based on such equity interests), and any additional equity interests in Shengtuo Hongyuan Information acquired bysuch Pledgor subsequent to the date hereof. For the avoidance of any doubt, on the date hereof, the Pledgor holds a 50% equity interest(equivalent to a contribution of RMB5,000,000) in Shengtuo Hongyuan Information. 1.3“Event of Default” means any event in accordance with Section 6 hereunder. 1.4“Notice of Default” means the notice of default issued by the Pledgee in accordance with this Agreement. 1.5.“Effective Date” This Agreement shall be effective upon its being signed by the Parties hereunder. Notwithstanding the foregoing, thePledge (as defined in Section 2.1) shall only come into effect in accordance with Section 3 of this Agreement. Equity Interest Pledge Agreement -4- 2.Pledge 2.1Each Pledgor hereby pledges, and if required, transfers and assigns the Equity Interest to the Pledgee as security for all of the SecuredObligations (the “Pledge”) of an amount up to the Maximum Amount (as defined below), and grant a first priority security interest in allrights, titles and interests that he has or may at any time hereafter acquire in and to the Equity Interest, together with all equity or otherownership interests representing a dividend on the Equity Interest, a distribution or return of capital upon or in respect of such EquityInterest, any subscription, first refusal, pre-emptive or other purchase rights with respect to or arising from such Equity Interest, anyvoting rights with respect to such Equity Interest or any other interest in Shengtuo Hongyuan Information which, by reason of notice orlapse of time or the occurrence of other events, may be converted into a direct equity interest in Shengtuo Hongyuan Information, and allproceeds of the foregoing (collectively, the “Pledged Collateral”). 2.1.1The Parties understand and agree that the monetary valuation arising from, relating to or in connection with the SecuredObligations shall be a variable and floating valuation until the Settlement Date (as defined below). Therefore, based on thereasonable assessment and evaluation by the Pledgor and the Pledgee of the Secured Obligations and the Pledged Collateral,the Pledgor and the Pledgee mutually acknowledge and agree that the Pledge shall aggregately secure the Secured Obligationsfor a maximum amount of RMB 500,000,000 (the “Maximum Amount”) prior to the Settlement Date.The Pledgor and the Pledgee may, taking into account the fluctuation in the monetary value of the Secured Obligations and thePledged Collateral, adjust the Maximum Amount based on mutual agreement by amending and supplementing this Agreement,from time to time, prior to the Settlement Date. 2.1.2Upon the occurrence of any of the events below (each an “Event of Settlement”), the Secured Obligations shall be fixed at avalue of the sum of all Secured Obligations that are due, outstanding and payable to the Pledgee on or immediately prior to thedate of such occurrence (the “Fixed Obligations”): (a)any or all of the Loan Agreements, Services Agreements or the Option Agreements expires or is terminatedpursuant to the stipulations thereunder; (b)the occurrence of an Event of Default pursuant to Section 6 that is not resolved, which results in the Pledgeeserving a Notice of Default to the relevant Pledgor(s) pursuant to Section 6.3; Equity Interest Pledge Agreement -5-  (c)the Pledgee reasonably determines (having made due enquiries) that any of the Pledgor and/or ShengtuoHongyuan Information is insolvent or could potentially be made insolvent; or (d)any other event that requires the settlement of the Secured Obligations in accordance with relevant laws of thePRC. 2.2For the avoidance of doubt, the day of the occurrence of an Event of Settlement shall be the settlement date (the “Settlement Date”). Onor after the Settlement Date, the Pledgee shall be entitled, at the election of the Pledgee, to enforce the Pledge in accordance with Section7. 2.3The Pledgee is entitled to collect any and all dividends or other distributions, if any, arising from the Equity Interest during the Term ofthe Pledge (as defined below). 3.Effectiveness of Pledge, Scope and Term 3.1The Pledgor shall, promptly after the execution of this Agreement, but in no event later than 10 days from the date of this Agreement,register this Agreement and the Pledge hereunder with the State Administration for Industry and Commerce of the PRC or its competentlocal counterpart (the “AIC”). The Pledgor shall deliver to the Pledgee a copy of the registration or filing certificate from the AIC within7 days from the date of submission of the application for registration of this Agreement and Pledge with the AIC. 3.2The Pledge shall be effective upon the registration of the Pledge with the AIC in accordance with Section 3.1 above. The term of thePledge shall commence on the date when the Pledge is registered with the AIC and shall expire on the earlier of (a) the date on which alloutstanding Secured Obligations are paid in full or otherwise satisfied (as applicable) or (b) the Pledgee enforces the Pledge pursuant tothe terms and conditions hereof, to satisfy its rights under the Secured Obligations and Pledged Collateral in full or (c) the Pledgorcompletes her transfer of the Equity Interest to another party (individual or legal entity) pursuant to the Option Agreement and no longerholds any equity interest in Shengtuo Hongyuan Information (the “Term of the Pledge”). Equity Interest Pledge Agreement -6- 4.Representations and Warranties of the PledgorEach of the Pledgor hereby makes the following representations and warranties to the Pledgee and confirms that the Pledgee executes thisAgreement in reliance on such representations and warranties: 4.1Each of the Pledgor is the legal owner of the Equity Interest that has been registered in his/her name, and is entitled to create a pledge onsuch Equity Interest. 4.2None of the Pledged Collateral or the Pledge will be interfered with by any other pledgee at any time once the Pledgee exercises therights of the Pledge in accordance with this Agreement. 4.3The Pledgee shall be entitled to dispose or assign the Pledge in accordance with the relevant laws and this Agreement. 4.4All necessary authorizations have been obtained for the execution and performance of this Agreement by each of the Pledgor and theexecution and performance of this Agreement by each of the Pledgor does not violate any applicable laws or regulations. Therepresentative of each of the Pledgor who signs this Agreement is lawfully and effectively authorized. 4.5Each of the Pledgor warrants that there is no on-going civil, administrative or criminal litigation or administrative punishment orarbitration related to the Equity Interest and is not aware of any such action pending or likely to be pending in the future as of the date ofthis Agreement. 4.6There are no outstanding taxes, fees or undecided legal procedures related to the Equity Interest as of the date of this Agreement. 4.7Each stipulation hereunder is the expression of each Party’s true intention and shall be binding upon all the Parties. 5.Covenants of the Pledgor 5.1Each of the Pledgor covenants to the Pledgee that he shall: 5.1.1not transfer or assign the Equity Interest, or create or permit to be created any pledge, lien, charge, mortgage, encumbrance,option, security or other interest in or over the Equity Interest that has been registered in his/her name, other than the Pledgecreated hereunder and the option granted under the Option Agreement, without the prior written consent from the Pledgee; 5.1.2comply with and implement laws and regulations with respect to the pledge of rights, present to the Pledgee the notices, ordersor suggestions with respect to the Pledge issued or made by the competent authority within 5 days upon receiving such notices,orders or suggestions and take actions in accordance with the reasonable instructions of the Pledgee; and 5.1.3timely notify the Pledgee of any events or any received notices (i) which may affect the Equity Interest or any part of thePledgee’s rights, (ii) which may change the Pledgor’ covenants or obligations under this Agreement or (iii) which may affect thePledgor’ performance of their obligations under this Agreement, and take actions in accordance with the reasonable instructionsof the Pledgee. Equity Interest Pledge Agreement -7-  5.2The Pledgor agrees that the Pledgee’s right of exercising the Pledge under this Agreement shall not be suspended or hampered by thePledgor or any successors of the Pledgor or any person authorized by the Pledgor. 5.3The Pledgor jointly and severally covenants to the Pledgee that in order to protect or perfect the security over the Secured Obligations,the Pledgor shall (i) execute in good faith and cause other parties who have interests in the Pledge to execute all the forms, instruments,agreements (including those required for the registration and de-registration of the Pledge with the AIC), and/or (ii) take actions andcause other parties who have interests in the Pledge to take actions as required by the Pledgee and (iii) allow the Pledgee to exercise therights and authorization vested in the Pledgee under this Agreement. 5.4The Pledgor agrees to promptly make or cause to be made any filings or records, give or cause to be given any notices and take or causeto be taken any other actions as may be necessary under the laws of the PRC, to perfect the Pledge of the Pledged Collateral, includingthe AIC registration set forth in Section 3.1. 5.5Each of the Pledgor covenants to the Pledgee that he will comply with and perform all the guarantees, covenants, agreements,representations and conditions for the benefits of the Pledgee. The Pledgor shall compensate for all the losses suffered by the Pledgee forsuch Pledgor’s failure to perform or fully perform his/her guarantees, covenants, agreements, representations or conditions. 6.Events of Default 6.1Each of the following shall constitute an Event of Default: 6.1.1Shengtuo Hongyuan Information or the Pledgor fails to make full and timely payment of any amounts due under the SecuredObligations as required under the Services Agreement, Loan Agreement or Option Agreement, or an event of default (as definedand stipulated in those agreements) has occurred and is continuing; Equity Interest Pledge Agreement -8-  6.1.2the Pledgor makes or has made any inaccurate, incomplete, misleading or untrue representations or warranties under Section 4,or is in violation or breach of any of the representations and warranties under Section 4; 6.1.3the Pledgor breaches any of the covenants under Section 5; 6.1.4the Pledgor breaches any other covenants, undertakings or obligations of the Pledgor set forth herein; 6.1.5the Pledgor is unable to perform its obligations under this Agreement due to the separation or merger of Shengtuo HongyuanInformation with other third parties or for any other reason; 6.1.6the Pledgor relinquishes all or any part of the Pledged Collateral or transfers or assigns all or any part of the Pledged Collateralwithout the prior written consent of the Pledgee (except the transfers or assigns permitted under the Option Agreement); 6.1.7any indebtedness, guarantee or other obligation of the Pledgor, whether pursuant to a contract or otherwise, (i) is accelerated asa result of a default thereunder and is required to be repaid or performed prior to the due date; or (ii) has become due and is notrepaid or performed when due which, in the Pledgee’s reasonable view, has materially adversely affected the Pledgor’s ability toperform their obligations under this Agreement; 6.1.8this Agreement is illegal as a result of any applicable laws or the Pledgor is restricted from continuing to perform his/herobligations under this Agreement; 6.1.9any approval, permit, license or authorization from any applicable governmental entity (or registration or filing procedure)required for Shengtuo Hongyuan Information to provide Internet information service in the PRC is withdrawn, suspended,invalidated or materially amended; 6.1.10any approval, permit, license or authorization from any applicable government authority required to perform this Agreement ormake this Agreement enforceable, legal and valid is withdrawn, suspended, invalidated or materially amended; or 6.1.11any property owned by the Pledgor is altered or damaged which, in the Pledgee’s reasonable view, has materially adverselyaffected the Pledgor’s ability to perform their obligations under this Agreement. Equity Interest Pledge Agreement -9-  6.2The Pledgor shall immediately give a written notice to the Pledgee if the Pledgor is aware or find that any event set forth in Section 6.1 orany events that may result in the foregoing events have occurred or are occurring. 6.3Unless an Event of Default set forth in Section 6.1 has been rectified to the Pledgee’s satisfaction, the Pledgee, at any time the event ofdefault occurs or thereafter, may give a written notice of default to the Pledgor, and require the Pledgor, at the discretion of the Pledgee,to immediately make full payment of the outstanding amounts payable under the Loan Agreements, Services Agreements, and/or OptionAgreements, and other payables, or dispose of the Pledge in accordance with Section 7 herein. 7.Exercise of the Rights of the Pledge 7.1The Pledgor shall not transfer or assign the Pledge without prior written approval from the Pledgee prior to the full settlement andfulfillment of the Secured Obligations. 7.2The Pledgee shall give a notice of default to the Pledgor(s) when the Pledgee exercises the rights of Pledge. 7.3Subject to Section 6.3, the Pledgee may exercise the right to dispose of the Pledge at any time when the Pledgee gives a notice of defaultin accordance with Section 6.3 or thereafter. 7.4The Pledgee is entitled to have priority in receiving payment by the evaluation or proceeds from the auction or sale of whole or part ofthe Pledged Collateral in accordance with legal procedures until the outstanding Secured Obligation or other monetary obligationspayable by the Pledgor and/or Shengtuo Hongyuan Information is fully paid, repaid or otherwise settled. 7.5The Pledgor shall not hinder the Pledgee from disposing the Pledge in accordance with this Agreement and shall give necessaryassistance so that the Pledgee could realize his Pledge. 8.Transfer or Assignment 8.1The Pledgor shall not donate or transfer their rights and obligations herein to any third party without prior written consent from thePledgee. Equity Interest Pledge Agreement -10-  8.2This Agreement shall be binding upon the Pledgor and their successors and be effective to the Pledgee and his each successor andassignee. 8.3The Pledgee may transfer or assign all Secured Obligations and its right to the Pledge to any third party at any time. In this case, theassignee shall enjoy and undertake the same rights and obligations herein of the Pledgee as if the assignee is a party hereto. When thePledgee transfers or assigns the Secured Obligations and its rights to the Pledge, at the request of the Pledgee, the Pledgor shall executethe relevant agreements and/or documents with respect to such transfer or assignment. 8.4After a change to the Pledgee resulting from a transfer or assignment, the new parties to the pledge shall re-execute a pledge contract. 9.TerminationThis Agreement shall not terminate until the Term of the Pledge expires pursuant to Section 3 herein. 10.Force Majeure 10.1If this Agreement is delayed in or prevented from performing in the Event of Force Majeure (“Event of Force Majeure”), only within thelimitation of such delay or prevention, the affected Party is absolved from any liability under this Agreement. Force Majeure, whichincludes acts of governments, acts of nature, fire, explosion, geographic change, flood, earthquake, tide, lightning, war, means anyunforeseen events beyond the prevented Party’s reasonable control and cannot be prevented with reasonable care. However, any shortageof credit, capital or finance shall not be regarded as an event beyond a Party’s reasonable control. The Party affected by Force Majeurewho claims for exemption from performing any obligations under this Agreement or under any Section herein shall notify the other partyof such exemption promptly and advice him of the steps to be taken for completion of the performance. 10.2The Party affected by Force Majeure shall not assume any liability under this Agreement. However, subject to the Party affected by ForceMajeure having taken its reasonable and practicable efforts to perform this Agreement, the Party claiming for exemption of the liabilitiesmay only be exempted from performing such liability as within limitation of the part performance delayed or prevented by ForceMajeure. Once causes for such exemption of liabilities are rectified and remedied, both parties agree to resume performance of thisAgreement with their best efforts. Equity Interest Pledge Agreement -11- 11.Applicable Law and Dispute Resolution 11.1The execution, validity, performance and interpretation of this Agreement shall be governed by and construed in accordance with thelaws of the PRC. 11.2The Parties shall strive to settle any dispute arising from the interpretation or performance through friendly consultation. In case nosettlement can be reached through consultation, each party can submit such matter to China International Economic and TradeArbitration Commission (“CIETAC”) for arbitration. The arbitration shall follow the then current rules of CIETAC, and the arbitrationproceedings shall be conducted in Chinese and shall take place in Beijing. The arbitration award shall be final and binding upon theParties. This article shall not be affected by the termination or elimination of this Agreement. 11.3In case of any disputes arising out of the interpretation and performance of this Agreement or any pending arbitration of such dispute,each Party shall continue to perform their obligations under this Agreement, except for the matters in dispute. 12.NoticeAny notice or correspondence, which is given by the Party as stipulated hereunder, shall be in Chinese and English writing and shall be delivered inperson or by registered or prepaid mail or recognized express service, or be transmitted by telex or facsimile to the following addresses: Pledgee : Beijing Chezhiying Technologies Co., Ltd. Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaFax : 010-59857400Tele : 010-59857002Addressee : Qin ZhiPledgor : Qin ZhiAddress : Room 452, Unit 4, Building 31, Yuetan South Street, Xicheng District, Beijing, ChinaFax : 010-59857400Tele : 010-59857869Addressee : Qin Zhi 13.AppendicesThe appendices to this Agreement constitute an integral part of this Agreement. Equity Interest Pledge Agreement -12- 14.WaiverThe Pledgee’s non-exercise or delay in exercise of any rights, remedies, power or privileges hereunder shall not be deemed as the waiver of suchrights, remedies, power or privileges. Any single or partial exercise of the rights, remedies, power and privileges shall not exclude the Pledgee fromexercising any other rights, remedies, power and privileges. The rights, remedies, power and privileges hereunder are accumulative and shall notexclude the application of any other rights, remedies, power and privileges stipulated by laws. 15.Miscellaneous 15.1Any amendments, modifications or supplements to this Agreement shall be in writing and come into effect upon being executed andsealed by the Parties hereto. 15.2In case any terms and stipulations in this Agreement are regarded as illegal or can not be performed in accordance with the applicablelaw, such terms and stipulations shall be deemed to ineffective and not enforceable within the scope governed by the applicable law, andthe remaining stipulations will remain effective. 15.3This Agreement, the Services Agreement, the Equity Option Agreement, the Loan Agreement and the Power of Attorney from the Pledgorto the Pledgee in favor of the Pledgee shall constitute the entire agreement among the parties in respect of the subject matter hereof andshall supersede any previous discussions, negotiations and agreements related thereto.[The space below is intentionally left blank.] Equity Interest Pledge Agreement -13- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of thedate first written above.PLEDGEE: Beijing Chezhiying Technologies Co., Ltd.(Company Seal: /s/ Beijing Chezhiying TechnologiesCo., Ltd.)By: /s/ Qin ZhiAuthorized Representative:PLEDGOR: Qin ZhiBy: /s/ Qin Zhi Equity Interest Pledge Agreement Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Shareholder List(As of July 8, 2015. Registered Capital is RMB 10,000,000, all of which has been paid in.) No. NameofShareholder ID Card Number Address Contribution(percentage) Form ofContribution PledgeYCYJ001 FanZheng *** Room 302, Unit 2, Building 2, No. 336,Xinshi North Road, Qiaoxi District,Shijiazhuang, Hebei Province, China RMB 5,000,000(50%) currency The contribution of 50,00,000 hasbeen pledged to BeijingChezhiying Technologies Co., Ltdon July 8, 2015.YCYJ002 QinZhi *** Room 452, Unit 4, Building 31, YuetanSouth Street, Xicheng District, Beijing,China RMB 5,000,000(50%) currency The contribution of 5,000,000 hasbeen pledged to BeijingChezhiying Technologies Co., Ltdon July 8, 2015. Beijing Shengtuo Hongyuan Information Technology Co.,Ltd.(seal: /s/ Beijing Shengtuo Hongyuan Information TechnologyCo., Ltd.)Signature : /s/ Qin ZhiName : Qin ZhiTitle : Legal representativeDate : July 8, 2015 Equity Interest Pledge Agreement Exhibit 4.67 Equity Interest Pledge Agreement BetweenBeijing Chezhiying Technologies Co., Ltd.andFan ZhengJuly 8, 2015TABLE OF CONTENTS ARTICLES PAGES 1. DEFINITIONS 4 2. PLEDGE 5 3. EFFECTIVENESS OF PLEDGE, SCOPE AND TERM 6 4. REPRESENTATIONS AND WARRANTIES OF THE PLEDGOR 7 5. COVENANTS OF THE PLEDGOR 7 6. EVENTS OF DEFAULT 8 7. EXERCISE OF THE RIGHTS OF THE PLEDGE 10 8. TRANSFER OR ASSIGNMENT 11 9. TERMINATION 11 10. FORCE MAJEURE 11 11. APPLICABLE LAW AND DISPUTE RESOLUTION 12 12. NOTICE 12 13. APPENDICES 13 14. WAIVER 13 15. MISCELLANEOUS 13 Equity Interest Pledge Agreement - 2 - This Interest Pledge Agreement (this “Agreement”) is entered in Beijing, the People’s Republic of China (“PRC”, excluding the Hong Kong SpecialAdministrative Region, the Macao Special Administrative Region and Taiwan, for the purposes of this Agreement) and dated on July 8, 2015 by and amongthe following parties: (1)PLEDGEE: Beijing Chezhiying Technologies Co., Ltd. , a wholly foreign owned enterprise duly incorporated andvalidly existing under the laws of the PRC, with its registered address at Room1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing100080, China.and (2)PLEDGOR: Fan Zheng, a PRC citizen, holder of identification card number ***, whose residential address is at Room 302, Unit 2, Building 2, No.336, Xinshi North Road, Qiaoxi District, Shijiazhuang, Hebei Province, China.(individually a “Party” and collectively the “Parties”)WHEREAS: A.Pledgor is a PRC citizen, and holds 50 % of the equity interest of Beijing Shengtuo Hongyuan Information Technology Co., Ltd. (“Shengtuo Hongyuan Information”). B.Shengtuo Hongyuan Information is a limited liability company registered in Beijing, which engages in the business of Internet information service. C.The Pledgor and the Pledgee entered into a Loan Agreement on July 8, 2015, pursuant to which the Pledgee extended a loan in the amount of RMB5,000,000 (the “Loan”) to the Pledgor (the “Loan Agreement”). D.The Pledgee, a wholly foreign-owned company registered in Beijing, PRC, and has been licensed by the relevant PRC government authority tocarry on the business of technology-related research and development, transfer of technology, technology training and consulting. The Pledgee andShengtuo Hongyuan Information entered into an Exclusive Technical and Consulting Services Agreement on July 8, 2015, pursuant to whichShengtuo Hongyuan Information is required to pay service fees (the “Service Fees”) to the Pledgee in consideration for the corresponding servicesto be provided by the Pledgee (the “Services Agreement”). E.Simultaneous with the execution of this Agreement, the Pledgor has also entered into an Equity Option Agreement with the Pledgee, pursuant towhich the Pledgor grants to the Pledgee an exclusive right to purchase the Equity Interest (as defined below) at any time upon satisfaction ofvarious requirements under PRC law (the “Option Agreement”). Equity Interest Pledge Agreement -3- F.In order to ensure that (i) the Pledgor repay the Loan under the Loan Agreement; (ii) the Pledgee collects Service Fees under the Services Agreementfrom Shengtuo Hongyuan Information, (iii) the Pledgor’ other obligations under the Option Agreement are fulfilled, and (iv) all other debts,monetary liabilities or other payment obligations owed to the Pledgee by the Pledgor and/or Shengtuo Hongyuan Information, arising under or inrelation to the Services Agreement or the Loan Agreement including, but not limited to, any obligation to pay damages for a breach of anyobligation of the Pledgor or Shengtuo Hongyuan Information under the Loan Agreement or the Services Agreement (as applicable), are paid, thePledgor is willing to pledge all the Equity Interest (as defined below,) i.e. the 50% equity interest of You Che You Jia Advertising, equivalent to acontribution of RMB 5,000,000 to the Pledgee as security for the above-mentioned obligations of the Pledgor and Shengtuo Hongyuan Information(collectively, the “Secured Obligations”).In order to set forth each Party’s rights and obligations, the Pledgee and the Pledgor through mutual negotiations hereby enter into this Agreement basedupon the following terms: 1.DefinitionsUnless otherwise provided in this Agreement, the following terms shall have the following meanings: 1.1“Pledge” means the full content of Section 2 hereunder. 1.2“Equity Interest” means all the equity interests in Shengtuo Hongyuan Information held by the Pledgor (including all present and futurerights and benefits based on such equity interests), and any additional equity interests in Shengtuo Hongyuan Information acquired bysuch Pledgor subsequent to the date hereof. For the avoidance of any doubt, on the date hereof, the Pledgor holds a 50% equity interest(equivalent to a contribution of RMB5,000,000) in Shengtuo Hongyuan Information. 1.3“Event of Default” means any event in accordance with Section 6 hereunder. 1.4“Notice of Default” means the notice of default issued by the Pledgee in accordance with this Agreement. 1.5.“Effective Date” This Agreement shall be effective upon its being signed by the Parties hereunder. Notwithstanding the foregoing, thePledge (as defined in Section 2.1) shall only come into effect in accordance with Section 3 of this Agreement. Equity Interest Pledge Agreement -4- 2.Pledge 2.1Each Pledgor hereby pledges, and if required, transfers and assigns the Equity Interest to the Pledgee as security for all of the SecuredObligations (the “Pledge”) of an amount up to the Maximum Amount (as defined below), and grant a first priority security interest in allrights, titles and interests that he has or may at any time hereafter acquire in and to the Equity Interest, together with all equity or otherownership interests representing a dividend on the Equity Interest, a distribution or return of capital upon or in respect of such EquityInterest, any subscription, first refusal, pre-emptive or other purchase rights with respect to or arising from such Equity Interest, anyvoting rights with respect to such Equity Interest or any other interest in Shengtuo Hongyuan Information which, by reason of notice orlapse of time or the occurrence of other events, may be converted into a direct equity interest in Shengtuo Hongyuan Information, and allproceeds of the foregoing (collectively, the “Pledged Collateral”). 2.1.1The Parties understand and agree that the monetary valuation arising from, relating to or in connection with the SecuredObligations shall be a variable and floating valuation until the Settlement Date (as defined below). Therefore, based on thereasonable assessment and evaluation by the Pledgor and the Pledgee of the Secured Obligations and the Pledged Collateral,the Pledgor and the Pledgee mutually acknowledge and agree that the Pledge shall aggregately secure the Secured Obligationsfor a maximum amount of RMB 500,000,000 (the “Maximum Amount”) prior to the Settlement Date.The Pledgor and the Pledgee may, taking into account the fluctuation in the monetary value of the Secured Obligations and thePledged Collateral, adjust the Maximum Amount based on mutual agreement by amending and supplementing this Agreement,from time to time, prior to the Settlement Date. 2.1.2Upon the occurrence of any of the events below (each an “Event of Settlement”), the Secured Obligations shall be fixed at avalue of the sum of all Secured Obligations that are due, outstanding and payable to the Pledgee on or immediately prior to thedate of such occurrence (the “Fixed Obligations”): (a)any or all of the Loan Agreements, Services Agreements or the Option Agreements expires or is terminatedpursuant to the stipulations thereunder; Equity Interest Pledge Agreement -5-  (b)the occurrence of an Event of Default pursuant to Section 6 that is not resolved, which results in the Pledgeeserving a Notice of Default to the relevant Pledgor(s) pursuant to Section 6.3; (c)the Pledgee reasonably determines (having made due enquiries) that any of the Pledgor and/or ShengtuoHongyuan Information is insolvent or could potentially be made insolvent; or (d)any other event that requires the settlement of the Secured Obligations in accordance with relevant laws of thePRC. 2.2For the avoidance of doubt, the day of the occurrence of an Event of Settlement shall be the settlement date (the “Settlement Date”). Onor after the Settlement Date, the Pledgee shall be entitled, at the election of the Pledgee, to enforce the Pledge in accordance with Section7. 2.3The Pledgee is entitled to collect any and all dividends or other distributions, if any, arising from the Equity Interest during the Term ofthe Pledge (as defined below). 3.Effectiveness of Pledge, Scope and Term 3.1The Pledgor shall, promptly after the execution of this Agreement, but in no event later than 10 days from the date of this Agreement,register this Agreement and the Pledge hereunder with the State Administration for Industry and Commerce of the PRC or its competentlocal counterpart (the “AIC”). The Pledgor shall deliver to the Pledgee a copy of the registration or filing certificate from the AIC within7 days from the date of submission of the application for registration of this Agreement and Pledge with the AIC. 3.2The Pledge shall be effective upon the registration of the Pledge with the AIC in accordance with Section 3.1 above. The term of thePledge shall commence on the date when the Pledge is registered with the AIC and shall expire on the earlier of (a) the date on which alloutstanding Secured Obligations are paid in full or otherwise satisfied (as applicable) or (b) the Pledgee enforces the Pledge pursuant tothe terms and conditions hereof, to satisfy its rights under the Secured Obligations and Pledged Collateral in full or (c) the Pledgorcompletes her transfer of the Equity Interest to another party (individual or legal entity) pursuant to the Option Agreement and no longerholds any equity interest in Shengtuo Hongyuan Information (the “Term of the Pledge”). Equity Interest Pledge Agreement -6- 4.Representations and Warranties of the PledgorEach of the Pledgor hereby makes the following representations and warranties to the Pledgee and confirms that the Pledgee executes thisAgreement in reliance on such representations and warranties: 4.1Each of the Pledgor is the legal owner of the Equity Interest that has been registered in his/her name, and is entitled to create a pledge onsuch Equity Interest. 4.2None of the Pledged Collateral or the Pledge will be interfered with by any other pledgee at any time once the Pledgee exercises therights of the Pledge in accordance with this Agreement. 4.3The Pledgee shall be entitled to dispose or assign the Pledge in accordance with the relevant laws and this Agreement. 4.4All necessary authorizations have been obtained for the execution and performance of this Agreement by each of the Pledgor and theexecution and performance of this Agreement by each of the Pledgor does not violate any applicable laws or regulations. Therepresentative of each of the Pledgor who signs this Agreement is lawfully and effectively authorized. 4.5Each of the Pledgor warrants that there is no on-going civil, administrative or criminal litigation or administrative punishment orarbitration related to the Equity Interest and is not aware of any such action pending or likely to be pending in the future as of the date ofthis Agreement. 4.6There are no outstanding taxes, fees or undecided legal procedures related to the Equity Interest as of the date of this Agreement. 4.7Each stipulation hereunder is the expression of each Party’s true intention and shall be binding upon all the Parties. 5.Covenants of the Pledgor 5.1Each of the Pledgor covenants to the Pledgee that he shall: 5.1.1not transfer or assign the Equity Interest, or create or permit to be created any pledge, lien, charge, mortgage, encumbrance,option, security or other interest in or over the Equity Interest that has been registered in his/her name, other than the Pledgecreated hereunder and the option granted under the Option Agreement, without the prior written consent from the Pledgee; Equity Interest Pledge Agreement -7-  5.1.2comply with and implement laws and regulations with respect to the pledge of rights, present to the Pledgee the notices, ordersor suggestions with respect to the Pledge issued or made by the competent authority within 5 days upon receiving such notices,orders or suggestions and take actions in accordance with the reasonable instructions of the Pledgee; and 5.1.3timely notify the Pledgee of any events or any received notices (i) which may affect the Equity Interest or any part of thePledgee’s rights, (ii) which may change the Pledgor’ covenants or obligations under this Agreement or (iii) which may affect thePledgor’ performance of their obligations under this Agreement, and take actions in accordance with the reasonable instructionsof the Pledgee. 5.2The Pledgor agrees that the Pledgee’s right of exercising the Pledge under this Agreement shall not be suspended or hampered by thePledgor or any successors of the Pledgor or any person authorized by the Pledgor. 5.3The Pledgor jointly and severally covenants to the Pledgee that in order to protect or perfect the security over the Secured Obligations,the Pledgor shall (i) execute in good faith and cause other parties who have interests in the Pledge to execute all the forms, instruments,agreements (including those required for the registration and de-registration of the Pledge with the AIC), and/or (ii) take actions andcause other parties who have interests in the Pledge to take actions as required by the Pledgee and (iii) allow the Pledgee to exercise therights and authorization vested in the Pledgee under this Agreement. 5.4The Pledgor agrees to promptly make or cause to be made any filings or records, give or cause to be given any notices and take or causeto be taken any other actions as may be necessary under the laws of the PRC, to perfect the Pledge of the Pledged Collateral, includingthe AIC registration set forth in Section 3.1. 5.5Each of the Pledgor covenants to the Pledgee that he will comply with and perform all the guarantees, covenants, agreements,representations and conditions for the benefits of the Pledgee. The Pledgor shall compensate for all the losses suffered by the Pledgee forsuch Pledgor’s failure to perform or fully perform his/her guarantees, covenants, agreements, representations or conditions. 6.Events of Default 6.1Each of the following shall constitute an Event of Default: 6.1.1Shengtuo Hongyuan Information or the Pledgor fails to make full and timely payment of any amounts due under the SecuredObligations as required under the Services Agreement, Loan Agreement or Option Agreement, or an event of default (as definedand stipulated in those agreements) has occurred and is continuing; Equity Interest Pledge Agreement -8-  6.1.2the Pledgor makes or has made any inaccurate, incomplete, misleading or untrue representations or warranties under Section 4,or is in violation or breach of any of the representations and warranties under Section 4; 6.1.3the Pledgor breaches any of the covenants under Section 5; 6.1.4the Pledgor breaches any other covenants, undertakings or obligations of the Pledgor set forth herein; 6.1.5the Pledgor is unable to perform its obligations under this Agreement due to the separation or merger of Shengtuo HongyuanInformation with other third parties or for any other reason; 6.1.6the Pledgor relinquishes all or any part of the Pledged Collateral or transfers or assigns all or any part of the Pledged Collateralwithout the prior written consent of the Pledgee (except the transfers or assigns permitted under the Option Agreement); 6.1.7any indebtedness, guarantee or other obligation of the Pledgor, whether pursuant to a contract or otherwise, (i) is accelerated asa result of a default thereunder and is required to be repaid or performed prior to the due date; or (ii) has become due and is notrepaid or performed when due which, in the Pledgee’s reasonable view, has materially adversely affected the Pledgor’s ability toperform their obligations under this Agreement; 6.1.8this Agreement is illegal as a result of any applicable laws or the Pledgor is restricted from continuing to perform his/herobligations under this Agreement; 6.1.9any approval, permit, license or authorization from any applicable governmental entity (or registration or filing procedure)required for Shengtuo Hongyuan Information to provide Internet information service in the PRC is withdrawn, suspended,invalidated or materially amended; 6.1.10any approval, permit, license or authorization from any applicable government authority required to perform this Agreement ormake this Agreement enforceable, legal and valid is withdrawn, suspended, invalidated or materially amended; or 6.1.11any property owned by the Pledgor is altered or damaged which, in the Pledgee’s reasonable view, has materially adverselyaffected the Pledgor’s ability to perform their obligations under this Agreement. Equity Interest Pledge Agreement -9-  6.2The Pledgor shall immediately give a written notice to the Pledgee if the Pledgor is aware or find that any event set forth in Section 6.1 orany events that may result in the foregoing events have occurred or are occurring. 6.3Unless an Event of Default set forth in Section 6.1 has been rectified to the Pledgee’s satisfaction, the Pledgee, at any time the event ofdefault occurs or thereafter, may give a written notice of default to the Pledgor, and require the Pledgor, at the discretion of the Pledgee,to immediately make full payment of the outstanding amounts payable under the Loan Agreements, Services Agreements, and/or OptionAgreements, and other payables, or dispose of the Pledge in accordance with Section 7 herein. 7.Exercise of the Rights of the Pledge 7.1The Pledgor shall not transfer or assign the Pledge without prior written approval from the Pledgee prior to the full settlement andfulfillment of the Secured Obligations. 7.2The Pledgee shall give a notice of default to the Pledgor(s) when the Pledgee exercises the rights of Pledge. 7.3Subject to Section 6.3, the Pledgee may exercise the right to dispose of the Pledge at any time when the Pledgee gives a notice of defaultin accordance with Section 6.3 or thereafter. 7.4The Pledgee is entitled to have priority in receiving payment by the evaluation or proceeds from the auction or sale of whole or part ofthe Pledged Collateral in accordance with legal procedures until the outstanding Secured Obligation or other monetary obligationspayable by the Pledgor and/or Shengtuo Hongyuan Information is fully paid, repaid or otherwise settled. 7.5The Pledgor shall not hinder the Pledgee from disposing the Pledge in accordance with this Agreement and shall give necessaryassistance so that the Pledgee could realize his Pledge. Equity Interest Pledge Agreement -10- 8.Transfer or Assignment 8.1The Pledgor shall not donate or transfer their rights and obligations herein to any third party without prior written consent from thePledgee. 8.2This Agreement shall be binding upon the Pledgor and their successors and be effective to the Pledgee and his each successor andassignee. 8.3The Pledgee may transfer or assign all Secured Obligations and its right to the Pledge to any third party at any time. In this case, theassignee shall enjoy and undertake the same rights and obligations herein of the Pledgee as if the assignee is a party hereto. When thePledgee transfers or assigns the Secured Obligations and its rights to the Pledge, at the request of the Pledgee, the Pledgor shall executethe relevant agreements and/or documents with respect to such transfer or assignment. 8.4After a change to the Pledgee resulting from a transfer or assignment, the new parties to the pledge shall re-execute a pledge contract. 9.TerminationThis Agreement shall not terminate until the Term of the Pledge expires pursuant to Section 3 herein. 10.Force Majeure 10.1If this Agreement is delayed in or prevented from performing in the Event of Force Majeure (“Event of Force Majeure”), only within thelimitation of such delay or prevention, the affected Party is absolved from any liability under this Agreement. Force Majeure, whichincludes acts of governments, acts of nature, fire, explosion, geographic change, flood, earthquake, tide, lightning, war, means anyunforeseen events beyond the prevented Party’s reasonable control and cannot be prevented with reasonable care. However, any shortageof credit, capital or finance shall not be regarded as an event beyond a Party’s reasonable control. The Party affected by Force Majeurewho claims for exemption from performing any obligations under this Agreement or under any Section herein shall notify the other partyof such exemption promptly and advice him of the steps to be taken for completion of the performance. 10.2The Party affected by Force Majeure shall not assume any liability under this Agreement. However, subject to the Party affected by ForceMajeure having taken its reasonable and practicable efforts to perform this Agreement, the Party claiming for exemption of the liabilitiesmay only be exempted from performing such liability as within limitation of the part performance delayed or prevented by ForceMajeure. Once causes for such exemption of liabilities are rectified and remedied, both parties agree to resume performance of thisAgreement with their best efforts. Equity Interest Pledge Agreement -11- 11.Applicable Law and Dispute Resolution 11.1The execution, validity, performance and interpretation of this Agreement shall be governed by and construed in accordance with thelaws of the PRC. 11.2The Parties shall strive to settle any dispute arising from the interpretation or performance through friendly consultation. In case nosettlement can be reached through consultation, each party can submit such matter to China International Economic and TradeArbitration Commission (“CIETAC”) for arbitration. The arbitration shall follow the then current rules of CIETAC, and the arbitrationproceedings shall be conducted in Chinese and shall take place in Beijing. The arbitration award shall be final and binding upon theParties. This article shall not be affected by the termination or elimination of this Agreement. 11.3In case of any disputes arising out of the interpretation and performance of this Agreement or any pending arbitration of such dispute,each Party shall continue to perform their obligations under this Agreement, except for the matters in dispute. 12.NoticeAny notice or correspondence, which is given by the Party as stipulated hereunder, shall be in Chinese and English writing and shall be delivered inperson or by registered or prepaid mail or recognized express service, or be transmitted by telex or facsimile to the following addresses: Pledgee : Beijing Chezhiying Technologies Co., Ltd. Address : 1117, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaFax : 010-59857400Tele : 010-59857002Addressee : Qin ZhiPledgor : Fan ZhengAddress : Room 302, Unit 2, Building 2, No. 336, Xinshi North Road, Qiaoxi District, Shijiazhuang, Hebei Province, ChinaFax : 010-59857400Tele : 010-59857899Addressee : Fan Zheng Equity Interest Pledge Agreement -12- 13.AppendicesThe appendices to this Agreement constitute an integral part of this Agreement. 14.WaiverThe Pledgee’s non-exercise or delay in exercise of any rights, remedies, power or privileges hereunder shall not be deemed as the waiver of suchrights, remedies, power or privileges. Any single or partial exercise of the rights, remedies, power and privileges shall not exclude the Pledgee fromexercising any other rights, remedies, power and privileges. The rights, remedies, power and privileges hereunder are accumulative and shall notexclude the application of any other rights, remedies, power and privileges stipulated by laws. 15.Miscellaneous 15.1Any amendments, modifications or supplements to this Agreement shall be in writing and come into effect upon being executed and sealedby the Parties hereto. 15.2In case any terms and stipulations in this Agreement are regarded as illegal or can not be performed in accordance with the applicable law,such terms and stipulations shall be deemed to ineffective and not enforceable within the scope governed by the applicable law, and theremaining stipulations will remain effective. 15.3This Agreement, the Services Agreement, the Equity Option Agreement, the Loan Agreement and the Power of Attorney from the Pledgor tothe Pledgee in favor of the Pledgee shall constitute the entire agreement among the parties in respect of the subject matter hereof and shallsupersede any previous discussions, negotiations and agreements related thereto.[The space below is intentionally left blank.] Equity Interest Pledge Agreement -13- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of thedate first written above.PLEDGEE: Beijing Chezhiying Technologies Co., Ltd.(Company Seal: /s/ Beijing Chezhiying TechnologiesCo., Ltd.)By: /s/ Qin ZhiAuthorized Representative:PLEDGOR: Fan ZhengBy: /s/ Fan Zheng Equity Interest Pledge Agreement Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Shareholder List(As of July 8, 2015. Registered Capital is RMB 10,000,000, all of which has been paid in.) No. NameofShareholder ID Card Number Address Contribution(percentage) Form ofContribution PledgeYCYJ001 FanZheng *** Room 302, Unit 2, Building 2, No. 336,Xinshi North Road, Qiaoxi District,Shijiazhuang, Hebei Province, China RMB 5,000,000(50%) currency The contribution of 50,00,000 hasbeen pledged to BeijingChezhiying Technologies Co., Ltdon July 8, 2015.YCYJ002 QinZhi *** Room 452, Unit 4, Building 31, YuetanSouth Street, Xicheng District, Beijing,China RMB 5,000,000(50%) currency The contribution of 5,000,000 hasbeen pledged to BeijingChezhiying Technologies Co., Ltdon July 8, 2015. Beijing Shengtuo Hongyuan Information Technology Co.,Ltd.(seal: /s/ Beijing Shengtuo Hongyuan Information TechnologyCo., Ltd.)Signature : /s/ Qin ZhiName : Qin ZhiTitle : Legal representativeDate : July 8, 2015 Equity Interest Pledge Agreement Exhibit 4.68Dated this: July 8, 2015POWER OF ATTORNEYWe, Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing under thePRC laws with its legal address at Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (PRC) with PRC CompanyRegistered Number 91110108563619210K, hereby authorizes any individual appointed in writing by Beijing Chezhiying Technology Co., Ltd. , its successors or any of its designated entities (Authorizee) to singly exercise the following powers and rights during the term ofthis Power of Attorney (POA):We hereby assigns the Authorizee the right to vote on its behalf at the shareholders’ meetings of Beijing Autohome Used Car Appraisal Co., Ltd. , Company) and to exercise full voting rights as the shareholder of the Company as granted to us by law and under theArticles of Association of the Company, such voting rights including but not limited to the right to sell or transfer any or all of our equity of interest of theCompany. Further, as our authorized representative at the shareholders’ meeting of the Company, we hereby assigns the Authorizee the right to designate andappoint the directors and management personnel of Autohome Used Car Appraisal.In exercising the rights and powers provided hereunder, the Authorizee shall act with due care and diligence and pursuant to this POA and applicable laws.This POA shall become valid, binding and enforceable upon the execution hereof.Beijing Shengtuo Hongyuan Information Technology Co., Ltd. By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ BeijingShengtuoHongyuan Information Technology Co., Ltd.Exhibit 4.69Dated this: July 8, 2015POWER OF ATTORNEYWe, Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing under thePRC laws with its legal address at Room 1005, 10th floor, Tower B, No. 3, Danling Street, Haidian District, Beijing, China (PRC) with PRC CompanyRegistered Number 91110108563619210K, hereby authorize any individual appointed in writing by Beijing Chezhiying Technology Co., Ltd. , its successors or any of its designated entities (Authorizee) to singly exercise the following powers and rights during the term ofthis restated Power of Attorney (POA):We hereby assign the Authorizee the right to vote on our behalf at the shareholder’s meetings of Beijing Autohome Used Car Brokerage Co., Ltd , Company) and to exercise full voting rights as the shareholder of the Company as granted to us by law and under theArticles of Association of the Company, such voting rights including but not limited to the right to sell or transfer any or all of our equity of interest of theCompany. Further, as our authorized representative at the shareholders’ meeting of the Company, we hereby assign the Authorizee the right to designate andappoint the directors and management personnel of the Company.In exercising the rights and powers provided hereunder, the Authorizee shall act with due care and diligence and pursuant to this POA and applicable laws.This POA shall become valid, binding and enforceable upon the execution hereof. Beijing Shengtuo Hongyuan Information Technology Co.,Ltd.By: /s/ Qin Zhi Name: Qin Zhi Title: Legal Representative Company seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Exhibit 4.70Dated this: July 8, 2015POWER OF ATTORNEYI, Qin Zhi, a citizen of the People’s Republic of China (PRC) with PRC ID number ***, hereby authorize any individual appointed in writing by BeijingChezhiying Technologies Co., Ltd. , its successors or any of its designated entities (Authorizee) to singly exercise thefollowing powers and rights during the term of this restated Power of Attorney (POA):I hereby assign the Authorizee the right to vote on my behalf at the shareholders’ meetings of Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , Company) and to exercise full voting rights as the shareholder of the Company as granted to me by law and under theArticles of Association of the Company, such voting rights including but not limited to the right to sell or transfer any or all of my equity of interest of theCompany. Further, as my authorized representative at the shareholders’ meeting of the Company, I hereby assign the Authorizee the right to designate andappoint the directors and management personnel of the Company.In exercising the rights and powers provided hereunder, the Authorizee shall act with due care and diligence and pursuant to this POA and applicable laws.This POA shall become valid, binding and enforceable upon the execution hereof. /s/ Qin Zhi(Signature)Qin ZhiExhibit 4.71Dated this: July 8, 2015POWER OF ATTORNEYI, Fan Zheng , a citizen of the People’s Republic of China (PRC) with PRC ID number ***, hereby authorize any individual appointed in writing by BeijingChezhiying Technologies Co., Ltd. , its successors or any of its designated entities (Authorizee) to singly exercise thefollowing powers and rights during the term of this restated Power of Attorney (POA):I hereby assign the Authorizee the right to vote on my behalf at the shareholders’ meetings of Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , Company) and to exercise full voting rights as the shareholder of the Company as granted to me by law and under theArticles of Association of the Company, such voting rights including but not limited to the right to sell or transfer any or all of my equity of interest of theCompany. Further, as my authorized representative at the shareholders’ meeting of the Company, I hereby assign the Authorizee the right to designate andappoint the directors and management personnel of the Company.In exercising the rights and powers provided hereunder, the Authorizee shall act with due care and diligence and pursuant to this POA and applicable laws.This POA shall become valid, binding and enforceable upon the execution hereof. /s/ Fan Zheng(Signature)Fan ZhengExhibit 4.72 Loan Agreement BetweenBeijing Chezhiying Technologies Co., Ltd.andQin ZhiJuly 8, 2015TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 3 2. LOAN 4 3. CONDITIONS PRECEDENT 6 4. REPRESENTATIONS AND WARRANTIES 6 5. UNDERTAKINGS 7 6. DEFAULT 10 7. CONFIDENTIALITY 11 8. DISPUTE RESOLUTION 11 9. INDEMNITY 12 10. MISCELLANEOUS 12 Loan Agreement - 2 - THIS LOAN AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC)by and between (1)Beijing Chezhiying Technologies Co., Ltd. , a wholly foreign owned enterprise duly incorporated and validlyexisting under the law of the PRC, with its registered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080,China (Party A);and (2)Qin Zhi, a PRC citizen, holder of identification card number ***, whose residential address is at Room 452, Unit 4, Building 31, Yuetan SouthStreet, Xicheng District, Beijing, China (Party B).Recitals A.Party B has agreed to purchase a 50% equity interests (“Equity Interests”) in Beijing Shengtuo Hongyuan Information Technology Co., Ltd. (Company) from its current shareholder; B.Party A has provided Party B with a loan in the amount of RMB5,000,000 (Loan) to be used for the purposes of obtaining the Equity Interest inaccordance with the terms and conditions of this Agreement.NOW, THEREFORE, the parties agree as follows:1. DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: Designated Party means a third party as designated by Party A;Event of Default means an event as described in Article 2.3;Equity OptionAgreement means the Equity Option Agreement to be entered into by and among Party A, Party B and the Company dated on July8, 2015;Equity Pledge Agreement means the Equity Interest Pledge Agreement to be entered into by and between Party A, Party B dated on July 8, 2015;Power of Attorney means an irrevocable Power of Attorney issued by Party B conferring all his rights as a shareholder of the Company toParty A or the Designated Party dated on July 8, 2015; andRepayment Notice means a written notice from Party A to Party B for purposes of the repayment of the Loan. Loan Agreement - 3 - 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. Any reference toan Article is to an article of this Agreement. The use of the plural shall include the use of the singular, and vice versa. Unless otherwise indicated, areference to a day, month or year is to a calendar day, month or year. The use of the masculine shall include the use of the feminine, and vice versa.2. LOAN 2.1Amount. Party A has provided to Party B, and Party B has received from Party A, the Loan. The Loan shall be interest free. 2.2Term. The term of the Loan shall continue indefinitely until such time as Party B receives a Repayment Notice and fully repays the Loan, or anEvent of Default occurs unless Party A has sent a notice indicating otherwise within 15 calendar days after it is aware of such event. 2.3Event of Default. For purposes of this Agreement, an Event of Default is deemed to have occurred if any of the following were to apply to Party B: 2.3.1a proceeding is commenced against him under any applicable bankruptcy, insolvency, reorganization, court mediation, or other similarlaw; 2.3.2he makes or attempts to make any fraudulent use or any unauthorized transfer of the Loan or the Equity Interests; 2.3.3he dies or his capacity to perform civil acts is lost or limited; 2.3.4he is charged with a criminal offense; 2.3.5any third party institutes a court action against him claiming over RMB 50,000; 2.3.6Party B breaches any of its covenants or other obligations under this Agreement, and such breach has not been remedied within 15calendar days after receiving Party A’s written notice requiring remedy; Loan Agreement - 4 -  2.3.7the representations and warranties made by Party B prove to be false or misleading in any material respect; 2.3.8any indebtedness, guarantee or other obligation of Party B, whether pursuant to a contract or otherwise, (i) is accelerated as a result of adefault thereunder and is required to be repaid or performed prior to the scheduled date; or (ii) has become due and is not repaid orperformed as scheduled and thereby causes Party A to regard Party B’s capacity to perform the obligations specified herein as havingbeen adversely affected; 2.3.9Party B is incapable of repaying his debts as they become due; 2.3.10the Agreement is illegal as a result of any applicable laws or Party B is restricted from continuing to perform its obligations as specifiedherein; 2.3.11any approval, permits, licenses or authorization from any applicable governmental entity (and registration or filing procedure) requiredfor the Company to provide value added telecommunications services in respect of its information services business via the Internet inthe PRC are withdrawn, suspended, invalidated or materially amended; 2.3.12any approval, permits, licenses or authorization from any applicable government authority required to perform this Agreement or makethis Agreement enforceable, legal and valid are withdrawn, suspended, invalidated or materially amended; 2.3.13any property owned by Party B is altered or damaged and thereby causes Party A to deem that the capability of Party B to perform theobligations stated herein have been adversely affected; or 2.3.14Party B defaults under either of the Equity Pledge Agreement or the Equity Option Agreement. 2.4Repayment Date. Unless otherwise agreed by Party A in writing, the Loan borrowed by Party B, any portion of the Loan and any other payment inarrears, if applicable, under this Agreement shall become due and payable five Business Days after Party A gives written notice to Party Bdemanding repayment in accordance with Article 6.1 (Repayment Date)Without Party A’s express prior written consent, the Loan shall not be repaid and shall continue indefinitely until the Repayment Date. 2.5Form of Repayment. Unless agreed by the parties in writing, the Loan may only be repaid in the form specified in Article 6. 2.6Purpose of Loan. Party B has accepted the Loan provided by Party A and hereby agrees and covenants that the Loan shall be used only tocontribute to the registered capital of the Company. Without Party A’s prior written consent, Party B shall not use the Loan for any other purpose, orsell, assign, transfer, pledge or otherwise dispose of any legal rights or benefits in connection with, or create any security interest over, the EquityInterest to any third party. Loan Agreement - 5 - 3. CONDITIONS PRECEDENTDrawdown of the Loan by Party B shall, unless specifically waived by Party A in writing, be conditional upon the fulfillment of all of the followingconditions precedent: 3.1Representations and Warranties. All the representations and warranties provided by Party B in Article 4.2 are true, complete and correct, and shallremain true, complete and correct on the date of such drawdown, as if they are provided on such date. 3.2No Breach. Party B shall not have breached any of his undertakings provided in Article 5, and no event which may affect the performance of PartyB’s obligations hereunder shall have occurred or be likely to occur.4. REPRESENTATIONS AND WARRANTIES 4.1Party A’s Representations and Warranties. Party A represents and warrants as follows: 4.1.1it is a company incorporated and validly existing under the laws of PRC; 4.1.2it has the power to enter into and perform this Agreement, and its execution and performance of this Agreement is in compliance with thebusiness scope of Party A and the provisions of its articles of association or other constituent documents; 4.1.3the execution and performance of this Agreement by it will not result in a breach of any laws, regulations, authorizations, or agreement towhich it is subject; and 4.1.4this Agreement shall constitute its legal, valid, and binding obligations, and is to be enforceable against it. 4.2Party B’s Representations and Warranties. Party B represents and warrants as follows: 4.2.1he has and shall maintain the full power and authority to enter into this Agreement and to perform his obligations hereunder; 4.2.2the execution and performance of this Agreement by himself will not result in a breach of any laws, regulations, authorizations, oragreement to which he is subject; Loan Agreement - 6 -  4.2.3this Agreement shall constitute his legal, valid, and binding obligations, and is to be enforceable against himself; 4.2.4there are no civil, criminal or administrative, claims, actions, suits, investigations or proceedings pending or threatened against himwhich, based on his knowledge, would materially and adversely affect this Agreement and the performance thereof; 4.2.5there is no provision of any agreement, enforceable judgment or order of any court binding on him or affecting his property, which wouldin any way prevent or materially adversely affect his execution or performance of this Agreement; 4.2.6the execution and performance of this Agreement and the realization of Party A’s rights hereunder will not violate any mortgage right,contract, judgment, decree or law that is binding upon him or his assets; 4.2.7with the exception of the Equity Pledge Agreement, the Equity Option Agreement and the Power of Attorney, he has not: (a) created anypledge, charge or any other security over any of the Equity Interests; (b) offered to transfer any of the Equity Interests to any third party;(c) issued an undertaking to any third party regarding any offer to purchase any of the Equity Interests; or (d) entered into any agreementto transfer any of the Equity Interests to any third party; and 4.2.8no dispute, action, arbitration, administrative procedure or other legal proceeding (potential or actual) regarding himself and/or any ofthe Equity Interests in existence or pending.5. UNDERTAKINGS 5.1Party B’s Undertakings relating to the Company. Party B undertakes to vote his total interest in the Company and to take all other necessaryactions to ensure that the Company: 5.1.1will obtain or complete all the necessary governmental approvals, authorizations, licenses, registrations and filing procedures to own itsassets and to engage in the businesses specified in the operational scope of its business license; 5.1.2will not supplement, change, or modify in any way its articles of association or other constituent documents, increase or reduce itsregistered capital, or alter its shareholding structure without the prior written consent of Party A; Loan Agreement - 7 -  5.1.3will not sell, transfer, mortgage, pledge, grant any option rights or otherwise dispose of any asset, business or legal or beneficial interest,or permit the creation of any other security interest over the same without the prior written consent of Party A; 5.1.4will not incur, inherit, warrant or permit the existence of any Loan without the prior written consent of Party A; 5.1.5will not enter into any contracts or extend any loan or credit to any party or provide any guarantee or assume any obligation of any partywithout the prior written consent of Party A; 5.1.6will provide all information relating to its operations and financial affairs to Party A upon the request of Party A; 5.1.7will not merge, consolidate with any third party, or acquire or invest in any third party, without the prior written consent of Party A; 5.1.8will notify Party A immediately should any legal action, arbitration or administrative procedure relating to its assets, operations orincome arises or is likely to arise; 5.1.9will execute all necessary or appropriate agreements, take all necessary or appropriate actions and make all necessary or appropriatedefenses for the purpose of maintaining all rights and proprietary interests in respect of its assets; 5.1.10will not pay dividends or distributions of any kind to its shareholders without the prior written consent of Party A; 5.1.11will strictly observe all of the provisions under this Agreement, the Equity Pledge Agreement, the Equity Option Agreement and thePower of Attorney and shall not cause any act or omission to take place which may impair the validity and enforceability of thosedocuments; and 5.1.12will promptly notify Party A in writing of the occurrence of any event which may materially affect its assets, obligations, rights oroperations. Loan Agreement - 8 - 5.2Undertakings of Party B. Party B further undertakes as follows: 5.2.1he will not sell, transfer, mortgage, pledge, grant any option rights or otherwise dispose of any of the Equity Interests, or permit thecreation of any other security interest in the Company without the prior written consent of Party A; 5.2.2he will ensure that the shareholders’ meeting of the Company shall not approve any sale, transfer, pledge or other disposal of the EquityInterests, or permit the creation of any other security interest over the same without the prior written consent of Party A; 5.2.3he will ensure that the shareholders’ meeting of the Company shall decide on any matter only with the prior written instruction of PartyA; 5.2.4he will notify Party A immediately if and when any legal action, arbitration, or administrative procedure relating to the Equity Interestsarises or is likely to arise; 5.2.5he will enter into all necessary or appropriate agreements, take all necessary or appropriate actions, file all necessary or appropriate andmake all necessary or appropriate defenses for the purpose of maintaining ownership of the Equity Interests at the instruction of Party A; 5.2.6he will not cause any actions and/or omissions which may materially and adversely affect the assets, operations or liability of theCompany without the prior written consent of Party A; 5.2.7he will, upon the request of Party A, appoint any person nominated by Party A as a director of the Company; 5.2.8in the event that the Party A or the Designated Party purchases the Equity Interests pursuant to the Equity Option Agreement, he shallapply the proceeds therefrom to repay the Loan to Party A; 5.2.9he will promptly notify Party A in writing of the occurrence of any event which may materially affect his assets, obligations, rights oroperations; 5.2.10he shall issue the Power of Attorney simultaneously when entering into this Agreement; 5.2.11the Equity Option Agreement shall be validly executed, pursuant to which Party B shall grant Party A or the Designated Party with anexclusive option to purchase the Equity Interests, to the extent permitted under PRC law; Loan Agreement - 9 -  5.2.12the Equity Pledge Agreement, the Equity Option Agreement, and the Power of Attorney shall be in full effect and free of default, and allrelevant filing or registrations procedures, approvals, and governmental proceedings shall have been obtained or completed; 5.2.13he will strictly observe all the provisions and perform all of his obligations under this Agreement, the Equity Pledge Agreement and theEquity Option Agreement, causing no actions nor failing to take any actions that may impair the validity or enforceability of thisAgreement, the Equity Pledge Agreement or the Equity Option Agreement; 5.2.14he shall maintain as strictly confidential the existence and provisions of this Agreement, as well as any correspondence, resolutions,ancillary agreements and any other documentation associated herewith; and 5.2.15he will not be entitled to any dividend or profit distribution of the Company and will not request or receive any of the same without theprior written consent of Party A. If such dividends or other distributions are distributed to him from the Company, he will immediatelyand unconditionally pay or transfer to Party A any such dividends or other distributions in whatsoever form obtained from the Companyas a shareholder of the Company at the time such payables arise, after having deducted and paid any and all relevant taxes and expensesapplicable as a result of his receipt of such dividends or other distributions.6. ENFORCEMENT 6.1Repayment of Loan. 6.1.1Upon the occurrence of either an Event of Default or a decision by Party A, in its sole discretion, to demand repayment of the Loan or anyportion of the Loan, Party A may at its discretion issue a notice (Repayment Notice) to Party B requiring repayment of the Loan or anyportion of the Loan and any other payment in arrears under this Agreement. 6.1.2Party B shall repay the Loan by transferring the Equity Interest to Party A or the Designated Party, as directed by Party A, by signing anddelivering an agreement for the transfer of the Equity Interest satisfactory to the Party A from the form to the substance. 6.1.3If Party B fails to comply with its repayment obligations under this Agreement, late payment interest shall be assessed at the rate of 0.3%per day upon the outstanding amount of the Loan and shall be payable from the Repayment Date until the date on which the totalamount of the overdue loan, overdue interest and other monies payable to Party A are fully settled. 6.2Notification. Party B shall immediately notify Party A in writing of the occurrence of any event set forth in Article 2.3 or any circumstance whichmay lead to the occurrence of any such event as soon as Party B knows or is aware of such event or circumstance. Loan Agreement - 10 - 7. CONFIDENTIALITY 7.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all information relating to or arisen from this Agreement,or made available under this Agreement to a party or any associate thereof (Confidential Information). Without the prior written consent of theother party, no party shall disclose any Confidential Information to any third party unless the disclosure is required by law or by enforceable ordersof the court or related government departments. Under such circumstances, the party required to disclose the Confidential Information shall notifythe other party immediately, take all possible measures to minimize the disclosure, and notify the persons to whom information is being disclosed ofthe confidentiality obligation. Notwithstanding anything to the contrary above, Party A shall have the full right to disclose any ConfidentialInformation to its shareholders, affiliates or professional advisors. 7.2Obligations upon Termination. Upon termination of this Agreement, either party shall, at the request of the other party, return any document,material, database, equipment, or software containing the Confidential Information to the other party. If, for any reason, such document, material,database, equipment, or software cannot be returned, either party shall destroy all the Confidential Information belonging to the other party anddelete such Confidential Information from any memory devices. No party shall be permitted to continue using the Confidential Information in anyway after the termination of this Agreement. 7.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive the termination ofthis Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of this Agreement by any party.8. DISPUTE RESOLUTION 8.1Governing Law. This Agreement shall be governed by the laws of the PRC. 8.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolve suchdispute through friendly consultation or mediation. 8.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the China InternationalEconomic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with the CIETAC’s rules in effectat the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitration shall be English. The tribunal shallconsist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost of arbitration shall be allocated as determined by thearbitrators. Loan Agreement - 11 - 9. INDEMNITYParty A agrees to indemnify and hold harmless Party B for any damages, fines or penalties solely incurred in his capacity as a shareholder or any otherpositions (including, without limitation, those of legal representative and director) directly as a result of the establishment of the Company and the operationof the Company’s business in contravention of PRC law; provided, however, that in no instance will Party A provide such indemnification if Party B hasengaged in fraud or willful misconduct or has breached or is in breach of this Agreement.10. MISCELLANEOUS 10.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail ortelecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given or made shall beconfirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given or made; (b) for noticesdelivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) or the 4th day of the delivery dateto an internationally certified delivery institution shall be deemed as having been duly given or made; and (c) for notices by telecopy, the receiptdate showed on the delivery confirming paper of the relevant document shall be deemed as having been duly given or made. Party A : Beijing Chezhiying Technologies Co., Ltd.Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857001Attn : Qin ZhiParty B Qin ZhiAddress : Room 452, Unit 4, Building 31, Yuetan South Street, Xicheng District, Beijing, ChinaTel : +86 13511021165Attn : Qin Zhi Loan Agreement - 12 - 10.2Entire Agreement. This Agreement, the Exclusive Technical Consulting and Services Agreement, the Equity Pledge Agreement, the Equity OptionAgreement, and the Power of Attorney from Party B to Party A in favor of Party A shall constitute the entire agreement among the parties in respectof the subject matter hereof and shall supersede any previous discussions, negotiations and agreements related thereto. 10.3Amendment. Without the prior written consent of Party A, Party B shall not amend this Agreement. If required by law, the parties shall obtain allrequisite approvals from the relevant authorities to give effect to the amendment. 10.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of either party to exercise any right, authority orprivilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shall any single or partialexercise of any right, authority or privilege preclude any other future exercise thereof. 10.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall not affect thevalidity or enforceability of any other provision of this agreement. 10.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 10.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designated parties (naturalperson or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake the same rights and obligations hereinof Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assigns the rights and obligations under this Agreement, atthe request of Party A, Party B shall execute the relevant agreements and/or documents with respect to such transfer or assignment. Party B shall notassign any of its rights or obligations hereunder without the prior written consent of the Party A. 10.8Effectiveness: This Agreement shall be effective upon its signing by all the parties or their respective authorized representative and shall be deemedterminated as of the date when the Loan has been repaid in full. 10.9Language and Counterparts. This Agreement is prepared in 2 sets of originals in English. Each party shall hold 1 set.[The space below has been intentionally left blank.] Loan Agreement - 13 - IN WITNESS WHEREOF, each of the parties hereto has duly executed or has caused this Agreement to be duly executed in its name and on its behalf bythe officer or representative duly authorized, on the day and year first above written.Party A: Beijing Chezhiying Technologies Co., Ltd.By: /s/ Qin ZhiName: Title: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technologies Co., Ltd.Party B: Qin ZhiBy: /s/ Qin ZhiName: Qin Zhi Loan Agreement Exhibit 4.73 Loan Agreement BetweenBeijing Chezhiying Technologies Co., Ltd.andFan ZhengJuly 8, 2015TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 3 2. LOAN 4 3. CONDITIONS PRECEDENT 6 4. REPRESENTATIONS AND WARRANTIES 6 5. UNDERTAKINGS 7 6. DEFAULT 10 7. CONFIDENTIALITY 11 8. DISPUTE RESOLUTION 11 9. INDEMNITY 12 10. MISCELLANEOUS 12 Loan Agreement - 2 - THIS LOAN AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC)by and between (1)Beijing Chezhiying Technologies Co., Ltd. , a wholly foreign owned enterprise duly incorporated and validlyexisting under the law of the PRC, with its registered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080,China (Party A);and (2)Fan Zheng, a PRC citizen, holder of identification card number ***, whose residential address is at Room 302, Unit 2, Building 2, No. 336, XinshiNorth Road, Qiaoxi District, Shijiazhuang, Hebei Province, China (Party B).Recitals A.Party B agreed to purchase 50% equity interests of Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , Company) from its current shareholder,; B.Party A has provided Party B with a loan to be used for the purposes of obtaining 50% equity interests of the Company (“Equity Interests”)inaccordance with this Agreement. In accordance with the terms and conditions of this Agreement, Party A agrees to provide an interest-free loan inthe amount of RMB 5,000,000 (Loan).NOW, THEREFORE, the parties agree as follows:1. DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: Designated Party means a third party as designated by Party A;Event of Default means an event as described in Article 2.3;Equity OptionAgreement means the Equity Option Agreement to be entered into by and among Party A, Party B and the Company dated on July8, 2015; Loan Agreement - 3 - Equity Pledge Agreement means the Equity Interest Pledge Agreement to be entered into by and between Party A, Party B dated on July 8, 2015;Power of Attorney means an irrevocable Power of Attorney issued by Party B conferring all his rights as a shareholder of the Company toParty A or the Designated Party dated on July 8, 2015; andRepayment Notice means a written notice from Party A to Party B for purposes of the repayment of the Loan. 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. Any reference toan Article is to an article of this Agreement. The use of the plural shall include the use of the singular, and vice versa. Unless otherwise indicated, areference to a day, month or year is to a calendar day, month or year. The use of the masculine shall include the use of the feminine, and vice versa.2. LOAN 2.1Amount. Party A has provided to Party B, and Party B has received from Party A, the Loan. The Loan shall be interest free. 2.2Term. The term of the Loan shall continue indefinitely until such time as Party B receives a Repayment Notice and fully repays the Loan, or anEvent of Default occurs unless Party A has sent a notice indicating otherwise within 15 calendar days after it is aware of such event. 2.3Event of Default. For purposes of this Agreement, an Event of Default is deemed to have occurred if any of the following were to apply to Party B: 2.3.1a proceeding is commenced against him under any applicable bankruptcy, insolvency, reorganization, court mediation, or other similarlaw; 2.3.2he makes or attempts to make any fraudulent use or any unauthorized transfer of the Loan or the Equity Interests; 2.3.3he dies or his capacity to perform civil acts is lost or limited; 2.3.4he is charged with a criminal offense; 2.3.5any third party institutes a court action against him claiming over RMB 50,000; Loan Agreement - 4 -  2.3.6Party B breaches any of its covenants or other obligations under this Agreement, and such breach has not been remedied within 15calendar days after receiving Party A’s written notice requiring remedy; 2.3.7the representations and warranties made by Party B prove to be false or misleading in any material respect; 2.3.8any indebtedness, guarantee or other obligation of Party B, whether pursuant to a contract or otherwise, (i) is accelerated as a result of adefault thereunder and is required to be repaid or performed prior to the scheduled date; or (ii) has become due and is not repaid orperformed as scheduled and thereby causes Party A to regard Party B’s capacity to perform the obligations specified herein as havingbeen adversely affected; 2.3.9Party B is incapable of repaying his debts as they become due; 2.3.10the Agreement is illegal as a result of any applicable laws or Party B is restricted from continuing to perform its obligations as specifiedherein; 2.3.11any approval, permits, licenses or authorization from any applicable governmental entity (and registration or filing procedure) requiredfor the Company to provide value added telecommunications services in respect of its information services business via the Internet inthe PRC are withdrawn, suspended, invalidated or materially amended; 2.3.12any approval, permits, licenses or authorization from any applicable government authority required to perform this Agreement or makethis Agreement enforceable, legal and valid are withdrawn, suspended, invalidated or materially amended; 2.3.13any property owned by Party B is altered or damaged and thereby causes Party A to deem that the capability of Party B to perform theobligations stated herein have been adversely affected; or 2.3.14Party B defaults under either of the Equity Pledge Agreement or the Equity Option Agreement. 2.4Repayment Date. Unless otherwise agreed by Party A in writing, the Loan borrowed by Party B, any portion of the Loan and any other payment inarrears, if applicable, under this Agreement shall become due and payable five Business Days after Party A gives written notice to Party Bdemanding repayment in accordance with Article 6.1 (Repayment Date)Without Party A’s express prior written consent, the Loan shall not be repaid and shall continue indefinitely until the Repayment Date. Loan Agreement - 5 - 2.5Form of Repayment. Unless agreed by the parties in writing, the Loan may only be repaid in the form specified in Article 6. 2.6Purpose of Loan. Party B has accepted the Loan provided by Party A and hereby agrees and covenants that the Loan shall be used only tocontribute to the registered capital of the Company. Without Party A’s prior written consent, Party B shall not use the Loan for any other purpose, orsell, assign, transfer, pledge or otherwise dispose of any legal rights or benefits in connection with, or create any security interest over, the EquityInterest to any third party.3. CONDITIONS PRECEDENTDrawdown of the Loan by Party B shall, unless specifically waived by Party A in writing, be conditional upon the fulfillment of all of the followingconditions precedent: 3.1Representations and Warranties. All the representations and warranties provided by Party B in Article 4.2 are true, complete and correct, and shallremain true, complete and correct on the date of such drawdown, as if they are provided on such date. 3.2No Breach. Party B shall not have breached any of his undertakings provided in Article 5, and no event which may affect the performance of PartyB’s obligations hereunder shall have occurred or be likely to occur.4. REPRESENTATIONS AND WARRANTIES 4.1Party A’s Representations and Warranties. Party A represents and warrants as follows: 4.1.1it is a company incorporated and validly existing under the laws of PRC; 4.1.2it has the power to enter into and perform this Agreement, and its execution and performance of this Agreement is in compliance with thebusiness scope of Party A and the provisions of its articles of association or other constituent documents; 4.1.3the execution and performance of this Agreement by it will not result in a breach of any laws, regulations, authorizations, or agreement towhich it is subject; and 4.1.4this Agreement shall constitute its legal, valid, and binding obligations, and is to be enforceable against it. Loan Agreement - 6 - 4.2Party B’s Representations and Warranties. Party B represents and warrants as follows: 4.2.1he has and shall maintain the full power and authority to enter into this Agreement and to perform his obligations hereunder; 4.2.2the execution and performance of this Agreement by himself will not result in a breach of any laws, regulations, authorizations, oragreement to which he is subject; 4.2.3this Agreement shall constitute his legal, valid, and binding obligations, and is to be enforceable against himself; 4.2.4there are no civil, criminal or administrative, claims, actions, suits, investigations or proceedings pending or threatened against himwhich, based on his knowledge, would materially and adversely affect this Agreement and the performance thereof; 4.2.5there is no provision of any agreement, enforceable judgment or order of any court binding on him or affecting his property, which wouldin any way prevent or materially adversely affect his execution or performance of this Agreement; 4.2.6the execution and performance of this Agreement and the realization of Party A’s rights hereunder will not violate any mortgage right,contract, judgment, decree or law that is binding upon him or his assets; 4.2.7with the exception of the Equity Pledge Agreement, the Equity Option Agreement and the Power of Attorney, he has not: (a) created anypledge, charge or any other security over any of the Equity Interests; (b) offered to transfer any of the Equity Interests to any third party;(c) issued an undertaking to any third party regarding any offer to purchase any of the Equity Interests; or (d) entered into any agreementto transfer any of the Equity Interests to any third party; and 4.2.8no dispute, action, arbitration, administrative procedure or other legal proceeding (potential or actual) regarding himself and/or any ofthe Equity Interests in existence or pending.5. UNDERTAKINGS 5.1Party B’s Undertakings relating to the Company. Party B undertakes to vote his total interest in the Company and to take all other necessaryactions to ensure that the Company: 5.1.1will obtain or complete all the necessary governmental approvals, authorizations, licenses, registrations and filing procedures to own itsassets and to engage in the businesses specified in the operational scope of its business license; Loan Agreement - 7 -  5.1.2will not supplement, change, or modify in any way its articles of association or other constituent documents, increase or reduce itsregistered capital, or alter its shareholding structure without the prior written consent of Party A; 5.1.3will not sell, transfer, mortgage, pledge, grant any option rights or otherwise dispose of any asset, business or legal or beneficial interest,or permit the creation of any other security interest over the same without the prior written consent of Party A; 5.1.4will not incur, inherit, warrant or permit the existence of any Loan without the prior written consent of Party A; 5.1.5will not enter into any contracts or extend any loan or credit to any party or provide any guarantee or assume any obligation of any partywithout the prior written consent of Party A; 5.1.6will provide all information relating to its operations and financial affairs to Party A upon the request of Party A; 5.1.7will not merge, consolidate with any third party, or acquire or invest in any third party, without the prior written consent of Party A; 5.1.8will notify Party A immediately should any legal action, arbitration or administrative procedure relating to its assets, operations orincome arises or is likely to arise; 5.1.9will execute all necessary or appropriate agreements, take all necessary or appropriate actions and make all necessary or appropriatedefenses for the purpose of maintaining all rights and proprietary interests in respect of its assets; 5.1.10will not pay dividends or distributions of any kind to its shareholders without the prior written consent of Party A; 5.1.11will strictly observe all of the provisions under this Agreement, the Equity Pledge Agreement, the Equity Option Agreement and thePower of Attorney and shall not cause any act or omission to take place which may impair the validity and enforceability of thosedocuments; and 5.1.12will promptly notify Party A in writing of the occurrence of any event which may materially affect its assets, obligations, rights oroperations. Loan Agreement - 8 - 5.2Undertakings of Party B. Party B further undertakes as follows: 5.2.1he will not sell, transfer, mortgage, pledge, grant any option rights or otherwise dispose of any of the Equity Interests, or permit thecreation of any other security interest in the Company without the prior written consent of Party A; 5.2.2he will ensure that the shareholders’ meeting of the Company shall not approve any sale, transfer, pledge or other disposal of the EquityInterests, or permit the creation of any other security interest over the same without the prior written consent of Party A; 5.2.3he will ensure that the shareholders’ meeting of the Company shall decide on any matter only with the prior written instruction of PartyA; 5.2.4he will notify Party A immediately if and when any legal action, arbitration, or administrative procedure relating to the Equity Interestsarises or is likely to arise; 5.2.5he will enter into all necessary or appropriate agreements, take all necessary or appropriate actions, file all necessary or appropriate andmake all necessary or appropriate defenses for the purpose of maintaining ownership of the Equity Interests at the instruction of Party A; 5.2.6he will not cause any actions and/or omissions which may materially and adversely affect the assets, operations or liability of theCompany without the prior written consent of Party A; 5.2.7he will, upon the request of Party A, appoint any person nominated by Party A as a director of the Company; 5.2.8in the event that the Party A or the Designated Party purchases the Equity Interests pursuant to the Equity Option Agreement, he shallapply the proceeds therefrom to repay the Loan to Party A; 5.2.9he will promptly notify Party A in writing of the occurrence of any event which may materially affect his assets, obligations, rights oroperations; 5.2.10he shall issue the Power of Attorney simultaneously when entering into this Agreement; 5.2.11the Equity Option Agreement shall be validly executed, pursuant to which Party B shall grant Party A or the Designated Party with anexclusive option to purchase the Equity Interests, to the extent permitted under PRC law; Loan Agreement - 9 -  5.2.12the Equity Pledge Agreement, the Equity Option Agreement, and the Power of Attorney shall be in full effect and free of default, and allrelevant filing or registrations procedures, approvals, and governmental proceedings shall have been obtained or completed; 5.2.13he will strictly observe all the provisions and perform all of his obligations under this Agreement, the Equity Pledge Agreement and theEquity Option Agreement, causing no actions nor failing to take any actions that may impair the validity or enforceability of thisAgreement, the Equity Pledge Agreement or the Equity Option Agreement; 5.2.14he shall maintain as strictly confidential the existence and provisions of this Agreement, as well as any correspondence, resolutions,ancillary agreements and any other documentation associated herewith; and 5.2.15he will not be entitled to any dividend or profit distribution of the Company and will not request or receive any of the same without theprior written consent of Party A. If such dividends or other distributions are distributed to him from the Company, he will immediatelyand unconditionally pay or transfer to Party A any such dividends or other distributions in whatsoever form obtained from the Companyas a shareholder of the Company at the time such payables arise, after having deducted and paid any and all relevant taxes and expensesapplicable as a result of his receipt of such dividends or other distributions.6. ENFORCEMENT 6.1Repayment of Loan. 6.1.1Upon the occurrence of either an Event of Default or a decision by Party A, in its sole discretion, to demand repayment of the Loan or anyportion of the Loan, Party A may at its discretion issue a notice (Repayment Notice) to Party B requiring repayment of the Loan or anyportion of the Loan and any other payment in arrears under this Agreement. 6.1.2Party B shall repay the Loan by transferring the Equity Interest to Party A or the Designated Party, as directed by Party A, by signing anddelivering an agreement for the transfer of the Equity Interest satisfactory to the Party A from the form to the substance. 6.1.3If Party B fails to comply with its repayment obligations under this Agreement, late payment interest shall be assessed at the rate of 0.3%per day upon the outstanding amount of the Loan and shall be payable from the Repayment Date until the date on which the totalamount of the overdue loan, overdue interest and other monies payable to Party A are fully settled. 6.2Notification. Party B shall immediately notify Party A in writing of the occurrence of any event set forth in Article 2.3 or any circumstance whichmay lead to the occurrence of any such event as soon as Party B knows or is aware of such event or circumstance. Loan Agreement - 10 - 7. CONFIDENTIALITY 7.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all information relating to or arisen from this Agreement,or made available under this Agreement to a party or any associate thereof (Confidential Information). Without the prior written consent of theother party, no party shall disclose any Confidential Information to any third party unless the disclosure is required by law or by enforceable ordersof the court or related government departments. Under such circumstances, the party required to disclose the Confidential Information shall notifythe other party immediately, take all possible measures to minimize the disclosure, and notify the persons to whom information is being disclosed ofthe confidentiality obligation. Notwithstanding anything to the contrary above, Party A shall have the full right to disclose any ConfidentialInformation to its shareholders, affiliates or professional advisors. 7.2Obligations upon Termination. Upon termination of this Agreement, either party shall, at the request of the other party, return any document,material, database, equipment, or software containing the Confidential Information to the other party. If, for any reason, such document, material,database, equipment, or software cannot be returned, either party shall destroy all the Confidential Information belonging to the other party anddelete such Confidential Information from any memory devices. No party shall be permitted to continue using the Confidential Information in anyway after the termination of this Agreement. 7.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive the termination ofthis Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of this Agreement by any party.8. DISPUTE RESOLUTION 8.1Governing Law. This Agreement shall be governed by the laws of the PRC. 8.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolve suchdispute through friendly consultation or mediation. 8.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the China InternationalEconomic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with the CIETAC’s rules in effectat the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitration shall be English. The tribunal shallconsist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost of arbitration shall be allocated as determined by thearbitrators. Loan Agreement - 11 - 9. INDEMNITYParty A agrees to indemnify and hold harmless Party B for any damages, fines or penalties solely incurred in his capacity as a shareholder or any otherpositions (including, without limitation, those of legal representative and director) directly as a result of the establishment of the Company and the operationof the Company’s business in contravention of PRC law; provided, however, that in no instance will Party A provide such indemnification if Party B hasengaged in fraud or willful misconduct or has breached or is in breach of this Agreement.10. MISCELLANEOUS 10.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail ortelecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given or made shall beconfirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given or made; (b) for noticesdelivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) or the 4th day of the delivery dateto an internationally certified delivery institution shall be deemed as having been duly given or made; and (c) for notices by telecopy, the receiptdate showed on the delivery confirming paper of the relevant document shall be deemed as having been duly given or made. Party A : Beijing Chezhiying Technologies Co., Ltd.Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857001Attn : Qin ZhiParty B Fan ZhengAddress : Room 302, Unit 2, Building 2, No. 336, Xinshi North Road, Qiaoxi District, Shijiazhuang, Hebei Province,ChinaTel : +86 18631100000Attn : Fan Zheng Loan Agreement - 12 - 10.2Entire Agreement. This Agreement, the Exclusive Technical Consulting and Services Agreement, the Equity Pledge Agreement, the Equity OptionAgreement, and the Power of Attorney from Party B to Party A in favor of Party A shall constitute the entire agreement among the parties in respectof the subject matter hereof and shall supersede any previous discussions, negotiations and agreements related thereto. 10.3Amendment. Without the prior written consent of Party A, Party B shall not amend this Agreement. If required by law, the parties shall obtain allrequisite approvals from the relevant authorities to give effect to the amendment. 10.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of either party to exercise any right, authority orprivilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shall any single or partialexercise of any right, authority or privilege preclude any other future exercise thereof. 10.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall not affect thevalidity or enforceability of any other provision of this agreement. 10.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 10.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designated parties (naturalperson or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake the same rights and obligations hereinof Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assigns the rights and obligations under this Agreement, atthe request of Party A, Party B shall execute the relevant agreements and/or documents with respect to such transfer or assignment. Party B shall notassign any of its rights or obligations hereunder without the prior written consent of the Party A. 10.8Effectiveness: This Agreement shall be effective upon its signing by all the parties or their respective authorized representative and shall be deemedterminated as of the date when the Loan has been repaid in full. 10.9Language and Counterparts. This Agreement is prepared in 2 sets of originals in English. Each party shall hold 1 set.[The space below has been intentionally left blank.] Loan Agreement - 13 - IN WITNESS WHEREOF, each of the parties hereto has duly executed or has caused this Agreement to be duly executed in its name and on its behalf bythe officer or representative duly authorized, on the day and year first above written. Party A: Beijing Chezhiying Technologies Co., Ltd.By: /s/ Qin ZhiName: Title: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technologies Co., Ltd.Party B: Fan ZhengBy: /s/ Fan ZhengName: Fan Zheng Loan Agreement Exhibit 4.74 Equity Option Agreement amongBeijing Chezhiying Technology Co., Ltd.andBeijing Shengtuo Hongyuan Information Technology Co., Ltd.andAutohome Used Car Appraisal Co., Ltd.July 8, 2015TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 4 2. PURCHASE AND SALE OF EQUITY INTEREST 4 3. UNDERTAKINGS 5 4. REPRESENTATIONS AND WARRANTIES 8 5. FURTHER WARRANTIES 9 6. TERM 9 7. APPLICABLE LAW AND DISPUTE RESOLUTION 9 8. CONFIDENTIALITY 10 9. MISCELLANEOUS 11 Equity Option Agreement - 2 - THIS EQUITY OPTION AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC).by and among (1)Beijing Chezhiying Technology Co., Ltd. , a liability limited company incorporated under the PRC laws with itsregistered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party A);and (2)Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing underthe PRC laws with its legal address at Room 1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party B);and (3)Autohome Used Car Appraisal Co., Ltd. , a company duly organized and existing under the PRC laws withits legal address at Room 201, No. 35 Road West, Guchengxi Street, Shijingshan District, Beijing 100043, China (Party C).Recitals A.Party B holds 100 % of the equity interest in Party C. B.Party C is a PRC domestic company lawfully existing in the PRC and engaged in used car appraisal services. C.On July 8, 2015, an Exclusive Technical Consulting and Services Agreement was entered into between Party A and Party C (Services Agreement),pursuant to which Party C will pay service fees (Service Fees) to Party A in consideration for services provided by Party A. Equity Option Agreement - 3 - NOW THEREFORE, the parties agree as follows: 1.DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: Designated Person(s) means 1 or more person(s) designated by Party A; Equity Interest means 100% of the equity interest held by Party B in Party C; Equity Pledge Agreement means the Equity Interest Pledge Agreement entered into by and among Party A and Party B, dated July 8,2015, under which Party B pledges to Party A Party B’s Equity Interest in consideration for Party C’sperformance of its obligations under the Services Agreement; Notice of Purchase means the written notice sent by Party A to exercise the Purchase Right (as defined below), as set forth inArticle 2.2; Person means a person, corporation, joint venture, partnership, enterprise, trust, or non-corporate entity; Purchase Right means an irrevocable right to purchase, at any time, all or part of the Equity Interest held by Party B at aprice equivalent to the lowest price permitted by then-current PRC laws; and Security Interest means any third party’s security, right or interest, any right to purchase Party B’s equity interest in Party C,or any right of acquisition, right of set-off, or other security arrangement, including any security interestsubject to this Agreement, or the Equity Pledge Agreement. 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. Theuse of the plural shall include the use of the singular, and vice versa. Unless otherwise indicated, a reference to a day, month or year is toa calendar day, month or year. The use of the masculine shall include the use of the feminine, and vice versa. 2.PURCHASE AND SALE OF EQUITY INTEREST 2.1Authorization. Party B hereby irrevocably grants Party A or its Designated Person(s) the Purchase Right for its Equity Interest. 2.2Procedures. Upon Party A’s decision to exercise such Purchase Right, it shall send a written Notice of Purchase to Party B setting forthdetails for the purchase. Equity Option Agreement - 4 -  2.3Exercise of Purchase Right. Every time Party A exercises the Purchase Right: 2.3.1Party B shall supervise and ensure other shareholders of Party C to convene a shareholders meeting, and pass a resolution totransfer the Equity Interest from Party B to Party A and/or the Designated Person; 2.3.2Party B shall, upon the terms and conditions of this Agreement and the Notice of Purchase, enter into all documents requestedby Party A; and 2.3.3Party B and Party C shall execute all documents, acquire all approvals, and perform all actions necessary to transfer the validownership of the Equity Interest to Party A and/or the Designated Person. 2.4Method of Payment. Upon exercise of the Purchase Right by Party A or its Designated Person(s), Party A shall make payment bycancelling all or a portion of the Service Fees, in the same proportion that Party A or its Designated Person(s) has acquired the SecurityInterest. In case PRC laws require Party A or its Designated Person(s) to pay to Party B, Party B shall immediately and unconditionallypay or transfer to Party A any proceeds in whatsoever form obtained from the Party A or its Designated Person(s) at the time suchpayables arise, after having deducted and paid any and all relevant taxes and expenses applicable to such a shareholder as a result of itsreceipt of such proceeds. 3.UNDERTAKINGS 3.1Undertakings of Party C. Party C hereby undertakes that: 3.1.1it will maintain its corporate existence, operate its business, and transact affairs prudently and efficiently in accordance withgood financial and commercial standards and practices; 3.1.2without the prior written consent of Party A, it will not sell, assign, mortgage, or otherwise dispose of any legal or beneficiaryrights to any of its assets, business, or revenues, or permit the creation of any other Security Interest over such rights at any timeafter the execution date of this Agreement; 3.1.3without the prior written consent of Party A, it will not incur, assume, guarantee or allow the existence of any debts, except forthose to which Party A has given its written consent; Equity Option Agreement - 5 -  3.1.4it will always operate its business to maintain the value of its assets, and will not do anything which will affect its businesssituation nor the value of its assets; 3.1.5without the prior written consent of Party A, it will not enter into any contract at an amount exceedingly higher or outside theordinary business; 3.1.6without the prior written consent of Party A, it will not provide any loan to any third party; 3.1.7at the request of Party A, it will provide to Party A all information relating to its operation and financial conditions; 3.1.8without the prior written consent of Party A, it will not be consolidated or merged with any third party, nor acquire or invest inany third party; 3.1.9it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to itsassets, business, or revenues; 3.1.10in order to maintain the ownership of all its assets, it will execute all necessary or appropriate documents, take all necessary orappropriate actions, file all necessary or appropriate charges, and conduct all necessary or appropriate defenses against allclaims; 3.1.11without the prior written consent of Party A, it will not in any form whatsoever allocate dividends to shareholders; and 3.1.12if PRC law requires it to be dissolved or liquidated, it shall sell all of its assets to the extent permitted by PRC laws to Party A oranother qualifying entity designated by Party A, at the lowest selling price permitted by applicable PRC law. Any obligationfor Party A to pay Party C as a result of such transaction shall be forgiven by Party C or any proceeds from such transaction shallbe paid to Party A in partial satisfaction of the service fee under the Services Agreement or remitted to Party A or the qualifyingentity designated by Party A, as applicable under then-current PRC laws. 3.2Undertakings of Party B. Party B hereby undertakes that: 3.2.1without the prior written consent of Party A, it will not sell, transfer, mortgage, pledge, grant any option rights or otherwisedispose of any legal or beneficiary rights to the Equity Interest, or permit the creation of any other Security Interest over suchrights at any time, except for the pledge under the Equity Pledge Agreement; Equity Option Agreement - 6 -  3.2.2without the prior written consent of Party A, it will not vote in favor of, endorse, or sign any shareholders resolution approvingthe sale, assignment, mortgage, or other disposal of the legal or beneficiary rights of any shareholder or allowing the creation ofany other Security Interest over such rights at the shareholders meeting of Party C; 3.2.3without the prior written consent of Party A, it will not vote in favor of, endorse, or sign any shareholders resolution approvingthe consolidation or merger of Party C with any third party or the acquisition of or investment in any third party by Party C atthe shareholders meeting of Party C; 3.2.4it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to theEquity Interest; 3.2.5at the request of Party A, it will cause the shareholders meeting of Party C to vote in favor of the transfer of the Equity Interest ascontemplated hereunder; 3.2.6in order to maintain its ownership of the Equity Interest, it will execute all necessary or appropriate documents, take allnecessary or appropriate actions, file all necessary or appropriate charges, or conduct all necessary or appropriate defensesagainst all claims; 3.2.7at the request of Party A, it will appoint the person nominated by Party A as the director of, or to hold any other position in,Party C; 3.2.8at the request of Party A, it will immediately transfer the requested Equity Interest to the Designated Person(s); 3.2.9it will strictly comply with the provisions of this Agreement and any other contracts entered into jointly or separately by theparties hereto, strictly perform the obligations under such contracts, and will not do anything which will affect the validity andenforceability of such contracts; 3.2.10it shall not put forward, or vote in favor of, any shareholder resolution to, or otherwise request Party C to, issue any dividends orother distributions with respect to its equity interest in Party C; provided, however, in the event that it receives any profit,bonus, distribution or dividend from Party C, it shall, as permitted under PRC laws, immediately pay or transfer such profit,bonus, distribution or dividend to Party A or to any party designated by Party A in order to pay in part the service fee under theServices Agreement on behalf of Party C; and 3.2.11after mandatory liquidation described in 3.1.12 above, it will remit in full to the Party A any residual interest it receives in anonreciprocal transfer or cause it happen. If such transfer is prohibited by PRC law, it will remit the proceeds to Party A or itsDesignated Person(s) in a manner permitted under PRC law Equity Option Agreement - 7 - 4.REPRESENTATIONS AND WARRANTIES 4.1Representations and Warranties of Party B. Party B hereby represents and warrants to Party A that as of the date of this Agreement: 4.1.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and that the said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.1.2the execution and delivery of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, breach or result in a default of any contract or instrument to which it is subject, or result in a breach,suspension, or revocation of any grant, license, or approval or result in the imposition of any additional conditions beingimposed thereon; and 4.1.3it is the lawful owner of the Equity Interest held by itself and has not created any Security Interest over such Equity Interestother than the Equity Pledge Agreement. 4.2Representations and Warranties of Party C. Party C represents and warrants to Party A that: 4.2.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.2.2the execution and delivery, of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, conflict with its Articles of Association or other constituent documents, breach or result in a default of anycontract or instrument to which it is subject, or result in a breach, suspension, or revocation of any grant, license, or approval orresult in the imposition of any additional conditions being imposed thereon; Equity Option Agreement - 8 -  4.2.3it is the lawful owner of its assets, and has not created any Security Interest over such assets; 4.2.4it does not have any outstanding debts other than those incurred in the ordinary course of business and which have beendisclosed to Party A; 4.2.5it will comply with all PRC law applicable to the acquisition of assets; and 4.2.6there is no existing, pending or threatened litigation, arbitration, or administrative proceedings relating to the Equity Interest,its assets, or itself. 5.FURTHER WARRANTIESThe parties to the agreement agree to promptly execute documents reasonably requisite to the performance of the provisions and the aim of thisAgreement or documents beneficial to it, and to take actions reasonably requisite to the performance of the provisions and the aim of thisAgreement or actions beneficial to it. 6.TERMThis Agreement shall take effect as of the Effective Date and shall remain in full force and effect until the earlier of (1) the date on which all of theEquity Interests have been acquired by Party A directly or through its Designated Person(s); or (2) the unilateral termination by Party A (at its soleand absolute discretion), by giving 30 days prior written notice to the Party B of its intention to terminate this Agreement. 7.APPLICABLE LAW AND DISPUTE RESOLUTION 7.1Governing Law. This Agreement shall be governed by and construed in accordance with PRC law. 7.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance toresolve such dispute through friendly consultation or mediation. 7.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the ChinaInternational Economic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with theCIETAC’s rules in effect at the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitrationshall be English. The tribunal shall consist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost ofarbitration shall be allocated as determined by the arbitrators. Equity Option Agreement - 9 - 8.CONFIDENTIALITY 8.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all Confidential Information. Without the priorwritten consent of the other parties, no party shall disclose any Confidential Information to any third party unless the disclosure isrequired by law or by enforceable orders of the court or related government departments. Under such circumstances, the party required todisclose the Confidential Information shall notify the other parties immediately, take all possible measures to minimize the disclosure,and notify the persons to whom information is being disclosed of the confidentiality obligation. 8.2Obligations upon Termination. Upon termination of this Agreement, each party shall, at the request of the other parties, return anydocument, material, database, equipment, or software containing the Confidential Information to the other parties. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, the parties shall destroy all the Confidential Information anddelete the Confidential Information from any memory devices. No party shall be permitted to continue using the ConfidentialInformation in any way after the termination of this Agreement. 8.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive afterthe termination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. Equity Option Agreement - 10 - 9.MISCELLANEOUS 9.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail,or telecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given ormade shall be confirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given ormade; (b) for notices delivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) orthe 4th day of the delivery date to an internationally certified delivery institution shall be deemed as having been duly given or made;and (c) for notices by telecopy, the receipt date showed on the delivery confirming paper of the relevant document shall be deemed ashaving been duly given or made. Party A : Beijing Chezhiying Technology Co., Ltd.Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : +86 10 59857001Attn : Qin ZhiParty B : Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Address : Room 1005, F/10, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : +86 10 59857002Attn : Qin ZhiParty C : Autohome Used Car Appraisal Co., Ltd.Address : Room 201, No. 35 Road West, Guchengxi Street, Shijingshan District, Beijing 100043, ChinaTel : +86 10 59857001Attn : 9.2Entire Agreement. This Agreement, the Services Agreement, the Equity Pledge Agreement, and the power of attorney from Party B infavor of Party A shall constitute the entire agreement among the parties in respect of the subject matter hereof and shall supersede anyprevious discussions, negotiations and agreements related thereto. 9.3Amendment. Without the prior written consent of Party A, neither of Party B or Party C of this Agreement shall be entitled to amend thisAgreement. If required by law, the parties shall obtain all requisite approvals from the relevant authorities to give effect to theamendment. 9.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of any party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shallany single or partial exercise of any right, authority or privilege preclude any other future exercise thereof. Equity Option Agreement - 11 -  9.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall notaffect the validity or enforceability of any other provision of this agreement. 9.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 9.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designated parties(natural person or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake the same rightsand obligations herein of Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assigns the rights andobligations under this Agreement, at the request of Party A, Party B shall execute the relevant agreements and/or documents with respectto such transfer or assignment. Party B and Party C shall assign any of its rights or obligations hereunder without the prior writtenconsent of the Party A. 9.8Language and Counterparts. This Agreement is prepared in 3 sets of originals in the English language. Each party shall hold 1 set.[The space below is intentionally left blank.] Equity Option Agreement - 12 - IN WITNESS WHEREOF the parties hereof have caused this Agreement to be executed by their duly authorized representatives as of the date first writtenabove. Party A:Beijing Chezhiying Technology Co., Ltd.By: /s/ Qin zhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technology Co., Ltd.Party B:Beijing Shengtuo Hongyuan Information Technology Co., Ltd.By: /s/ Qin zhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Party CAutohome Used Car Appraisal Co., Ltd.By: /s/ Qin zhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Autohome Used Car Appraisal Co., Ltd. Equity Option Agreement Exhibit 4.75 Equity Option Agreement amongBeijing Chezhiying Technology Co., Ltd.andBeijing Shengtuo Hongyuan Information Technology Co., Ltd.andBeijing Autohome Used Car Brokerage Co., LtdJuly 8, 2015 TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 3 2. PURCHASE AND SALE OF EQUITY INTEREST 4 3. UNDERTAKINGS 5 4. REPRESENTATIONS AND WARRANTIES 8 5. FURTHER WARRANTIES 9 6. TERM 9 7. APPLICABLE LAW AND DISPUTE RESOLUTION 9 8. CONFIDENTIALITY 10 9. MISCELLANEOUS 10 Equity Option Agreement - 2 - THIS EQUITY OPTION AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC).by and among (1)Beijing Chezhiying Technologies Co., Ltd. , a liability limited company incorporated under the PRC laws with itsregistered address at Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing, China (Party A);and (2)Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing underthe PRC laws with its legal address at Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing, China (Party B);and (3)Beijing Autohome Used Car Brokerage Co., Ltd , a company duly organized and existing under the PRC laws withits legal address at No.101 Oudebao Vehicles Trading Market, Huilongguan, Changping District, Beijing, China (Party C).Recitals A.Party B holds 100 % of the equity interest in Party C. B.Party C is a PRC domestic company lawfully existing in the PRC and engaged in the business of used vehicles brokerage. C.On July 8, 2015, an Exclusive Technical Consulting and Services Agreement was entered into between Party A and Party C (Services Agreement),pursuant to which Party C will pay a service fee to Party A in consideration for services provided by Party A.NOW THEREFORE, the parties agree as follows: 1.DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: DesignatedPerson(s) means 1 or more person(s) designated by Party A; Equity Option Agreement - 3 - Equity Interest means 100% of the equity interest held by Party B in Party C;Equity PledgeAgreement means the Equity Interest Pledge Agreement entered into by and among Party A and Party B, dated on July 8, 2015,under which Party B pledges to Party A Party B’s Equity Interest in consideration for Party C’s performance of itsobligations under the Services Agreement;Notice ofPurchase means the written notice sent by Party A to exercise the Purchase Right (as defined below), as set forth in Article 2.2;Person means a person, corporation, joint venture, partnership, enterprise, trust, or non-corporate entity;Purchase Right means an irrevocable right to purchase, at any time, all or part of the Equity Interest held by Party B at a price equivalentto the lowest price permitted by then-current PRC laws; andSecurity Interest means any third party’s security, right or interest, any right to purchase Party B’s equity interest in Party C, or any rightof acquisition, right of set-off, or other security arrangement, including any security interest subject to this Agreement,the Equity Pledge Agreement. 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. The use ofthe plural shall include the use of the singular, and vice versa. Unless otherwise indicated, a reference to a day, month or year is to a calendarday, month or year. The use of the masculine shall include the use of the feminine, and vice versa. 2.PURCHASE AND SALE OF EQUITY INTEREST 2.1Authorization. Party B hereby irrevocably grants Party A or its Designated Person(s) the Purchase Right for its Equity Interest. 2.2Procedures. Upon Party A’s decision to exercise such Purchase Right, it shall send a written Notice of Purchase to Party B setting forth detailsfor the purchase. Equity Option Agreement - 4 -  2.3Exercise of Purchase Right. Every time Party A exercises the Purchase Right: 2.3.1Party B shall supervise and ensure other shareholders of Party C to convene a shareholders meeting, and pass a resolution totransfer the Equity Interest from Party B to Party A and/or the Designated Person; 2.3.2Party B shall, upon the terms and conditions of this Agreement and the Notice of Purchase, enter into all documents requestedby Party A; and 2.3.3Party B and Party C shall execute all documents, acquire all approvals, and perform all actions necessary to transfer the validownership of the Equity Interest to Party A and/or the Designated Person. 2.4Method of Payment. Upon exercise of the Purchase Right by Party A or its Designated Person(s), in case PRC laws require Party A or itsDesignated Person(s) to pay to Party B, Party B shall immediately and unconditionally pay or transfer to Party A any proceeds in whatsoeverform obtained from the Party A or its Designated Person(s) at the time such payables arise, after having deducted and paid any and all relevanttaxes and expenses applicable to such a shareholder as a result of its receipt of such proceeds. 3.UNDERTAKINGS 3.1Undertakings of Party C. Party C hereby undertakes that: 3.1.1it will maintain its corporate existence, operate its business, and transact affairs prudently and efficiently in accordance withgood financial and commercial standards and practices; 3.1.2without the prior written consent of Party A, it will not sell, assign, mortgage, or otherwise dispose of any legal or beneficiaryrights to any of its assets, business, or revenues, or permit the creation of any other Security Interest over such rights at any timeafter the execution date of this Agreement; 3.1.3without the prior written consent of Party A, it will not incur, assume, guarantee or allow the existence of any debts, except forthose to which Party A has given its written consent; 3.1.4it will always operate its business to maintain the value of its assets, and will not do anything which will affect its businesssituation nor the value of its assets; Equity Option Agreement - 5 -  3.1.5without the prior written consent of Party A, it will not enter into any contract at an amount exceedingly higher or outside theordinary business; 3.1.6without the prior written consent of Party A, it will not provide any loan to any third party; 3.1.7at the request of Party A, it will provide to Party A all information relating to its operation and financial conditions; 3.1.8without the prior written consent of Party A, it will not be consolidated or merged with any third party, nor acquire or invest inany third party; 3.1.9it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to itsassets, business, or revenues; 3.1.10in order to maintain the ownership of all its assets, it will execute all necessary or appropriate documents, take all necessary orappropriate actions, file all necessary or appropriate charges, and conduct all necessary or appropriate defenses against allclaims; 3.1.11without the prior written consent of Party A, it will not in any form whatsoever allocate dividends to shareholders; and 3.1.12if PRC law requires it to be dissolved or liquidated, it shall sell all of its assets to the extent permitted by PRC laws to Party A oranother qualifying entity designated by Party A, at the lowest selling price permitted by applicable PRC law. Any obligationfor Party A to pay Party C as a result of such transaction shall be forgiven by Party C or any proceeds from such transaction shallbe paid to Party A in partial satisfaction of the service fee under the Services Agreement or remitted to Party A or the qualifyingentity designated by Party A, as applicable under then-current PRC laws. 3.2Undertakings of Party B. Party B undertakes on its own behalf that: 3.2.1without the prior written consent of Party A, it will not sell, transfer, mortgage, pledge, grant any option rights or otherwisedispose of any legal or beneficiary rights to the Equity Interest, or permit the creation of any other Security Interest over suchrights at any time, except for the pledge under the Equity Pledge Agreement; Equity Option Agreement - 6 -  3.2.2without the prior written consent of Party A, it will not vote in favor of, endorse, or sign any shareholders resolution approvingthe sale, assignment, mortgage, or other disposal of the legal or beneficiary rights of any shareholder or allowing the creation ofany other Security Interest over such rights at the shareholders meeting of Party C; 3.2.3without the prior written consent of Party A, it will not vote in favor of, endorse, or sign any shareholders resolution approvingthe consolidation or merger of Party C with any third party or the acquisition of or investment in any third party by Party C atthe shareholders meeting of Party C; 3.2.4it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to theEquity Interest; 3.2.5at the request of Party A, it will cause the shareholders meeting of Party C to vote in favor of the transfer of the Equity Interest ascontemplated hereunder; 3.2.6in order to maintain its ownership of the Equity Interest, it will execute all necessary or appropriate documents, take allnecessary or appropriate actions, file all necessary or appropriate charges, or conduct all necessary or appropriate defensesagainst all claims; 3.2.7at the request of Party A, it will appoint the person nominated by Party A as the director of, or to hold any other position in,Party C; 3.2.8at the request of Party A, it will immediately transfer the requested Equity Interest to the Designated Person(s); 3.2.9it will strictly comply with the provisions of this Agreement and any other contracts entered into jointly or separately by theparties hereto, strictly perform the obligations under such contracts, and will not do anything which will affect the validity andenforceability of such contracts; 3.2.10it shall not put forward, or vote in favor of, any shareholder resolution to, or otherwise request Party C to, issue any dividends orother distributions with respect to its equity interest in Party C; provided, however, in the event that it receives any profit,bonus, distribution or dividend from Party C, it shall, as permitted under PRC laws, immediately pay or transfer such profit,bonus, distribution or dividend to Party A or to any party designated by Party A in order to pay in part the service fee under theServices Agreement on behalf of Party C; and 3.2.11after mandatory liquidation described in 3.1.12 above, it will remit in full to the Party A any residual interest it receives in anonreciprocal transfer or cause it happen. If such transfer is prohibited by PRC law, it will remit the proceeds to Party A or itsDesignated Person(s) in a manner permitted under PRC law Equity Option Agreement - 7 - 4.REPRESENTATIONS AND WARRANTIES 4.1Representations and Warranties of Party B. Party B hereby represents and warrants on its own behalf to Party A that as of the date of thisAgreement: 4.1.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and that the said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.1.2the execution and delivery of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, breach or result in a default of any contract or instrument to which it is subject, or result in a breach,suspension, or revocation of any grant, license, or approval or result in the imposition of any additional conditions beingimposed thereon; and 4.1.3it is the lawful owner of the Equity Interest held by himself and has not created any Security Interest over such Equity Interestother than the Equity Pledge Agreement. 4.2Representations and Warranties of Party C. Party C represents and warrants to Party A that: 4.2.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.2.2the execution and delivery, of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, conflict with its Articles of Association or other constituent documents, breach or result in a default of anycontract or instrument to which it is subject, or result in a breach, suspension, or revocation of any grant, license, or approval orresult in the imposition of any additional conditions being imposed thereon; Equity Option Agreement - 8 -  4.2.3it is the lawful owner of its assets, and has not created any Security Interest over such assets; 4.2.4it does not have any outstanding debts other than those incurred in the ordinary course of business and which have beendisclosed to Party A; 4.2.5it will comply with all PRC law applicable to the acquisition of assets; and 4.2.6there is no existing, pending or threatened litigation, arbitration, or administrative proceedings relating to the Equity Interest,its assets, or itself. 5.FURTHER WARRANTIESThe parties to the agreement agree to promptly execute documents reasonably requisite to the performance of the provisions and the aim of thisAgreement or documents beneficial to it, and to take actions reasonably requisite to the performance of the provisions and the aim of this Agreementor actions beneficial to it. 6.TERMThis Agreement shall take effect as of the Effective Date and shall remain in full force and effect until the earlier of (1) the date on which all of theEquity Interests have been acquired by Party A directly or through its Designated Person(s); or (2) the unilateral termination by Party A (at its sole andabsolute discretion), by giving 30 days prior written notice to the Party B of its intention to terminate this Agreement. 7.APPLICABLE LAW AND DISPUTE RESOLUTION 7.1Governing Law. This Agreement shall be governed by and construed in accordance with PRC law. 7.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance to resolvesuch dispute through friendly consultation or mediation. 7.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the ChinaInternational Economic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with theCIETAC’s rules in effect at the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitration shallbe English. The tribunal shall consist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost of arbitration shall beallocated as determined by the arbitrators. Equity Option Agreement - 9 - 8.CONFIDENTIALITY 8.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all Confidential Information. Without the priorwritten consent of the other parties, no party shall disclose any Confidential Information to any third party unless the disclosure is required bylaw or by enforceable orders of the court or related government departments. Under such circumstances, the party required to disclose theConfidential Information shall notify the other parties immediately, take all possible measures to minimize the disclosure, and notify thepersons to whom information is being disclosed of the confidentiality obligation. 8.2Obligations upon Termination. Upon termination of this Agreement, each party shall, at the request of the other parties, return anydocument, material, database, equipment, or software containing the Confidential Information to the other parties. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, the parties shall destroy all the Confidential Information and deletethe Confidential Information from any memory devices. No party shall be permitted to continue using the Confidential Information in anyway after the termination of this Agreement. 8.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive after thetermination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. Equity Option Agreement - 10 - 9.MISCELLANEOUS 9.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail, ortelecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given or made shallbe confirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given or made; (b) fornotices delivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) or the 4th day of thedelivery date to an internationally certified delivery institution shall be deemed as having been duly given or made; and (c) for notices bytelecopy, the receipt date showed on the delivery confirming paper of the relevant document shall be deemed as having been duly given ormade. Party A : Beijing Chezhiying Technologies Co., Ltd.Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : +86 10 59857001Attn : Qin ZhiParty B : Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Address : Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857002Attn : Qin ZhiParty C : Beijing Autohome Used Car Brokerage Co., LtdAddress : No. 101 Oudebao Vehicles Trading Market, Huilongguan, Changping District, Beijing, ChinaTel : 86-10-59857002Attn : Qin Zhi 9.2Entire Agreement. This Agreement, the Services Agreement, the Equity Pledge Agreement, and the power of attorney from Party B in favor ofParty A shall constitute the entire agreement among the parties in respect of the subject matter hereof and shall supersede any previousdiscussions, negotiations and agreements related thereto. 9.3Amendment. Without the prior written consent of Party A, neither of Party B or Party C of this Agreement shall be entitled to amend thisAgreement. If required by law, the parties shall obtain all requisite approvals from the relevant authorities to give effect to the amendment. 9.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of any party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shall anysingle or partial exercise of any right, authority or privilege preclude any other future exercise thereof. Equity Option Agreement - 11 -  9.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall notaffect the validity or enforceability of any other provision of this agreement. 9.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 9.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designated parties(natural person or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake the same rights andobligations herein of Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assigns the rights and obligationsunder this Agreement, at the request of Party A, Party B shall execute the relevant agreements and/or documents with respect to such transferor assignment. Party B and Party C shall assign any of its rights or obligations hereunder without the prior written consent of the Party A. 9.8Language and Counterparts. This Agreement is prepared in 3 sets of originals in the English language. Each party shall hold 1 set.[The space below is intentionally left blank.] Equity Option Agreement - 12 - IN WITNESS WHEREOF the parties hereof have caused this Agreement to be executed by their duly authorized representatives as of the date first writtenabove. Party A:Beijing Chezhiying Technology Co., Ltd. ,By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technology Co., Ltd. Party BBeijing Shengtuo Hongyuan Information Technology Co., Ltd.By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Party CBeijing Autohome Used Car Brokerage Co., LtdBy: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Autohome Used Car Brokerage Co., Ltd Equity Option Agreement Exhibit 4.76 Equity Option Agreement amongBeijing Chezhiying Technologies Co., Ltd.andQin ZhiandBeijing Shengtuo Hongyuan Information Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 4 2. PURCHASE AND SALE OF EQUITY INTEREST 5 3. UNDERTAKINGS 5 4. REPRESENTATIONS AND WARRANTIES 8 5. FURTHER WARRANTIES 9 6. TERM 9 7. APPLICABLE LAW AND DISPUTE RESOLUTION 10 8. CONFIDENTIALITY 10 9. MISCELLANEOUS 11 Equity Option Agreement - 2 - THIS EQUITY OPTION AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC).by and among (1)Beijing Chezhiying Technologies Co., Ltd. , a liability limited company incorporated under the PRC laws with itsregistered address at Room1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party A);and (2)Qin Zhi, a PRC citizen, holder of identification card number ***, whose residential address is at Room 452, Unit 4, Building 31, Yuetan SouthStreet, Xicheng District, Beijing, China (Party B);and (3)Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing underthe PRC laws with its legal address at Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party C).Recitals A.Party B holds 50% of the equity interest in Party C. B.Party C is a PRC domestic company lawfully existing in the PRC and engaged in the business of Internet information service. C.On July 8, 2015, a Loan Agreement was entered into between Party A and Party B (Loan Agreement), pursuant to which Party B took a loan(Loan)from, and therefore owes a debt to, Party A to subscribe to the aforementioned 50% equity interest in Party C. D.On July 8, 2015, a Exclusive Technical Consulting and Services Agreement was entered into between Party A and Party C (Services Agreement),pursuant to which Party C will pay a service fee to Party A in consideration for services provided by Party A. Equity Option Agreement - 3 - NOW THEREFORE, the parties agree as follows: 1.DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: Designated Person(s) means 1 or more person(s) designated by Party A;Equity Interest means 50% of the equity interest held by Party B in Party C;Equity PledgeAgreement means the Equity Interest Pledge Agreement entered into by and among Party A and Party B, dated on July8, 2015, under which Party B pledges to Party A Party B’s Equity Interest in consideration for Party C’sperformance of its obligations under the Loan Agreement and Services Agreement;Notice of Purchase means the written notice sent by Party A to exercise the Purchase Right (as defined below), as set forth inArticle 2.2;Person means a person, corporation, joint venture, partnership, enterprise, trust, or non-corporate entity;Purchase Right means an irrevocable right to purchase, at any time, all or part of the Equity Interest held by Party B at aprice equivalent to the lowest price permitted by then-current PRC laws; andSecurity Interest means any third party’s security, right or interest, any right to purchase Party B’s equity interest in Party C,or any right of acquisition, right of set-off, or other security arrangement, including any security interestsubject to this Agreement, the Equity Pledge Agreement or the Loan Agreement. 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. Theuse of the plural shall include the use of the singular, and vice versa. Unless otherwise indicated, a reference to a day, month or year is toa calendar day, month or year. The use of the masculine shall include the use of the feminine, and vice versa. Equity Option Agreement - 4 - 2.PURCHASE AND SALE OF EQUITY INTEREST 2.1Authorization. Party B hereby irrevocably grants Party A or its Designated Person(s) the Purchase Right for his Equity Interest. 2.2Procedures. Upon Party A’s decision to exercise such Purchase Right, it shall send a written Notice of Purchase to Party B setting forthdetails for the purchase. 2.3Exercise of Purchase Right. Every time Party A exercises the Purchase Right: 2.3.1Party B shall supervise and ensure other shareholders of Party C to convene a shareholders meeting, and pass a resolution totransfer the Equity Interest from Party B to Party A and/or the Designated Person; 2.3.2Party B shall, upon the terms and conditions of this Agreement and the Notice of Purchase, enter into all documents requestedby Party A; and 2.3.3Party B and Party C shall execute all documents, acquire all approvals, and perform all actions necessary to transfer the validownership of the Equity Interest to Party A and/or the Designated Person. 2.4Method of Payment. Upon exercise of the Purchase Right by Party A or its Designated Person(s), Party A shall make payment bycancelling all or a portion of the Loan, in the same proportion that Party A or its Designated Person(s) has acquired the Security Interest.In case PRC laws require Party A or its Designated Person(s) to pay to Party B, Party B shall immediately and unconditionally pay ortransfer to Party A any proceeds in whatsoever form obtained from the Party A or its Designated Person(s) at the time such payables arise,after having deducted and paid any and all relevant taxes and expenses applicable to such a shareholder as a result of his receipt of suchproceeds. 3.UNDERTAKINGS 3.1Undertakings of Party C. Party C hereby undertakes that: 3.1.1it will maintain its corporate existence, operate its business, and transact affairs prudently and efficiently in accordance withgood financial and commercial standards and practices; 3.1.2without the prior written consent of Party A, it will not sell, assign, mortgage, or otherwise dispose of any legal or beneficiaryrights to any of its assets, business, or revenues, or permit the creation of any other Security Interest over such rights at any timeafter the execution date of this Agreement; Equity Option Agreement - 5 -  3.1.3without the prior written consent of Party A, it will not incur, assume, guarantee or allow the existence of any debts, except forthose to which Party A has given its written consent; 3.1.4it will always operate its business to maintain the value of its assets, and will not do anything which will affect its businesssituation nor the value of its assets; 3.1.5without the prior written consent of Party A, it will not enter into any contract at an amount exceedingly higher or outside theordinary business; 3.1.6without the prior written consent of Party A, it will not provide any loan to any third party; 3.1.7at the request of Party A, it will provide to Party A all information relating to its operation and financial conditions; 3.1.8without the prior written consent of Party A, it will not be consolidated or merged with any third party, nor acquire or invest inany third party; 3.1.9it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to itsassets, business, or revenues; 3.1.10in order to maintain the ownership of all its assets, it will execute all necessary or appropriate documents, take all necessary orappropriate actions, file all necessary or appropriate charges, and conduct all necessary or appropriate defenses against allclaims; 3.1.11without the prior written consent of Party A, it will not in any form whatsoever allocate dividends to shareholders; and 3.1.12if PRC law requires it to be dissolved or liquidated, it shall sell all of its assets to the extent permitted by PRC laws to Party A oranother qualifying entity designated by Party A, at the lowest selling price permitted by applicable PRC law. Any obligationfor Party A to pay Party C as a result of such transaction shall be forgiven by Party C or any proceeds from such transaction shallbe paid to Party A in partial satisfaction of the service fee under the Services Agreement or remitted to Party A or the qualifyingentity designated by Party A, as applicable under then-current PRC laws. Equity Option Agreement - 6 -  3.2Undertakings of Party B. Party B undertakes on his own behalf that: 3.2.1without the prior written consent of Party A, he will not sell, transfer, mortgage, pledge, grant any option rights or otherwisedispose of any legal or beneficiary rights to the Equity Interest, or permit the creation of any other Security Interest over suchrights at any time, except for the pledge under the Equity Pledge Agreement; 3.2.2without the prior written consent of Party A, he will not vote in favor of, endorse, or sign any shareholders resolution approvingthe sale, assignment, mortgage, or other disposal of the legal or beneficiary rights of any shareholder or allowing the creation ofany other Security Interest over such rights at the shareholders meeting of Party C; 3.2.3without the prior written consent of Party A, he will not vote in favor of, endorse, or sign any shareholders resolution approvingthe consolidation or merger of Party C with any third party or the acquisition of or investment in any third party by Party C atthe shareholders meeting of Party C; 3.2.4he will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating tothe Equity Interest; 3.2.5at the request of Party A, he will cause the shareholders meeting of Party C to vote in favor of the transfer of the Equity Interestas contemplated hereunder; 3.2.6in order to maintain his ownership of the Equity Interest, he will execute all necessary or appropriate documents, take allnecessary or appropriate actions, file all necessary or appropriate charges, or conduct all necessary or appropriate defensesagainst all claims; 3.2.7at the request of Party A, he will appoint the person nominated by Party A as the director of, or to hold any other position in,Party C; 3.2.8at the request of Party A, he will immediately transfer the requested Equity Interest to the Designated Person(s); 3.2.9he will strictly comply with the provisions of this Agreement and any other contracts entered into jointly or separately by theparties hereto, strictly perform the obligations under such contracts, and will not do anything which will affect the validity andenforceability of such contracts; Equity Option Agreement - 7 -  3.2.10he shall not put forward, or vote in favor of, any shareholder resolution to, or otherwise request Party C to, issue any dividendsor other distributions with respect to his equity interest in Party C; provided, however, in the event that he receives any profit,bonus, distribution or dividend from Party C, he shall, as permitted under PRC laws, immediately pay or transfer such profit,bonus, distribution or dividend to Party A or to any party designated by Party A in order to 1) first, to repay in part the Loanpayable under the Loan Agreement; and 2) then, if there is any profit, bonus, distribution or dividend amount remaining, to payin part the service fee under the Services Agreement on behalf of Party C; and 3.2.11after mandatory liquidation described in 3.1.12 above, he will remit in full to the Party A any residual interest he receives in anonreciprocal transfer or cause it happen. If such transfer is prohibited by PRC law, he will remit the proceeds to Party A or itsDesignated Person(s) in a manner permitted under PRC law 4.REPRESENTATIONS AND WARRANTIES 4.1Representations and Warranties of Party B. Party B hereby represents and warrants on his own behalf to Party A that as of the date ofthis Agreement: 4.1.1he has the power and right to sign, deliver, and perform his obligations under this Agreement, and that the said documents shallconstitute his legal, valid, and binding obligations enforceable in accordance with their terms; 4.1.2the execution and delivery of this Agreement or any other contracts, and the performance of his obligations thereunder, will notviolate PRC law, breach or result in a default of any contract or instrument to which he is subject, or result in a breach,suspension, or revocation of any grant, license, or approval or result in the imposition of any additional conditions beingimposed thereon; and 4.1.3he is the lawful owner of the Equity Interest held by himself and has not created any Security Interest over such Equity Interestother than the Equity Pledge Agreement. Equity Option Agreement - 8 -  4.2Representations and Warranties of Party C. Party C represents and warrants to Party A that: 4.2.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.2.2the execution and delivery, of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, conflict with its Articles of Association or other constituent documents, breach or result in a default of anycontract or instrument to which it is subject, or result in a breach, suspension, or revocation of any grant, license, or approval orresult in the imposition of any additional conditions being imposed thereon; 4.2.3it is the lawful owner of its assets, and has not created any Security Interest over such assets; 4.2.4it does not have any outstanding debts other than those incurred in the ordinary course of business and which have beendisclosed to Party A; 4.2.5it will comply with all PRC law applicable to the acquisition of assets; and 4.2.6there is no existing, pending or threatened litigation, arbitration, or administrative proceedings relating to the Equity Interest,its assets, or itself. 5.FURTHER WARRANTIESThe parties to the agreement agree to promptly execute documents reasonably requisite to the performance of the provisions and the aim of thisAgreement or documents beneficial to it, and to take actions reasonably requisite to the performance of the provisions and the aim of thisAgreement or actions beneficial to it. 6.TERMThis Agreement shall take effect as of the Effective Date and shall remain in full force and effect until the earlier of (1) the date on which all of theEquity Interests have been acquired by Party A directly or through its Designated Person(s); or (2) the unilateral termination by Party A (at its soleand absolute discretion), by giving 30 days prior written notice to the Party B of its intention to terminate this Agreement. Equity Option Agreement - 9 - 7.APPLICABLE LAW AND DISPUTE RESOLUTION 7.1Governing Law. This Agreement shall be governed by and construed in accordance with PRC law. 7.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance toresolve such dispute through friendly consultation or mediation. 7.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the ChinaInternational Economic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with theCIETAC’s rules in effect at the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitrationshall be English. The tribunal shall consist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost ofarbitration shall be allocated as determined by the arbitrators. 8.CONFIDENTIALITY 8.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all Confidential Information. Without the priorwritten consent of the other parties, no party shall disclose any Confidential Information to any third party unless the disclosure isrequired by law or by enforceable orders of the court or related government departments. Under such circumstances, the party required todisclose the Confidential Information shall notify the other parties immediately, take all possible measures to minimize the disclosure,and notify the persons to whom information is being disclosed of the confidentiality obligation. 8.2Obligations upon Termination. Upon termination of this Agreement, each party shall, at the request of the other parties, return anydocument, material, database, equipment, or software containing the Confidential Information to the other parties. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, the parties shall destroy all the Confidential Information anddelete the Confidential Information from any memory devices. No party shall be permitted to continue using the ConfidentialInformation in any way after the termination of this Agreement. 8.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive afterthe termination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. Equity Option Agreement - 10 - 9.MISCELLANEOUS 9.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail,or telecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given ormade shall be confirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given ormade; (b) for notices delivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) orthe 4th day of the delivery date to an internationally certified delivery institution shall be deemed as having been duly given or made;and (c) for notices by telecopy, the receipt date showed on the delivery confirming paper of the relevant document shall be deemed ashaving been duly given or made. Party A : Beijing Chezhiying Technologies Co., Ltd.Address : Room 1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : +86 10 59857001Attn : Qin ZhiParty B : Qin ZhiAddress : Room 452, Unit 4, Building 31, Yuetan South Street, Xicheng District, Beijing, ChinaTel : +86 13511021165Attn : Qin ZhiParty C : Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Address : Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857002Attn : Qin Zhi 9.2Entire Agreement. This Agreement, the Services Agreement, the Loan Agreement, the Equity Pledge Agreement, and the power ofattorney from Party B in favor of Party A shall constitute the entire agreement among the parties in respect of the subject matter hereofand shall supersede any previous discussions, negotiations and agreements related thereto. Equity Option Agreement - 11 -  9.3Amendment. Without the prior written consent of Party A, neither of Party B or Party C of this Agreement shall be entitled to amend thisAgreement. If required by law, the parties shall obtain all requisite approvals from the relevant authorities to give effect to theamendment. 9.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of any party to exercise any right,authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiver thereof; nor shallany single or partial exercise of any right, authority or privilege preclude any other future exercise thereof. 9.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shall notaffect the validity or enforceability of any other provision of this agreement. 9.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 9.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designated parties(natural person or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake the same rightsand obligations herein of Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assigns the rights andobligations under this Agreement, at the request of Party A, Party B shall execute the relevant agreements and/or documents with respectto such transfer or assignment. Party B and Party C shall assign any of its rights or obligations hereunder without the prior writtenconsent of the Party A. 9.8Language and Counterparts. This Agreement is prepared in 3 sets of originals in the English language. Each party shall hold 1 set.[The space below is intentionally left blank.] Equity Option Agreement - 12 - IN WITNESS WHEREOF the parties hereof have caused this Agreement to be executed by their duly authorized representatives as of the date first writtenabove.Party A:Beijing Chezhiying Technologies Co., Ltd. By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technologies Co., Ltd.Party B:Qin Zhi By: /s/ Qin ZhiName: Qin Zhi Party CBeijing Shengtuo Hongyuan Information Technology Co., Ltd.By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Equity Option Agreement Exhibit 4.77 Equity Option Agreement amongBeijing Chezhiying Technologies Co., Ltd.andFan ZhengandBeijing Shengtuo Hongyuan Information Technology Co., Ltd.July 8, 2015TABLE OF CONTENTS Articles Pages 1. DEFINITIONS AND INTERPRETATIONS 4 2. PURCHASE AND SALE OF EQUITY INTEREST 5 3. UNDERTAKINGS 5 4. REPRESENTATIONS AND WARRANTIES 8 5. FURTHER WARRANTIES 9 6. TERM 9 7. APPLICABLE LAW AND DISPUTE RESOLUTION 10 8. CONFIDENTIALITY 10 9. MISCELLANEOUS 11 Equity Option Agreement - 2 - THIS EQUITY OPTION AGREEMENT (Agreement) is entered into on July 8, 2015 in Beijing, People’s Republic of China (PRC).by and among (1)Beijing Chezhiying Technologies Co., Ltd. , a liability limited company incorporated under the PRC laws with itsregistered address at Room1117, F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party A);and (2)Fan Zheng, a PRC citizen, holder of identification card number ***, whose residential address is at Room 302, Unit 2, Building 2, No. 336, XinshiNorth Road, Qiaoxi District, Shijiazhuang, Hebei Province, China (Party B);and (3)Beijing Shengtuo Hongyuan Information Technology Co., Ltd. , a company duly organized and existing underthe PRC laws with its legal address at Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, China (Party C).Recitals A.Party B holds 50% of the equity interest in Party C. B.Party C is a PRC domestic company lawfully existing in the PRC and engaged in the business of Internet information service. C.On July 8, 2015, a Loan Agreement was entered into between Party A and Party B (Loan Agreement), pursuant to which Party B took a loan(Loan)from, and therefore owes a debt to, Party A to subscribe to the aforementioned 50% equity interest in Party C. D.On July 8, 2015, a Exclusive Technical Consulting and Services Agreement was entered into between Party A and Party C (Services Agreement),pursuant to which Party C will pay a service fee to Party A in consideration for services provided by Party A. Equity Option Agreement - 3 - NOW THEREFORE, the parties agree as follows: 1.DEFINITIONS AND INTERPRETATIONS 1.1Definitions. Unless otherwise provided in this Agreement, the following terms shall have the meanings set forth below: Designated Person(s) means 1 or more person(s) designated by Party A;Equity Interest means 50% of the equity interest held by Party B in Party C;Equity PledgeAgreement means the Equity Interest Pledge Agreement entered into by and among Party A and Party B, dated on July8, 2015, under which Party B pledges to Party A Party B’s Equity Interest in consideration for Party C’sperformance of its obligations under the Loan Agreement and Services Agreement;Notice of Purchase means the written notice sent by Party A to exercise the Purchase Right (as defined below), as set forth inArticle 2.2;Person means a person, corporation, joint venture, partnership, enterprise, trust, or non-corporate entity;Purchase Right means an irrevocable right to purchase, at any time, all or part of the Equity Interest held by Party B at aprice equivalent to the lowest price permitted by then-current PRC laws; andSecurity Interest means any third party’s security, right or interest, any right to purchase Party B’s equity interest in Party C,or any right of acquisition, right of set-off, or other security arrangement, including any security interestsubject to this Agreement, the Equity Pledge Agreement or the Loan Agreement. 1.2Interpretations. All headings used are for reference purposes only and do not affect the meaning or interpretation of any provision. Theuse of the plural shall include the use of the singular, and vice versa. Unless otherwise indicated, a reference to a day, month or year is toa calendar day, month or year. The use of the masculine shall include the use of the feminine, and vice versa. Equity Option Agreement - 4 - 2.PURCHASE AND SALE OF EQUITY INTEREST 2.1Authorization. Party B hereby irrevocably grants Party A or its Designated Person(s) the Purchase Right for his Equity Interest. 2.2Procedures. Upon Party A’s decision to exercise such Purchase Right, it shall send a written Notice of Purchase to Party B setting forthdetails for the purchase. 2.3Exercise of Purchase Right. Every time Party A exercises the Purchase Right: 2.3.1Party B shall supervise and ensure other shareholders of Party C to convene a shareholders meeting, and pass a resolution totransfer the Equity Interest from Party B to Party A and/or the Designated Person; 2.3.2Party B shall, upon the terms and conditions of this Agreement and the Notice of Purchase, enter into all documents requestedby Party A; and 2.3.3Party B and Party C shall execute all documents, acquire all approvals, and perform all actions necessary to transfer the validownership of the Equity Interest to Party A and/or the Designated Person. 2.4Method of Payment. Upon exercise of the Purchase Right by Party A or its Designated Person(s), Party A shall make payment bycancelling all or a portion of the Loan, in the same proportion that Party A or its Designated Person(s) has acquired the Security Interest.In case PRC laws require Party A or its Designated Person(s) to pay to Party B, Party B shall immediately and unconditionally pay ortransfer to Party A any proceeds in whatsoever form obtained from the Party A or its Designated Person(s) at the time such payables arise,after having deducted and paid any and all relevant taxes and expenses applicable to such a shareholder as a result of his receipt of suchproceeds. 3.UNDERTAKINGS 3.1Undertakings of Party C. Party C hereby undertakes that: 3.1.1it will maintain its corporate existence, operate its business, and transact affairs prudently and efficiently in accordance withgood financial and commercial standards and practices; 3.1.2without the prior written consent of Party A, it will not sell, assign, mortgage, or otherwise dispose of any legal or beneficiaryrights to any of its assets, business, or revenues, or permit the creation of any other Security Interest over such rights at any timeafter the execution date of this Agreement; Equity Option Agreement - 5 -  3.1.3without the prior written consent of Party A, it will not incur, assume, guarantee or allow the existence of any debts, except forthose to which Party A has given its written consent; 3.1.4it will always operate its business to maintain the value of its assets, and will not do anything which will affect its businesssituation nor the value of its assets; 3.1.5without the prior written consent of Party A, it will not enter into any contract at an amount exceedingly higher or outside theordinary business; 3.1.6without the prior written consent of Party A, it will not provide any loan to any third party; 3.1.7at the request of Party A, it will provide to Party A all information relating to its operation and financial conditions; 3.1.8without the prior written consent of Party A, it will not be consolidated or merged with any third party, nor acquire or invest inany third party; 3.1.9it will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating to itsassets, business, or revenues; 3.1.10in order to maintain the ownership of all its assets, it will execute all necessary or appropriate documents, take all necessary orappropriate actions, file all necessary or appropriate charges, and conduct all necessary or appropriate defenses against allclaims; 3.1.11without the prior written consent of Party A, it will not in any form whatsoever allocate dividends to shareholders; and 3.1.12if PRC law requires it to be dissolved or liquidated, it shall sell all of its assets to the extent permitted by PRC laws to Party A oranother qualifying entity designated by Party A, at the lowest selling price permitted by applicable PRC law. Any obligationfor Party A to pay Party C as a result of such transaction shall be forgiven by Party C or any proceeds from such transaction shallbe paid to Party A in partial satisfaction of the service fee under the Services Agreement or remitted to Party A or the qualifyingentity designated by Party A, as applicable under then-current PRC laws. Equity Option Agreement - 6 -  3.2Undertakings of Party B. Party B undertakes on his own behalf that: 3.2.1without the prior written consent of Party A, he will not sell, transfer, mortgage, pledge, grant any option rights or otherwisedispose of any legal or beneficiary rights to the Equity Interest, or permit the creation of any other Security Interest over suchrights at any time, except for the pledge under the Equity Pledge Agreement; 3.2.2without the prior written consent of Party A, he will not vote in favor of, endorse, or sign any shareholders resolution approvingthe sale, assignment, mortgage, or other disposal of the legal or beneficiary rights of any shareholder or allowing the creation ofany other Security Interest over such rights at the shareholders meeting of Party C; 3.2.3without the prior written consent of Party A, he will not vote in favor of, endorse, or sign any shareholders resolution approvingthe consolidation or merger of Party C with any third party or the acquisition of or investment in any third party by Party C atthe shareholders meeting of Party C; 3.2.4he will promptly inform Party A of any existing or threatened litigation, arbitration, or administrative proceedings relating tothe Equity Interest; 3.2.5at the request of Party A, he will cause the shareholders meeting of Party C to vote in favor of the transfer of the Equity Interestas contemplated hereunder; 3.2.6in order to maintain his ownership of the Equity Interest, he will execute all necessary or appropriate documents, take allnecessary or appropriate actions, file all necessary or appropriate charges, or conduct all necessary or appropriate defensesagainst all claims; 3.2.7at the request of Party A, he will appoint the person nominated by Party A as the director of, or to hold any other position in,Party C; 3.2.8at the request of Party A, he will immediately transfer the requested Equity Interest to the Designated Person(s); 3.2.9he will strictly comply with the provisions of this Agreement and any other contracts entered into jointly or separately by theparties hereto, strictly perform the obligations under such contracts, and will not do anything which will affect the validity andenforceability of such contracts; Equity Option Agreement - 7 -  3.2.10he shall not put forward, or vote in favor of, any shareholder resolution to, or otherwise request Party C to, issue any dividendsor other distributions with respect to his equity interest in Party C; provided, however, in the event that he receives any profit,bonus, distribution or dividend from Party C, he shall, as permitted under PRC laws, immediately pay or transfer such profit,bonus, distribution or dividend to Party A or to any party designated by Party A in order to 1) first, to repay in part the Loanpayable under the Loan Agreement; and 2) then, if there is any profit, bonus, distribution or dividend amount remaining, to payin part the service fee under the Services Agreement on behalf of Party C; and 3.2.11after mandatory liquidation described in 3.1.12 above, he will remit in full to the Party A any residual interest he receives in anonreciprocal transfer or cause it happen. If such transfer is prohibited by PRC law, he will remit the proceeds to Party A or itsDesignated Person(s) in a manner permitted under PRC law 4.REPRESENTATIONS AND WARRANTIES 4.1Representations and Warranties of Party B. Party B hereby represents and warrants on his own behalf to Party A that as of the date ofthis Agreement: 4.1.1he has the power and right to sign, deliver, and perform his obligations under this Agreement, and that the said documents shallconstitute his legal, valid, and binding obligations enforceable in accordance with their terms; 4.1.2the execution and delivery of this Agreement or any other contracts, and the performance of his obligations thereunder, will notviolate PRC law, breach or result in a default of any contract or instrument to which he is subject, or result in a breach,suspension, or revocation of any grant, license, or approval or result in the imposition of any additional conditions beingimposed thereon; and 4.1.3he is the lawful owner of the Equity Interest held by himself and has not created any Security Interest over such Equity Interestother than the Equity Pledge Agreement. Equity Option Agreement - 8 -  4.2Representations and Warranties of Party C. Party C represents and warrants to Party A that: 4.2.1it has the power and right to sign, deliver, and perform its obligations under this Agreement, and said documents shallconstitute its legal, valid, and binding obligations enforceable in accordance with their terms; 4.2.2the execution and delivery, of this Agreement or any other contracts, and the performance of its obligations thereunder, will notviolate PRC law, conflict with its Articles of Association or other constituent documents, breach or result in a default of anycontract or instrument to which it is subject, or result in a breach, suspension, or revocation of any grant, license, or approval orresult in the imposition of any additional conditions being imposed thereon; 4.2.3it is the lawful owner of its assets, and has not created any Security Interest over such assets; 4.2.4it does not have any outstanding debts other than those incurred in the ordinary course of business and which have beendisclosed to Party A; 4.2.5it will comply with all PRC law applicable to the acquisition of assets; and 4.2.6there is no existing, pending or threatened litigation, arbitration, or administrative proceedings relating to the Equity Interest,its assets, or itself. 5.FURTHER WARRANTIESThe parties to the agreement agree to promptly execute documents reasonably requisite to the performance of the provisions and the aim of thisAgreement or documents beneficial to it, and to take actions reasonably requisite to the performance of the provisions and the aim of thisAgreement or actions beneficial to it. 6.TERMThis Agreement shall take effect as of the Effective Date and shall remain in full force and effect until the earlier of (1) the date on which all of theEquity Interests have been acquired by Party A directly or through its Designated Person(s); or (2) the unilateral termination by Party A (at its soleand absolute discretion), by giving 30 days prior written notice to the Party B of its intention to terminate this Agreement. Equity Option Agreement - 9 - 7.APPLICABLE LAW AND DISPUTE RESOLUTION 7.1Governing Law. This Agreement shall be governed by and construed in accordance with PRC law. 7.2Consultation and Mediation. If any dispute arises in connection with this Agreement, the parties shall attempt in the first instance toresolve such dispute through friendly consultation or mediation. 7.3Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement shall be submitted to the ChinaInternational Economic and Trade Arbitration Commission (CIETAC) for arbitration, which shall be conducted in accordance with theCIETAC’s rules in effect at the time of applying for arbitration. The place of arbitration shall be Beijing. The language of the arbitrationshall be English. The tribunal shall consist of 3 arbitrators. The arbitral award is final and binding upon the parties. The cost ofarbitration shall be allocated as determined by the arbitrators. 8.CONFIDENTIALITY 8.1Confidentiality Obligations. The parties shall protect and maintain the confidentiality of all Confidential Information. Without the priorwritten consent of the other parties, no party shall disclose any Confidential Information to any third party unless the disclosure isrequired by law or by enforceable orders of the court or related government departments. Under such circumstances, the party required todisclose the Confidential Information shall notify the other parties immediately, take all possible measures to minimize the disclosure,and notify the persons to whom information is being disclosed of the confidentiality obligation. 8.2Obligations upon Termination. Upon termination of this Agreement, each party shall, at the request of the other parties, return anydocument, material, database, equipment, or software containing the Confidential Information to the other parties. If, for any reason, suchdocument, material, database, equipment, or software cannot be returned, the parties shall destroy all the Confidential Information anddelete the Confidential Information from any memory devices. No party shall be permitted to continue using the ConfidentialInformation in any way after the termination of this Agreement. 8.3No Time Limit. There is no time limit to the confidentiality obligations stipulated in this Article, which obligations will survive afterthe termination of this Agreement unless the Confidential Information is disclosed to the public for reasons not due to the breach of thisAgreement by any party. Equity Option Agreement - 10 - 9.MISCELLANEOUS 9.1Notices. All notices or other communications sent by either party shall be written in English or Chinese, and delivered in person, by mail,or telecopy, to the other party at the following addresses. The date at which the communication shall be deemed to be duly given ormade shall be confirmed as follows: (a) for notices delivered in person, the date of delivery shall be deemed as having been duly given ormade; (b) for notices delivered by mail, the 10th day of the delivery date of air certified mail with postage prepaid (as shown on stamp) orthe 4th day of the delivery date to an internationally certified delivery institution shall be deemed as having been duly given or made;and (c) for notices by telecopy, the receipt date showed on the delivery confirming paper of the relevant document shall be deemed ashaving been duly given or made. Party A : Beijing Chezhiying Technologies Co., Ltd.Address : Room 1117,F/11, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : +86 10 59857001Attn : Qin ZhiParty B : Fan ZhengAddress : Room 302, Unit 2, Building 2, No. 336, Xinshi North Road, Qiaoxi District, Shijiazhuang, HebeiProvince, ChinaTel : +86 18631100000Attn : Fan ZhengParty C : Beijing Shengtuo Hongyuan Information Technology Co., Ltd.Address : Room 1005, Tower B, No. 3, Danling Street, Haidian District, Beijing 100080, ChinaTel : 86-10-59857002Attn : Qin Zhi 9.2Entire Agreement. This Agreement, the Services Agreement, the Loan Agreement, the Equity Pledge Agreement, and the power ofattorney from Party B in favor of Party A shall constitute the entire agreement among the parties in respect of the subject matter hereofand shall supersede any previous discussions, negotiations and agreements related thereto. Equity Option Agreement - 11 -  9.3Amendment. Without the prior written consent of Party A, neither of Party B or Party C of this Agreement shall be entitled to amendthis Agreement. If required by law, the parties shall obtain all requisite approvals from the relevant authorities to give effect to theamendment. 9.4No Waiver. Unless otherwise agreed upon by the parties in writing, any failure or delay on the part of any party to exercise anyright, authority or privilege under this Agreement, or under any other agreement relating hereto, shall not operate as a waiverthereof; nor shall any single or partial exercise of any right, authority or privilege preclude any other future exercise thereof. 9.5Severability. The provisions of this agreement are severable from each other. The invalidity of any provision of this agreement shallnot affect the validity or enforceability of any other provision of this agreement. 9.6Successors. This Agreement shall be valid and binding on the parties, their successors and permitted assigns. 9.7Assignment. Party A may transfer or assign any or all of its rights and obligations under this Agreement to any of its designatedparties (natural person or legal entity) at any time. In such circumstances, the transferee or assignee shall enjoy and undertake thesame rights and obligations herein of Party A as if the transferee or assignee is Party A hereunder. When Party A transfers or assignsthe rights and obligations under this Agreement, at the request of Party A, Party B shall execute the relevant agreements and/ordocuments with respect to such transfer or assignment. Party B and Party C shall assign any of its rights or obligations hereunderwithout the prior written consent of the Party A. 9.8Language and Counterparts. This Agreement is prepared in 3 sets of originals in the English language. Each party shall hold 1 set.[The space below is intentionally left blank.] Equity Option Agreement - 12 - IN WITNESS WHEREOF the parties hereof have caused this Agreement to be executed by their duly authorized representatives as of the date first writtenabove.Party A:Beijing Chezhiying Technologies Co., Ltd. By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany Seal: /s/ Beijing Chezhiying Technologies Co., Ltd.Party B:Fan Zheng By: /s/ Fan ZhengName: Fan ZhengParty CBeijing Shengtuo Hongyuan Information Technology Co., Ltd.By: /s/ Qin ZhiName: Qin ZhiTitle: Legal RepresentativeCompany seal: /s/ Beijing Shengtuo Hongyuan Information Technology Co., Ltd. Equity Option Agreement Exhibit 4.78AUTOHOME INC.2016 SHARE INCENTIVE PLANARTICLE 1PURPOSEThe purpose of the Autohome Inc. 2016 Share Incentive Plan (the “Plan”) is to promote the success and enhance the value of Autohome Inc., acompany formed under the laws of the Cayman Islands (the “Company”), by linking the personal interests of the Directors, Employees, and Consultants tothose of the Company’s shareholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to theCompany’s shareholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services ofDirectors, Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largelydependent.ARTICLE 2DEFINITIONS AND CONSTRUCTIONWherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise.The singular pronoun shall include the plural where the context so indicates.2.1 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities,tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system, of anyjurisdiction applicable to Awards granted to residents therein.2.2 “Award” means an Option, Restricted Share or Restricted Share Unit award and share appreciation rights granted to a Participant pursuant tothe Plan.2.3 “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an Award, including throughelectronic medium.2.4 “Board” means the Board of Directors of the Company.2.5 “Cause” shall mean (i) performing an act or failing to perform any act in bad faith and to the detriment of the Company or any other ServiceRecipient; (ii) engaging in dishonesty, intentional misconduct or material breach of any agreement with the Company or any other Service Recipient;or (iii) conviction of, or plea of guilty or no contest to, a felony or any other crime involving dishonesty, breach of trust, or physical or emotional harmto any person.2.6 “Code” means the Internal Revenue Code of 1986 of the United States, as amended.2.7 “Committee” has the meaning described in Article 10.2.8 “Consultant” means any consultant or adviser if: (a) the consultant or adviser renders bona fide services to a Service Recipient; (b) theservices rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do notdirectly or indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser is a natural person who hascontracted directly with the Service Recipient to render such services.2.9 “Corporate Transaction”, unless otherwise defined in an Award Agreement, means any of the following transactions, provided, however, thatthe Committee shall determine under (d) and (e) whether multiple transactions are related, and its determination shall be final, binding and conclusiveand, provided further, that the occurrence of a Trading Date shall not constitute a Corporate Transaction:(a) an amalgamation, arrangement, merger or consolidation or scheme of arrangement (i) in which the Company is not the survivingentity, except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated, or (ii) the holders of thevoting securities of the Company immediately prior to the transaction or their respective affiliates do not continue to hold more than 50% of the combinedvoting power of the voting securities of the surviving entity (or, as applicable, any Parent of such surviving entity) immediately following the transaction;(b) the sale, transfer or other disposition of all or substantially all of the assets of the Company;(c) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company;(d) any reverse takeover or series of related transactions culminating in a reverse takeover (including, but not limited to, a tender offerfollowed by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity securities outstanding immediately prior to suchtakeover are converted or exchanged by virtue of the takeover into other property, whether in the form of securities, cash or otherwise, or (B) in whichsecurities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person orpersons (other than to an affiliate) different from those who held such securities immediately prior to such takeover or the initial transaction culminating insuch takeover, but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction; or(e) acquisition in a single or series of related transactions by any person or related group of persons of beneficial ownership (within themeaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’soutstanding securities but excluding any such transaction or series of related transactions that the Committee determines shall not be a CorporateTransaction; provided, however, that any of the following acquisitions shall not be deemed to be a Corporate Transaction: (1) by the Company, any Parent,Subsidiary or Related Entity, (2) by any employee benefit plan (or related trust) sponsored or maintained by the Company, any Parent, Subsidiary or RelatedEntity, or (3) by any underwriter temporarily holding securities pursuant to an offering of such securities. 22.10 “Date of Grant” means, with respect to an Award, the date that the Award is granted and its exercise price is set (if applicable), consistentwith Applicable Laws and applicable financial accounting rules.2.11 “Director” means a member of the Board.2.12 “Disability”, unless otherwise defined in an Award Agreement, means that the Participant qualifies to receive long-term disability paymentsunder the Service Recipient’s long-term disability insurance program, as it may be amended from time to time, to which the Participant providesservices regardless of whether the Participant is covered by such policy. If the Service Recipient to which the Participant provides service does nothave a long-term disability plan in place, “Disability” means that a Participant is unable to carry out the responsibilities and functions of the positionheld by the Participant by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutivedays. A Participant will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy theCommittee in its discretion.2.13 “Effective Date” shall have the meaning set forth in Section 11.1.2.14 “Employee” means any person employed by the Company or any Parent or Subsidiary of the Company.2.15 “Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended.2.16 “Fair Market Value” means, as of any date, the value of Shares determined as follows:(a) If the Shares are listed on one or more established stock exchanges or national market systems, including without limitation, The NewYork Stock Exchange or The Nasdaq Stock Market, the Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales werereported) as quoted on the principal exchange or system on which the Shares are listed (as determined by the Committee) on the date of determination (or, ifno closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), asreported in The Wall Street Journal or such other source as the Committee deems reliable;(b) If the Shares are regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securitiesdealer, the Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities dealer on the date ofdetermination, but if selling prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid and low asked prices for theShares on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall StreetJournal or such other source as the Committee deems reliable; or 3(c) In the absence of an established market for the Shares of the type described in (a) and (b), above, the Fair Market Value thereof shallbe determined by the Committee in good faith and in its discretion.2.17 “Fiscal Year” means a fiscal year of the Company.2.18 “Incentive Share Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provisionthereto.2.19 “Independent Director” means a Director who meets the independence standards under the applicable corporate governance rules of thestock exchange and any other Applicable Laws.2.20 “Non-Qualified Share Option” means an Option that is not intended to be an Incentive Share Option.2.21 “Option” means a right granted to a Participant pursuant to Article 5 of the Plan to purchase a specified number of Shares at a specified priceduring specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option.2.22 “Participant” means a person who, as a Director, a Consultant or an Employee, has been granted an Award pursuant to the Plan.2.23 “Parent” means a parent corporation under Section 424(e) of the Code.2.24 “Plan” means this Autohome Inc. 2016 Share Incentive Plan, as it may be amended from time to time.2.25 “Related Entity” means any business, corporation, partnership, limited liability company or other entity in which the Company or a Parentor Subsidiary of the Company holds a substantial ownership interest, directly or indirectly, but which is not a Subsidiary and which the Boarddesignates as a Related Entity for purposes of the Plan.2.26 “Restricted Share” means a Share awarded to a Participant pursuant to Article 6 that is subject to certain restrictions and may be subject torisk of forfeiture.2.27 “Restricted Share Unit” means the right granted to a Participant pursuant to Article 7 to receive a Share at a future date.2.28 “Restriction Period” means the period during which the transfer of Restricted Shares are subject to restrictions, which restrictions may bebased on the passage of time, the achievement of certain performance objectives, or the occurrence of other events as determined by the Committee, inits discretion. 42.29 “Securities Act” means the Securities Act of 1933 of the United States, as amended.2.30 “Service Recipient” means the Company or any Parent or Subsidiary of the Company and any Related Entity to which a Participantprovides services as an Employee, a Consultant or a Director.2.31 “Share” means a Class A Ordinary Share, as defined in the fourth amended articles of association of the Company adopted by a specialresolution of shareholders on October 28, 2013, and such other securities of the Company that may be substituted for Shares pursuant to Article 9.2.32 “Subsidiary” means any corporation or other entity of which a majority of the outstanding voting shares or voting power is beneficiallyowned or controlled through contractual arrangements directly or indirectly by the Company.2.33 “Trading Date” means the closing of the first sale to the general public of the Shares pursuant to a registration statement filed with anddeclared effective by the U.S. Securities and Exchange Commission under the Securities Act.2.34 “Trading Window Days” means the days which the Participant is not prohibited by the Company’s policy from trading.ARTICLE 3SHARES SUBJECT TO THE PLAN3.1 Number of Shares.(a) Subject to the provisions of Article 9 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant toall Awards (including Incentive Share Options) shall be 4,890,000 Shares.(b) To the extent that an Award terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be available forthe grant of an Award pursuant to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption of, or in substitution for, anyoutstanding awards of any entity acquired in any form or combination by the Company or any Parent or Subsidiary of the Company shall not be countedagainst Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company upon the exercise of any Award underthe Plan, in payment of the exercise price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitationsof Section 3.1(a). If any Restricted Shares are forfeited by the Participant or repurchased by the Company, such Shares may again be optioned, granted orawarded hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned,granted or awarded if such action would cause an Incentive Share Option to fail to qualify under Section 422 of the Code. 53.2 Shares Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasuryshares (subject to Applicable Laws) or Shares purchased on the open market. Additionally, in the discretion of the Committee, American DepositoryShares in an amount equivalent to the number of Shares which otherwise would be distributed pursuant to an Award may be distributed in lieu ofShares in settlement of any Award. If the number of Shares represented by an American Depository Share is other than on a one-to-one basis, thelimitations of Section 3.1 shall be adjusted to reflect the distribution of American Depository Shares in lieu of Shares.ARTICLE 4ELIGIBILITY AND PARTICIPATION4.1 Eligibility. Persons eligible to participate in this Plan include Employees, Consultants, and all Directors, as determined by the Committee.4.2 Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from among all eligible individuals, thoseto whom Awards shall be granted and shall determine the nature and amount of each Award. Except as provided in one or more written contractsbetween the Company and an individual, no individual shall have any right to be granted an Award pursuant to this Plan.ARTICLE 5OPTIONS5.1 General. The Committee is authorized to grant Options to Participants on the following terms and conditions:(a) Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Employees, Consultants or Directors atany time and from time to time as determined by the Committee. The Committee, in its sole discretion, shall determine the number of Shares subject to eachOption. The Committee may grant Incentive Share Options, Non-Qualified Share Options, or a combination thereof.(b) Exercise Price. The exercise price per Share subject to an Option shall be determined by the Committee and set forth in the AwardAgreement which may be a fixed or variable price related to the Fair Market Value of the Shares, to the extent not prohibited by the Applicable Laws. Theexercise price per Share subject to an Option may be amended or adjusted in the absolute discretion of the Committee, the determination of which shall befinal, binding and conclusive.(c) Time and Conditions of Exercise; Term. The Committee shall determine the time or times at which an Option may be exercised inwhole or in part. The Committee shall also determine any conditions, including performance conditions, if any, that must be satisfied before all or part of anOption may be exercised. The Committee shall determine the term of the Option, provided that the term of any Option granted under the Plan shall notexceed ten years from the Date of Grant and, provided further, that in the case of an Incentive Share Option granted to an Employee who, immediately prior tothe time the Incentive Share Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of theCompany or any Parent or Subsidiary of the Company, the term of the Incentive Share Option shall be no longer than five (5) years from the Date of Grant. 6(d) Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment,including, without limitation (i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the Applicable Laws, cash or check in ChineseRenminbi, (iii) cash or check denominated in any other local currency as approved by the Committee, (iv) Shares held for such period of time as may berequired by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market Value on the date of delivery equal to theaggregate exercise price of the Option or exercised portion thereof, (v) after the Trading Date the delivery of a notice that the Participant has placed a marketsell order with a broker with respect to Shares then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion ofthe net proceeds of the sale to the Company in satisfaction of the Option exercise price; provided that payment of such proceeds is then made to theCompany upon settlement of such sale, (vi) other property acceptable to the Committee with a Fair Market Value equal to the exercise price, or (vii) anycombination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a Director or an “executive officer” ofthe Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of an Option in any method which wouldviolate Section 13(k) of the Exchange Act.(e) Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant. The AwardAgreement shall include such additional provisions as may be specified by the Committee.(f) Expiration of Option. Except as otherwise provided in an Award Agreement or in Section 5.2 of the Plan with respect to IncentiveShare Options, Options may not be exercised to any extent by anyone after the first to occur of the following events:(i) Ten years from the Date of Grant, unless an earlier time is set in the Award Agreement;(ii) Sixty (60) Trading Window Days after the Participant’s termination of employment and service for any reason other thanCause, death or Disability;(iii) Upon the Participant’s termination of employment for Cause; and(iv) Three (3) months after the date of the Participant’s termination of employment and service on account of Disability or death.Upon the Participant’s Disability or death, any Options exercisable as of the Participant’s Disability or death may be exercised by the Participant’s legalrepresentative or representatives, by the person or persons entitled to do so pursuant to the Participant’s last will and testament, or, if the Participant fails tomake testamentary disposition of such Option or dies intestate, by the person or persons entitled to receive the Option pursuant to the applicable laws ofdescent and distribution. 7Any Options not exercised within the period of time required pursuant to the earliest to occur of the events described in (i) –(iv) above shall terminate and the Shares covered by such Option shall revert to the Plan. In addition, except as otherwise provided in an Award Agreement,if, on the date of termination, the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall beforfeited by the Participant and shall immediately revert to the Plan. If the Participant’s employment is terminated for Cause, the Company has the right tocancel, forfeit and revoke the Shares underlying the exercised Options, or seek damages or compensation.5.2 Incentive Share Options. Incentive Share Options, which shall be no greater than 20% of the size of the total pool, may be granted toEmployees of the Company or a Parent or Subsidiary of the Company.(a) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares withrespect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed US$100,000 or such other limitation asimposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options are first exercisable by a Participant in excessof such limitation, the excess shall be considered Non-Qualified Share Options.(b) Exercise Price. The exercise price of an Incentive Share Option shall be equal to the Fair Market Value on the date of grant. However,the exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares possessing more than ten percent of the totalcombined voting power of all classes of shares of the Company may not be less than 110% of Fair Market Value on the date of grant and such Option may notbe exercisable for more than five years from the date of grant.(c) Notice of Disposition. The Participant shall give the Company prompt notice of any disposition of Shares acquired by exercise of anIncentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares to theParticipant.(d) Expiration of Incentive Share Options. No Award of an Incentive Share Option may be made pursuant to this Plan after the tenthanniversary of the Effective Date.(e) Right to Exercise. During a Participant’s lifetime, an Incentive Share Option may be exercised only by the Participant.ARTICLE 6RESTRICTED SHARES6.1 Grant of Restricted Shares. The Committee, at any time and from time to time, may grant Restricted Shares to Participants as the Committee,in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted Shares to be granted to eachParticipant. 86.2 Restricted Shares Award Agreement. Each Award of Restricted Shares shall be evidenced by an Award Agreement that shall specify theRestriction Period, the number of Restricted Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shalldetermine. Unless the Committee determines otherwise, Restricted Shares shall be held by the Company as escrow agent until the restrictions on suchRestricted Shares have lapsed.6.3 Issuance and Restrictions. Restricted Shares shall be subject to such restrictions on transferability and other restrictions as the managementmay impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to receive dividends on the Restricted Share).These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments, or otherwise, as theCommittee determines at the time of the grant of the Award or thereafter.6.4 Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon terminationof employment or service during the applicable Restriction Period, Restricted Shares that are at that time subject to restrictions shall be forfeited orrepurchased in accordance with the Award Agreement; provided, however, the management may (a) provide in any Restricted Share Award Agreementthat restrictions or forfeiture and repurchase conditions relating to Restricted Shares will be waived in whole or in part in the event of terminationsresulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relating to RestrictedShares.6.5 Certificates for Restricted Shares. Restricted Shares granted pursuant to the Plan may be evidenced in such manner as the Committee shalldetermine. If certificates representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legendreferring to the terms, conditions, and restrictions applicable to such Restricted Shares, and the Company may, at its discretion, retain physicalpossession of the certificate until such time as all applicable restrictions lapse.6.6 Removal of Restrictions. Except as otherwise provided in this Article 6, Restricted Shares granted under the Plan shall be released fromescrow as soon as practicable after the last day of the Restriction Period. The Committee, in its discretion, may accelerate the time at which anyrestrictions shall lapse or be removed. After the restrictions have lapsed, the Participant shall be entitled to have any legend or legends underSection 6.5 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant, subject to applicable legalrestrictions. The Committee (in its discretion) may establish procedures regarding the release of Shares from escrow and the removal of legends, asnecessary or appropriate to minimize administrative burdens on the Company.ARTICLE 7RESTRICTED SHARE UNITS7.1 Grant of Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share Units to Participants as theCommittee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Restricted Share Units to begranted to each Participant. 97.2 Restricted Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement that shall specifyany vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as the Committee, in its sole discretion,shall determine.7.3 Performance Objectives and Other Terms. The Committee, in its discretion, may set performance objectives or other vesting criteria which,depending on the extent to which they are met, will determine the number or value of Restricted Share Units that will be paid out to the Participants.7.4 Form and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the date or dates and/or event orevents upon which the Restricted Share Units shall become fully vested and nonforfeitable. Upon vesting, the Committee, in its sole discretion, maypay Restricted Share Units in the form of cash, in Shares or in a combination thereof.7.5 Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon terminationof employment and service during the applicable restriction period, Restricted Share Units that are at that time unvested shall be forfeited orrepurchased in accordance with the Award Agreement; provided, however, the Committee may (a) provide in any Restricted Share Unit AwardAgreement that restrictions or forfeiture and repurchase conditions relating to Restricted Share Units will be waived in whole or in part in the event ofterminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relatingto Restricted Share Units.ARTICLE 8PROVISIONS APPLICABLE TO AWARDS8.1 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and limitations foreach Award, which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, andthe Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award.8.2 Limits on Transfer. No right or interest of a Participant in any Award may be pledged, encumbered, or hypothecated to or in favor of anyparty other than the Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any other party other thanthe Company or a Subsidiary. Except as otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by aParticipant other than by will or the laws of descent and distribution. Nevertheless, an Award (other than an Incentive Share Option) can be transferredto the immediate family members of a Participant, the holding companies controlled by a Participant or his immediate family members, or trustsestablished for the benefit of a Participant or his family members, provided that the costs and expenses arising from or in connection with such transferwill be assumed by the Participant. 108.3 Beneficiaries. Notwithstanding Section 8.2, a Participant may, in the manner determined by the Committee, designate a beneficiary toexercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legalguardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any AwardAgreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictionsdeemed necessary or appropriate by the Committee. If the Participant is married and resides in a community property state, a designation of a personother than the Participant’s spouse as his or her beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not beeffective without the prior written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shallbe made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiarydesignation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the Committee.8.4 Share Certificates. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificatesevidencing the Shares pursuant to the exercise of any Award, unless and until the Committee has determined, with advice of counsel, that the issuanceand delivery of such certificates is in compliance with all Applicable Laws, regulations of governmental authorities and, if applicable, the requirementsof any exchange on which the Shares are listed or traded. All Share certificates delivered pursuant to the Plan are subject to any stop-transfer orders andother restrictions as the Committee deems necessary or advisable to comply all Applicable Laws, and the rules of any national securities exchange orautomated quotation system on which the Shares are listed, quoted, or traded. The Committee may place legends on any Share certificate to referencerestrictions applicable to the Shares. In addition to the terms and conditions provided herein, the Committee may require that a Participant make suchreasonable covenants, agreements, and representations as the Committee, in its discretion, deems advisable in order to comply with any such laws,regulations, or requirements. The Committee shall have the right to require any Participant to comply with any timing or other restrictions with respectto the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee.8.5 Paperless Administration. Subject to Applicable Laws, the Committee may make Awards, provide applicable disclosure and procedures forexercise of Awards by an internet website or interactive voice response system for the paperless administration of Awards.8.6 Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the exercise price of any Award wereacquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign exchange controllaws and regulations. In the event the exercise price for an Award is paid in Chinese Renminbi or other foreign currency, as permitted by theCommittee, the amount payable will be determined by conversion from U.S. dollars at the official rate promulgated by the People’s Bank of China forChinese Renminbi, or for jurisdictions other than the People’s Republic of China, the exchange rate as selected by the Committee on the date ofexercise. 11ARTICLE 9CHANGES IN CAPITAL STRUCTURE9.1 Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation, arrangement or consolidation,spin-off, recapitalization or other distribution (not including normal cash dividends after the Trading Date) of Company assets to its shareholders, orany other change affecting the shares of Shares or the price or value of a Share, the Committee, shall consider whether there is any diminution orenlargement of the benefits intended to be made available under the Award, and then may in its sole discretion make such proportionate adjustments (ifany) as it considers to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan (including, butnot limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding Awards (including, without limitation,any applicable performance targets or criteria with respect thereto); (c) the grant or exercise price per share for any outstanding Awards under the Planand (d) in the case of a spin-off, the additional number and type of shares (including shares in the entities being spun-off) that shall be issued or anappropriate decrease of exercise price in connection with the spin-off.9.2 Corporate Transactions. Except as may otherwise be provided in any Award Agreement or any other written agreement entered into by andbetween the Company and a Participant, if the Committee anticipates the occurrence, or upon the occurrence, of a Corporate Transaction, theCommittee may, in its sole discretion, provide for one or more of the following: (i) any and all Awards outstanding hereunder to terminate at a specifictime in the future and shall give each Participant the right to exercise the vested portion of such Awards during a period of time as the Committee shalldetermine, or (ii) the termination of any Award in exchange for an amount of cash equal to the amount that could have been attained upon the exerciseof such Award (and, for the avoidance of doubt, if as of such date the Committee determines in good faith that no amount would have been attainedupon the exercise of such Award, then such Award may be terminated by the Company without payment), or (iii) the replacement of such Award withother rights or property selected by the Committee in its sole discretion or the assumption of or substitution of such Award by the successor orsurviving corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and prices, or (iv) payment ofAward in cash based on the value of Shares on the date of the Corporate Transaction plus reasonable interest on the Award through the date when suchAward would otherwise be vested or have been paid in accordance with its original terms, if necessary to comply with Section 409A of the Code.9.3 Outstanding Awards – Other Changes. In the event of any other change in the capitalization of the Company or corporate change other thanthose specifically referred to in this Article 9, subject to Applicable Laws and the terms of the Plan, the Committee may, in its sole discretion, makesuch adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share grantor exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement of rights. 129.4 No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidationof Shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution, liquidation,merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or pursuant to action of the Committeeunder the Plan, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment byreason thereof shall be made with respect to, the number of shares subject to an Award or the grant or exercise price of any Award.ARTICLE 10ADMINISTRATION10.1 Committee. The Plan shall be administered by the Board having regard to any recommendations made to the Board by the compensationcommittee or if the Board has delegated the authority to the Committee members in accordance with the terms of such delegation (provided that insuch case the Committee shall not grant or amend Awards to any Committee members). The term “Committee” in this Plan shall refer to the Boardunless a delegation has been made by the Board to the compensation committee and in which case only to the extent of such delegation.10.2 Section 162(m). To the extent Section 162(m) of the Code is applicable to the Company and the Committee determines it to be desirable toqualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall beadministered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.10.3 Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at anymeeting at which a quorum is present, or acts approved in writing by all the Committee members in lieu of a meeting, shall be deemed the acts of theCommittee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member byany officer or other employee of the Company or any Subsidiary or Parent of the Company, the Company’s independent certified public accountants,or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.10.4 Authority of the Committee. Subject to any specific designation in the Plan, the Committee has the exclusive power, authority anddiscretion to:(a) Designate Participants to receive Awards;(b) Determine the type or types of Awards to be granted to each Participant; 13(c) Determine the number of Awards to be granted and the number of Shares to which an Award will relate;(d) Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grantprice, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisabilityof an Award, and accelerations or waivers thereof, any provisions related to non-competition and recapture of gain on an Award, based in each case onsuch considerations as the Committee in its sole discretion determines;(e) Determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Awardmay be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;(f) Prescribe the form of each Award Agreement, which need not be identical for each Participant;(g) Decide all other matters that must be determined in connection with an Award;(h) Determine the Fair Market Value, consistent with the terms of the Plan;(i) Establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;(j) Interpret the terms of, and any matter arising pursuant to, the Plan, any Award Agreement and any Award granted thereunder; and(k) Make all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary oradvisable to administer the Plan.10.5 Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Award Agreement and alldecisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties.ARTICLE 11EFFECTIVE AND EXPIRATION DATE11.1 Effective Date. The Plan is effective as of the date the Plan is adopted and approved by the Board (the “Effective Date”). The Plan shall beratified by the shareholders of the Company by written resolutions at a general meeting duly held in accordance with the Company’s then effectivememorandum and articles of association within twelve (12) months of the Effective Date. No new Shares shall be issued pursuant to Awards grantedunder the Plan prior to such ratification of the Plan by the shareholders of the Company. In the event that the Plan is not ratified by the shareholders ofthe Company, all new Awards shall be null and void. 1411.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the tenth anniversary of the EffectiveDate. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according to the terms of the Plan and theapplicable Award Agreement.ARTICLE 12AMENDMENT, MODIFICATION, AND TERMINATION12.1 Amendment, Modification, And Termination. With the approval of the Board, at any time and from time to time, the Committee mayterminate, amend or modify the Plan; provided, however, that (a) to the extent necessary to comply with Applicable Laws, the Company shall obtainshareholder approval of any Plan amendment in such a manner and to such a degree as required, unless the Company decides to follow home countrypractice, and (b) unless the Company is permitted to and decides to follow home country practice, shareholder approval is required for any amendmentto the Plan that (i) increases the number of Shares available under the Plan (other than any adjustment as provided by Article 9) or (ii) permits theCommittee to extend the term of the Plan.12.2 Awards Previously Granted. Except with respect to amendments made pursuant to Section 12.1, no termination, amendment, ormodification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consentof the Participant. 15ARTICLE 13GENERAL PROVISIONS13.1 No Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any Award pursuant to the Plan, andneither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly.13.2 No Shareholders Rights. Except as otherwise determined by the Committee at the time of the grant of an Award or thereafter, no Awardgives the Participant any of the rights of a Shareholder of the Company unless and until Shares are in fact issued to such person in connection withsuch Award.13.3 Taxes. No Shares shall be delivered under the Plan to any Participant until such Participant has made arrangements acceptable to theCommittee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws. The Company or any Subsidiaryshall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy allapplicable taxes (including the Participant’s payroll tax obligations) required or permitted by Applicable Laws to be withheld with respect to anytaxable event concerning a Participant arising as a result of this Plan. The Committee may in its discretion and in satisfaction of the foregoingrequirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) havinga Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may bewithheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant of such Award aftersuch Shares were acquired by the Participant from the Company) in order to satisfy any income and payroll tax liabilities applicable to the Participantwith respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the Committee, be limited to the numberof Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on theminimum statutory withholding rates for the applicable income and payroll tax purposes that are applicable to such supplemental taxable income.13.4 No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or limit in any way the right of theService Recipient to terminate any Participant’s employment or services at any time, nor confer upon any Participant any right to continue in theemployment or services of any Service Recipient.13.5 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments notyet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that aregreater than those of a general creditor of the Company or any Subsidiary. 1613.6 Indemnification. To the extent allowable pursuant to Applicable Laws, each member of the Committee or of the Board shall be indemnifiedand held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member inconnection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved byreason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment insuch action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend thesame before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of anyother rights of indemnification to which such persons may be entitled pursuant to the Company’s Memorandum of Association and Articles ofAssociation, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.13.7 Relationship to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits pursuant to anypension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary or Parent of the Companyexcept to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.13.8 Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.13.9 Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of anyconflict, the text of the Plan, rather than such titles or headings, shall control.13.10 Fractional Shares. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given inlieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down as appropriate.13.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted orawarded to any Participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in anyapplicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirementsfor the application of such exemptive rule. To the extent permitted by the Applicable Laws, the Plan and Awards granted or awarded hereunder shall bedeemed amended to the extent necessary to conform to such applicable exemptive rule.13.12 Government and Other Regulations. The obligation of the Company to make payment of awards in Shares or otherwise shall be subject toall Applicable Laws, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register any ofthe Shares paid pursuant to the Plan under the Securities Act or any other similar law in any applicable jurisdiction. If the Shares paid pursuant to thePlan may in certain circumstances be exempt from registration pursuant to the Securities Act or other Applicable Laws, the Company may restrict thetransfer of such Shares in such manner as it deems advisable to ensure the availability of any such exemption. 1713.13 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by but not the choice of lawrules of the State of New York.13.14 Section 409A. It is the intent of the Company that payments and benefits under the Plan comply with Section 409A of the Code to theextent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and be administered to be in compliancetherewith. To the extent that the Committee determines that any Award granted under the Plan is or may become subject to Section 409A of the Code,the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extentapplicable, the Plan and the Award Agreements shall be interpreted in accordance with Section 409A of the Code and the U.S. Department of Treasuryregulations and other interpretative guidance issued thereunder, including without limitation any such regulation or other guidance that may be issuedafter the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Committeedetermines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department ofTreasury guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable AwardAgreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions,that the Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended taxtreatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related U.S.Department of Treasury guidance.13.15 Appendices. The Committee may approve such supplements, amendments or appendices to the Plan as it may consider necessary orappropriate for purposes of compliance with Applicable Laws or otherwise and such supplements, amendments or appendices shall be considered a partof the Plan; provided, however, that no such supplements shall increase the share limitation contained in Section 3.1 of the Plan without the approvalof the Board and shareholder approval to the extent required by Applicable Laws. 18Exhibit 8.1Principal Subsidiaries of Autohome Inc.Subsidiaries:Cheerbright International Holdings Limited, a British Virgin Islands companyAutohome (Hong Kong) Limited, a Hong Kong companyBeijing Cheerbright Technologies Co., Ltd., a PRC companyAutohome Media Limited, a Hong Kong companyAutohome Shanghai Advertising Co. Ltd., a PRC companyBeijing Prbrownies Software Co., Ltd., a PRC companyBeijing Autohome Advertising Co., Ltd., a PRC companyBeijing Autohome Technologies Co., Ltd., a PRC companyTianjin Autohome Technologies Co., Ltd., a PRC companyGuangzhou Autohome Advertising Co., Ltd., a PRC companyAutohome (Tianjin) Automobile Sales Co., Ltd., a PRC companyAutohome E-commerce Inc., a Cayman Islands companyAutohome E-commerce Hong Kong Limited, a Hong Kong companyAutohome Link Inc., a Cayman Islands companyAutohome Link Hong Kong Limited, a Hong Kong companyAutohome Financing Limited, a Cayman Islands companyAutohome Financing Hong Kong Limited, a Hong Kong companyShanghai Baiche Julian Information Technology Co., Ltd., a PRC companyBeijing Kemoshijie Technology Co., Ltd., a PRC companyBeijing Chezhiying Software Co., Ltd., a PRC companyBeijing Chezhiying Technology Co., Ltd., a PRC companyVariable Interest Entities:Beijing Autohome Information Technology Co., Ltd., a PRC companyBeijing Shengtuo Hongyuan Information Technology Co., Ltd., a PRC companyBeijing Shengtuo Chengshi Advertising Co., Ltd., a PRC companyBeijing Shengtuo Autohome Advertising Co., Ltd., a PRC companyShanghai You Che You Jia Advertising Co., Ltd., a PRC companyGuangzhou You Che You Jia Advertising Co., Ltd., a PRC companyBeijing Autohome Used Car Appraisal Co., Ltd., a PRC companyBeijing Autohome Used Car Brokerage Co., Ltd., a PRC companyExhibit 12.1Certification by the Principal Executive OfficerPursuant to Section 302 of the Sarbanes-Oxley Act of 2002I, James Zhi Qin, certify that:1. I have reviewed this annual report on Form 20-F of Autohome Inc. (“the Company”);2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;4. The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles;(c) evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d) disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by thisannual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and5. The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the Company’s ability to record, process, summarize and report financial information; and(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controlover financial reporting. Date: March 17, 2016By: /s/ James Zhi Qin Name: James Zhi Qin Title: Director and Chief Executive Officer 1Exhibit 12.2Certification by the Principal Financial OfficerPursuant to Section 302 of the Sarbanes-Oxley Act of 2002I, Nicholas Yik Kay Chong, certify that:1. I have reviewed this annual report on Form 20-F of Autohome Inc. (the “Company”);2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;4. The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles;(c) evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d) disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by thisannual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and5. The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the Company’s ability to record, process, summarize and report financial information; and(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controlover financial reporting. Date: March 17, 2016By: /s/ Nicholas Yik Kay Chong Name: Nicholas Yik Kay Chong Title: Chief Financial Officer 1Exhibit 13.1Certification by the Principal Executive OfficerPursuant to Section 906 of the Sarbanes-Oxley Act of 2002In connection with the annual report of Autohome Inc. (the “Company”) on Form 20-F for the year ended December 31, 2015 as filed with theSecurities and Exchange Commission on the date hereof (the “Report”), I, James Zhi Qin, Chief Executive Officer of the Company, hereby certify, pursuant to18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: March 17, 2016By: /s/ James Zhi Qin Name: James Zhi Qin Title: Director and Chief Executive Officer 1Exhibit 13.2Certification by the Principal Financial OfficerPursuant to Section 906 of the Sarbanes-Oxley Act of 2002In connection with the annual report of Autohome Inc. (the “Company”) on Form 20-F for the year ended December 31, 2015 as filed with theSecurities and Exchange Commission on the date hereof (the “Report”), I, Nicholas Yik Kay Chong, chief financial officer of the Company, certify, pursuantto 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: March 17, 2016By: /s/ Nicholas Yik Kay Chong Name: Nicholas Yik Kay Chong Title: Chief Financial Officer 1Exhibit 15.1Consent of Independent Registered Public Accounting FirmWe consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-196006) pertaining to the 2011 Share Incentive Plan and 2013Share Incentive Plan of Autohome Inc. of our reports dated March 17, 2016, with respect to the consolidated financial statements of Autohome Inc., and theeffectiveness of internal control over financial reporting of Autohome Inc. included in its Annual Report (Form 20-F) for the year ended December 31, 2015./s/ Ernst & Young Hua Ming LLPBeijing, the People’s Republic of ChinaMarch 17, 2016March 17, 2016Autohome Inc.10th Floor Tower B, CEC Plaza3 Dan Ling StreetHaidian District, BeijingThe People’s Republic of ChinaLadies and Gentlemen,We consent to the reference to our firm under the captions of “Item 3.D—Risk Factors” in Autohome Inc.’s annual report on Form 20-F for the year endedDecember 31, 2015, which will be filed with the Securities and Exchange Commission in the month of March 2016, and further consent to the incorporationby reference of the summaries of our opinions under these captions into Autohome Inc.’s registration statement on Form S-8 (File No. 333-196006) that wasfiled on May 16, 2014. Yours faithfully/s/ TransAsia LawyersTransAsia Lawyers

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