Core Viewpoint - Cango Inc. has announced agreements to purchase on-rack crypto mining machines with a total hashrate of 50 Exahash per second for approximately US$400 million, indicating a strategic expansion into the cryptocurrency mining sector [1][2]. Group 1: Proposed Transactions - The purchase includes a Cash-Settled Transaction for 32EH from Bitmain for US$256 million in cash and Share-Settled Transactions for 18EH from Golden TechGen Limited, valued at US$144 million through the issuance of approximately 145,658,192 Class A ordinary shares [1][2]. - Upon closing, Golden TechGen Limited will own no more than 20% of Cango's total outstanding shares, while all sellers will collectively own about 37.8% of the total outstanding shares before any warrant exercise [2][3]. - Cango has agreed to issue additional shares as a bonus if its market capitalization reaches US$1,825 million within 30 months after the closing of the Share-Settled Transactions [2][3]. Group 2: Closing Conditions - The closing of the Cash-Settled Transaction is subject to customary conditions, including antitrust clearance in the U.S., while the Share-Settled Transactions require satisfactory performance of the mining machines and NYSE authorization [3]. - If the Cash-Settled Transaction fails due to antitrust issues, a deposit of US$25.6 million will be forfeited to Bitmain [3]. Group 3: Operational Plans - The mining machines are currently operational in data centers outside China, primarily in the U.S., and Cango plans to continue hosting them in these facilities [4]. - The company aims to generate significant revenue from crypto mining operations, potentially comprising the majority of total revenues before substantial growth in its existing business outside China [5]. Group 4: Company Overview - Cango Inc. is a leading automotive transaction service platform in China, established in 2010, focusing on connecting car buyers, dealers, and financial institutions [6]. - The company leverages technological innovation and big data to create an automotive supply chain ecosystem, enhancing its competitive advantage in the market [6].

Financial Data and Key Metrics - Total revenue for Q3 2024 was RMB26.95 million, with an operating profit of RMB35.24 million and a net profit of RMB67.88 million [4] - Total outstanding loan balance as of September 30 was approximately RMB4.8 billion, with M1+ at 3.17% and M3+ at 1.76% [5] - The company's total cash, cash equivalents, and short-term investments amounted to approximately RMB3.8 billion, an increase of RMB89.27 million compared to the previous quarter [5] - Non-GAAP adjusted net income for Q3 2024 was RMB71.3 million, with basic and diluted net income per ADS at 0.66% and 0.60%, respectively [22] Business Line Data and Key Metrics - The Cango U-Car app accumulated 280,000 page views by the end of Q3, a 21% increase from the previous quarter [7] - AutoCango.com, the international used car platform, had over 370,000 page views and nearly 60,000 registered users, offering more than 100,000 used car SKUs covering over 65,000 models [10] - AutoCango.com's visibility in search engine results pages (SERP) exceeded 2.41 million impressions, with expectations to surpass 4 million by the end of the year [12] Market Data and Key Metrics - The company has received inquiries from over 130 countries and regions regarding vehicle purchases, indicating strong international interest [12] - The company plans to expand AutoCango.com's multilingual support to 15 languages by early 2025 to enhance user experience and market reach [34] Company Strategy and Industry Competition - The company is focusing on enhancing AutoCango.com's quality and functionality to meet diverse user needs in different regions [13] - Strategic partnerships with used car marketplaces have been established to ensure a diverse and abundant supply of vehicles for the Cango U-Car app [7] - The company is actively pursuing forward-looking strategic investment opportunities globally, focusing on high-quality projects that complement its core competencies [15] Management Commentary on Operating Environment and Future Outlook - Management believes that China's moderate economic recovery will positively impact the business by boosting consumer confidence and purchasing power, particularly in the used car market [26] - The company is monitoring macroeconomic indicators and market dynamics to respond quickly to potential economic changes [28] - Management is optimistic about future growth, driven by operational efficiency improvements, customer experience enhancements, and digital capabilities [28] Other Important Information - The company has introduced a rapid vehicle inspection and listing service in collaboration with third-party inspection teams to enhance transaction transparency [8] - A dedicated team has been established to handle customer feedback and improve service quality [30] - The company is streamlining business processes, automating workflows, and leveraging cloud computing to reduce costs and improve efficiency [37] Q&A Session Summary Question: Impact of China's economic recovery on the business - Management believes the economic recovery will boost consumer confidence and purchasing power, driving demand in the used car market [26][28] Question: Vehicle quality assurance measures - The company collaborates with reputable dealers and conducts over 100 professional technical inspections for each vehicle before listing [29][30] Question: Integration with overseas markets and feature optimization - The company is conducting comprehensive research on overseas markets and plans to offer multilingual support on AutoCango.com by early 2025 [33][34] - A direct sourcing feature for the Chinese used car market is being introduced to enhance user experience [35] Question: Cost control and risk management strategies - The company has streamlined business processes, automated workflows, and leveraged cloud computing to reduce costs [37] - A robust internal control system has been established to manage risks and ensure compliance with laws and regulations [39]

SHANGHAI, Nov. 4, 2024 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced its unaudited financial results for the third quarter of 2024.Third Quarter 2024 Financial and Operational Highlights Total revenues were RMB27.0 million (US$3.8 million), compared with RMB353.6 million in the same period of 2023. Income from operations was RMB35.2 million (US$5.0 million) for the three months ended September 30, 2024, compare ...

SHANGHAI, Oct. 31, 2024 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced that it plans to release its third quarter 2024 financial results after the market closes on Monday, November 4, 2024. The earnings release will be available on the Company's investor relations website at http://ir.cangoonline.com/.Cango's management will hold a conference call on Monday, November 4, 2024 at 8:00 P.M. Eastern Time or Tuesday, ...

Cango Inc. (NYSE:CANG) Q2 2024 Earnings Conference Call August 30, 2024 9:00 PM ET Company Participants Jiayuan Lin - CEO Yongyi Zhang - CFO Conference Call Participants Operator Good morning, and good evening, everyone. Welcome to Cango Inc.'s Second Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial Officer of the company. Foll ...

SHANGHAI, Aug. 29, 2024 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced its unaudited financial results for the second quarter of 2024.Second Quarter 2024 Financial and Operational HighlightsTotal revenues were RMB45.1 million (US$6.2 million), compared with RMB675.4 million in the same period of 2023. Income from operations was RMB47.0 million (US$6.5 million) for the three months ended June 30, 2024, compared w ...

SHANGHAI, Aug. 23, 2024 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced that it plans to release its second quarter 2024 financial results after the market closes on Thursday, August 29, 2024. The earnings release will be available on the Company's investor relations website at http://ir.cangoonline.com/.Cango's management will hold a conference call on Thursday, August 29, 2024 at 9:00 P.M. Eastern Time or Frida ...

[Q1 2024 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20and%20Operational%20Highlights) Cango reported lower Q1 2024 revenues but higher operating and net income, improved liquidity, and slightly increased delinquency ratios Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 (RMB) | Q1 2023 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | 64.4 million | 542.6 million | -88.1% | | Income from Operations | 74.2 million | 51.8 million | +43.1% | | Net Income | 90.0 million | 78.8 million | +14.3% | Financing Transaction Overdue Ratios | Metric | As of Mar 31, 2024 (%) | As of Dec 31, 2023 (%) | | :--- | :--- | :--- | | M1+ Overdue Ratio | 2.87% | 2.66% | | M3+ Overdue Ratio | 1.51% | 1.37% | - The total outstanding balance of financing transactions facilitated by the company was **RMB 7.6 billion (US$1.1 billion)** as of March 31, 2024[2](index=2&type=chunk) - Liquidity improved significantly, with cash, cash equivalents, short-term investments, and restricted cash increasing by **RMB 152.6 million** compared to the end of 2023. This was primarily due to positive operating cash flow from reduced working capital in car trading and collections[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized strategic shifts in new and used car businesses, leading to improved profitability and sustained positive operating cash flow - CEO Jiayuan Lin stated the company proactively reduced its self-operated new car business, streamlined purchasing, and optimized inventory to mitigate risks from declining new car prices[4](index=4&type=chunk) - The company completed the integration of 'Cango U-car' to enhance vehicle supply and dealer services, and launched a cross-border information platform for used car transactions in March[4](index=4&type=chunk)[5](index=5&type=chunk) - CFO Yongyi Zhang confirmed that strategic efforts to scale back new car inventory and improve efficiency resulted in a profit for **Q1 2024** and a third consecutive quarter of positive operating cash flow[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=First%20Quarter%202024%20Financial%20Results) Q1 2024 results show sharp revenue decline from reduced auto trading, but profitability improved significantly due to cost cuts and credit loss recoveries [Revenues](index=2&type=section&id=REVENUES) Q1 2024 Revenue Breakdown (vs. Q1 2023) | Revenue Source | Q1 2024 (RMB) | Q1 2023 (RMB) | | :--- | :--- | :--- | | Total Revenues | 64.4 million | 542.6 million | | Automobile trading income | 3.4 million | 429.8 million | | Guarantee income | 30.3 million | 64.1 million | | After-market services income | 11.6 million | 16.7 million | | Loan facilitation income | 13.8 million | 2.3 million | [Operating Cost and Expenses](index=2&type=section&id=OPERATING%20COST%20AND%20EXPENSES) Q1 2024 Operating Expenses (vs. Q1 2023) | Expense Item | Q1 2024 (RMB) | Q1 2023 (RMB) | | :--- | :--- | :--- | | Cost of Revenue | 29.1 million | 480.5 million | | Sales and Marketing | 3.5 million | 12.5 million | | General and Administrative | 37.9 million | 39.8 million | | Research and Development | 1.1 million | 8.1 million | - The company recorded a net gain on contingent risk assurance liabilities of **RMB 15.0 million**, compared to a gain of **RMB 1.6 million** in Q1 2023[9](index=9&type=chunk) - A net recovery on provision for credit losses of **RMB 66.3 million** was recognized, primarily due to collections of financing receivables[9](index=9&type=chunk) [Profitability](index=3&type=section&id=INCOME%20FROM%20OPERATIONS) Q1 2024 Profitability Metrics (vs. Q1 2023) | Metric | Q1 2024 (RMB) | Q1 2023 (RMB) | | :--- | :--- | :--- | | Income from Operations | 74.2 million | 51.8 million | | Net Income | 90.0 million | 78.8 million | | Non-GAAP Adjusted Net Income | 95.7 million | 92.8 million | [Earnings Per ADS](index=3&type=section&id=NET%20INCOME%20PER%20ADS) Q1 2024 Earnings Per ADS | Metric | Basic (RMB) | Diluted (RMB) | | :--- | :--- | :--- | | Net Income per ADS | 0.85 | 0.80 | | Non-GAAP Adjusted Net Income per ADS | 0.91 | 0.85 | [Balance Sheet](index=3&type=section&id=BALANCE%20SHEET) Key Balance Sheet Items (as of Mar 31, 2024) | Item | Mar 31, 2024 (RMB) | Dec 31, 2023 (RMB) | | :--- | :--- | :--- | | Cash and cash equivalents | 1.2 billion | 1.0 billion | | Short-term investments | 2.3 billion | 635.1 million | [Corporate Developments and Outlook](index=3&type=section&id=Corporate%20Developments%20and%20Outlook) Cango projects Q2 2024 revenues between RMB 35 million and RMB 45 million, and has repurchased approximately US$579,000 in ADSs under its new program - For the second quarter of 2024, the Company expects total revenues to be between **RMB 35 million** and **RMB 45 million**[13](index=13&type=chunk) - Under the share repurchase program announced on April 23, 2024, the company repurchased **360,858 ADSs** for approximately **US$578,975.4** up to May 31, 2024[14](index=14&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements) Unaudited Q1 2024 statements detail Cango's financial position and performance, highlighting asset and liability levels, and net income despite revenue shifts [Consolidated Balance Sheet](index=7&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) Balance Sheet Summary (as of March 31, 2024) | Category | Amount (RMB) | | :--- | :--- | | **Total Current Assets** | **3.91 billion** | | Cash and cash equivalents | 1.16 billion | | Short-term investments | 2.32 billion | | **Total Assets** | **4.58 billion** | | **Total Current Liabilities** | **670.2 million** | | **Total Liabilities** | **723.7 million** | | **Total Shareholders' Equity** | **3.86 billion** | [Statements of Comprehensive Income](index=9&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Income Statement Summary (for Three Months Ended March 31, 2024) | Line Item | Amount (RMB) | | :--- | :--- | | Total Revenues | 64.4 million | | Total operation cost and expense | (9.7) million | | Income from operations | 74.2 million | | Net income before income taxes | 102.1 million | | **Net income** | **90.0 million** | [Appendix](index=4&type=section&id=Appendix) This section provides supplementary information, including definitions for overdue ratios, Non-GAAP financial measures, and reconciliation of adjusted net income [Use of Non-GAAP Financial Measures & Reconciliation](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measure) - The company uses Non-GAAP adjusted net income, which excludes share-based compensation expenses, to evaluate operating performance[19](index=19&type=chunk) Reconciliation of GAAP to Non-GAAP Net Income (Q1 2024) | Line Item | Amount (RMB) | | :--- | :--- | | Net income (GAAP) | 90.0 million | | Add: Share-based compensation expenses | 5.7 million | | **Non-GAAP adjusted net income** | **95.7 million** | [Definition of Overdue Ratios](index=4&type=section&id=Definition%20of%20Overdue%20Ratios) - M1+ overdue ratio is defined as the exposure at risk for payments **30-179 days past due**, divided by the total outstanding exposure at risk (excluding amounts **180+ days past due**)[18](index=18&type=chunk) - M3+ overdue ratio is defined as the exposure at risk for payments **90-179 days past due**, divided by the total outstanding exposure at risk (excluding amounts **180+ days past due**)[18](index=18&type=chunk)

Cango Inc. (NYSE:CANG) Q1 2024 Earnings Conference Call June 12, 2024 9:00 AM ET Company Participants Jiayuan Lin - CEO Yongyi Zhang - CFO Conference Call Participants Pingyue Wu - Citic Securities Operator Good morning, and good evening, everyone. Welcome to Cango Inc.'s First Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial O ...

SHANGHAI, June 12, 2024 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced its unaudited financial results for the first quarter of 2024.First Quarter 2024 Financial and Operational HighlightsTotal revenues were RMB64.4 million (US$8.9 million), compared with RMB542.6 million in the same period of 2023. Income from operations was RMB74.2 million (US$10.3 million) for the three months ended March 31, 2024, an increas ...