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
Highlights
- Total 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 increase of 43.1% from
RMB51.8 million in the same period
last year. Net income was RMB90.0
million (US$12.5 million) for
the three months ended March 31,
2024, an increase of 14.3% from RMB78.8 million in the same period last
year.
- The total outstanding balance of financing transactions the
Company facilitated was RMB7.6
billion (US$1.1 billion) as of
March 31, 2024. M1+ and M3+ overdue
ratios for all financing transactions that remained outstanding and
were facilitated by the Company were 2.87% and 1.51%, respectively,
as of March 31, 2024, compared with
2.66% and 1.37%, respectively, as of December 31, 2023.
- Total balance of cash and cash equivalents, short-term
investments and restricted cash - current - bank deposits held for
short-term investments increased by RMB152.6
million (US$21.1 million)
compared to that as of December 31,
2023. The liquidity improvement was primarily driven by the
positive operating cash flow generated by decreased working capital
for car trading transactions, collections of financing receivables,
and loan facilitation service fees.
Mr. Jiayuan Lin, Chief Executive
Officer of Cango, commented, "In the first quarter of 2024, the
Chinese automotive industry continued to encounter significant
challenges. Traditional automakers are under pressure to transform
and adapt to the new energy era and emerging NEV manufacturers are
facing intense market competition and severe profitability
struggles. In response to these trends, Cango proactively reduced
the scale of our self-operated new car business, streamlined
purchasing, and optimized inventory management, mitigating the risk
of declining new car prices.
"In the first quarter, we completed the integration of 'Cango
U-car' and further strengthened the platform's competitive
advantages by ensuring a consistent supply of high-quality
vehicles, optimizing dealer service experiences and supply chain
management.
"We also made significant strides in cross-border used car
transactions during the first quarter. In March, we officially
launched a cross-border information platform specifically for used
car transactions. This platform brings insights into the Chinese
used car market to multilingual global users, filling a gap in
domestic cross-border used car transaction information services.
Our ultimate goal is to build this platform into the preferred
gateway for Chinese used cars to enter the international
market.
"Looking ahead, we will remain committed to exploring new
business models and expanding growth opportunities. We firmly
believe that through continuous innovation and meticulous
management, Cango will drive a long-term and sustainable
development," concluded Mr. Lin.
Mr. Yongyi Zhang, Chief Financial
Officer of Cango, stated, "Our strategic efforts to scale back new
car inventory and improve operational efficiency have begun to bear
fruit, resulting in a profit for the first quarter of 2024. We also
achieved a third consecutive quarter of positive operating cash
flow, allowing us to maintain a strong cash position. We are
confident that our meticulous cost control and effective liquidity
management will propel Cango's long-term growth and progress."
First Quarter 2024 Financial Results
REVENUES
Total revenues in the first quarter of 2024 were RMB64.4 million (US$8.9 million) compared with RMB542.6 million in the same period of 2023. The
guarantee income, which represented the fee income earned on the
non-contingent aspect of a guarantee, was RMB30.3 million (US$4.2
million) in the first 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 first quarter of 2024 decreased to
RMB29.1 million (US$4.0 million) from RMB480.5 million in the same period of 2023. As a
percentage of total revenues, cost of revenue in the first quarter
of 2024 was 45.1% compared with 88.6% in the same period of
2023.
- Sales and marketing expenses in the first quarter of 2024
decreased to RMB3.5 million
(US$0.5 million) from RMB12.5 million in the same period of 2023.
- General and administrative expenses in the first quarter of
2024 decreased to RMB37.9 million
(US$5.3 million) from RMB39.8 million in the same period of 2023.
- Research and development expenses in the first quarter of 2024
decreased to RMB1.1 million
(US$0.2 million) from RMB8.1 million in the same period of 2023.
- Net gain on contingent risk assurance liabilities in the first
quarter of 2024 was RMB15.0 million
(US$2.1 million) compared with
RMB1.6 million in the same period of
2023. The gain was recognized due to the release of obligations
from the contingent aspect of the risk assurance liabilities.
- Net recovery on provision for credit losses in the first
quarter of 2024 was RMB66.3 million
(US$9.2 million). The recovery was
primarily due to the positive impact from the collections of
financing receivables.
INCOME FROM OPERATIONS
Income from operations in the first quarter of 2024 was
RMB74.2 million (US$10.3 million), an increase of 43.1% from
RMB51.8 million in the same period of
2023.
NET INCOME
Net income in the first quarter of 2024 was RMB90.0 million (US$12.5
million). Non-GAAP adjusted net income in the first quarter
of 2024 was RMB95.7 million
(US$13.3 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 first quarter of 2024 were RMB0.85 (US$0.12)
and RMB0.80 (US$0.11), respectively. Non-GAAP adjusted basic
and diluted net income per ADS in the first quarter of 2024 were
RMB0.91 (US$0.13) and RMB0.85 (US$0.12),
respectively. Each ADS represents two Class A ordinary shares of
the Company.
BALANCE SHEET
- As of March 31, 2024, the Company
had cash and cash equivalents of RMB1.2
billion (US$160.1 million),
compared with RMB1.0 billion as of
December 31, 2023.
- As of March 31, 2024, the Company
had short-term investments of RMB2.3
billion (US$321.6 million),
compared with RMB635.1 million as of
December 31, 2023. The increase was
mainly due to the conversion from restricted cash – bank deposits
held for short-term investments of RMB1,670.0 million on December 31, 2023 after the Company completed its
subscription process.
Business Outlook
For the second quarter of 2024, the Company expects total
revenues to be between RMB35 million
and RMB45 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 360,858 ADSs with
cash in the aggregate amount of approximately US$578,975.4 up to May 31,
2024.
Conference Call Information
The Company's management will hold a conference call on
Wednesday, June 12, 2024, at
9:00 P.M. Eastern Time or
Thursday, June 13, 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 June 19, 2024 by dialing the following
numbers:
International:
|
+1-412-317-0088
|
United States Toll
Free:
|
+1-877-344-7529
|
Access Code:
|
8381005
|
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 analytical tools. 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 RMB7.2203 to US$1.00, the noon buying rate in effect on
March 29, 2024, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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$"), except for
number of shares and per share data)
|
|
|
|
|
As of December
31,
2023
|
|
As of March
31,
2024
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
1,020,604,191
|
|
1,155,986,847
|
160,102,329
|
Restricted cash -
current - bank deposits held for short-term investments
|
|
|
|
1,670,006,785
|
|
-
|
-
|
Restricted cash -
current - others
|
|
|
|
14,334,937
|
|
13,744,123
|
1,903,539
|
Short-term
investments
|
|
|
|
635,070,394
|
|
2,322,320,101
|
321,637,619
|
Accounts receivable,
net
|
|
|
|
64,791,709
|
|
106,148,788
|
14,701,437
|
Finance lease
receivables - current, net
|
|
|
|
200,459,435
|
|
133,027,146
|
18,424,047
|
Financing receivables,
net
|
|
|
|
29,522,035
|
|
20,366,970
|
2,820,793
|
Short-term contract
asset
|
|
|
|
170,623,200
|
|
80,595,646
|
11,162,368
|
Prepayments and other
current assets
|
|
|
|
78,606,808
|
|
79,424,682
|
11,000,191
|
Total current
assets
|
|
|
|
3,884,019,494
|
|
3,911,614,303
|
541,752,323
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Restricted cash -
non-current
|
|
|
|
583,380,417
|
|
538,159,571
|
74,534,240
|
Property and equipment,
net
|
|
|
|
8,239,037
|
|
7,635,993
|
1,057,573
|
Intangible
assets
|
|
|
|
48,373,192
|
|
48,107,157
|
6,662,764
|
Long-term contract
asset
|
|
|
|
36,310,769
|
|
564,583
|
78,194
|
Finance lease
receivables - non-current, net
|
|
|
|
36,426,617
|
|
22,252,619
|
3,081,952
|
Operating lease
right-of-use assets
|
|
|
|
47,154,944
|
|
47,531,988
|
6,583,104
|
Other non-current
assets
|
|
|
|
4,705,544
|
|
4,491,801
|
622,107
|
Total non-current
assets
|
|
|
|
764,590,520
|
|
668,743,712
|
92,619,934
|
TOTAL
ASSETS
|
|
|
|
4,648,610,014
|
|
4,580,358,015
|
634,372,257
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
debts
|
|
|
|
39,071,500
|
|
26,650,000
|
3,690,982
|
Long-term
debts—current
|
|
|
|
926,237
|
|
888,415
|
123,044
|
Accrued expenses and
other current liabilities
|
|
|
|
206,877,626
|
|
173,238,481
|
23,993,251
|
Deferred guarantee
income
|
|
|
|
86,218,888
|
|
55,959,307
|
7,750,275
|
Contingent risk
assurance liabilities
|
|
|
|
125,140,991
|
|
81,427,530
|
11,277,583
|
Income tax
payable
|
|
|
|
311,904,279
|
|
323,337,170
|
44,781,681
|
Short-term lease
liabilities
|
|
|
|
7,603,380
|
|
8,654,701
|
1,198,662
|
Total current
liabilities
|
|
|
|
777,742,901
|
|
670,155,604
|
92,815,478
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term
debts
|
|
|
|
712,023
|
|
665,401
|
92,157
|
Deferred tax
liability
|
|
|
|
10,724,133
|
|
10,724,133
|
1,485,275
|
Long-term operating
lease liabilities
|
|
|
|
42,228,435
|
|
42,027,702
|
5,820,769
|
Other non-current
liabilities
|
|
|
|
226,035
|
|
143,886
|
19,928
|
Total non-current
liabilities
|
|
|
|
53,890,626
|
|
53,561,122
|
7,418,129
|
Total
liabilities
|
|
|
|
831,633,527
|
|
723,716,726
|
100,233,607
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
204,260
|
|
204,260
|
28,290
|
Treasury
shares
|
|
|
|
(773,130,748)
|
|
(844,938,545)
|
(117,022,637)
|
Additional paid-in
capital
|
|
|
|
4,813,679,585
|
|
4,814,230,470
|
666,763,219
|
Accumulated other
comprehensive income
|
|
|
|
111,849,166
|
|
132,744,094
|
18,384,845
|
Retained
earnings
|
|
|
|
(335,625,776)
|
|
(245,598,990)
|
(34,015,067)
|
Total Cango
Inc.'s equity
|
|
|
|
3,816,976,487
|
|
3,856,641,289
|
534,138,650
|
Total shareholders'
equity
|
|
|
|
3,816,976,487
|
|
3,856,641,289
|
534,138,650
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
4,648,610,014
|
|
4,580,358,015
|
634,372,257
|
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for
number of shares and per share data)
|
|
|
|
|
Three months
ended March 31
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
542,613,363
|
|
64,422,494
|
8,922,412
|
Loan facilitation
income and other related income
|
|
|
|
2,315,400
|
|
13,821,022
|
1,914,189
|
Guarantee
income
|
|
|
|
64,128,746
|
|
30,259,581
|
4,190,904
|
Leasing
income
|
|
|
|
22,213,681
|
|
4,939,712
|
684,142
|
After-market services
income
|
|
|
|
16,719,476
|
|
11,637,788
|
1,611,815
|
Automobile trading
income
|
|
|
|
429,849,643
|
|
3,445,040
|
477,133
|
Others
|
|
|
|
7,386,417
|
|
319,351
|
44,229
|
Operating cost and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
480,517,980
|
|
29,058,868
|
4,024,607
|
Sales and
marketing
|
|
|
|
12,538,562
|
|
3,548,273
|
491,430
|
General and
administrative
|
|
|
|
39,802,530
|
|
37,923,531
|
5,252,348
|
Research and
development
|
|
|
|
8,102,363
|
|
1,098,105
|
152,086
|
Net gain on contingent
risk assurance liabilities
|
|
|
|
(1,622,556)
|
|
(15,018,246)
|
(2,080,003)
|
Net recovery on
provision for credit losses
|
|
|
|
(48,554,100)
|
|
(66,339,084)
|
(9,187,857)
|
Total operation cost
and expense
|
|
|
|
490,784,779
|
|
(9,728,553)
|
(1,347,389)
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
51,828,584
|
|
74,151,047
|
10,269,801
|
Interest income,
net
|
|
|
|
18,780,880
|
|
16,503,965
|
2,285,773
|
Net gain on equity
securities
|
|
|
|
3,732,355
|
|
10,984,524
|
1,521,339
|
Interest
expense
|
|
|
|
(2,294,085)
|
|
-
|
-
|
Foreign exchange (loss)
gain, net
|
|
|
|
(984,307)
|
|
131,689
|
18,239
|
Other income,
net
|
|
|
|
4,459,897
|
|
832,551
|
115,307
|
Other
expenses
|
|
|
|
(130,885)
|
|
(535,390)
|
(74,151)
|
Net income before
income taxes
|
|
|
|
75,392,439
|
|
102,068,386
|
14,136,308
|
Income tax benefit
(expense)
|
|
|
|
3,372,638
|
|
(12,041,600)
|
(1,667,742)
|
Net
income
|
|
|
|
78,765,077
|
|
90,026,786
|
12,468,566
|
Net income
attributable to Cango Inc.'s shareholders
|
|
|
|
78,765,077
|
|
90,026,786
|
12,468,566
|
Earnings per ADS
attributable to ordinary shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
0.58
|
|
0.85
|
0.12
|
Diluted
|
|
|
|
0.56
|
|
0.80
|
0.11
|
Weighted average ADS used to compute earnings per ADS attributable
to ordinary shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
134,769,131
|
|
105,521,018
|
105,521,018
|
Diluted
|
|
|
|
140,231,084
|
|
112,786,810
|
112,786,810
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
|
(6,020,579)
|
|
20,894,928
|
2,893,914
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
|
|
72,744,498
|
|
110,921,714
|
15,362,480
|
Total comprehensive
income attributable to Cango Inc.'s shareholders
|
|
|
|
72,744,498
|
|
110,921,714
|
15,362,480
|
CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for
number of shares and per share data)
|
|
|
Three months
ended March 31
|
|
|
|
2023
|
|
2024
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
Net
income
|
|
78,765,077
|
|
90,026,786
|
12,468,566
|
|
|
|
|
|
|
|
|
Add: Share-based
compensation expenses
|
|
14,059,098
|
|
5,717,422
|
791,854
|
|
Cost of
revenue
|
|
747,416
|
|
254,391
|
35,233
|
|
Sales and
marketing
|
|
2,793,396
|
|
1,046,659
|
144,961
|
|
General and
administrative
|
|
9,907,268
|
|
4,416,372
|
611,660
|
|
Research and
development
|
|
611,018
|
|
-
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
net income
|
|
92,824,175
|
|
95,744,208
|
13,260,420
|
|
Net income
attributable to Cango Inc.'s shareholders
|
|
92,824,175
|
|
95,744,208
|
13,260,420
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
net income per ADS-basic
|
|
0.69
|
|
0.91
|
0.13
|
|
Non-GAAP adjusted
net income per ADS-diluted
|
|
0.66
|
|
0.85
|
0.12
|
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding—basic
|
|
134,769,131
|
|
105,521,018
|
105,521,018
|
|
Weighted average ADS
outstanding—diluted
|
|
140,231,084
|
|
112,786,810
|
112,786,810
|
|
View original
content:https://www.prnewswire.com/news-releases/cango-inc-reports-first-quarter-2024-unaudited-financial-results-302170561.html
SOURCE Cango Inc.