PART I [ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](index=7&type=section&id=ITEM%201.%20IDENTITY%20OF%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20ADVISERS) This section is not applicable as per the report - This item is not applicable[16](index=16&type=chunk) [ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](index=7&type=section&id=ITEM%202.%20OFFER%20STATISTICS%20AND%20EXPECTED%20TIMETABLE) This section is not applicable as per the report - This item is not applicable[16](index=16&type=chunk) [ITEM 3. KEY INFORMATION](index=7&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents selected historical financial data, discusses key risk factors, and provides information on capitalization and use of proceeds [Selected Financial Data](index=7&type=section&id=A.%20Selected%20Financial%20Data) The company's total revenues grew to **RMB 1.44 billion** in 2019, with net income attributable to ordinary shareholders reaching **RMB 390.9 million** Selected Consolidated Statements of Comprehensive Income Data (2017-2019) | Indicator | 2017 (RMB) | 2018 (RMB) | 2019 (RMB) | 2019 (US$) | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | 1,052,204 | 1,091,414 | 1,440,069 | 206,853 | | **Income from operations** | 470,020 | 276,720 | 323,296 | 46,439 | | **Net income** | 349,057 | 306,924 | 404,859 | 58,154 | | **Net income attributable to Cango Inc.'s ordinary shareholders** | 341,010 | 302,692 | 390,914 | 56,151 | | **Basic Earnings per ADS** | N/A | 2.17 | 2.59 | 0.37 | Selected Consolidated Balance Sheet Data (As of Dec 31) | Indicator | 2018 (RMB) | 2019 (RMB) | 2019 (US$) | | :--- | :--- | :--- | :--- | | **Total assets** | 7,301,140 | 8,736,574 | 1,254,930 | | **Total liabilities** | 2,045,773 | 3,244,914 | 466,103 | | **Total shareholders' equity** | 5,255,367 | 5,491,660 | 788,828 | Reconciliation of Net Income to Adjusted Net Income (Non-GAAP) | Indicator | 2017 (RMB) | 2018 (RMB) | 2019 (RMB) | 2019 (US$) | | :--- | :--- | :--- | :--- | :--- | | **Net income** | 349,057 | 306,924 | 404,859 | 58,154 | | Add: ESOP Expenses | — | 33,411 | 82,266 | 11,817 | | **Adjusted net income** | 349,057 | 340,335 | 487,125 | 69,971 | [Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) This section details significant risks including intense competition, reliance on financial institutions, regulatory changes, VIE structure uncertainties, and NYSE listing non-compliance - The company has a limited operating history in China's emerging automotive finance market, making historical performance not necessarily indicative of future results[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - The COVID-19 outbreak is expected to have a material adverse impact on business and financial condition for 2020 due to decreased auto purchases and potential rises in delinquency rates[38](index=38&type=chunk)[40](index=40&type=chunk) - The company relies on a limited number of financial institutions, with Jincheng Bank and WeBank representing **22.6%** and **16.4%** of total revenues in 2019 respectively[52](index=52&type=chunk)[53](index=53&type=chunk) - Contractual arrangements with its VIE (Shanghai Cango) may not be as effective as direct ownership and could be subject to scrutiny by PRC authorities[214](index=214&type=chunk)[224](index=224&type=chunk) - The company received a NYSE non-compliance notification on October 24, 2019, related to stockholder count, with potential delisting if compliance is not regained[295](index=295&type=chunk)[296](index=296&type=chunk)[298](index=298&type=chunk) - There is a significant risk that the company was a **Passive Foreign Investment Company (PFIC)** for U.S. federal income tax purposes for 2019, potentially resulting in adverse tax consequences for U.S. investors[334](index=334&type=chunk)[335](index=335&type=chunk) [ITEM 4. INFORMATION ON THE COMPANY](index=79&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of Cango Inc., detailing its history, business model, organizational structure, and facilities [History and Development of the Company](index=79&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Cango, founded in 2010, has expanded its automotive financing and dealer network, serving over **1.38 million** car buyers and completing its NYSE IPO in 2018 - The company was founded in 2010 and has cumulatively served **1,383,833** car buyers through its platform as of December 31, 2019[342](index=342&type=chunk) - Cango Inc. was incorporated in the Cayman Islands in October 2017 and established a VIE structure with Shanghai Cango to conduct its business in China[343](index=343&type=chunk) - The company completed its initial public offering on the New York Stock Exchange under the symbol "CANG" on July 26, 2018[346](index=346&type=chunk) [Business Overview](index=80&type=section&id=B.%20Business%20Overview) Cango operates an automotive transaction service platform in China, connecting **49,238** dealers and **13** financial institutions, facilitating **RMB 28.1 billion** in financing in 2019 - The company's platform connects **49,238** registered dealers, **13** third-party financial institutions, and **59** other industry participants[347](index=347&type=chunk) - Core services include automotive financing facilitation, automotive transaction facilitation, and after-market service facilitation[348](index=348&type=chunk) Financing Transactions Facilitated in 2019 | Metric | Value | | :--- | :--- | | Number of car purchases financed | 390,140 | | Total amount of financing transactions | RMB 28.1 billion (US$4.0 billion) | - The company has strategic partnerships with ICBC for expanding into tier-one and tier-two cities and with Didi Chuxing to provide solutions for its driver fleet[371](index=371&type=chunk)[372](index=372&type=chunk) [Organizational Structure](index=121&type=section&id=C.%20Organizational%20Structure) Cango Inc. operates in the PRC through a Variable Interest Entity (VIE), Shanghai Cango, controlled via contractual arrangements to comply with foreign ownership restrictions - The company operates in the PRC through a VIE structure to comply with foreign ownership restrictions, with Shanghai Cango as the consolidated VIE[516](index=516&type=chunk) - Control over the VIE is maintained through a series of contractual arrangements, enabling the company to consolidate its financial statements and receive economic benefits[517](index=517&type=chunk)[518](index=518&type=chunk) - PRC legal counsel has opined that the ownership structure and contractual arrangements are valid, but substantial uncertainties remain regarding PRC law interpretation[519](index=519&type=chunk)[520](index=520&type=chunk) [Facilities](index=126&type=section&id=D.%20Facilities) The company's headquarters are in Shanghai, leasing approximately **7,328 square meters** of office space, along with regional offices and warehouses across China - The company's headquarters are in Shanghai, and it leases all its office and warehouse facilities across China[530](index=530&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=126&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial condition and results, highlighting revenue growth, net income increase, liquidity, and capital resources [Operating Results](index=126&type=section&id=A.%20Operating%20Results) In 2019, total revenues grew **31.9%** to **RMB 1.44 billion**, driven by leasing and after-market services, with net income rising to **RMB 404.9 million** Key Financial Results Comparison (2018 vs 2019) | Metric | 2018 (RMB Million) | 2019 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | 1,091.4 | 1,440.1 | +31.9% | | Net Income | 306.9 | 404.9 | +31.9% | - The revenue growth in 2019 was mainly driven by a **RMB 241.0 million** increase in leasing income and a **RMB 105.9 million** increase in after-market services income[630](index=630&type=chunk) Credit Performance Metrics (As of Dec 31) | Ratio | 2018 | 2019 | | :--- | :--- | :--- | | M1+ Overdue Ratio | 0.74% | 0.85% | | M3+ Overdue Ratio | 0.37% | 0.40% | [Liquidity and Capital Resources](index=149&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by **RMB 2.00 billion** in cash and equivalents, **RMB 1.84 billion** in restricted cash, and **RMB 422.9 million** in operating cash flow, alongside increased borrowings Cash and Debt Position (As of Dec 31, 2019) | Item | Amount (RMB Million) | Amount (US$ Million) | | :--- | :--- | :--- | | Cash and cash equivalents | 2,002.3 | 287.6 | | Restricted cash | 1,844.7 | 265.0 | | Short-term debts | 1,439.7 | 206.8 | | Long-term debts | 1,165.1 | 167.4 | Summary of Cash Flows (2019) | Cash Flow Item | Amount (RMB Million) | Amount (US$ Million) | | :--- | :--- | :--- | | Net cash provided by operating activities | 422.9 | 60.7 | | Net cash used in investing activities | (1,198.4) | (172.1) | | Net cash provided by financing activities | 730.5 | 104.9 | [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=155&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, compensation, board structure, and employee base, noting co-founders' significant voting control - The company is led by co-founder and Chairman Xiaojun Zhang and co-founder, director, and CEO Jiayuan Lin[683](index=683&type=chunk)[684](index=684&type=chunk)[685](index=685&type=chunk) - In 2019, aggregate cash compensation paid to directors and executive officers was approximately **RMB 21.6 million (US$3.1 million)**[697](index=697&type=chunk) - As of December 31, 2019, the company had **3,189** employees, with **72.3%** in sales and marketing roles[728](index=728&type=chunk) - As of March 31, 2020, co-founders collectively exercised **87.2%** of the aggregate voting power, making the company a "controlled company" under NYSE rules[199](index=199&type=chunk)[739](index=739&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=169&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section outlines major shareholders and describes transactions with related parties, including Jincheng Bank, Didi Chuxing, and the VIE structure - Jincheng Bank was considered a related party until September 2017 due to co-founder Mr. Xiaojun Zhang's directorship, with the company providing automotive financing facilitation services[742](index=742&type=chunk)[743](index=743&type=chunk) - The company has a strategic business cooperation agreement with shareholder Didi Chuxing to provide vehicle sourcing, financing, and insurance facilitation to Didi's drivers and users[754](index=754&type=chunk)[755](index=755&type=chunk) - The company operates through a VIE structure, which involves contractual arrangements with the VIE (Shanghai Cango) and its shareholders, who are also related parties[749](index=749&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=171&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section confirms the consolidated financial statements are appended and details the company's dividend policy, including special cash dividends approved in 2019 and 2020 - The company's board approved special cash dividends of **US$0.125** per ordinary share (US$0.25 per ADS) on April 22, 2020, following a similar dividend in 2019[760](index=760&type=chunk) - The company's ability to pay dividends depends on distributions from its PRC subsidiaries, subject to PRC laws requiring allocation to statutory reserves[762](index=762&type=chunk) [ITEM 9. THE OFFER AND LISTING](index=172&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section details the listing of the company's American Depositary Shares (ADSs) on the New York Stock Exchange (NYSE) under the ticker symbol "CANG" since July 26, 2018 - The company's ADSs are listed on the New York Stock Exchange under the symbol "CANG" since July 26, 2018, with each ADS representing two Class A ordinary shares[763](index=763&type=chunk)[765](index=765&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=173&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section covers supplementary information including corporate documents, exchange controls, and taxation, highlighting the significant risk of being classified as a Passive Foreign Investment Company (PFIC) - The company is an exempted company in the Cayman Islands and is not subject to income, gains, or withholding taxes there[770](index=770&type=chunk) - There is a risk that PRC tax authorities could deem the company a PRC resident enterprise, subjecting it to a **25%** enterprise income tax on worldwide income and potential withholding taxes for non-PRC shareholders[771](index=771&type=chunk) - The company believes there is a significant risk it was a **Passive Foreign Investment Company (PFIC)** for U.S. federal income tax purposes for 2019, potentially resulting in adverse tax consequences for U.S. Holders[785](index=785&type=chunk)[790](index=790&type=chunk) [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=182&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section discusses the company's exposure to market risks, primarily foreign exchange risk due to RMB-denominated revenues and USD functional currency, with limited interest rate risk - The company's primary market risk is foreign exchange risk, as all revenues are denominated in RMB, impacting reported financial results due to RMB/USD fluctuations[813](index=813&type=chunk)[816](index=816&type=chunk) - The company has not been materially exposed to interest rate risk but notes that future changes could impact its interest-earning assets and borrowings[818](index=818&type=chunk) [ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](index=184&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECURITIES) This section describes the company's American Depositary Shares (ADSs), for which Citibank, N.A. serves as the depositary bank, detailing associated fees and listing information - Citibank, N.A. is the depositary bank for the company's ADSs[821](index=821&type=chunk) Selected Depositary Fees for ADS Holders | Service | Fee | | :--- | :--- | | Issuance of ADSs | Up to U.S. 5¢ per ADS | | Cancellation of ADSs | Up to U.S. 5¢ per ADS | | Distribution of cash dividends | Up to U.S. 5¢ per ADS held | PART II [ITEM 15. CONTROLS AND PROCEDURES](index=186&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2019 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the annual report[830](index=830&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2019[831](index=831&type=chunk) - The annual report does not include an attestation report from the registered public accounting firm regarding internal control over financial reporting due to the company's exemption as a non-accelerated filer[832](index=832&type=chunk) [ITEM 16. [RESERVED]](index=188&type=section&id=ITEM%2016.%20%5BRESERVED%5D) This section covers corporate governance and compliance, including principal accountant fees, share repurchases, and foreign private issuer exemptions from NYSE rules [Principal Accountant Fees and Services](index=188&type=section&id=ITEM%2016C.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Ernst & Young Hua Ming LLP was paid **US$919 thousand** for audit services in fiscal year 2019 Accountant Fees (in thousands of US dollars) | Fee Category | 2018 | 2019 | | :--- | :--- | :--- | | Audit Fees | $2,624 | $919 | | Tax Fees | — | — | | All Other Fees | — | — | | **Total** | **$2,624** | **$919** | [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](index=189&type=section&id=ITEM%2016E.%20PURCHASES%20OF%20EQUITY%20SECURITIES%20BY%20THE%20ISSUER%20AND%20AFFILIATED%20PURCHASERS) The company repurchased **431,556 ADSs** for approximately **US$3.0 million** under its **US$10 million** share repurchase program, with **US$7.0 million** remaining as of March 31, 2020 - The company announced a **US$10 million** share repurchase program on June 5, 2019[841](index=841&type=chunk) Share Repurchase Activity (June 5, 2019 to March 31, 2020) | Metric | Value | | :--- | :--- | | Total ADSs Purchased | 431,556 | | Average Price Paid per ADS | US$6.95 | | Total Cost | ~US$3.0 million | | Remaining Authorization | US$7.0 million | [Corporate Governance](index=189&type=section&id=ITEM%2016G.%20CORPORATE%20GOVERNANCE) As a foreign private issuer, the company follows home country (Cayman Islands) corporate governance practices, exempting it from certain NYSE listing standards - The company, as a foreign private issuer, follows home country (Cayman Islands) practices for certain corporate governance matters, exempting it from some NYSE listing standards[843](index=843&type=chunk) - Key differences from NYSE standards include not having compensation or nominating committees composed entirely of independent directors[844](index=844&type=chunk) PART III [ITEM 18. FINANCIAL STATEMENTS](index=190&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for 2017-2019, prepared under U.S. GAAP, with an unqualified opinion from Ernst & Young Hua Ming LLP - The report includes audited consolidated financial statements for the years ended December 31, 2017, 2018, and 2019, prepared in accordance with U.S. GAAP[848](index=848&type=chunk)[858](index=858&type=chunk) - The independent auditor, Ernst & Young Hua Ming LLP, issued an unqualified opinion on the financial statements[858](index=858&type=chunk)[863](index=863&type=chunk) - The company adopted new accounting standards for revenue recognition (ASC 606) and certain equity securities in 2019[859](index=859&type=chunk) [ITEM 19. EXHIBITS](index=190&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed as part of the annual report, including corporate documents, VIE agreements, and Sarbanes-Oxley Act certifications - Lists key corporate documents filed as exhibits, including the Memorandum and Articles of Association, Deposit Agreement, and various contractual arrangements governing the VIE structure[849](index=849&type=chunk)[850](index=850&type=chunk) - Includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[852](index=852&type=chunk)

Cango Inc. (NYSE:CANG) Q3 2019 Earnings Conference Call November 14, 2019 8:00 PM ET Company Participants Jiayuan Lin – Chief Executive Officer; Yongyi Zhang – Chief Financial Officer Conference Call Participants John Cai – Morgan Stanley Lucy Li – Goldman Sachs Operator Good morning and good evening. Welcome to Cango Inc.’s Third Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. This call is also being broadcast live on the company’s IR website. Joining us toda ...

Cango, Inc. (NYSE:CANG) Q1 2019 Results Earnings Conference Call May 29, 2019 9:00 PM ET Company Participants Jiayuan Lin - CEO Yongyi Zhang - CFO Conference Call Participants John Cai - Morgan Stanley Lucy Li - Goldman Sachs Emma Xu - Bank of America Merrill Lynch Operator Good morning and good evening everyone. Welcome to Cango Inc.'s First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website. Jo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...

Cango, Inc. (NYSE:CANG) Q4 2018 Results Conference Call March 28, 2019 9:00 AM ET Company Participants Lin Jiayuan - CEO Michael Zhang - CFO Conference Call Participants Michael Li - Bank of America Lucy Li - Goldman Sachs Eddy Wang - Morgan Stanley Operator Good day, and welcome to the Cango Incorporated Fourth Quarter and Full Year 2018 Results Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to tu ...