Cango Inc 6-K, filed Nov 17, 2025
Cango Inc. (CANG)
About this 6-K
Cango Inc filed this 6-K on November 17, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2025
Commission File Number: 001-38590
3131 McKinney Avenue
Dallas, Texas 75204, U.S.A.
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
Form 20-F ☒ | | Form 40-F ☐ |
EXHIBIT INDEX
Exhibit 99.1 | | |
| | |
Exhibit 99.2 | | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| | |
101.INS | | Inline XBRL Instance Document-this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| | |
101.SCH | | Inline XBRL Taxonomy Extension Schema Document |
| | |
101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| | |
101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| | |
101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document |
| | |
101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| | |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CANGO INC. | |
| By: | /s/ Yongyi Zhang |
| Name: | Yongyi Zhang |
| Title: | Chief Financial Officer |
Date: November 17, 2025 | | |
Exhibit 99.1
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Cango Inc.
As of December 31, 2024 and June 30, 2025
and for the six months ended June 30, 2024 and 2025
F-1
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
|
| Notes |
| As of December 31, 2024 |
| As of June 30, 2025 |
ASSETS: | | | |
| |
|
Current assets: |
| | |
|
|
|
Cash and cash equivalents |
| | | |
| |
Short-term investments, net | | | | | | — |
Accounts receivable, net |
| 3 | | |
| |
Prepayments and other current assets, net |
| 4 | | |
| |
Receivable for bitcoin collateral, net | | 5 | | | | |
Current assets of discontinued operations | | | | | | — |
Total current assets | | | | | | |
| | | | | | |
Non-current assets: | | | | | | |
Mining machines, net | | 6 | | | | |
Property and equipment, net | | 7 | | | | — |
Deferred tax assets | | | | — | | |
Operating lease right-of-use assets, net | | | | | | — |
Other non-current assets, net | | 8 | | | | — |
Non-current assets of discontinued operations |
| | | |
| — |
Total non-current assets |
| | | |
| |
TOTAL ASSETS |
| | | |
| |
|
| | | |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
| | | |
| |
Current liabilities: | | | | | | |
Short-term debts |
| 9 | | |
| |
Accrued expenses and other current liabilities |
| 10 | | |
| |
Income tax payable |
| | | |
| |
Short-term lease liabilities | | | | | | — |
Current liabilities of discontinued operations |
| | | |
| — |
Total current liabilities |
| | | |
| |
|
| | | |
| |
Non-current liabilities: |
| | | |
| |
Deferred tax liability |
| | | |
| |
Non-current liabilities of discontinued operations |
| | | |
| — |
Total non-current liabilities |
| | | |
| |
Total liabilities |
| | | |
| |
| | | | | | |
Shareholders’ equity | | | | | | |
Ordinary shares | | | | | | |
Treasury shares | | | | ( | | ( |
Additional paid-in capital | | | | | | |
Accumulated other comprehensive loss | | | | ( | | — |
Accumulated deficit | | | | ( | | ( |
Total Cango Inc.’s equity | | | | | | |
Total shareholders’ equity |
| | | |
| |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| | | |
| |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-2
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
| | | | Six months ended June 30 | ||
|
| Notes |
| 2024 |
| 2025 |
Revenues | | | | — | | |
Bitcoin mining income | | | | — | | |
International automobile trading income | | | | — | | |
Operating costs and expenses: |
| | | |
| |
Cost of revenue (exclusive of depreciation shown below) |
| 11 | | — |
| |
Cost of revenue (depreciation) | | 11 | | — | | |
General and administrative |
| | | |
| |
Provision for credit losses |
| | | — |
| |
Impairment loss from mining machines |
| | | — |
| |
Gain from changes in fair value of receivable for bitcoin collateral |
| | | — |
| ( |
Total operating costs and expenses |
| | | |
| |
Operating loss from continuing operations |
| | | ( |
| ( |
Interest income |
| | | |
| |
Interest expense |
| | | — |
| ( |
Foreign exchange loss, net |
| | | — |
| ( |
Other income |
| | | |
| |
Other expenses | | | | — | | ( |
Net income (loss) before income taxes from continuing operations | | | | | | ( |
Income tax benefit |
| 12 | | — |
| |
Net income (loss) from continuing operations | | | | | | ( |
Discontinued operations: |
| | | |
| |
Income (loss) from discontinued operations |
| | | |
| ( |
Income tax expenses | | | | ( | | ( |
Net income (loss) from discontinued operations |
| | | |
| ( |
Net income (loss) attributable to Cango Inc.’s shareholders |
| | | |
| ( |
Earnings (losses) per Class A and Class B ordinary share: | | | | | | |
Basic | | | | | | |
Continuing operations | | | | | | ( |
Discontinued operations | | | | | | ( |
Diluted | | | | | | |
Continuing operations | | | | | | ( |
Discontinued operations | | | | | | ( |
Weighted average shares used to compute earnings (losses) per Class A and Class B share: | | | | | | |
Basic | | | | | | |
Diluted | | | | | | |
Other comprehensive income (loss), net of tax |
| | | |
| |
Release accumulated other comprehensive loss | | | | — | | |
Foreign currency translation adjustment |
| | | ( |
| |
Total comprehensive income (loss) |
| | | |
| ( |
Total comprehensive income (loss) attributable to Cango Inc.’s shareholders |
| | | |
| ( |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-3
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
| | Attributable to Cango Inc. | | | ||||||||||||
| | Class A and Class B | | | | | | Accumulated | | | | | | | ||
| | Ordinary Shares | | | | Additional | | other | | | | Total | | Total | ||
| | Number of | | | | Treasury | | paid-in | | comprehensive | | Accumulated | | Cango Inc.’s | | shareholders’ |
|
| Shares |
| Amount |
| shares |
| capital |
| loss |
| deficit |
| equity |
| equity |
Balance at December 31, 2023 | | | | | | ( | | | | ( | | ( | | | | |
Repurchase of ordinary shares |
| ( |
| — |
| ( |
| — |
| — |
| — |
| ( |
| ( |
Retirement of ordinary shares |
| — |
| ( |
| |
| ( |
| — |
| — |
| |
| — |
Exercise of share options |
| |
| — |
| |
| ( |
| — |
| — |
| |
| |
Share-based compensation (note 15) |
| — |
| — |
| — |
| |
| — |
| — |
| |
| |
Net income |
| — |
| — |
| — |
| — |
| — |
| |
| |
| |
Other comprehensive loss | | | | — | | — | | | | ( | | — | | ( | | ( |
Balance at June 30, 2024 | | | | | | ( | | | | ( | | ( | | | | |
| | | | | | | | | | | | | | | | |
Balance at December 31, 2024 | | | | | | ( | | | | ( | | ( | | | | |
Additional issuance of ordinary shares | | | | | | — | | | | — | | — | | | | |
Exercise of share options |
| |
| — |
| |
| ( |
| — |
| — |
| |
| |
Share-based compensation (note 15) |
| — |
| — |
| — |
| |
| — |
| — |
| |
| |
Net loss |
| — |
| — |
| — |
| — |
| — |
| ( |
| ( |
| ( |
Release accumulated other comprehensive loss | | — | | — | | — | | — | | | | — | | | | |
Other comprehensive income |
| — |
| — |
| — |
| — |
| |
| — |
| |
| |
Balance at June 30, 2025 |
| |
| |
| ( |
| |
| — |
| ( |
| |
| |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-4
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
| | For the six month ended June 30, | ||
|
| 2024 |
| 2025 |
Cash flows from operating activities: | |
| |
|
Net income (loss) from continuing operations |
| |
| ( |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | |
Bitcoin mining income |
| — |
| ( |
Changes in fair value of bitcoin collaterals |
| — |
| ( |
Depreciation |
| |
| |
Amortization of lease right-of-use assets |
| |
| |
Share-based compensation expense | | | | |
Impairment loss from mining machines |
| — |
| |
Provision for credit losses | | — | | |
Loss on disposal of property and equipment | | — | | |
Unrealized foreign exchange loss, net | | — | | |
Deferred income tax benefit | | — | | ( |
Changes in operating assets and liabilities: |
| |
| |
Other current and non-current assets | | ( | | ( |
Short-term and long-term operating lease liabilities |
| ( |
| |
Other current and non-current liabilities |
| ( |
| |
Net cash provided by (used in) continuing operating activities |
| |
| ( |
Net cash provided by (used in) discontinued operating activities |
| |
| ( |
Net cash provided by (used in) operating activities |
| |
| ( |
Cash flows from investing activities: |
| |
| |
Proceeds from redemption of other short-term investments, net |
| |
| |
Purchase of other short-term investments |
| ( |
| — |
Purchases of mining machines |
| — |
| ( |
Proceeds from sale of discontinued operations, net of cash disposed |
| — |
| |
Net cash provided by continuing investing activities | | | | |
Net cash used in discontinued investing activities | | ( | | ( |
Net cash (used in) provided by investing activities |
| ( |
| |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-5
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
| | For the six month ended June 30, | ||
|
| 2024 |
| 2025 |
Cash flows from financing activities: | |
| |
|
Payment to repurchase treasury shares |
| ( |
| — |
Proceeds from exercise of share options |
| |
| |
Repayment of borrowings | | — | | ( |
Net cash used in continuing financing activities |
| ( |
| ( |
Net cash used in discontinued financing activities |
| ( |
| — |
Net cash used in financing activities |
| ( |
| ( |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
| ( |
| |
Net decrease in cash, cash equivalents and restricted cash | | ( | | ( |
Cash, cash equivalents and restricted cash at beginning of the period |
| |
| |
Cash, cash equivalents and restricted cash at the end of the period | | | | |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of period | | | | — |
Cash, cash equivalents and restricted cash of continuing operations at the end of the period | | | | |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets | | | | |
Cash and cash equivalents |
| |
| |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows |
| |
| |
Supplemental disclosures of cash flow information: | | | | |
Cash paid for income taxes |
| |
| — |
Cash paid for interest |
| — |
| |
Non-cash investing and financing transactions |
| |
| |
Shares issued in connection with purchase of mining machines |
| — |
| |
Short-term debt received in the form of cryptocurrencies |
| — |
| |
Operating lease right-of-use asset released in exchange for operating lease liability |
| |
| |
Cancellation of treasury shares | | | | — |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-6
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
1.ORGANIZATION
Cango Inc. (the “Company”, and where appropriate, the term “Company” also refers to its subsidiaries) is an exempt company incorporated in the Cayman Islands with limited liability under the laws of the Cayman Islands on October 9, 2017.
The Company has previously conducted loan facilitations, aftermarket services, financing leasing services, automotible trading and related services in the PRC (the “PRC Business”) through a series of VIE contractual agreements. On May 27, 2025, the Company has finalized the divestment of all its PRC Business. Since then, the Company no longer retained any financial interest over the PRC business related VIEs and accordingly deconsolidated the PRC business related VIE’s financial statements from the Company’s consolidated financial statements. The disposal of PRC business represented a strategic shift and has a major effect on the Company’s result of operations. Accordingly, assets, liabilities, and results of operations related to PRC business have been reported as discontinued operations. The disposal groups related to the operations mentioned above included the following entities:
Subsidiaries |
Stonebridge Investment First Limited (British Virgin Islands) |
Stonebridge Investments Holdings Limited (British Virgin Islands) |
Crystal Peak Investments Limited (Mauritius) |
Cango Group Limited (Hong Kong) |
Express Group Development Limited (Hong Kong) |
Can Gu Long (Shanghai) Information Technology Consultation Service Co., Ltd. (PRC) |
VIEs |
Shanghai Cango Investment and Management Consultation Service Co., Ltd. (“Shanghai Cango”) and its subsidiaries |
Shanghai Yunguhaoche Electronic Technology Co., Ltd. (“Shanghai Yungu”) and its subsidiary |
As of June 30, 2025, the Company no longer retains any interests in the VIEs following the disposal of PRC business. The bitcoin mining services and the international automobile trading transaction are conducted through the Company’s subsidiaries as follows.
| | | | | | Percentage of | | |
| | | | Place of | | legal ownership | |
|
Entity |
| Date of incorporation |
| incorporation |
| by the Company |
| Principal activities |
Subsidiaries |
|
|
|
|
|
|
|
|
GreenVolt Innovations HK Limited | |
|
| | % | |||
AutoCango Limited | |
|
| | % | |||
NEW ENERGY INNOVATION PTE LTD | |
|
| | % | |||
GreenVolt Innovations Limited | |
|
| | % | |||
GreenVolt Innovations LLC | |
|
| | % | |||
Green Volt Innovations AA1 Limited | |
|
| | % | |||
Green Volt Innovations AA1 LLC | |
|
| | % | |||
Green Volt Innovations AA2 Limited | |
|
| | % | |||
Green Volt Innovations AA2 LLC | |
|
| | % | |||
GreenVolt Innovations CA Limited | |
|
| | % | |||
GREENVOLT INNOVATIONS CANADA LIMITED | |
|
| | % | |||
GreenVolt Innovations ET Limited | |
|
| | % | |||
GreenVolt Technology LLC | |
|
| | % | |||
EcoHash LLC | |
|
| | % | |||
GreenVolt Innovations RP Limited | |
|
| | % | |||
Green Volt Innovations OM Limited | |
|
| | % |
F-7
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s most recent consolidated annual financial statements filed with the SEC on Form 20-F.
The accompanying unaudited interim condensed consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for the consolidated financial statements. Certain information and note disclosures normally included in the Group’s annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with such rules and regulations. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2025 and results of operation and cash flows for the six months ended June 30, 2025 and 2024. Results for the six months ended June 30, 2025 are not necessarily indicative of the results expected for the full fiscal year or for any future period.
Principles of consolidation
The unaudited interim condensed consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries. The results of the subsidiaries are consolidated from the date on which the Company obtains control and continue to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All significant intercompany balances and transactions among the Company and its subsidiaries have been eliminated on consolidation.
Use of estimates
The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates reflected in the Company’s unaudited interim condensed consolidated financial statements include, but are not limited to allowance for financing receivables, allowance for finance lease receivables, fair value of guarantee income, expected credit loss on contingent risk assurance liabilities, impairment of long-lived assets, expected credit loss on receivable for bitcoin collateral and valuation allowance for deferred tax assets. Management bases these estimates on its historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.
Revenue recognition
The Company’s revenues from continuing operations are derived principally from 1) bitcoin mining income, 2) international automobile trading income, and the all other revenues are included in the discontinued operations.
Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services, net of value-added tax (“VAT”), as applicable. The Company determines revenue recognition through the following steps:
| ● | Identify the contract(s) with a customer; |
| ● | Identify the performance obligations in the contract; |
F-8
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
| ● | Determine the transaction price; |
| ● | Allocate the transaction price to the performance obligations in the contract; and |
| ● | Recognize revenue when (or as) the entity satisfies a performance obligation. |
Bitcoin mining income
The Company enters into a contract with a mining pool operator to provide hash calculation services to the mining pool operator using the Company’s own mining machines. The Company considers the mining pool operator the customer under this type of arrangement and can decide when to start providing services. The Company’s enforceable right to consideration begins when, and continues as long as, the Company provides hash calculation services to the mining pool operator. Each party to the contract has the unilateral right to terminate the contract at any time without any compensation to the other party for such a termination. As such, the duration of a contract is less than a day and the contract continuously renews throughout the day. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial contract and the terms, conditions, and compensation amount for the renewal options are at the then market rates.
In exchange for providing hash calculation service to the mining pool operators, the Company is entitled to non-cash compensation, cryptocurrency, from the mining pool operator, which is a variable consideration based on the mining pool operator’s distribution mechanism, which is Full-Pay-Per-Share (“FPPS”). Under the FPPS distribution mechanism, the mining pool pays block rewards and transaction fees, less mining pool fees. The Company is entitled to non-cash consideration even if a block is not successfully validated by the mining pool operator. For the applicable period presented, the Company participated in Bitcoin mining to generate its mining revenues under the FPPS distribution mechanism.
FPPS Mining Pool
The Company participates in the mining pool that uses the FPPS distribution mechanism. The Company is entitled to compensation once it begins to perform hash calculations for the mining pool operator in accordance with the operator’s specifications over a 24-hour period beginning mid-night UTC and ending at 23:59:59 UTC on a daily basis. The non-cash consideration that the Company is entitled to for providing hash calculations to the mining pool operator under the FPPS payment mechanism is made up of block rewards and transaction fees less pool operator fees determined as follows:
| ● | The non-cash consideration referred as the block reward is based on the total blocks expected to be generated on the Bitcoin Network for the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: the daily hash calculations that the Company provides to the pool operator as a percent of the Bitcoin Network’s implied hash calculations as determined by the network difficulty, multiplied by the total Bitcoin Network block rewards expected to be generated for the same daily period. |
| ● | The non-cash consideration referred as the transaction fees is based on the share of total actual fees paid by the transaction requestor to each block placed in the Bitcoin Blockchain over the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: total actual transaction fees generated on the Bitcoin Network during the daily 24-hour period as a percent of the total block rewards the Bitcoin Network actually generated during the same 24-hour period, multiplied by the block rewards the Company earned for the same 24-hour period. |
| ● | The gross non-cash compensation, consisting of the block reward and transaction fees, earned by the Company is reduced by the mining pool fees charged by the operator for operating the pool based on a rate schedule per the mining pool contract. The mining pool fee is only incurred to the extent the Company performs hash calculations and generates revenue in accordance with the pool operator’s payout formula during the same daily period as discussed above. |
F-9
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
International automobile trading income
When providing car trading services, the Company evaluates if it is a principal or an agent in a transaction to determine whether revenues should be recorded on a gross or net basis. The Company acts as a principal in which the Company purchases vehicles from suppliers which are vehicle manufacturers or their first-tier car dealerships and sells the vehicles to customers and records revenue on a gross basis if it obtains control over the specified goods and services before they are transferred to the customers. The revenue generated from sale of vehicles is recognized at a point in time when the control of the vehicles is transferred from the Company to the customers when the vehicles are delivered and their titles are passed on to the customers.
Cost of revenues
Cost of revenues consist primarily of cost of mining machines’ depreciation, cost of hosting expenses of mining machines, cost of vehicles associated with international automobile trading business, commissions paid to car dealers who refer borrowers to the Company - discontinued operations, employee compensation costs - discontinued operations, leasing interest expense, cost of telematics devices installed in automobiles and third-party outsourcing fees for vehicle repossession services. Cost of revenues are expensed as incurred when the corresponding services have been provided.
Foreign currency translation and transactions
In the third quarter of 2025, the Company changed the reporting currency of its consolidated financial statements from Renminbi (“RMB”) to U.S. dollars, reflecting the profile of its revenue and profit after the divestiture of its China assets in May 2025. All comparative numbers are recast in U.S. dollars (“US$”) as if the financial statement originally had been presented in US$ since the earliest periods. In applying the change in reporting currency, all the Company’s financial statements were translated from their functional curency into US$.
The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters (“ASC 830”). The functional currency of the Company, Cango HK and Express Limited is the US$. The Company’s subsidiaries, VIEs, and subsidiaries of the VIEs with operations in the PRC adopted RMB as their functional currency, which are all included in the discontinued operations.
The financial statements of subsidiaries and VIEs whose functional currency is RMB are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and the average exchange rate for the period for income and expense items. Translation adjustments resulting from this process are recorded in accumulated other comprehensive loss, as a component of shareholders’ equity.
Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the balance sheet date. Transaction gains and losses are recognized in the unaudited interim condensed consolidated statements of comprehensive income (loss) during the period in which they occur.
Cash and cash equivalents
Cash and cash equivalents primarily consist of cash and highly liquid investments with original maturities within three months from the date of purchase and are stated at cost which approximates their fair value. All cash and cash equivalents are unrestricted as to withdrawal and use.
As of June 30, 2025, majority of the Company’s cash and cash equivalents were held by financial institutions located in Hong Kong.
F-10
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Accounts receivable, net
Accounts receivable are recognized and carried at the original contract amount which will be invoiced, net of allowances for accounts receivable. The Company maintains an allowance for accounts receivable in accordance with Accounting Standards Update (“ASU”) No. 2016 - 13, Financial instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 326”) and records the allowance as an offset to accounts receivable, and the expected credit losses charged to the allowance is classified as “Provision (net recovery on provision) for credit losses” in the unaudited interim condensed consolidated statements of comprehensive income (loss). Bad debts are written off after all collection efforts have been exhausted.
Bitcoin and receivable for bitcoin collateral, net
The Company adopts ASC 350-60, Intangibles — Goodwill and Other, (“ASC 350-60”) on January 1, 2024, based on which bitcoin is measured at fair value as of each reporting period.
The receivable for bitcoin collateral represents the bitcoin posted as collateral to the lender who has the rights to, among other activities, lend or re-hypothecate such bitcoin at the sole discretion of the lender and for which the lender has an obligation to return to the Company at maturity of the loan. The receivable is recorded at fair value and changes in fair value are recorded as gain or loss from change in fair value of receivable for bitcoin collateral on the unaudited interim condensed statements of comprehensive income (loss). The receivable for bitcoin collateral is classified as current. The value and activity involving this asset are discussed in detail in Note 5. As all of the Company’s bitcoins are posted to the lender as collateral, the Company does not have any assets associated with bitcoin holdings as of June 30, 2025.
At commencement and throughout the term of the arrangement, the Company considers and accounts for the credit risk associated with the bitcoin receivable collateral in accordance with the principles outlined in ASC 326. The receivable for bitcoin collateral is presented net of any allowance for credit losses.
Allowance for receivable for bitcoin collateral
In estimating the allowance for credit losses, the Company applies the current expected credit loss (“CECL”) model, which requires the measurement of lifetime expected credit losses on the amortized costs of the financial assets.
To estimate the allowance for credit loss of receivable for bitcoin collateral, as the Company has no historical experience with similar assets, the allowance is determined using a combination of industry data, peer analysis, and forward-looking information about economic conditions and the creditworthiness of the counterparty. The Company incorporates relevant qualitative factors, such as the nature of the receivable, the characteristics of the counterparty, and any observable market indicators, to assess the expected collectability of the receivable for bitcoin collateral. The estimation process also includes reasonable and supportable forecasts to account for future economic conditions and any anticipated impact on the receivable.
Treasury shares
The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets.
Mining machines, net
Mining machines are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method with the residual value of
F-11
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property and equipment, net
Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method with the residual value based on the estimated useful life of the class of asset, which range as follows:
Category |
| Estimated Useful Life |
| Estimated Residual Value |
|
Office and electronic equipment | | | % |
Costs associated with the repair and maintenance of property and equipment are expensed as incurred. Depreciation is recorded starting at the time when assets are ready for the intended use.
Impairment of long-lived assets
Long-lived assets are assessed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). The Company measures the carrying amount of long-lived assets against the estimated undiscounted future cash flows associated with it. Impairment exists when the estimated undiscounted future cash flows are less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value.
Employee defined contribution plan
Full time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund, and other welfare benefits are provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was US$
Income taxes
The Company recognizes income taxes under the liability method. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted tax rates in effect for the years in which the differences are expected to reverse. The Company records a valuation allowance against the amount of deferred tax assets that it determines is not more-likely-than-not to be realized. The effect on deferred taxes of a change in tax rates is recognized in earnings in the period that includes the enactment date.
The Company applies the provisions of ASC 740, Income Taxes (“ASC 740”), in accounting for uncertainty in income taxes. ASC 740 clarified the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Company has elected to classify interest and penalties related to an uncertain tax position (if and when required) as part of income tax expense in the consolidated statements of comprehensive (loss) income. As of June 30, 2025, the amounts of unrecognized tax benefits as well as interest and penalties associated with uncertainty in income taxes were insignificant.
Segment information
An operating segment is a component of a public entity that has all of the following characteristics:
a. | It engages in business activities from which it may recognize revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). |
F-12
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
b. | Its operating results are regularly reviewed by the public entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. |
c. | Its discrete financial information is available. |
For the six months ended on June 30, 2025, following the commencement of the bitcoin mining business and the disposal of PRC businesses, the CODM began to evaluate the performance of the overall business based on
As the Company operated as a single segment for periods including and prior to the three months ended on March 31, 2025, reference should be made to the unaudited interim condensed for profit and loss and asset information for those periods. Additionally, segment disclosures for these prior periods provide further details related to the Company’s operations.
CODM evaluates the operating results based on the amount of income before income taxes of each reportable segment. This financial metric is used to perform analytical comparisons between periods and to monitor budget-to-actual variances on a periodic basis in order to assess performance and allocate resources.
The following table summarizes key financial information of income by segment from continuing operations for the six months ended June 30, 2025:
| | For the six months ended June 30, 2025 | ||||
| | Bitcoin | | International Automobile Trading | | |
|
| Mining Business |
| Business |
| Total |
Revenues | | | | | | |
Less: Operating cost and other relevant expenses |
| |
| |
| |
Cost of revenue (exclusive of depreciation shown below) |
| |
| |
| |
Cost of revenue (depreciation) |
| |
| — |
| |
Provision for credit losses |
| |
| — |
| |
Impairment loss from mining machines |
| |
| — |
| |
Loss from change in fair value of receivable for bitcoin collateral |
| ( |
| — |
| ( |
Interest expenses |
| |
| — |
| |
Reportable segment income (loss) before income taxes |
| ( |
| |
| ( |
Reconciliations to income (loss) before income tax |
| |
| |
| |
General and administrative expense – staff cost |
| |
| |
| |
General and administrative expense – others |
| |
| |
| |
Interest income |
| |
| |
| ( |
Foreign exchange gain, net |
| |
| |
| |
Other income and expense, net |
| |
| |
| ( |
Net loss before income taxes from continuing operations |
| |
| |
| ( |
F-13
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The following table summarizes key financial information of asset by segment as of June 30, 2025:
| | As of June 30, 2025 | ||||
| | Bitcoin | | International Automobile Trading | | |
|
| Mining Business |
| Business |
| Total |
Segment assets: | | | | | | |
Current assets | | | | | | |
Accounts receivable, net | | | | — | | |
Prepayments and other current assets, net | | | | | | |
Receivable for bitcoin collateral, net | | | | — | | |
Non-current assets | | | | | | |
Mining machines, net | | | | — | | |
Total segment assets from continuing operations | | | | | | |
| | | | | | |
Reconciliations to total assets | | | | | | |
Cash and cash equivalents | | | | | | |
Deferred tax assets | | | | | | |
Total assets from continuing operations | | | | |
| |
Disaggregated revenue data by geographic area in terms of customers’ locations is as follows:
| | For the six months ended June 30, 2025 | ||||
| | Bitcoin | | International Automobile trading | | |
|
| Mining Business |
| Business |
| Total |
British Virgin Islands | | | | — | | |
Others | | — | | | | |
Total | | | | | | |
There were no significant revenue or expenses from continuing operations for the six months ended June 30, 2024.
Selected assets of mining machines, property and equipment and operating lease right-of-use assets by geographic area are as follows:
| | As of June 30, 2025 | ||
| | Bitcoin | | |
|
| Mining Business |
| Total |
Asia |
| |
| |
North America |
| |
| |
Africa |
| |
| |
Others |
| |
| |
Total |
| |
| |
F-14
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
| As of December 31, 2024 | ||||
| | Bitcoin | | Reconciled | | |
|
| Mining Business |
| items |
| Total |
Asia | | | | | | |
North America | | | | — | | |
Africa | | | | — | | |
Others |
| | | — | | |
Total |
| | | | | |
Discontinued Operations
On May 27, 2025, the Company finalized the divestment of all its business related to loan facilitations, aftermarket services, financing leasing services, domestic automotible trading and related services in the PRC (the “PRC Business”), a strategic transaction valued at approximately US$
The following table represents the summary of assets and liabilities disposed on May 27, 2025, and related loss resulting from the transaction:
|
| May 27, 2025 |
Consideration |
| |
Current assets of discontinued operations |
| |
Non-current assets of discontinued operations |
| |
Total assets of discontinued operations |
| |
Current liabilities of discontinued operations |
| |
Non-current liabilities of discontinued operations |
| |
Total liabilities of discontinued operations |
| |
Loss from disposal of discontinued operations |
| ( |
PRC withholding tax for indirect transfer of PRC assets |
| ( |
Release accumulated other comprehensive loss |
| ( |
Loss from disposal of discontinued operations after tax |
| ( |
Loss from discontinued operations from January 1, 2025 to May 27, 2025 |
| ( |
Net loss from discontinued operations from January 1, 2025 to May 27, 2025 | | ( |
F-15
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Assets and liabilities of discontinued operations were as follows as of December 31, 2024:
|
| As of December 31, 2024 |
ASSETS | | |
Current assets |
|
|
Cash and cash equivalents |
| |
Restricted cash - current – others |
| |
Short-term investments |
| |
Accounts receivable, net |
| |
Finance lease receivables |
| |
Financing receivables |
| |
Short-term contract asset, net |
| |
Prepayments and other current assets, net |
| |
Total current assets of discontinued operations |
| |
Non-current assets |
|
|
Restricted cash - non-current |
| |
Property and equipment, net |
| |
Intangible assets |
| |
Long-term contract asset |
| |
Finance lease receivables |
| |
Operating lease right-of-use assets |
| |
Other non-current assets |
| |
Total non-current assets of discontinued operations |
| |
TOTAL ASSETS OF DISCONTINUED OPERATIONS |
| |
LIABILITIES |
|
|
Current liabilities: |
|
|
Short-term lease liabilities |
| |
Accrued expenses and other current liabilities |
| |
Deferred guarantee income |
| |
Contingent risk assurance liabilities |
| |
Income tax payable |
| |
Total current liabilities of discontinued operations |
| |
Non-current liabilities: |
|
|
Deferred tax liability |
| |
Long-term lease liabilities |
| |
Other non-current liabilities |
| |
Total non-current liabilities of discontinued operations |
| |
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS |
| |
F-16
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Operating results from discontinued operations included in the Company’s unaudited interim condensed consolidated statements of comprehensive income (loss) were as follows for the six months ended June 30, 2025 and 2024:
| | For the six months ended June 30, | ||
|
| 2024 |
| 2025 |
Revenues |
| |
| |
Operating cost and expenses | | | | |
Cost of revenue |
| |
| |
Sales and marketing |
| |
| |
General and administrative |
| |
| |
Research and development |
| |
| |
Net gain on contingent risk assurance liabilities |
| ( |
| ( |
Net recovery on provision for credit losses |
| ( |
| ( |
Total operating cost and expenses |
| ( |
| |
Interest income |
| |
| |
Net gain on equity securities |
| |
| — |
Foreign exchange gain (loss), net |
| |
| ( |
Other income |
| |
| |
Other expenses |
| ( |
| ( |
Income (loss) from discontinued operations before tax |
| |
| ( |
Income tax expenses (benefits) |
| ( |
| |
Income (loss) from discontinued operations after tax |
| |
| ( |
| | | | |
Net cash provided by (used in) discontinued operating activities |
| |
| ( |
Net cash used in discontinued investing activities |
| ( |
| ( |
Net cash used in discontinued financing activities |
| ( |
| — |
Cash flows in respect of the disposal were as follows:
|
| For the six month ended June 30, 2025 |
| | US$ |
Cash and cash equivalent deconsolidated |
| |
Proceeds from the disposal of subsidiaries |
| |
Proceeds from the disposal of subsidiaries, net of cash disposed |
| |
Comprehensive (loss) income
Comprehensive (loss) income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. For each of the periods presented, the Company’s comprehensive (loss) income includes net income, foreign currency translation adjustments and unrealized (losses) gain on available-for-sale securities and is presented in the unaudited interim condensed consolidated statements of comprehensive income (loss).
Fair value measurements
Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.
F-17
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:
Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 Include other inputs that are directly or indirectly observable in the marketplace.
Level 3 Unobservable inputs which are supported by little or no market activity.
Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.
Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, restricted cash, short-term investment, finance lease receivables, financing receivables, receivable for bitcoin collateral, other current assets, short-term and long-term debts, accrued expenses and other liabilities. The net carrying amounts of these financial instruments, except for short-term equity securities, receivable for bitcoin collateral, non-current portion of restricted cash, non-current finance lease receivables and long-term debts, approximate their fair values because of their generally short maturities. The short-term equity security is valued based on broker quotes and the receivable for bitcoin collateral is carried at fair value based on the primary market price of the underlying bitcoins. The net carrying amount of non-current portion of restricted cash, financing receivables, non-current finance lease receivables and long-term debts approximates their fair values due to the fact that the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities.
Share-based compensation
The Company accounts for share-based compensation in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”).
The Company recognizes the compensation costs net of estimated forfeitures using the straight-line method, over the applicable vesting period for each separately vesting portion of the award. In addition, the Company recognizes one-off compensation costs for the award which could be vested immediately upon grant on the grant date. The estimate of forfeitures is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures is recognized through a cumulative catch-up adjustment in the period of change and also impact the amount of share-based compensation expense to be recognized in future periods. The Company, with the assistance of an independent third-party valuation firm, determined the fair value of share-based options granted to employees.
Earnings (losses) per share
The Company computes earnings (losses) per Class A and Class B ordinary shares in accordance with ASC 260, Earnings Per Share (“ASC 260”), using the two-class method. Under the provisions of ASC 260, basic earnings (losses) per share is computed using the weighted average number of ordinary shares outstanding during the period except that it does not include unvested ordinary shares subject to repurchase or cancellation.
F-18
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Diluted earnings (losses) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potentially dilutive securities have been excluded from the computation of diluted net income per share if their inclusion is anti-dilutive. Potential ordinary shares consist of the incremental ordinary shares issuable upon the exercise of stock options and restricted shares subject to forfeiture. The dilutive effect of outstanding stock options and restricted shares is reflected in diluted earnings (losses) per share by application of the treasury stock method. The computation of the diluted earnings (losses) per Class A ordinary share assumes the conversion of Class B ordinary shares to Class A ordinary shares, while diluted earnings (losses) per Class B ordinary share does not assume the conversion of such shares.
The liquidation and dividend rights of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting rights. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B ordinary shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B ordinary shares is assumed in the computation of the diluted earnings (losses) per Class A ordinary share, the undistributed earnings are equal to net income for that computation.
For the purposes of calculating the Company’s basic and diluted earnings (losses) per Class A and Class B ordinary shares, the ordinary shares relating to the options that were exercised are assumed to have been outstanding from the date of exercise of such options.
Significant risks and uncertainties
Concentration of credit risk
Financial assets that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, financing receivables - discontinued, finance lease receivables - discontinued, accounts receivable and receivable for bitcoin collateral.
The Company places its cash and cash equivalents, and restricted cash and short-term investments, with reputable financial institutions which have high-credit ratings. There has been no recent history of default related to these financial institutions.
The Company manages credit risk of receivable for bitcoin collateral through credit assessment of the counterparty lender and daily supervision and reconciliation of the asset status of the designated crypto wallets.
Concentration of source of revenue
For the six months ended June 30, 2025, one bitcoin mining customer contributed approximately
Interest rate risk
The Company is exposed to interest rate risk on its interest-bearing assets and liabilities. As part of its asset and liability risk management, the Company reviews and takes appropriate steps, including using derivative financial instruments to economically manage its interest rate exposures on its interest-bearing assets and liabilities. For the Company’s hashrate financing loan, the interest rate caps at
Business and economic risk
The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations or cash flows; changes in bitcoin value; changes in energy cost of mining machines; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with asset quality and credit assessment.
F-19
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Recent Accounting Pronouncements
New accounting standards which have not yet been adopted
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments are effective for public business entities for annual periods beginning after 15 December 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after 15 December 2025. The Company is evaluating the effects, if any, of the adoption of these guidance on its consolidated financial statements and related disclosure.
On November 4, 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 enhances transparency in financial reporting by requiring public business entities (PBEs) to disclose more detailed information about specific natural expense categories included in their income statement captions. And on January 6, 2025, the FASB issued ASU 2025-01 to clarifies that all public business entities must adopt the guidance in ASU 2024-03 for: Annual reporting periods beginning after December 15, 2026 and Interim reporting periods within annual periods beginning after December 15, 2027. The Company is evaluating the effects, if any, of the adoption of these guidance on its consolidated financial statements and related disclosure.
3.ACCOUNTS RECEIVABLE, NET
Accounts receivable and the related allowance are summarized as follows:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Accounts receivable | | | | |
Less: allowance for accounts receivable | | ( | | ( |
Accounts receivable, net | | | | |
4.PREPAYMENTS AND OTHER CURRENT ASSETS, NET
Prepayments and other current assets consist of the following:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Receivable for disposal discontinued operations | | — | | |
Service deposit made to mining machine hosting service provider | | — | | |
Prepaid mining machine hosting expenses | | | | |
Prepayments for vehicles | | — | | |
Interest receivables | | | | — |
Others | | | | |
Prepayments and other current assets | | | | |
Less: allowance for prepayments and other current assets | | — | | ( |
Prepayments and other current assets, net | | | | |
F-20
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
5.RECEIVABLE FOR BITCOIN COLLATERAL, NET
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Receivables for bitcoin collateral |
| |
| |
Less: allowance for receivables for bitcoin collateral |
| ( |
| ( |
Total receivable for bitcoin collateral, net |
| |
| |
6.MINING MACHINES, NET
Mining machines consist of the following:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Mining machines |
| |
| |
Less: accumulated depreciation |
| ( |
| ( |
Less: provision for impairment | | — | | ( |
Mining machines, net |
| |
| |
Depreciation expense, for the six month ended June 30, 2024 and 2025 were
The Company entered into agreements with multiple sellers to purchase mining machines that produces an aggregate hash rate of of 18 Exahash by issuance ordinary shares in November 2024, and the transaction was closed on June 27, 2025, when the acquisition was initially recorded at the fair value of the equity consideration, calculated using the contracted share number of
7.PROPERTY AND EQUIPMENT, NET
Property and equipment consist of the following:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Office and electronic equipment |
| |
| — |
Less accumulated depreciation |
| ( |
| — |
Property and equipment, net |
| |
| — |
8.OTHER NON-CURRENT ASSETS, NET
Other non-current assets are summarized as follows:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Service deposit made to mining machine hosting service provider | | | | — |
Total other non-current assets |
| |
| — |
Less: allowance for other non-current assets |
| ( |
| — |
Other non-current assets, net |
| |
| — |
F-21
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
9.SHORT - TERM DEBTS
In connection with the disposal of the PRC business, the Company settled in full the outstanding amount of US$
Short-term debts consist of the following:
Name |
| Fixed/floating annual rate (%) |
| Term |
| As of December 31, 2024 |
| As of June 30, 2025 |
Hashrate financing loan (i) |
| Floating, cap at | | Not specified |
| |
| |
(i) | On November 11, 2024, the Company signed a Master Loan Agreement with a lender in which the lender agreed to grant a credit line to the Company to lend the Company fiat money or cryptocurrency for the purpose of paying off the Company’s mining machines hosting expenses. The loans are denoted in U.S. dollars and typically paid directly to the service provider. The amount the Company is able to draw from the credit line is determined by the monetary value of the cryptocurrency collateral the Company posted at the lender-designated wallets. Based on the agreement, there is no specific limit in the amount the Company is able to borrow within the first twelve months since the inception of the agreement. Subsequently, the amount the Company could draw from the credit line is limited at 60% of the market value of the collateralized cryptocurrency. There is no expiration date indicated in such agreement. In addition, the amount drawn typically does not have maturity as long as sufficient collateralization has been maintained. As of December 31, 2024 and 30 June 2025, all of the Company’s bitcoins were posted as collateral. |
The weighted average interest rate for the outstanding debts was both at
10.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following:
|
| As of December 31, 2024 |
| As of June 30, 2025 |
Payment due for mining machine purchase | | | | |
Payment due for hosting expenses | | | | |
Customer advances | | |
| |
Other tax payables | | — |
| |
Interest payable | | | | |
Payable to employees | | | | — |
Accrued professional service fees | | | | — |
Others | | |
| |
| | |
| |
11.COST OF REVENUE
Cost of revenue consists of the following:
|
| For the six months ended June 30, | ||
| | 2024 |
| 2025 |
Cost of mining services - energy and hosting costs | | — | | |
Cost of mining services - depreciation | | — | | |
Others |
| — |
| |
|
| — |
| |
F-22
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
12.INCOME TAXES
Cayman Islands
Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payment of dividends by the Company to its shareholders,
Hong Kong
Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong profits tax rate at
USA
Under the current laws, profits tax in USA is generally assessed at the rate
British Virgin Islands
Under the current laws of the British Virgin Islands, subsidiaries incorporated in British Virgin Islands are not subject to tax on income or capital gains.
China – discontinued operations
The Enterprise Income Tax Law (the “EIT Law”) of the PRC includes a provision specifying that legal entities organized outside PRC will be considered residents for Chinese income tax purposes if their place of effective management or control is within PRC. If legal entities organized outside PRC were considered residents for Chinese income tax purpose, they would become subject to the EIT Law on their worldwide income. This would cause any income from legal entities organized outside PRC earned to be subject to PRC’s
The Company’s net income (loss) before income taxes consists of:
| | For the six months ended June 30, | ||
|
| 2024 |
| 2025 |
Cayman Islands | | | | ( |
Hong Kong | | ( | | |
USA | | — | | ( |
British Virgin Islands | | — | | |
Net income (loss) before income taxes | | | | ( |
F-23
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
12.INCOME TAXES – CONTINUED
The current and deferred component of income tax expenses are as follows:
| | For the six months ended June 30, | ||
|
| 2024 |
| 2025 |
Current income tax expense | | — | | |
Deferred income tax benefit | | — | | ( |
Total income tax benefit | | — | | ( |
13.NET INCOME (LOSSES) PER SHARE (“EPS”)
Basic losses per share is computed using the weighted average number of the ordinary shares outstanding during the period. Diluted losses per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. Basic and diluted EPS are the same for each class of ordinary share because they are entitled to the same liquidation and dividend rights.
The following table sets forth the computation of basic and diluted net income per share for the six months ended June 30, 2024 and 2025:
| | For the six months ended June 30, | ||||||
|
| 2024 | | 2025 | ||||
| | Class A |
| Class B |
| Class A |
| Class B |
Basic EPS: | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares |
Numerator: | |
| |
| |
| |
|
Net income (loss) from continuing operations | | | | | | ( | | ( |
Denominator: | | | | | | | | |
Number of shares used for Basic EPS computation (millions of shares) | | | | | | | | |
Basic EPS | | | | | | ( | | ( |
| | For the six months ended June 30, | ||||||
|
| 2024 |
| 2025 | ||||
| | Class A |
| Class B | | Class A |
| Class B |
Basic EPS: | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares |
Numerator: | |
| |
| |
| |
|
Net income (loss) from continuing operations | | | | | | ( | | ( |
Reallocation of net income as a result of conversion of Class B to Class A shares | | | | — | | ( | | — |
Net income (loss) from continuing operations for diluted EPS | | | | | | ( | | ( |
Denominator: (millions of shares) | | | | | | | | |
Number of shares used for basic EPS computation | | | | | | | | |
Weighted average effect of dilutive securities: | | | | | | | | |
Conversion of Class B to Class A ordinary shares | | | | — | | | | — |
“Adjustments for dilutive share options (millions of shares)” | | | | — | | — | | — |
Number of shares used for diluted EPS computation | | | | | | | | |
Diluted EPS | | | | | | ( | | ( |
F-24
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
13.NET INCOME (LOSSES) PER SHARE (“EPS”) – CONTINUED
| | For the six months ended June 30, | ||||||
|
| 2024 | | 2025 | ||||
| | Class A |
| Class B |
| Class A |
| Class B |
Basic EPS: | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares |
Numerator: | |
| |
| |
| |
|
Net income (loss) from discontinued operations | | | | | | ( | | ( |
Denominator: | |
| |
| |
| |
|
Number of shares used for Basic EPS computation (millions of shares) | | | | | | | | |
Basic EPS | | | | | | ( | | ( |
| | For the six months ended June 30, | ||||||
|
| 2024 | | 2025 | ||||
| | Class A |
| Class B |
| Class A |
| Class B |
| | Ordinary Shares | | Ordinary Shares | | Ordinary Shares | | Ordinary Shares |
Numerator: | |
| |
| |
| |
|
Net income (loss) from discontinued operations | | | | | | ( | | ( |
Reallocation of net income as a result of conversion of Class B to Class A shares | | | | | | ( | | |
Net income (loss) from discontinued operations for diluted EPS | | | | | | ( | | ( |
Denominator: (millions of shares) | | | | | | | | |
Number of shares used for basic EPS computation | | | | | | | | |
Weighted average effect of dilutive securities: | | | | | | | | |
Conversion of Class B to Class A ordinary shares | | | | | | | | |
“Adjustments for dilutive share options (millions of shares)” | | | | | | | | |
Number of shares used for diluted EPS computation | | | | | | | | |
Diluted EPS | | | | | | ( | | ( |
14.FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis
In accordance with ASC 820, the Company measures or discloses held-to-maturity time deposit and receivable for bitcoin collateral with readily determinable fair value as of December 31, 2024 and as off June 30, 2025 on a recurring basis. The fair value of time deposits is determined based on the prevailing interest rates in the market.
The Company did not transfer any assets in or out of level 3 during the six months ended June 30, 2024 and 2025.
The following table summarizes the Company’s financial assets and financial liabilities measured and recorded at fair value on recurring basis as of December 31, 2024:
| | As of December 31, 2024 | ||||||
| | | | Observable | | Non-observable | | |
| | Active market | | input | | input | | |
|
| (Level 1) |
| (Level 2) |
| (Level 3) |
| Total |
Asset: | |
| |
| |
| |
|
Short-term investment |
| — |
| |
| — |
| |
Receivable for bitcoin collateral | | — | | | | — | | |
F-25
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
14.FAIR VALUE MEASUREMENTS – CONTINUED
The following table summarizes the Company’s financial assets and financial liabilities measured or disclosed at fair value on recurring basis as of June 30, 2025:
| | As of June 30, 2025 | ||||||
| | | | Observable | | Non-observable | | |
| | Active market | | input | | input | | |
|
| (Level 1) |
| (Level 2) |
| (Level 3) |
| Total |
Assets: | |
| |
| |
| |
|
Receivable for bitcoin collateral |
| — |
| |
| — |
| |
15.SHARE-BASED COMPENSATION
In January 2025, the Company granted
The estimated fair value of the Company’s ordinary shares was based on the Company’s share price. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The dividend yield is estimated based on the Company’s expected dividend policy over the expected term of the options. The expected exercise multiple is estimated by management based on changes in intrinsic value of the option and likelihood of early exercises by employees, which the Company believes is representative of the future.
The Company uses the binomial tree option pricing model to estimate the fair value of share options with the assistance of an independent third-party valuation firm. The assumptions used to value the share options granted to employees were as follows:
|
| As of | | As of |
| | January 2, 2025, | | April 15, 2025, |
| | (date of | | (date of |
|
| inception) |
| inception) |
| | Batch 7 | | Batch 8 |
Risk-free interest rate (%) | | | ||
Volatility (%) | | | ||
Expected exercise multiple | | | ||
Dividend yield |
| | ||
Expected life (in years) |
| | ||
Exercise price (US$) |
| | ||
Fair value of ordinary shares (US$) |
| |
The Company recognized compensation cost for the share options on a graded vesting basis. The total share-based compensation expenses recognized by the Company for the share option granted were US$
F-26
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
15.SHARE-BASED COMPENSATION-CONTINUED
A summary of option activity under the ESOP is as follows:
| | | | |
| Weighted average |
| Aggregate |
| | Number of |
| Weighted average | | Grant date | | Intrinsic |
|
| options |
| exercise price |
| fair value |
| Value |
Balance, December 31, 2024 | | | | | | | |
|
Granted | | | | | | | |
|
Exercised |
| ( |
| |
| |
| |
Forfeited |
| ( |
| |
| |
|
|
Vested or expected to vest at June 30, 2025 |
| |
| |
| |
| |
Exercisable at June 30, 2025 |
| |
| |
| |
| |
As of 30 June, 2025, there was
For the six months ended June 30, 2024 and 2025, the Company allocated share-based compensation expense as follows:
| | For the six months ended June 30 | ||
|
| 2024 |
| 2025 |
Continuing operations | | | | |
General and administrative | | | | |
| | | | |
Discontinued operations | | | | |
Cost of revenue | | | | ( |
Sales and marketing | | | | |
Research and development |
| |
| — |
|
| |
| |
16.COMMITMENTS AND CONTINGENCIES
Capital commitments
The Company had no capital commitments contracted but not yet reflected in the financial statements as of June 30, 2025.
Legal contingencies
The Company is not currently involved in any legal proceedings which could result in material loss contingencies as of June 30, 2025.
17.ORDINARY SHARES
As of December 31, 2024, there were
On June 27, 2025, the Company closed the transaction to purchase mining machines that produces an aggregate hash rate of of 18 Exahash by issuance
F-27
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
17.ORDINARY SHARES-CONTINUED
As of June 30, 2025, there were
18.TREASURY SHARES
As of June 30, 2025, the Company repurchased an aggregate of
19.SUBSEQUENT EVENTS
The Company appointed a new Board of Directors (the “Board”) and senior management team. Pursuant to resolutions adopted on July 23, 2025, the Board appointed (i) Mr. Xin Jin as Chairman of the Board and Non-Executive Director, (ii) Mr. Peng Yu as Chief Executive Officer and Director, (iii) Mr. Chang-Wei Chiu as Director, (iv) Mr. Yongyi Zhang as Chief Financial Officer, and (v) Mr. Simon Ming Yeung Tang as Chief Investment Officer. To strengthen governance, the Board also appointed (i) Mr. Chi Ming Lee, Independent Director, as a member of the Compensation Committee and Nominating and Corporate Governance Committee, (ii) Mr. Yanjun Lin, Independent Director, as Chairman of the Compensation Committee and member of the Nominating and Corporate Governance Committee, and (iii) Mr. Haitian Lu as Chairman of the Nominating and Corporate Governance Committee and member of the Compensation Committee. Concurrently, the Board accepted the resignations of Mr. Xiaojun Zhang, who stepped down as Director and Chairman of the Board, and Mr. Jiayuan Lin, who resigned as Chief Executive Officer, Interim Chief Financial Officer and Director.
On August 14, 2025, the Company entered into an arrangement to upgrade its mining machines and, as part of this plan, agreed to pay an aggregate price difference of approximately US$
On September 30, 2025, the Company entered into a supplementary agreement with the lender of its mining hashrate loan, originally executed on November 11, 2024. Pursuant to the supplementary agreement, the loan terms were amended from an open-term arrangement to a fixed-term loan with a scheduled maturity date of April 30, 2028, with no major changes to other terms. Under the revised terms, neither party may unilaterally terminate the loan or demand repayment prior to the scheduled maturity date, except under limited circumstances such as material default, material adverse change in the borrower’s financial condition, or a material equity change of the Company’s parent. The principal amount of the loan will be repaid in a single lump-sum payment on the scheduled maturity date, with no interim amortization.
On October 15, 2025, the board of Directors approved the termination of the Company’s “ADR” program. The ADR program and the related Deposit Agreement were terminated after market closed on November 14, 2025, when the Company’s ADSs were mandatorily cancelled and the Class A ordinary shares underlying the ADSs were distributed to holders of the ADSs. Each holder of one ADS received two Class A ordinary shares of the Company. The Company’s Class A ordinary shares were listed and commenced trading on the New York Stock Exchange (“NYSE”) under the Company’s existing symbol “CANG” on November 17, 2025, immediately after termination of the ADR program.
F-28
CANGO INC.
NOTES TO THE UNAUDITED ITERIM CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in U.S. dollars (“US$”), except for number of shares and per share data)
19.SUBSEQUENT EVENTS-CONTINUED
On October 21, 2025, the Board of Directors of Cango Inc. approved Share Incentive Plan 2025 (the “Plan”), under which the maximum aggregate number of Shares which may be issued pursuant to all Awards shall initially be equal to
F-29
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations for the six months ended June 30, 2024 and 2025. This section should be read in conjunction with our unaudited interim condensed consolidated financial statements and the related notes included elsewhere in this interim report. See “Exhibit 99.1— Unaudited Interim Condensed Consolidated Financial Statements of Cango Inc. as of December 31, 2024 and June 30, 2025 and for the six months ended June 30, 2024 and 2025.”
Unless otherwise indicated or the context otherwise requires, all references to “our company,” “the Company,” “we,” “our,” “ours,” “us” or similar terms refer to Cango Inc. and its subsidiaries.
All such financial statements were prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. We have made rounding adjustments to some of the figures included in this management’s discussion and analysis. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors.
Overview
We are primarily engaged in the bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America and East Africa. We entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of crypto assets, and our commitment to diversifying our business portfolio. In parallel, we continue to operate an international automobile trading business, making it easier for global customers to access high-quality vehicle inventory from China.
Description of Key Statement of Operations Items from Continuing Operations
Revenues
The table below sets forth our revenues in aggregate and by service types for the six months ended June 30, 2024 and 2025:
| | For the six months ended June 30, | ||
|
| 2024 |
| 2025 |
| | US$ | | US$ |
Revenues: | | | | |
Bitcoin mining income |
| — |
| 282,269,981 |
International automobile trading income |
| — |
| 1,720,650 |
Total revenues |
| — |
| 283,990,631 |
Bitcoin mining income
We entered the crypto asset space in November 2024 and generate bitcoin mining income by providing hash calculation to mining pool operators based on cooperation agreements. Revenue from bitcoin mining business was US$282.3 million, a total of 2945.4 bitcoins mined in the six months ended June 30, 2025. Average cost to mine, excluding depreciation of mining machines, was US$ 75,989 per bitcoin, with all-in costs of US$ 90,654 per bitcoin. As of June 30, 2025, our total mining capacity reached 50 EH/s, primarily driven by the acquisition of 18 EH/s in June 2025.
International automobile trading income
International automobile trading income relates to our online international used car export business operated through AutoCango.com, which was launched in March 2024 and provides Chinese used car information to overseas dealers. For the six months ended June 30, 2025, revenue from international automobile trading business was US$1.7 million.
1
Operating Costs and Expenses
The table below sets forth our operating costs and expenses for the six months ended June 30, 2024 and 2025:
| | For the six months ended June 30, | ||
|
| 2024 |
| 2025 |
| | US$ | | US$ |
Operating Costs and Expenses: | | | | |
Cost of revenue (exclusive of depreciation shown below) |
| — |
| 225,447,985 |
Cost of revenue (depreciation) |
| — |
| 43,194,326 |
General and administrative |
| 3,203,605 |
| 13,014,756 |
Provision for credit losses |
| — |
| 1,209,459 |
Impairment loss from mining machines |
| — |
| 256,856,570 |
Gain from changes in fair value of receivable for bitcoin collateral |
| — |
| (51,715,376) |
Total operating costs and expenses |
| 3,203,605 |
| 488,007,720 |
Our operating costs and expenses consist of cost of revenue, general and administrative expenses, provision for credit losses, impairment loss from mining machines and gain from changes in fair value of receivable for bitcoin collateral.
Cost of revenue
Our cost of revenue primarily consists of cost of mining machines’ depreciation, cost of hosting expenses of mining machines and cost of vehicles. Cost of revenues are expensed as incurred when the corresponding services have been provided.
General and administrative expenses
Our general and administrative expenses consist primarily of compensation related to management, accounting and finance, legal, human resources and other administrative personnel, professional service fee as well as rent for office spaces related to various administrative activities.
Provision for credit losses
Our provision for credit losses consists primarily of the allowance for credit losses on the receivable for bitcoin collateral. The Company applies the current expected credit loss (“CECL”) model, which requires the measurement of lifetime expected credit losses on the amortized costs of the financial assets.
Impairment loss from mining machines
Impairment loss from mining machines in the six months ended June 30, 2025 was US$256.9 million. This non-cash impairment loss primarily resulted from the pricing of the 18 EH/s of mining machines acquired through a share-settled transaction entered in November 2024. By the time the mining machines were delivered in June 2025, our share price had nearly doubled, which triggered a non-cash accounting adjustment in accordance with applicable accounting standards.
Gain from changes in fair value of receivable for bitcoin collateral
We recorded gain from changes in fair value of receivable for bitcoin collateral of US$51.7 million in the six months ended June 30, 2025, which represented the change in fair value of the collateralized bitcoin as of June 30, 2025 from the value of bitcoin received from our mining activity.
2
Results of Operations
The following summary of the unaudited consolidated financial data for the periods indicated is qualified by reference to, and should be read in conjunction with, our unaudited interim condensed consolidated financial statements and related notes.
| | Six months ended June 30 | ||
|
| 2024 |
| 2025 |
| | US$ | | US$ |
Revenues | | — | | 283,990,631 |
Bitcoin mining income |
| — |
| 282,269,981 |
International automobile trading income |
| — |
| 1,720,650 |
Operating cost and expenses: | | | | |
Cost of revenue (exclusive of depreciation shown below) |
| — |
| 225,447,985 |
Cost of revenue (depreciation) |
| — |
| 43,194,326 |
General and administrative |
| 3,203,605 |
| 13,014,756 |
Provision for credit losses |
| — |
| 1,209,459 |
Impairment loss from mining machines |
| — |
| 256,856,570 |
Gain from changes in fair value of receivable for bitcoin collateral |
| — |
| (51,715,376) |
Total operation cost and expense |
| 3,203,605 |
| 488,007,720 |
Loss from operations |
| (3,203,605) |
| (204,017,089) |
Interest Income |
| 4,295,668 |
| 991,173 |
Interest expense |
| — |
| (3,363,606) |
Foreign exchange loss, net |
| — |
| (7,988) |
Other income |
| 166,451 |
| 226,993 |
Other expenses |
| — |
| (78,095) |
Net income (loss) before income taxes from continuing operations |
| 1,258,514 |
| (206,248,612) |
Income tax benefit |
| — |
| 1,150,475 |
Net income (loss) from continuing operations |
| 1,258,514 |
| (205,098,137) |
Discontinued operations: | | | | |
Income (loss) from discontinued operations |
| 23,732,735 |
| (129,822,040) |
Income tax expenses |
| (607,490) |
| (32,646,978) |
Net income (loss) from discontinued operations |
| 23,125,245 |
| (162,469,018) |
Net income (loss) attributable to Cango Inc.’s shareholders |
| 24,383,759 |
| (367,567,155) |
Our historical results do not necessarily indicate our results to be expected for any future period.
About Non-GAAP Financial Measures
As part of our review of business performance, we present adjusted EBITDA as non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income or loss before interest, taxes, depreciation, impairment, results from discontinued operations and further excludes share-based compensation expenses and other non-operating income and expenses. We believe adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.
While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of our core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.
We compensate 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 our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
3
Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in the following table:
CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in US dollar (“US$”), except for number of shares and per share data
| | Six months ended June 30 | ||
|
| 2024 |
| 2025 |
| | US$ | | US$ |
Net income (loss) | | 24,383,759 | | (367,567,155) |
Less: Discontinued operations: | | | | |
Income (loss) from discontinued operations |
| 23,732,735 |
| (129,822,040) |
Income tax expense |
| (607,490) |
| (32,646,978) |
Net income (loss) from discontinued operations |
| 23,125,245 |
| (162,469,018) |
Net income (loss) from continuing operations |
| 1,258,514 |
| (205,098,137) |
| | | | |
Add: Interest expense |
| — |
| 3,363,606 |
Add: Income tax benefit |
| — |
| (1,150,475) |
Add: Depreciation |
| 707 |
| 43,201,199 |
Cost of revenue |
| — |
| 43,194,326 |
General and administrative |
| 707 |
| 6,873 |
Add: Impairment loss from mining machines |
| — |
| 256,856,570 |
Add: Other expenses |
| — |
| 78,095 |
Less: Other income |
| 166,451 |
| 226,993 |
Add: Share-based compensation expenses |
| 1,079,112 |
| 3,697,862 |
General and administrative |
| 1,079,112 |
| 3,697,862 |
Non-GAAP adjusted EBITDA |
| 2,171,882 |
| 100,721,727 |
Non-GAAP adjusted EBITDA attributable to Cango Inc.’s shareholders |
| 2,171,882 |
| 100,721,727 |
The Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024
Discussions below reflect results of operations related to continuing operations.
Revenues
For the six months ended June 30, 2025, total revenues were US$284.0 million, with the bitcoin mining business generating revenue of US$282.3 million and the international automobile trading business generating revenue of US$1.7 million.
Our total revenues from continuing operations were nil during the six months ended June 30, 2024 because we entered the crypto asset space in November 2024 and launched AutoCango.com in March 2024, which started to generate revenues from April 2025.
Operating costs and expenses
Our operating costs and expenses increased from US$3.2 million for the six months ended June 30, 2024 to US$488.0 million for the six months ended June 30, 2025, primarily due to the following:
Cost of revenue (exclusive of depreciation shown below). For the six months ended June 30, 2025, cost of revenue excluding depreciation was mainly comprised of hosting expenses for mining service of US$223.8 million and cost of vehicles of US$1.6 million while no such costs incurred during six months ended June 30, 2024.
Cost of revenue (depreciation). For the six months ended June 30, 2025, cost of revenue relating to the depreciation of our mining machines amounted to US$43.2 million while no such costs incurred during six months ended June 30, 2024.
The gross profit for the six months ended June 30, 2025 was US$15.3 million. For the bitcoin mining business, the gross profit for the six months ended June 30, 2025 was US$15.2 million. For the international automobile trading business, the gross profit for the six months ended June 30, 2025 was US$0.1 million.
4
General and administrative expenses. General and administrative expenses increased from US$ 3.2 million for the six months ended June 30, 2024 to US$13.0 million for the six months ended June 30, 2025, representing an increase of US$9.8 million. The increase was mainly due to the increase of the non-cash shared based compensation and the professional service fees rendered for the six months ended June 30, 2025.
Provision for credit losses. Our provision for credit losses increased from nil for the six months ended June 30, 2024 to US$1.2 million for the six months ended June 30, 2025, primarily due to the allowance for credit losses on the receivable for bitcoin collateral. The Company applies the current expected credit loss (“CECL”) model, which requires the measurement of lifetime expected credit losses on the amortized costs of the financial assets.
Impairment loss from mining machines. Impairment loss from mining machines increased from nil for the six months ended June 30, 2024 to US$256.9 million for the six months ended June 30, 2025. This non-cash impairment loss primarily resulted from the pricing of the 18 EH/s of mining machines acquired through a share-settled transaction entered in November 2024. By the time the mining machines were delivered in June 2025, our share price had nearly doubled, which triggered a non-cash accounting adjustment in accordance with applicable accounting standards.
Gain from changes in fair value of receivable for bitcoin collateral. We recorded gain from changes in fair value of receivable for bitcoin collateral of US$51.7 million in the six months ended June 30, 2025 which represented the positive change in fair value of the collateralized bitcoin as of June 30, 2025 from the value of bitcoin received from our mining activity.
Interest income. Our interest income decreased from US$4.3 million for the six months ended June 30, 2024 to US$1.0 million for the six months ended June 30, 2025, representing a decrease of US$3.3 million. The decrease was mainly due to the decreased balances of bank deposits maintained during the six months period ended June 30, 2025.
Interest expense. Our interest expense increased from nil for the six months ended June 30, 2024 to US$3.4 million for the six month ended June 30, 2025, mainly due to interest expenses for the hash rate financing loan to fund the mining operations.
Other income. Our other income was US$0.2 million for the six months ended June 30, 2024 and US$0.2 million for the six months ended June 30, 2025, which represented the income from ADS depositary fee shared with the Company in both periods.
Other expenses. Our other expenses increased from nil for the six months ended June 30, 2024 to US$0.1 million for the six months ended June 30, 2025, which represented the disposal of operating lease right-of-use assets, netting of the associated lease liabilities.
Net (loss) income before income taxes. As a result of the foregoing factors, we recorded net loss before income taxes of US$206.2 million for the six months ended June 30, 2025, compared with net income before income taxes of US$1.3 million for the six months ended June 30, 2024.
Income tax benefit. Our income tax benefit increased from nil for the six months ended June 30, 2024 to US$1.2 million for the six months ended June 30, 2025, mainly due to the recognition of deferred tax assets for the losses to be carried forward.
Net (loss) income from continuing operations. As a result of the foregoing factors, we recorded net loss of US$205.1 million from continuing operations for the six months ended June 30, 2025, as compared to net income of US$1.3 million from continuing operations for the six months ended June 30, 2024.
Net income (loss) from discontinued operations
For the six months ended June 30, 2025, the Company recorded a loss from discontinued operations of US$162.5 million in connection with the divestiture of its PRC business. The loss included a one-time release of cumulative foreign currency translation adjustment of US$44.3 million from accumulated other comprehensive loss, loss from discontinued operations of US$7.2 million, loss from disposal of discontinued operations of US$78.4 million and income tax expenses of US$32.6 million related to the PRC withholding tax on the indirect transfer of such assets.
For the six months ended June 30, 2024, the Company recorded a net income of US$23.1 million from discontinued operations, primarily attributable to net recovery on provision for credit losses and net gain on contingent risk assurance liabilities.
5
Liquidity and Capital Resources
Our principal sources of liquidity have been issuance of equity securities, borrowings from trusts, banks and other third-parties and cash provided by operating activities, which have historically been sufficient to meet our working capital and substantially all of our capital expenditure requirements. In addition, in May 2025, we successfully completed the divestiture of our PRC business, generating substantial cash proceeds and providing ample liquidity to support our ongoing strategic initiatives.
As of June 30, 2025, we had cash and cash equivalents of US$117.8 million compared with US$90.4 million belong to continuing operations as of December 31, 2024.
As a holding company with no material operations of our own, we conduct our operations primarily through our wholly owned subsidiaries.
The following table sets forth a summary of our cash flows for the six months ended June 30, 2024 and 2025.
|
| For the six month ended June 30, | ||
| | 2024 |
| 2025 |
| | US$ | | US$ |
Net cash provided by / (used in) continuing operating activities | | 1,190,424 | | (12,715,733) |
Net cash provided by continuing investing activities |
| 271,221 |
| 153,312,556 |
Net cash used in continuing financing activities |
| (12,065,515) |
| (174,277,190) |
Net cash (used in) / provided by continuing operating activities
Net cash used in operating activities was US$12.7 million in the six months ended June 30, 2025, primarily due to the net loss from continuing operations of US$205.1 million, adjusted for (i) impairment loss from mining machines of US$256.9 million, (ii) depreciation of US$43.2 million, (iii) share-based compensation expenses of US$3.7 million, and (iv) US$208.1 million of hosting and services settled through stablecoins, partially offset by (i) bitcoin mining income of US$282.3 million, and (ii) change in fair value of bitcoin collateral of US$51.7 million.
Net cash provided by operating activities was US$1.2 million in the six months ended June 30, 2024, primarily due to net income of US$24.4 million, adjusted for (i) income for discontinued operations of US$23.1 million and (ii) changes in working capital of US$1.3 million, partially offset by non-cash share-based compensation expense of US$1.1 million.
Net cash provided by continuing investing activities
Net cash provided by investing activities was US$153.3 million in the six months ended June 30, 2025, primarily due to (i) net proceeds from sale of discontinued operations of US$149.5 million and (ii) proceeds from redemption of other short-term investments of US$40.1 million, partially offset by payments for the mining machines of US$36.3 million.
Net cash provided by investing activities was US$0.3 million in the six months ended June 30, 2024, primarily due to the redemption of short-term investments, net of the purchases of such investments.
Net cash used in continuing financing activities
Net cash used in financing activities was US$174.3 million in the six months ended June 30, 2025, primarily for the repayment of borrowings due to discontinued operations.
Net cash used in financing activities was US$12.1 million in the six months ended June 30, 2024, primarily due to payment to treasury shares repurchases.
Cash flows from discontinued operations
Net cash used in discontinued operations was US$68.6 million for the six months ended June 30, 2025, primarily due to prepayments for machines of US$128.4 million and an equity investment in a joint venture of US$55.1 million, as well as net operating expenses of US$10.1 million, partially offset by net proceedings from redemptions of short-term investments of US$127.6 million.
6
Net cash used in discontinued operations was US$245.9 million for the six months ended June 30, 2024, primarily due to payments for short-term investments, net of redemptions, totaling US$291.5 million, partially offset by the positive operating cash flows mainly attributable to the collection of accounts receivable and financing receivables of US$44.0 million.
Critical accounting estimates
Our unaudited interim condensed consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of these unaudited interim condensed consolidated financial statements requires us to make certain estimates and assumptions that affect the amounts reported. On an ongoing basis, we evaluate our estimates and assumptions.
The following new critical accounting estimate was adopted during the three months ended June 30, 2025.
See Note 2 to the unaudited interim condensed consolidated financial statements in our 2025 Form 6-K for a summary of significant accounting policies.
Impairment of long-lived assets
Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Off-balance Sheet Arrangements
We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.
Cautionary Statement Regarding Forward Looking Statements
We have made statements in this interim report that constitute forward-looking statements. Forward-looking statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “should,” “could” and similar expressions. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements.
These forward-looking statements include statements about:
| ● | our business and operating strategies and plans for the development of existing and new businesses, ability to implement such strategies and plans and expected time; |
| ● | developments in, or changes to, laws, regulations, governmental policies, incentives, taxation and regulatory and policy environment affecting our operations and the industries where we operate; |
| ● | our future business development, financial condition and results of operations; |
| ● | expected changes in our revenues, costs or expenditures; and |
| ● | general business, political, social and economic conditions in the markets where we have operations. |
The ultimate correctness of these forward-looking statements depends upon a number of known and unknown risks and events. Many factors could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Consequently, you should not place undue reliance on these forward-looking statements.
7
The forward-looking statements speak only as of the date on which they are made, and, except as required by law; we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update this forward-looking information. Nonetheless, we reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this interim report. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
8