Cango Inc. (CANG) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

March 9, 2023 8:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and good evening, everyone. Welcome to Cango, Inc.'s Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions] 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 be making 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

Hello, everyone, and welcome to Cango's Fourth Quarter and Full Year 2022 Earnings Call.

2022 was a challenging year, multiple headwinds, including COVID pandemic, supply chain disruptions and chip shortages continue to create significant uncertainties in the auto industry. In addition, political and economic turmoils worldwide have profoundly impacted all aspects of society, including China's auto industry. Despite this complex and challenging external environment, Cango has stepped a progress along its new strategic road map, demonstrating strong resilience.

Cango underwent significant transformations in 2022. For the new car trading transaction business, we launched our Cango Haoche APP in June following the successful debut of the Cango Haoche mini-program in 2021. We gradually integrated an array of standardized specific products into the multisystem all-in-one platform in October, providing dealers with one-stop comprehensive car trading solution centering on car sources.

For the used car trading transaction business, we launched our Cango U-Car mini-program in May and developed our Cango U-Car APP at the end of 2022. Cango U-Car APP encompass functions such as vehicle sourcing, online car research, online options, transaction support services and other digital services to meet the diverse needs of used car dealers.

As a result, our automotive transaction service platform covering both the new car and used car market has been largely established. Strong market feedback and dealer demand testifies to the validity of our transformation into a transaction service platform with [indiscernible] new proposition.

Total revenues in the fourth quarter of 2022 were RMB 490 million, up 17% quarter-over-quarter. Revenue from car trading transaction was RMB 430 million, up 24.2% quarter-over-quarter, accounting for over 88% of total revenues. The whole year total revenues were RMB 1.98 billion. Of which, revenue from car trading transactions was RMB 1.6 billion, accounting for over 80%.