Cango Inc. Announces Successful Issuance of RMB964 Million Asset-Backed Securities by Subsidiary

SHANGHAI, March. 16, 2020 -- Cango, Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced that its subsidiary Shanghai Chejia Financial Leasing Co. Ltd. (“Chejia”) completed the issuance (the “Issuance”) of RMB964 million asset-backed securities (“ABS”). The Issuance currently represents the Company’s largest ABS issuance to date, and the ABS was listed on the Shenzhen Stock Exchange on March. 6, 2020. This is the Company’s first ABS issuance under its Chejia Auto Financial Leasing Phase 1 - 5 ABS Special Plan (the “Plan”). A shelf offering of up to RMB3 billion ABS under the Plan was approved by the Shenzhen Stock Exchange in January 2020.

The shelf offering mechanism, a financing initiative by the Shenzhen Stock Exchange to support the growth of leading companies in the auto finance industry, enabled the Company’s subsidiary Chejia to register a new ABS issuance and issue portions of the offering over a certain time period without re-registering the offering. The successful Issuance under the shelf offering mechanism is expected to further diversify the Company’s financing arrangements and improve the efficiency of its capital operations. In addition, the Issuance is also a testament to the recognition of Cango’s proven business model and industry-leading asset management capabilities from PRC securities regulators and the capital market as a whole.

The ABSs are backed by assets from Chejia’s financial leasing receivable and other related security interests under Chejia’s lease contracts with its lessees, which have consistently delivered strong cash flows. The ABSs are divided into (i) a senior A class in the principal amount of RMB750 million, rated “AAA” by China Lianhe Credit Rating Co., Ltd. (“Lianhe Credit Rating”) and accounting for approximately 77.8% of the Issuance, (ii) a senior B class in the principal amount of RMB80 million, rated “AA+” by Lianhe Credit Rating and accounting for approximately 8.3% of the Issuance, and (iii) a subordinated class in the principal amount of RMB134 million, accounting for approximately 13.9% of the Issuance.

"The successful issuance of our asset-backed securities highlights our ability to leverage the domestic capital market,” commented Mr. Jiayuan Lin, Chief Executive Officer of Cango. “The Issuance was completed at the peak of the coronavirus outbreak, which has adversely and significantly impacted the operations of all industries in China, including automotive-related industries. Following the outbreak, we immediately established a special task force to implement health and safety measures for our employees and partnered auto dealers. In February, we adopted a flexible working schedule and utilized technology for online collaboration between teams.”

Mr. Lin added, “It is worth noting that we began optimizing our organizational structure in the second half of 2019 to improve our operating efficiency and enhance the quality of our growth. The effectiveness of our optimization can be observed since the start of the epidemic. As we were able to mobilize our employees into one cohesive unit, we have mitigated some of the epidemic’s negative impacts on our business. Furthermore, once the outbreak is contained in China, the demands for automobiles and related services are expected to recover rapidly. Therefore, as the epidemic is not expected to alter the overarching growth trajectory of the auto industry, we remain fully confident in the long-term growth prospects of China’s auto market despite this temporary disruption. Our successful issuance of asset-backed securities serves as a clear demonstration of the capital market’s confidence in our businesses.”


About Cango, Inc.

Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. Founded in 2010 by a group of pioneers in China's automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company's services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango's platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. For more information, please visit:


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.


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