|
International: |
+1-412-902-4272 |
|
United States Toll Free: |
+1-888-346-8982 |
|
Mainland China Toll Free: |
4001-201-203 |
|
Hong Kong, China Toll Free: |
800-905-945 |
|
Conference ID: |
Cango Inc. |
The replay will be accessible through May 21, 2025, by dialing the following numbers:
|
International: |
+1-412-317-0088 |
|
United States Toll Free: |
+1-877-344-7529 |
|
Access Code: |
8016651 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at .
About Cango Inc.
Cango Inc. (NYSE: CANG ) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit:
Definition of Overdue Ratios
The Company defines “M1+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
The Company defines “M3+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
Use of Non-GAAP Financial Measure
As part of our review of business performance, we present adjusted EBITDA as Non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, and further excludes share-based compensation expenses and other non-operating income and expenses. We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.
While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of its core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Reconciliations of Cango’s Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the “Business Outlook” section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango’s goal and strategies; Cango’s expansion plans; Cango’s future business development, financial condition and results of operations; Cango’s expectations regarding demand for, and market acceptance of, its solutions and services; Cango’s expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: [email protected]
Helen Wu
Piacente Financial Communications
Tel: +86 10 6508 0677
Email: [email protected]
|
[1] Revenue from automotive trading related income consists revenues generated from loan facilitation income and other related income, guarantee income, leasing income, after-market services income, automotive trading income and others. |
|
CANGO INC. |
|||||||
|
As of December 31, |
As of March 31, |
||||||
|
(Audited) |
(Unaudited) |
(Unaudited) |
|||||
|
RMB |
RMB |
US$ |
|||||
|
ASSETS: |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
1,289,629,981 |
2,515,712,358 |
346,674,433 |
||||
|
Restricted cash – current |
10,813,746 |
11,210,722 |
1,544,879 |
||||
|
Short-term investments, net |
1,231,171,751 |
5,188,899 |
715,049 |
||||
|
Accounts receivable, net |
22,991,951 |
15,801,108 |
2,177,451 |
||||
|
Finance lease receivables – current, net |
20,685,475 |
19,332,969 |
2,664,154 |
||||
|
Financing receivables, net |
5,685,096 |
3,722,236 |
512,938 |
||||
|
Short-term contract asset, net |
33,719,944 |
19,860,987 |
2,736,917 |
||||
|
Prepayments and other current assets, net |
226,352,004 |
362,016,043 |
49,887,145 |
||||
|
Receivable for bitcoin collateral, net |
617,057,765 |
1,464,654,137 |
201,834,737 |
||||
|
Total current assets |
3,458,107,713 |
4,417,499,459 |
608,747,703 |
||||
|
Non-current assets: |
|||||||
|
Restricted cash – non-current |
287,425,602 |
161,939,581 |
22,315,871 |
||||
|
Long-term investment |
– |
400,000,000 |
55,121,474 |
||||
|
Mining machines, net |
1,772,319,041 |
1,619,608,093 |
223,187,963 |
||||
|
Property and equipment, net |
6,634,509 |
6,205,894 |
855,195 |
||||
|
Intangible assets, net |
47,425,617 |
47,259,479 |
6,512,530 |
||||
|
Long-term contract asset, net |
17,551,040 |
348,864 |
48,075 |
||||
|
Finance lease receivables – non-current, net |
9,309,227 |
3,648,111 |
502,723 |
||||
|
Operating lease right-of-use assets, net |
40,788,977 |
38,789,517 |
5,345,338 |
||||
|
Other non-current assets, net |
329,761,833 |
359,761,832 |
49,576,506 |
||||
|
Total non-current assets |
2,511,215,846 |
2,637,561,371 |
363,465,675 |
||||
|
TOTAL ASSETS |
5,969,323,559 |
7,055,060,830 |
972,213,378 |
||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||
|
Current liabilities: |
|||||||
|
Short-term debts |
124,584,293 |
790,393,522 |
108,919,140 |
||||
|
Accrued expenses and other current liabilities |
1,348,300,779 |
1,999,990,186 |
275,606,016 |
||||
|
Deferred guarantee income |
11,787,712 |
7,974,712 |
1,098,945 |
||||
|
Contingent risk assurance liabilities |
31,190,425 |
20,979,625 |
2,891,070 |
||||
|
Income tax payable |
311,130,341 |
314,258,152 |
43,305,931 |
||||
|
Short-term lease liabilities |
7,912,420 |
7,639,264 |
1,052,719 |
||||
|
Total current liabilities |
1,834,905,970 |
3,141,235,461 |
432,873,821 |
||||
|
Non-current liabilities: |
|||||||
|
Deferred tax liability |
10,724,133 |
10,724,133 |
1,477,825 |
||||
|
Long-term operating lease liabilities |
37,044,466 |
35,769,502 |
4,929,169 |
||||
|
Other non-current liabilities |
19,118 |
18,131 |
2,499 |
||||
|
Total non-current liabilities |
47,787,717 |
46,511,766 |
6,409,493 |
||||
|
Total liabilities |
1,882,693,687 |
3,187,747,227 |
439,283,314 |
||||
|
Shareholders’ equity |
|||||||
|
Ordinary shares |
199,087 |
199,087 |
27,434 |
||||
|
Treasury shares |
(756,517,941) |
(754,199,105) |
(103,931,416) |
||||
|
Additional paid-in capital |
4,725,877,432 |
4,749,907,787 |
654,554,796 |
||||
|
Accumulated other comprehensive income |
152,882,024 |
114,572,087 |
15,788,456 |
||||
|
Accumulated deficit |
(35,810,730) |
(243,166,253) |
(33,509,206) |
||||
|
Total Cango Inc.’s equity |
4,086,629,872 |
3,867,313,603 |
532,930,064 |
||||
|
Total shareholders’ equity |
4,086,629,872 |
3,867,313,603 |
532,930,064 |
||||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
5,969,323,559 |
7,055,060,830 |
972,213,378 |
|
CANGO INC. |
|||||||
|
Three months ended March 31 |
|||||||
|
2024 |
2025 |
||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||
|
RMB |
RMB |
US$ |
|||||
|
Revenues |
64,422,494 |
1,053,883,166 |
145,228,984 |
||||
|
Bitcoin mining income |
– |
1,046,266,997 |
144,179,448 |
||||
|
Loan facilitation income and other related income |
13,821,022 |
(829,251) |
(114,274) |
||||
|
Guarantee income |
30,259,581 |
4,043,650 |
557,230 |
||||
|
Leasing income |
4,939,712 |
2,088,483 |
287,801 |
||||
|
After-market services income |
11,637,788 |
776,803 |
107,046 |
||||
|
Automobile trading income |
3,445,040 |
70,796 |
9,756 |
||||
|
Others |
319,351 |
1,465,688 |
201,977 |
||||
|
Operating cost and expenses: |
|||||||
|
Cost of revenue |
29,058,868 |
955,091,082 |
131,615,070 |
||||
|
Sales and marketing |
3,548,273 |
415,981 |
57,324 |
||||
|
General and administrative |
37,923,531 |
92,536,718 |
12,751,901 |
||||
|
Research and development |
1,098,105 |
324,991 |
44,785 |
||||
|
Net gain on contingent risk assurance liabilities |
(15,018,246) |
(5,269,261) |
(726,124) |
||||
|
Net recovery on provision for credit losses |
(66,339,084) |
(28,702,162) |
(3,955,264) |
||||
|
Loss from change in fair value of receivable for bitcoin collateral |
– |
194,957,999 |
26,865,931 |
||||
|
Total operation cost and expense |
(9,728,553) |
1,209,355,348 |
166,653,623 |
||||
|
(Loss) income from operations |
74,151,047 |
(155,472,182) |
(21,424,639) |
||||
|
Interest income |
16,503,965 |
2,152,469 |
296,618 |
||||
|
Net investment income |
10,984,524 |
– |
– |
||||
|
Interest expense |
– |
(9,517,781) |
(1,311,585) |
||||
|
Foreign exchange gain (loss), net |
131,689 |
(818,002) |
(112,724) |
||||
|
Other income |
832,551 |
13,609,872 |
1,875,491 |
||||
|
Other expenses |
(535,390) |
(54,180,931) |
(7,466,332) |
||||
|
Net income (loss) before income taxes |
102,068,386 |
(204,226,555) |
(28,143,171) |
||||
|
Income tax expense |
(12,041,600) |
(3,128,968) |
(431,183) |
||||
|
Net income (loss) |
90,026,786 |
(207,355,523) |
(28,574,354) |
||||
|
Net income (loss) attributable to Cango Inc.’s shareholders |
90,026,786 |
(207,355,523) |
(28,574,354) |
||||
|
Earnings (losses) per ADS attributable to ordinary shareholders: |
|||||||
|
Basic |
0.85 |
(2.00) |
(0.28) |
||||
|
Diluted |
0.80 |
(2.00) |
(0.28) |
||||
|
Weighted average ADS used to compute earnings per ADS attributable to |
|||||||
|
Basic |
105,521,018 |
103,783,087 |
103,783,087 |
||||
|
Diluted |
112,786,810 |
103,783,087 |
103,783,087 |
||||
|
Other comprehensive income (loss), net of tax |
|||||||
|
Foreign currency translation adjustment |
20,894,928 |
(38,309,937) |
(5,279,250) |
||||
|
Total comprehensive income (loss) |
110,921,714 |
(245,665,460) |
(33,853,604) |
||||
|
Total comprehensive income (loss) attributable to Cango Inc.’s shareholders |
110,921,714 |
(245,665,460) |
(33,853,604) |
|
CANGO INC. |
|||||
|
Three months ended March 31 |
|||||
|
2024 |
2025 |
||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
|
RMB |
RMB |
US$ |
|||
|
Net (loss) income |
90,026,786 |
(207,355,523) |
(28,574,354) |
||
|
Add: Interest expense |
– |
9,517,781 |
1,311,585 |
||
|
Add: Income tax expenses |
12,041,600 |
3,128,968 |
431,183 |
||
|
Add: Depreciation and amortization |
927,576 |
155,503,915 |
21,429,012 |
||
|
Cost of revenue |
– |
154,944,205 |
21,351,882 |
||
|
General and administrative |
879,591 |
559,710 |
77,130 |
||
|
Research and development |
47,985 |
– |
– |
||
|
Add: Other expenses |
535,390 |
54,180,931 |
7,466,332 |
||
|
Less: Other income |
832,551 |
13,609,872 |
1,875,491 |
||
|
Add: Share-based compensation expenses |
5,717,422 |
26,187,822 |
3,608,778 |
||
|
Cost of revenue |
254,391 |
58,766 |
8,098 |
||
|
Sales and marketing |
1,046,659 |
339,524 |
46,788 |
||
|
General and administrative |
4,416,372 |
25,783,442 |
3,553,053 |
||
|
Research and development |
– |
6,090 |
839 |
||
|
Non-GAAP adjusted EBITDA |
108,416,223 |
27,554,022 |
3,797,045 |
||
|
Non-GAAP adjusted EBITDA attributable to Cango Inc.’s shareholders |
108,416,223 |
27,554,022 |
3,797,045 |
SOURCE Cango Inc.
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