SHANGHAI, Aug. 30, 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 Highlights

  • Total 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 with a loss of RMB8.9 million in the same period last year. Net income was RMB86.0 million (US$11.8 million) for the three months ended June 30, 2024, an increase of 137.5% from RMB36.2 million in the same period last year.
  • The total outstanding balance of financing transactions the Company facilitated was RMB6.2 billion (US$850.0 million) as of June 30, 2024. Our credit risk exposure has decreased to a lower level, of which only RMB2.7 billion (US$ 375.0 million) of outstanding balance of loans where the Company bears credit risks have not been provided with full bad debt allowance or full risk assurance liabilities. M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 2.93% and 1.57%, respectively, as of June 30, 2024, compared with 2.87% and 1.51%, respectively, as of March 31, 2024.
  • Total balance of cash and cash equivalents and short-term investments increased by RMB207.1 million (US$28.5 million) compared with that as of March 31, 2024.

Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, “China’s automotive market remained sluggish in the second quarter, presenting significant challenges for the industry. In response to these challenges, we reinforced our financial stability through disciplined expense management and cost-efficiency measures while seizing the used car market’s immense potential and opportunities. Over the past quarter, we focused on enhancing  the competitiveness of ‘Cango U-car’ by ensuring a consistent supply of high-quality vehicles, optimizing dealer experiences and supply chain management, and improving the convenience and security of cross-regional deliveries.”

“Beyond ‘Cango U-car,’ we made significant strides in cross-border used car transactions during the quarter. Since its launch in March 2024, our international used car website, Autocango.com, has quickly gained traction among global audiences. We significantly expanded its market coverage as well as its range of product and service offerings in the second quarter. To date, its premium services and vast offering of over 85,000 high-quality used car SKUs have attracted over 180,000 visits with more than 20,000 registered users across 207 countries and regions worldwide. Furthermore, our streamlined, asset-light, and traffic-focused approach enables us to control operating costs while creating value. Ultimately, we aim to position Autocango.com as the premier gateway for exporting Chinese used cars. Moving forward, Cango will continue to deepen its partnership with overseas markets, further optimizing our trading functionality and services to better serve car buyers both in and outside China,” concluded Mr. Lin.

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, “Despite market challenges, we maintained robust financial stability through disciplined expense management and cost-efficiency measures. Our net income for the quarter surged by 137.5% compared to the same period last year, and our cash position remains strong. As we enter the second half of the year, we will continue to enforce stringent cost control and risk management strategies, while actively exploring new initiatives leveraging Cango’s extensive industry expertise.”

Second Quarter 2024 Financial Results

REVENUES

Total revenues in the second quarter of 2024 were RMB45.1 million (US$6.2 million) compared with RMB675.4 million in the same period of 2023. Guarantee income, which represented the fee income earned on the non-contingent aspect of a guarantee, was RMB20.9 million (US$2.9 million) in the second quarter of 2024. This was presented separately from the contingent aspect of a guarantee pursuant to the adoption of ASC 326 since January 1, 2023.

OPERATING COST AND EXPENSES

  • Cost of revenue in the second quarter of 2024 decreased to RMB26.5 million (US$3.7 million) from RMB615.8 million in the same period of 2023. As a percentage of total revenues, cost of revenue in the second quarter of 2024 was 58.8% compared with 91.2% in the same period of 2023.
  • Sales and marketing expenses in the second quarter of 2024 decreased to RMB4.0 million (US$0.5 million) from RMB12.2 million in the same period of 2023.
  • General and administrative expenses in the second quarter of 2024 were RMB39.2 million (US$5.4 million) compared with RMB36.8 million in the same period of 2023.
  • Research and development expenses in the second quarter of 2024 decreased to RMB1.7 million (US$0.2 million) from RMB7.7 million in the same period of 2023.
  • Net gain on contingent risk assurance liabilities in the second quarter of 2024 was RMB10.3 million (US$1.4 million) compared with a net loss of RMB1.6 million in the same period of 2023.
  • Net recovery on provision for credit losses in the second quarter of 2024 was RMB63.0 million (US$8.7 million) compared with a net loss of RMB10.2 million in the same period of 2023.

INCOME FROM OPERATIONS

Income from operations in the second quarter of 2024 was RMB47.0 million (US$6.5 million), compared with a loss of RMB8.9 million in the same period of 2023.

NET INCOME

Net income in the second quarter of 2024 was RMB86.0 million (US$11.8 million). Non-GAAP adjusted net income in the second quarter of 2024 was RMB90.7 million (US$12.5 million). Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measure.”

NET INCOME PER ADS

Basic and diluted net income per American Depositary Share (the “ADS”) in the second quarter of 2024 were RMB0.83 (US$0.11) and RMB0.76 (US$0.10), respectively. Non-GAAP adjusted basic and diluted net income per ADS in the second quarter of 2024 were RMB0.87 (US$0.12) and RMB0.80 (US$0.11), respectively. Each ADS represents two Class A ordinary shares of the Company.

BALANCE SHEET

  • As of June 30, 2024, the Company had cash and cash equivalents of RMB949.5 million (US$130.6 million), compared with RMB1.2 billion as of March 31, 2024.
  • As of June 30, 2024, the Company had short-term investments of RMB2.7 billion (US$376.5 million), compared with RMB2.3 billion as of March 31, 2024.

Business Outlook

For the third quarter of 2024, the Company expects total revenues to be between RMB20 million and RMB25 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Share Repurchase Program

Pursuant to the share repurchase program announced on April 23, 2024 (the “New Share Repurchase Program”), the Company had repurchased 840,838 ADSs with cash in the aggregate amount of approximately US$1.5 million up to August 16, 2024.

Conference Call Information

The Company’s management will hold a conference call on Thursday, August 29, 2024, at 9:00 P.M. Eastern Time or Friday, August 30, 2024, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

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 September 5, 2024 by dialing the following numbers:            

International:  

+1-412-317-0088

United States Toll Free:       

+1-877-344-7529

Access Code:  

2443056

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cangoonline.com/.

About Cango Inc.

Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China, connecting car buyers, dealers, financial institutions, and other industry participants. Founded in 2010 by a group of pioneers in China’s automotive finance industry, the Company is headquartered in Shanghai and has a nationwide network. Leveraging its competitive advantages in technological innovation and big data, Cango has established an automotive supply chain ecosystem, and developed a matrix of products centering on customer needs for auto transactions, auto financing and after-market services. By working with platform participants, Cango endeavors to make car purchases simple and enjoyable, and make itself customers’ car purchase service platform of choice. For more information, please visit: www.cangoonline.com. 

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

In evaluating the business, the Company considers and uses Non-GAAP adjusted net income (loss), a Non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the Non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income (loss) as net income (loss) excluding share-based compensation expenses. The Company presents the Non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income (loss) enables the management to assess the Company’s operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the Non-GAAP measure facilitates investors’ assessment of its operating performance.

Non-GAAP adjusted net income (loss) is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using Non-GAAP adjusted net income (loss) is that it does not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of Non-GAAP adjusted net income (loss). Further, the Non-GAAP measure may differ from the Non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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: ir@cangoonline.com
Twitter: https://twitter.com/Cango_Group

Helen Wu
Piacente Financial Communications
Tel: +86 10 6508 0677
Email: ir@cangoonline.com

 

 

 

CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data

As of December 31,
2023

 

As of June 30,
2024

 RMB 

 RMB 

 US$ 

ASSETS:

Current assets:

Cash and cash equivalents

1,020,604,191

949,450,190

130,648,694

Restricted cash – current – bank deposits held for short-term investments

1,670,006,785

Restricted cash – current

14,334,937

13,672,966

1,881,463

Short-term investments

635,070,394

2,735,968,872

376,481,846

Accounts receivable, net

64,791,709

40,068,078

5,513,551

Finance lease receivables – current, net

200,459,435

78,607,773

10,816,790

Financing receivables, net

29,522,035

14,629,276

2,013,055

Short-term contract asset

170,623,200

65,299,784

8,985,549

Prepayments and other current assets 

78,606,808

62,519,984

8,603,036

Total current assets

3,884,019,494

3,960,216,923

544,943,984

Non-current assets:

Restricted cash – non-current

583,380,417

489,818,652

67,401,290

Property and equipment, net

8,239,037

7,061,030

971,630

Intangible assets

48,373,192

47,865,203

6,586,471

Long-term contract asset

36,310,769

498,307

68,569

Finance lease receivables – non-current, net

36,426,617

9,937,420

1,367,435

Operating lease right-of-use assets

47,154,944

45,082,195

6,203,516

Other non-current assets

4,705,544

4,056,835

558,239

Total non-current assets

764,590,520

604,319,642

83,157,150

TOTAL ASSETS

4,648,610,014

4,564,536,565

628,101,134

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term debts

39,071,500

Long-term debts—current

926,237

715,342

98,434

Accrued expenses and other current liabilities

206,877,626

154,492,866

21,258,925

Deferred guarantee income

86,218,888

35,052,488

4,823,383

Contingent risk assurance liabilities 

125,140,991

51,974,769

7,151,966

Income tax payable

311,904,279

314,347,710

43,255,684

Short-term lease liabilities

7,603,380

7,536,210

1,037,017

Total current liabilities

777,742,901

564,119,385

77,625,409

Non-current liabilities:

Long-term debts

712,023

650,253

89,478

Deferred tax liability

10,724,133

10,724,133

1,475,690

Long-term operating lease liabilities

42,228,435

41,861,689

5,760,360

Other non-current liabilities

226,035

142,603

19,623

Total non-current liabilities

53,890,626

53,378,678

7,345,151

Total liabilities

831,633,527

617,498,063

84,970,560

Shareholders’ equity

Ordinary shares

204,260

204,260

28,107

Treasury shares

(773,130,748)

(780,064,771)

(107,340,485)

Additional paid-in capital

4,813,679,585

4,745,898,255

653,057,334

Accumulated other comprehensive income

111,849,166

140,576,911

19,344,027

Retained earnings

(335,625,776)

(159,576,153)

(21,958,409)

Total Cango Inc.’s  equity

3,816,976,487

3,947,038,502

543,130,574

Total shareholders’ equity

3,816,976,487

3,947,038,502

543,130,574

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

4,648,610,014

4,564,536,565

628,101,134

 

 

 

CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)

 Three months ended June 30 

 Six months ended June 30 

2023

2024

2023

2024

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

Revenues

675,430,076

45,079,736

6,203,178

1,218,043,439

109,502,230

15,068,008

Loan facilitation income and other related income 

13,957,481

1,669,748

229,765

16,272,881

15,490,770

2,131,601

Guarantee income 

55,875,460

20,906,819

2,876,874

120,004,206

51,166,400

7,040,731

Leasing income

16,645,952

3,341,561

459,814

38,859,633

8,281,273

1,139,541

After-market services income 

10,529,314

16,517,025

2,272,818

27,248,790

28,154,813

3,874,231

Automobile trading income

562,758,493

1,469,154

202,162

992,608,136

4,914,194

676,216

Others

15,663,376

1,175,429

161,744

23,049,793

1,494,780

205,688

Operating cost and expenses:

Cost of revenue

615,829,103

26,525,482

3,650,028

1,096,347,083

55,584,350

7,648,661

Sales and marketing

12,153,129

3,985,488

548,421

24,691,691

7,533,761

1,036,680

General and administrative

36,834,735

39,170,818

5,390,084

76,637,265

77,094,349

10,608,535

Research and development

7,748,158

1,670,526

229,872

15,850,521

2,768,631

380,976

Net loss (gain) on contingent risk assurance liabilities

1,556,164

(10,257,113)

(1,411,426)

(66,392)

(25,275,359)

(3,478,005)

Provision (net recovery on provision) for credit losses

10,238,843

(62,990,492)

(8,667,780)

(38,315,257)

(129,329,576)

(17,796,342)

Total operation cost and expense

684,360,132

(1,895,291)

(260,801)

1,175,144,911

(11,623,844)

(1,599,495)

(Loss) income from operations

(8,930,056)

46,975,027

6,463,979

42,898,528

121,126,074

16,667,503

Interest income

20,718,511

33,754,595

4,644,787

39,499,391

50,258,560

6,915,808

Net gain (loss) on equity securities

4,668,993

(6,004,598)

(826,260)

8,401,348

4,979,926

685,261

Interest expense

(1,652,610)

(3,946,695)

Foreign exchange gain, net

3,820,047

361,803

49,786

2,835,740

493,492

67,907

Other income

3,138,715

4,585,054

630,924

7,598,612

5,417,605

745,487

Other expenses

(96,249)

(1,300,073)

(178,896)

(227,134)

(1,835,463)

(252,568)

Net income before income taxes

21,667,351

78,371,808

10,784,320

97,059,790

180,440,194

24,829,398

Income tax expenses (benefits)

14,559,258

7,651,029

1,052,817

17,931,896

(4,390,571)

(604,163)

Net income

36,226,609

86,022,837

11,837,137

114,991,686

176,049,623

24,225,235

Net income attributable to Cango Inc.’s shareholders

36,226,609

86,022,837

11,837,137

114,991,686

176,049,623

24,225,235

Earnings per ADS attributable to ordinary shareholders:

Basic

0.27

0.83

0.11

0.86

1.68

0.23

Diluted

0.26

0.76

0.10

0.82

1.56

0.21

Weighted average ADS used to compute earnings per
ADS attributable to ordinary shareholders: 

Basic

133,052,781

104,041,560

104,041,560

133,906,218

104,781,289

104,781,289

Diluted

138,366,712

113,656,131

113,656,131

139,610,743

112,790,662

112,790,662

Other comprehensive income, net of tax

Foreign currency translation adjustment

78,051,511

7,832,817

1,077,831

72,030,932

28,727,745

3,953,069

Total comprehensive income 

114,278,120

93,855,654

12,914,968

187,022,618

204,777,368

28,178,304

Total comprehensive income attributable to Cango Inc.’s
shareholders

114,278,120

93,855,654

12,914,968

187,022,618

204,777,368

28,178,304

 

 

 

CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data

 Three months ended June 30 

 Six months ended June 30 

2023

2024

2023

2024

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 (Unaudited) 

 RMB 

 RMB 

 US$ 

 RMB 

 RMB 

 US$ 

Net income

36,226,609

86,022,837

11,837,137

114,991,686

176,049,623

24,225,235

Add: Share-based compensation expenses

11,980,577

4,688,971

645,224

26,039,675

10,406,393

1,431,967

  Cost of revenue

728,462

212,617

29,257

1,475,878

467,008

64,262

  Sales and marketing

2,345,570

868,477

119,506

5,138,966

1,915,136

263,531

  General and administrative

8,376,396

3,382,804

465,490

18,283,664

7,799,176

1,073,203

  Research and development

530,149

225,073

30,971

1,141,167

225,073

30,971

Non-GAAP adjusted net income

48,207,186

90,711,808

12,482,361

141,031,361

186,456,016

25,657,202

Net income attributable to Cango Inc.’s shareholders

48,207,186

90,711,808

12,482,361

141,031,361

186,456,016

25,657,202

Non-GAAP adjusted net income per ADS-basic

0.36

0.87

0.12

1.05

1.78

0.24

Non-GAAP adjusted net income per ADS-diluted

0.35

0.80

0.11

1.01

1.65

0.23

Weighted average ADS outstanding—basic

133,052,781

104,041,560

104,041,560

133,906,218

104,781,289

104,781,289

Weighted average ADS outstanding—diluted

138,366,712

113,656,131

113,656,131

139,610,743

112,790,662

112,790,662

 

 

 

Source : Cango Inc. Reports Second Quarter 2024 Unaudited Financial Results

The information provided in this article was created by Cision PR Newswire, our news partner. The author's opinions and the content shared on this page are their own and may not necessarily represent the perspectives of Thailand Business Directory.

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