Cango Inc. Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results
Fourth Quarter 2023 Financial and Operational Highlights
- Total revenues were
RMB130.2 million (US$18.3 million ), compared withRMB487.1 million in the same period of 2022. The total outstanding balance of financing transactions the Company facilitated wasRMB10.0 billion (US$1.4 billion ) as ofDecember 31, 2023 . M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 2.66% and 1.37%, respectively, as ofDecember 31, 2023 , compared with 2.42% and 1.24%, respectively, as ofSeptember 30, 2023 . - Total balance of cash and cash equivalents, short-term investments and restricted cash - current - bank deposits held for short-term investments were
RMB 3.3 billion (US$ 468.4 million ) as ofDecember 31, 2023 . The liquidity improvement was primarily driven by the positive operating cashflow generated by the decreased working capital of car trading transactions, the collections of financing receivables, and the loan facilitation service fees.
Full Year 2023 Financial and Operational Highlights
- Total revenues were
RMB1.7 billion (US$239.7 million ), compared withRMB2.0 billion in the full year of 2022. Car trading transactions revenues wereRMB1.3 billion (US$184.5 million ), or 77.0% of total revenues in the full year of 2023, compared withRMB1.6 billion in the full year of 2022. - In 2023, the company seamlessly merged new car service platform "Cango Haoche," into "Cango U-car," a specialized platform for used car transaction, to optimize resource allocation and enhance operational efficiency. The upgraded "Cango U-car" APP covers historical vehicle condition reports, vehicle appraisal and inspection, logistics and delivery services, insurance and supply chain financing facilitation, etc.
Mr.
"With keen insight into market conditions and industry trends,
"Our dynamic online marketplace featuring third-party and self-operated stores continues to drive progress across the platform. In the fourth quarter, the total number of upstream third-party seller stores on the platform reached 38, offering new cars, used cars, and traffic generation services. In the fourth quarter, 'Cango U-car' provided services to 3,499 small online car dealers and facilitated a total of 530 used car transactions."
"Beyond 'Cango U-car', we plan to establish a preferred website for overseas buyers seeking Chinese used cars. Leveraging
"Moving into 2024, we will continue to leverage technology to broaden our presence across the domestic and international automotive value chain. With our comprehensive, end-to-end service model and efficient operations, we will explore business opportunities inside and outside of China," concluded
Mr.
Fourth Quarter 2023 Financial Results
REVENUES
Total revenues in the fourth quarter of 2023 were
OPERATING COST AND EXPENSES
Total operating cost and expenses in the fourth quarter of 2023 were
- Cost of revenue in the fourth quarter of 2023 decreased to
RMB110.9 million (US$15.6 million ) fromRMB481.7 million in the same period of 2022. As a percentage of total revenues, cost of revenue in the fourth quarter of 2023 was 85.1% compared with 98.9% in the same period of 2022. - Sales and marketing expenses in the fourth quarter of 2023 decreased to
RMB4.4 million (US$0.6 million ) fromRMB19.2 million in the same period of 2022. As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2023 was 3.4% compared with 4% in the same period of 2022. - General and administrative expenses in the fourth quarter of 2023 decreased to
RMB45.6 million (US$6.4 million ) fromRMB66.2 million in the same period of 2022. As a percentage of total revenues, general and administrative expenses in the fourth quarter of 2023 was 35.0% compared with 13.6% in the same period of 2022. - Research and development expenses in the fourth quarter of 2023 decreased to
RMB7.3 million (US$1.0 million ) fromRMB8.4 million in the same period of 2022. As a percentage of total revenues, research and development expenses in the fourth quarter of 2023 was 5.6% compared with 1.7% in the same period of 2022. - Net loss on contingent risk assurance liabilities in the fourth quarter of 2023 was
RMB22.2 million (US$3.1 million ). - Net recovery on provision for credit losses in the fourth quarter of 2023 was
RMB31.2 million (US$4.4 million ). The recovery was primarily due to the positive impact from the collections of financing receivables.
LOSS FROM OPERATIONS
Loss from operations in the fourth quarter of 2023 decreased to
NET LOSS
Net loss in the fourth quarter of 2023 was
NET LOSS PER ADS
Basic and diluted net loss per American Depositary Share (the "ADS") in the fourth quarter of 2023 were both
BALANCE SHEET
As of
As of
Full Year 2023 Financial Results
REVENUES
Total revenues in the full year of 2023 were
OPERATING COST AND EXPENSES
Total operating cost and expenses in the full year of 2023 were
- Cost of revenue in the full year of 2023 decreased to
RMB1.5 billion (US$212.9 million ) fromRMB1.8 billion in the full year of 2022. As a percentage of total revenues, cost of revenue in the full year of 2023 was 88.8% compared with 92.4% in the full year of 2022. - Sales and marketing expenses in the full year of 2023 decreased to
RMB38.9 million (US$5.5 million ) fromRMB132.8 million in the full year of 2022. As a percentage of total revenues, sales and marketing expenses in the full year of 2023 was 2.3% compared with 6.7% in the full year of 2022. - General and administrative expenses in the full year of 2023 decreased to
RMB157.0 million (US$22.1 million ) fromRMB299.5 million in the full year of 2022. As a percentage of total revenues, general and administrative expenses in the full year of 2023 was 9.2% compared with 15.1% in the full year of 2022. - Research and development expenses in the full year of 2023 decreased to
RMB30.1 million (US$4.2 million ) fromRMB46.0 million in the full year of 2022. As a percentage of total revenues, research and development expenses in the full year of 2023 was 1.8% compared with 2.3% in the full year of 2022. - Net loss on contingent risk assurance liabilities in the full year of 2023 was
RMB25.6 million (US$3.6 million ). - Net recovery on provision for credit losses in the full year of 2023 was
RMB136.5 million (US$19.2 million ). - Impairment loss from goodwill in the full year of 2023 was
RMB 148.7 million (US$20.9 million ).
LOSS FROM OPERATIONS
Loss from operations in the full year of 2023 was
NET LOSS/ INCOME
Net loss in the full year of 2023 was
NET LOSS/ INCOME PER ADS
Basic and diluted net loss per ADS in the full year of 2023 were both
Business Outlook
For the first quarter of 2024, the Company expects total revenues to be between
Share Repurchase Program
Pursuant to the share repurchase program announced on
Conference Call Information
The Company's management will hold a conference call on
International: |
+1-412-902-4272 |
United States Toll Free: |
+1-888-346-8982 |
Mainland China Toll Free: |
4001-201-203 |
|
800-905-945 |
Conference ID: |
|
The replay will be accessible through
International: |
+1-412-317-0088 |
United States Toll Free: |
+1-877-344-7529 |
Access Code: |
8622118 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com/.
About
Definition of Overdue Ratios
The Company defines "M1+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
The Company defines "M3+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.
Use of Non-GAAP Financial Measure
In evaluating the business, the Company considers and uses Non-GAAP adjusted net income (loss), a Non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the Non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income (loss) as net income (loss) excluding share-based compensation expenses. The Company presents the Non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income (loss) enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the Non-GAAP measure facilitates investors' assessment of its operating performance.
Non-GAAP adjusted net income (loss) is not defined under
The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest
Reconciliations of
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
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
Investor Relations Contact
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com
Twitter: https://twitter.com/Cango_Group
Tel: +86 10 6508 0677
Email: ir@cangoonline.com
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As of December 31, 2022 |
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As of |
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RMB |
|
RMB |
US$ |
|
|
|
|
|
|
|
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ASSETS: |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
378,917,318 |
|
1,020,604,191 |
143,749,094 |
Restricted cash - current - bank deposits held for short-term |
|
|
|
|
|
|
|
investments |
|
|
|
- |
|
1,670,006,785 |
235,215,536 |
Restricted cash - current - others |
|
|
|
152,688,510 |
|
14,334,937 |
2,019,034 |
Short-term investments |
|
|
|
1,941,432,848 |
|
635,070,394 |
89,447,794 |
Accounts receivable, net |
|
|
|
266,836,951 |
|
64,791,709 |
9,125,721 |
Finance lease receivables - current, net |
|
|
|
799,438,656 |
|
200,459,435 |
28,234,121 |
Financing receivables, net |
|
|
|
73,818,025 |
|
29,522,035 |
4,158,092 |
Short-term contract asset |
|
|
|
500,389,654 |
|
170,623,200 |
24,031,775 |
Prepayments and other current assets |
|
|
|
1,356,822,028 |
|
78,606,808 |
11,071,537 |
Total current assets |
|
|
|
5,470,343,990 |
|
3,884,019,494 |
547,052,704 |
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Non-current assets: |
|
|
|
|
|
|
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Restricted cash - non-current |
|
|
|
750,877,306 |
|
583,380,417 |
82,167,413 |
|
|
|
|
148,657,971 |
|
- |
- |
Property and equipment, net |
|
|
|
14,689,988 |
|
8,239,037 |
1,160,444 |
Intangible assets |
|
|
|
48,317,878 |
|
48,373,192 |
6,813,222 |
Long-term contract asset |
|
|
|
173,457,178 |
|
36,310,769 |
5,114,265 |
Deferred tax assets |
|
|
|
62,497,781 |
|
- |
- |
Finance lease receivables - non-current, net |
|
|
|
260,049,967 |
|
36,426,617 |
5,130,582 |
Operating lease right-of-use assets |
|
|
|
80,726,757 |
|
47,154,944 |
6,641,635 |
Other non-current assets |
|
|
|
6,633,517 |
|
4,705,544 |
662,762 |
Total non-current assets |
|
|
|
1,545,908,343 |
|
764,590,520 |
107,690,323 |
TOTAL ASSETS |
|
|
|
7,016,252,333 |
|
4,648,610,014 |
654,743,027 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
|
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Short-term debts |
|
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|
349,299,134 |
|
39,071,500 |
5,503,106 |
Long-term debts—current |
|
|
|
565,143,340 |
|
926,237 |
130,458 |
Accrued expenses and other current liabilities |
|
|
|
890,836,699 |
|
206,877,626 |
29,138,104 |
Deferred guarantee income |
|
|
|
- |
|
86,218,888 |
12,143,676 |
Contingent risk assurance liabilities |
|
|
|
- |
|
125,140,991 |
17,625,740 |
Risk assurance liabilities |
|
|
|
402,303,421 |
|
- |
- |
Income tax payable |
|
|
|
313,406,680 |
|
311,904,279 |
43,930,799 |
Short-term lease liabilities |
|
|
|
9,913,073 |
|
7,603,380 |
1,070,914 |
Total current liabilities |
|
|
|
2,530,902,347 |
|
777,742,901 |
109,542,797 |
|
|
|
|
|
|
|
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Non-current liabilities: |
|
|
|
|
|
|
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Long-term debts |
|
|
|
75,869,353 |
|
712,023 |
100,286 |
Deferred tax liability |
|
|
|
10,724,133 |
|
10,724,133 |
1,510,463 |
Long-term operating lease liabilities |
|
|
|
76,533,208 |
|
42,228,435 |
5,947,751 |
Other non-current liabilities |
|
|
|
314,287 |
|
226,035 |
31,836 |
Total non-current liabilities |
|
|
|
163,440,981 |
|
53,890,626 |
7,590,336 |
Total liabilities |
|
|
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2,694,343,328 |
|
831,633,527 |
117,133,133 |
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Shareholders' equity |
|
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|
|
|
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Ordinary shares |
|
|
|
204,260 |
|
204,260 |
28,769 |
|
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|
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(559,005,216) |
|
(773,130,748) |
(108,893,188) |
Additional paid-in capital |
|
|
|
4,805,240,472 |
|
4,813,679,585 |
677,992,589 |
Accumulated other comprehensive income |
|
|
|
66,359,902 |
|
111,849,166 |
15,753,626 |
Retained earnings |
|
|
|
9,109,587 |
|
(335,625,776) |
(47,271,902) |
Total |
|
|
|
4,321,909,005 |
|
3,816,976,487 |
537,609,894 |
Total shareholders' equity |
|
|
|
4,321,909,005 |
|
3,816,976,487 |
537,609,894 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
7,016,252,333 |
|
4,648,610,014 |
654,743,027 |
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For the three months ended |
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For the years ended |
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RMB |
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RMB |
US$ |
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RMB |
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RMB |
US$ |
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Revenues |
|
|
|
487,118,297 |
|
130,237,183 |
18,343,524 |
|
1,980,453,461 |
|
1,701,918,741 |
239,710,241 |
Loan facilitation income and other related income |
|
|
|
11,220,332 |
|
(7,656,161) |
(1,078,348) |
|
146,428,758 |
|
19,962,063 |
2,811,598 |
Guarantee income |
|
|
|
- |
|
42,110,239 |
5,931,103 |
|
- |
|
212,121,156 |
29,876,640 |
Leasing income |
|
|
|
27,971,392 |
|
7,272,645 |
1,024,331 |
|
155,522,046 |
|
57,430,571 |
8,088,927 |
After-market services income |
|
|
|
15,752,500 |
|
24,023,492 |
3,383,638 |
|
71,456,769 |
|
65,388,466 |
9,209,773 |
Automobile trading income |
|
|
|
431,145,715 |
|
53,203,912 |
7,493,614 |
|
1,596,306,698 |
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1,309,633,693 |
184,458,048 |
Others |
|
|
|
1,028,358 |
|
11,283,056 |
1,589,186 |
|
10,739,190 |
|
37,382,792 |
5,265,255 |
Operating cost and expenses: |
|
|
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|
|
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|
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|
|
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Cost of revenue |
|
|
|
481,743,466 |
|
110,877,885 |
15,616,823 |
|
1,830,089,773 |
|
1,511,863,115 |
212,941,466 |
Sales and marketing |
|
|
|
19,247,674 |
|
4,375,457 |
616,270 |
|
132,779,488 |
|
38,921,589 |
5,481,991 |
General and administrative |
|
|
|
66,178,999 |
|
45,646,503 |
6,429,175 |
|
299,545,363 |
|
156,966,463 |
22,108,264 |
Research and development |
|
|
|
8,442,599 |
|
7,272,969 |
1,024,376 |
|
45,958,842 |
|
30,114,175 |
4,241,493 |
Net loss on contingent risk assurance liabilities |
|
|
|
- |
|
22,156,496 |
3,120,677 |
|
- |
|
25,631,610 |
3,610,137 |
Net loss on risk assurance liabilities |
|
|
|
62,845,054 |
|
- |
- |
|
299,863,403 |
|
- |
- |
Provision (net recovery on provision) for credit losses |
|
|
|
60,245,674 |
|
(31,224,666) |
(4,397,902) |
|
319,359,716 |
|
(136,485,155) |
(19,223,532) |
Impairment loss from goodwill |
|
|
|
- |
|
- |
- |
|
- |
|
148,657,971 |
20,938,037 |
Total operation cost and expense |
|
|
|
698,703,466 |
|
159,104,644 |
22,409,419 |
|
2,927,596,585 |
|
1,775,669,768 |
250,097,856 |
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|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
|
(211,585,169) |
|
(28,867,461) |
(4,065,895) |
|
(947,143,124) |
|
(73,751,027) |
(10,387,615) |
Interest income, net |
|
|
|
16,611,787 |
|
20,183,627 |
2,842,804 |
|
43,732,652 |
|
79,164,929 |
11,150,147 |
Net gain (loss) on equity securities |
|
|
|
3,493,202 |
|
8,653,285 |
1,218,790 |
|
(9,810,585) |
|
24,093,019 |
3,393,431 |
Interest expense |
|
|
|
(5,116,136) |
|
- |
- |
|
(16,809,263) |
|
(4,099,783) |
(577,442) |
Foreign exchange (loss) gain, net |
|
|
|
(1,400,017) |
|
(1,247,296) |
(175,678) |
|
5,918,231 |
|
1,099,229 |
154,823 |
Other income, net |
|
|
|
10,753,821 |
|
1,297,133 |
182,697 |
|
52,066,718 |
|
30,701,851 |
4,324,265 |
Other expenses |
|
|
|
(677,955) |
|
(1,256,297) |
(176,946) |
|
(2,465,972) |
|
(1,624,789) |
(228,847) |
Net (loss) income before income taxes |
|
|
|
(187,920,467) |
|
(1,237,009) |
(174,228) |
|
(874,511,343) |
|
55,583,429 |
7,828,762 |
Income tax expenses |
|
|
|
(371,015,445) |
|
(102,541,409) |
(14,442,655) |
|
(236,696,540) |
|
(93,456,703) |
(13,163,101) |
Net loss |
|
|
|
(558,935,912) |
|
(103,778,418) |
(14,616,883) |
|
(1,111,207,883) |
|
(37,873,274) |
(5,334,339) |
Net loss income attributable to |
|
|
|
(558,935,912) |
|
(103,778,418) |
(14,616,883) |
|
(1,111,207,883) |
|
(37,873,274) |
(5,334,339) |
Loss per ADS attributable to ordinary shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
(4.13) |
|
(0.95) |
(0.13) |
|
(8.11) |
|
(0.31) |
(0.04) |
Diluted |
|
|
|
(4.13) |
|
(0.95) |
(0.13) |
|
(8.11) |
|
(0.31) |
(0.04) |
Weighted average ADS used to compute earnings |
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per ADS attributable to ordinary shareholders: |
|
|
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|
|
|
|
|
|
|
|
|
Basic |
|
|
|
135,295,444 |
|
109,101,164 |
109,101,164 |
|
137,042,445 |
|
121,524,393 |
121,524,393 |
Diluted |
|
|
|
135,295,444 |
|
109,101,164 |
109,101,164 |
|
137,042,445 |
|
121,524,393 |
121,524,393 |
|
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|
|
|
|
|
|
|
|
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Other comprehensive (loss) income, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
|
(44,517,473) |
|
(34,347,812) |
(4,837,788) |
|
253,877,012 |
|
45,489,264 |
6,407,029 |
|
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|
|
|
|
|
|
|
|
|
|
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Total comprehensive (loss) income |
|
|
|
(603,453,385) |
|
(138,126,230) |
(19,454,671) |
|
(857,330,871) |
|
7,615,990 |
1,072,690 |
Total comprehensive (loss) income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(603,453,385) |
|
(138,126,230) |
(19,454,671) |
|
(857,330,871) |
|
7,615,990 |
1,072,690 |
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For the three months ended |
|
For the years ended |
||||||
|
|
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
|
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(558,935,912) |
|
(103,778,418) |
(14,616,883) |
|
(1,111,207,883) |
|
(37,873,274) |
(5,334,339) |
|
|
|
|
|
|
|
|
|
|
|
Add: Share-based compensation expenses |
|
19,076,738 |
|
4,592,933 |
646,901 |
|
158,522,520 |
|
38,490,513 |
5,421,275 |
Cost of revenue |
|
841,248 |
|
266,712 |
37,566 |
|
4,160,056 |
|
2,187,338 |
308,080 |
Sales and marketing |
|
3,551,173 |
|
968,854 |
136,460 |
|
14,691,410 |
|
7,715,989 |
1,086,774 |
General and administrative |
|
13,780,228 |
|
3,120,759 |
439,550 |
|
135,888,877 |
|
26,831,755 |
3,779,174 |
Research and development |
|
904,089 |
|
236,608 |
33,325 |
|
3,782,177 |
|
1,755,431 |
247,247 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net (loss) income |
|
(539,859,174) |
|
(99,185,485) |
(13,969,982) |
|
(952,685,363) |
|
617,239 |
86,936 |
Net (loss) income attributable to |
|
(539,859,174) |
|
(99,185,485) |
(13,969,982) |
|
(952,685,363) |
|
617,239 |
86,936 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net (loss) income per ADS-basic |
|
(3.99) |
|
(0.91) |
(0.13) |
|
(6.95) |
|
0.01 |
0.00 |
Non-GAAP adjusted net (loss) income per ADS-diluted |
|
(3.99) |
|
(0.91) |
(0.13) |
|
(6.95) |
|
0.00 |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average ADS outstanding—basic |
|
135,295,444 |
|
109,101,164 |
109,101,164 |
|
137,042,445 |
|
121,524,393 |
121,524,393 |
Weighted average ADS outstanding—diluted |
|
135,295,444 |
|
109,101,164 |
109,101,164 |
|
137,042,445 |
|
126,940,244 |
126,940,244 |
View original content:https://www.prnewswire.com/news-releases/cango-inc-reports-fourth-quarter-and-full-year-2023-unaudited-financial-results-302085219.html
SOURCE