Cango (CANG.US) released its financial report for the first quarter of 2024 on June 14. Total revenue for the first quarter of 2024 was RMB 64.4 million, with operating profit of RMB 74.2 million, a year-on-year increase of 43.1%. The net profit was RMB 90 million, with a year-on-year increase of 14.3%. The adjusted net profit under non-GAAP was RMB 95.7 million. The adjusted basic and diluted net income per ADS under non-GAAP were RMB 0.91 and RMB 0.85, respectively. As of March 31, 2024, the company had cash and cash equivalents of RMB 1.2 billion.

In terms of operation, as of March 31, 2024, the total amount of financing transactions facilitated by the company was RMB 7.6 billion. The M1+ and M3+ delinquency rates for all facilitated and outstanding financing transactions were 2.87% and 1.51% respectively. As of March 31, 2024, cash and cash equivalents, short-term investments, and restricted cash-current-short-term investment deposits increased by RMB 152.6 million compared to December 31, 2023.

Cango CEO Lin Jiayuan commented: 'In the first quarter of 2024, the Chinese auto industry continued to face significant challenges. Traditional auto manufacturers are under pressure to transform and adapt to the new energy era, while emerging new energy auto manufacturers are facing fierce market competition and serious profitability challenges. In response to these trends, Cango has proactively reduced the scale of its self-operated new car business, streamlined the procurement process, and optimized inventory management to reduce the risk of falling new car prices. 'In the first quarter, we completed the integration of 'CangoU-car' and further strengthened the platform's competitive advantage by ensuring a continuous supply of high-quality vehicles, optimizing dealer service experience and supply chain management. 'We also made significant progress in cross-border used car transactions in the first quarter of this year. In March, we officially launched a cross-border information platform specifically designed for used car transactions. This platform provides insight into the Chinese used car market for global users in multiple languages and fills the gap in domestic cross-border used car transaction information services. 'Our ultimate goal is to build this platform into the preferred portal for Chinese used cars to enter the international market.'

'Looking ahead, we will continue to explore new business models and expand growth opportunities. We firmly believe that through continuous innovation and careful management, Cango will promote long-term and sustainable development,' Lin Jiayuan concluded.

Cango CFO Mr. Yongyi Zhang said: 'Our strategic efforts to reduce new car inventory and improve operational efficiency have begun to bear fruit and achieved profitability in the first quarter of 2024. We also achieved positive operating cash flow for the third consecutive quarter, enabling us to maintain a strong cash position. We are confident that through our meticulous cost control and effective liquidity management, we will drive Cango's long-term growth and progress.'

Looking ahead to the second quarter, the company expects total revenue to be between RMB 35 million and RMB 45 million.