Cango Inc
Q1 2022 Earnings Call
Jun 09, 2022, 9:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning and good evening, everyone. Welcome to Cango, Inc.'s first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website.
Joining us today are Mr. Jiayuan Lin, chief executive officer; and Mr. Michael Zhang, chief financial officer of the company. Following management's prepared remarks, we will conduct the Q&A session.
Before we begin, I refer you to the safe harbor statement in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements. With that said, I'm now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir.
Jiayuan Lin -- Chief Executive Officer
[Foreign language]
Unknown speaker
Hi, everyone. Welcome to Cango's first quarter 2022 earnings call.
Jiayuan Lin -- Chief Executive Officer
[Foreign language]
Unknown speaker
The global situation brought by the pandemic and very large economic and geopolitical uncertainties can be characterized as complex and evolving during the first quarter. Domestically in China, we are also facing a challenging macro environment. In particular, the outbreak of omicron has brought cross-nation since March with lockdowns in certain regions, bringing great pressure and impact on the society as a whole, including individuals and businesses alike. The automotive industry is still in the shadow of a chip shortage and placing the disruption of industrial production and supply chain caused by the COVID-19 resurgence.
On the supply side, auto companies Changan and [Inaudible] have stopped manufacturing a large scale since mid-March. Although many OEMs have accelerated the resumption of operation and manufacturing since April, the overall decline in auto production is still difficult to reverse. A greater challenge comes from the demand side. Consumer confidence has been severely impacted and their enthusiasm for purchasing cars has dropped sharply.
Jiayuan Lin -- Chief Executive Officer
[Foreign language]
Unknown speaker
Since the beginning of the year, the overall market environment has been tougher than we had anticipated. Phasing decline in consumer credit level and repayment ability caused by the economic downturn and evolving regulatory regime, we have been proactively making strategic adjustments since last year, shrinking the size of our traditional automotive financing facilitation business, strengthening risk control measures, and enhancing efforts within overdue asset collection to strictly control risks. At the same time, we have established a new strategic goal, which is to focus on building a tech-enabled car trading platform with car trading transaction business at its core and monetizing through multiple channels, including financing and insurance.