Cango (CANG) Q2 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 9, 2026 astatine 8:55 AM CDT 12 min read

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Thursday, August 29, 2024 astatine 9 p.m. ET

• Chief Executive Officer — Jiayuan Lin

• Chief Financial Officer — Yongyi Zhang

Jiayuan Lin: Hello everyone and invited to Cango's 2nd 4th 2024 net call. In the 2nd 4th of 2024, the automotive marketplace remains sluggish, presenting important challenges for the industry. According to the China Association of Automobile Manufacturers, conveyance accumulation and income successful June reached 2.500 cardinal and 2.552 cardinal units, respectively, reflecting a year-on-year diminution of 2.1% and 2.7%, respectively. Passenger conveyance income successful June fell by 2.3% year-on-year. Although income of caller vigor vehicles proceed to outpace the market, their maturation has not been capable to change the industry's wide downward trajectory. In effect to these challenges, we proceed to instrumentality strict outgo power and hazard absorption strategies, reinforcing our fiscal stableness done disciplined disbursal absorption and outgo ratio measures.

Meanwhile, we support meticulous oversight for existent assets and liabilities, intimately monitoring our hazard exposure. As of June 30, our full outstanding indebtedness equilibrium stood astatine astir RMB6.2 cardinal with M1+ astatine 2.93% and M3+ astatine 1.57%. Our recognition hazard vulnerability has been decreased to a debased level with lone RMB2.7 cardinal of outstanding equilibrium of loans wherever the institution bears recognition risks person not been provided with afloat atrocious indebtedness allowance, oregon afloat hazard assurance liabilities. As the caller car marketplace grows [ph], we are progressively recognizing the utilized car markets immense imaginable opportunities. As such, we person further streamlined our concern processes, enhanced work quality, and strengthened the lawsuit experience.

Over the past quarter, we focused connected enhancing the competitiveness of Cango U-car by ensuring a accordant proviso of high-quality vehicles, optimizing trader experience, I mean, optimizing trader work experiences and proviso concatenation management, and improving the convenience and information of cross-regional deliveries, which drove dependable concern growth. By the extremity of the 2nd quarter, our Cango U-car app has accumulated implicit 130,000 leafage views. During the quarter, we facilitated the transaction of 266 vehicles and successfully auctioned 124 vehicles crossed our platform. Meanwhile, we identified and connected boarded caller partners with a beardown estimation and abundance conveyance inventories to guarantee a divers scope of listings connected Cango U-car.

To heighten operational efficiency, we implemented rigorous absorption practices, refined cardinal processes specified arsenic conveyance listing, transaction facilitation and lawsuit service. These efforts person accrued assets utilization ratio and improved wide operational effectiveness. We besides established strategical partnerships with galore large utilized car markets nationwide successful the 2nd 4th enabling real-time synchronization of their conveyance listings with Cango U-car to amended conscionable users' circumstantial demands. Currently, Cango U-car holds implicit 260,000 conveyance listings. By integrating extended offline conveyance inventory, we person efficaciously enhanced idiosyncratic engagement connected the Cango U-car app. We person further enriched our idiosyncratic acquisition by establishing exclusive subordinate communities done backstage [indiscernible] management, regularly providing members with benefits and lawsuit updates to boost idiosyncratic engagement and loyalty.