Cango Inc. (CANG) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 29, 2022 8:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and good evening, everyone. Welcome to the Cango, Inc.'s Third 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. Yong Yi 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

[Foreign Language]

Hello everyone and welcome to Cango's third quarter 2022 earnings call.

[Foreign Language]

In the third quarter market conditions in China's automotive industry remain challenging due to COVID-19 resurgences across the country and the complex external operating environment. However, the change in consumption behavior brought on by the pandemic with consumers shifting to online shopping, it's reshaping the transaction model of the whole automotive industry. Beyond that [indiscernible] policies released in the last two quarters, that if it imposed new and used car sales have not only boosted confidence among industry participants, but also improved the order of the industry, laying a solid foundation for the sustainable development and prosperity of China's automotive industry.

[Foreign Language]

In the face of these evolving market trends and regulatory changes, we remain focused on our car trading transaction business during the third quarter and continue to implement our dual platform strategy covering both the new and used car markets. We further improved our service capabilities and enhanced our supply chain stickiness through service standardization taking full advantage of our over 10 years of industry expertise, deep insights into the lower tier markets and outstanding supply chain support.

Meanwhile, we continue to empower downstream medium to small sized dealers with high margin product offerings to further strengthen our platforms instrumental row as customer acquisition and delivery channel. We delivered a solid operational performance in the third quarter with our total revenues reaching RMB 420 million, of which revenues from car trading transactions was about 350 million, accounting for over 83% of total revenues.