SHANGHAI, April 1, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its production update for crypto mining business in March 2025. Bitcoin Mining Update for March 2025 | Metrics | Mar 2025 1 | Feb 2025 1 | | --- | --- | --- | | Number of Bitcoins produced | 530.1 | 472.7 | | Average number of Bitcoins produced per day | 17.1 | 16.9 | | Total number of Bitcoins held 2 | 2,474.8 | 1,944.7 | | Total number of Bitcoins sold 2 | - | - | | Deployed hashrate 2 | 32 EH/s | 32 ...

SHANGHAI, March 27, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG), a rapidly expanding leader in Bitcoin mining, today announced key highlights from its filed annual report, marked by a successful pivot towards cryptocurrency mining and significant operational milestones, including securing its position as the third-largest publicly traded miner globally and a 400% year-over-year revenue increase. Fourth Quarter & Full Year 2024 Financial PerformanceThe Company achieved total revenues of RMB668.0 million (US ...

Financial Performance - Total revenues for the year ended December 31, 2024, were RMB 804,489 thousand, a decrease from RMB 1,701,919 thousand in 2023, representing a decline of approximately 52.7%[49]. - The net income for the year ended December 31, 2024, was RMB 299,815 thousand, compared to a net loss of RMB 37,873 thousand in 2023, indicating a significant turnaround[49]. - The company reported third-party revenues of RMB 151,241 thousand from VIEs for the year ended December 31, 2024, compared to RMB 1,701,876 thousand in 2023, showing a decline of approximately 91.1%[49]. - Operating income for the year ended December 31, 2024, was RMB 178,894 thousand, a recovery from an operating loss of RMB 73,751 thousand in 2023[49]. - The Group's loan facilitation income decreased from RMB146.4 million in 2022 to RMB20.0 million in 2023, and further to RMB15.8 million (US$2.2 million) in 2024[91]. - The Group's leasing income decreased from RMB155.5 million in 2022 to RMB57.4 million in 2023, and further to RMB11.5 million (US$1.6 million) in 2024[91]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2024, totaled RMB 1,289,630 thousand, an increase from RMB 924,404 thousand as of December 31, 2023[52]. - Total assets as of December 31, 2024, were RMB 5,969,324 thousand, compared to RMB 6,266,834 thousand as of December 31, 2023, reflecting a decrease of approximately 4.7%[52]. - Total liabilities as of December 31, 2024, were RMB 1,882,694 thousand, a decrease from RMB 2,180,204 thousand as of December 31, 2023, indicating a reduction of about 13.7%[52]. - The company experienced a significant decrease in net cash provided by operating activities from RMB 1,026,026 thousand in 2023 to RMB (310,203) thousand in 2024[54]. - As of December 31, 2023, total current assets amounted to RMB 3,884,019 thousand, with cash and cash equivalents at RMB 1,020,604 thousand[53]. Dividends and Subsidiary Transactions - The company paid cash dividends of RMB1,871 million, nil, and nil to shareholders and ADS holders for the years ended December 31, 2022, 2023, and 2024[39]. - The company's ability to pay dividends is dependent on receiving distributions from its subsidiaries, which are subject to PRC laws and regulations[42]. - For the years ended December 31, 2022, 2023, and 2024, the company provided loans of nil, $6 million, and $14 million, net, respectively, to its subsidiaries[39]. - The company received repayments of $63 million, nil, and nil, net, respectively, for the same periods[39]. Regulatory and Compliance Issues - The company was identified as an SEC-identified issuer on May 26, 2022, due to its former auditor being unable to be inspected by the PCAOB[32]. - The PCAOB announced on November 30, 2023, that it had completed inspections on registered public accounting firms in mainland China and Hong Kong for 2023, allowing the company to avoid being identified as an SEC-identified issuer in 2024[33]. - The company is subject to restrictions on currency exchange, which may limit its ability to utilize cash generated in Renminbi for business activities outside of the PRC[45]. - The Group's financing guarantee company, Cango Financing, must ensure that its outstanding guarantee liabilities do not exceed ten times its net assets as per the Financing Guarantee Rules[102]. Market and Operational Risks - The automotive and mobility markets in China are still developing, with significant volatility affecting the company's business prospects[64]. - The Group's operational efficiency may be impacted by the need to enhance automation in the credit assessment process, which could lead to increased overdue ratios[82][83]. - The Group's business may be adversely affected by a general decline in car demand or failure to adapt its platform to new trends and requirements[72]. - The Group's relationships with dealers are not exclusive, and there is no assurance that dealers will maintain their participation on the Cango platform[67]. - The Group's financing transactions are secured by car collaterals, and a decrease in the residual value of these collaterals could adversely affect the Group's results of operations[111]. Cryptocurrency Operations - The company is expanding into the overseas crypto assets market, commencing crypto mining operations in November 2024[60]. - The company commenced its crypto mining operation in November 2024, expanding into the overseas crypto assets market, which introduces new operational risks[130]. - The company is focused solely on bitcoin mining, which poses risks if other crypto assets gain acceptance and bitcoin's value declines[133]. - The company relies on a third-party mining pool operator for bitcoin mining income, which increases operational risks if the operator experiences downtime or inaccuracies in reward distribution[140]. - The company faces risks from potential regulatory changes that could adversely affect the price and acceptance of bitcoin[134]. Internal Controls and Governance - The company concluded that its internal control over financial reporting was effective as of December 31, 2024[222]. - The independent registered public accounting firm confirmed that the company maintained effective internal control over financial reporting as of December 31, 2024[222]. - There are inherent limitations in all control systems, which may not prevent or detect all errors and fraud[223]. - Failure to comply with Section 404 of the Sarbanes-Oxley Act could lead to delays in producing accurate financial statements, potentially impacting the market price of the company's ADSs[224].

Core Viewpoint - Cango Inc. has extended the deadline for closing its proposed acquisitions of on-rack crypto mining machines to July 31, 2025, to allow for further assessment of potential revisions to the Purchase Agreement following a preliminary non-binding letter of intent from Enduring Wealth Capital Limited [1][2]. Group 1: Acquisition Details - The Company signed a Purchase Agreement for Share-Settled Transactions on November 6, 2024, which initially set a closing date of March 31, 2025 [1]. - The proposed acquisitions involve on-rack crypto mining machines with an aggregate hashrate of 18 Exahash per second [1]. - Cango completed a separate acquisition of on-rack crypto mining machines with a total hashrate of 32 Exahash for a purchase price of US$256 million in cash on November 15, 2024 [2]. Group 2: Business Operations - Cango Inc. primarily operates a leading Bitcoin mining business and has expanded its operations into the crypto assets market since November 2024 [3]. - The Company is headquartered in Shanghai, China, and has deployed its mining operations across strategic locations including North America, the Middle East, South America, and East Africa [3]. - In addition to its crypto operations, Cango has been providing automotive transaction services in China since 2010 [3].

SHANGHAI, March 17, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin mining company with an automotive transaction service in China, today announced that it has been included in the Bitwise Bitcoin Standard Corporations ETF (NYSE Arca: OWNB), launched by Bitwise Asset Management on March 11, 2025. The exchange-traded fund (ETF) tracks the Bitwise Bitcoin Standard Index, providing investors with exposure to forward-looking publicly traded corporations holding a minim ...

Core Viewpoint - Cango Inc. has received a preliminary non-binding letter of intent from Enduring Wealth Capital Limited to acquire control of the company through a series of proposed transactions, including the acquisition of shares from the co-founders and restructuring of the board and management team [1][2] Group 1: Proposed Transactions - EWCL proposes to acquire 10,000,000 Class B ordinary shares from the co-founders at a mutually agreed cash price [1] - The company is expected to take necessary actions to ensure that the acquired shares maintain their voting rights of 20 votes per share [1] - The co-founders will convert their remaining Class B shares into Class A shares and resign from all positions within the company [1] - EWCL suggests that the company should dispose of its existing business in China and focus on expanding its crypto mining business [1] Group 2: Company Background - Cango Inc. primarily operates a leading Bitcoin mining business and has expanded into the crypto assets market since November 2024 [4] - The company has mining operations in strategic locations including North America, the Middle East, South America, and East Africa [4] - Cango has been operating automotive transaction services in China since 2010, aiming to simplify car purchases [4] Group 3: Special Committee Formation - The Board has formed a special committee consisting of three independent directors to assess the Letter of Intent and the proposed transactions [2] - The special committee will negotiate terms and conditions if it decides to pursue any of the proposed transactions [2] - Independent legal and financial advisors are expected to be retained to assist in evaluating the proposed transactions [2]

Core Viewpoint - Cango Inc. has announced a new share repurchase program allowing for the repurchase of up to US$30 million worth of its outstanding shares over the next 12 months starting from April 25, 2025 [1] Group 1: Share Repurchase Programs - The new share repurchase program will allow Cango to repurchase shares through various means including open market purchases and privately negotiated transactions, depending on market conditions and the company's working capital [2] - Cango previously announced an existing share repurchase program on April 23, 2024, under which it may repurchase up to US$50 million worth of shares, having already repurchased 996,640 ADSs for approximately US$1.7 million as of March 10, 2025 [3] Group 2: Company Overview - Cango Inc. operates primarily in the Bitcoin mining sector and has expanded its operations into the crypto assets market since November 2024, while also providing automotive transaction services in China since 2010 [4]

Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was RMB 670 million, a year-on-year increase of over 400% compared to RMB 130.2 million in Q4 2023 [10][16] - Net income for Q4 2024 was RMB 55.89 million, compared to a net loss of RMB 103.8 million in the same period of 2023 [20] - For the full year 2024, total revenues were RMB 804.5 million, with net income of RMB 299.8 million [22] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business in Q4 2024 was RMB 653 million, while revenue from automotive trading-related income was RMB 15 million, down from RMB 130.2 million in Q4 2023 [16][21] - Total operating costs and expenses in Q4 2024 were RMB 645.5 million, up from RMB 159.1 million in Q4 2023, primarily due to the new crypto mining business [17] Market Data and Key Metrics Changes - As of the end of 2024, the outstanding loan balance decreased to approximately RMB 3.9 billion from over RMB 40 billion [6] - The company held a total of 933.8 Bitcoins as of December 2024, with significant production in November and December 2024 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its cryptocurrency mining operations and optimizing existing facilities for efficiency and profitability [30][32] - Cango aims to deepen engagement in computing power expansion, asset operation efficiencies, and exploring sustainable energy solutions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth of the Bitcoin mining sector, anticipating an annual production of around 6,000 Bitcoins based on current hash rates [28] - The company plans to continue its automotive business, particularly in used car exports, while also holding onto Bitcoin to optimize its financial model [32] Other Important Information - The company has established a comprehensive market monitoring protocol to navigate regulatory shifts and market risks effectively [13] - As of December 31, 2024, cash and cash equivalents were RMB 1.3 billion, providing sufficient liquidity for operations [23] Q&A Session Summary Question: What are the company's expectations for future growth and strategic direction? - The company forecasts an annual production of around 6,000 Bitcoins and plans to escrow 1,500 used cars in 2025, with a total value of $15 million [28][30] Question: Why did the company decide to enter the Bitcoin mining industry? - The decision was based on a positive outlook for Bitcoin's future potential and the need to balance grid loads using surplus electricity [35] Question: Will Bitcoin transactions be under regulation? - The $400 million transaction for mining assets was conducted offshore and is not subject to Chinese regulations [36] Question: What is the expectation for Bitcoin prices? - The company anticipates Bitcoin prices may range between $90,000 to $120,000 in 2025 [41] Question: What are the competitive edges of Cango in Bitcoin mining? - Cango has strong expertise and a solid talent pool, along with industry-leading computing power capacity [42][43] Question: How does the company manage mining rig maintenance and farm management? - Currently, mining rigs are managed in partnership with Bitmain, with plans to build in-house operational capabilities as capacity expands [46] Question: What are the company's plans for optimizing energy efficiency and electricity costs? - The company is exploring cost-effective energy solutions and negotiating for lower electricity costs as contracts are renewed [50] Question: Will Bitcoin price volatility impact performance? - The company views Bitcoin's price fluctuations as short-term and remains optimistic about its long-term value [59]

Core Viewpoint - Cango Inc. has successfully transitioned into the Bitcoin mining sector, significantly boosting its financial performance in 2024, with a notable increase in revenues and net income compared to the previous year [3][4]. Financial and Operational Highlights - In Q4 2024, total revenues reached RMB 668 million (US$ 91.5 million), a year-over-year increase of over 400% from RMB 130.2 million in Q4 2023, primarily driven by the Bitcoin mining business [5][10]. - The Bitcoin mining business generated RMB 653 million (US$ 89.5 million) in revenue, with 933.8 Bitcoins mined by the end of 2024 [5][10]. - For the full year 2024, total revenues were RMB 804.5 million (US$ 110.2 million), down from RMB 1.7 billion in 2023, largely due to decreased automotive trading income [14][15]. - The company reported a net income of RMB 299.8 million (US$ 41.1 million) for 2024, a turnaround from a net loss of RMB 37.9 million in 2023 [18]. Cost and Expenses - Total operating costs and expenses in Q4 2024 were RMB 645.5 million (US$ 88.4 million), compared to RMB 159.1 million in Q4 2023 [7][10]. - The cost of revenue for Q4 2024 was RMB 550.5 million (US$ 75.4 million), representing 82.4% of total revenues, a decrease from 85.1% in the same period of 2023 [11][10]. - For the full year 2024, total operating costs and expenses were RMB 625.6 million (US$ 85.7 million), down from RMB 1.8 billion in 2023 [16]. Income from Operations - Income from operations in Q4 2024 was RMB 22.5 million (US$ 3.1 million), compared to a loss of RMB 28.9 million in Q4 2023 [8][10]. - For the full year 2024, income from operations was RMB 178.9 million (US$ 24.5 million), a significant improvement from a loss of RMB 73.8 million in 2023 [17]. Balance Sheet and Cash Position - As of December 31, 2024, Cango had cash and cash equivalents of RMB 2.5 billion (US$ 345.3 million) [10]. - The total outstanding balance of financing transactions facilitated by the company was RMB 3.9 billion (US$ 533 million) [10]. Business Outlook - Cango aims to increase its deployed hashrate to approximately 50 EH by the end of Q1 2025, enhancing its competitive advantage in the Bitcoin mining sector [20]. - The company plans to maintain a strong focus on its used car exporting business while expanding its presence in the digital economy value chain [3].

Core Insights - Cango Inc. has reported its production update for its crypto mining business for February 2025, indicating a decrease in Bitcoin production compared to January 2025 [1][2]. Production Metrics - The number of Bitcoins produced in February 2025 was 472.7, down from 538.2 in January 2025, reflecting a decrease of approximately 12.1% [2]. - The average number of Bitcoins produced per day in February was 16.9, compared to 17.4 in January, showing a decline of about 2.9% [2]. - The total number of Bitcoins held by the company at the end of February was 1,944.7, an increase from 1,472.0 at the end of January, representing a growth of approximately 32% [2]. - The deployed hashrate remained stable at 32 EH/s for both February and January, while the average operating hashrate decreased slightly from 30.1 EH/s in January to 29.7 EH/s in February [2]. Company Overview - Cango Inc. is a leading automotive transaction service platform in China, established in 2010, and headquartered in Shanghai [3]. - The company connects various participants in the automotive industry, including car buyers, dealers, and financial institutions, and has developed a comprehensive automotive supply chain ecosystem [3]. - In recent years, Cango has diversified its operations to include overseas crypto assets, expanding beyond its core automotive services [3].