Cango Inc. (CANG) Q3 2024 Earnings Call Transcript

Cango Inc. (NYSE:CANG) Q3 2024 Earnings Conference Call November 4, 2024 8:00 PM ET

Company Participants

Jiayuan Lin – Founder and CEO
Ruiyan – Finance Director

Conference Call Participants

Emerson Zhao – Goldman Sachs
Pingyue Wu – CITIC Securities

Operator

Good morning, and good evening, everyone. Welcome to Cango Inc.’s Third Quarter 2024 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 Ms. Ruiyan, Financial Director of Cango. Following management’s prepared remarks, we will conduct a Q&A session. Before I 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 am now turning the call to Mr. Jiayuan Lin, CEO of Cango. Please go ahead.

Jiayuan Lin

[Foreign Language].

Hello, everyone, and welcome to Cango’s third quarter 2024 earnings call.

[Foreign Language].

In the third quarter of 2024, Cango’s overall business performance remained stable, highlighted by total revenue of RMB26.95 million, and operating profit of RMB35.24 million and a net profit of RMB67.88 million. These solid results were primarily driven by our implementation of stricter cost control and risk management strategies, which significantly improved operational efficiency.

[Foreign Language].

For postal management, we reinforced monitory mechanisms and risk assessments effectively maintaining a low nonperforming loan ratio and ensuring asset quality and stability. As of September 30, our total outstanding loan balance was approximately RMB4.8 billion with M1+ at 3.17% and M3+ at 1.76%. We also reduced our credit risk exposure not fully covered by bad debt allowance for risk assurance liabilities to RMB1.7 billion, the company’s total cash, cash equivalents and short-term investments amounted to approximately RMB3.8 billion, an increase of RMB89.27