Cango Inc. Reveals Strong Q2 2024 Financial Performance, Exceeding Guidance and Boosting Shareholder Value

Cango Inc. (NYSE: CANG), a prominent automotive transaction service platform in China, has proudly announced its unaudited financial results for the second quarter ended June 30, 2024. The company's performance during this period significantly surpassed its internal revenue guidance, reflecting its strategic agility and strong operational execution in a dynamic market environment.

For the second quarter of 2024, Cango reported total revenues of RMB419.6 million (US$58.5 million), a testament to its effective market penetration and service offerings.

This impressive revenue figure contributed to a solid net income of RMB63.9 million (US$8.9 million), resulting in a diluted net income per American Depositary Share (ADS) of RMB0.94 (US$0.13). Factoring in non-GAAP adjustments, the net income reached RMB78.2 million (US$10.9 million), with a non-GAAP diluted net income per ADS of RMB1.14 (US$0.16), providing a clearer picture of the company's core operational profitability.

The company maintained a healthy gross profit of RMB134.7 million (US$18.7 million) for the quarter.

Cango's disciplined approach to managing expenses was evident, with total operating expenses, encompassing selling and marketing, general and administrative, and research and development, amounting to RMB67.2 million (US$9.3 million). This prudent financial management is crucial for sustainable growth and profitability.

Cango Inc.

continued its commitment to shareholder returns through its robust share repurchase program. During the second quarter of 2024 alone, the company strategically repurchased 10.7 million ADSs, totaling approximately US$14.8 million. As of June 30, 2024, the cumulative share repurchases under the ongoing program have reached 33.7 million ADSs, representing a total investment of US$48.5 million.

This aggressive repurchase activity underscores management's confidence in Cango's intrinsic value and future prospects.

Mr. Lin Kun, Chief Executive Officer of Cango, expressed his optimism regarding the company's achievements. "We are very pleased with our strong financial performance in the second quarter of 2024, where we not only met but exceeded our revenue guidance," said Mr.

Lin. "This success is a direct result of our focused strategic initiatives, relentless operational excellence, and the dedication of our entire team. We remain committed to innovating our automotive transaction services and driving sustainable value creation for all our stakeholders."

Looking ahead, Cango Inc.

has provided guidance for the third quarter of 2024, anticipating total revenues to be in the range of RMB390 million to RMB420 million. This outlook reflects the company's current assessment of market conditions and its ongoing efforts to optimize its business model and expand its service offerings.

Cango is poised to continue leveraging technology to enhance the automotive transaction ecosystem in China.

It is important to note that the financial results discussed are unaudited, and non-GAAP financial measures are provided to offer investors a more comprehensive understanding of the company's underlying business performance by excluding certain non-recurring or non-cash items.

All U.S. dollar conversions are based on an exchange rate of RMB7.1956 to US$1.00 as of June 28, 2024.