Use of Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses Non-GAAP adjusted net income (loss), a Non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the Non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income (loss) as net income (loss) excluding share-based compensation expenses. The Company presents the Non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income (loss) enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the Non-GAAP measure facilitates investors' assessment of its operating performance.

Non-GAAP adjusted net income (loss) is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using Non-GAAP adjusted net income (loss) is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of Non-GAAP adjusted net income (loss). Further, the Non-GAAP measure may differ from the Non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Cango's Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Business Outlook" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Yihe Liu

Cango Inc.

Tel: +86 21 3183 5088 ext.5581

Email: ir@cangoonline.com

Helen Wu

Piacente Financial Communications

Tel: +86 10 6508 0677

Email: ir@cangoonline.com

 
  CANGO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET 
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number 
                     of shares and per share data 
                         As of December 
                            31, 2023        As of September 30, 2024 
                              RMB              RMB            US$ 
 
ASSETS: 
Current assets: 
Cash and cash 
 equivalents               1,020,604,191    691,818,800     98,583,390 
Restricted cash - 
 current - bank 
 deposits held for 
 short-term 
 investments               1,670,006,785              -              - 
Restricted cash - 
 current - others             14,334,937     12,816,134      1,826,284 
Short-term 
 investments                 635,070,394  3,082,865,458    439,304,813 
Accounts receivable, 
 net                          64,791,709     25,529,710      3,637,955 
Finance lease 
 receivables - 
 current, net                200,459,435     47,126,581      6,715,484 
Financing 
 receivables, net             29,522,035      8,535,562      1,216,308 
Short-term contract 
 asset                       170,623,200     55,923,363      7,969,015 
Prepayments and other 
 current assets               78,606,808     29,955,505      4,268,625 
Total current assets       3,884,019,494  3,954,571,113    563,521,874 
 
Non-current 
assets: 
Restricted cash - 
 non-current                 583,380,417    461,367,450     65,744,336 
Property and 
 equipment, net                8,239,037      6,586,202        938,526 
Intangible assets             48,373,192     47,634,678      6,787,887 
Long-term contract 
 asset                        36,310,769        448,353         63,890 
Finance lease 
 receivables - 
 non-current, net             36,426,617      9,761,388      1,390,987 
Operating lease 
 right-of-use assets          47,154,944     42,815,154      6,101,111 
Other non-current 
 assets                        4,705,544      4,104,803        584,930 
Total non-current 
 assets                      764,590,520    572,718,028     81,611,667 
                       -----------------  -------------  ------------- 
TOTAL ASSETS               4,648,610,014  4,527,289,141    645,133,541 
                       =================  =============  ============= 
 
LIABILITIES AND 
SHAREHOLDERS' 
EQUITY 
Current 
liabilities: 
Short-term debts              39,071,500              -              - 
Long-term debts - 
 current                         926,237        649,300         92,525 
Accrued expenses and 
 other current 
 liabilities                 206,877,626    130,806,077     18,639,717 
Deferred guarantee 
 income                       86,218,888     20,638,251      2,940,927 
Contingent risk 
 assurance 
 liabilities                 125,140,991     33,692,222      4,801,103 
Income tax payable           311,904,279    311,235,998     44,350,775 
Short-term lease 
 liabilities                   7,603,380      8,015,363      1,142,180 
Total current 
 liabilities                 777,742,901    505,037,211     71,967,227 
                       -----------------  -------------  ------------- 
 
Non-current 
liabilities: 
Long-term debts                  712,023        470,216         67,005 
Deferred tax 
 liability                    10,724,133     10,724,133      1,528,177 
Long-term operating 
 lease liabilities            42,228,435     39,375,249      5,610,928 
Other non-current 
 liabilities                     226,035        140,038         19,955 
Total non-current 
 liabilities                  53,890,626     50,709,636      7,226,065 
                       -----------------  -------------  ------------- 
Total liabilities            831,633,527    555,746,847     79,193,292 
                       -----------------  -------------  ------------- 
 
Shareholders' 
equity 
Ordinary shares                  204,260        204,260         29,107 
Treasury shares            (773,130,748)  (782,800,080)  (111,548,119) 
Additional paid-in 
 capital                   4,813,679,585  4,747,032,306    676,446,692 
Accumulated other 
 comprehensive 
 income                      111,849,166     98,802,836     14,079,291 
Accumulated deficit        (335,625,776)   (91,697,028)   (13,066,722) 
                       -----------------                 ------------- 
Total Cango 
 Inc.'s equity             3,816,976,487  3,971,542,294    565,940,249 
                       -----------------  -------------  ------------- 
Total shareholders' 
 equity                    3,816,976,487  3,971,542,294    565,940,249 
                       -----------------  -------------  ------------- 
TOTAL LIABILITIES AND 
 SHAREHOLDERS' 
 EQUITY                    4,648,610,014  4,527,289,141    645,133,541 
                       =================  =============  ============= 
 
 
                                               CANGO INC. 
                         UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF 
                                          COMPREHENSIVE INCOME 

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