SHANGHAI, June 13, 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
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
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
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. |
|||||||
As of December 31, |
As of March 31, |
||||||
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. |
|||||||
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 |
||||
|
|||||||
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. |
||||||
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 |