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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Cango Inc | NYSE:CANG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.0699 | 3.58% | 2.0199 | 2.02 | 1.93 | 1.93 | 22,380 | 16:20:02 |
☐ |
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Title of each class
|
Trade
symbol |
Name of each exchange
on which registered |
||
American Depositary Shares, each representing two Class A ordinary shares
|
CANG
|
New York Stock Exchange
|
||
Class A Ordinary Shares, par value US$0.0001 per share*
|
N/A
|
New York Stock Exchange
|
*
|
Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares.
|
Large accelerated filer ☐
|
Accelerated filer ☒ |
Non-accelerated
filer ☐
|
Emerging growth company ☒ |
† |
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
|
U.S. GAAP ☒
|
|
International Financial Reporting Standards as issued
|
|
|
|
Other ☐
|
||
|
by the International Accounting Standards Board ☐
|
|
|
|
* |
Not for trading, but only in connection with the listing on the New York Stock Exchange of the American Depositary Shares
|
CORPORATE GOVERNANCE | 192 | |||||
MINE SAFETY DISCLOSURE | 192 | |||||
192 | ||||||
FINANCIAL STATEMENTS | 192 | |||||
FINANCIAL STATEMENTS | 193 | |||||
EXHIBITS | 193 |
• |
the “Acquisition” are to our acquisition of an additional 50% of equity interest in Shanghai Chejia, which we completed at the end of September 2018; after the completion of the Acquisition, Shanghai Chejia became our wholly-owned consolidated subsidiary;
|
• |
“active dealers” are to dealers which have sold at least one car which is funded by a financing transaction we facilitate in the specified period;
|
• |
“ADSs” are to our American depositary shares, each of which represents two Class A ordinary shares, and “ADRs” are to the American depositary receipts that evidence our ADSs;
|
• |
“CAGR” are to compound annual growth rate;
|
• |
“Can Gu Long Shanghai” are to Can Gu Long (Shanghai) Information Technology Consultation Service Co., Ltd., a company established under the law of the PRC and our wholly-owned subsidiary;
|
• |
“car buyers” are to individuals who have purchased a car;
|
• |
“China” and the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Taiwan, the Hong Kong Special Administrative Region and the Macao Special Administrative Region;
|
• |
“dealers” are to points of sale that are licensed to engage in retail automobile transactions;
|
• |
“Didi Chuxing” are to Xiaoju Kuaizhi Inc., a company organized under the laws of the Cayman Islands, and its affiliates;
|
• |
“exposure at risk” are to the amount of outstanding principal of specified financing transactions as of a specified date;
|
• |
“financial institutions” are to (i) banks and (ii) financing lease companies licensed by the Ministry of Commerce of the PRC;
|
• |
“financing transactions” are to loans and financing leases; financing transactions we facilitate include financing transactions funded by financial institutions and financing transactions funded by Shanghai Chejia; the “amount of financing transactions” refer to the principal amount of financing transactions we facilitated in a specified period;
|
• |
“lower-tier cities” are to cities in China that are not
tier-one
and
tier-two
cities;
|
• |
“M1+ overdue ratio” are to (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due;
|
• |
“M3+ overdue ratio” are to (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due;
|
• |
“MYbank” are to Zhejiang
E-Commerce
Bank Co., Ltd., a limited liability company established under the laws of the PRC;
|
• |
“new car dealers” are to dealers that sell new cars to car buyers, including dealers that sell both new cars and used cars;
|
• |
“OEMs” are to automotive original equipment manufacturer;
|
• |
“ordinary shares” are to our Class A ordinary shares, par value US$0.0001 per share, and Class B ordinary shares, par value US$0.0001 per share;
|
• |
“registered dealers” are to dealers who are registered with our platform;
|
• |
“RMB” or “Renminbi” are to the legal currency of China;
|
• |
“SaaS” are to software as a service;
|
• |
“Shanghai Cango” are to Shanghai Cango Investment and Management Consultation Service Co., Ltd., a company established under the law of the PRC and our consolidated VIE;
|
• |
“Shanghai Chejia” are to Shanghai Chejia Financing Lease Co., Ltd. (formerly translated as “Shanghai Autohome Financing Lease Co., Ltd.”), a company organized under the law of the PRC and our wholly-owned subsidiary after the completion of the Acquisition;
|
• |
“tier-one
and
tier-two
cities” refer to
(i) tier-one
cities in China, namely Beijing, Shanghai, Guangzhou and Shenzhen and
(ii) tier-two
cities in China, namely (a) Tianjin and Chongqing, (b) the provincial capital cities except for Guangzhou, Yinchuan, Xining and Lhasa and (c) several prefecture-level cities, namely, Qingdao, Foshan, Dalian, Ningbo, Suzhou, Wuxi, Xiamen, Dongguan and Wenzhou;
|
• |
“US$,” “U.S. dollars,” or “dollars” are to the legal currency of the United States;
|
• |
“we,” “us,” “our company” and “our” are to Cango Inc., its consolidated VIE and/or their respective subsidiaries, as the context requires; and
|
• |
“WeBank” are to Shenzhen Qianhai WeBank Co., Ltd., a limited liability company established under the laws of the PRC;
|
• |
“WP Fintech” are to Warburg Pincus Cango Fintech Investment Company Limited, a British Virgin Islands business company and one of our principal shareholders.
|
• |
our goal and strategies;
|
• |
our expansion plans;
|
• |
our future business development, financial condition and results of operations;
|
• |
our expectations regarding demand for, and market acceptance of, our solutions and services;
|
• |
our expectations regarding keeping and strengthening our relationships with dealers, financial institutions, insurance brokers and companies, car buyers and other platform participants; and
|
• |
general economic and business conditions.
|
ITEM
|
1.
|
ITEM
|
2.
|
ITEM
|
3.
|
A.
|
Selected Financial Data
|
Year Ended December 31,
|
||||||||||||||||||||||||
2016
|
2017
|
2018
|
2019
|
2020
|
||||||||||||||||||||
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|||||||||||||||||||
(in thousands, except for share and per share data)
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||
Loan facilitation income and other related income
|
431,646 | 1,019,081 | 916,280 | 913,837 | 891,837 | 136,680 | ||||||||||||||||||
Leasing income
|
— | — | 59,093 | 300,078 | 286,079 | 43,844 | ||||||||||||||||||
After-market services income
|
1,831 | 26,102 | 100,053 | 205,998 | 241,193 | 36,964 | ||||||||||||||||||
Automobile trading income
|
— | — | 6,584 | 11,414 | 624,774 | 95,751 | ||||||||||||||||||
Others
|
802 | 7,021 | 9,403 | 8,742 | 8,549 | 1,310 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues
|
434,280 | 1,052,204 | 1,091,414 | 1,440,069 | 2,052,432 | 314,549 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating cost and expenses:
|
||||||||||||||||||||||||
Cost of revenue
|
170,044 | 386,054 | 430,059 | 539,267 | 1,098,121 | 168,294 | ||||||||||||||||||
Sales and marketing
|
39,537 | 114,145 | 167,244 | 192,811 | 195,894 | 30,022 | ||||||||||||||||||
General and administrative
|
34,550 | 101,277 | 151,076 | 236,551 | 265,691 | 40,719 | ||||||||||||||||||
Research and development
|
5,000 | 19,419 | 46,709 | 57,406 | 62,596 | 9,593 | ||||||||||||||||||
Net loss/(gain) on risk assurance liabilities
|
744 | (38,867 | ) | (354 | ) | 34,258 | 2,268 | 348 | ||||||||||||||||
Provision for credit losses
|
— | 156 | 19,960 | 56,479 | 109,565 | 16,792 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating cost and expenses
|
|
249,875
|
|
|
582,184
|
|
|
814,695
|
|
|
1,116,772
|
|
|
1,734,135
|
|
|
265,768
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations
|
|
184,405
|
|
|
470,020
|
|
|
276,720
|
|
|
323,296
|
|
|
318,297
|
|
|
48,781
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest and investment income
|
4,099 | 16,164 | 61,465 | 96,005 | 72,807 | 11,158 | ||||||||||||||||||
Income/(loss) from equity method investments
|
(9,988 | ) | 4,856 | 42,685 | (926 | ) | — | — | ||||||||||||||||
Fair value change of equity investment
|
— | — | — | 41,582 | 3,315,476 | 508,119 | ||||||||||||||||||
Interest expense
|
(450 | ) | (12,994 | ) | (19,011 | ) | (13,458 | ) | (2,759 | ) | (423 | ) | ||||||||||||
Foreign exchange gain (loss), net
|
— | (25,403 | ) | 1,447 | 5,141 | (8,848 | ) | (1,356 | ) | |||||||||||||||
Other income, net
|
8,429 | 15,818 | 32,701 | 41,300 | 49,139 | 7,531 | ||||||||||||||||||
Other expenses
|
— | — | — | (5,121 | ) | (838 | ) | (128 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income before income taxes
|
|
186,495
|
|
|
468,460
|
|
|
396,007
|
|
|
487,819
|
|
|
3,743,274
|
|
|
573,682
|
|
||||||
Income tax expenses
|
(53,014 | ) | (119,403 | ) | (89,083 | ) | (82,960 | ) | (369,854 | ) | (56,683 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
133,481
|
|
|
349,057
|
|
|
306,924
|
|
|
404,859
|
|
|
3,373,420
|
|
|
516,999
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less: Net income attributable to the
non-controlling
interest shareholders
|
4,575 | 8,048 | 4,232 | 13,945 | 3,902 | 598 | ||||||||||||||||||
Net income attributable to Cango Inc.’s shareholders
|
|
128,906
|
|
|
341,010
|
|
|
302,692
|
|
|
390,914
|
|
|
3,369,518
|
|
|
516,401
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Earnings per share attributable to ordinary shareholders and Series A-2 convertible preferred shareholder:
|
||||||||||||||||||||||||
Basic:
|
0.51 | 1.35 | ||||||||||||||||||||||
Diluted:
|
0.51 | 1.35 | ||||||||||||||||||||||
Earnings per Class A and Class B ordinary share:
|
||||||||||||||||||||||||
Basic
|
1.08 | 1.29 | 11.21 | 1.72 | ||||||||||||||||||||
Diluted
|
1.08 | 1.29 | 11.09 | 1.70 | ||||||||||||||||||||
Earnings per ADS (two ordinary shares equal to one ADS):
|
||||||||||||||||||||||||
Basic
|
2.17 | 2.59 | 22.43 | 3.44 | ||||||||||||||||||||
Diluted
|
2.16 | 2.58 | 22.18 | 3.40 | ||||||||||||||||||||
Weighted average shares used to compute earnings per share attributable to ordinary shareholders and Series A-2 convertible preferred shareholder: :
|
||||||||||||||||||||||||
Basic:
|
127,149,202 | 127,149,202 | ||||||||||||||||||||||
Diluted:
|
252,831,716 | 252,831,716 | ||||||||||||||||||||||
Weighted average shares used to compute earnings per Class A and Class B share:
|
||||||||||||||||||||||||
Basic
|
279,156,744 | 302,417,352 | 300,484,860 | 300,484,860 | ||||||||||||||||||||
Diluted
|
280,873,806 | 303,283,658 | 303,900,645 | 303,900,645 | ||||||||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||||
Unrealized gain/(loss) on
available-for-sale
|
(2,464 | ) | 822 | (147 | ) | — | — | |||||||||||||||||
Reclassification of losses to net income
|
2,065 | — | (276 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustment
|
— | 109,029 | 10,401 | (234,817 | ) | (35,987 | ) | |||||||||||||||||
Total comprehensive income, net of tax
|
|
133,481
|
|
|
348,659
|
|
|
416,776
|
|
|
414,836
|
|
|
3,138,603
|
|
|
481,012
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income attributable to
non-controlling
interests
|
|
4,575
|
|
|
8,048
|
|
|
4,232
|
|
|
13,945
|
|
|
3,902
|
|
|
598
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income attributable to Cango Inc.’s shareholders
|
|
128,906
|
|
|
340,611
|
|
|
412,544
|
|
|
400,892
|
|
|
3,134,701
|
|
|
480,414
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
||||||||||||||||||||||||
2016
|
2017
|
2018
|
2019
|
2020
|
||||||||||||||||||||
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Cash and cash equivalents
|
44,989 | 803,271 | 2,912,901 | 2,002,315 | 1,426,900 | 218,682 | ||||||||||||||||||
Restricted cash – current
|
1,011 | 10,060 | 298,900 | 970,994 | 9,693 | 1,486 | ||||||||||||||||||
Short-term investments
|
106,000 | 62,380 | 265,870 | 597,266 | 4,342,357 | 665,495 | ||||||||||||||||||
Accounts receivable, net
|
469 | 85,595 | 86,514 | 148,563 | 141,594 | 21,700 | ||||||||||||||||||
Finance receivables, net
|
— | 832 | 5,421 | 9,104 | 20,106 | 3,081 | ||||||||||||||||||
Short-term finance leasing receivable, net
|
— | — | 1,123,704 | 1,661,082 | 2,035,398 | 311,938 | ||||||||||||||||||
Short-term contract asset
|
— | — | — | 20,688 | 364,619 | 55,880 | ||||||||||||||||||
Prepayment and other current assets
|
11,024 | 144,858 | 61,273 | 117,445 | 558,361 | 85,573 | ||||||||||||||||||
Restricted cash –
non-current
|
— | 319,352 | 668,628 | 873,674 | 878,299 | 134,605 | ||||||||||||||||||
Long-term investments
|
185,800 | 191,003 | 292,099 | 547,889 | — | — | ||||||||||||||||||
Goodwill
|
— | — | 145,064 | 145,064 | 145,064 | 22,232 | ||||||||||||||||||
Long-term contract asset
|
— | — | — | 11,655 | 281,374 | 43,122 | ||||||||||||||||||
Deferred tax assets
|
54,889 | 67,774 | 100,195 | 100,668 | 170,951 | 26,199 | ||||||||||||||||||
Long-term finance lease receivables –
non-current,
net
|
— | — | 1,282,457 | 1,448,958 | 1,454,500 | 222,912 | ||||||||||||||||||
Total assets
|
|
714,857
|
|
|
1,996,868
|
|
|
7,301,140
|
|
|
8,736,574
|
|
|
12,145,933
|
|
|
1,861,446
|
|
||||||
Short-term debts
|
— | — | 660,000 | 1,439,750 | 355,817 | 54,531 | ||||||||||||||||||
Long-term debts – current
|
— | — | 467,194 | 863,419 | 1,228,784 | 188,319 | ||||||||||||||||||
Accrued expenses and other current liabilities
|
85,854 | 328,523 | 211,459 | 278,690 | 324,734 | 49,768 | ||||||||||||||||||
Risk assurance liabilities
|
149,788 | 129,935 | 173,210 | 259,952 | 460,829 | 70,625 | ||||||||||||||||||
Long-term borrowings –
non-current
|
189,573 | 175,000 | 472,793 | 301,668 | 977,791 | 149,853 | ||||||||||||||||||
Total liabilities
|
|
503,769
|
|
|
736,860
|
|
|
2,045,773
|
|
|
3,244,914
|
|
|
3,770,723
|
|
|
577,889
|
|
||||||
Total mezzanine equity
|
|
3,941,846
|
|
|
3,941,846
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total shareholders’ (deficit)/equity
|
|
(3,730,759
|
)
|
|
(2,681,838
|
)
|
|
5,255,367
|
|
|
5,491,660
|
|
|
8,375,209
|
|
|
1,283,557
|
|
|
For the year ended December 31,
|
|||||||||||||||||||||||
2016
|
2017
|
2018
|
2019
|
2020
|
||||||||||||||||||||
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
US$ |
|||||||||||||||||||
Net income
|
133,481 | 349,057 | 306,924 | 404,859 | 3,373,420 | 516,999 | ||||||||||||||||||
Add: ESOP Expenses
(1)
|
— | — | 33,411 | 82,266 | 78,755 | 12,070 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income
|
|
133,481
|
|
|
349,057
|
|
|
340,335
|
|
|
487,125
|
|
|
3,452,175
|
|
|
529,069
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less: Net income attributable to the noncontrolling interest shareholders
|
4,575 | 8,048 | 4,232 | 13,945 | 3,902 | 598 | ||||||||||||||||||
Adjusted net income attributable to Cango Inc.’s ordinary shareholders
|
|
128,906
|
|
|
341,010
|
|
|
336,103
|
|
|
473,180
|
|
|
3,448,273
|
|
|
528,471
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted net income per
ADS-basic
(2)
|
|
1.02
|
|
|
2.70
|
|
|
2.41
|
|
|
3.13
|
|
|
22.95
|
|
|
3.52
|
|
||||||
Adjusted net income per
ADS-diluted
(2)
|
|
1.02
|
|
|
2.70
|
|
|
2.39
|
|
|
3.12
|
|
|
22.69
|
|
|
3.48
|
|
||||||
Weighted average ADS outstanding—basic
|
63,574,601 | 63,574,601 | 139,578,372 | 151,208,676 | 150,242,430 | 150,242,430 | ||||||||||||||||||
Weighted average ADS outstanding—diluted
|
126,415,858 | 126,415,858 | 140,436,903 | 151,641,829 | 151,950,322 | 151,950,322 |
(1) |
ESOP Expenses are allocated in operating cost and expenses as follows:
|
For the year ended December 31,
|
||||||||||||||||||||||||
2016
|
2017
|
2018
|
2019
|
2020
|
||||||||||||||||||||
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
RMB |
(Unaudited)
US$ |
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Cost of revenue
|
— | — | 1,370 | 3,373 | 3,075 | 471 | ||||||||||||||||||
Sales and marketing
|
— | — | 7,117 | 17,523 | 16,003 | 2,453 | ||||||||||||||||||
General and administrative
|
— | — | 23,187 | 57,093 | 55,591 | 8,520 | ||||||||||||||||||
Research and development
|
— | — | 1,737 | 4,278 | 4,085 | 626 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ESOP Expenses
|
— | — |
|
33,411
|
|
|
82,266
|
|
|
78,755
|
|
|
12,070
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Each ADS represents two ordinary shares.
|
B.
|
Capitalization and Indebtedness
|
C.
|
Reasons for the Offer and Use of Proceeds
|
D.
|
Risk Factors
|
• |
offer automotive financing solutions to a growing number of car buyers;
|
• |
maintain and enhance our relationships and business collaboration with dealers, financial institutions, insurance brokers and companies and other platform participants;
|
• |
charge competitive service fees to platform participants while driving the growth and profitability of our business;
|
• |
maintain low overdue ratios of financing transactions we facilitate;
|
• |
comply with complex and evolving laws and regulations;
|
• |
improve our operational efficiency;
|
• |
attract, retain and motivate talented employees, particularly sales and marketing, risk management as well as research and development personnel to support our business growth;
|
• |
enhance our technology infrastructure to support the growth of our business and maintain the security of our system and the confidentiality of the information provided and collected across our system;
|
• |
navigate economic conditions and fluctuations;
|
• |
successfully implement our business strategies and offer new services, such as automobile trading solutions; and
|
• |
defend ourselves against legal and regulatory actions, such as actions involving intellectual property or data privacy claims.
|
• |
become delinquent in the payment of an outstanding obligation;
|
• |
defaulted on a
pre-existing
debt obligation;
|
• |
taken on additional debt, including pledging the car as collateral for such debt; or
|
• |
sustained other adverse financial events.
|
• |
our failure to predict market demand accurately and supply solutions and services that meet this demand in a timely fashion;
|
• |
platform participants may not like, find useful or agree with any changes we make;
|
• |
our failure to properly price new solutions and services;
|
• |
negative publicity about our solutions and services or our platform’s performance or effectiveness;
|
• |
failure to seamlessly integrate our technology system with those of existing or new financial institutions we collaborate with;
|
• |
failure to evaluate credit applications efficiently;
|
• |
views taken by regulatory authorities that the new solutions and services or platform changes do not comply with PRC laws, rules or regulations applicable to us; and
|
• |
the introduction or anticipated introduction of competing solutions and services by our competitors.
|
• |
maintain the quality and reliability of our platform;
|
• |
maintain and develop relationships with dealers, financial institutions, insurance brokers and insurance companies;
|
• |
maintain and develop relationships with OEMs;
|
• |
provide prospective car buyers and existing car buyers with superior experiences;
|
• |
enhance and improve our credit assessment of car buyers;
|
• |
effectively manage and resolve any complaints of dealers, financial institutions or car buyers; and
|
• |
effectively protect personal information and privacy of car buyers and any sensitive data received from financial institutions.
|
• |
our ability to attract new car buyers;
|
• |
our ability to maintain existing relationships with business partners and establish new relationships with additional business partners, such as dealers, financial institutions and OEMs;
|
• |
the amount of financing transactions, automobile trading transactions and insurance transactions on our platform;
|
• |
overdue ratios of financing transactions we facilitate;
|
• |
the mix of solutions and services we offer;
|
• |
the amount and timing of our operating cost and expenses and the maintenance and expansion of our business, operations and infrastructure;
|
• |
financial institutions’ willingness and ability to fund financing transactions through our platform on reasonable terms;
|
• |
our emphasis on experience of car buyers, instead of near-term growth;
|
• |
the timing of expenses related to the development or acquisition of technologies or businesses;
|
• |
proper and sufficient accounting policies with respect to our risk assurance liabilities and implementation;
|
• |
network outages or security breaches;
|
• |
general economic, industry and market conditions; and
|
• |
changes in applicable laws and regulations.
|
• |
the growth in car ownership and the rate of any such growth;
|
• |
changes in car buyer demographics, tastes and preferences;
|
• |
changing financing behavior of car buyers;
|
• |
the selection, price and popularity of cars offered by dealers and OEMs; and
|
• |
whether alternative channels or business models that better address the needs of car buyers emerge in China.
|
• |
difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business;
|
• |
inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits including the failure to successfully further develop the acquired technology;
|
• |
difficulties in retaining, training, motivating and integrating key personnel;
|
• |
diversion of management’s time and resources from our normal daily operations and potential disruptions to our ongoing businesses;
|
• |
strain on our liquidity and capital resources;
|
• |
difficulties in executing intended business plans and achieving synergies from such strategic investments or acquisitions;
|
• |
difficulties in maintaining uniform standards, controls, procedures and policies within the overall organization;
|
• |
difficulties in retaining relationships with existing dealers, financial institutions, car buyers, employees and other partners of the acquired business;
|
• |
risks of entering markets in which we have limited or no prior experience;
|
• |
regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary
pre-closing
or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business;
|
• |
assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights or increase our risk for liability;
|
• |
liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities; and
|
• |
unexpected costs and unknown risks and liabilities associated with strategic investments or acquisitions.
|
• |
the composition of our board of directors and, through it, any determinations with respect to our operations, business direction and policies, including the appointment and removal of officers;
|
• |
any determinations with respect to mergers or other business combinations;
|
• |
our disposition of substantially all of our assets; and
|
• |
any change in control.
|
• |
revoking our business and operating licenses;
|
• |
levying fines on us;
|
• |
confiscating any of our income that they deem to be obtained through illegal operations;
|
• |
shutting down our services;
|
• |
discontinuing or restricting our operations in China;
|
• |
imposing conditions or requirements with which we may not be able to comply;
|
• |
requiring us to change our corporate structure and contractual arrangements;
|
• |
restricting or prohibiting our use of the proceeds from overseas offering to finance our consolidated VIE’s business and operations; and
|
• |
taking other regulatory or enforcement actions that could be harmful to our business.
|
• |
regulatory developments affecting us or our industry;
|
• |
announcements of studies and reports relating to the quality of our credit offerings or those of our competitors;
|
• |
changes in the economic performance or market valuations of other transaction service platforms;
|
• |
actual or anticipated fluctuations in our quarterly results of operations and changes or revisions of our expected results;
|
• |
changes in financial estimates by securities research analysts;
|
• |
conditions in the markets for car buyers and for financing facilitation services;
|
• |
announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments;
|
• |
additions to or departures of our senior management;
|
• |
fluctuations of exchange rates between the Renminbi and the U.S. dollar;
|
• |
release or expiry of
lock-up
or other transfer restrictions on our outstanding shares or ADSs; and
|
• |
sales or perceived potential sales of additional Class A ordinary shares or ADSs.
|
• |
at least 75% of our gross income is passive income, or
|
• |
at least 50% of the value (determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income.
|
ITEM
|
4.
|
A.
|
History and Development of the Company
|
B.
|
Business Overview
|
• |
B2B transactions
non-4S
dealers source cars cost-efficiently and help OEMs better address market demands across China, especially in lower-tier cities. As part of our SaaS solutions, we offer dealers a mobile application on which they can search and view car models available on our platform and place orders. We periodically update the selection of car models based on new car launches and demands by dealers. When placing an order, a dealer is required to pay a deposit, which represents a percentage of the total purchase price. We purchase cars from OEMs based on orders from dealers. Dealers are required to pay purchase prices in full and pick up cars from local warehouses maintained by OEMs or us before specific deadlines. If dealers fail to make timely payments, their deposits are forfeited and we will seek to sell the relevant cars to other buyers.
|
• |
B2C transactions
|
• |
Credit origination
|
• |
Credit assessment
in-depth
collaboration with financial institutions and incorporate the credit policies and standards of these financial institutions into our credit assessment system. Our IT system is also highly integrated with financial institutions with which we directly collaborate. As such, we provide significant value to facilitate the ultimate credit decision making process of financial institutions by enhancing its efficiency. For example, it only takes less than two hours on average from submission of credit application to credit decision. In some instances, credit decisions can be provided in less than half an hour.
|
• |
Credit servicing
|
• |
Delinquent asset management
in-person
visits, recovery, disposal and legal actions. We have established a nationwide network of external counsel to supplement our own resources. Our
in-house
team is also closely involved in each stage of the delinquent asset management process to ensure compliance with the relevant laws and regulations.
|
• |
Automotive Financing Solutions
|
Year ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Financing transactions funded by third-party financial institutions
|
19,937,411 | 91.8 | 25,969,896 | 92.6 | 27,161,201 | 4,162,636 | 98.1 | |||||||||||||||||||||
Financing transactions funded by Shanghai Chejia
|
1,781,983 | 8.2 | 2,084,397 | 7.4 | 536,538 | 82,228 | 1.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
21,719,395
|
|
|
100.0
|
|
|
28,054,293
|
|
|
100.0
|
|
|
27,697,739
|
|
|
4,244,864
|
|
|
100.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
||||||||||||||||||||||||||||||||
March 31,
|
June 30,
|
September 30,
|
December 31,
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
|||||||||||||||||||||||||
2019
|
2020
|
|||||||||||||||||||||||||||||||
Number of credit applications
|
128,243 | 121,307 | 110,331 | 173,059 | 74,339 | 92,711 | 131,037 | 180,811 | ||||||||||||||||||||||||
Number of financing transactions facilitated
|
99,242 | 87,947 | 79,728 | 123,223 | 57,905 | 63,541 | 86,329 | 121,518 |
• |
Purchase Facilitation
|
As of / in the three months ended
|
||||||||||||||||||||||||||||||||
March 31,
|
June 30,
|
September 30,
|
December 31,
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
|||||||||||||||||||||||||
2019
|
2020
|
|||||||||||||||||||||||||||||||
Registered dealers at end of period
|
47,879 | 48,367 | 49,396 | 49,238 | 45,688 | 44,521 | 46,248 | 48,487 | ||||||||||||||||||||||||
Active dealers (%)
|
36.6 | 35.5 | 35.1 | 43.0 | 32.7 | 34.3 | 38.7 | 40.6 |
As of December 31,
|
||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||
Number
|
%
|
Number
|
%
|
Number
|
%
|
|||||||||||||||||||
Tier-one
and
tier-two
cities
|
12,684 | 27.2 | 13,536 | 27.5 | 13,014 | 26.8 | ||||||||||||||||||
Lower-tier cities
|
33,881 | 72.8 | 35,702 | 72.5 | 35,473 | 73.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
46,565
|
|
|
100.0
|
|
|
49,238
|
|
|
100.0
|
|
|
48,487
|
|
|
100.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||
Number
|
%
|
Number
|
%
|
Number
|
%
|
|||||||||||||||||||
4S dealers
|
8,342 | 17.9 | 9,231 | 18.7 | 9,214 | 19.0 | ||||||||||||||||||
Non-4S
dealers
|
38,223 | 82.1 | 40,007 | 81.3 | 39,273 | 81.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
46,565
|
|
|
100.0
|
|
|
49,238
|
|
|
100.0
|
|
|
48,487
|
|
|
100.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
• |
Self-operated sales model
in-house
sales team, who will come to the dealer’s store and explain the terms of our automotive financing solutions to the prospective car buyer and offers assistance in completing the credit application. Our sales team then uploads the credit application to our online system for our credit assessment team to evaluate.
|
• |
Dealer financial manager model
|
• |
Sales agent model
|
As of December 31,
|
||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||
Number
|
%
|
Number
|
%
|
Number
|
%
|
|||||||||||||||||||
Self-operated sales model
|
41,411 | 88.9 | 46,586 | 94.6 | 45,990 | 94.9 | ||||||||||||||||||
Dealer financial manager model
|
1,055 | 2.3 | 879 | 1.8 | 1,958 | 4.0 | ||||||||||||||||||
Sales agent model
|
4,099 | 8.8 | 1,773 | 3.6 | 539 | 1.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
46,565
|
|
|
100.0
|
|
|
49,238
|
|
|
100.0
|
|
|
48,487
|
|
|
100.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the year ending December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Self-operated sales model
|
18,333,271 | 84.4 | 26,030,152 | 92.8 | 25,364,140 | 3,887,225 | 91.6 | |||||||||||||||||||||
Dealer financial manager model
|
1,916,017 | 8.8 | 1,555,218 | 5.5 | 2,270,661 | 347,994 | 8.2 | |||||||||||||||||||||
Sales agent model
|
1,470,106 | 6.8 | 468,923 | 1.7 | 62,938 | 9,645 | 0.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
21,719,395
|
|
|
100.0
|
|
|
28,054,293
|
|
|
100.0
|
|
|
27,697,739
|
|
|
4,244,864
|
|
|
100.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ending December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Financing transactions funded by third-party financial institutions:
|
||||||||||||||||||||||||||||
Direct partnership model
|
10,832,748 | 49.8 | 20,851,684 | 74.4 | 17,248,796 | 2,643,494 | 62.3 | |||||||||||||||||||||
Co-partnership
model
|
9,104,663 | 42.0 | 5,118,212 | 18.2 | 9,912,405 | 1,519,142 | 35.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total financing transactions funded by third-party financial institutions
|
|
19,937,411
|
|
|
91.8
|
|
|
25,969,896
|
|
|
92.6
|
|
|
27,161,201
|
|
|
4,162,636
|
|
|
98.1
|
|
|||||||
Financing transactions funded by Shanghai Chejia
|
1,781,983 | 8.2 | 2,084,397 | 7.4 | 536,538 | 82,228 | 1.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
21,719,395
|
|
|
100.0
|
|
|
28,054,293
|
|
|
100.0
|
|
|
27,697,739
|
|
|
4,244,864
|
|
|
100.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ending December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Outstanding principal of financing transactions funded by third-party financial institutions:
|
||||||||||||||||||||||||||||
Direct partnership model
|
20,733,146 | 60.5 | 26,734,880 | 66.8 | 29,367,657 | 4,500,791 | 67.5 | |||||||||||||||||||||
Co-partnership
model
|
11,540,508 | 33.7 | 10,533,733 | 26.3 | 12,311,059 | 1,886,752 | 28.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total outstanding principal of financing transactions funded by third-party financial institutions
|
|
32,273,655
|
|
|
94.2
|
|
|
37,268,613
|
|
|
93.1
|
|
|
41,678,716
|
|
|
6,387,543
|
|
|
95.8
|
|
|||||||
Outstanding principal of financing transactions funded by Shanghai Chejia
|
1,982,722 | 5.8 | 2,763,137 | 6.9 | 1,826,119 | 279,865 | 4.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
34,256,376
|
|
|
100.0
|
|
|
40,031,750
|
|
|
100.0
|
|
|
43,504,835
|
|
|
6,667,408
|
|
|
100.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• |
Insurance Brokers and Companies
|
• |
Online Automotive Advertising Platforms
|
• |
OEMs
OEM-sponsored
subsidy programs. We enable collaboration between OEMs and financial institutions to design
low-interest
financing solutions for car buyers. As of December 31, 2020, 14 OEMs participated in our platform by subsidizing
low-interest
financing transactions that we facilitate. Our platform creates significant value for OEMs, as we help them extend their sales channels through our vast dealer network, and our automotive financing solutions make their cars more affordable to prospective car buyers. We plan to broaden the offering of subsidized financing solutions through collaboration with foreign and sino-foreign joint venture OEMs as well as national banks. As the financing solutions will be marketed to prospective car buyers with stronger credit profiles, we expect to seize new market opportunities while improving our credit performance through such strategy. We started to significantly expand the number of automobile trading transactions in the third quarter of 2020. In connection with such transactions, we purchase cars from OEMs based on orders from dealers and
on-sell
cars to the relevant dealers. We aim to help OEMs better address market demands across China, especially in lower-tier cities.
|
(1) |
After receiving the credit application from a car buyer, we utilize our credit assessment system to perform the initial evaluation. To assist financial institutions in making ultimate credit decisions, we refer qualified credit applications to such financial institutions, which perform independent credit assessment.
|
(2) |
After the credit application is approved, the car buyer enters into a loan agreement with the financial institution. The car buyer is required to make the down payment to the dealer. On behalf of the car buyer, the financial institution pays the purchase price of the car, net of the down payment, to the dealer.
|
(3) |
The car buyer is required to pledge the car as collateral in favor of the financial institution. The pledge is registered with local government authorities.
|
(4) |
The financial institution pays us service fees. A dealer may receive commissions from us or the relevant financial institution, depending on the arrangement among us, the dealer and the relevant financial institution.
|
(5) |
In the form of automatic payments, the car buyer repays principal and interest in installments to the financial institution. The financial institution’s security interest in the collateral is released upon the full repayment of the loan.
|
(1) |
Prospective car buyers submit lease applications to us, and we process these applications by utilizing our credit assessment system.
|
(2) |
After we approve a lease application, the car buyer enters into a lease agreement with us, and we are identified as the lessor. The car buyer is required to make the down payment to the dealer. We fund the remainder of the purchase price to the dealer. The car is then delivered to the car buyer, who temporarily obtains title to the car.
|
(3) |
The car buyer is contractually required to transfer the title to us. In order to simplify the transaction process, we do not require the car buyer to register the transfer with the government authorities.
|
(4) |
In addition, we require the car buyer to pledge the car as collateral for the car buyer’s payment obligations under the lease.
|
(5) |
The car buyer is required to designate a bank account for repayments and authorize automatic lease payments from such account. The payments are made in monthly installments. We have the right to recover the collateral in the event of default.
|
(6) |
Upon the expiration of the lease term, we transfer the title back to the car buyer, and our security interest in the collateral is also released.
|
• |
Down payments
|
• |
Principal
|
• |
Interest rate
|
• |
Installments
|
• |
Prepayment
|
• |
Late payment penalty fee
|
(1) |
Automated reminders
|
(2) |
Live phone calls
|
(3) |
In-person
visits
in-person
visits when we determine such measures are warranted. Around 50 members of our delinquent asset management team are responsible for this task. We view the visits as opportunities to collect repayments as well as to investigate the status of the collateral.
|
(4) |
Recovery
|
(5) |
Disposal
on-site
visits to ensure these warehouses are suitable for automotive storage and are properly guarded to prevent theft.
|
(6) |
Legal actions
|
• |
Integration with financial institutions
|
• |
Mobile applications
|
Mobile Application
|
User Type
|
Main Functions
|
||
Cango Car Loan | Car buyers | Car buyers can select cars available on our dealer network as well as submit credit applications to purchase these cars with financing leases offered by Shanghai Chejia. | ||
Car Owner eGeneration | Car buyers | We provide information relating to insurance products and financing solutions we facilitate. We also provide customer support, traffic infraction inquiries, vehicle valuation and other services through this mobile application. | ||
Cango Financial Services | Our sales team, dealer financial managers and sales agents | Users of the mobile application are able to receive real time updates for automotive financing solutions on our platform. They can also verify prospective car buyers’ identities using facial recognition function, submit credit applications, receive credit decisions and arrange for electronic signing of financing transaction documents through this mobile application. | ||
Our
in-house
sales team uses the mobile application to engage new dealers and monitor existing dealers’ sales efforts.
|
||||
We also utilize the mobile application to assign tasks to personnel involved in our sales efforts and monitor the status of our sales efforts based on 42 parameters. | ||||
Jingang—Warehousing | Warehouse staff | The mobile application allows us to effectively manage warehouse staff. We send notices before delivering recovered cars to the warehouses. The warehouse staff provide us with confirmations when they receive the cars. We also notify the warehouse staff when we need to deliver the cars to the relevant purchasers or car buyers. | ||
Cango GPS | Our delinquent asset management team | Users of the mobile application are able to locate the collateral to facilitate the delinquent asset management process. |
• |
Credit assessment and data security
|
• |
Dealer SaaS Solutions
|
• |
Telematics
|
C.
|
Organizational Structure
|
(1) |
Include Shanghai Wangjin Investment Management Co., Ltd. (controlled by Mr. Xiaojun Zhang), Mr. Jiayuan Lin, Warburg Pincus Financial Global Ltd., Tencent Mobility Limited, Shanghai Xiehuai Investment Management L.P., the Taikang Onshore Entities (including Taikang Life Insurance Co., Ltd. and Shandong State-controlled Taikang Phase I Industrial Development Fund Partnership Enterprise (Limited Partnership)) and Shanghai Huaiyuan Investment Management L.P. (of which Shouyan Xu is the general partner) respectively hold 15.6%, 15.8%, 21.1%, 12.5%, 8.4%, 6.3% and 5.2% of equity interests in Shanghai Cango. The remaining equity interests in Shanghai Cango are held by nine other shareholders. Each shareholder of Shanghai Cango is either an affiliate of or identical to a shareholder of Cango Inc. For information as to the principal shareholders of Cango Inc., see “Item 6. Directors, Senior Management and Employees—E. Share Ownership.”
|
(2) |
Includes 25 subsidiaries that are majority owned by Shanghai Cango. These subsidiaries are located in various cities across China and are primarily involved in providing automotive financing facilitation services to financial institutions and car buyers.
|
(3) |
Primarily involved in the operation of our automobile trading, including purchasing cars from OEMs to facilitate the sales of such cars to our registered dealers. One subsidiary, Shanghai Quanpin Insurance Brokerage Co., Ltd., wholly owns Fushun Insurance Brokerage Co., Ltd., which operates our insurance brokerage business.
|
(4) |
Includes 28 subsidiaries that are wholly-owned by Shanghai Chejia, which primarily engages in providing financing leases to car buyers. Shanghai Cango, our consolidate VIE, currently owns 61.25% equity interest (directly and through Shanghai Wangtian Investment Co., Ltd., its wholly-owned subsidiary) in Shanghai Chejia and Express Group Development Limited, our wholly-owned consolidated subsidiary, owns 38.75% equity interest in Shanghai Chejia. As a result, Shanghai Chejia is our wholly-owned consolidated subsidiary.
|
• |
exercise effective control over our consolidated VIE and its subsidiaries;
|
• |
receive substantially all the economic benefits of our consolidated VIE; and
|
• |
have an exclusive option to purchase all or part of the equity interests in the equity interest in or all or part of the assets of Shanghai Cango when and to the extent permitted by PRC law.
|
• |
the ownership structures of Can Gu Long and our consolidated VIE in China do not violate any applicable PRC law, regulation, or rule currently in effect; and
|
• |
the contractual arrangements among Can Gu Long, Shanghai Cango and its shareholders governed by PRC laws are valid, binding and enforceable in accordance with their terms and applicable PRC laws, rules, and regulations currently in effect, and do not violate any applicable PRC law, regulation, or rule currently in effect, except that the pledges in respect of Shanghai Cango’s equity interests would not be deemed validly created until they are registered with the local administration for market regulation.
|
D.
|
Facilities
|
ITEM 4A.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 5.
|
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|
A.
|
Operating Results
|
For the Year Ended December 31,
|
||||||||||||
2018
|
2019
|
2020
|
||||||||||
Number of financing transactions facilitated
|
356,576 | 390,140 | 329,293 | |||||||||
Number of B2B and B2C transactions
|
66 | 118 | 4,999 |
As of / For the Year Ended December 31,
|
||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||
RMB
|
RMB
|
RMB
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Outstanding principal of financing transactions facilitated
|
34,256,376 | 40,031,750 | 43,504,835 | 6,667,408 | ||||||||||||
Amount of financing transactions facilitated
|
21,719,395 | 28,054,293 | 27,697,739 | 4,244,864 |
As of
|
||||||||||||||||||||||||||||||||||||||||||||||||
March
|
June
|
September
|
December
|
March
|
June
|
September
|
December
|
March
|
June
|
September
|
December
|
|||||||||||||||||||||||||||||||||||||
31,
|
30,
|
30,
|
31,
|
31,
|
30,
|
30,
|
31,
|
31,
|
30,
|
30,
|
31,
|
|||||||||||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||||||||||||||||||||||
(%)
|
||||||||||||||||||||||||||||||||||||||||||||||||
M1+ overdue ratio
|
1.09 | 0.92 | 0.83 | 0.74 | 0.77 | 0.72 | 0.85 | 0.85 | 2.00 | 1.59 | 1.11 | 0.98 | ||||||||||||||||||||||||||||||||||||
M3+ overdue ratio
|
0.46 | 0.46 | 0.36 | 0.37 | 0.37 | 0.30 | 0.33 | 0.40 | 0.56 | 0.84 | 0.53 | 0.42 |
As of / in the Year Ended December 31,
|
||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||
RMB
|
RMB
|
RMB
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Balance at the beginning of the period
|
129,935 | 173,210 | 259,952 | 39,839 | ||||||||||||
Fair value of risk assurance liabilities upon the inception of new loans
|
121,329 | 166,911 | 348,921 | 53,475 | ||||||||||||
Performed risk assurance liabilities
|
(77,700 | ) | (114,427 | ) | (150,313 | ) | (23,036 | ) | ||||||||
Net loss/(gain) on risk assurance liabilities
|
(354 | ) | 34,258 | 2,268 | 348 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at the closing of the period
|
173,210 | 259,952 | 460,829 | 70,625 | ||||||||||||
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Loan facilitation income and other related income
|
916,280 | 84.0 | 913,837 | 63.5 | 891,837 | 136,680 | 43.5 | |||||||||||||||||||||
Leasing income
|
59,093 | 5.4 | 300,078 | 20.8 | 286,079 | 43,844 | 13.9 | |||||||||||||||||||||
After-market services income
|
100,053 | 9.2 | 205,998 | 14.3 | 241,193 | 36,964 | 11.8 | |||||||||||||||||||||
Automobile trading income
|
6,584 | 0.6 | 11,414 | 0.8 | 624,774 | 95,751 | 30.4 | |||||||||||||||||||||
Others
|
9,403 | 0.9 | 8,742 | 0.6 | 8,549 | 1,310 | 0.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
1,091,414
|
|
|
100.0
|
|
|
1,440,069
|
|
|
100.0
|
|
|
2,052,432
|
|
|
314,549
|
|
|
100.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Operating cost and expenses:
|
||||||||||||||||||||||||||||
Cost of revenue
|
430,059 | 39.4 | 539,267 | 37.4 | 1,098,121 | 168,294 | 53.5 | |||||||||||||||||||||
Sales and marketing
|
167,244 | 15.3 | 192,811 | 13.4 | 195,894 | 30,022 | 9.5 | |||||||||||||||||||||
General and administrative
|
151,076 | 13.8 | 236,551 | 16.4 | 265,691 | 40,719 | 12.9 | |||||||||||||||||||||
Research and development
|
46,709 | 4.3 | 57,406 | 4.0 | 62,596 | 9,593 | 3.0 | |||||||||||||||||||||
Net loss/(gain) on risk assurance liabilities
|
(354 | ) | (0.0 | ) | 34,258 | 2.4 | 2,268 | 348 | 0.1 | |||||||||||||||||||
Provision for credit losses
|
19,960 | 1.8 | 56,479 | 3.9 | 109,565 | 16,792 | 5.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
814,695
|
|
|
74.6
|
|
|
1,116,772
|
|
|
77.5
|
|
|
1,734,135
|
|
|
265,768
|
|
|
84.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||||||||||||||
Cost of revenue:
|
||||||||||||||||||||||||||||
Cost of vehicle
|
6,597 | 0.6 | 11,176 | 0.8 | 619,227 | 94,901 | 30.2 | |||||||||||||||||||||
Leasing interest expense
|
21,223 | 1.9 | 116,966 | 8.1 | 132,323 | 20,279 | 6.4 | |||||||||||||||||||||
Commission to car dealerships
|
203,846 | 18.7 | 158,101 | 11.0 | 117,986 | 18,082 | 5.7 | |||||||||||||||||||||
Staff incentive
|
71,539 | 6.6 | 98,173 | 6.8 | 84,047 | 12,881 | 4.1 | |||||||||||||||||||||
Staff cost
|
59,631 | 5.5 | 72,999 | 5.1 | 73,975 | 11,337 | 3.6 | |||||||||||||||||||||
Others
|
67,223 | 6.2 | 81,852 | 5.7 | 70,563 | 10,814 | 3.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
430,059
|
|
|
39.4
|
|
|
539,267
|
|
|
37.4
|
|
|
1,098,121
|
|
|
168,294
|
|
|
53.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• |
Identify the contract(s) with a customer;
|
• |
Identify the performance obligations in the contract;
|
• |
Determine the transaction price;
|
• |
Allocate the transaction price to the performance obligations in the contract; and
|
• |
Recognize revenue when (or as) the entity satisfies a performance obligation.
|
As of
|
||||||||||||
25-May-18
|
15-Feb-19
|
15-Oct-20
|
||||||||||
Risk-free interest rate (%)
|
2.93 | 2.66 | 0.74 | |||||||||
Volatility (%)
|
38.7 | 38.7 | 37.6 | |||||||||
Expected exercise multiple
|
2.8 | 2.3 | 2.3 | |||||||||
Dividend yield
|
Nil | Nil | Nil | |||||||||
Expected life (in years)
|
10 | 10 | 10 | |||||||||
Exercise price (US$)
|
1.7951 | 1.7951 | 1.7951 | |||||||||
Fair value of ordinary shares (RMB)
|
37.82 | 26.8 | 19.03 |
• |
Weighted average cost of capital, or WACC: The discount rates we listed in the table above were based on the WACCs determined based on a consideration of the factors, including risk-free rate, comparative industry risk, equity risk premium, company size and
non-systematic
risk factors.
|
• |
Comparable companies: In deriving the WACCs, which are used as the discount rates under the income approach, nine publicly traded companies were selected for reference as our guideline companies. The guideline companies were selected based on the following criteria: (i) online retail and mobile commerce companies or companies that provide credit facilitation services and (ii) China-based companies that are publicly listed in the United States, publicly listed companies in China and United States-based publicly listed companies.
|
• |
Discount for lack of marketability, or DLOM: DLOM was quantified by the Finnerty’s Average-Strike put options model. Under this option-pricing model, which assumed that the put option is struck at the average price of the stock before the privately held shares can be sold, the cost of the put option was considered as a basis to determine the DLOM. This option pricing model is one of the methods commonly used in estimating DLOM as it can take into consideration factors like timing of a liquidity event, such as an initial public offering, and estimated volatility of our shares. The farther the valuation date is from an expected liquidity event, the higher the put option value and thus the higher the implied DLOM. The lower DLOM is used for the valuation, the higher is the determined fair value of the ordinary shares.
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Loan facilitation income and other related income
|
916,280 | 84.0 | 913,837 | 63.5 | 891,837 | 136,680 | 43.5 | |||||||||||||||||||||
Leasing income
|
59,093 | 5.4 | 300,078 | 20.8 | 286,079 | 43,844 | 13.9 | |||||||||||||||||||||
After-market services income
|
100,053 | 9.2 | 205,998 | 14.3 | 241,193 | 36,964 | 11.8 | |||||||||||||||||||||
Automobile trading income
|
6,584 | 0.6 | 11,414 | 0.8 | 624,774 | 95,751 | 30.4 | |||||||||||||||||||||
Others
|
9,403 | 0.9 | 8,742 | 0.6 | 8,549 | 1,310 | 0.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues
|
|
1,091,414
|
|
|
100.0
|
|
|
1,440,069
|
|
|
100.0
|
|
|
2,052,432
|
|
|
314,549
|
|
|
100.0
|
|
|||||||
Operating cost and expenses:
|
||||||||||||||||||||||||||||
Cost of revenue
|
430,059 | 39.4 | 539,267 | 37.4 | 1,098,121 | 168,294 | 53.5 | |||||||||||||||||||||
Sales and marketing
|
167,244 | 15.3 | 192,811 | 13.4 | 195,894 | 30,022 | 9.5 | |||||||||||||||||||||
General and administrative
|
151,076 | 13.8 | 236,551 | 16.4 | 265,691 | 40,719 | 12.9 | |||||||||||||||||||||
Research and development
|
46,709 | 4.3 | 57,406 | 4.0 | 62,596 | 9,593 | 3.0 | |||||||||||||||||||||
Net (gain) loss on risk assurance liabilities
|
(354 | ) | (0.0 | ) | 34,258 | 2.4 | 2,268 | 348 | 0.1 | |||||||||||||||||||
Provision for credit losses
|
19,960 | 1.8 | 56,479 | 3.9 | 109,565 | 16,792 | 5.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating cost and expenses
|
|
814,695
|
|
|
74.6
|
|
|
1,116,772
|
|
|
77.5
|
|
|
1,734,135
|
|
|
265,768
|
|
|
84.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations
|
|
276,720
|
|
|
25.4
|
|
|
323,296
|
|
|
22.5
|
|
|
318,297
|
|
|
48,781
|
|
|
15.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest and investment income
|
61,465 | 5.6 | 96,005 | 6.7 | 72,807 | 11,158 | 3.5 | |||||||||||||||||||||
Income/(loss) from equity method investments
|
42,685 | 3.9 | (926 | ) | (0.1 | ) | — | — | — | |||||||||||||||||||
Fair value change of equity investment
|
— | — | 41,582 | 2.9 | 3,315,476 | 508,119 | 161.5 | |||||||||||||||||||||
Interest expense
|
(19,011 | ) | (1.7 | ) | (13,458 | ) | (0.9 | ) | (2,759 | ) | (423 | ) | (0.1 | ) | ||||||||||||||
Foreign exchange gain (loss), net
|
1,447 | 0.1 | 5,141 | 0.4 | (8,848 | ) | (1,356 | ) | (0.4 | ) | ||||||||||||||||||
Other income, net
|
32,701 | 3.0 | 41,300 | 2.9 | 49,139 | 7,531 | 2.4 | |||||||||||||||||||||
Other expenses
|
— | — | (5,121 | ) | (0.4 | ) | (838 | ) | (128 | ) | (0.0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income before income taxes
|
|
396,007
|
|
|
36.3
|
|
|
487,819
|
|
|
33.9
|
|
|
3,743,274
|
|
|
573,682
|
|
|
182.4
|
|
|||||||
Income tax expenses
|
(89,083 | ) | (8.2 | ) | (82,960 | ) | (5.8 | ) | (369,854 | ) | (56,683 | ) | (18.0 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
|
306,924
|
|
|
28.1
|
|
|
404,859
|
|
|
28.1
|
|
|
3,373,420
|
|
|
516,999
|
|
|
164.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||||||||||||||
RMB
|
%
|
RMB
|
%
|
RMB
|
US$
|
%
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Less: Net income attributable to the
non-controlling
interest shareholders
|
4,232 | 0.4 | 13,945 | 1.0 | 3,902 | 598 | 0.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income attributable to Cango Inc.’s ordinary shareholders
|
|
302,692
|
|
|
27.7
|
|
|
390,914
|
|
|
27.1
|
|
|
3,369,518
|
|
|
516,401
|
|
|
164.2
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• |
Cost of revenue
|
• |
Sales and marketing
|
• |
General and administrative
|
• |
Research and development
|
• |
Net (gain)/loss on risk assurance liabilities
|
• |
Provision for credit losses
|
• |
Cost of revenue
|
• |
Sales and marketing
|
• |
General and administrative
|
• |
Research and development
|
• |
Net (gain)/loss on risk assurance liabilities
|
• |
Provision for credit losses
|
B.
|
Liquidity and Capital Resources
|
Year Ended December 31,
|
||||||||||||||||
2018
|
2019
|
2020
|
||||||||||||||
RMB
|
RMB
|
RMB
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Summary Consolidated Cash Flow Data:
|
||||||||||||||||
Net cash provided by/ (used in) operating activities
|
184,786 | 422,895 | (621,612 | ) | (95,266 | ) | ||||||||||
Net cash provided by/ (used in) investing activities
|
(1,638,647 | ) | (1,198,406 | ) | (493,563 | ) | (75,642 | ) | ||||||||
Net cash provided by (used in) financing activities
|
4,091,130 | 730,548 | (380,822 | ) | (58,364 | ) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of the year
|
1,132,684 | 3,880,429 | 3,846,983 | 589,576 | ||||||||||||
Cash, cash equivalents and restricted cash at end of the year
|
3,880,429 | 3,846,983 | 2,314,892 | 354,773 |
Payment due by period
|
||||||||||||||||||||||||
Total
|
Less than
1 Year |
1 – 3 Years
|
3 –5 Years
|
More than
5 Years |
||||||||||||||||||||
RMB
|
US$
|
RMB
|
||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Long-term debts – non current
|
1,094,258 | 167,702 | 62,364 | 1,031,894 | — | — | ||||||||||||||||||
Operating lease commitments
|
132,088 | 20,243 | 17,380 | 26,085 | 26,533 | 62,090 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
1,226,346
|
|
|
187,945
|
|
|
79,744
|
|
|
1,057,979
|
|
|
26,533
|
|
|
62,090
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
C.
|
Research and Development
|
D.
|
Trend Information
|
E.
|
Off - Balance Sheet Arrangements
|
F.
|
Tabular Disclosure of Contractual Obligations
|
Payment due by period
|
||||||||||||||||||||||||
Total
|
Less than
1 Year |
1 – 3 Years
|
3 – 5
Years |
More than
5 Years |
||||||||||||||||||||
RMB
|
US$
|
RMB
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Long-term debts –
non-current
|
1,094,258 | 167,702 | 62,364 | 1,031,894 | — | — | ||||||||||||||||||
Operating lease commitments
|
132,088 | 20,243 | 17,380 | 26,085 | 26,533 | 62,090 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
1,226,346
|
|
|
187,945
|
|
|
79,744
|
|
|
1,057,979
|
|
|
26,533
|
|
|
62,090
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
G.
|
Safe Harbor
|
ITEM 6.
|
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
|
A.
|
Directors and Senior Management
|
Name
|
Age
|
Position/Title
|
||||
Xiaojun Zhang
|
49 |
Co-founder
and chairman
|
||||
Jiayuan Lin
|
52 |
Co-founder,
director and chief executive officer
|
||||
Langlang Zhou
|
40 |
Director
|
||||
Yongyi Zhang
|
48 |
Chief financial officer and director
|
||||
Xiaoyu Liu
|
38 |
Director
|
||||
Zhipeng Song
|
36 |
Director
|
||||
Chi Ming Lee
|
68 |
Independent director
|
||||
Dongsheng Zhou
|
53 |
Independent director
|
||||
Rong Liu
|
72 |
Independent director
|
B.
|
Compensation
|
Name
|
Position
|
Ordinary
Shares Underlying Option Awards |
Option
Exercise Price (US$)** |
Grant Date
|
Option
Expiration Date
|
|||||||||
Xiaojun Zhang
|
Chairman | 5,233,862 |
|
1.7951
1.7951
|
|
May 25, 2018
February 15, 2019
|
May 24, 2028
February 14, 2029
|
|||||||
1.7951 | October 15, 2020 | October 14, 2030 | ||||||||||||
Jiayuan Lin
|
Chief executive officer and director | 5,331,362 |
|
1.7951
1.7951
|
|
May 25, 2018
February 15, 2019
|
May 24, 2028
February 14, 2029
|
|||||||
1.7951 | October 15, 2020 | October 14, 2030 | ||||||||||||
Yongyi Zhang
|
Chief financial officer and director | * |
|
1.7951
1.7951
|
|
May 25, 2018
February 15, 2019
|
May 24, 2028
February 14, 2029
|
|||||||
1.7951 | October 15, 2020 | October 14, 2030 | ||||||||||||
Zhipeng Song
|
Director | * |
|
1.7951
1.7951
|
|
May 25, 2018
February 15, 2019
|
May 24, 2028
February 14, 2029
|
|||||||
1.7951 | October 15, 2020 | October 14, 2030 |
* |
Less than 1% of our outstanding shares, assuming conversion of our preferred shares into ordinary shares.
|
** |
In March 2021, we adjusted the option exercise price to US$1.2951 per share due to the cash dividend paid in April 2021.
|
C.
|
Board Practices
|
• |
conducting and managing the business of our company;
|
• |
representing our company in contracts and deals;
|
• |
appointing attorneys for our company;
|
• |
select senior management such as managing directors and executive directors;
|
• |
providing employee benefits and pension;
|
• |
managing our company’s finance and bank accounts;
|
• |
exercising the borrowing powers of our company and mortgaging the property of our company; and
|
• |
exercising any other powers conferred by the shareholders meetings or under our memorandum and articles of association.
|
• |
selecting the independent auditor;
|
• |
pre-approving
auditing and
non-auditing
services permitted to be performed by the independent auditor;
|
• |
annually reviewing the independent auditor’s report describing the auditing firm’s internal quality control procedures, any material issues raised by the most recent internal quality control review, or peer review, of the independent auditors and all relationships between the independent auditor and our company;
|
• |
setting clear hiring policies for employees and former employees of the independent auditors;
|
• |
reviewing with the independent auditor any audit problems or difficulties and management’s response;
|
• |
reviewing and, if material, approving all related party transactions on an ongoing basis;
|
• |
reviewing and discussing the annual audited financial statements with management and the independent auditor;
|
• |
reviewing and discussing with management and the independent auditors major issues regarding accounting principles and financial statement presentations;
|
• |
reviewing reports prepared by management or the independent auditors relating to significant financial reporting issues and judgments;
|
• |
discussing earnings press releases with management, as well as financial information and earnings guidance provided to analysts and rating agencies;
|
• |
reviewing with management and the independent auditors the effect of regulatory and accounting initiatives, as well as
off-balance
sheet structures, on our financial statements;
|
• |
discussing policies with respect to risk assessment and risk management with management, internal auditors and the independent auditor;
|
• |
timely reviewing reports from the independent auditor regarding all critical accounting policies and practices to be used by our company, all alternative treatments of financial information within U.S. GAAP that have been discussed with management and all other material written communications between the independent auditor and management;
|
• |
establishing procedures for the receipt, retention and treatment of complaints received from our employees regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by our employees of concerns regarding questionable accounting or auditing matters;
|
• |
annually reviewing and reassessing the adequacy of our audit committee charter;
|
• |
such other matters that are specifically delegated to our audit committee by our board of directors from time to time;
|
• |
meeting separately, periodically, with management, internal auditors and the independent auditor; and
|
• |
reporting regularly to the full board of directors.
|
• |
reviewing, evaluating and, if necessary, revising our overall compensation policies;
|
• |
reviewing and evaluating the performance of our directors and senior officers and determining the compensation of our senior officers;
|
• |
reviewing and approving our senior officers’ employment agreements with us;
|
• |
setting performance targets for our senior officers with respect to our incentive—compensation plan and equity-based compensation plans;
|
• |
administering our equity-based compensation plans in accordance with the terms thereof; and such other matters that are specifically delegated to the remuneration committee by our board of directors from time to time.
|
• |
selecting and recommending to the board nominees for election by the shareholders or appointment by the board;
|
• |
reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity;
|
• |
making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and
|
• |
advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken.
|
D.
|
Employees
|
Function
|
Number of
Employees |
% of Total
|
||||||
Sales and marketing
|
2,053 | 68.2 | ||||||
Operations
|
364 | 12.1 | ||||||
Risk management
|
233 | 7.7 | ||||||
General administration
|
215 | 7.2 | ||||||
Research and development
|
144 | 4.8 | ||||||
|
|
|
|
|||||
Total
|
3,009 | 100.0 | ||||||
|
|
|
|
E.
|
Share Ownership
|
• |
each of our directors and executive officers; and
|
• |
each person known to us to own beneficially 5.0% or more of our ordinary shares.
|
Ordinary Shares Beneficially Owned
|
||||||||||||||||
Class A
ordinary shares |
Class B
ordinary shares |
Percentage
of total outstanding ordinary shares on an
as-converted
basis |
Percentage
of aggregate voting power** |
|||||||||||||
Directors and Executive Officers:*
|
||||||||||||||||
Xiaojun Zhang
(1)
|
*** | 38,275,787 | 13.7 | 44.7 | ||||||||||||
Jiayuan Lin
(2)
|
3,286,367 | 36,702,890 | 13.6 | 42.9 | ||||||||||||
Langlang Zhou
|
— | — | — | — | ||||||||||||
Yongyi Zhang
|
*** | — | *** | *** | ||||||||||||
Xiaoyu Liu
|
— | — | — | — | ||||||||||||
Zhipeng Song
|
*** | — | *** | *** | ||||||||||||
Chi Ming Lee
|
— | — | — | — | ||||||||||||
Dongsheng Zhou
|
— | — | — | — | ||||||||||||
Rong Liu
|
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Directors and Executive Officers as a Group
|
5,803,543 | 74,978,677 | 27.2 | 87.5 | ||||||||||||
Principal Shareholders:
|
||||||||||||||||
Lin Entities
(3)
|
3,286,367 | 36,702,890 | 13.6 | 42.9 | ||||||||||||
WP Fintech
(4)
|
53,431,124 | — | 18.3 | 3.1 | ||||||||||||
Eagle Central Holding Limited
(5)
|
*** | 38,275,787 | 13.7 | 44.7 | ||||||||||||
Tencent Mobility Limited
(6)
|
31,603,196 | — | 10.8 | 1.8 | ||||||||||||
Didi Chuxing
(7)
|
28,376,116 | — | 9.7 | 1.7 | ||||||||||||
Taikang Offshore Entities
(8)
|
16,217,006 | — | 5.6 | 0.9 |
* |
The business address for our directors and executive officers is 8F, New Bund Oriental Plaza II, 556 West Haiyang Road, Pudong New Area, Shanghai 200124, People’s Republic of China.
|
** |
For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B ordinary shares as a single class. In respect of all matters subject to a shareholders’ vote, each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to 20 votes, voting together as one class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances.
|
*** |
Less than 1% of our total outstanding shares.
|
(1) |
Represents (i) 38,275,787 Class B ordinary shares that are held by Eagle Central Holding Limited, or Eagle Central, and (ii) a number of Class A ordinary shares that Mr. Xiaojun Zhang has the right to acquire upon exercise of the options within 60 days. Eagle Central is a limited liability company established in the British Virgin Islands that is controlled by Mr. Xiaojun Zhang. Eagle Central is further described in footnote 5 below. In addition, Eagle Central is a limited partner with 50.0% of partnership interest in Huaiyuan L.P. Huaiyuan L.P. is further described in footnote 10 below.
|
(2) |
Represents (i) 1 Class A ordinary share that is held by Medway Brilliant Holding Limited, or Medway Brilliant, (ii) 36,702,890 Class B ordinary shares that are held by Traveler Enterprise Limited, or Traveler Enterprise, (iii) 1,200,000 Class A ordinary shares represented by ADSs that are beneficially owned by Traveler Enterprise, and (iv) a number of Class A ordinary shares that Mr. Jiayuan Lin has the right to acquire upon exercise of the options within 60 days. Medway Brilliant is a limited liability company established in the British Virgin Islands that is wholly owned by Mr. Jiayuan Lin. Traveler Enterprise is a limited liability company established in the British Virgin Island. Mr. Jiayuan Lin is the beneficial owner of the shares held by Medway Brilliant and Traveler Enterprise in our company. Medway Brilliant and Traveler Enterprise are further described in footnote 3 below. In addition, Medway Brilliant is a limited partner with 50.0% of partnership interest in Huaiyuan L.P. Huaiyuan L.P. is further described in footnote 10 below.
|
(3) |
Represents (i) 1 Class A ordinary share that is held by Medway Brilliant, (ii) 36,702,890 Class B ordinary shares that are held by Traveler Enterprise, and (iii) 1,200,000 Class A ordinary shares represented by ADSs that are beneficially owned by Traveler Enterprise. Medway Brilliant is a limited liability company established in the British Virgin Islands that is wholly owned by Mr. Jiayuan Lin. The registered address of Medway Brilliant is the offices of Sertus Incorporations (BVI) Limited, Sertus Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British Virgin Islands. Traveler Enterprise is a limited liability company established in the British Virgin Islands. Traveler Enterprise is controlled by Traveler Trust, a trust established under the laws of Guernsey. Mr. Jiayuan Lin is the settlor of Traveler Trust, and Mr. Lin and his family members are the trust’s beneficiaries. Under the terms of this trust, Mr. Lin has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to, the shares held by Traveler Enterprise in our company. The registered address of Traveler Enterprise is Ritter House, Wickhams Cay II, Road Town, Tortola VG1110, British Virgin Islands.
|
(4) |
Represents 53,431,124 Class A ordinary shares held by Warburg Pincus Cango Fintech Investment Company Limited, a British Virgin Islands business company (“WP Fintech”). Information regarding beneficial ownership is reported as of January 31, 2020, based on the information contained in the Schedule 13G filed by WP Fintech with SEC on February 10, 2020. The direct parents of WP Fintech are (i) Warburg Pincus Private Equity XII, L.P., a Delaware limited partnership (“WP XII”), (ii) Warburg Pincus Private Equity
XII-B,
L.P., a Delaware limited partnership (“WP
XII-B”),
(iii) Warburg Pincus Private Equity
XII-D,
L.P., a Delaware limited partnership (“WP
XII-D”),
(iv) Warburg Pincus Private Equity
XII-E,
L.P., a Delaware limited partnership (“WP
XII-E”),
(v) WP XII Partners, L.P., a Delaware limited partnership (“WP XII Partners”), (vi) Warburg Pincus XII Partners, L.P., a Delaware limited partnership (“Warburg Pincus XII Partners” and, together with WP XII, WP
XII-B,
WP
XII-D,
WP
XII-E
and WP XII Partners, the “WP XII Funds”), (vii) Warburg Pincus China (Cayman), L.P., a Cayman Islands limited partnership (“WPC Cayman”), and (viii) Warburg Pincus China Partners (Cayman), L.P., a Cayman Islands limited partnership (“Warburg Pincus China Cayman Partners” and, together with WPC Cayman, the “WPC Cayman Funds”). Warburg Pincus XII, L.P., a Delaware limited partnership (“WP XII GP”), is the general partner of the WP XII Funds. WP Global LLC, a Delaware limited liability company (“WP Global”), is the general partner of WP XII GP. Warburg Pincus Partners II, L.P., a Delaware limited partnership (“WPP II”), is the managing member of WP Global. Warburg Pincus Partners GP LLC, a Delaware limited liability company (“WPP GP”), is the general partner of WPP II. Warburg Pincus & Co., a New York general partnership (“WP”), is the managing member of WPP GP. Warburg Pincus (Cayman) China GP, L.P., a Cayman Islands limited partnership (“WPC Cayman GP”), is the general partner of the WPC Cayman Funds. Warburg Pincus (Cayman) China GP LLC, a Delaware limited liability company (“WPC Cayman GP LLC”), is the general partner of WPC Cayman GP. Warburg Pincus Partners II (Cayman), L.P., a Cayman Islands exempted limited partnership (“WPP II Cayman”), is the managing member of WPC Cayman GP LLC. Warburg Pincus (Bermuda) Private Equity GP Ltd., a Bermuda exempted company (“WP Bermuda”), is the general partner of WPP II Cayman. Investment and voting decisions with respect the Class A ordinary shares held by the Warburg Pincus entities are made by a committee comprised of three or more individuals and all members of such committee disclaim beneficial ownership of the shares held by the Warburg Pincus entities. The address of the Warburg Pincus entities is 450 Lexington Avenue, New York, New York 10017, U.S.A.
|
(5) |
Eagle Central is a limited liability company established in the British Virgin Islands that is controlled by Mr. Xiaojun Zhang. The registered address of Eagle Central is the offices of Sertus Incorporations (BVI) Limited, Sertus Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola VG1110, British Virgin Islands.
|
(6) |
Represents 31,603,196 Class A ordinary shares held by Tencent Mobility Limited. Information regarding beneficial ownership is based on (i) the information contained in the Schedule 13G reported as of December 31, 2018 and filed by Tencent Mobility Limited with SEC on February 1, 2019, and (ii) the fact that Tencent Mobility Limited cancelled and surrendered one Class A ordinary share in May 2020. Tencent Mobility Limited is a limited liability company established in Hong Kong. Tencent Mobility Limited is wholly owned by Tencent Holdings Limited, a public company listed on the Hong Kong Stock Exchange. The registered address of Tencent Mobility Limited is 29/F, Three Pacific Place, No.1 Queen’s Road East, Wanchai, Hong Kong.
|
(7) |
Represents (i) 4,740,480 Class A ordinary shares held by Links Advance Holdings Limited and (ii) 23,635,636 Class A ordinary shares held by DiDi Sunshine Investments L.P. Information regarding beneficial ownership is reported as of December 31, 2019, based on the information contained in the Schedule 13G filed by Didi Chuxing with SEC on February 13, 2020. Links Advance Holdings Limited is controlled by Didi Chuxing. DiDi Sunshine Investments L.P. is an exempted limited partnership organized in the Cayman Islands. Its general partner is a wholly-owned subsidiary of Didi Chuxing. The general partner exercises the voting rights with respect to the shares held by the limited partnership. The general partner disclaims beneficial ownership of our shares except to the extent of its pecuniary interest in the limited partnership. According to the information contained in the Schedule 13G filed by Galactic Gain Limited with SEC on February 13, 2020, Galactic Gain Limited is a limited partner of DiDi Sunshine Investments L.P. and indirectly holds the 23,635,636 Class A ordinary shares. Galactic Gain Limited is an exempted company incorporated under the laws of the Cayman Islands, which is wholly owned by Boyu Capital Fund III, L.P. Boyu Capital Fund III, L.P. is a limited partnership organized under the laws of the Cayman Islands, of which Boyu Capital General Partner III, L.P. is the general partner. Boyu Capital General Partner III, L.P. is a limited partnership organized under the laws of the Cayman Islands, of which Boyu Capital General Partner III, Ltd. is the general partner. Boyu Capital General Partner III, Ltd. is an exempted company incorporated under the laws of the Cayman Islands, which is wholly owned by Boyu Capital Group Holdings Ltd. Boyu Capital Group Holdings Ltd. is an exempted company incorporated under the laws of the Cayman Islands, of which XYXY Holdings Ltd. is the controlling shareholder. XYXY Holdings Ltd. is a company incorporated under the laws of the British Virgin Islands, which is wholly owned by Xiaomeng Tong. The registered address of Galactic Gain Limited is at the office of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman,
KY1-1104,
Cayman Islands.
|
(8) |
Represents (i) 8,108,503 Class A ordinary shares held by Magic Spark Inc., a limited liability company established in the Cayman Islands, and (ii) 8,108,503 Class A ordinary shares held by TK Autolink Inc., a limited liability company established in the Cayman Islands. Information regarding beneficial ownership is reported as of December 31, 2019, based on the information contained in the Schedule 13G filed by Taikang Offshore Entities with SEC on February 12, 2020. Magic Spark Inc. is wholly owned by Taikang Life Insurance Co., Ltd., which in turn is wholly owned by Taikang Insurance Group Inc. TK Autolink Inc. is indirectly controlled by Shandong State-controlled Taikang Phase I Industrial Development Fund Partnership Enterprise (Limited Partnership) (“Shandong Fund”). Beijing Taikang Investment Co., Ltd. is one of the two general partners of Shandong Fund. Beijing Taikang Investment Co., Ltd. is indirectly controlled by Taikang Insurance Group Inc. Each of Taikang Life Insurance Co., Ltd. and Taikang Insurance Group Inc. is an insurance company established in the PRC. The registered address of Magic Spark Inc. is Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman,
KY1-1002,
Cayman Islands. The registered address of TK Autolink Inc. is 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1 – 1002, Cayman Islands.
|
ITEM 7.
|
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
A.
|
Major Shareholders
|
B.
|
Related Party Transactions
|
C.
|
Interests of Experts and Counsel
|
ITEM 8.
|
FINANCIAL INFORMATION
|
A.
|
Consolidated Statements and Other Financial Information
|
B.
|
Significant Changes
|
ITEM 9.
|
THE OFFER AND LISTING
|
A.
|
Offering and Listing Details
|
B.
|
Plan of Distribution
|
C.
|
Markets
|
D.
|
Selling Shareholders
|
E.
|
Dilution
|
F.
|
Expenses of the Issue
|
ITEM
|
10.
|
A.
|
Share Capital
|
B.
|
Memorandum and Articles of Association
|
C.
|
Material Contracts
|
D.
|
Exchange Controls
|
E.
|
Taxation
|
• |
an individual citizen or resident of the United States;
|
• |
a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;
|
• |
an estate the income of which is subject to United States federal income taxation regardless of its source; or
|
• |
a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person.
|
• |
a dealer in securities or currencies;
|
• |
a financial institution;
|
• |
a regulated investment company;
|
• |
a real estate investment trust;
|
• |
an insurance company;
|
• |
a
tax-exempt
organization;
|
• |
a person holding our ADSs or Class A ordinary shares as part of a hedging, integrated or conversion transaction, a constructive sale or a straddle;
|
• |
a trader in securities that has elected the
mark-to-market
|
• |
a person liable for alternative minimum tax;
|
• |
a person who owns or is deemed to own 10% or more of our stock by vote or value;
|
• |
a person required to accelerate the recognition of any item of gross income with respect to our ADSs or Class A ordinary shares as a result of such income being recognized on an applicable financial statement;
|
• |
a partnership or other pass-through entity for United States federal income tax purposes; or
|
• |
a person whose “functional currency” is not the United States dollar.
|
• |
at least 75% of our gross income is passive income, or
|
• |
at least 50% of the value (determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income.
|
• |
the excess distribution or gain will be allocated ratably over your holding period for the ADSs or Class A ordinary shares,
|
• |
the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and
|
• |
the amount allocated to each other year will be subject to tax at the highest tax rate in effect for that year for individuals or corporations, as applicable, and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.
|
F.
|
Dividends and Paying Agents
|
G.
|
Statement by Experts
|
H.
|
Documents on Display
|
I.
|
Subsidiary Information
|
ITEM 11.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 12.
|
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
|
A.
|
Debt Securities
|
B.
|
Warrants and Rights
|
C.
|
Other Securities
|
D.
|
American Depositary Shares
|
Service
|
Fees
|
|
• Issuance of ADSs (e.g., an issuance of ADS upon a deposit of Class A ordinary shares, upon a change in the
ADS(s)-to
Class A ordinary share(s) ratio, or for any other reason), excluding ADS issuances as a result of distributions of Class A ordinary shares)
|
Up to U.S. 5¢ per ADS issued
|
|
• Cancelation of ADSs (e.g., a cancelation of ADSs for delivery of deposited property, upon a change in the
ADS(s)-to
Class A ordinary share(s) ratio, or for any other reason)
|
Up to U.S. 5¢ per ADS canceled
|
|
• Distribution of cash dividends or other cash distributions (e.g., upon a sale of rights and other entitlements)
|
Up to U.S. 5¢ per ADS held
|
|
• Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADSs
|
Up to U.S. 5¢ per ADS held
|
• Distribution of securities other than ADSs or rights to purchase additional ADSs (e.g., upon a
spin-off)
|
Up to U.S. 5¢ per ADS held | |
• ADS Services
|
Up to U.S. 5¢ per ADS held on the applicable record date(s) established by the depositary bank |
• |
taxes (including applicable interest and penalties) and other governmental charges;
|
• |
the registration fees as may from time to time be in effect for the registration of Class A ordinary shares on the share register and applicable to transfers of Class A ordinary shares to or from the name of the custodian, the depositary bank or any nominees upon the making of deposits and withdrawals, respectively;
|
• |
certain cable, telex and facsimile transmission and delivery expenses;
|
• |
the expenses and charges incurred by the depositary bank in the conversion of foreign currency;
|
• |
the fees and expenses incurred by the depositary bank in connection with compliance with exchange control regulations and other regulatory requirements applicable to Class A ordinary shares, ADSs and ADRs; and
|
• |
the fees and expenses incurred by the depositary bank, the custodian, or any nominee in connection with the servicing or delivery of deposited property.
|
ITEM 13.
|
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
|
ITEM 14.
|
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|
ITEM 15.
|
CONTROLS AND PROCEDURES
|
ITEM 16.
|
[RESERVED]
|
ITEM 16A.
|
AUDIT COMMITTEE FINANCIAL EXPERT
|
ITEM 16B.
|
CODE OF ETHICS
|
ITEM 16C.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
For the Year Ended December 31,
|
||||||||
2019
|
2020
|
|||||||
(In thousands of US dollars)
|
||||||||
Audit Fees
(1)
|
919 | 1,085 | ||||||
Tax Fees
|
— | — | ||||||
|
|
|
|
|||||
All Other Fees
|
— | — | ||||||
|
|
|
|
|||||
Total
|
919 | 1,085 | ||||||
|
|
|
|
(1) |
Audit fees include the aggregate fees billed in each of the fiscal period listed for professional services rendered by our independent public accountant for the audit of our annual financial statements, review of our quarterly financial statements and services related to our initial public offering.
|
ITEM 16D.
|
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
ITEM 16E.
|
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|
Period
|
Total Number of
ADSs Purchased |
Average Price
Paid per ADS
(1)
|
Total Number of
ADSs Purchased as Part of Publicly Announced Plans or Programs
(2)
|
Approximate
Dollar Value of ADSs that May
Yet Be Purchased
Under the Program
(2)
|
||||||||||||
June 5, 2019 through June 30, 2019
|
— | — | — | US$ | 10.0 million | |||||||||||
July 2019
|
431,556 | US$ | 6.95 | 431,556 | US$ | 7.0 million | ||||||||||
August 1, 2019 through April 30, 2020
|
— | — | — | US$ | 7.0 million | |||||||||||
May 2020
|
1,398,516 | US$ | 5.00 | 1,830,072 | US$ | 0.0 million | ||||||||||
Marh 2, 2021 through March 14, 2021
|
— | — | — | US$ | 50.0 million | |||||||||||
March 2021
|
4,189,888 | US$ | 9.14 | 6,019,960 | US$ | 11.7 million | ||||||||||
Total
|
6,019,960 | US$ | 8.02 | 6,019,960 | US$ | 11.7 million |
(1) |
Each of our ADSs represents two Class A ordinary shares.
|
(2) |
We announced a share repurchase program approved by our board of directors on June 5, 2019, under which we may repurchase up to US$10 million worth of our outstanding ADSs and/or Class A ordinary shares over a period of twelve months. We announced another share repurchase program approved by our board of directors on March 2, 2021, under which we may repurchase up to US$50 million worth of our outstanding ADSs and/or Class A ordinary shares over a period of twelve months. The repurchases have been, and will be, through various means, including open market transactions, privately negotiated transactions, block trades or any combination thereof. The repurchases have been, and will be, effected in compliance with Rule
10b5-1
and/or Rule
10b-18
under the Securities Exchange Act of 1934, as amended, and our insider trading policy. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions.
|
ITEM 16F.
|
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
|
ITEM 16G.
|
CORPORATE GOVERNANCE
|
ITEM 16H.
|
MINE SAFETY DISCLOSURE
|
ITEM 17.
|
FINANCIAL STATEMENTS
|
ITEM 18.
|
FINANCIAL STATEMENTS
|
ITEM 19.
|
EXHIBITS
|
* |
Filed herewith
|
** |
Furnished herewith
|
† |
Portions of this exhibit have been omitted in accordance with instruction 4 to Item 19 of Form
20-F.
|
CANGO INC. | ||
By | /s/ Xiaojun Zhang | |
Name: | Xiaojun Zhang | |
Title: | Chairman |
|
|
|
|
|
As of December 31,
|
|
||||||||||
|
|
|
|
|
2019
|
|
|
2020
|
|
|||||||
|
|
Note
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
||||
ASSETS
|
|
|
|
|
||||||||||||
Current assets
|
||||||||||||||||
Cash and cash equivalents
|
2,002,314,688 | 1,426,899,576 | 218,681,927 | |||||||||||||
Restricted cash – current
|
970,993,759 | 9,693,008 | 1,485,518 | |||||||||||||
Short-term investments
|
3 | 597,265,740 | 4,342,356,612 | 665,495,266 | ||||||||||||
Accounts receivable, net of allowance of RMB nil and RMB nil (US$ nil) as of December 31, 2019 and 2020, respectively
|
4 | 148,562,946 | 141,594,170 | 21,700,256 | ||||||||||||
Finance lease receivables - current, net of allowance of RMB11,988,564 and RMB18,097,313 (US$2,773,535) as of December 31, 2019 and 2020, respectively
|
6 | 1,661,082,122 | 2,035,397,525 | 311,938,318 | ||||||||||||
Short-term consumer financing receivables, net of allowance of RMB1,277,390 and RMB2,304,639 (US$353,201) as of December 31, 2019 and 2020, respectively
|
13,298,562 | 23,168 | 3,551 | |||||||||||||
Financing receivables, net of allowance of RMB10,822,976 and RMB16,265,330 (US$2,492,771) as of December 31, 2019 and 2020, respectively
|
9,103,522 | 20,105,893 | 3,081,363 | |||||||||||||
Short-term contract asset
|
20,688,424 | 364,618,635 | 55,880,251 | |||||||||||||
Prepayments and other current assets
|
7 | 117,445,282 | 558,360,959 | 85,572,561 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total current assets
|
|
5,540,755,045
|
|
|
8,899,049,546
|
|
|
1,363,839,011
|
|
|||||||
|
|
|
|
|
|
|||||||||||
Non-current
assets
|
||||||||||||||||
Restricted cash -
non-current
|
873,674,276 | 878,299,140 | 134,605,232 | |||||||||||||
Long-term investments
|
3 | 547,888,818 | — | — | ||||||||||||
Goodwill
|
5 | 145,063,857 | 145,063,857 | 22,232,009 | ||||||||||||
Property and equipment, net
|
14,736,767 | 10,311,971 | 1,580,379 | |||||||||||||
Intangible assets
|
8 | 44,758,242 | 44,887,871 | 6,879,367 | ||||||||||||
Long-term contract asset
|
11,655,356 | 281,374,110 | 43,122,469 | |||||||||||||
Deferred tax assets
|
14 | 100,667,946 | 170,951,082 | 26,199,400 | ||||||||||||
Finance lease receivables -
non-current,
net of allowance of RMB7,100,273 and RMB5,629,107 (US$862,698) as of December 31, 2019 and 2020, respectively
|
6 | 1,448,958,373 | 1,454,499,864 | 222,911,857 | ||||||||||||
Other
non-current
assets
|
8,415,694 | 261,495,158 | 40,075,886 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total
non-current
assets
|
|
3,195,819,329
|
|
|
3,246,883,053
|
|
|
497,606,599
|
|
|||||||
|
|
|
|
|
|
|||||||||||
TOTAL ASSETS
|
|
8,736,574,374
|
|
|
12,145,932,599
|
|
|
1,861,445,610
|
|
|||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||||||
2019 | 2020 | |||||||||||||||
Note | RMB | RMB | US$ | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||
Current liabilities
|
||||||||||||||||
Short-term debts
|
9 | 1,439,749,760 | 355,816,940 | 54,531,332 | ||||||||||||
Long-term debts – current
|
9 | 863,418,789 | 1,228,783,730 | 188,319,346 | ||||||||||||
Accrued expenses and other current liabilities
|
10 | 278,690,234 | 324,734,202 | 49,767,694 | ||||||||||||
Risk assurance liabilities
|
11 | 259,952,473 | 460,829,299 | 70,625,180 | ||||||||||||
Income tax payable
|
67,308,814 | 87,132,455 | 13,353,633 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total current liabilities
|
|
2,909,120,070
|
|
|
2,457,296,626
|
|
|
376,597,185
|
|
|||||||
|
|
|
|
|
|
|||||||||||
Non-current
liabilities
|
||||||||||||||||
Long-term debts
|
9 | 301,667,717 | 977,791,191 | 149,853,056 | ||||||||||||
Deferred tax liability
|
14 | 12,329,929 | 330,765,029 | 50,691,958 | ||||||||||||
Other
non-current
liabilities
|
21,796,367 | 4,870,616 | 746,455 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total
non-current
liabilities
|
|
335,794,013
|
|
|
1,313,426,836
|
|
|
201,291,469
|
|
|||||||
|
|
|
|
|
|
|||||||||||
Total liabilities
|
|
3,244,914,083
|
|
|
3,770,723,462
|
|
|
577,888,654
|
|
|||||||
|
|
|
|
|
|
|||||||||||
Commitments and contingencies
|
19 | |||||||||||||||
Shareholders’ equity
|
||||||||||||||||
Class A Ordinary shares (par value of US$0.0001 per share; 420,674,280 shares authorized as of December 31, 2019 and 2020, respectively; 225,831,214 shares issued and 224,968,102 shares outstanding as of December 31, 2019; 227,831,213 shares issued and 224,771,083 shares outstanding as of December 31, 2020)
|
20 | 153,121 | 154,483 | 23,676 | ||||||||||||
Class B Ordinary shares (par value of US$0.0001 per share; 79,325,720 shares authorized as of December 31, 2019 and 2020, respectively; 76,978,677 shares issued and outstanding as of December 31, 2019; 74,978,677 shares issued and outstanding as of December 31, 2020)
|
20 | 51,139 | 49,777 | 7,629 | ||||||||||||
Treasury shares
|
21 | (20,638,881 | ) | (56,419,225 | ) | (8,646,625 | ) | |||||||||
Additional
paid-in
capital
|
4,526,344,454 | 4,591,455,557 | 703,671,350 | |||||||||||||
Accumulated other comprehensive income (loss)
|
119,430,738 | (115,386,427 | ) | (17,683,744 | ) | |||||||||||
Retained earnings
|
852,508,968 | 3,955,354,972 | 606,184,670 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total Cango Inc.’s equity
|
|
5,477,849,539
|
|
|
8,375,209,137
|
|
|
1,283,556,956
|
|
|||||||
|
|
|
|
|
|
|||||||||||
Non-controlling
interests
|
13,810,752 | — | — | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total shareholders’ equity
|
|
5,491,660,291
|
|
|
8,375,209,137
|
|
|
1,283,556,956
|
|
|||||||
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
8,736,574,374
|
|
|
12,145,932,599
|
|
|
1,861,445,610
|
|
|||||||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Note | RMB | RMB | RMB | US$ | ||||||||||||||||
Revenues
|
||||||||||||||||||||
Loan facilitation income and other related income (including related party amounts of RMB14,047,015, RMB nil and RMB
nil
(US$ nil) for the years ended December 31, 2018, 2019 and 2020, respectively)
|
916,280,350 | 913,836,623 | 891,836,601 | 136,679,939 | ||||||||||||||||
Leasing income
|
59,093,331 | 300,078,043 | 286,079,245 | 43,843,562 | ||||||||||||||||
After-market services income (including related party amounts of RMB881,334, RMB nil and RMB nil (US$ nil) for the years ended December 31, 2018, 2019 and
2020
, respectively)
|
100,053,488 | 205,998,075 | 241,193,243 | 36,964,482 | ||||||||||||||||
Automobile trading income
|
6,583,941 | 11,414,382 | 624,773,721 | 95,750,762 | ||||||||||||||||
Others
|
9,403,167 | 8,741,702 | 8,548,942 | 1,310,183 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total Revenues
|
|
1,091,414,277
|
|
|
1,440,068,825
|
|
|
2,052,431,752
|
|
|
314,548,928
|
|
||||||||
Operating cost and expenses
|
||||||||||||||||||||
Cost of revenue
|
12 | 430,059,037 | 539,267,417 | 1,098,120,749 | 168,294,368 | |||||||||||||||
Sales and marketing
|
167,244,419 | 192,811,348 | 195,893,662 | 30,022,017 | ||||||||||||||||
General and administrative
|
151,075,936 | 236,551,077 | 265,691,411 | 40,718,990 | ||||||||||||||||
Research and development
|
46,709,014 | 57,405,921 | 62,596,195 | 9,593,287 | ||||||||||||||||
Net (gain) loss on risk assurance liabilities
|
(353,731 | ) | 34,257,754 | 2,268,180 | 347,614 | |||||||||||||||
Provision for credit losses
|
19,960,050 | 56,478,959 | 109,564,631 | 16,791,514 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total operating cost and expense
|
|
814,694,725
|
|
|
1,116,772,476
|
|
|
1,734,134,828
|
|
|
265,767,790
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations
|
|
276,719,552
|
|
|
323,296,349
|
|
|
318,296,924
|
|
|
48,781,138
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Interest and investment income (including related party amounts of RMB3,414,795, RMB nil and RMB nil (US$ nil) for the years ended December 31, 2018, 2019 and 2020, respectively)
|
61,465,449 | 96,004,567 | 72,806,814 | 11,158,132 | ||||||||||||||||
Income (loss) from equity method investments
|
42,684,659 | (926,205 | ) | — | — | |||||||||||||||
Fair value change of equity investment
|
— | 41,581,818 | 3,315,475,734 | 508,118,886 | ||||||||||||||||
Interest expense
|
(19,010,616 | ) | (13,457,818 | ) | (2,758,629 | ) | (422,778 | ) | ||||||||||||
Foreign exchange gain (loss), net
|
1,447,099 | 5,141,112 | (8,848,354 | ) | (1,356,070 | ) | ||||||||||||||
Other income, net
|
13 | 32,700,746 | 41,300,464 | 49,139,337 | 7,530,933 | |||||||||||||||
Other expenses
|
— | (5,121,054 | ) | (838,115 | ) | (128,447 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income before income taxes
|
|
396,006,889
|
|
|
487,819,233
|
|
|
3,743,273,711
|
|
|
573,681,794
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income tax expenses
|
14 | (89,082,554 | ) | (82,960,493 | ) | (369,853,650 | ) | (56,682,552 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
306,924,335
|
|
|
404,858,740
|
|
|
3,373,420,061
|
|
|
516,999,242
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Less: Net income attributable to
non-controlling
interests
|
4,232,270 | 13,944,848 | 3,902,214 | 598,040 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to Cango Inc.’s shareholders
|
|
302,692,065
|
|
|
390,913,892
|
|
|
3,369,517,847
|
|
|
516,401,202
|
|
||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Note | RMB | RMB | RMB | US$ | ||||||||||||||||
Earnings per Class A and Class B ordinary share:
|
||||||||||||||||||||
Basic
|
15 | 1.08 | 1.29 | 11.21 | 1.72 | |||||||||||||||
Diluted
|
15 | 1.08 | 1.29 | 11.09 | 1.70 | |||||||||||||||
Earnings per ADS (2 ordinary shares equal 1 ADS):
|
||||||||||||||||||||
Basic
|
15 | 2.17 | 2.59 | 22.43 | 3.44 | |||||||||||||||
Diluted
|
15 | 2.16 | 2.58 | 22.18 | 3.40 | |||||||||||||||
Weighted average shares used to compute earnings per Class A and Class B share:
|
||||||||||||||||||||
Basic
|
15 | 279,156,744 | 302,417,352 | 300,484,860 | 300,484,860 | |||||||||||||||
Diluted
|
15 | 280,873,806 | 303,283,658 | 303,900,645 | 303,900,645 | |||||||||||||||
Other comprehensive income (loss), net of tax
|
||||||||||||||||||||
Unrealized income (losses) on
available-for-sale
|
822,343 | (146,801 | ) | — | — | |||||||||||||||
Reclassification of losses to net income
|
— | (276,843 | ) | — | — | |||||||||||||||
Foreign currency translation adjustment
|
109,029,351 | 10,401,386 | (234,817,165 | ) | (35,987,305 | ) | ||||||||||||||
Total comprehensive income, net of tax
|
|
416,776,029
|
|
|
414,836,482
|
|
|
3,138,602,896
|
|
|
481,011,937
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income attributable to
non-controlling
interests
|
4,232,270 | 13,944,848 | 3,902,214 | 598,040 | ||||||||||||||||
Total comprehensive income attributable to Cango Inc.’s shareholders
|
|
412,543,759
|
|
|
400,891,634
|
|
|
3,134,700,682
|
|
|
480,413,897
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
Attributable to Cango Inc.
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
|
Class A
and Class B
Ordinary Shares
|
|
|
Series
A-2
convertible preferred shares
|
|
|
Additional
paid-in
capital
|
|
|
Accumulated
other
comprehensive
(loss) income
|
|
|
(Accumulated
deficit)
Retained
earnings
|
|
|
Total
Cango Inc.’s
(deficit) equity
|
|
|
Non-
controlling
interests
|
|
|
Total
shareholders’
(deficit) equity
|
|
||||||||||||||||
|
|
Number of
Shares
|
|
|
Amount
|
|
|
Number of
Shares
|
|
|
Amount
|
|
||||||||||||||||||||||||||||
Balance at
January 1, |
|
124,969,987
|
|
|
83,145
|
|
|
2,179,215
|
|
|
1,450
|
|
|
4,100,000
|
|
|
(398,698
|
)
|
|
(2,711,414,472
|
)
|
|
(2,707,628,575
|
)
|
|
25,790,121
|
|
|
(2,681,838,454
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Issuance of
ordinary shares upon IPO and underwriters’ partial exercise over-allotment option, net of issuance costs |
8,600,000 | 5,859 | — | — | 272,145,213 | — | — | 272,151,072 | — | 272,151,072 | ||||||||||||||||||||||||||||||
Capital contribution from shareholders, net of issuance costs
|
— | — | — | — | 3,304,336,306 | — | — | 3,304,336,306 | 5,600,000 | 3,309,936,306 | ||||||||||||||||||||||||||||||
Conversion of
convertible preferred shares to ordinary shares |
169,239,905 | 115,256 | (2,179,215 | ) | (1,450 | ) | 835,511,278 | — | 3,106,758,845 | 3,942,383,929 | — | 3,942,383,929 | ||||||||||||||||||||||||||||
Purchase of subsidiaries’ equity from
non-controlling
interests
|
— | — | — | — | (5,425,247 | ) |
—
|
—
|
(5,425,247 | ) | (4,488,906 | ) | (9,914,153 | ) | ||||||||||||||||||||||||||
Stock-based compensation (note 18)
|
— | — | — | — | 33,410,913 | — | — | 33,410,913 | — | 33,410,913 | ||||||||||||||||||||||||||||||
Net income
|
— | — | — | — | — | — | 302,692,065 | 302,692,065 | 4,232,270 | 306,924,335 | ||||||||||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 109,851,694 | — | 109,851,694 | — | 109,851,694 | ||||||||||||||||||||||||||||||
Dividends to
non-controlling
interest holders
|
— | — | — | — | — | — | — | — | (27,538,814 | ) | (27,538,814 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2018
|
|
302,809,892
|
|
|
204,260
|
|
|
—
|
|
|
—
|
|
|
4,444,078,463
|
|
|
109,452,996
|
|
|
698,036,438
|
|
|
5,251,772,157
|
|
|
3,594,671
|
|
|
5,255,366,828
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to Cango Inc.
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
Class A and Class B
Ordinary Shares
|
|
|
Treasury
shares
|
|
|
Additional
paid-in
capital
|
|
|
Accumulated
other
comprehensive
(loss) income
|
|
|
(Accumulated
deficit)
Retained
earnings
|
|
|
Total
Cango Inc.’s
(deficit) equity
|
|
|
Non-
controlling
interests
|
|
|
Total
shareholders’
(deficit) equity
|
|
||||||||||||
|
|
Number of
Shares
|
|
|
Amount
|
|
||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
|
|
302,809,892
|
|
|
|
204,260
|
|
|
|
—
|
|
|
|
4,444,078,463
|
|
|
|
109,452,996
|
|
|
|
698,036,438
|
|
|
|
5,251,772,157
|
|
|
|
3,594,671
|
|
|
|
5,255,366,828
|
|
Adjustments due to the adoption
of ASC 606 |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,585,853 |
|
|
|
17,585,853 |
|
|
|
—
|
|
|
|
17,585,853 |
|
Repurchase of ordinary shares
|
|
|
(863,112 |
)
|
|
|
—
|
|
|
|
(20,638,881 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20,638,881 |
)
|
|
|
—
|
|
|
|
(20,638,881 |
)
|
Retirement of ordinary shares
|
|
|
(1 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Liquidation of subsidiaries’ equity from
non-controlling
interest holders
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(574,212 |
)
|
|
|
(574,212 |
)
|
Stock-based compensation (note 18)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
82,265,991 |
|
|
|
—
|
|
|
|
—
|
|
|
|
82,265,991 |
|
|
|
—
|
|
|
|
82,265,991 |
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
390,913,892 |
|
|
|
390,913,892 |
|
|
|
13,944,848 |
|
|
|
404,858,740 |
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,977,742 |
|
|
|
—
|
|
|
|
9,977,742 |
|
|
|
—
|
|
|
|
9,977,742 |
|
Dividends to shareholders
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(254,027,215 |
)
|
|
|
(254,027,215 |
)
|
|
|
(3,154,555 |
)
|
|
|
(257,181,770 |
)
|
Balance at December 31, 2019
|
|
|
301,946,779
|
|
|
|
204,260
|
|
|
|
(20,638,881
|
)
|
|
|
4,526,344,454
|
|
|
|
119,430,738
|
|
|
|
852,508,968
|
|
|
|
5,477,849,539
|
|
|
|
13,810,752
|
|
|
|
5,491,660,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Repurchase of ordinary shares
|
(2,797,032 |
)
|
|
|
—
|
|
|
|
(49,219,318 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(49,219,318
|
)
|
|
|
—
|
|
|
|
(49,219,318 | ) | ||
Exercise of share options
|
600,014 |
|
|
|
—
|
|
|
|
13,438,974 |
|
|
|
(6,745,258 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
6,693,716 |
|
|
|
—
|
|
|
|
6,693,716 | |||
Retirement of ordinary shares
|
(1 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|||
Purchase of subsidiaries’ equity from
non-controlling
interest holders
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,898,467 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,898,467
|
)
|
|
|
(17,245,533 |
)
|
|
|
(24,144,000 | ) | ||
Liquidation of subsidiaries’ equity from
non-controlling
interest holders
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(467,433 |
)
|
|
|
(467,433 | ) | ||
Stock-based compensation (note 18)
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
78,754,828 |
|
|
|
—
|
|
|
|
—
|
|
|
|
78,754,828 |
|
|
|
—
|
|
|
|
78,754,828 | |||
Net income
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,369,517,847 |
|
|
|
3,369,517,847 |
|
|
|
3,902,214 |
|
|
|
3,373,420,061 | |||
Other comprehensive income
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(234,817,165 |
)
|
|
|
—
|
|
|
|
(234,817,165 |
)
|
|
|
—
|
|
|
|
(234,817,165 | ) | ||
Dividends to shareholders
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(266,671,843 |
)
|
|
|
(266,671,843 |
)
|
|
|
—
|
|
|
|
(266,671,843 | ) | ||
Balance at December 31, 2020
|
|
299,749,760
|
|
|
|
204,260
|
|
|
|
(56,419,225
|
)
|
|
|
4,591,455,557
|
|
|
|
(115,386,427
|
)
|
|
|
3,955,354,972
|
|
|
|
8,375,209,137
|
|
|
|
—
|
|
|
|
8,375,209,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of December 31, 2020, in US$
|
|
|
|
|
|
|
31,305
|
|
|
|
(8,646,625
|
)
|
|
|
703,671,350
|
|
|
|
(17,683,744
|
)
|
|
|
606,184,670
|
|
|
|
1,283,556,956
|
|
|
|
—
|
|
|
|
1,283,556,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
|
|||||||||||||
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|||||||
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||||||||||
Net income
|
306,924,335 | 404,858,740 | 3,373,420,061 | 516,999,242 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
7,190,216 | 10,466,942 | 9,544,137 | 1,462,703 | ||||||||||||
Share-based compensation expense
|
33,410,913 | 82,265,991 | 78,754,828 | 12,069,705 | ||||||||||||
Investment income
|
— | (32,516,817 | ) | — | — | |||||||||||
(Gain) loss on risk assurance liabilities
|
(353,731 | ) | 34,257,754 | 2,268,180 | 347,614 | |||||||||||
Provision for credit losses
|
19,960,050 | 56,478,959 | 109,564,631 | 16,791,514 | ||||||||||||
(Gain) loss on equity method investment
|
(42,684,659 | ) | 926,205 | — | — | |||||||||||
Other income – change in fair value of derivative instruments
|
— | — | (3,289,676 | ) | (504,165 | ) | ||||||||||
Other expenses – change in fair value of derivative instruments
|
— | 3,289,676 | — | — | ||||||||||||
Fair value change of equity investment
|
— | (41,581,818 | ) | (3,315,475,734 | ) | (508,118,886 | ) | |||||||||
Loss on disposal of property and equipment
|
32,432 | 45,639 | 79,756 | 12,223 | ||||||||||||
Unrealized foreign exchange (gain) loss, net
|
(1,447,099 | ) | (5,141,112 | ) | 8,848,354 | 1,356,070 | ||||||||||
Deferred income tax (benefit) expense
|
(32,694,920 | ) | (9,034,211 | ) | 248,151,964 | 38,030,952 | ||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable
|
(918,623 | ) | (56,086,171 | ) | 6,968,776 | 1,068,012 | ||||||||||
Financing receivables
|
(20,750,252 | ) | (39,987,198 | ) | (83,186,886 | ) | (12,748,948 | ) | ||||||||
Contract assets
|
— | 23,104,124 | (613,648,965 | ) | (94,045,818 | ) | ||||||||||
Receivables from related parties
|
9,636,927 | — | — | — | ||||||||||||
Other current and
non-current
assets
|
33,100,697 | (56,811,099 | ) | (694,994,714 | ) | (106,512,600 | ) | |||||||||
Payables to related parties
|
(1,514,984 | ) | — | — | — | |||||||||||
Risk assurance liabilities
|
43,628,637 | 52,484,356 | 198,608,646 | 30,438,107 | ||||||||||||
Other current and
non-current
liabilities
|
(168,733,602 | ) | (4,124,725 | ) | 52,774,440 | 8,088,036 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by/ (used in) operating activities
|
|
184,786,337
|
|
|
422,895,235
|
|
|
(621,612,202
|
)
|
|
(95,266,239
|
)
|
||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from investing activities:
|
||||||||||||||||
Repayments of finance lease receivables
|
1,114,545,502 | 1,358,838,393 | 1,839,778,206 | 281,958,346 | ||||||||||||
Origination of finance lease receivables
|
(2,024,328,766 | ) | (2,071,721,858 | ) | (2,256,358,577 | ) | (345,802,081 | ) | ||||||||
Proceeds from collection of short-term consumer financing receivables
|
— | 25,140,348 | 12,248,145 | 1,877,110 | ||||||||||||
Origination of short-term consumer financing receivables
|
— | (39,716,300 | ) | — | — | |||||||||||
Proceeds from redemption of short-term investments
|
2,618,890,000 | 7,295,012,425 | 1,020,672,114 | 156,424,845 | ||||||||||||
Proceeds from available for sale financial assets
|
— | 179,351,253 | 12,182,947 | 1,867,118 | ||||||||||||
Proceeds from third party loans
|
— | 26,743,400 | — | — | ||||||||||||
Proceeds from long-term investments
|
— | 90,521,295 | — | — | ||||||||||||
Disposal of equity method investments
|
143,770 | 100,000 | — | — | ||||||||||||
Proceeds from repayments of loans from shareholders
|
114,000,000 | — | — | — | ||||||||||||
Disposal of property and equipment and intangible assets
|
— | 8,475 | 31,840 | 4,880 | ||||||||||||
Purchase of short-term investments
|
(2,821,444,000 | ) | (7,613,350,054 | ) | (1,116,757,156 | ) | (171,150,522 | ) | ||||||||
Purchase of long-term investments
|
(100,000,000 | ) | (406,307,000 | ) | — | — | ||||||||||
Purchases of property and equipment and intangible assets
|
(14,389,405 | ) | (43,025,999 | ) | (5,360,566 | ) | (821,543 | ) | ||||||||
Step acquisitions, net of cash acquired
|
(108,361,071 | ) | — | — | — | |||||||||||
Origination of loans provided to related parties and third-parties
|
(417,703,400 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities
|
|
(1,638,647,370
|
)
|
|
(1,198,405,622
|
)
|
|
(493,563,047
|
)
|
|
(75,641,847
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
|
|||||||||||||
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|||||||
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
||||||||||||
Proceeds from contribution of shareholders net of incremental costs
|
3,307,348,769 | — | — | — | ||||||||||||
Proceeds from initial public offering, net of issuance costs
|
272,145,213 | — | — | — | ||||||||||||
Payment to repurchase treasury shares
|
— | (20,638,881 | ) | (49,219,318 | ) | (7,543,190 | ) | |||||||||
Liquidation of subsidiaries
|
— | (574,212 | ) | (467,433 | ) | (71,637 | ) | |||||||||
Proceeds from borrowings
|
616,245,628 | 2,695,357,550 | 3,369,740,855 | 516,435,380 | ||||||||||||
Proceeds from exercise of share options
|
— | — | 6,693,716 | 1,025,857 | ||||||||||||
Purchase of subsidiary’s equity from
non-controlling
interest holder
|
(4,488,906 | ) | — | (24,144,000 | ) | (3,700,230 | ) | |||||||||
Repayment of borrowings
|
(73,057,135 | ) | (1,686,482,435 | ) | (3,416,211,500 | ) | (523,557,318 | ) | ||||||||
Distribution to shareholders
|
(27,063,546 | ) | (257,114,132 | ) | (267,214,749 | ) | (40,952,452 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by/ (used in) financing activities
|
|
4,091,130,023
|
|
|
730,547,890
|
|
|
(380,822,429
|
)
|
|
(58,363,590
|
)
|
||||
|
|
|
|
|
|
|
|
|||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
110,476,450 | 11,516,258 | (36,093,321 | ) | (5,531,543 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
2,747,745,440
|
|
|
(33,446,239
|
)
|
|
(1,532,090,999
|
)
|
|
(234,803,219
|
)
|
||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at beginning of the year
|
1,132,683,522 | 3,880,428,962 | 3,846,982,723 | 589,575,896 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at the end of the year
|
|
3,880,428,962
|
|
|
3,846,982,723
|
|
|
2,314,891,724
|
|
|
354,772,677
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets
|
||||||||||||||||
Cash and cash equivalents
|
2,912,901,189 | 2,002,314,688 | 1,426,899,576 | 218,681,927 | ||||||||||||
Restricted cash – current
|
298,900,155 | 970,993,759 | 9,693,008 | 1,485,518 | ||||||||||||
Restricted cash –
non-current
|
668,627,618 | 873,674,276 | 878,299,140 | 134,605,232 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows
|
|
3,880,428,962
|
|
|
3,846,982,723
|
|
|
2,314,891,724
|
|
|
354,772,677
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||||||
Cash paid for income taxes
|
130,531,099 | 78,203,607 | 101,878,045 | 15,613,493 | ||||||||||||
Cash paid for interest
|
3,776,454 | 154,589,750 | 139,952,105 | 21,448,598 |
1.
|
ORGANIZATION
|
Entity
|
|
Date of incorporation
|
|
|
Place of
incorporation |
|
|
Percentage of
legal ownership by the Company |
|
|
Principal activities
|
|||
Subsidiaries
|
|
|
|
|
||||||||||
Cango Group Limited (“Cango HK”)
|
|
|
October 31, 2017
|
|
|
|
Hong Kong
(“HK”)
|
|
|
|
100
|
%
|
|
Investment holding |
Express Group Development Limited (“Express Limited”)
|
|
|
June 30, 2016
|
|
|
|
HK
|
|
|
|
100
|
%
|
|
Investment holding |
Can Gu Long (Shanghai) Information Technology Consultation Service Co., Ltd. (“Cangulong” or Wholly Foreign Owned Enterprise “WFOE”)
|
|
|
January 25, 2018
|
|
|
|
PRC
|
|
|
|
100
|
%
|
|
Investment holding |
VIE
|
|
|
|
|
||||||||||
Shanghai Cango Investment and Management Consultation Service Co., Ltd. (“Shanghai Cango”)
|
|
|
August 30, 2010
|
|
|
|
PRC
|
|
|
|
Nil
|
|
|
Provision of automotive financing facilitation, automotive transaction facilitation and aftermarket service facilitation. |
1.
|
ORGANIZATION - CONTINUED
|
|
(1)
|
Power of Attorney Agreements:
|
|
(2)
|
Exclusive Option Agreement:
|
|
(3)
|
Exclusive Business Cooperation Agreement:
|
1.
|
ORGANIZATION - CONTINUED
|
|
(4)
|
Equity Pledge Agreement
|
|
1)
|
Financial support undertaking letter
|
|
2)
|
Resolutions of the sole director of Cango Inc. (the “Resolutions”)
|
1.
|
ORGANIZATION - CONTINUED
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Cash and cash equivalents
|
1,781,925,125 | 1,003,740,459 | 153,829,955 | |||||||||
Other current assets
|
2,364,681,520 | 3,194,408,176 | 489,564,471 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets
|
|
4,146,606,645
|
|
|
4,198,148,635
|
|
|
643,394,426
|
|
|||
|
|
|
|
|
|
|||||||
Finance lease
receivables—non-current
|
1,448,958,373 | 1,454,499,864 | 222,911,857 | |||||||||
Other
non-current
assets
|
1,469,144,834 | 1,754,832,407 | 268,939,831 | |||||||||
|
|
|
|
|
|
|||||||
Total
non-current
assets
|
|
2,918,103,207
|
|
|
3,209,332,271
|
|
|
491,851,688
|
|
|||
|
|
|
|
|
|
|||||||
Total assets
|
|
7,064,709,852
|
|
|
7,407,480,906
|
|
|
1,135,246,114
|
|
|||
|
|
|
|
|
|
|||||||
Short-term debts
|
1,439,749,760 | 355,816,940 | 54,531,332 | |||||||||
Other current liabilities
|
1,468,827,161 | 2,088,849,541 | 320,130,199 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities
|
|
2,908,576,921
|
|
|
2,444,666,481
|
|
|
374,661,531
|
|
|||
|
|
|
|
|
|
|||||||
Long-term debts
|
301,667,717 | 977,791,191 | 149,853,056 | |||||||||
Other
non-current
liabilities
|
34,126,296 | 17,394,154 | 2,665,771 | |||||||||
|
|
|
|
|
|
|||||||
Total
non-current
liabilities
|
|
335,794,013
|
|
|
995,185,345
|
|
|
152,518,827
|
|
|||
|
|
|
|
|
|
|||||||
Total liabilities
|
|
3,244,370,934
|
|
|
3,439,851,826
|
|
|
527,180,358
|
|
|||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenues
|
1,091,431,610 | 1,440,068,825 | 2,052,431,752 | 314,548,928 | ||||||||||||
Net income
|
298,973,421 | 353,558,726 | 399,366,632 | 61,205,614 |
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net cash provided by/ (used in) operating activities
|
129,762,525 | 405,810,921 | (626,884,394 | ) | (96,074,237 | ) | ||||||||||
Net cash used in investing activities
|
(1,474,496,320 | ) | (782,481,722 | ) | (81,038,760 | ) | (12,419,733 | ) | ||||||||
Net cash provided by/ (used in) financing activities
|
2,253,082,674 | 1,004,220,135 | (71,082,260 | ) | (10,893,833 | ) |
1.
|
ORGANIZATION - CONTINUED
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Finance lease receivables – current
|
556,315,579 | 605,746,128 | 92,834,656 | |||||||||
Other current assets
|
88,136,131 | 224,309 | 34,377 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets
|
|
644,451,710
|
|
|
605,970,437
|
|
|
92,869,033
|
|
|||
|
|
|
|
|
|
|||||||
Finance lease receivable –
non-current
|
389,666,998 | 101,206,823 | 15,510,624 | |||||||||
Total
non-current
assets
|
|
389,666,998
|
|
|
101,206,823
|
|
|
15,510,624
|
|
|||
|
|
|
|
|
|
|||||||
Total assets
|
|
1,034,118,708
|
|
|
707,177,260
|
|
|
108,379,657
|
|
|||
|
|
|
|
|
|
|||||||
Long-term debts—current
|
539,153,392 | 401,761,874 | 61,572,701 | |||||||||
Other current liabilities
|
60,727,770 | 59,187 | 9,071 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities
|
|
599,881,162
|
|
|
401,821,061
|
|
|
61,581,772
|
|
|||
|
|
|
|
|
|
|||||||
Long-term borrowings
|
79,884,342 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total
non-current
liabilities
|
|
79,884,342
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|||||||
Total liabilities
|
|
679,765,504
|
|
|
401,821,061
|
|
|
61,581,772
|
|
|||
|
|
|
|
|
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
• |
Identify the contract(s) with a customer;
|
• |
Identify the performance obligations in the contract;
|
• |
Determine the transaction price;
|
• |
Allocate the transaction price to the performance obligations in the contract; and
|
• |
Recognize revenue when (or as) the entity satisfies a performance obligation.
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
|
3.
|
SHORT-TERM INVESTMENTS
|
Cost basis | Unrealized Gains | Balance | Balance | |||||||||||||
RMB | RMB | RMB | USD | |||||||||||||
Equity investment:
|
||||||||||||||||
As of December 31, 2019
|
506,307,000 | 41,581,818 | 547,888,818 | 80,695,301 | ||||||||||||
As of December 31, 2020
|
495,750,000 | 3,190,793,199 | 3,686,543,199 | 564,987,463 |
4.
|
ACCOUNTS RECEIVABLE, NET
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Accounts receivable
|
148,562,946 | 141,594,170 | 21,700,256 | |||||||||
Less: Allowance for doubtful accounts
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Accounts receivable, net
|
148,562,946 | 141,594,170 | 21,700,256 | |||||||||
|
|
|
|
|
|
5.
|
GOODWILL
|
Shanghai Chejia
|
||||||||
RMB
|
US$
|
|||||||
Balance at December 31, 2018
|
145,063,857 | 21,098,663 | ||||||
|
|
|
|
|||||
Balance at December 31, 2019
|
145,063,857 | 20,837,119 | ||||||
|
|
|
|
|||||
Balance at December 31, 2020
|
145,063,857 | 22,232,009 | ||||||
|
|
|
|
6.
|
FINANCE LEASE RECEIVABLES, NET
|
6.1 |
Finance lease receivables consists of the following:
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Finance lease receivables
|
3,484,919,078 | 3,848,670,074 | 589,834,494 | |||||||||
Add:
|
420,074 | 390,796 | 59,893 | |||||||||
Less:
|
(356,209,820 | ) | (335,437,061 | ) | (51,407,979 | ) | ||||||
Less:
|
(19,088,837 | ) | (23,726,420 | ) | (3,636,233 | ) | ||||||
|
|
|
|
|
|
|||||||
Total finance lease receivables, net
|
|
3,110,040,495
|
|
|
3,489,897,389
|
|
|
534,850,175
|
|
|||
|
|
|
|
|
|
|||||||
Finance lease receivables—current
|
1,661,082,122 | 2,035,397,525 | 311,938,318 | |||||||||
Finance lease
receivables—non-current
|
1,448,958,373 | 1,454,499,864 | 222,911,857 |
|
|
Contractual maturities
|
|
|||||||||||||||||
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
Thereafter
|
|
|
Total
|
|
|||||
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|||||
Finance lease receivables
|
2,154,625,037 | 1,163,138,961 | 524,223,451 | 6,682,625 | 3,848,670,074 | |||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Finance lease receivables
|
330,210,734 | 178,258,844 | 80,340,759 | 1,024,157 | 589,834,494 |
6.3 |
The following table presents the aging of finance lease receivables principal as of December 31, 2019 and 2020:
|
As of December 31,
|
||||||||||||
2019
|
2020
|
|||||||||||
RMB
|
RMB
|
US$
|
||||||||||
Aging of finance lease receivables principal:
|
||||||||||||
Current
|
|
3,043,067,511
|
|
|
3,423,777,666
|
|
|
524,716,884
|
|
|||
1-30
days past due
|
|
70,311,661
|
|
|
68,919,540
|
|
|
10,562,382
|
|
|||
31-60
days past due
|
|
4,672,808
|
|
|
7,515,295
|
|
|
1,151,769
|
|
|||
61-90
days past due
|
|
2,821,449
|
|
|
5,260,689
|
|
|
806,236
|
|
|||
91-120
days past due
|
|
3,500,436
|
|
|
3,678,200
|
|
|
563,709
|
|
|||
121-150
days past due
|
|
1,977,944
|
|
|
2,570,865
|
|
|
394,002
|
|
|||
151-180
days past due
|
|
2,777,523
|
|
|
1,901,554
|
|
|
291,426
|
|
|||
|
|
|
|
|
|
|||||||
|
3,129,129,332
|
|
|
3,513,623,809
|
|
|
538,486,408
|
|
||||
|
|
|
|
|
|
|
|
As of December 31,
|
|
|||||||||
|
|
2019
|
|
|
2020
|
|
||||||
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|||
Balance at the beginning of the year
|
|
|
13,544,836
|
|
|
|
19,088,837
|
|
|
|
2,925,492
|
|
Additions
|
|
18,855,252
|
|
|
36,282,049
|
|
|
5,560,468
|
|
|||
Charge-offs
|
|
(13,311,251
|
)
|
|
(31,644,466
|
)
|
|
(4,849,727
|
)
|
|||
|
|
|
|
|
|
|||||||
Balance at the end of the year
|
|
19,088,837
|
|
|
23,726,420
|
|
|
3,636,233
|
|
|||
|
|
|
|
|
|
7.
|
PREPAYMENTS AND OTHER CURRENT ASSETS
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Prepayments for vehicles
|
4,250,400 | 403,116,119 | 61,780,248 | |||||||||
Vehicles and telematics devices
|
6,790,158 | 54,725,824 | 8,387,099 | |||||||||
Accrued input value-added tax
|
4,382,079 | 26,623,275 | 4,080,195 | |||||||||
Deposits held by third-parties
|
5,737,012 | 18,171,682 | 2,784,932 | |||||||||
Prepaid expenses
|
7,768,447 | 14,331,513 | 2,196,400 | |||||||||
Other receivables from third parties
|
55,506,906 | 10,461,282 | 1,603,262 | |||||||||
Interest receivables
|
15,348,204 | 4,889,508 | 749,350 | |||||||||
Loan to suppliers
|
3,415,680 | 1,573,800 | 241,195 | |||||||||
Others
|
14,246,396 | 24,467,956 | 3,749,880 | |||||||||
|
|
|
|
|
|
|||||||
|
117,445,282
|
|
|
558,360,959
|
|
|
85,572,561
|
|
||||
|
|
|
|
|
|
8.
|
INTANGIBLE ASSETS
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Finite-lived intangible asset:
|
||||||||||||
Software
|
3,641,588 | 4,164,764 | 638,278 | |||||||||
Less: Accumulated amortization
|
(1,974,849 | ) | (2,368,396 | ) | (362,973 | ) | ||||||
|
|
|
|
|
|
|||||||
Total finite-lived intangible asset
|
1,666,739 | 1,796,368 | 275,305 | |||||||||
|
|
|
|
|
|
|||||||
Indefinite-lived intangible asset:
|
||||||||||||
License*
|
43,091,503 | 43,091,503 | 6,604,062 | |||||||||
|
|
|
|
|
|
|||||||
Total infinite-lived intangible asset
|
43,091,503 | 43,091,503 | 6,604,062 | |||||||||
|
|
|
|
|
|
|||||||
44,758,242 | 44,887,871 | 6,879,367 | ||||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
Software
|
284,240 | 248,998 | 200,631 | 194,840 | 194,840 | |||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
Software
|
43,562 | 38,161 | 30,748 | 29,860 | 29,860 |
* |
The Company acquired Fushun Insurance Brokerage Co., Ltd in 2019. The acquisition met the “substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets” criteria and is not considered a business combination in accordance with ASC Topic 805.
|
9.
|
SHORT-TERM AND LONG-TERM DEBTS
|
Name
|
|
Fixed annual rate (%)
|
|
|
Term
|
|
|
As of December 31, 2019
|
|
|||||||
|
|
|
|
|
|
|
|
RMB
|
|
|||||||
Short-term borrowings
|
|
|
2.51 |
%-7.00%
|
|
|
1-12 months
|
|
|
|
|
1,439,749,760
|
|
|||
Name
|
|
Fixed annual rate (%)
|
|
|
Term
|
|
|
As of December 31, 2020
|
|
|||||||
|
|
|
|
|
|
|
|
RMB
|
|
|
US$
|
|
||||
Short-term borrowings
|
|
|
3.40 |
%-6.80%
|
|
|
1-12 months
|
|
|
|
355,816,940
|
|
|
|
54,531,332
|
|
Name
|
|
Fixed annual rate (%)
|
|
|
Term
|
|
|
As of December 31, 2019
|
|
|||||||
|
|
|
|
|
|
|
|
RMB
|
|
|||||||
Securitization debt payables (i)
|
|
|
5.06 |
%-5.20%
|
|
|
15-18 months
|
|
|
|
|
619,037,733
|
|
|||
Co-financing
debt payables (ii)
|
|
|
6.50 |
%-6.60%
|
|
|
24-36
months
|
|
|
|
|
446,048,773
|
|
|||
Long-term
borrowings
|
|
|
4.75 |
%
|
|
|
36
|
|
|
|
|
100,000,000
|
|
|||
|
|
|
|
|
|
|||||||||||
|
|
|
|
1,165,086,506
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Name
|
|
Fixed annual rate (%)
|
|
|
Term
|
|
|
As of December 31, 2020
|
|
|||||||
|
|
|
|
|
|
|
|
RMB
|
|
|
US$
|
|
||||
Securitization debt payables (i)
|
|
|
4.73 |
%-6.00%
|
|
|
18-20 months
|
|
|
|
401,761,874
|
|
|
|
61,572,701
|
|
Co-financing
debt payables (ii)
|
|
|
5.5 |
%-6.60%
|
|
|
24-36
months
|
|
|
|
1,697,757,491
|
|
|
|
260,192,719
|
|
Long-term
borrowings
|
|
|
4.75 |
%-6.00%
|
|
|
36 months
|
|
|
|
107,055,556
|
|
|
|
16,406,982
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
2,206,574,921
|
|
|
|
338,172,402
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
(i) |
In the ordinary course of business, the Company transfers finance leases to certain Funding Partners. The Company periodically securitizes its finance lease receivables through the transfer of those assets to a securitization vehicle. The securitization vehicle then issues debt securities to third-party investors and the company held all subordinated tranches. However, in accordance with ASC 860
Transfers and Servicing the finance leases
619,037,734
and RMB
401,761,874
(US$
61,572,701
) are derived from such finance lease transfer.
|
(ii) |
The Company provides consumer loans to borrowers through commercial banks. The Company is required to make scheduled payments to the commercial banks regardless of borrower repayments.
|
9.
|
SHORT-TERM AND LONG-TERM DEBTS - CONTINUED
|
10.
|
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Customer advances
|
67,098,949 | 136,893,906 | 20,979,909 | |||||||||
Payable to employees
|
42,469,850 | 66,058,774 | 10,123,950 | |||||||||
Payable to dealers
|
29,666,154 | 37,610,651 | 5,764,084 | |||||||||
Other tax payables
|
8,210,599 | 26,851,725 | 4,115,207 | |||||||||
Deposit due to third-parties
|
21,026,154 | 19,105,683 | 2,928,074 | |||||||||
Payable to suppliers
|
8,233,432 | 5,090,553 | 780,161 | |||||||||
Accrued professional service fees
|
4,380,000 | 4,630,000 | 709,579 | |||||||||
Interest payable
|
2,890,110 | 1,237,131 | 189,599 | |||||||||
Amount due to third-parties
|
59,764,366 | — | — | |||||||||
Derivative financial liability
|
3,289,676 | — | — | |||||||||
Others
|
31,660,944 | 27,255,779 | 4,177,131 | |||||||||
|
|
|
|
|
|
|||||||
278,690,234 | 324,734,202 | 49,767,694 | ||||||||||
|
|
|
|
|
|
11.
|
RISK ASSURANCE LIABILITIES
|
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Balance at the beginning of the year
|
173,210,363 | 259,952,473 | 39,839,459 | |||||||||
Fair value of risk assurance liabilities upon the inception of new loans
|
166,911,451 | 348,921,174 | 53,474,509 | |||||||||
Performed risk assurance liabilities
|
(114,427,095 | ) | (150,312,528 | ) | (23,036,402 | ) | ||||||
Net loss on risk assurance liabilities
|
34,257,754 | 2,268,180 | 347,614 | |||||||||
|
|
|
|
|
|
|||||||
Balance at the end of the year
|
259,952,473 | 460,829,299 | 70,625,180 | |||||||||
|
|
|
|
|
|
12.
|
COST OF REVENUE
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cost of vehicle
|
6,596,813 | 11,176,116 | 619,227,148 | 94,900,712 | ||||||||||||
Leasing interest expense
|
21,223,412 | 116,965,519 | 132,322,922 | 20,279,375 | ||||||||||||
Commission to car dealerships
|
203,845,998 | 158,100,562 | 117,985,878 | 18,082,127 | ||||||||||||
Staff incentive
|
71,538,976 | 98,173,090 | 84,046,881 | 12,880,748 | ||||||||||||
Staff cost
|
59,630,520 | 72,999,170 | 73,975,397 | 11,337,226 | ||||||||||||
Others
|
67,223,318 | 81,852,960 | 70,562,523 | 10,814,180 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
430,059,037 | 539,267,417 | 1,098,120,749 | 168,294,368 | |||||||||||||
|
|
|
|
|
|
|
|
13.
|
OTHER INCOME, NET
|
|
|
|
|
|||||||||||||
|
|
For the years ended December 31,
|
|
|||||||||||||
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|||||||
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
||||
Government subsidy
|
33,061,272 | 36,769,550 | 35,888,591 | 5,500,167 | ||||||||||||
Others
|
(360,526 | ) | 4,530,914 | 13,250,746 | 2,030,766 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
32,700,746 | 41,300,464 | 49,139,337 | 7,530,933 | |||||||||||||
|
|
|
|
|
|
|
|
14.
|
INCOME TAXES
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cayman Islands
|
6,053,039 | (5,359,465 | ) | 3,309,525,351 | 507,206,950 | |||||||||||
Hong Kong
|
5,855,270 | 18,479,616 | (14,414,430 | ) | (2,209,108 | ) | ||||||||||
China
|
384,098,580 | 474,699,082 | 448,162,790 | 68,683,952 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total profit before income taxes
|
|
396,006,889
|
|
|
487,819,233
|
|
|
3,743,273,711
|
|
|
573,681,794
|
|
||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Current income tax expense
|
121,777,474 | 91,994,704 | 121,701,686 | 18,651,600 | ||||||||||||
Deferred income tax (benefit) expense
|
(32,694,920 | ) | (9,034,211 | ) | 248,151,964 | 38,030,952 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total income tax expense
|
89,082,554 | 82,960,493 | 369,853,650 | 56,682,552 | ||||||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Non-current
deferred tax assets
|
||||||||||||
Risk assurance liabilities
|
87,316,488 | 223,500,138 | 34,252,895 | |||||||||
Accrued expense
|
9,778 | — | — | |||||||||
Provision for credit losses
|
21,087,186 | 55,584,637 | 8,518,718 | |||||||||
Customer advances
|
4,818,590 | 5,687,968 | 871,719 | |||||||||
Donation
|
— | 125,000 | 19,157 | |||||||||
Net operating loss carry-forward
|
9,561,155 | 65,558,135 | 10,047,224 | |||||||||
Less: valuation allowance
|
(9,561,155 | ) | (7,148,961 | ) | (1,095,626 | ) | ||||||
Non-current
deferred tax assets, net
|
113,232,042 | 343,306,917 | 52,614,087 | |||||||||
|
|
|
|
|
|
|||||||
Non-current
deferred tax liabilities
|
||||||||||||
Acquisition of insurance brokerage license
|
(10,724,126 | ) | (10,724,126 | ) | (1,643,544 | ) | ||||||
Unrealized gain on long-term investment
|
(11,009,130 | ) | (11,009,130 | ) | (1,687,223 | ) | ||||||
Contract assets
|
(1,605,803 | ) | (162,308,288 | ) | (24,874,833 | ) | ||||||
Unrealized tax on capital gains
|
(1,554,966 | ) | — | — | ||||||||
Withholding tax
|
— | (319,079,320 | ) | (48,901,045 | ) | |||||||
Non-current
deferred tax liabilities
|
(24,894,025 | ) | (503,120,864 | ) | (77,106,645 | ) | ||||||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Income before provision of income tax
|
396,006,889 | 487,819,233 | 3,743,273,711 | 573,681,794 | ||||||||||||
PRC statutory income tax rate
|
25 | % | 25 | % | 25 | % | 25 | % | ||||||||
Income tax at statutory tax rate
|
99,001,722 | 121,954,808 | 935,818,428 | 143,420,449 | ||||||||||||
Tax rate differential
|
(2,010,958 | ) | (36,157,163 | ) | (852,831,321 | ) | (130,702,118 | ) | ||||||||
Over-accrued EIT for previous years
|
— | (39,664,283 | ) | — | — | |||||||||||
Impact of tax rate change
|
— |
36,367,754
|
(35,511,678 | ) | (5,442,403 | ) | ||||||||||
Utilization of net operating loss carry-forward
|
— | (9,708,887 | ) | — | — | |||||||||||
Non-deductible
expenses
|
7,970,647 | 22,277,780 | 19,219,052 | 2,945,449 | ||||||||||||
Research and development super-deduction
|
(12,520,141 | ) | (9,961,515 | ) | (10,970,775 | ) | (1,681,345 | ) | ||||||||
Non-taxable
income
|
(2,497,058 | ) | (3,587,542 | ) | (982,266 | ) | (150,539 | ) | ||||||||
Change in valuation allowance
|
(861,658 | ) | 1,439,541 | (2,412,144 | ) | (369,677 | ) | |||||||||
Withholding tax
|
— | — | 317,524,354 | 48,662,736 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expenses
|
89,082,554 | 82,960,493 | 369,853,650 | 56,682,552 | ||||||||||||
|
|
|
|
|
|
|
|
14.
|
INCOME TAXES - CONTINUED
|
15.
|
EARNINGS PER SHARE (“EPS”)
|
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Basic EPS:
|
2018 | 2019 | 2020 | |||||||||||||||||||||||||||||
Class A
Shares |
Class B
Shares |
Class A
Ordinary |
Class B
Ordinary |
Class A Ordinary Shares | Class B Ordinary Shares | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Numerator:
|
||||||||||||||||||||||||||||||||
Net income attributable to Cango Inc’s shareholders
|
216,674,865 | 86,017,200 | 289,646,757 | 101,267,135 | 2,513,009,017 | 385,135,482 | 856,508,830 | 131,265,720 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Denominator:
|
||||||||||||||||||||||||||||||||
Number of shares used for Basic EPS computation (millions of shares)
|
199.83 | 79.33 | 224.07 | 78.34 | 224.10 | 224.10 | 76.38 | 76.38 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic EPS
|
1.08 | 1.08 | 1.29 | 1.29 | 11.21 | 1.72 | 11.21 | 1.72 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Diluted EPS:
|
2018 | 2019 | 2020 | |||||||||||||||||||||||||||||
Class A
Ordinary |
Class B
Ordinary |
Class A
Ordinary |
Class B
Ordinary |
Class A Ordinary Shares | Class B Ordinary Shares | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Numerator:
|
||||||||||||||||||||||||||||||||
Net income attributable to ordinary shareholders
|
217,201,601 | 85,490,464 | 289,937,256 | 100,976,636 | 2,522,647,912 | 386,612,707 | 846,869,935 | 129,788,495 | ||||||||||||||||||||||||
Reallocation of net income as a result of conversion of Class B to Class A shares
|
85,490,464 | — | 100,976,636 | — | 846,869,935 | 129,788,495 | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income attributable to ordinary shareholders for diluted EPS
|
302,692,065 | 85,490,464 | 390,913,892 | 100,976,636 | 3,369,517,847 | 516,401,202 | 846,869,935 | 129,788,495 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Denominator: (millions of shares)
|
||||||||||||||||||||||||||||||||
Number of shares used for basic EPS computation
|
199.83 | 79.33 | 224.07 | 78.34 | 224.10 | 224.10 | 76.38 | 76.38 | ||||||||||||||||||||||||
Weighted average effect of dilutive securities:
|
||||||||||||||||||||||||||||||||
Conversion of Class B to Class A ordinary shares
|
79.33 | — | 78.34 | — | 76.38 | 76.38 | — | — | ||||||||||||||||||||||||
Adjustments for dilutive share options
|
1.72 | — | 0.87 | — | 3.42 | 3.42 | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Number of shares used for diluted EPS computation
|
280.88 | 79.33 | 303.28 | 78.34 | 303.90 | 303.90 | 76.38 | 76.38 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Diluted EPS
|
1.08 | 1.08 | 1.29 | 1.29 | 11.09 | 1.70 | 11.09 | 1.70 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings per share – ADS:
|
||||||||||||||||||||||||||||||||
Denominator used for earnings per ADS – basic
|
99.92 | 112.04 | 112.05 | 112.05 | ||||||||||||||||||||||||||||
Denominator used for earnings per ADS – diluted
|
140.44 | 151.64 | 151.95 | 151.95 | ||||||||||||||||||||||||||||
Earnings per ADS – basic
|
|
2.17
|
|
|
2.59
|
|
|
22.43
|
|
|
3.44
|
|
||||||||||||||||||||
Earnings per ADS – diluted
|
|
2.16
|
|
|
2.58
|
|
|
22.18
|
|
|
3.40
|
|
16.
|
FAIR VALUE MEASUREMENTS
|
Level 1
|
|
–
|
|
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
Level 2
|
|
–
|
|
Include observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
|
Level 3
|
|
–
|
|
Unobservable inputs which are supported by little or no market activity.
|
As of December 31, 2019 | ||||||||||||||||
Active market
(Level 1) |
Observable input
(Level 2) |
Non-observable
input (Level 3)
|
Total | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Asset:
|
||||||||||||||||
Short-term investment
|
— | 597,265,740 | — | 597,265,740 | ||||||||||||
Liability:
|
||||||||||||||||
Derivative financial liability
|
— | 3,289,676 | — | 3,289,676 |
As of December 31, 2020 | ||||||||||||||||
Active market
(Level 1) |
Observable input
(Level 2) |
Non-observable input
(Level 3) |
Total | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Asset:
|
||||||||||||||||
Short-term investment
|
3,686,543,199 | 655,813,413 | — | 4,342,356,612 |
As of December 31, 2020 | ||||||||||||||||
Active market
(Level 1) |
Observable input
(Level 2) |
Non-observable input
(Level 3) |
Total | |||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||
Assets:
|
||||||||||||||||
Short-term investment
|
564,987,463 | 100,507,803 | — | 665,495,266 |
17.
|
RELATED PARTY BALANCES AND TRANSACTIONS
|
Name of related parties
|
|
Relationship with the Company
|
Mr. Jiayuan Lin
|
|
Principal shareholder and Chief Executive Officer of the Company
|
Shanghai Wangjin Investment Management Co., Ltd.
|
|
Company controlled by principal shareholder of the Company
|
Shanghai Chejia(i)
|
|
The Company’s equity method investee
|
(i) |
In September 2018, the Company acquired the remaining 50% of the equity interest in Shanghai Chejia for RMB206,000,000, and Shanghai Chejia became the wholly-owned subsidiary of the Company. Therefore, Shanghai Chejia was deemed to be a related party for the nine months ended September 30, 2018.
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenue
|
||||||||||||||||
Shanghai Chejia
|
14,928,349 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest income
|
||||||||||||||||
Mr. Jiayuan Lin
|
784,805 | — | — | — | ||||||||||||
Shanghai Wangjin Investment Management Co., Ltd
|
430,260 | — | — | — | ||||||||||||
Shanghai Chejia
|
2,199,730 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
3,414,795 | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
18.
|
SHARE-BASED COMPENSATION
|
As of May 25, 2018,
(date of inception) |
As of February 15, 2019,
(date of inception) |
As of October 15, 2020,
(date of inception) |
||||||||||
Batch 1 | Batch 2 | Batch 3 | ||||||||||
Risk-free interest rate (%)
|
2.93 | 2.66 | 0.74 | |||||||||
Volatility (%)
|
38.70 | 38.70 | 37.60 | |||||||||
Expected exercise multiple
|
2.80 | 2.30 | 2.30 | |||||||||
Dividend yield
|
Nil | Nil | Nil | |||||||||
Expected life (in years)
|
10.00 | 10.00 | 10.00 | |||||||||
Exercise price (US$)
|
1.7951 | 1.7951 | 1.7951 | |||||||||
Fair value of ordinary shares (RMB)
|
37.82 | 26.80 | 19.03 |
Number of
options |
Weighted
average exercise price |
Weighted average
Grant date fair value |
Aggregate Intrinsic
Value |
|||||||||||||
RMB | RMB | RMB | ||||||||||||||
Balance, May 25, 2018 (date of inception)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Granted
|
5,569,105 | 12 | 38 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance, December 31, 2018
|
|
5,569,105
|
|
|
12
|
|
|
38
|
|
|
83,277,751
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Granted
|
5,569,105 | 12 | 27 | |||||||||||||
Exercised
|
— | — | — | |||||||||||||
Forfeited
|
(311,213 | ) | — | 34 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance, December 31, 2019
|
|
10,826,997
|
|
|
12
|
|
|
32
|
|
|
209,536,040
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Granted
|
8,353,658 | 12 | 19 | |||||||||||||
Exercised
|
(600,014 | ) | 12 | 38 | ||||||||||||
Forfeited
|
(69,914 | ) | 12 | 24 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance, December 31, 2020
|
|
18,510,727
|
|
|
12
|
|
|
26
|
|
|
205,922,073
|
|
||||
|
|
|
|
|
|
|
|
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cost of revenue
|
1,369,848 | 3,372,908 | 3,075,317 | 471,313 | ||||||||||||
Sales and marketing
|
7,116,524 | 17,522,654 | 16,003,486 | 2,452,642 | ||||||||||||
General and administrative
|
23,187,170 | 57,092,589 | 55,590,630 | 8,519,636 | ||||||||||||
Research and development
|
1,737,371 | 4,277,840 | 4,085,395 | 626,114 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
33,410,913 | 82,265,991 | 78,754,828 | 12,069,705 | |||||||||||||
|
|
|
|
|
|
|
|
19.
|
COMMITMENTS AND CONTINGENCIES
|
RMB | US$ | |||||||
Year ending December 31:
|
||||||||
2021
|
17,379,941 | 2,663,592 | ||||||
2022
|
13,738,864 | 2,105,573 | ||||||
2023 and after
|
100,968,426 | 15,474,088 | ||||||
|
|
|
|
|||||
Total
|
132,087,231 | 20,243,253 | ||||||
|
|
|
|
20.
|
ORDINARY SHARES
|
21.
|
TREASURY SHARES
|
22.
|
RESTRICTED NET ASSETS
|
23.
|
SUBSEQUENT EVENTS
|
24.
|
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
|
As of December 31, | |||||||||||
2019 | 2020 | ||||||||||
RMB | RMB | US$ | |||||||||
ASSETS
|
|||||||||||
Current assets
|
|||||||||||
Cash and cash equivalents
|
1,182,416 | 114,892,815 | 17,608,094 | ||||||||
Short-term investments
|
— | 4,045,157,224 | 619,947,467 | ||||||||
Short-term amounts due from related parties
|
1,474,327,047 | 619,608,050 | 94,959,088 | ||||||||
Other current assets
|
— | 3,578,607 | 548,446 | ||||||||
|
|
|
|
|
|
||||||
Total Current assets
|
|
1,475,509,463
|
|
|
4,783,236,696
|
|
|
733,063,095
|
|
||
|
|
|
|
|
|
||||||
Non-current
assets
|
|||||||||||
Investments in subsidiaries, VIE and VIE’s subsidiaries
|
4,002,882,982 | 3,596,657,570 | 551,211,888 | ||||||||
|
|
|
|
|
|
||||||
Total
non-current
assets
|
4,002,882,982 | 3,596,657,570 | 551,211,888 | ||||||||
|
|
|
|
|
|
||||||
Total assets
|
|
5,478,392,445
|
|
|
8,379,894,266
|
|
|
1,284,274,983
|
|
||
|
|
|
|
|
|
||||||
LIABILITIES
|
|||||||||||
Current liabilities
|
|||||||||||
Other current liabilities
|
542,906 | 4,685,129 | 718,027 | ||||||||
|
|
|
|
|
|
||||||
Total current liabilities
|
|
542,906
|
|
|
4,685,129
|
|
|
718,027
|
|
||
|
|
|
|
|
|
||||||
Total liabilities
|
|
542,906
|
|
|
4,685,129
|
|
|
718,027
|
|
||
|
|
|
|
|
|
||||||
Shareholders’ equity
|
|||||||||||
Class A Ordinary shares (par value of US$0.0001 per share; 420,674,280 shares authorized as of December 31, 2019 and 2020, respectively; 225,831,214 shares issued and 224,968,102 shares outstanding as of December 31, 2019; 227,831,213 shares issued and 224,771,083 shares outstanding as of December 31, 2020)
|
153,044 | 154,483 | 23,676 | ||||||||
Class B Ordinary shares (par value of US$0.0001 per share; 79,325,720 shares authorized as of December 31, 2019 and 2020, respectively; 76,978,677 shares issued and outstanding as of December 31, 2019; 74,978,677 shares issued and outstanding as of December 31, 2020)
|
51,216 | 49,777 | 7,629 | ||||||||
Treasury shares
|
(20,638,881 | ) | (56,419,225 | ) | (8,646,625 | ) | |||||
Additional
paid-in
capital
|
4,526,344,454 | 4,591,455,557 | 703,671,350 | ||||||||
Accumulated other comprehensive income
|
119,430,738 | (115,386,427 | ) | (17,683,744 | ) | ||||||
Retained earnings
|
852,508,968 | 3,955,354,972 | 606,184,670 | ||||||||
|
|
|
|
|
|
||||||
Total shareholders’ equity
|
|
5,477,849,539
|
|
|
8,375,209,137
|
|
|
1,283,556,956
|
|
||
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
5,478,392,445
|
|
|
8,379,894,266
|
|
|
1,284,274,983
|
|
||
|
|
|
|
|
|
25.
|
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONTINUED
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
General and administrative
|
(6,896,907 | ) | (10,164,242 | ) | (11,854,536 | ) | (1,816,787 | ) | ||||||||
Interest Income
|
12,949,945 | 4,831,112 | 1,889,711 | 289,611 | ||||||||||||
Foreign exchange loss
|
— | (26,334 | ) | (706,543 | ) | (108,282 | ) | |||||||||
Fair value change of equity investment
|
— | — | 3,315,475,734 | 508,118,886 | ||||||||||||
Income from equity method investments
|
296,639,027 | 396,273,356 | 59,992,497 | 9,194,251 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income
|
— | — | 4,725,168 | 724,164 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other expense
|
— | — | (4,184 | ) | (641 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income before income taxes
|
|
302,692,065
|
|
|
390,913,892
|
|
|
3,369,517,847
|
|
|
516,401,202
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expense
|
— | — | — | — | ||||||||||||
Net income
|
|
302,692,065
|
|
|
390,913,892
|
|
|
3,369,517,847
|
|
|
516,401,202
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), net of tax
|
109,851,694 | 9,977,742 | (234,817,165 | ) | (35,987,305 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income, net of tax
|
|
412,543,759
|
|
|
400,891,634
|
|
|
3,134,700,682
|
|
|
480,413,897
|
|
||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net income
|
302,692,065 | 390,913,892 | 3,369,517,847 | 516,401,202 | ||||||||||||
Fair value change of equity investment
|
— | — | (3,315,475,734 | ) | (508,118,886 | ) | ||||||||||
Share of profit in subsidiaries, VIE and VIE’s subsidiaries
|
(296,639,027 | ) | (396,273,356 | ) | (59,992,497 | ) | (9,194,251 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
|
3,682,656
|
|
|
(2,989,082
|
)
|
|
(13,000,544
|
)
|
|
(1,992,422
|
)
|
||||
Net cash (used in) provided by investing activities
|
|
(2,818,225,871
|
)
|
|
(604,084,150
|
)
|
|
456,658,680
|
|
|
69,986,005
|
|
||||
Net cash provided by (used in) financing activities
|
|
3,576,481,519
|
|
|
(274,666,096
|
)
|
|
(310,709,163
|
)
|
|
(47,618,262
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
108,586,347 | 12,397,093 | (19,238,574 | ) | (2,948,440 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
|
870,524,651
|
|
|
(869,342,235
|
)
|
|
113,710,399
|
|
|
17,426,881
|
|
||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents and restricted cash at beginning of the year
|
— | 870,524,651 | 1,182,416 | 181,213 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents and restricted cash at end of the year
|
|
870,524,651
|
|
|
1,182,416
|
|
|
114,892,815
|
|
|
17,608,094
|
|
||||
|
|
|
|
|
|
|
|
1 Year Cango Chart |
1 Month Cango Chart |
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