Q1 2025 Earnings Presentation May 2025 First Quarter of 2025: New Chapter of Growth Solid First Quarter Financial Performance Strong Showing by BTC Mining Operation Disclaimer This presentation has been prepared by Cango Inc. (the "Company") solely for information purpose and has not been independently verified. By viewing or accessing the information contained in this material, the recipient hereby acknowledges and agrees that no representations, warranties or undertakings, express or implied, are made by ...

First Quarter 2025 Financial and Operational Highlights Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, "The first quarter of 2025 marked a new chapter of growth for Cango following our entry into the Bitcoin mining industry in November 2024. Fueled by the strong performance of our mining operations, we generated total revenues of RMB 1.1 billion for the quarter. Throughout the quarter, we focused on enhancing our operational efficiency and mined a total of 1,541 Bitcoins, up substantially fro ...

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached USD 145 million, with USD 144 million coming from Bitcoin mining operations, marking a significant increase compared to the previous year [4][11] - Gross profit for the quarter was USD 13.61 million, while operating loss was recorded at RMB 155.5 million, primarily due to a decline in Bitcoin prices [4][14] - As of March 31, 2025, total cash, cash equivalents, and short-term investments amounted to RMB 2.5 billion, providing solid support for future business expansion [4][15] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business in Q1 2025 was USD 144 million, with 15.41 Bitcoins mined during the quarter [4][12] - Revenue from automotive trading related income decreased to RMB 64.4 million compared to the same period in 2024 [12] - The company maintained a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate [5][6] Market Data and Key Metrics Changes - The average monthly effective hash rate consistently exceeded 30 exahashes per second, with a coin yield of 16.6 Bitcoins per exahash, placing the company among the top three publicly listed mining companies [7] - The average power efficiency for the quarter was 21.62 per terahash, indicating strong operational efficiency [7] Company Strategy and Development Direction - The company is committed to a "mine and hold" strategy, focusing on self-mining and long-term holding of Bitcoin [8] - Plans include optimizing existing computing power resources and pursuing mergers and acquisitions to scale operations [8] - The traditional automotive business, AutoCango, aims to connect China's used car market with overseas buyers, enhancing its global presence [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Bitcoin's long-term value appreciation potential and the stability of its supply [8] - The company is closely monitoring market developments and adjusting strategies to seize emerging opportunities [19] - Future strategic direction includes optimizing mining operations, enhancing efficiency, and exploring new market opportunities [24] Other Important Information - The company has launched a global energy strategy to address high electricity costs, focusing on renegotiating hosting agreements and exploring partnerships in low-cost clean energy projects [23] - The company plans to prioritize debt financing over equity financing due to its low debt-to-equity ratio [29] Q&A Session Summary Question: What is your view on the trends in the cryptocurrency market so far? - Management believes the cryptocurrency market presents both opportunities and challenges, with an increasing role for cryptocurrencies as technology advances [18] Question: How is the company going to respond to increasing challenges from computing power and mining difficulty? - The company will optimize existing mining operations and expedite the delivery of additional computing power [19] Question: Can you provide more details on the reasons behind the declines in April metrics? - The decline was mainly due to a significant increase in global network hash rate and a rise in mining difficulty [21] Question: Do you see more pressure from increasing power costs? - Yes, the company is experiencing high electricity costs but is refining its cost structure through a global energy strategy [23] Question: How does the company plan to balance or diversify its business lines? - The company remains focused on Bitcoin mining but is confident in the potential of its used car export business and plans to explore additional opportunities [27] Question: Do you have any plans for equity financing or other financing plans? - The company has sufficient liquidity and plans to prioritize debt financing over equity financing [29]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached USD 145 million, with USD 144 million coming from Bitcoin mining operations, marking a significant increase compared to the previous year [4][12] - Gross profit for the quarter was USD 13.61 million, while the operating loss was USD 155.5 million, primarily due to a decline in Bitcoin prices [4][15] - As of March 31, 2025, total cash, cash equivalents, and short-term investments amounted to USD 347 million, providing solid support for future business expansion [4] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business was USD 144 million, with 15.41 Bitcoins mined in Q1 2025 [13] - Revenue from automotive trading related income decreased to RMB 64.4 million compared to the same period in 2024 [13] - The average cost to mine Bitcoin was USD 70,602.1 per coin, excluding depreciation of mining machines [13] Market Data and Key Metrics Changes - The company holds a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate in Q1 [5] - The average monthly effective hash rate consistently exceeded 30 exahashes per second, with a coin yield of 16.6 Bitcoins per exahash, placing the company among the top three publicly listed mining companies [7] Company Strategy and Development Direction - The company is committed to a "mine and hold" strategy, focusing on self-mining and long-term holding of Bitcoin [8] - Plans to optimize existing computing power resources and pursue M&A opportunities to scale operations and enhance market competitiveness [9] - The traditional automotive business, AutoCango, aims to connect China's used car market with overseas buyers, with over 480,000 used car listings [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Bitcoin's long-term value appreciation potential and the stability of its supply [8] - The company is focused on optimizing mining operations and exploring new market opportunities while strengthening partnerships [25] - Management acknowledged challenges from increasing computing power and mining difficulty but emphasized ongoing efforts to enhance operational efficiency [20][24] Other Important Information - The company has reduced its total outstanding loan balance to approximately RMB 2.6 billion, with improved loan quality metrics [5] - The average power efficiency for the quarter was 21.62 per terahash, indicating strong operational metrics [7] Q&A Session Summary Question: Trends in the cryptocurrency market - Management believes the cryptocurrency market presents both opportunities and challenges, with a focus on monitoring developments and adjusting strategies accordingly [19] Question: Response to increasing computing power and mining difficulty - The company plans to optimize existing mining operations and expedite the delivery of additional computing power [20] Question: Reasons for declines in April metrics - A significant decrease in mined Bitcoins in April was attributed to an increase in global network hash rate and mining difficulty [22] Question: Pressure from increasing electricity costs - The company is experiencing high electricity costs but is exploring renegotiation of hosting agreements and partnerships in low-cost clean energy projects [24] Question: Future strategic direction - The company will focus on optimizing mining operations, enhancing efficiency, and exploring new market opportunities while pursuing sustainable energy sources [25] Question: Concentration risk in revenue from Bitcoin mining - While the majority of revenue comes from Bitcoin mining, the company remains confident in its used car export business and plans to explore additional opportunities for diversification [28] Question: Plans for cash flow and financing - The company has sufficient liquidity for operations and plans to prioritize debt financing over equity financing [30]

Core Viewpoint - Cango Inc. reported significant growth in the first quarter of 2025, primarily driven by its entry into the Bitcoin mining industry, resulting in total revenues of RMB1.1 billion (US$145.2 million), a substantial increase from RMB64.4 million in the same period of 2024 [3][5][10]. Financial Performance - Total revenues for Q1 2025 were RMB1.1 billion (US$145.2 million), compared to RMB64.4 million in Q1 2024, marking a year-over-year increase of approximately 1,610% [5][8]. - Revenue from Bitcoin mining was RMB1.0 billion (US$144.2 million), with 1,541 Bitcoins mined during the quarter, up from 933.8 Bitcoins in the previous quarter [3][5]. - Revenue from automotive trading-related income was RMB7.6 million (US$1.0 million), a decrease from RMB64.4 million in the same period of 2024 [6]. Operating Costs and Expenses - Total operating costs and expenses in Q1 2025 were RMB1.2 billion (US$166.7 million), primarily related to Bitcoin mining operations [7][8]. - The cost of revenue for Bitcoin mining was RMB955.1 million (US$131.6 million), compared to RMB29.1 million in Q1 2024 [7][8]. Profitability Metrics - Loss from operations in Q1 2025 was RMB155.5 million (US$21.4 million), compared to income from operations of RMB74.2 million in Q1 2024 [9]. - Net loss for the quarter was RMB207.4 million (US$28.6 million), a decline from net income of RMB90.0 million in the same period of 2024 [10][30]. - Adjusted EBITDA was RMB27.6 million (US$3.8 million), down from RMB108.4 million in Q1 2024 [11][30]. Balance Sheet and Cash Position - As of March 31, 2025, cash and cash equivalents totaled RMB2.5 billion (US$347.4 million), an increase from RMB1.3 billion as of December 31, 2024 [16]. - The total outstanding balance of financing transactions facilitated by the company was RMB2.6 billion (US$358.4 million) as of March 31, 2025 [8]. Business Outlook - The company aims to increase its computing power from 32 EH/s to approximately 50 EH/s by the end of July 2025, enhancing its position among top-tier Bitcoin miners [3][12]. - Cango plans to continue optimizing its existing resources and explore high-quality M&A opportunities to scale operations and deliver long-term value [3][12].

Group 1 - Cango Inc. plans to release its first quarter 2025 financial results on May 14, 2025, after market close [1] - A conference call will be held on May 14, 2025, at 9:00 P.M. Eastern Time to discuss the financial results, with access numbers provided for international and regional listeners [2] - The company primarily operates a leading Bitcoin mining business and has expanded into the crypto assets market since November 2024 [3] Group 2 - Cango has deployed its mining operations across strategic locations including North America, Middle East, South America, and East Africa [3] - The company has been operating automotive transaction services in China since 2010, aiming to simplify car purchases [3]

Core Insights - Cango Inc. reported a total Bitcoin production of 470.0 Bitcoins in April 2025, reflecting an 11.3% decrease from 530.1 Bitcoins in March 2025 [1][2] - The company's total Bitcoin holdings increased to 2,944.8 Bitcoins as of April 30, 2025, up from 2,474.8 Bitcoins at the end of March [2] - The decline in production was attributed to a significant surge in the global hashrate, which led to an 8% increase in mining difficulty compared to March [3] Production and Performance - Average daily Bitcoin production in April was 15.7, down from 17.1 in March [1] - The deployed hashrate remained stable at 32 EH/s, while the average operating hashrate decreased slightly to 29.9 EH/s from 30.3 EH/s in March [2] Strategic Positioning - Cango's Bitcoin holdings are valued at approximately $279 million, indicating confidence in long-term value generation despite short-term production fluctuations [3] - The company has been expanding its operations in the crypto assets market since November 2024, driven by advancements in blockchain technology and the growing prevalence of crypto assets [4]

SHANGHAI, May 6, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its production update for crypto mining business in April 2025. Bitcoin Mining Update for April 2025 | Metrics | | Apr 2025 1Mar 2025 1 | | --- | --- | --- | | Number of Bitcoins produced | 470.0 | 530.1 | | Average number of Bitcoins produced per day | 15.7 | 17.1 | | Total number of Bitcoins held 2 | 2,944.8 | 2,474.8 | | Total number of Bitcoins sold 2 | - | - | | Deployed hashrate 2 | 32 EH/s | 32 EH ...

Core Viewpoint - Cango Inc. is rapidly expanding in the Bitcoin mining industry, with a strong operational performance and positive projections for future growth, as highlighted by the initiation of coverage by Apollo Insights [1][2]. Group 1: Company Performance - Cango has achieved an average operating hash rate of 30.3 exahash/second (EH/s) in March 2025, ranking it joint second for the highest operating hashrate that month [2]. - The company has accumulated approximately 2,475 Bitcoin, valued at roughly US$211 million as of April 17, 2025, and has not sold any of its Bitcoin holdings [3]. - Cango ranks as the fifth-largest Bitcoin mining player by deployed hashrate, achieving 32 EH/s in just four months, with projections to reach 42 EH/s by the end of FY25E [3]. Group 2: Market Position and Strategy - Since entering the Bitcoin mining industry in November 2024, Cango has expanded its operations globally, with mining activities in the U.S. (38%), East Africa (37%), Oman (15%), Paraguay (9%), and Canada (1%) [4]. - The company operates a capital-light model, which has contributed to its operational efficiency and growth in Bitcoin holdings [3]. Group 3: Financial Projections - Cango has a market capitalization of $387.1 million, with a 12-month stock price range between $1.33 and $8.00 [7]. - Apollo Insights projects Cango's fiscal 2025E revenue and adjusted EBITDA to reach RMB3,913.2 million and RMB665.6 million, respectively [7]. - For fiscal 2026E, revenue and adjusted EBITDA are expected to increase to RMB4,644.6 million (an 18.7% year-over-year increase) and RMB1,185.2 million (a 78.1% year-over-year increase) [7].

Company Overview - Cango Inc. (NYSE:CANG) primarily operates a leading Bitcoin mining business and has expanded into the crypto assets market since November 2024 [2] - The company has deployed its mining operations across strategic locations including North America, Middle East, South America, and East Africa [2] - Cango has continued to operate its automotive transaction service in China since 2010, aiming to simplify car purchases [2] Market Analysis - The expansion into the crypto assets market is driven by advancements in blockchain technology and the increasing prevalence of crypto assets [2] - Cango's move into Bitcoin mining represents a diversification strategy for the company [2] Research Firm Overview - Apollo Insights specializes in providing comprehensive equity research for micro- and small-cap companies, bridging the information gap between these companies and potential investors [3] - The firm delivers investor-grade reports that combine deep business analysis with rigorous financial models [3]