EX-99.1 2 tm2515076d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

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 RMB 1.1 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.

 

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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 income1 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.

 

 

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.

 

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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.

 

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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 http://ir.cangoonline.com.

 

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: www.cangoonline.com.

 

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.

 

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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.

 

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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 Liu

Cango Inc.

Tel: +86 21 3183 5088 ext.5581

Email: ir@cangoonline.com

 

Helen Wu

Piacente Financial Communications

Tel: +86 10 6508 0677

Email: ir@cangoonline.com

 

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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,
2024		   As of March 31,
2025		 
   (Audited)   (Unaudited)   (Unaudited) 
   RMB   RMB   US$ 
ASSETS:               
Current assets:               
Cash and cash equivalents   1,289,629,981    2,515,712,358    346,674,433 
Restricted cash - current   10,813,746    11,210,722    1,544,879 
Short-term investments, net   1,231,171,751    5,188,899    715,049 
Accounts receivable, net   22,991,951    15,801,108    2,177,451 
Finance lease receivables - current, net   20,685,475    19,332,969    2,664,154 
Financing receivables, net   5,685,096    3,722,236    512,938 
Short-term contract asset, net   33,719,944    19,860,987    2,736,917 
Prepayments and other current assets, net   226,352,004    362,016,043    49,887,145 
Receivable for bitcoin collateral, net   617,057,765    1,464,654,137    201,834,737 
Total current assets   3,458,107,713    4,417,499,459    608,747,703 
                
Non-current assets:               
Restricted cash - non-current   287,425,602    161,939,581    22,315,871 
Long-term investment   -    400,000,000    55,121,474 
Mining machines, net   1,772,319,041    1,619,608,093    223,187,963 
Property and equipment, net   6,634,509    6,205,894    855,195 
Intangible assets, net   47,425,617    47,259,479    6,512,530 
Long-term contract asset, net   17,551,040    348,864    48,075 
Finance lease receivables - non-current, net   9,309,227    3,648,111    502,723 
Operating lease right-of-use assets, net   40,788,977    38,789,517    5,345,338 
Other non-current assets, net   329,761,833    359,761,832    49,576,506 
Total non-current assets   2,511,215,846    2,637,561,371    363,465,675 
TOTAL ASSETS   5,969,323,559    7,055,060,830    972,213,378 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities:               
Short-term debts   124,584,293    790,393,522    108,919,140 
Accrued expenses and other current liabilities   1,348,300,779    1,999,990,186    275,606,016 
Deferred guarantee income   11,787,712    7,974,712    1,098,945 
Contingent risk assurance liabilities   31,190,425    20,979,625    2,891,070 
Income tax payable   311,130,341    314,258,152    43,305,931 
Short-term lease liabilities   7,912,420    7,639,264    1,052,719 
Total current liabilities   1,834,905,970    3,141,235,461    432,873,821 
                
Non-current liabilities:               
Deferred tax liability   10,724,133    10,724,133    1,477,825 
Long-term operating lease liabilities   37,044,466    35,769,502    4,929,169 
Other non-current liabilities   19,118    18,131    2,499 
Total non-current liabilities   47,787,717    46,511,766    6,409,493 
Total liabilities   1,882,693,687    3,187,747,227    439,283,314 
                
Shareholders’ equity               
Ordinary shares   199,087    199,087    27,434 
Treasury shares   (756,517,941)   (754,199,105)   (103,931,416)
Additional paid-in capital   4,725,877,432    4,749,907,787    654,554,796 
Accumulated other comprehensive income   152,882,024    114,572,087    15,788,456 
Accumulated deficit   (35,810,730)   (243,166,253)   (33,509,206)
Total Cango Inc.’s  equity   4,086,629,872    3,867,313,603    532,930,064 
Total shareholders' equity   4,086,629,872    3,867,313,603    532,930,064 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   5,969,323,559    7,055,060,830    972,213,378 

 

 

 

 

CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)

 

   Three months ended March 31 
   2024   2025 
   (Unaudited)   (Unaudited)   (Unaudited) 
   RMB   RMB   US$ 
Revenues   64,422,494    1,053,883,166    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   30,259,581    4,043,650    557,230 
Leasing income   4,939,712    2,088,483    287,801 
After-market services income   11,637,788    776,803    107,046 
Automobile trading income   3,445,040    70,796    9,756 
Others   319,351    1,465,688    201,977 
Operating cost and expenses:               
Cost of revenue   29,058,868    955,091,082    131,615,070 
Sales and marketing   3,548,273    415,981    57,324 
General and administrative   37,923,531    92,536,718    12,751,901 
Research and development   1,098,105    324,991    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 operations   74,151,047    (155,472,182)   (21,424,639)
Interest income   16,503,965    2,152,469    296,618 
Net investment income   10,984,524    -    - 
Interest expense   -    (9,517,781)   (1,311,585)
Foreign exchange gain (loss), net   131,689    (818,002)   (112,724)
Other income   832,551    13,609,872    1,875,491 
Other expenses   (535,390)   (54,180,931)   (7,466,332)
Net income (loss) before income taxes   102,068,386    (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 shareholders   90,026,786    (207,355,523)   (28,574,354)
Earnings (losses) per ADS attributable to ordinary shareholders:               
Basic   0.85    (2.00)   (0.28)
Diluted   0.80    (2.00)   (0.28)
Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:               
Basic   105,521,018    103,783,087    103,783,087 
Diluted   112,786,810    103,783,087    103,783,087 
                
Other comprehensive income (loss), net of tax               
Foreign currency translation adjustment   20,894,928    (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 shareholders   110,921,714    (245,665,460)   (33,853,604)

 

 

 

 

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 
   2024   2025 
   (Unaudited)   (Unaudited)   (Unaudited) 
   RMB   RMB   US$ 
Net (loss) income   90,026,786    (207,355,523)   (28,574,354)
                
Add: Interest expense   -    9,517,781    1,311,585 
Add: Income tax expenses   12,041,600    3,128,968    431,183 
Add: Depreciation and amortization   927,576    155,503,915    21,429,012 
Cost of revenue   -    154,944,205    21,351,882 
General and administrative   879,591    559,710    77,130 
Research and development   47,985    -    - 
                
Add: Other expenses   535,390    54,180,931    7,466,332 
Less: Other income   832,551    13,609,872    1,875,491 
                
Add: Share-based compensation expenses   5,717,422    26,187,822    3,608,778 
Cost of revenue   254,391    58,766    8,098 
Sales and marketing   1,046,659    339,524    46,788 
General and administrative   4,416,372    25,783,442    3,553,053 
Research and development   -    6,090    839 
                
Non-GAAP adjusted EBITDA   108,416,223    27,554,022    3,797,045 
Non-GAAP adjusted EBITDA attributable to Cango Inc.’s shareholders   108,416,223    27,554,022    3,797,045