Latest news with #Cango
Cision Canada
29-05-2025
- Business
- Cision Canada
Cango Inc. Completes PRC Business Sale, Strengthens Board to Drive Global Bitcoin Focus
SHANGHAI, May 29, 2025 /CNW/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, has finalized the divestment of all its business in the PRC (the "PRC Business"), a strategic transaction valued at approximately US$351.94 million in cash with Ursalpha Digital Limited. The sale, which closed on May 27, 2025, decisively repositions Cango to concentrate its full financial and operational capabilities on accelerating its leadership in the global Bitcoin mining industry. This pivotal move unlocks significant resources and facilitates Cango's rapid expansion of its Bitcoin mining across key strategic regions, including North America, the Middle East, South America, and East Africa, leveraging emerging opportunities in the digital finance sector. This transaction also represents a transformative step for Cango, cementing its strategic shift to a focused leader in global Bitcoin mining. The Company is now streamlined and better capitalized, positioning it to aggressively pursue its growth objectives and enhance shareholder value. As part of this strategic realignment, the Company has further restructured its Board of Directors with the appointment of two new members, effective May 27, 2025, bringing deep expertise in Fintech, AI, Web 3.0, and global capital markets to steer Cango's Bitcoin-focused future. Looking ahead, this enhanced board composition reinforces Cango's commitment to innovation and strengthens its position for leadership in the rapidly evolving digital finance landscape. The initial agreements for the sale of PRC Business were announced on April 3, 2025, with shareholder approval obtained on May 16, 2025. Following the divestment, the Company will apply to the China Securities Regulatory Commission ("CSRC") to terminate its "China Concept Stock" status. About Cango Inc. Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through making it easier for global customers to access high-quality vehicle inventory from China. For more information, please visit: Media Contact SOURCE Cango Inc.
Cision Canada
19-05-2025
- Business
- Cision Canada
Cango Inc. Reports Q1 2025 Bitcoin Mining Revenue Meets Apollo Insights' Expectations, Firm Highlights Solid Operational Metrics and Growth Potential
SHANGHAI, May 19, 2025 /CNW/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, today announced the release of Apollo Insights' first quarter review of the Company's performance, which highlighted that Cango's Q1 2025 Bitcoin mining revenue was in line with their expectations and noted the Company's solid operational metrics and potential for future growth. The Apollo Insights review, titled "Q1 BTC Mining Revenue In-Line, Deployed Hash Rate Poised For Growth," reported Cango's Q1 2025 Bitcoin mining revenue at RMB 1,046 million, in line with the firm's estimates. While the report noted a Q1 2025 adjusted EBITDA loss, attributed primarily to Bitcoin price volatility and expenses from the legacy auto business, Apollo Insights maintained a positive outlook for future profitability driven by operating leverage in the Bitcoin mining segment. The firm increased its full-year 2025 revenue estimate to RMB 5,173 million, reflecting higher Bitcoin price assumptions partially offset by increased network difficulty. The review highlighted Cango's solid operational performance in Q1 2025, with deployed hash rate reaching 32 EH/s by quarter-end. In March 2025, Cango achieved industry-leading productivity of 16.6 Bitcoin mined per EH/s. The Company mined a total of 1,541 Bitcoins in the quarter and held 2,475 Bitcoins as of March 31, 2025, with no Bitcoins sold. Apollo Insights estimates significant hash rate growth ahead, projecting Cango to exit fiscal 2025E and fiscal 2026E with deployed hash rates of 42 EH/s (+10 EH/s year-over-year) and 54 EH/s (+12 EH/s year-over-year), respectively. This growth trajectory includes the planned acquisition of 18 EH/s expected to be completed by the end of July 2025. Looking ahead, as a future-ready company with strong operational flexibility, the report outlines that Cango will strive to secure more favorable mining contracts, explore self-operation of its fleet of mining equipment, consider investing in low-cost, clean energy projects in the Middle East and Australia, offer various digital financial services, and develop the "asset light" used car platform. About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: Media Contact SOURCE Cango Inc.
Associated Press
19-05-2025
- Business
- Associated Press
Cango Inc. Reports Q1 2025 Bitcoin Mining Revenue Meets Apollo Insights' Expectations, Firm Highlights Solid Operational Metrics and Growth Potential
SHANGHAI, May 19, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ('Cango' or the 'Company'), a rapidly expanding leader in Bitcoin mining, today announced the release of Apollo Insights' first quarter review of the Company's performance, which highlighted that Cango's Q1 2025 Bitcoin mining revenue was in line with their expectations and noted the Company's solid operational metrics and potential for future growth. The Apollo Insights review, titled 'Q1 BTC Mining Revenue In-Line, Deployed Hash Rate Poised For Growth,' reported Cango's Q1 2025 Bitcoin mining revenue at RMB 1,046 million, in line with the firm's estimates. While the report noted a Q1 2025 adjusted EBITDA loss, attributed primarily to Bitcoin price volatility and expenses from the legacy auto business, Apollo Insights maintained a positive outlook for future profitability driven by operating leverage in the Bitcoin mining segment. The firm increased its full-year 2025 revenue estimate to RMB 5,173 million, reflecting higher Bitcoin price assumptions partially offset by increased network difficulty. The review highlighted Cango's solid operational performance in Q1 2025, with deployed hash rate reaching 32 EH/s by quarter-end. In March 2025, Cango achieved industry-leading productivity of 16.6 Bitcoin mined per EH/s. The Company mined a total of 1,541 Bitcoins in the quarter and held 2,475 Bitcoins as of March 31, 2025, with no Bitcoins sold. Apollo Insights estimates significant hash rate growth ahead, projecting Cango to exit fiscal 2025E and fiscal 2026E with deployed hash rates of 42 EH/s (+10 EH/s year-over-year) and 54 EH/s (+12 EH/s year-over-year), respectively. This growth trajectory includes the planned acquisition of 18 EH/s expected to be completed by the end of July 2025. Looking ahead, as a future-ready company with strong operational flexibility, the report outlines that Cango will strive to secure more favorable mining contracts, explore self-operation of its fleet of mining equipment, consider investing in low-cost, clean energy projects in the Middle East and Australia, offer various digital financial services, and develop the 'asset light' used car platform. About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: Media Contact Juliet Ye Cango Inc. Tel: +86 21 3183 5088 ext.5581 Email: [email protected] View original content to download multimedia: SOURCE Cango Inc.
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 Cango Inc Earnings Call
Lin Jiayuan; Chief Executive Officer, Co-Founder, Director; Cango Inc Zhang Yongyi; Chief Financial Officer, Director; Cango Inc Emerson Zhao; Analyst; Goldman Sachs Michael Donovan; Analyst; HC Wainwright Operator Good morning and evening, everyone. Welcome to Cango Inc.'s First Quarter 2025 Earnings Conference Call. (Operator Instructions) This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the safe harbor statement in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements. With that said, I am now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir. Lin Jiayuan Hi, everyone, and welcome to Cango's first quarter 2025 earnings call. In the first quarter of 2025, Bitcoin further solidified its dominance despite significant volatility in the cryptocurrency market. Amid global economic uncertainty, Bitcoin demonstrated strong resilience and stability as a safe haven asset. On the policy front, the Trump administration's supportive stance towards the crypto market has undoubtedly fostered a more favorable regulatory environment. The establishment of a strategic Bitcoin reserve and pro-digital currency appointments are expected to provide clearer direction and more stable expectations for the industry's future development. Cango entered the Bitcoin mining industry in November 2024. Over the past few months of exploration and operation, Cango has not only achieved business growth but also unlocked new development opportunities. In the first quarter of 2025, Cango reported total revenue of USD145 million with USD144 million contributed by our Bitcoin mining operations. Gross profit for the quarter reached USD13.61 million. Operating loss stood at $21.42 million, primarily due to decline in Bitcoin prices towards the end of March, which led to a decrease in the fair value of the company's Bitcoin holdings. As of the end of the quarter, Cango maintained a strong cash position with total cash, cash equivalents and short-term investments amounting to USD347 million, providing solid support for future business expansion. While actively expanding our Bitcoin business, we continue to reduce our total outstanding loan balance and significantly improve loan quality. As of March 31, 2025, our total outstanding loan balance was approximately RMB2.6 billion with M1+ and M3+ ratios of 2.86% and 1.59%, respectively. In addition, our credit risk exposure not covered by full bad debt allowance or full risk assurance liabilities further declined to RMB760 million, down 30% from RMB1.08 billion as of December 31, 2024. Till now, we hold a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate in Q1. Our mining machines are deployed across North America, South America, the Middle East and Africa, a globally diversified setup that enables us to optimize resource allocation. Nearly 90% of our currently operational miners are water cooled S19 XP models. In addition, the delivery of an additional 18 exahashes per second of computing power is progressing as planned and is expected to be completed by July 31. Once finalized, our total hash rate capacity will reach 50. Since entering the Bitcoin mining industry, we have remained focused on improving our operational metrics. In the first quarter, we mined a total of 1,541 Bitcoin. As of the end of April, our total Bitcoin holdings reached 2,944.8 coins, ranking 14th globally among publicly listed companies and fifth among listed mining firms. Throughout Q1, our average monthly effective hash rate consistently exceeded 30 exahashes per second with a coin yield of 16.6 bitcoins per Eh/S, placing us among the top 3 publicly listed mining companies and our efficiency rate is as high as 94%. And in addition, we, in terms of energy efficiency, our average power efficiency for the quarter was 21.6 joules per tera hash with efficiency of 21.5 for March. As we move into 2025, we remain firmly committed to deepening our focus on the Bitcoin mining business. We have a strong confidence in the stability of Bitcoin's supply and its long-term value appreciation potential. As such, we will adopt a Mine and Hold strategy, prioritizing both self-mining and long-term holding. Looking ahead, we will focus on gradually integrating and optimizing our existing computing power resources to maximize efficiency. At the same time, we will actively pursue M&A opportunities, seeking high-quality targets to further scale up our operations. We believe that greater scale will unlock broader growth opportunities, attract top talent and enhance both our market competitiveness and industry recognition. On our traditional automotive business, we remain focused on lean asset-light operations for our used car export platform, AutoCango. Since its launch, the platform has attracted over 2.37 million visits and more than 290,000 registered users. Today, AutoCango has more than 480,000 used car listings covering over 68,000 unique models. AutoCango aims to connect China's used car market with overseas buyers, making it easier for international customers to access high-quality vehicle inventory from China. Looking ahead, Cango will continue to strengthen its global presence and enhance AutoCango's platform capabilities to deliver an even better experience for our users. Now I'd like to hand over the call to our CFO, Mr. Yongyi Zhang, to share our financial highlights for the first quarter of 2025. Zhang Yongyi Thanks, Jiayuan. Hello, everyone, and welcome to our first quarter 2025 earnings call. Before I started to review our financials, please note that unless otherwise stated, all numbers are in RMBterms and all percentage comparisons are on a year-over-year basis. Total revenue in the first quarter of 2025 were RMB1.1 billion compared with RMB64.4 million in the same period 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024. Revenue from Bitcoin mining business in the first quarter of 2025 was RMB1 billion with a total of 1,541 Bitcoin mined in the first quarter of 2025. The average cost to mine Bitcoin, excluding depreciation of mining machine, was USD70,602.1 per coin in the quarter. Revenue from automotive trading-related income in the first quarter of 2025 was RMB7.6 million compared with RMB64.4 million in the same period 2024. Now let's move on to our cost and expenses during the quarter. Cost of revenue in the first quarter of 2025 increased to RMB955.1 million from RMB29.1 million in the same period 2024. The year-over-year increase was primarily driven by the cost of Bitcoin mining business. Sales and marketing expenses in the first quarter decreased to RMB0.4 million from RMB3.5 million in the same period of 2024. General and administrative expenses in the first quarter increased to RMB92.5 million from RMB37.9 million in the same period 2024. Research and development expenses in the first quarter decreased to RMB0.3 million from RMB1.1 million in the same period 2024. Net gain on contingent risk assurance liability in the first quarter of 2025 was RMB5.3 million compared with RMB15 million in the same period 2024. Net recovery on provision for credit losses in the first quarter of 2025 was RMB28.7 million compared with RMB66.3 million in the same period 2024. We recorded RMB155.5 million in loss from operations in the first quarter of 2025 compared with income from operations of RMB74.2 million in the same period 2024. Net loss in the first quarter of 2025 was RMB207.3 million. Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million. Moving on to our balance sheet. As of March 31, 2025, the company had cash and cash equivalents of RMB2.5 billion compared with RMB1.3 billion as of December 31, 2024. As of March 31, 2025, the company had short-term investment of RMB5.2 million compared with RMB1.2 billion as of December 31, 2024. Looking ahead to the rest of 2025, we are on track to grow our deployed hash rate to approximately 50 Eh before the end of July. This concludes our prepared remarks. Operator, we are now ready to take questions. Operator (Operator Instructions) Emerson Zhao, Goldman Sachs. Emerson Zhao I'm Emerson from Goldman Sachs. I have 2 questions. The first question is what is your view on the trends in the cryptocurrency market so far? And the second question is, how is the company going to respond to increasing challenges brought about by increasing computing power around the world as well as increasing mining difficulty. Zhang Yongyi Thank you, Emerson, for your questions. So the current cryptocurrency market presents both opportunities and challenges. We believe that as technology advances and the market continues to mature, cryptocurrencies will play an increasingly important role. We will closely monitor market developments and flexibly adjust our strategies to better seize emerging opportunities. So on your second question, on the challenges of increasing computing power around the world and increasing mining difficulty. Well, our responses include, firstly, we will continue to optimize the efficiency of our existing mining operations to ensure high productivity. And at the same time, we are working to expedite the delivery of our second batch of computing power totaling 18 exahashes per second and continue to monitor further acquisition opportunities to further enhance our overall production capacity. Operator [Joy Chay], Sinolink Securities. Thank you management for taking my questions. I'm from Sinolink Securities. So I have altogether 3 questions. The first question is I noticed that the metrics and data for the company in April saw quite a big decrease. So could you give us more color on the reasons behind these declines? And the second question is that, do you see more pressure from increasing power costs or electricity cost on the company? And what are the plans that the company have to address this challenge? And my third question is a more general question regarding the future strategy of the company because we have seen quite a lot of changes in the company over the past year. And so could you give us more details on your future strategic direction? Lin Jiayuan Thank you for your questions. On your first question, in April, we mined 470 coins, a 11.3% decrease compared to March, and this was mainly due to the second largest monthly increase in global network hash rate on record as well as an 8% rise in mining difficulty compared to March. Meanwhile, we maintained a high level of mining efficiency with our deployed hash rate remaining steady at 32 exahashes per second. In the first quarter, our average operational hash rate was about 30 and the efficiency was 93.8%, relatively stable compared to the previous quarter. And for your second question, yes, the company is currently experiencing relatively high electricity costs, primarily due to the premium associated with power procurement under the hosted operation model. However, it is important to note that this model allows us to avoid a heavy capital investment and large staffing costs required for building and operating our own mining facilities. As a result, we have significantly reduced the capital expenditures and operating costs on the infrastructure and operations front. To continuously refine our cost structure, the company has launched a global energy strategy. On one hand, we are conducting detailed cost analysis of existing hosting agreements to explore potential room for renegotiation. On the other hand, we have formed a dedicated team to carry out on-site researchers in energy-rich regions such as the Middle East and Australia with a focus on evaluating the feasibility of partnerships in low-cost clean energy projects, including solar and natural gas. Through a diversified energy supply system, we aim to reduce costs and enhance operational efficiency. And on your third question, our future strategic direction, we will remain focused on optimizing our mining operations, enhancing efficiency and exploring new market opportunities. At the same time, we will strengthen our partnerships to jointly drive industry advancements. And we will also continue to proactively pursue sustainable and more cost-efficient energy sources. Operator [Jack Sun, Elonxi Research]. I have 3 questions. The first question is that, well, the Bitcoin mining business actually accounted for 99% of your quarterly revenue. So do you see any concentration risk in terms of your revenue stream here? And what is your plan to balance or diversify your business lines? And my second question is regarding the operating loss. So do you consider using derivatives to hedge against volatilities in your fair value? And my third question is regarding cash flow. Investors are interested in cash flow positions. So my question is, do you have any plan in the future for equity financing or other financing plans? Lin Jiayuan On your first question, while the majority of our revenue currently comes from Bitcoin mining, we believe that focusing on mining at this stage is aligned with our overall strategy. Meanwhile, we remain confident in the potential of our used car export business and will concentrate on operating AutoCango, our asset-light platform for used car exports. Looking ahead, we plan to gradually explore additional business opportunities based on market conditions to diversify our operations. At the same time, we will continue to refine our mining business to ensure its stable and sustainable growth. On your second question on operating loss. Well, the operating loss in this quarter was primarily due to the decline in Bitcoin prices in March, and we believe that fluctuations in Bitcoin's price are primarily short term in nature, and we remain confident in its long-term value. In addition, we are introducing risk management tools in phases. For the near term, we are signing medium- to longer-term contracts with power suppliers to lock in electricity prices and reduce cost pressures. And at the same time, we are actively seeking low-cost renewable energy sources. Looking ahead, we are also exploring the feasibility of more relevant risk management tools and will adopt them prudently to mitigate new potential risks. Regarding cash flow, we currently have sufficient liquidity to support mining operations at 32 exahashes per second, including a USD400 million annual credit facility provided by our partners. Given our relatively low debt-to-equity ratio, we still have ample room to take on additional leverage. As such, we plan to prioritize debt financing over equity financing. Operator Michael Donovan, H.C. Wainwright. Michael Donovan It's Michael Donovan from Kevin Dede's team. Let's start with the 18 exahash you still have to deploy. Can you provide more clarity on that? And has the deal with Ursalpha been finalized? And you mentioned July. So when can we expect the 18 exahash to be online at the end of July? Or is there anything that would hold this up? And then my second question is around your Bitcoin HODL strategy that you mentioned on the call. Do you have any plans to use your Bitcoin in terms of lending or have any plans to earn yield on the Bitcoin? Lin Jiayuan Thank you for your questions. I will hand over your questions to our CFO, Yongyi Zhang. Zhang Yongyi Thank you for your question. So on your first question on the 18 EH deal, actually, we expect to complete -- to close the deal by the end of July because we have already reached agreements on the main plans and except for the -- some small details, and we still -- we are still finalizing the small details. To be more specific about the terms and conditions revisions. Actually, in April, we received some -- also a request on our domestic or PRC deal. So that's why we need to make some revisions to the 18 EH due terms and conditions. So in fact, our plan is that for this February -- sorry, I mean, this Friday, we are going to have AGM, Extraordinary Shareholders Meeting, I mean, to have the Shareholders Meeting to deliberate the PRC deal. And so we expect that after the Extraordinary Shareholders Meeting, then we will be able to complete the PRC deal and then thereby completing our planned revision to the 18 EH deal. On your second question, yes, our strategy is Mine and Hold. So right now, our focus is still on increasing our Bitcoin holdings. However, when our holdings reach a certain size, then we will definitely consider taking on some transactions to improve to earn more yields on Bitcoin. Operator And that concludes our question-and-answer session. Thank you once again for joining Cango's first quarter 2025 earnings conference call today. Have a great day.
Yahoo
14-05-2025
- Business
- Yahoo
Cango Inc. Reports First Quarter 2025 Unaudited Financial Results
SHANGHAI, May 14, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its unaudited financial results for the first quarter of 2025. First Quarter 2025 Financial and Operational Highlights Total revenues were RMB1.1 billion (US$145.2 million), a significant increase from RMB64.4 million in the same period of 2024. This surge was primarily attributable to our Bitcoin mining business, which generated revenues of RMB1.0 billion (US$144.2 million) in the quarter. A total of 1,541 Bitcoins were mined during the quarter. The average cost to mine Bitcoin, excluding depreciation of mining machines, was US$70,602.1 per Bitcoin in the quarter. Adjusted EBITDA was RMB27.6 million (US$3.8 million) in the first quarter of 2025. The total balance of cash and cash equivalents and short-term investments was RMB2.5 billion (US$347.4 million) as of March 31, 2025. The total outstanding balance of financing transactions the Company facilitated was RMB2.6 billion (US$358.4 million) as of March 31, 2025. Our credit risk exposure has decreased, with only RMB762.4 million (US$105.1 million) of outstanding loan balances where the Company bears credit risks that have not been provided with full bad debt allowance or full risk assurance liabilities. M1+ and M3+ overdue ratios for all outstanding financing transactions facilitated by the Company that have not been provided with full bad debt allowance or full risk assurance liabilities were 2.86% and 1.59%, respectively, as of March 31, 2025, compared with 3.24% and 1.78%, respectively, as of December 31, 2024. Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, "The first quarter of 2025 marked a new chapter of growth for Cango following our entry into the Bitcoin mining industry in November 2024. Fueled by the strong performance of our mining operations, we generated total revenues of RMB1.1 billion for the quarter. Throughout the quarter, we focused on enhancing our operational efficiency and mined a total of 1,541 Bitcoins, up substantially from 933.8 Bitcoins last quarter. By the end of April, we produced 2,945 Bitcoins from the inception of our Bitcoin mining business." "Given our strong confidence in the Bitcoin's long-term value appreciation potential, we have adopted a "Mine and Hold" strategy, prioritizing both self-mining and long-term holding. Currently, we operate 32 EH/s of computing power, positioning us among the world's top-tier Bitcoin miners. We expect to add another 18 EH/s by the end of July 2025. Looking ahead, we will continue to consolidate and optimize our existing computing resources to maximize efficiency while actively exploring high-quality M&A opportunities to further scale our operations and deliver long-term value to all stakeholders," concluded Mr. Lin. Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, "We are pleased to report another solid financial performance this quarter, highlighted by total revenue of RMB1.1 billion and a strong balance sheet. We also continued to reduce our credit risk exposure, further bolstering our financial position and flexibility. Supported by this robust foundation, we are well-positioned to expand the Bitcoin mining business and holistically drive the Company's growth." First Quarter 2025 Financial Results REVENUES Total revenues in the first quarter of 2025 were RMB1.1 billion (US$145.2 million), compared with RMB64.4 million in the same period of 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024. Revenue from the Bitcoin mining business was RMB1.0 billion (US$144.2 million), with a total of 1,541 Bitcoins mined in the first quarter of 2025. Revenue from automotive trading-related income[1] was RMB7.6 million (US$1.0 million), compared with RMB64.4 million in the same period of 2024. OPERATING COSTS AND EXPENSES Total operating costs and expenses in the first quarter of 2025 were RMB1.2 billion (US$166.7 million). These costs were primarily associated with our Bitcoin mining business. Cost of revenue in the first quarter of 2025 was RMB955.1 million (US$131.6 million), compared with RMB29.1 million in the same period of 2024. Sales and marketing expenses in the first quarter of 2025 were RMB415,981 (US$57,324), compared with RMB3.5 million in the same period of 2024. General and administrative expenses in the first quarter of 2025 were RMB92.5 million (US$12.8 million), compared with RMB37.9 million in the same period of 2024. Research and development expenses in the first quarter of 2025 were RMB324,991 (US$44,785), compared with RMB1.1 million in the same period of 2024. Net gain on contingent risk assurance liabilities in the first quarter of 2025 was RMB5.3 million (US$726,124), compared with RMB15.0 million in the same period of 2024. Net recovery on provision for credit losses in the first quarter of 2025 was RMB28.7 million (US$4.0 million), compared with RMB66.3 million in the same period of 2024. INCOME (LOSS) FROM OPERATIONS Loss from operations in the first quarter of 2025 was RMB155.5 million (US$21.4 million) compared with income from operations of RMB74.2 million in the same period of 2024. NET INCOME (LOSS) AND NET INCOME (LOSS) PER ADS Net loss in the first quarter of 2025 was RMB207.4 million (US$28.6 million) compared with net income of RMB90.0 million in the same period of 2024. Basic and diluted net loss per American Depositary Share (the "ADS") in the first quarter of 2025 were both RMB2.00 (US$0.28). Each ADS represents two Class A ordinary shares of the Company. ADJUSTED EBITDA Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million (US$3.8 million) compared with RMB108.4 million in the same period of 2024. BALANCE SHEET As of March 31, 2025, the Company had cash and cash equivalents of RMB2.5 billion (US$346.7 million) compared with RMB1.3 billion as of December 31, 2024. As of March 31, 2025, the Company had short-term investments of RMB5.2 million (US$715,049) compared with RMB1.2 billion as of December 31, 2024. Business Outlook We currently maintain a deployed hashrate of 32 EH, demonstrating our operational resilience. As part of our continued commitment to growth and scaling our capabilities, we are targeting a substantial increase in our hashrate over the coming months. We are on track to grow our deployed hashrate to approximately 50 EH before the end of July. This increase is expected to be driven by the closing of our share-settled acquisition of Bitcoin mining assets, positioning us to strengthen our competitive advantage and increase operational efficiency. Share Repurchase Program Pursuant to the share repurchase program announced on April 23, 2024, the Company had repurchased 996,640 ADSs with cash in the aggregate amount of approximately US$1.7 million as of April 25, 2025, the day on which the program expired. Conference Call Information The Company's management will hold a conference call on Wednesday, May 14, 2025, at 9:00 P.M. Eastern Time or Thursday, May 15, 2025, 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 May 21, 2025, by dialing the following numbers: International: +1-412-317-0088 United States Toll Free: +1-877-344-7529 Access Code: 8016651 A live and archived webcast of the conference call will also be available at the Company's investor relations website at About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: 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 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 before interest, taxes, depreciation, and amortization, 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 its 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. 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 RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 LiuCango +86 21 3183 5088 ext.5581Email: ir@ Helen WuPiacente Financial CommunicationsTel: +86 10 6508 0677Email: ir@ [1] Revenue from automotive trading related income consists revenues generated from loan facilitation income and other related income, guarantee income, leasing income, after-market services income, automotive trading income and others. CANGO INTERIM CONDENSED CONSOLIDATED BALANCE SHEET(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data） As of December 31, 2024 As of March 31,2025 (Audited) (Unaudited) (Unaudited) RMB RMB US$ ASSETS:Current assets:Cash and cash equivalents1,289,629,9812,515,712,358 346,674,433 Restricted cash - current10,813,74611,210,722 1,544,879 Short-term investments, net1,231,171,7515,188,899 715,049 Accounts receivable, net22,991,95115,801,108 2,177,451 Finance lease receivables - current, net20,685,47519,332,969 2,664,154 Financing receivables, net5,685,0963,722,236 512,938 Short-term contract asset, net33,719,94419,860,987 2,736,917 Prepayments and other current assets, net 226,352,004362,016,043 49,887,145 Receivable for bitcoin collateral, net617,057,7651,464,654,137 201,834,737 Total current assets3,458,107,7134,417,499,459 608,747,703 Non-current assets:Restricted cash - non-current287,425,602161,939,581 22,315,871 Long-term investment-400,000,000 55,121,474 Mining machines, net1,772,319,0411,619,608,093 223,187,963 Property and equipment, net6,634,5096,205,894 855,195 Intangible assets, net47,425,61747,259,479 6,512,530 Long-term contract asset, net17,551,040348,864 48,075 Finance lease receivables - non-current, net9,309,2273,648,111 502,723 Operating lease right-of-use assets, net40,788,97738,789,517 5,345,338 Other non-current assets, net329,761,833359,761,832 49,576,506 Total non-current assets2,511,215,8462,637,561,371 363,465,675 TOTAL ASSETS5,969,323,5597,055,060,830 972,213,378 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Short-term debts124,584,293790,393,522 108,919,140 Accrued expenses and other current liabilities1,348,300,7791,999,990,186 275,606,016 Deferred guarantee income11,787,7127,974,712 1,098,945 Contingent risk assurance liabilities 31,190,42520,979,625 2,891,070 Income tax payable311,130,341314,258,152 43,305,931 Short-term lease liabilities7,912,4207,639,264 1,052,719 Total current liabilities1,834,905,9703,141,235,461 432,873,821 Non-current liabilities:Deferred tax liability10,724,13310,724,133 1,477,825 Long-term operating lease liabilities37,044,46635,769,502 4,929,169 Other non-current liabilities19,11818,131 2,499 Total non-current liabilities47,787,71746,511,766 6,409,493 Total liabilities1,882,693,6873,187,747,227 439,283,314 Shareholders' equityOrdinary shares199,087199,087 27,434 Treasury shares(756,517,941)(754,199,105) (103,931,416) Additional paid-in capital4,725,877,4324,749,907,787 654,554,796 Accumulated other comprehensive income152,882,024114,572,087 15,788,456 Accumulated deficit(35,810,730)(243,166,253) (33,509,206) Total Cango Inc.'s equity4,086,629,8723,867,313,603 532,930,064 Total shareholders' equity4,086,629,8723,867,313,603 532,930,064 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY5,969,323,5597,055,060,830 972,213,378 CANGO INTERIM CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (LOSS)(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data) Three months ended March 31 20242025 (Unaudited) (Unaudited) (Unaudited) RMB RMB US$ Revenues64,422,4941,053,883,166 145,228,984 Bitcoin mining income-1,046,266,997 144,179,448 Loan facilitation income and other related income 13,821,022(829,251) (114,274) Guarantee income 30,259,5814,043,650 557,230 Leasing income4,939,7122,088,483 287,801 After-market services income 11,637,788776,803 107,046 Automobile trading income3,445,04070,796 9,756 Others319,3511,465,688 201,977 Operating cost and expenses:Cost of revenue29,058,868955,091,082 131,615,070 Sales and marketing3,548,273415,981 57,324 General and administrative37,923,53192,536,718 12,751,901 Research and development1,098,105324,991 44,785 Net gain on contingent risk assurance liabilities(15,018,246)(5,269,261) (726,124) Net recovery on provision for credit losses(66,339,084)(28,702,162) (3,955,264) Loss from change in fair value of receivable for bitcoin collateral-194,957,999 26,865,931 Total operation cost and expense(9,728,553)1,209,355,348 166,653,623 (Loss) income from operations74,151,047(155,472,182) (21,424,639) Interest income16,503,9652,152,469 296,618 Net investment income10,984,524- - Interest expense-(9,517,781) (1,311,585) Foreign exchange gain (loss), net131,689(818,002) (112,724) Other income832,55113,609,872 1,875,491 Other expenses(535,390)(54,180,931) (7,466,332) Net income (loss) before income taxes102,068,386(204,226,555) (28,143,171) Income tax expense(12,041,600)(3,128,968) (431,183) Net income (loss)90,026,786(207,355,523) (28,574,354) Net income (loss) attributable to Cango Inc.'s shareholders90,026,786(207,355,523) (28,574,354) Earnings (losses) per ADS attributable to ordinary shareholders:Basic0.85(2.00) (0.28) Diluted0.80(2.00) (0.28) Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:Basic105,521,018103,783,087 103,783,087 Diluted112,786,810103,783,087 103,783,087 Other comprehensive income (loss), net of taxForeign currency translation adjustment20,894,928(38,309,937) (5,279,250) Total comprehensive income (loss)110,921,714(245,665,460) (33,853,604) Total comprehensive income (loss) attributable to Cango Inc.'s shareholders110,921,714(245,665,460) (33,853,604) CANGO OF GAAP AND NON-GAAP RESULTS(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data Three months ended March 31 20242025 (Unaudited) (Unaudited) (Unaudited) RMB RMB US$ Net (loss) income90,026,786(207,355,523) (28,574,354) Add: Interest expense-9,517,781 1,311,585 Add: Income tax expenses12,041,6003,128,968 431,183 Add: Depreciation and amortization927,576155,503,915 21,429,012 Cost of revenue-154,944,205 21,351,882 General and administrative879,591559,710 77,130 Research and development47,985- - Add: Other expenses535,39054,180,931 7,466,332 Less: Other income832,55113,609,872 1,875,491 Add: Share-based compensation expenses5,717,42226,187,822 3,608,778 Cost of revenue254,39158,766 8,098 Sales and marketing1,046,659339,524 46,788 General and administrative4,416,37225,783,442 3,553,053 Research and development-6,090 839 Non-GAAP adjusted EBITDA108,416,22327,554,022 3,797,045 Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders108,416,22327,554,022 3,797,045 View original content to download multimedia: SOURCE Cango Inc.
