Cango Inc. (NYSE:CANG) Q4 2023 Earnings Conference Call March 11, 2024 9:00 PM ET
Company Participants
Jiayuan Lin - CEO
Yongyi Zhang - CFO
Conference Call Participants
Pingyue Wu - Citic Securities
Operator
Good morning and good evening, everyone. Welcome to Cango Inc.'s Fourth Quarter and Fiscal Year 2023 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. Yongyi 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 am 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 fourth quarter 202 earnings call. 2023 proved to be a year of resilience in the face of headwinds. While a long-term economic recovery remained on the horizon, the confluence of domestic and international factors caused a temporary slowdown. This resulted in slower than anticipated growth and dampened consumer confidence.
In the automotive sector, the traditional vehicle market contracted steadily, while new energy vehicles or NEVs experienced a surge in market share, sparking fierce competition within the segment.
Price wars became a norm in the auto sales landscape triggering a necessary restructuring within the industry. This shift favored larger players and accelerated a survival of the fittest scenario. Dealerships, particularly smaller ones in lower-tier markets faced significant operational challenges, especially in the latter half of the year.
Despite a challenging market environment in 2023, Cango delivered total revenue of RMB130 million in Q4 and RMB1.7 billion for the full year. The company strategically reduced its total outstanding financing balance of facilitated-financing transactions to approximately RMB10 billion by year-end.
Our quarterly metrics remain stable with M1+ and M3+ delinquency rates at 2.66% and 1.37%, respectively, reducing our risk disposure further. And to mitigate this dynamic market, Cango implemented strict cost reduction measures and efficiency enhancements, successfully lowering operating expenses.
Notably, Cango maintains a solid financial position backed by robust liquidity and ample cash reserves. As of December 31st, 2023, the company posted RMB3.33 billion in cash, cash equivalents, and showed an investment as well as restricted cash, that is bank deposits held for shortened investments. This strong financial foundation provides a springboard for the sustainable growth of our existing businesses and fuels our exploration of new ventures.