Shanghai, June 13, 2024 / PRNewswire / - Cango Group Inc. ("Cango" or the "Company") (NYSE: CANG), a leading automotive transaction service platform in China, today announced its unaudited financial results for the first quarter of Fiscal Year 2024.

2024Highlights of financial and operational performance in Q1 2024:

• In the first quarter of 2024, the company's total revenue was RMB 64.42 million ($8.92 million), compared with RMB 543 million in the same period of last year. In Q1 2024, the revenue was RMB 74.15 million ($10.27 million), a YoY growth of 43.1% from RMB 51.83 million in the same period of last year. In Q1 2024, the net income was RMB 90.03 million ($12.47 million), a YoY growth of 14.3% from RMB 78.77 million in the same period of last year.
  
• As of March 31, 2024, the outstanding balance of the company's automobile loans amounted to RMB 7.6 billion ($1.1 billion). The M1+ and M3+ delinquency rates of all automobile loans that have been completed and still in existence are 2.87% and 1.51%, respectively. As of December 31, 2023, the M1+ and M3+ delinquency rates were 2.66% and 1.37%, respectively.
  
• As of March 31, 2024, the total amount of the company's cash and cash equivalents, short-term investments, and restricted short-term investment subscription amounts increased by RMB 153 million ($21.14 million) from December 31, 2023. The improvement in liquidity was mainly due to the reduction in operating capital for automobile transactions and the positive operating cash flow generated by the recovery of receivable financing payments and commissions.

Mr. Jiayuan Lin, Cango's Chief Executive Officer, stated, "In Q1 2024, the Chinese automobile industry faced many challenges. Traditional automakers have entered a deep-water area in their transformation, while emerging automakers are also facing fierce market competition and severe tests of profitability. To cope with these changes in the industry, Cango has actively reduced the procurement scale of its own new car business and optimized inventory management, effectively avoiding the risk of new car price decline. In the first quarter, we integrated the 'Cango UCAR' platform, and through continuously providing high-quality vehicle sources, optimizing dealer service experience and supply chain management, we further enhanced the competitive advantage of the UCAR platform."

"In addition, we have also made some progress in cross-border transactions of second-hand cars. In March of this year, we officially launched a cross-border information exchange platform for second-hand car transactions, which has built a bridge for global multilingual users to understand and recognize the Chinese second-hand car market and filled the gap in domestic cross-border second-hand car transaction information services. In the future, we hope to make this platform the preferred portal for Chinese second-hand car export."

"Looking ahead, we will continue to explore new business forms and expand more growth opportunities. At the same time, we firmly believe that through continuous innovation and refined management, Cango will achieve long-term sustainable development in fierce market competition."

Mr. Yongyi Zhang, Cango's Chief Financial Officer, stated, "In Q1 2024, we achieved positive cash flow for three consecutive quarters and maintained a solid cash reserve by optimizing financial strategies, reducing new car inventories, and improving operational efficiency. We firmly believe that refined cost control and efficient cash management will drive Cango's long-term sustainable development.

Q1 2024 Financial Performance:

Revenue

In Q1 2024, the company's total revenue was RMB 64.42 million ($8.92 million), compared with RMB 543 million in the same period of last year. In Q1 2024, the guarantee income was RMB 30.26 million ($4.19 million), which was separately disclosed in accordance with the ASC 326 accounting standard applicable since January 1, 2023, which stipulates that non-contingent guarantee income should be separately disclosed.

Costs and Expenses

• In Q1 2024, the company's operating costs decreased from RMB 481 million in the same period of last year to RMB 29.06 million ($4.02 million). In Q1 2024, the operating cost accounted for 45.1% of total revenue, compared with 88.6% in the same period of last year.
  
• In Q1 2024, the company's marketing and promotion expenses decreased from RMB 12.54 million in the same period of last year to RMB 3.55 million ($0.49 million).
  
• In Q1 2024, the company's administrative expenses decreased from RMB 398 million in the same period of last year to RMB 379.2 million ($52.5 million).
  
• In Q1 2024, the company's research and development expenses decreased from RMB 8.1 million in the same period of last year to RMB 1.1 million ($0.15 million).
  
• In Q1 2024, the or-risk guarantee liability was released as RMB 15.02 million ($2.08 million). The release was mainly due to the release of debt in the or-risk guarantee liability aspect.
  
• In Q1 2024, the credit reserve was restored to RMB 66.34 million ($9.19 million). The main reason for the restoration was the positive impact of accounts receivable.

Operating Profit

In Q1 2024, the company's operating profit was RMB 74.15 million ($10.27 million), a year-on-year increase of 43.1% compared to RMB 51.83 million in the same period last year.

Net income

In Q1 2024, the company's net income was RMB 90.03 million ($12.47 million). The non-GAAP net income in Q1 2024 was RMB 95.74 million ($13.26 million). The non-GAAP net loss excludes the impact of stock-based incentives. For more information, please refer to the statement on Non-GAAP financial standards in the English original.

Net income per ADSADSIn Q1 2024, the basic and diluted net income per ADS of the company were RMB 0.85 ($0.12) and RMB 0.80 ($0.11) respectively. The non-GAAP basic and diluted net income per ADS were RMB 0.91 ($0.13) and RMB 0.85 ($0.12) respectively. Each ADS represents two Class A ordinary shares.

In the first quarter of 2024, the net income per American depositary share (ADS), both basic and diluted, of the company were RMB 0.85 (.12 USD) and RMB 0.80 (.11 USD), respectively. The non-GAAP net income per ADS, both basic and diluted, were RMB 0.91 (.13 USD) and RMB 0.85 (.12 USD), respectively. Each ADS represents two Class A ordinary shares.

Balance sheet.

As of March 31, 2024, the company held a total of RMB 1.156 billion ($160 million) in cash and cash equivalents. As of December 31, 2023, the company held a total of RMB 1.021 billion in cash and cash equivalents.

As of March 31, 2024, the company held a total of RMB 2.322 billion ($322 million) in short-term investments. As of December 31, 2023, the company held a total of RMB 635 million in short-term investments. The change was mainly due to the conversion of RMB 1.67 billion from a restricted cash account to the company's account after the short-term investment subscription procedure was completed on December 31, 2023.

Performance Expectation

The company expects total revenue to be between RMB 35 million and RMB 45 million in Q2 2024. This guidance only represents the company's current and preliminary expectations of market and operating conditions, and may be subject to changes in the future.

Share buyback plan

As announced on April 23, 2024, the company's share buyback plan had repurchased 360,858 ADS, totaling approximately $5.79 million as of May 31, 2024.

Financial Results Conference Call Information

Cango's Q1 2024 financial performance conference call will be held at 9:00 PM Eastern Time on Wednesday, June 12, 2024 (or 9:00 AM Beijing Time on Thursday, June 13, 2024). The dial-in numbers for the conference call are:

International: +1-412-317-0088

Cango Inc. (NYSE: CANG) was established in 2010, headquartered in Shanghai, and its business covers the whole country. Starting with auto loan facilitation, Cango has built a vast channel network rooted in low-tier cities and counties, and extended its business to the automotive trading and automotive after-market fields, establishing a service platform that covers the full value chain of auto circulation. Cango has long been committed to providing users with safe, professional, and efficient technology-based auto-related transaction services. In the future, it will adhere to big data and technological innovation as its core driving force, continuously improve the eco-system of automotive supply chain services, and enrich its product matrix centered on users, focusing on car trading, car finance, and after-market services. Joining forces with partners, making car buying simple and enjoyable, and building the preferred car buying service platform for consumers. For more information, please visit the website.

Article Translation Disclaimer

The original version of this announcement is the only version authorized by the official and has legal effect. If there is any inconsistency or difference in meaning between the Chinese translation version and the original version, the original version shall prevail. Cango Inc. and relevant institutions and individuals make no guarantee for the accuracy of the translated version and shall not be liable for any direct or indirect losses caused by inaccurate translation.

For investor inquiries, please contact: Yihe Liu Cango Inc. Tel: +86 21 3183 5088 ext.5581 Email:

The original version of this announcement is the only version authorized and has legal effect. If there is any inconsistency or difference in meaning between the Chinese translated version and the original version, the original version shall prevail. Cango Group and related institutions and individuals make no guarantee for the accuracy of the translated version and shall not be liable for any direct or indirect losses caused by inaccurate translations.

Yihe Liu Cango Inc. Tel: +86 21 3183 5088 ext.5581 Email:

Cango Inc.
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email:ir@cangoonline.com

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