SHANGHAI, May 28, 2019
/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 first quarter of 2019.
First Quarter 2019 Financial and Operational
Highlights
- Total revenues in the first quarter of 2019 were RMB351.7 million (US$52.4
million), representing a year-over-year increase of 41.3%
and outperforming the high end of the Company's guidance by
6.6%.
- After-market services facilitation revenues in the first
quarter of 2019 were RMB39.8 million
(US$5.9 million), continuing to
contribute stable revenues.
- The amount of financing transactions the Company facilitated in
the first quarter of 2019 totaled RMB6,555
million (US$976.7
million). The total outstanding balance of financing transactions
the Company facilitated was RMB35,748
million (US$5,326.6 million) as of March 31, 2019.
- M1+ and M3+ overdue ratios for all financing transactions that
remained outstanding and were facilitated by the Company were 0.77%
and 0.37%, respectively as of
March 31, 2019, as compared to 0.74%
and 0.37%, respectively, as of December 31,
2018.
- The number of dealers covered by the Company was 47,879 as of
March 31, 2019, as compared to 46,565
as of December 31, 2018.
Mr. Jiayuan Lin, Chief Executive
Officer of Cango, commented, "In the first quarter of 2019, our
strong financial and operating performances were marked by our
better-than-expected revenue growth and the continued expansion of
our dealership network. During the quarter, we continued to focus
on strengthening our core competencies in auto loan facilitation
services, accelerating the development of our after-market
services, and expanding our collaborations with strategic partners.
As a result, our total revenues increased by 41.3% year over year
to RMB351.7 million in the first
quarter. Such growth is a testament to our steady optimization of
our automotive financing facilitation service offerings, which has
helped to improve both our operational efficiency and service
quality. It also speaks to our success in implementing
cross-selling strategies to meet the targeted attach rate for our
after-market services. Going forward, we plan to continue
leveraging our capabilities in data analytics, technology innovation, and
customized service offerings to sustain growth while further
cementing our market leadership in the Chinese automotive
transaction space."
Mr. Yongyi Zhang, Chief Financial
Officer of Cango, stated, "We started 2019 with a solid financial
performance in the first quarter. Our total revenues increased by
41.3% year over year to RMB351.7
million in the first quarter. Our after-market services
facilitation business continued contributing
revenues of RMB39.8 million in the first quarter, or 11.3% of
our total revenues. Looking ahead, we will continue to invest in
expanding our dealership network as well as improving the quality
and efficiency of our services. As we continue establishing new
partnerships with financial institutions and original equipment manufacturers (OEMs) to
further enhance our service offerings, we are confident that our
strong market position will allow us to navigate among the obstacles of this year's
macroeconomic uncertainties."
First Quarter 2019 Financial Results
REVENUES
Total revenues in the first quarter of 2019 were RMB351.7 million (US$52.4
million), representing a 41.3% increase from RMB248.8 million in the corresponding period of
2018. The increase was primarily driven by the Company's strategies
to rejuvenate growth and the increased contribution from its
after-market services business.
Revenues from after-market services facilitation in the first
quarter of 2019 were RMB39.8 million
(US$5.9 million), compared to
RMB4.4 million in the same period of
last year.
OPERATING COST AND EXPENSES
Total operating cost and expenses in the first quarter of 2019
were RMB282.3 million (US$42.1 million), compared to RMB155.7 million in the corresponding period of
2018.
- Cost of revenue in the first quarter of 2019 increased by 61.8%
to RMB130.8 million (US$19.5 million) from RMB80.9 million in the corresponding period of
2018. Cost of revenue as a percentage of total revenues in the
first quarter of 2019 increased to 37.2% from 32.5% in the
corresponding period of 2018. This was primarily due to
increases in the average amount of commissions paid to dealers
per individual financing transaction.
- Sales and marketing expenses in the first quarter of 2019
increased by 30.8% to RMB45.5 million
(US$6.8 million) from RMB34.8 million in the corresponding period of
2018. The increase was due to increases in
staff compensation. Sales and marketing expenses as a
percentage of total revenues in the first quarter of 2019 decreased
to 13.0% from 14.0% in the corresponding period of 2018.
- General and administrative expenses were RMB64.8 million (US$9.7
million), or 18.4% of total revenues, in the first quarter
of 2019, compared to RMB26.7 million,
or 10.7% of total revenue, in the corresponding period of 2018. The
increase was mainly driven by increases in staff compensation
including share-based compensation expenses as the Company
expanded its business.
- Research and development expenses in the first quarter of 2019
increased to RMB13.3 million
(US$2.0 million) from RMB6.5 million in the corresponding period of
2018. Research and development expenses as a percentage of total
revenues in the first quarter of 2019 increased to 3.8% from 2.6%
in the corresponding period of 2018. The increase was mostly due to
the expansion of the Company's research and development team, as
well as increases in their salaries
and benefits.
NET INCOME
Net income was RMB74.4 million
(US$11.1 million) in the first
quarter of 2019, compared to RMB84.0
million in the corresponding period of 2018. Non-GAAP
adjusted net income was RMB89.6
million (US$13.4 million),
compared to RMB84.0 million in the
corresponding period of 2018, representing a year-over-year
increase of 6.7%. 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 first quarter of 2019 were both RMB0.50 (US$0.08).
Non-GAAP adjusted basic and diluted net income per ADS in the first quarter of 2019 were both RMB0.60
(US$0.09). Each ADS
represents two of the Company's Class A ordinary shares.
BALANCE SHEET
As of March 31, 2019, the Company had cash and cash
equivalents of RMB2,178.0 million
(US$324.5 million), compared to
RMB2,912.9 million as of December 31, 2018.
Business Outlook
For the second quarter of 2019, the Company expects total
revenues to be between RMB290 million
and RMB315 million. This forecast
reflects the Company's current and preliminary views on the market
and operational conditions, which are subject to change.
Conference Call Information
Cango's management will hold a conference call on Tuesday, May 28, 2019, at 9:00 P.M.
Eastern Time or Wednesday, May 29,
2019, 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
China Toll
Free: 4001-201-203
Hong Kong Toll
Free: 800-905-945
Conference
ID: Cango
Inc.
The replay will be accessible through June 4, 2019, by dialing the following
numbers:
International:
+1-412-317-0088
United States Toll
Free:
+1-877-344-7529
Access
Code: 10131913
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.
Definition of Overdue Ratios
We define "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.
We define "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 RMB6.7112 to US$1.00, the noon buying rate in effect on
March 29, 2019, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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
Jenny Tang
Cango Inc.
Tel: +86 21 3183 5088 ext.5521
Email: ir@cangoonline.com
Jack Wang
ICR Inc.
Tel: +1 (646) 405-5056
Email: ir@cangoonline.com
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for
number of shares and per share data)
|
|
|
|
As of
December 31,
2018
|
|
As of March
31,
2019
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,912,901,189
|
|
2,177,957,831
|
324,525,842
|
Restricted
Cash
|
|
298,900,155
|
|
573,869,955
|
85,509,291
|
Short-term
investments
|
|
265,869,717
|
|
111,660,538
|
16,637,939
|
Accounts receivable,
net
|
|
86,513,830
|
|
128,930,564
|
19,211,253
|
Financing receivable,
net
|
|
5,420,617
|
|
7,260,231
|
1,081,808
|
Short-term loan
principal and financing service fee
receivables,net
|
|
-
|
|
4,424,291
|
659,240
|
Short-term finance
leasing receivable, net
|
|
1,123,703,618
|
|
1,407,413,299
|
209,711,125
|
Prepaid expenses and
other current assets
|
|
61,272,518
|
|
58,605,413
|
8,732,479
|
Total current
assets
|
|
4,754,581,644
|
|
4,470,122,122
|
666,068,977
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
Cash
|
|
668,627,618
|
|
772,103,062
|
115,046,946
|
Long-term
investments
|
|
292,099,059
|
|
492,048,117
|
73,317,457
|
Equity method
investments
|
|
1,448,416
|
|
1,446,001
|
215,461
|
Goodwill
|
|
145,063,857
|
|
145,063,857
|
21,615,189
|
Property and
equipment, net
|
|
18,286,218
|
|
18,673,678
|
2,782,465
|
Intangible
assets
|
|
1,693,407
|
|
33,894,434
|
5,050,428
|
Deferred tax
assets
|
|
100,194,993
|
|
122,170,671
|
18,203,998
|
Long-term finance
leasing receivable, net
|
|
1,282,457,409
|
|
1,616,811,046
|
240,912,362
|
Other non-current
assets
|
|
36,687,583
|
|
7,827,157
|
1,166,283
|
Total non-current
assets
|
|
2,546,558,560
|
|
3,210,038,023
|
478,310,589
|
TOTAL
ASSETS
|
|
7,301,140,204
|
|
7,680,160,145
|
1,144,379,566
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
|
660,000,000
|
|
1,010,000,000
|
150,494,695
|
Long-term
debts—current
|
|
467,194,051
|
|
589,258,093
|
87,802,195
|
Accrued expenses and
other current liabilities
|
|
211,458,501
|
|
218,020,870
|
32,486,123
|
Risk assurance
liabilities
|
|
173,210,363
|
|
194,586,541
|
28,994,299
|
Income tax
payable
|
|
53,517,717
|
|
67,787,225
|
10,100,612
|
Total current
liabilities
|
|
1,565,380,632
|
|
2,079,652,729
|
309,877,924
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
|
472,793,340
|
|
300,323,214
|
44,749,555
|
Other non-current
liabilities
|
|
7,599,404
|
|
330,595
|
49,261
|
Total non-current
liabilities
|
|
480,392,744
|
|
300,653,809
|
44,798,816
|
Total
liabilities
|
|
2,045,773,376
|
|
2,380,306,538
|
354,676,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary
shares
|
|
204,260
|
|
204,260
|
30,436
|
Additional paid-in
capital
|
|
4,444,078,463
|
|
4,459,355,925
|
664,464,764
|
Accumulated other
comprehensive income
|
|
109,452,996
|
|
67,445,738
|
10,049,729
|
Accumulated retained
earnings
|
|
698,036,438
|
|
774,254,938
|
115,367,584
|
Total Cango Inc.'s
(deficit) equity
|
|
5,251,772,157
|
|
5,301,260,861
|
789,912,513
|
Non-controlling
interests
|
|
3,594,671
|
|
(1,407,254)
|
(209,687)
|
Total
shareholders' (deficit) equity
|
|
5,255,366,828
|
|
5,299,853,607
|
789,702,826
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
7,301,140,204
|
|
7,680,160,145
|
1,144,379,566
|
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for
number of shares and per share data)
|
|
|
|
Three months
ended March 31,
|
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
Revenues
|
|
248,819,200
|
|
351,658,505
|
52,398,752
|
Operating cost and
expenses:
|
|
|
|
|
|
Cost of
revenue
|
|
80,855,739
|
|
130,806,450
|
19,490,769
|
Sales and
marketing
|
|
34,818,388
|
|
45,547,380
|
6,786,771
|
General and
administrative
|
|
26,744,045
|
|
64,763,620
|
9,650,080
|
Research and
development
|
|
6,452,126
|
|
13,347,804
|
1,988,885
|
Net loss on risk
assurance liabilities
|
|
3,767,948
|
|
17,851,133
|
2,659,902
|
Provision for
financing receivables
|
|
3,061,743
|
|
10,023,282
|
1,493,516
|
Total operating
cost and expenses
|
|
155,699,989
|
|
282,339,669
|
42,069,923
|
|
|
|
|
|
|
Income from
operations
|
|
93,119,211
|
|
69,318,836
|
10,328,829
|
Interest
income
|
|
8,077,396
|
|
18,884,548
|
2,813,885
|
(Loss) income from
equity method investments
|
|
(2,333,691)
|
|
16,107
|
2,400
|
Interest
expense
|
|
(4,789,726)
|
|
(5,294,245)
|
(788,867)
|
Foreign exchange
loss, net
|
|
(2,623,389)
|
|
(1,286,492)
|
(191,693)
|
Other
income
|
|
22,021,823
|
|
20,736,938
|
3,089,900
|
Other
expenses
|
|
(106,088)
|
|
(1,015,943)
|
(151,380)
|
Net income before
income taxes
|
|
113,365,536
|
|
101,359,749
|
15,103,074
|
Income tax
expenses
|
|
(29,339,041)
|
|
(26,988,619)
|
(4,021,430)
|
Net
income
|
|
84,026,495
|
|
74,371,130
|
11,081,644
|
Less: Net income
(loss) attributable to the
noncontrolling interest shareholders
|
|
3,934,307
|
|
(1,847,370)
|
(275,267)
|
|
|
|
|
|
|
Net income
attributable to Cango Inc.'s shareholders
|
|
80,092,188
|
|
76,218,500
|
11,356,911
|
Net income
attributable to Cango Inc.'s ordinary
shareholders
|
|
80,092,188
|
|
76,218,500
|
11,356,911
|
Net income per
ADS(Note 1):
|
|
|
|
|
|
Basic
|
|
0.63
|
|
0.50
|
0.08
|
Diluted
|
|
0.63
|
|
0.50
|
0.08
|
ADSs used in net
income per ADS computation
(Note 1):
|
|
|
|
|
|
Basic
|
|
63,574,601
|
|
151,404,946
|
151,404,946
|
Diluted
|
|
126,415,858
|
|
151,404,946
|
151,404,946
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income, net of tax
|
|
|
|
|
|
Unrealized losses on
available-for-sale securities
|
|
77,984
|
|
(38,207)
|
(5,693)
|
Foreign currency
translation adjustment
|
|
-
|
|
(41,969,052)
|
(6,253,584)
|
|
|
|
|
|
|
Total
comprehensive income
|
|
84,104,479
|
|
32,363,871
|
4,822,367
|
Total
comprehensive income attributable to Cango
Inc.'s shareholders
|
|
80,170,172
|
|
34,211,241
|
5,097,634
|
|
|
|
|
|
|
Note1: Each ADS
represents two ordinary shares.
|
CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for
number of shares and per share data
|
|
|
|
Three months
ended March 31,
|
|
|
2018
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
Net
income
|
|
84,026,495
|
|
74,371,130
|
11,081,644
|
Add: Share-based
compensation expenses
|
|
-
|
|
15,277,462
|
2,276,413
|
Cost of
revenue
|
|
-
|
|
626,376
|
93,333
|
Sales and
marketing
|
|
-
|
|
3,254,099
|
484,876
|
General and
administrative
|
|
-
|
|
10,602,557
|
1,579,830
|
Research
and development
|
|
-
|
|
794,430
|
118,374
|
Non-GAAP adjusted
net income
|
|
84,026,495
|
|
89,648,592
|
13,358,057
|
Less: Net income
(loss) attributable to the noncontrolling
interest shareholders
|
|
3,934,307
|
|
(1,847,370)
|
(275,267)
|
Non-GAAP adjusted
net income attributable to
Cango Inc.'s shareholders
|
|
80,092,188
|
|
91,495,962
|
13,633,324
|
Non-GAAP adjusted
net income attributable to
Cango Inc.'s ordinary shareholders
|
|
80,092,188
|
|
91,495,962
|
13,633,324
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
net income per ADS-basic (Note 1)
|
|
0.63
|
|
0.60
|
0.09
|
Non-GAAP adjusted
net income per ADS-diluted (Note 1)
|
|
0.63
|
|
0.60
|
0.09
|
|
|
|
|
|
|
Weighted average
ADS outstanding—basic
|
|
63,574,601
|
|
151,404,946
|
151,404,946
|
Weighted average
ADS outstanding—diluted
|
|
126,415,858
|
|
151,404,946
|
151,404,946
|
|
|
|
|
|
|
|
|
|
|
|
|
Note1: Each ADS
represents two ordinary shares.
|
View original
content:http://www.prnewswire.com/news-releases/cango-inc-reports-first-quarter-2019-unaudited-financial-results-300857323.html
SOURCE Cango Inc.