On November 25th – 27th, Caijing Annual Conference themed on “forecast and strategy” was held in Beijing International Fortune Center. On November 27th, at the forum themed on “opportunities and challenges for US-listed Chinese stocks following the US Presidential Election”, Caijing, the Chinese edition of Barron’s and Tiger Brokers co-released the 2020 Investment Report on the Value of US-Listed Chinese Stocks as well as the 2020 Top 10 Fastest-Growing US-Listed Chinese Stocks. By dint of its breakthroughs over recent years in auto financial services and insurance and auto transaction and strong business performance, Cango (CANG.US) was selected to the list, alongside Pinduoduo Inc. (PDD.US), Douyu (DOYU.US), iQIYI (IQ.US), youdao (DAO.US) and other US-listed Chinese companies.
It is understood that the selection of the 2020 Top 10 Fastest-Growing US-Listed Chinese Stocks mainly referenced objective indicators including financial data growth, business data growth, reputation, and industry and company potentials. The significance of releasing this Top 10 list is to identify companies that have grown their business rapidly over recent years and made tremendous progress on their respective tracks. Their commitment to innovation and advancement and pursuit of perfection in the process of development deserve recognition.
Cango was established in 2010. Its founders and management are trailblazers and leaders in China’s technology-driven auto financial services field. Big data and technological innovation being its core driving force, Cango has always dedicated itself to providing customers with secure, professional, highly efficient and technology-driven auto financial services. It is also committed to metamorphosing from an auto financial service provider to a new auto retail platform, and by offering consumers simple and pleasant auto purchase experience, it is building itself into consumers’ No. 1 choice of auto purchase service platform.
By setting up a new auto retail platform driven by technology and data, Cango has completed deployment in three major fields, which are auto loan facilitation, auto transaction facilitation and auto aftermarket services. And through technology-driven financial enablement and closed-loop services, Cango is reshaping the person-goods-place relationship in auto transaction and creating value for different participants on the auto circulation value chain. As of now, Cango has served a total of more than 1.5 million car buyers, thanks to its collaboration with more than a dozen large- and medium-sized commercial banks including the Industrial and Commercial Bank of China, WeBank, Bank of Shanghai and MYbank, more than a dozen insurance institutions including China Pacific Insurance (Group) Co., Ltd. and ZA Insure, OEMs of gasoline-powered auto brands as well as high-tech and new-energy brands, and close to 50,000 physical dealerships nationwide.
At the end of last month, Cango released its financial report for the third quarter of 2020, presenting a performance exceeding market expectations by a liberal margin. The report showed that for this quarter, Cango realized total revenue of RMB 435 million, which was a year-over-year increase of 23.8%. It also realized an operating profit of RMB 135 million, which was a year-over-year increase of 50% and quarter-over-quarter increase of over 100%. Taking into account the large amount of investment income in fair value changes brought about by investing in ideal cars, Cango realized net profit of nearly RMB 1.8 billion for this quarter.
Cango’s main businesses have all recorded strong growth for the third quarter of 2020. The auto loan facilitation business has added new loans totaling RMB 7.5 billion, which was a year-over-year increase of 30%. The auto aftermarket services business, the bulk of which is insurance facilitation, has brought in RMB 68.9 million, accounting for 15.8% of the total revenue. And the auto transaction business has contributed significantly to this quarter’s total revenue as well, to the extent of RMB 70.36 million.
According to Cango’s CEO Lin Jiayuan, such a dazzling performance is the result of Cango’s insistence on advancing its growth strategies, actively deploying new businesses and effectively expanding its business scale.
It has been reported that this year’s Caijing Annual Conference once again brought together political, business and academic elite from both China and abroad. They engaged in in-depth analysis of major events happening around the world, presented a comprehensive outlook on new economic, political, social and technological trends for 2021 in China and other parts of the world, and discussed ways to find new driving forces for the development of China and the rest of the world in an era of changes.