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Form 6-K Cango Inc. For: Aug 25

August 25, 2020 6:12 AM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

August 25, 2020

 

 

Commission File Number: 001-38590

 

 

CANGO INC.

 

 

10A, Building 3, Youyou Century Plaza

428 South Yanggao Road

Pudong New Area, Shanghai 200127

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CANGO INC.
By:  

/s/ Yongyi Zhang

Name:   Yongyi Zhang
Title:   Chief Financial Officer

Date: August 25, 2020

 

3

Exhibit 99.1

Cango Inc. Reports Second Quarter 2020 Unaudited Financial Results

SHANGHAI, August 24, 2020 /PRNewswire/ — Cango, Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced its unaudited financial results for the second quarter of 2020.

Second Quarter 2020 Financial and Operational Highlights

 

   

Total revenues were RMB274.1 million (US$38.8 million) compared with RMB336.3 million in the same period of 2019, mainly due to the impact of the COVID-19 pandemic, which has severely disrupted the domestic automotive industry.

 

   

After-market services facilitation revenues increased to RMB52.5 million (US$7.4 million), or 19.1% of total revenues in the second quarter of 2020, continuing to serve as an important driver for the Company’s revenue growth.

 

   

The amount of financing transactions the Company facilitated in the second quarter of 2020 was RMB4,946.0 million (US$700.1 million). The total outstanding balance of financing transactions the Company facilitated was RMB37,497.3 million (US$5,307.4 million) as of June 30, 2020.

 

   

M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 1.59% and 0.84%, respectively, as of June 30, 2020, as compared to 2.00% and 0.56%, respectively, as of March 31, 2020.

 

   

The number of dealers covered by the Company was 44,521 as of June 30, 2020, compared to 45,688 as of March 31, 2020. The decrease was a result of Cango’s efforts to optimize the efficiency of its dealership network by removing certain dealers that failed to meet the Company’s standards for operating risks and/or transaction referral capabilities.

Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, “While the overall auto industry has shown signs of gradual recovery, the difficult conditions triggered by the COVID-19 pandemic persisted through the end of the second quarter, and therefore the speed of that recovery, especially in lower-tier cities where the majority of our business operates, was slower than our previous expectations. In addition, low- and mid-range car models, as well as cars produced by domestic car manufacturers, were impacted more than high-end car models and those cars manufactured through joint ventures with foreign firms. Despite these headwinds, our after-market services facilitation business achieved an outstanding performance, mainly attributable to the prompt development of our insurance facilitation services. In particular, the car insurance contracts we facilitated in the second quarter grew significantly compared with the previous quarter. Also of note, the quality of our assets has improved considerably in the second quarter, as reflected by the improvement in our M1+ overdue ratio of 1.59% as of June 30, 2020 compared with 2.00% as of March 31, 2020. On the other hand, some of last quarter’s M1+ delinquencies have become M3+ delinquencies, but within a very reasonable range. We remain committed to applying a rigorous and comprehensive risk management policy and are confident in our ability to maintain the quality of our assets going forward.

 

1


“Looking ahead, we are well-positioned to keep momentum going by further expanding the auto loan facilitation business into the higher-end segment of the market. We have established a dedicated team to target this large market segment which has untapped potential. Additionally, we will continue to grow our insurance facilitation services by exploring more prime insurance transaction channels and expanding our insurance product offerings. We believe that 2020 is a very unique and pivotal year for the auto industry due to COVID-19, and a great time to push our strategic initiatives and find new directions for long-term growth. With more support from government and improved consumers’ confidence, we feel optimistic about the auto finance industry in the second half of this year. Fortified by our competitive advantages and unique market position, we may continue to create more value for our clients, partners and shareholders, while contributing to the development of the entire industry,” Mr. Lin concluded.

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, “Amidst the COVID-19 pandemic, we generated RMB274.1 million in total revenues in the second quarter of 2020, outperforming the high end of our previous guidance by approximately 10%. In addition, we continue to see our cost optimization measures working, with gross margin maintained at a healthy level in the second quarter. We also regained positive operating income, mainly attributable to our effective cost control initiatives and improved asset quality as a result of effective post-loan management. As a result, our bottom line increased to RMB70.2 million compared with a net loss of RMB34.7 million in the previous quarter. While uncertainty remains given the challenging operating environment, we are pleased with the strength of our business fundamentals and remain encouraged by the long-term prospects for our business.

Second Quarter 2020 Financial Results

REVENUES

Total revenues in the second quarter of 2020 were RMB274.1 million (US$38.8 million) compared to RMB336.3 million in the same period of 2019. Revenues from after-market services facilitation in the second quarter of 2020 increased by 46.3% to RMB52.5 million (US$7.4 million) from RMB35.9 million in the same period of 2019, and the increase was primarily due to the Company’s efforts to cross-sell insurance facilitation services.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the second quarter of 2020 were RMB207.4 million (US$29.4 million) compared to RMB252.0 million in the same period of 2019. This was in line with the decrease in the Company’s sales volume.

 

   

Cost of revenue in the second quarter of 2020 decreased by 18.3% to RMB102.8 million (US$14.6 million) from RMB125.8 million in the same period of 2019, which was primarily due to a decrease in the amount of financing transactions the Company facilitated. As a percentage of total revenues, cost of revenue in the second quarter of 2020 was 37.5% compared to 37.4% in the same period of 2019.

 

2


   

Sales and marketing expenses in the second quarter of 2020 were RMB42.4 million (US$6.0 million) compared to RMB44.5 million in the same period of 2019. As a percentage of total revenues, sales and marketing expenses in the second quarter of 2020 increased to 15.5% from 13.2% in the same period of 2019.

 

   

General and administrative expenses in the second quarter of 2020 were RMB66.0 million (US$9.3 million) compared to RMB53.4 million in the same period of 2019. As a percentage of total revenues, general and administrative expenses in the second quarter of 2020 increased to 24.1% from 15.9% in the same period of 2019.

 

   

Research and development expenses in the second quarter of 2020 were RMB12.9 million (US$1.8 million) compared to RMB12.2 million in the same period of 2019. As a percentage of total revenues, research and development expenses in the second quarter of 2020 increased to 4.7% from 3.6% in the same period of 2019. The increase was a result of the Company’s efforts to maintain a stable level of investment in research and development projects.

 

   

Net gain on risk assurance liabilities in the second quarter of 2020 was RMB42.9 million (US$6.1 million) compared with a net loss of RMB76.9 million in the first quarter of 2020. Net gain on risk assurance liabilities was mainly due to a decrease in the delinquent loan balance and default rate.

INCOME FROM OPERATIONS

Income from operations in the second quarter of 2020 was RMB66.7 million (US$9.4 million), compared with RMB84.3 million in the same period of 2019.

NET INCOME

Net income in the second quarter of 2020 was RMB70.2 million (US$9.9 million). Non-GAAP adjusted net income in the second quarter of 2020 was RMB92.3 million (US$13.1 million). Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measure.”

NET INCOME PER ADS

Basic and diluted net income per American Depositary Share (ADS) in the second quarter of 2020 were both RMB0.47 (US$0.07). Non-GAAP adjusted basic and diluted net income per ADS in the second quarter of 2020 were both RMB0.61 (US$0.09). Each ADS represents two of the Company’s Class A ordinary shares.

BALANCE SHEET

As of June 30, 2020, the Company had cash and cash equivalents of RMB2,010.3 million (US$284.5 million), compared to RMB2,741.0 million as of March 31, 2020. The decrease was mainly due to the dividend paid in May and the repayment of debts.

 

3


Business Outlook

For the third quarter of 2020, the Company expects total revenues to be between RMB300 million and RMB330 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

The Company’s investee, Li Auto Inc. (“Li Auto”), was listed on the Nasdaq Global Select Market on July 30, 2020. Cango currently holds 39,194,413 Class A ordinary shares of Li Auto. The listing is expected to enhance the liquidity of the Company’s investment in Li Auto, and the change in fair value of investment may have a significant impact on the Company’s third quarter financial results.

Conference Call Information

The Company’s management will hold a conference call on Monday, August 24, 2020, at 9:00 P.M. Eastern Time or Tuesday, August 25, 2020, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

 

International:

   +1-412-902-4272

United States Toll Free:

   +1-888-346-8982

Mainland China Toll Free:

   4001-201-203

Hong Kong, China Toll Free:

   800-905-945

Conference ID:

   Cango Inc.

The replay will be accessible through August 31, 2020, by dialing the following numbers:

 

International:

   +1-412-317-0088

United States Toll Free:

   +1-877-344-7529

Access Code:

   10147234

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 Cango, Inc.

Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. Founded in 2010 by a group of pioneers in China’s automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company’s services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango’s platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. For more information, please visit: www.cangoonline.com.

 

4


Definition of Overdue Ratios

The Company defines “M1+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

The Company defines “M3+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

Use of Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses Non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company’s operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.

Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using Non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of Non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

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 RMB7.0651 to US$1.00, the noon buying rate in effect on June 30, 2020, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

 

5


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

Caesar Cao

Cango Inc.

Tel: +86 21 3183 5088 ext.5521

Email: [email protected]

Emilie Wu

The Piacente Group, Inc.

Tel: +86 21 6039 8363

Email: [email protected]

 

6


CANGO INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)

 

     As of December 31,
2019
    As of June 30,
2020
 
     RMB     RMB     US$  

ASSETS:

      

Current assets:

      

Cash and cash equivalents

     2,002,314,688       2,010,317,864       284,542,025  

Restricted cash - current

     970,993,759       484,332,950       68,552,880  

Short-term investments

     597,265,740       835,048,818       118,193,489  

Accounts receivable, net

     148,562,946       64,779,967       9,169,009  

Finance lease receivables - current, net

     1,661,082,122       1,617,485,890       228,940,268  

Short-term consumer financing receivables, net

     13,298,562       84,466       11,955  

Financing receivables, net

     9,103,522       18,957,245       2,683,224  

Short-term contract asset

     20,688,424       51,042,617       7,224,614  

Prepaid expenses and other current assets

     117,445,282       80,897,222       11,450,259  
  

 

 

   

 

 

   

 

 

 

Total current assets

     5,540,755,045       5,162,947,039       730,767,723  
  

 

 

   

 

 

   

 

 

 

Non-current assets:

      

Restricted cash - non-current

     873,674,276       926,414,353       131,125,441  

Long-term investments

     547,888,818       551,511,101       78,061,330  

Goodwill

     145,063,857       145,063,857       20,532,456  

Property and equipment, net

     14,736,767       12,993,643       1,839,131  

Intangible assets

     44,758,242       44,568,406       6,308,248  

Long-term contract asset

     11,655,356       31,940,001       4,520,814  

Deferred tax assets

     100,667,946       135,796,122       19,220,694  

Finance lease receivables - non-current, net

     1,448,958,373       985,507,019       139,489,465  

Other non-current assets

     8,415,694       5,423,466       767,642  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     3,195,819,329       2,839,217,968       401,865,221  
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     8,736,574,374       8,002,165,007       1,132,632,944  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities:

      

Short-term debts

     1,439,749,760       807,645,729       114,314,833  

Long-term debts - current

     863,418,789       1,076,453,717       152,362,135  

Accrued expenses and other current liabilities

     278,690,234       164,458,100       23,277,535  

Risk assurance liabilities

     259,952,473       323,552,720       45,795,915  

Income tax payable

     67,308,814       34,701,923       4,911,738  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     2,909,120,070       2,406,812,189       340,662,156  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Long-term debts

     301,667,717       301,706,773       42,703,822  

Deferred tax liability

     12,329,929       21,120,936       2,989,474  

Other non-current liabilities

     21,796,367       10,818,782       1,531,299  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     335,794,013       333,646,491       47,224,595  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     3,244,914,083       2,740,458,680       387,886,751  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity

      

Ordinary shares

     204,260       204,260       28,911  

Treasury shares

     (20,638,881     (63,535,448     (8,992,859

Additional paid-in capital

     4,526,344,454       4,564,430,104       646,053,149  

Accumulated other comprehensive income

     119,430,738       142,660,288       20,192,253  

Retained earnings

     852,508,968       617,735,708       87,434,815  
  

 

 

   

 

 

   

 

 

 

Total Cango Inc.’s equity

     5,477,849,539       5,261,494,912       744,716,269  
  

 

 

   

 

 

   

 

 

 

Non-controlling interests

     13,810,752       211,415       29,924  
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     5,491,660,291       5,261,706,327       744,746,193  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     8,736,574,374       8,002,165,007       1,132,632,944  
  

 

 

   

 

 

   

 

 

 


CANGO INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)

 

     Three months ended June 30,     Six months ended June 30,  
     2019     2020     2019     2020  
     RMB     RMB     US$     RMB     RMB     US$  

Revenues

     336,303,754       274,054,751       38,789,932       687,962,259       520,052,725       73,608,686  

Loan facilitation income and other related income

     222,630,419       143,604,125       20,325,845       458,941,883       263,624,306       37,313,599  

Leasing income

     71,250,688       69,275,783       9,805,351       143,640,951       143,557,538       20,319,251  

After-market services income

     35,866,122       52,472,658       7,427,023       75,662,229       101,528,861       14,370,478  

Others

     6,556,525       8,702,185       1,231,713       9,717,196       11,342,020       1,605,358  

Operating cost and expenses:

            

Cost of revenue

     125,824,004       102,817,046       14,552,808       256,630,454       193,414,759       27,376,082  

Sales and marketing

     44,503,534       42,437,952       6,006,702       90,050,914       88,212,181       12,485,624  

General and administrative

     53,418,413       66,040,192       9,347,382       118,182,033       123,451,858       17,473,476  

Research and development

     12,246,050       12,901,613       1,826,105       25,593,854       25,458,298       3,603,388  

Net loss on risk assurance liabilities

     2,379,706       (42,928,191     (6,076,091     20,230,839       33,957,484       4,806,370  

Provision for credit losses

     13,672,656       26,119,771       3,697,014       23,695,938       70,214,542       9,938,223  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operation cost and expense

     252,044,363       207,388,383       29,353,920       534,384,032       534,709,122       75,683,163  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (Loss) from operations

     84,259,391       66,666,368       9,436,012       153,578,227       (14,656,397     (2,074,477
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and investment income, net

     22,704,386       21,675,128       3,067,915       41,588,934       50,808,295       7,191,447  

Income from equity method investments

     (942,312     —         —         (926,205     —         —    

Interest expense

     (4,712,329     (369,637     (52,319     (10,006,574     (1,736,923     (245,845

Foreign exchange loss, net

     1,409,293       621,774       88,006       122,801       (3,439,945     (486,893

Other income, net

     856,340       7,317,072       1,035,664       21,593,278       25,790,703       3,650,437  

Other expenses

     (168,717     (527,390     (74,647     (1,184,660     (581,495     (82,305
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income before income taxes

     103,406,052       95,383,315       13,500,631       204,765,801       56,184,238       7,952,364  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expenses

     (8,819,437     (25,152,250     (3,560,070     (35,808,056     (20,639,459     (2,921,326
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     94,586,615       70,231,065       9,940,561       168,957,745       35,544,779       5,031,038  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income attributable to non-controlling interests

     3,047,624       —         —         1,200,254       3,646,196       516,086  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cango Inc.’s shareholders

     91,538,991       70,231,065       9,940,561       167,757,491       31,898,583       4,514,952  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per ADS attributable to ordinary shareholders:

            

Basic

     0.60       0.47       0.07       1.11       0.21       0.03  

Diluted

     0.60       0.47       0.07       1.11       0.21       0.03  

Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:

            

Basic

     151,404,946       150,605,540       150,605,540       151,404,946       150,789,465       150,789,465  

Diluted

     151,404,946       150,819,440       150,819,440       151,404,946       151,899,153       151,899,153  

Other comprehensive (loss) income, net of tax

            
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Unrealized losses on available-for-sale securities

     (108,594     —         —         (146,801     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reclassification of losses to net income

     (276,843     —         —         (276,843     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency translation adjustment

     31,329,909       (5,444,800     (770,661     (10,639,143     23,229,550       3,287,929  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

     125,531,087       64,786,265       9,169,900       157,894,958       58,774,329       8,318,967  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss) attributable to Cango Inc.’s shareholders

     122,483,463       64,786,265       9,169,900       156,694,704       55,128,133       7,802,881  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


CANGO INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data

 

     Three months ended June 30,      Six months ended June 30,  
     2019      2020      2019      2020  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)  
     RMB      RMB      US$      RMB      RMB      US$  

Net income

     94,586,615        70,231,065        9,940,561        168,957,745        35,544,779        5,031,038  

Add: Share-based compensation expenses

     22,273,101        22,096,880        3,127,610        37,550,563        45,415,178        6,428,101  

Cost of revenue

     913,198        905,973        128,232        1,539,574        1,862,024        263,552  

Sales and marketing

     4,744,170        4,706,635        666,181        7,998,269        9,673,432        1,369,185  

General and administrative

     15,457,530        15,335,232        2,170,561        26,060,087        31,518,128        4,461,101  

Research and development

     1,158,203        1,149,040        162,636        1,952,633        2,361,594        334,262  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP adjusted net income

     116,859,716        92,327,945        13,068,171        206,508,308        80,959,957        11,459,139  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Less: Net income attributable to non-controlling interests

     3,047,624        —          —          1,200,254        3,646,196        516,086  

Net income attributable to Cango Inc.’s shareholders

     113,812,092        92,327,945        13,068,171        205,308,054        77,313,761        10,943,053  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP adjusted net income per ADS-basic

     0.75        0.61        0.09        1.36        0.51        0.07  

Non-GAAP adjusted net income per ADS-diluted

     0.75        0.61        0.09        1.36        0.51        0.07  

Weighted average ADS outstanding—basic

     151,404,946        150,605,540        150,605,540        151,404,946        150,789,465        150,789,465  

Weighted average ADS outstanding—diluted

     151,404,946        150,819,440        150,819,440        151,404,946        151,899,153        151,899,153  


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