Cango Inc. Reports First Quarter 2024 Unaudited Financial Results
First Quarter 2024 Financial and Operational Highlights
- Total revenues were
RMB64.4 million (US$8.9 million ), compared withRMB542.6 million in the same period of 2023. Income from operations wasRMB74.2 million (US$10.3 million ) for the three months endedMarch 31, 2024 , an increase of 43.1% fromRMB51.8 million in the same period last year. Net income wasRMB90.0 million (US$12.5 million ) for the three months endedMarch 31, 2024 , an increase of 14.3% fromRMB78.8 million in the same period last year. - The total outstanding balance of financing transactions the Company facilitated was
RMB7.6 billion (US$1.1 billion ) as ofMarch 31, 2024 . M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 2.87% and 1.51%, respectively, as ofMarch 31, 2024 , compared with 2.66% and 1.37%, respectively, as ofDecember 31, 2023 . - Total balance of cash and cash equivalents, short-term investments and restricted cash - current - bank deposits held for short-term investments increased by
RMB152.6 million (US$21.1 million ) compared to that as ofDecember 31, 2023 . The liquidity improvement was primarily driven by the positive operating cash flow generated by decreased working capital for car trading transactions, collections of financing receivables, and loan facilitation service fees.
Mr.
"In the first quarter, we completed the integration of 'Cango U-car' and further strengthened the platform's competitive advantages by ensuring a consistent supply of high-quality vehicles, optimizing dealer service experiences and supply chain management.
"We also made significant strides in cross-border used car transactions during the first quarter. In March, we officially launched a cross-border information platform specifically for used car transactions. This platform brings insights into the Chinese used car market to multilingual global users, filling a gap in domestic cross-border used car transaction information services. Our ultimate goal is to build this platform into the preferred gateway for Chinese used cars to enter the international market.
"Looking ahead, we will remain committed to exploring new business models and expanding growth opportunities. We firmly believe that through continuous innovation and meticulous management,
Mr.
First Quarter 2024 Financial Results
REVENUES
Total revenues in the first quarter of 2024 were
OPERATING COST AND EXPENSES
- Cost of revenue in the first quarter of 2024 decreased to
RMB29.1 million (US$4.0 million ) fromRMB480.5 million in the same period of 2023. As a percentage of total revenues, cost of revenue in the first quarter of 2024 was 45.1% compared with 88.6% in the same period of 2023. - Sales and marketing expenses in the first quarter of 2024 decreased to
RMB3.5 million (US$0.5 million ) fromRMB12.5 million in the same period of 2023. - General and administrative expenses in the first quarter of 2024 decreased to
RMB37.9 million (US$5.3 million ) fromRMB39.8 million in the same period of 2023. - Research and development expenses in the first quarter of 2024 decreased to
RMB1.1 million (US$0.2 million ) fromRMB8.1 million in the same period of 2023. - Net gain on contingent risk assurance liabilities in the first quarter of 2024 was
RMB15.0 million (US$2.1 million ) compared withRMB1.6 million in the same period of 2023. The gain was recognized due to the release of obligations from the contingent aspect of the risk assurance liabilities. - Net recovery on provision for credit losses in the first quarter of 2024 was
RMB66.3 million (US$9.2 million ). The recovery was primarily due to the positive impact from the collections of financing receivables.
INCOME FROM OPERATIONS
Income from operations in the first quarter of 2024 was
NET INCOME
Net income in the first quarter of 2024 was
NET INCOME PER ADS
Basic and diluted net income per American Depositary Share (the "ADS") in the first quarter of 2024 were
BALANCE SHEET
- As of
March 31, 2024 , the Company had cash and cash equivalents ofRMB1.2 billion (US$160.1 million ), compared withRMB1.0 billion as ofDecember 31, 2023 . - As of
March 31, 2024 , the Company had short-term investments ofRMB2.3 billion (US$321.6 million ), compared withRMB635.1 million as ofDecember 31, 2023 . The increase was mainly due to the conversion from restricted cash – bank deposits held for short-term investments ofRMB1,670.0 million onDecember 31, 2023 after the Company completed its subscription process.
Business Outlook
For the second 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 |
4001-201-203 |
|
800-905-945 |
Conference ID: |
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The replay will be accessible through
International: |
+1-412-317-0088 |
United States Toll Free: |
+1-877-344-7529 |
Access Code: |
8381005 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com/.
About
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
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.
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 |
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As of |
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RMB |
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RMB |
US$ |
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ASSETS: |
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Current assets: |
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|
|
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Cash and cash equivalents |
|
|
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1,020,604,191 |
|
1,155,986,847 |
160,102,329 |
Restricted cash - current - bank deposits held for short-term investments |
|
|
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1,670,006,785 |
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- |
- |
Restricted cash - current - others |
|
|
|
14,334,937 |
|
13,744,123 |
1,903,539 |
Short-term investments |
|
|
|
635,070,394 |
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2,322,320,101 |
321,637,619 |
Accounts receivable, net |
|
|
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64,791,709 |
|
106,148,788 |
14,701,437 |
Finance lease receivables - current, net |
|
|
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200,459,435 |
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133,027,146 |
18,424,047 |
Financing receivables, net |
|
|
|
29,522,035 |
|
20,366,970 |
2,820,793 |
Short-term contract asset |
|
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170,623,200 |
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80,595,646 |
11,162,368 |
Prepayments and other current assets |
|
|
|
78,606,808 |
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79,424,682 |
11,000,191 |
Total current assets |
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3,884,019,494 |
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3,911,614,303 |
541,752,323 |
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Non-current assets: |
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Restricted cash - non-current |
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583,380,417 |
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538,159,571 |
74,534,240 |
Property and equipment, net |
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8,239,037 |
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7,635,993 |
1,057,573 |
Intangible assets |
|
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48,373,192 |
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48,107,157 |
6,662,764 |
Long-term contract asset |
|
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36,310,769 |
|
564,583 |
78,194 |
Finance lease receivables - non-current, net |
|
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36,426,617 |
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22,252,619 |
3,081,952 |
Operating lease right-of-use assets |
|
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47,154,944 |
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47,531,988 |
6,583,104 |
Other non-current assets |
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4,705,544 |
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4,491,801 |
622,107 |
Total non-current assets |
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764,590,520 |
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668,743,712 |
92,619,934 |
TOTAL ASSETS |
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4,648,610,014 |
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4,580,358,015 |
634,372,257 |
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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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39,071,500 |
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26,650,000 |
3,690,982 |
Long-term debts—current |
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926,237 |
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888,415 |
123,044 |
Accrued expenses and other current liabilities |
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206,877,626 |
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173,238,481 |
23,993,251 |
Deferred guarantee income |
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86,218,888 |
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55,959,307 |
7,750,275 |
Contingent risk assurance liabilities |
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125,140,991 |
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81,427,530 |
11,277,583 |
Income tax payable |
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311,904,279 |
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323,337,170 |
44,781,681 |
Short-term lease liabilities |
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7,603,380 |
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8,654,701 |
1,198,662 |
Total current liabilities |
|
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777,742,901 |
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670,155,604 |
92,815,478 |
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Non-current liabilities: |
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Long-term debts |
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712,023 |
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665,401 |
92,157 |
Deferred tax liability |
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10,724,133 |
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10,724,133 |
1,485,275 |
Long-term operating lease liabilities |
|
|
|
42,228,435 |
|
42,027,702 |
5,820,769 |
Other non-current liabilities |
|
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|
226,035 |
|
143,886 |
19,928 |
Total non-current liabilities |
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53,890,626 |
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53,561,122 |
7,418,129 |
Total liabilities |
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831,633,527 |
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723,716,726 |
100,233,607 |
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Shareholders' equity |
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Ordinary shares |
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204,260 |
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204,260 |
28,290 |
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(773,130,748) |
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(844,938,545) |
(117,022,637) |
Additional paid-in capital |
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4,813,679,585 |
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4,814,230,470 |
666,763,219 |
Accumulated other comprehensive income |
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111,849,166 |
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132,744,094 |
18,384,845 |
Retained earnings |
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(335,625,776) |
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(245,598,990) |
(34,015,067) |
Total |
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3,816,976,487 |
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3,856,641,289 |
534,138,650 |
Total shareholders' equity |
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3,816,976,487 |
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3,856,641,289 |
534,138,650 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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|
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4,648,610,014 |
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4,580,358,015 |
634,372,257 |
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Three months ended March 31 |
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2023 |
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2024 |
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RMB |
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RMB |
US$ |
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Revenues |
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542,613,363 |
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64,422,494 |
8,922,412 |
Loan facilitation income and other related income |
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2,315,400 |
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13,821,022 |
1,914,189 |
Guarantee income |
|
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64,128,746 |
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30,259,581 |
4,190,904 |
Leasing income |
|
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22,213,681 |
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4,939,712 |
684,142 |
After-market services income |
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16,719,476 |
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11,637,788 |
1,611,815 |
Automobile trading income |
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429,849,643 |
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3,445,040 |
477,133 |
Others |
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7,386,417 |
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319,351 |
44,229 |
Operating cost and expenses: |
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Cost of revenue |
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480,517,980 |
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29,058,868 |
4,024,607 |
Sales and marketing |
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12,538,562 |
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3,548,273 |
491,430 |
General and administrative |
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39,802,530 |
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37,923,531 |
5,252,348 |
Research and development |
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8,102,363 |
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1,098,105 |
152,086 |
Net gain on contingent risk assurance liabilities |
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(1,622,556) |
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(15,018,246) |
(2,080,003) |
Net recovery on provision for credit losses |
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(48,554,100) |
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(66,339,084) |
(9,187,857) |
Total operation cost and expense |
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490,784,779 |
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(9,728,553) |
(1,347,389) |
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Income from operations |
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51,828,584 |
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74,151,047 |
10,269,801 |
Interest income, net |
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18,780,880 |
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16,503,965 |
2,285,773 |
Net gain on equity securities |
|
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3,732,355 |
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10,984,524 |
1,521,339 |
Interest expense |
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(2,294,085) |
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- |
- |
Foreign exchange (loss) gain, net |
|
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(984,307) |
|
131,689 |
18,239 |
Other income, net |
|
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|
4,459,897 |
|
832,551 |
115,307 |
Other expenses |
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(130,885) |
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(535,390) |
(74,151) |
Net income before income taxes |
|
|
|
75,392,439 |
|
102,068,386 |
14,136,308 |
Income tax benefit (expense) |
|
|
|
3,372,638 |
|
(12,041,600) |
(1,667,742) |
Net income |
|
|
|
78,765,077 |
|
90,026,786 |
12,468,566 |
Net income attributable to |
|
|
|
78,765,077 |
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90,026,786 |
12,468,566 |
Earnings per ADS attributable to ordinary shareholders: |
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Basic |
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0.58 |
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0.85 |
0.12 |
Diluted |
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0.56 |
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0.80 |
0.11 |
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Basic |
|
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134,769,131 |
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105,521,018 |
105,521,018 |
Diluted |
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140,231,084 |
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112,786,810 |
112,786,810 |
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Other comprehensive (loss) income, net of tax |
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Foreign currency translation adjustment |
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(6,020,579) |
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20,894,928 |
2,893,914 |
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Total comprehensive income |
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72,744,498 |
|
110,921,714 |
15,362,480 |
Total comprehensive income attributable to |
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72,744,498 |
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110,921,714 |
15,362,480 |
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Three months ended March 31 |
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2023 |
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2024 |
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(Unaudited) |
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(Unaudited) |
(Unaudited) |
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RMB |
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RMB |
US$ |
|
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Net income |
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78,765,077 |
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90,026,786 |
12,468,566 |
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Add: Share-based compensation expenses |
|
14,059,098 |
|
5,717,422 |
791,854 |
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Cost of revenue |
|
747,416 |
|
254,391 |
35,233 |
|
Sales and marketing |
|
2,793,396 |
|
1,046,659 |
144,961 |
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General and administrative |
|
9,907,268 |
|
4,416,372 |
611,660 |
|
Research and development |
|
611,018 |
|
- |
- |
|
|
|
|
|
|
|
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Non-GAAP adjusted net income |
|
92,824,175 |
|
95,744,208 |
13,260,420 |
|
Net income attributable to |
|
92,824,175 |
|
95,744,208 |
13,260,420 |
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|
|
|
|
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Non-GAAP adjusted net income per ADS-basic |
|
0.69 |
|
0.91 |
0.13 |
|
Non-GAAP adjusted net income per ADS-diluted |
|
0.66 |
|
0.85 |
0.12 |
|
|
|
|
|
|
|
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Weighted average ADS outstanding—basic |
|
134,769,131 |
|
105,521,018 |
105,521,018 |
|
Weighted average ADS outstanding—diluted |
|
140,231,084 |
|
112,786,810 |
112,786,810 |
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