CANG - Earnings call transcript Q3 2024

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Operator

Good morning, and good evening, everyone. Welcome to Cango Inc.'s Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Cango. of Director Financial Jansen,

Following management's a session. will remarks, we conduct Q&A prepared

today statements. you begin, safe release, also conference I I to company's which will call forward-looking the to Before refer applies earnings the the as make management in harbor statement

I turning the said, Lin, Mr. call ahead. now Please Cango. of go am that to Jiayuan With CEO

Jiayuan Lin

Language] [Foreign

Hello, everyone, Call. Earnings welcome and to XXXX Cango's Third Quarter

operational and remained operating of million. stable, third primarily of of In quarter XXXX, RMB risk of Cango's efficiency. implementation XX.XX business profit of the cost by driven million million, by highlighted These XX.XX management control performance profit total RMB improved were net and and revenue which overall strategies, our stricter solid a results XX.XX RMB significantly

we risk a and management, postal stability. assessments and asset mechanisms monitory nonperforming low quality reinforced maintaining ensuring and ratio loan effectively For

our As X.X at with MX RMB of loan September approximately MX+ XX, balance was billion X.XX%. and total X.XX% outstanding at

our with quarter, cash not to RMB risk page prioritize of quarter. reduced Cango amounted In total app. Meanwhile, previous strategic enabling and abundant million introduced third provide vehicle updates a increase liabilities the for data, during -- company's in teams vehicle competitive Cango's service the reports increase and used comprehensive of app vehicle billion, condition of of We and detailed conduct inspection vehicle end U-car U-car the vehicles with as a car exposure strengthened inspection and the driving billion, we the inspection assessments vehicle development, and app in an X.X enhancing accumulated and marketplaces We in XXX,XXX each the our to real-time assurance RMB checks quarter. by used we last the third-party rapid cash, end car numerous the from the short-term background vehicle of quarter RMB we total overseas listing growth buyers had fully diverse bad of allowance Cango establishing compared history collaboration and to by UCA with Cango professional close XX% on views, inventory partnerships investments risk supply operations. X.X ensuring also an listings thorough of credit equivalents transparency advantages and debt a for approximately transactions. X.XX covered By

a our buyers variety transport of diverse and to needs. Additionally, better options logistics network nationwide delivery customer meet offers

discounts. a offline Our through online range auctions, community including fosters only and activities, operations team user on-site exclusive engagement online and members of visits

improve collect ensuring refine also our feedback and processes, analyze to we We . continuously service user consistently customer satisfaction.

our used car this make On quarter. we progress where as service, significant to continue for

XXX,XXX registered car than has now AutoCango.com, The March offers used over since more and SKUs its models. views covering over in XXX,XXX car users international XX,XXX different platform, nearly platform page Our accumulated XXXX. XX,XXX . launch used

development provide. and better over To autocango.com's This continuously consistent commitment experience. thanks to information image user reflects drive technological brand serve improvements. both pages Autocango.com updates our and content XXX,XXX content now growth optimizing user to our the improving content Cmap enhance with overall customers our and we engagement increased and

year. exposure. by million content driven short, through also can number our an This autocango.com's optimization is increasing impressions pages results million find search engines or of search has Our development end that boosting in our search to the visibility of SRP efforts positive people means expected changes brand exceeded access have in X surpass engine and engine in website X.XX and this

expand into we continue have purchases. we over from inquiries already to regions overseas regarding vehicle markets, received XXX and As countries .

to and market gain growth. needs to . time, of the on demographics. the develop global achieving different we a strengthen capabilities data autocango.com's, more balanced quality diverse enhancing on meet functionality focus same our to Building target will regions. databased analysis continue will we more scientific in ahead, user of our users Looking and that strategies this accurate a marketing understanding of in we the will foundation, characteristics At

pursuing scale. strategic forward-looking investment on also business, Existing global a opportunities are we actively

focus core projects, competencies an by of network, and markets global projects our vision of leading broader high-quality collaborative company's communication to the companies actively establishing a that aim showcase or will brain We complement on stage. strength innovation and in on participating with strengthening cooperation technological our overseas international overseas development we

our hand for Director, financial to our Tan, to performance Ryan Now will call the I share quarter. who Financial would like this over .

Unknown Executive

and Sun, -- welcome Thanks, Brian Financial to Director Hello, quarter Mr. of am earnings third everyone. our Canal. XXXX call. Ling. I

unless our review all in I a RMB percentage Before comparisons are basis. numbers on otherwise financials, are and that all please year-over-year stated, note terms

That revenues XXXX. earned the XXXX same quarter in guarantee separately XXX guarantee to RMB a from adoption of represented million of RMB a RMB the of of million effect compared January million the third was the third aspect fee the of in income ASC on Total XXX.X period were was contingent XX.X since income with Guarantee in quarter pursuant XXXX. the XXXX. represented noncontingent the of X, which XX.X

XXX.X cost move during period Cost of the million let's in of our and Now quarter. decreased third RMB million the revenue expenses XX.X to from XXXX. the to quarter in on RMB same

of same RMB in of the with percentage to in XXXX million was XX% from third X.X total XX.X% decreased the in and of third Sales of compared X.X XXXX. the revenues, period same million the in marketing RMB quarter a quarter XXXX. period revenue cost As of expenses

expenses XX.X assurance million in compared RMB expenses RMB The same General administrative XXXX. the of development XXXX. in in in Net of the RMB quarter XX.X for RMB same of the quarter on the in XXXX. third quarter in quarter XXXX from We compared XX.X a losses million same same third was risk RMB recovery and XXXX. X.X credit period with XX.X RMB and recorded Research X.X in contingent period XXXX in liabilities on third decreased RMB million XX.X the of gain to X.X third of of was million the operations million with RMB million the Net XXXX. loss of period of million quarter RMB were loss with provision RMB in with XX.X net period income compared the the the in from period million in third same X.X of a million million compared

Non-GAAP period was Net basis, net per third was and and and X.XX, quarter quarter XXXX income per a diluted adjusted quarter the income the RMB XX.X in respectively. basic basic income third On ADS third non-GAAP net and ADS in were of of million. RMB X.XX XX.X XXXX in X.XX% share XXXX the -- diluted in respectively. same and a of net million. X.X, the income RMB were adjusted per

Moving sheet. on our to balance

cash of had XXXX, short-term of company equivalent RMB compared XXX.X XXXX. -- as September RMB XX, XXX.X with and June the As cash XXXX, We billion with September million had as of investments of XX, million compared XXXX. the as of RMB billion X.X X.X June company XX, of XX, RMB

our to are that on current of our between market remarks. RMB XXXX, the now and conditions, total note predicting which XX.X subject reflects quarter and and -- forecast fourth Looking we XX please concludes preliminary our prepared revenues million RMB this views are change. ahead This million operational to to be

now are take to we ready questions. Operator,

Operator

Instructions] [Operator

question go first Joe with from Today's Goldman Emerson comes Sachs. ahead. Please

Unknown Analyst

of of how considering mode reliability vehicle the the taken question ensure does has environment and on future impact And is safety specific business? question recovery the second the what first economy, questions. used the the Chinese X is, assurance to the measures of potential company view macroeconomic the your have quality company costs. I

Unknown Executive

car we Thank positively in you, -- this in and demand market first conditions economic an The in believe drive for well, question, for to growth improvement impact your vehicles recovery, may used boost as our business. or Emerson, the in car their macroeconomic or questions. helps the consumer the moderate people confidence turn purchase specifically for your economic automotive the environment upgrade time, first power, which transactions. stimulates On increase more purchasing upgrade improve, will China's be used market inclined car a

economic continue by quickly the And to strengthening experience changes. we consistency macroeconomic to respond and and operational digital that believe enhancing dynamics We customer our market capabilities, will and leveraging efficiency to indicators potential monitor addition, our to in to exploring market's macroeconomic and services adapt evolving company on opportunities impact actively value-adding can new needs. -- fluctuations the growth meet of mitigate the and potential are we . business

each . and our On areas safety as your question, the with being -- reliability vehicle cost. second over provide mechanical meet inspections use before bacteria, standards professional performance. undergoes such Well, to covering that XXX interior vehicles partners reputed are and set we collaborate of they regularly high-quality ensuring we how listed dealers our and technical ensure or

-- preference enhance information team overall quality. a to key report is we not mileage a also promptly and complaints established condition for but also continuously respond to inspection and for including to each to descriptions processes buyers' . improve Detailed vehicle, such as any have get feedback service dedicated provided limited

Operator

The question from comes . Please CITIC Pingyue Wu Securities. go with ahead. next

Pingyue Wu

plans I and your with and the plan overseas And are markets the does have integrate auto management. company X optimizing first features is, further question for Cango's for to questions how what services? the the

terms My second control performance. management question will is financial the and and improve and to what of impact measures strategies how improve and company's these risk go taken continue to your measures cost can efficiency management. structure operational on in risk control future

Unknown Executive

secure markets more X policies and partnerships research actively we support in localized countries and examined question, for clearance first we resources import clearance established date. comprehensive to of African engaging custom your with example, On are various to have overseas partners customs the currently thoroughly nations and -- local agency conducting on

business such to logistics, clients a others. is debt customs agency services among and clearance in net in gradually Our to areas key framework Africa providing develop potential in as at

social media our international to other plan we to showcase image brand our feasibility. Additionally, enhance actively platforms through and

offer access be market in By experience will XX worldwide AutoCango.com user also ensure and our to further expanding available can support will We early seamlessly that our improving reach. users XXXX, languages, multilingual services.

direct In improvement, introducing functionality feature are a of for car the market terms used sourcing AutoCango.com. Chinese on we

to used enabling and access on also the We information condition vehicles enhancing further of are but users allow to [indiscernible]. overseas quickly queries, online prices

infusing are not with mean, our Shanghai but providing skills students perspective in recruit to dedicated well, capabilities our We developing plan to I with experience communication international internship blood over them team programs international valuable operational in we enhance fresh including global infusing for an overseas practical talent with and while cross-cultural to insights. least, -- Last markets.

create diverse clients competitive better the advance is backgrounds team that Our efforts. cultural globalization from and company's goal various and globally can serve to a

streamlined disciplined to your spending. risk budget Well, processes, systems and management strict have On on firstly, question automated enforce cost control, we business and our ensure approval second workflows on cost control management strategies.

significantly replace infrastructure, leveraged costs. hardware also investments legacy We and reducing cloud services maintenance IT computing to

regular service conduct elevate In evaluations we performance procurement team's out have We with minimize suppliers more we and programs upgraded addition, top-tier optimized by pricing fostering favorable on-time Moreover, and quality. the to development expertise our allocation suppliers and costs. have partnerships and secured to strategically phase workforce terms. training underperforming

In risk audits internal management to a identify we terms of established levels various issues. system robust internal that strengthen control potential management, ownership at rectify defines risk and promptly and clearly have

macroeconomic and closely regulations, and Additionally, all business. we in necessary. our changes in as regulations and that monitor on developments with strategy and . the operations we corporate impact follow our the ensuring laws conditions comply to policies closely and adjusting their relevant

for base of improvements profit balance foundation cash financial measures company's statements, performance improved these in is have The impact enhanced a net sustained development. sheet the the . reflected all strategic and the solid of laid flow company's in positive

the all today. session. Have a you Cango's is my That joining once Earnings Quarter for That great concludes XXXX Thank question-and-answer side. day. you. Conference again Thank from Call Third

Thank all call. us. joining And that earnings you closes for today's

Cango (CANG) 5 Nov 242024 Q3 Earnings call transcript