Cango Inc. Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results

SHANGHAI, March 7, 2025 -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin mining company with an automotive transaction service in China, today announced its unaudited financial results for the fourth quarter and full year of 2024.

Fourth Quarter 2024 Financial and Operational Highlights

• Total revenues were RMB668.0 million (US$91.5 million), a substantial increase from RMB130.2 million in the same period of 2023. This surge primarily attributable to the launch of our Bitcoin mining business, which generated RMB653.0 million (US$89.5 million) in the quarter.

• A total of 933.8 Bitcoins were mined during the quarter. The average cost to mine Bitcoin, excluding depreciation of mining machines, was US$67,769.9 per Bitcoin in the quarter.

• Net income was RMB55.9 million (US$7.7 million) in the quarter compared with net loss of RMB103.8 million in the same period of 2023.

• Total balance of cash and cash equivalents and short-term investments were RMB2.5 billion (US$345.3 million) as of December 31, 2024.

• The total outstanding balance of financing transactions the Company facilitated was RMB3.9 billion (US$533.0 million) as of December 31, 2024. Our credit risk exposure has decreased, with only RMB1.1 billion (US$ 148.2 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 3.24% and 1.78%, respectively, as of December 31, 2024, compared with 3.17% and 1.76%, respectively, as of September 30, 2024.

Full Year 2024 Financial and Operational Highlights

• Total revenues were RMB804.5 million (US$110.2 million) compared with RMB1.7 billion in the full year of 2023.

• Revenue from the Bitcoin mining business was RMB653.0 million (US$89.5 million), despite the business’s very recent launch in November 2024.

• Net income was RMB299.8 million (US$41.1 million) compared with a net loss of RMB37.9 million in the full year of 2023.

Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, “2024 was a milestone year for Cango, marking another pivotal transformation and growth phase for the Company. While we continued to develop our traditional automotive business, we also capitalized on the growing opportunities in the cryptocurrencies sector and strategically expanded into Bitcoin mining. In early November 2024, we announced our acquisition of on-rack Bitcoin mining machines with an aggregate hashrate of 50 exahashes (EH) for a total purchase price of US$400 million. By November 15, we had taken delivery of 32 EH of mining power, making us the third-largest Bitcoin miner globally. In just two months, our Bitcoin mining business generated revenues of RMB653.0 million, with a total of 933.8 Bitcoins mined as of the end of 2024.”

“Driven by the Bitcoin mining business’ initial success, Cango recorded total revenues of RMB668 million in the fourth quarter of 2024, representing a year-over-year surge of over 400%. Given this field’s immense growth potential, we have refined our transformation efforts and placed "Energy + Computing Power" at the core of our future development strategy. Meanwhile, we will maintain a strong focus on our used car exporting business, aiming to become a leading asset-light gateway for China’s used car exports. Looking ahead to 2025, leveraging our solid foundation in the cryptocurrencies sector, we are strategically positioning ourselves for further expansion across the digital economy value chain, creating sustainable value for all our stakeholders,” concluded Mr. Lin.

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, “We are pleased to close 2024 with strong financial performance, driven by our strategic entry into the Bitcoin mining business. In 2024, we achieved a net income of RMB 299.8 million, marking a turnaround from the net loss recorded in 2023. Building on the solid foundation we have established in the Bitcoin mining business, we will continue to assess and pursue new opportunities to expand our capacity while prioritizing cost-effective and environmentally sustainable energy solutions to optimize our cost structure. As we move into 2025, we are confident that Cango is well-positioned to embark on its next phase of growth.”

Fourth Quarter 2024 Financial Results

REVENUES

Total revenues in the fourth quarter of 2024 were RMB668.0 million (US$91.5 million) compared with RMB130.2 million in the same period of 2023. 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 RMB653.0 million (US$89.5 million), with a total of 933.8 Bitcoins mined as of the end of 2024.

Revenue from automotive trading related income[1] was RMB15.0 million (US$2.1 million), compared with RMB130.2 million in the same period of 2023.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the fourth quarter of 2024 were RMB645.5 million (US$88.4 million) compared with RMB159.1 million in the same period of 2023.

·        Cost of revenue in the fourth quarter of 2024 increased to RMB550.5 million (US$75.4 million) from RMB110.9 million in the same period of 2023. The year-over-year increase was primarily driven by the cost of the Bitcoin mining business. As a percentage of total revenues, cost of revenue in the fourth quarter of 2024 was 82.4% compared with 85.1% in the same period of 2023.

·        Sales and marketing expenses in the fourth quarter of 2024 decreased to RMB2.2 million (US$0.3 million) from RMB4.4 million in the same period of 2023. As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2024 were 0.3% compared with 3.4% in the same period of 2023.

·        General and administrative expenses in the fourth quarter of 2024 increased to RMB127.9 million (US$17.5 million) from RMB45.6 million in the same period of 2023. As a percentage of total revenues, general and administrative expenses in the fourth quarter of 2024 were 19.1% compared with 35.0% in the same period of 2023.

·        Research and development expenses in the fourth quarter of 2024 decreased to RMB1.3 million (US$0.2 million) from RMB7.3 million in the same period of 2023. As a percentage of total revenues, research and development expenses in the fourth quarter of 2024 were 0.2% compared with 5.6% in the same period of 2023.

·        Net loss on contingent risk assurance liabilities in the fourth quarter of 2024 was RMB4.6 million (US$0.6 million), compared with RMB22.2 million in the same period of 2023.

·        Net recovery on provision for credit losses in the fourth quarter of 2024 was RMB66.1 million (US$9.1 million), compared with RMB31.2 million in the same period of 2023.

INCOME FROM OPERATIONS

Income from operations in the fourth quarter of 2024 was RMB22.5 million (US$3.1 million) compared with loss from operations of RMB28.9 million in the same period of 2023.

NET INCOME

Net income in the fourth quarter of 2024 was RMB55.9 million (US$7.7 million) compared with net loss of RMB103.8 million in the same period of 2023. Non-GAAP adjusted net income in the fourth quarter of 2024 was RMB59.2 million (US$8.1 million) compared with non-GAAP adjusted net loss of RMB99.2 million in the same period of 2023. Non-GAAP adjusted net loss 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 (the “ADS”) in the fourth quarter of 2024 were RMB0.54 (US$0.07) and RMB0.48 (US$0.07), respectively. Non-GAAP adjusted basic and diluted net income per ADS in the fourth quarter of 2024 were RMB0.57 (US$0.08) and RMB0.51 (US$0.07), respectively. Each ADS represents two Class A ordinary shares of the Company.

Full Year 2024 Financial Results

REVENUES

Total revenues in the full year of 2024 were RMB804.5 million (US$110.2 million) compared with RMB1.7 billion in the full year of 2023. The year-over-year decrease was primarily due to decreased automotive trading related income2, partially offset by the revenue contribution from the Bitcoin mining business launched in November 2024.

Revenue from the Bitcoin mining business was RMB653.0 million (US$89.5 million) with a total of 933.8 Bitcoins mined as of the end of 2024.

Revenues from automotive trading related income1 was RMB151.5 million (US$20.8 million) compared with RMB1.7 billion in the full year of 2023.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the full year of 2024 were RMB625.6 million (US$85.7 million) compared with RMB1.8 billion in the full year of 2023.

·          Cost of revenue in the full year of 2024 decreased to RMB629.4 million (US$86.2 million) from RMB1.5 billion in the full year of 2023. The year-over-year decline was primarily due to the reduced business scale of the automotive trading related business, partially offset by rising costs associated with the Bitcoin mining business. As a percentage of total revenues, cost of revenue in the full year of 2024 was 78.2% compared with 88.8% in the full year of 2023.

·        Sales and marketing expenses in the full year of 2024 decreased to RMB13.1 million (US$1.8 million) from RMB38.9 million in the full year of 2023. As a percentage of total revenues, sales and marketing expenses in the full year of 2024 were 1.6% compared with 2.3% in the full year of 2023.

·        General and administrative expenses in the full year of 2024 increased to RMB250.2 million (US$34.3 million) from RMB157.0 million in the full year of 2023. As a percentage of total revenues, general and administrative expenses in the full year of 2024 were 31.1% compared with 9.2% in the full year of 2023.

·        Research and development expenses in the full year of 2024 decreased to RMB5.5 million (US$0.7 million) from RMB30.1 million in the full year of 2023. As a percentage of total revenues, research and development expenses in the full year of 2024 were 0.7% compared with 1.8% in the full year of 2023.

·        Net gain on contingent risk assurance liabilities in the full year of 2024 was RMB27.8 million (US$3.8 million), compared with net loss of RMB25.6 million in the full year of 2023.

·        Net recovery on provision for credit losses in the full year of 2024 was RMB269.9 million (US$37.0 million), compared with RMB136.5 million in the full year of 2023.

INCOME FROM OPERATIONS

Income from operations in the full year of 2024 was RMB178.9 million (US$24.5 million) compared with loss from operations of RMB73.8 million in the full year of 2023.

NET INCOME

Net income in the full year of 2024 was RMB299.8 million (US$41.1 million) compared with net loss of RMB37.9 million in the full year of 2023. Non-GAAP adjusted net income in the full year of 2024 was RMB316.9 million (US$43.4 million) compared with Non-GAAP adjusted net income of RMB0.6 million in the full year of 2023. 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 (the “ADS”) in the full year of 2024 were RMB2.88 (US$0.39) and RMB2.57 (US$0.35), respectively. Non-GAAP adjusted basic and diluted net income per ADS in the full year of 2024 were RMB3.04 (US$0.42) and RMB2.72 (US$0.37), respectively. Each ADS represents two Class A ordinary shares of the Company.

BALANCE SHEET

·        As of December 31, 2024, the Company had cash and cash equivalents of RMB1.3 billion (US$176.7 million) compared with RMB691.8 million as of September 30, 2024.

·        As of December 31, 2024, the Company had short-term investments of RMB1.2 billion (US$168.7 million) compared with RMB3.1 billion as of September 30, 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 this quarter. 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.

[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.