Cango Inc 6-K, filed Aug 20, 2021
Cango Inc. (CANG)
About this 6-K
Cango Inc filed this 6-K on August 20, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2021
Commission File Number: 001-38590
CANGO INC.
10A, Building 3, Youyou Century Plaza
428 South Yanggao Road
Pudong New Area, Shanghai 200127
People’s Republic of China
(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 ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
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: August 20, 2021
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Exhibit 99.1
Cango Inc. Reports Second Quarter 2021 Unaudited Financial Results
SHANGHAI, August 19, 2021 /PRNewswire/ – Cango Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced its unaudited financial results for the second quarter of 2021.
Second Quarter 2021 Financial and Operational Highlights
| • | Total revenues were RMB946.7 million (US$146.6 million), a 245.5% increase from RMB274.1 million in the same period of 2020, meeting the Company’s previous guidance range. The increase was mainly driven by the increased amounts of both financing transactions the Company facilitated and car trading transactions in the second quarter of 2021. |
| • | Car trading transactions revenues were RMB522.5 million (US$80.9 million), or 55.2% of total revenues in the second quarter of 2021. |
| • | Automotive financing facilitation revenues were RMB303.3 million (US$47.0 million), a 111.2% increase from RMB143.6 million in the same period of 2020. |
| • | After-market services facilitation revenues were RMB51.9 million (US$8.0 million), compared to RMB52.5 million in the same period of 2020. |
| • | The amount of financing transactions the Company facilitated in the second quarter of 2021 was RMB7,789.7 million (US$1,206.5 million). The total outstanding balance of financing transactions the Company facilitated was RMB48,637.8 million (US$7,533.0 million) as of June 30, 2021. |
| • | M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 1.35% and 0.69 %, respectively, as of June 30, 2021, compared to 1.23% and 0.54%, respectively, as of March 31, 2021. |
| • | The number of dealers covered by the Company was 47,740 as of June 30, 2021, compared to 47,017 as of March 31, 2021. |
Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, “We entered the second quarter with a focus on navigating major challenges primarily associated with the global chip shortage. We are pleased with our second quarter performance, and thanks to solid progress in our car trading transactions business, we delivered a 245.5% year-over-year growth in total revenues, meeting our previous guidance range. The ongoing chip supply shortage, which has slowed down production and consumption in the entire auto industry, impacted our business to a certain extent and we expect the impact to linger in the second half of 2021. However, we remain dedicated to advancing key elements of our strategy and believe our solid business fundamentals give us considerable flexibility to navigate uncertain and stressful times. In late May, we launched our B2B service platform ‘Cango Haoche’ integrating car information with transactions, logistics, finance and insurance to directly address pain points for car dealers in the lower-tier markets. In addition, we introduced an updated service account of ‘Cango Cheshenghuo’ on WeChat also in the second quarter, offering consumers a one-stop service covering purchases, usage and maintenance of cars. With ‘Cango Haoche’ and ‘Cango Cheshenghuo,’ we have empowered B-end car dealers and served C-end car owners, further enhancing the bond between dealers, users and us.”
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“Looking ahead, we expect the impact of the supply chain-related challenges in the auto market to remain unresolved in the near term. However, we will closely monitor the situation and adapt accordingly, while staying true to our original goals and upholding our commitment to facilitating easy and enjoyable car purchase experiences for our consumers,” Mr. Lin concluded.
Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, “Our second quarter financial performance was in line with our expectations. Total revenues came in at RMB946.7 million, more than tripling from a year ago. We also recorded a net income of RMB557.7 million in the second quarter. While uncertainty stemming from global chip supply chain disruptions are ongoing, we remain committed to improving our operating efficiency while continually investing in the business to deliver more value to our dealers, partners and users. We fully believe that this will enable us to continue creating value for our shareholders well into the future.”
Second Quarter 2021 Financial Results
REVENUES
Total revenues in the second quarter of 2021 increased by 245.5% to RMB946.7 million (US$146.6 million) from RMB274.1 million in the same period of 2020. Revenues from car trading transactions in the second quarter of 2021 were RMB522.5 million (US$80.9 million), continuing to serve as an important revenue contributor. Revenues from automotive financing facilitation and after-market services facilitation in the second quarter of 2021 were RMB303.3 million (US$47.0 million) and RMB51.9 million (US$8.0 million), respectively.
OPERATING COST AND EXPENSES
Total operating cost and expenses in the second quarter of 2021 were RMB933.5 million (US$144.6 million) compared to RMB207.4 million in the same period of 2020. This was mainly due to the related costs incurred by car trading transactions business. Primarily as a result of the increase in revenues from car trading transactions, sales and marketing expenses, general and administrative expenses and research and development expenses each decreased as a percentage of total revenues in the second quarter of 2021, compared to the same period of 2020.
| • | Cost of revenue in the second quarter of 2021 increased to RMB697.8 million (US$108.1 million) from RMB102.8 million in the same period of 2020. As a percentage of total revenues, cost of revenue in the second quarter of 2021 was 73.7% compared to 37.5% in the same period of 2020, and the change was primarily due to an increase in the amount of car trading transactions. For automotive financing facilitation and after-market services facilitation, cost of revenue as a percentage of relevant revenues was around 41.6% in the second quarter of 2021. |
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| • | Sales and marketing expenses in the second quarter of 2021 were RMB60.9 million (US$9.4 million) compared to RMB42.4 million in the same period of 2020. As a percentage of total revenues, sales and marketing expenses in the second quarter of 2021 was 6.4% compared to 15.5% in the same period of 2020. |
| • | General and administrative expenses in the second quarter of 2021 were RMB64.7 million (US$10.0 million) compared to RMB66.0 million in the same period of 2020. As a percentage of total revenues, general and administrative expenses in the second quarter of 2021 was 6.8% compared to 24.1% in the same period of 2020. |
| • | Research and development expenses in the second quarter of 2021 were RMB15.6 million (US$2.4 million) compared to RMB12.9 million in the same period of 2020. As a percentage of total revenues, research and development expenses in the second quarter of 2021 was 1.7% compared to 4.7% in the same period of 2020. |
| • | Net loss on risk assurance liabilities in the second quarter of 2021 was RMB35.9 million (US$5.6 million) compared to a net gain of RMB42.9 million in the same period of 2020. |
INCOME FROM OPERATIONS
Income from operations in the second quarter of 2021 was RMB13.2 million (US$2.1 million), compared to RMB66.7 million in the same period of 2020.
FAIR VALUE CHANGE OF EQUITY INVESTMENT
Fair value change of equity investment in the second quarter of 2021 was a gain of RMB603.4 million (US$93.5 million) compared to nil in the same period of 2020. The gain in the second quarter of 2021 is mainly due to the investment in Li Auto. As of June 30, 2021, Cango held 8,000,000 American Depositary Shares of Li Auto. Each American Depositary Share of Li Auto represents two Class A ordinary shares of Li Auto.
NET INCOME
Primarily due to the fair value change of the Company’s investment in Li Auto, net income in the second quarter of 2021 was RMB557.7 million (US$86.4 million). Non-GAAP adjusted net income in the second quarter of 2021 was RMB578.3 million (US$89.6 million). Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measure.”
NET INCOME PER ADS
Basic and diluted net income per American Depositary Share (ADS) in the second quarter of 2021 were RMB3.85 (US$0.60) and RMB3.75 (US$0.58). Non-GAAP adjusted basic and diluted net income per ADS in the second quarter of 2021 were RMB3.99 (US$0.62) and RMB3.89 (US$0.60). Each ADS represents two Class A ordinary shares of the Company.
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BALANCE SHEET
As of June 30, 2021, the Company had cash and cash equivalents of RMB1,498.9 million (US$232.2 million), compared to RMB1,631.0 million as of March 31, 2021.
As of June 30, 2021, the Company had short-term investments of RMB3,127.2 million (US$484.3 million), compared to RMB2,627.6 million as of March 31, 2021.
Business Outlook
For the third quarter of 2021, the Company expects total revenues to be between RMB700 million and RMB750 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.
The Company’s investment in Li Auto and the change in fair value of investment due to the price volatility of the stock may have a significant impact on the Company’s third quarter of 2021 financial results.
Share Repurchase Program
Pursuant to the share repurchase program announced on March 2, 2021, we had repurchased 5,397,207 American depositary shares (“ADSs”) with cash in the aggregate amount of approximately US$48.4 million up to July 31, 2021.
Conference Call Information
The Company’s management will hold a conference call on Thursday, August 19, 2021, at 9:00 P.M. Eastern Time or Friday, August 20, 2021, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:
| International: | +1-412-902-4272 | |
| United States Toll Free: | +1-888-346-8982 | |
| Mainland China Toll Free: | 4001-201-203 | |
| Hong Kong, China Toll Free: | 800-905-945 | |
| Conference ID: | Cango Inc. |
The replay will be accessible through August 26, 2021, by dialing the following numbers:
| International: | +1-412-317-0088 | |
| United States Toll Free: | +1-877-344-7529 | |
| Access Code: | 10159690 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cangoonline.com/.
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About Cango Inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. Founded in 2010 by a group of pioneers in China’s automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company’s services primarily consist of automotive financing facilitation, car trading transactions, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango’s platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. For more information, please visit: www.cangoonline.com.
Definition of Overdue Ratios
The Company defines “M1+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
The Company defines “M3+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
Use of Non-GAAP Financial Measure
In evaluating the business, the Company considers and uses Non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company’s operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.
Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using Non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of Non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
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The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Reconciliations of Cango’s non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the “Business Outlook” section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango’s goal and strategies; Cango’s expansion plans; Cango’s future business development, financial condition and results of operations; Cango’s expectations regarding demand for, and market acceptance of, its solutions and services; Cango’s expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com
Twitter: https://twitter.com/Cango_Group
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Emilie Wu
The Piacente Group, Inc.
Tel: +86 21 6039 8363
Email: ir@cangoonline.com
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CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)
| As of December 31, 2020 |
As of June 30, 2021 |
|||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS: |
||||||||||||
| Current assets: |
||||||||||||
| Cash and cash equivalents |
1,426,899,576 | 1,498,947,545 | 232,157,412 | |||||||||
| Restricted cash - current |
9,693,008 | 34,767,022 | 5,384,726 | |||||||||
| Short-term investments |
4,342,356,612 | 3,127,171,118 | 484,337,131 | |||||||||
| Accounts receivable, net |
141,594,170 | 157,050,941 | 24,324,093 | |||||||||
| Finance lease receivables - current, net |
2,035,397,525 | 1,717,714,853 | 266,040,153 | |||||||||
| Short-term consumer financing receivables, net |
23,168 | — | — | |||||||||
| Financing receivables, net |
20,105,893 | 43,575,286 | 6,748,952 | |||||||||
| Short-term contract asset |
364,618,635 | 714,635,512 | 110,682,946 | |||||||||
| Prepayments and other current assets |
558,360,959 | 887,766,346 | 137,497,498 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current assets |
8,899,049,546 | 8,181,628,623 | 1,267,172,911 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-current assets: |
||||||||||||
| Restricted cash - non-current |
878,299,140 | 845,590,108 | 130,965,231 | |||||||||
| Goodwill |
145,063,857 | 145,063,857 | 22,467,530 | |||||||||
| Property and equipment, net |
10,311,971 | 21,032,036 | 3,257,448 | |||||||||
| Intangible assets |
44,887,871 | 44,683,992 | 6,920,669 | |||||||||
| Long-term contract asset |
281,374,110 | 474,407,237 | 73,476,325 | |||||||||
| Deferred tax assets |
170,951,082 | 374,774,207 | 58,045,133 | |||||||||
| Finance lease receivables - non-current, net |
1,454,499,864 | 1,186,837,807 | 183,817,769 | |||||||||
| Other non-current assets |
261,495,158 | 427,327,797 | 66,184,648 | |||||||||
|
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|
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|
|
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| Total non-current assets |
3,246,883,053 | 3,519,717,041 | 545,134,753 | |||||||||
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| TOTAL ASSETS |
12,145,932,599 | 11,701,345,664 | 1,812,307,664 | |||||||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
| Current liabilities: |
||||||||||||
| Short-term debts |
355,816,940 | 779,104,385 | 120,667,903 | |||||||||
| Long-term debts—current |
1,228,783,730 | 1,122,603,494 | 173,869,141 | |||||||||
| Accrued expenses and other current liabilities |
324,734,202 | 352,398,112 | 54,579,517 | |||||||||
| Risk assurance liabilities |
460,829,299 | 642,664,973 | 99,536,129 | |||||||||
| Income tax payable |
87,132,455 | 388,784,530 | 60,215,056 | |||||||||
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|
|
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| Total current liabilities |
2,457,296,626 | 3,285,555,494 | 508,867,747 | |||||||||
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| Non-current liabilities: |
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| Long-term debts |
977,791,191 | 836,810,348 | 129,605,419 | |||||||||
| Deferred tax liability |
330,765,029 | 171,705,298 | 26,593,764 | |||||||||
| Other non-current liabilities |
4,870,616 | 2,479,512 | 384,028 | |||||||||
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|
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| Total non-current liabilities |
1,313,426,836 | 1,010,995,158 | 156,583,211 | |||||||||
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|
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| Total liabilities |
3,770,723,462 | 4,296,550,652 | 665,450,957 | |||||||||
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| Shareholders’ equity |
||||||||||||
| Ordinary shares |
204,260 | 204,260 | 31,636 | |||||||||
| Treasury shares |
(56,419,225 | ) | (356,910,505 | ) | (55,278,398 | ) | ||||||
| Additional paid-in capital |
4,591,455,557 | 4,624,962,530 | 716,315,480 | |||||||||
| Accumulated other comprehensive income |
(115,386,427 | ) | (147,245,016 | ) | (22,805,349 | ) | ||||||
| Retained earnings |
3,955,354,972 | 3,283,783,743 | 508,593,338 | |||||||||
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| Total Cango Inc.’s equity |
8,375,209,137 | 7,404,795,012 | 1,146,856,707 | |||||||||
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| Total shareholders’ equity |
8,375,209,137 | 7,404,795,012 | 1,146,856,707 | |||||||||
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|
|
|
|
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
12,145,932,599 | 11,701,345,664 | 1,812,307,664 | |||||||||
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|
|
|
|
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CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Revenues |
274,054,751 | 946,746,211 | 146,632,316 | 520,052,725 | 2,070,532,922 | 320,684,714 | ||||||||||||||||||
| Loan facilitation income and other related income |
143,604,125 | 303,346,685 | 46,982,419 | 263,332,523 | 715,037,501 | 110,745,207 | ||||||||||||||||||
| Leasing income |
69,275,783 | 64,708,395 | 10,022,054 | 143,557,538 | 137,836,071 | 21,348,089 | ||||||||||||||||||
| After-market services income |
52,472,658 | 51,866,024 | 8,033,024 | 101,528,861 | 114,395,515 | 17,717,609 | ||||||||||||||||||
| Automobile trading income |
6,228,508 | 522,544,976 | 80,931,911 | 7,601,416 | 1,094,109,857 | 169,456,038 | ||||||||||||||||||
| Others |
2,473,677 | 4,280,131 | 662,908 | 4,032,387 | 9,153,978 | 1,417,771 | ||||||||||||||||||
| Operating cost and expenses: |
— | |||||||||||||||||||||||
| Cost of revenue |
102,817,046 | 697,786,112 | 108,073,307 | 193,414,759 | 1,466,833,661 | 227,183,605 | ||||||||||||||||||
| Sales and marketing |
42,437,952 | 60,885,719 | 9,429,997 | 88,212,181 | 118,729,278 | 18,388,824 | ||||||||||||||||||
| General and administrative |
66,040,192 | 64,658,358 | 10,014,304 | 123,451,858 | 126,048,975 | 19,522,500 | ||||||||||||||||||
| Research and development |
12,901,613 | 15,638,883 | 2,422,155 | 25,458,298 | 29,233,130 | 4,527,635 | ||||||||||||||||||
| Net (gain) loss on risk assurance liabilities |
(42,928,191 | ) | 35,903,834 | 5,560,796 | 33,957,484 | 57,642,765 | 8,927,727 | |||||||||||||||||
| Provision for credit losses |
26,119,771 | 58,636,181 | 9,081,588 | 70,214,542 | 99,268,133 | 15,374,676 | ||||||||||||||||||
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| Total operation cost and expense |
207,388,383 | 933,509,087 | 144,582,146 | 534,709,122 | 1,897,755,942 | 293,924,967 | ||||||||||||||||||
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| Income (Loss) from operations |
66,666,368 | 13,237,124 | 2,050,169 | (14,656,397 | ) | 172,776,980 | 26,759,747 | |||||||||||||||||
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| Interest and investment income |
21,675,128 | 4,128,041 | 639,352 | 50,808,295 | 22,369,008 | 3,464,518 | ||||||||||||||||||
| Fair value change of equity investment |
— | 603,413,645 | 93,456,873 | — | 156,488,012 | 24,236,907 | ||||||||||||||||||
| Interest expense |
(369,637 | ) | (234,274 | ) | (36,284 | ) | (1,736,923 | ) | (813,242 | ) | (125,955 | ) | ||||||||||||
| Foreign exchange gain (loss), net |
621,774 | (938,526 | ) | (145,359 | ) | (3,439,945 | ) | (735,132 | ) | (113,857 | ) | |||||||||||||
| Other income |
7,317,072 | 7,568,769 | 1,172,253 | 25,790,703 | 11,176,345 | 1,730,995 | ||||||||||||||||||
| Other expenses |
(527,390 | ) | (193,817 | ) | (30,018 | ) | (581,495 | ) | (6,479,822 | ) | (1,003,597 | ) | ||||||||||||
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| Net income before income taxes |
95,383,315 | 626,980,962 | 97,106,986 | 56,184,238 | 354,782,149 | 54,948,758 | ||||||||||||||||||
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|
|
|
|
|||||||||||||
| Income tax expenses |
(25,152,250 | ) | (69,243,099 | ) | (10,724,390 | ) | (20,639,459 | ) | (70,915,821 | ) | (10,983,462 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income |
70,231,065 | 557,737,863 | 86,382,596 | 35,544,779 | 283,866,328 | 43,965,296 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Less: Net income attributable to non-controlling interests |
— | — | — | 3,646,196 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income attributable to Cango Inc.’s shareholders |
70,231,065 | 557,737,863 | 86,382,596 | 31,898,583 | 283,866,328 | 43,965,296 | ||||||||||||||||||
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|
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|
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| Earnings per ADS attributable to ordinary shareholders: |
||||||||||||||||||||||||
| Basic |
0.47 | 3.85 | 0.60 | 0.21 | 1.93 | 0.30 | ||||||||||||||||||
| Diluted |
0.47 | 3.75 | 0.58 | 0.21 | 1.89 | 0.29 | ||||||||||||||||||
| Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders: |
||||||||||||||||||||||||
| Basic |
150,605,540 | 144,829,122 | 144,829,122 | 150,789,465 | 147,012,155 | 147,012,155 | ||||||||||||||||||
| Diluted |
150,819,440 | 148,579,948 | 148,579,948 | 151,899,153 | 150,005,282 | 150,005,282 | ||||||||||||||||||
| Other comprehensive (loss) income, net of tax |
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|
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|
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| Foreign currency translation adjustment |
(5,444,800 | ) | (42,140,854 | ) | (6,526,787 | ) | 23,229,550 | (31,858,589 | ) | (4,934,267 | ) | |||||||||||||
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|
|
|
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|
|
|
|
|
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|
|
|||||||||||||
| Total comprehensive income |
64,786,265 | 515,597,009 | 79,855,809 | 58,774,329 | 252,007,739 | 39,031,029 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total comprehensive income attributable to Cango Inc.’s shareholders |
64,786,265 | 515,597,009 | 79,855,809 | 55,128,133 | 252,007,739 | 39,031,029 | ||||||||||||||||||
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|
|||||||||||||
CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net income |
70,231,065 | 557,737,863 | 86,382,596 | 35,544,779 | 283,866,328 | 43,965,296 | ||||||||||||||||||
| Add: Share-based compensation expenses |
22,096,880 | 20,522,138 | 3,178,474 | 45,415,178 | 40,433,303 | 6,262,321 | ||||||||||||||||||
| Cost of revenue |
905,973 | 783,983 | 121,424 | 1,862,024 | 1,454,657 | 225,298 | ||||||||||||||||||
| Sales and marketing |
4,706,635 | 4,004,166 | 620,166 | 9,673,432 | 7,521,055 | 1,164,863 | ||||||||||||||||||
| General and administrative |
15,335,232 | 14,987,159 | 2,321,215 | 31,518,128 | 29,678,982 | 4,596,689 | ||||||||||||||||||
| Research and development |
1,149,040 | 746,830 | 115,669 | 2,361,594 | 1,778,609 | 275,471 | ||||||||||||||||||
| — | ||||||||||||||||||||||||
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|
|||||||||||||
| Non-GAAP adjusted net income |
92,327,945 | 578,260,001 | 89,561,070 | 80,959,957 | 324,299,631 | 50,227,617 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Less: Net income attributable to non-controlling interests |
— | — | — | 3,646,196 | — | — | ||||||||||||||||||
| Net income attributable to Cango Inc.’s shareholders |
92,327,945 | 578,260,001 | 89,561,070 | 77,313,761 | 324,299,631 | 50,227,617 | ||||||||||||||||||
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|||||||||||||
| Non-GAAP adjusted net income per ADS-basic |
0.61 | 3.99 | 0.62 | 0.51 | 2.21 | 0.34 | ||||||||||||||||||
| Non-GAAP adjusted net income per ADS-diluted |
0.61 | 3.89 | 0.60 | 0.51 | 2.16 | 0.33 | ||||||||||||||||||
| Weighted average ADS outstanding—basic |
150,605,540 | 144,829,122 | 144,829,122 | 150,789,465 | 147,012,155 | 147,012,155 | ||||||||||||||||||
| Weighted average ADS outstanding—diluted |
150,819,440 | 148,579,948 | 148,579,948 | 151,899,153 | 150,005,282 | 150,005,282 | ||||||||||||||||||
Exhibit 99.2
CANGO INC. ANNOUNCES UP TO US$50 MILLION NEW SHARE REPURCHASE PROGRAM
SHANGHAI, August 19, 2021, /PRNewswire/ — Cango Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced that its board of directors has authorized a new share repurchase program (the “New Share Repurchase Program”) under which the Company may repurchase up to US$50 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing two Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from August 26, 2021. On March 2, 2021, the Company announced a share repurchase program (the “Existing Share Repurchase Program”) under which the Company may repurchase up to US$50 million worth of its outstanding ADSs and/or Class A ordinary shares. Pursuant to the Existing Share Repurchase Program, the Company had repurchased 5,397,207 ADSs with cash in the aggregate amount of approximately US$48.4 million up to July 31, 2021.
Under the New Share Repurchase Program, the Company may repurchase its ADSs from time to time through open market transactions at prevailing market prices, privately negotiated transactions, block trades or any combination thereof. In addition, Cango will also effect repurchase transactions in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and its insider trading policy. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Cango’s working capital requirements and general business conditions. The Company’s board of directors will review the New Share Repurchase Program periodically, and may authorize adjustment of its terms and size. The Company plans to fund the repurchases from its existing cash balance.
About Cango Inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. Founded in 2010 by a group of pioneers in China’s automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company’s services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango’s platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. For more information, please visit: www.cangoonline.com.
| Confidential. Not for Outside Distribution. | 1 |
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the “Business Outlook” section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango’s goal and strategies; Cango’s expansion plans; Cango’s future business development, financial condition and results of operations; Cango’s expectations regarding demand for, and market acceptance of, its solutions and services; Cango’s expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com
Emilie Wu
The Piacente Group, Inc.
Tel: +86 21 6039 8363
Email: ir@cangoonline.com
| Confidential. Not for Outside Distribution. | 2 |