Cango Inc. Announces Up to US$30 Million New Share Repurchase Program

Rhea-AI Summary

Cango Inc. (NYSE: CANG) has announced a new share repurchase program authorizing the buyback of up to US$30 million worth of its outstanding American depositary shares (ADSs) and/or Class A ordinary shares. The program will run for 12 months starting from April 25, 2025.

The repurchases will be conducted through various means including open market purchases, private transactions, and block trades at prevailing market prices. The timing and volume will depend on factors such as price, trading volume, and market conditions. The company plans to fund the buyback using its existing cash balance.

Additionally, Cango's existing US$50 million share repurchase program, announced on April 23, 2024, has resulted in the repurchase of 996,640 ADSs worth approximately US$1.7 million as of March 10, 2025. This existing program will remain active until April 25, 2025.

Positive

• Authorization of new US$30 million share repurchase program shows confidence in company's value
• Multiple active buyback programs demonstrate strong commitment to returning value to shareholders
• Company has sufficient cash balance to fund repurchases

Negative

• Low utilization of existing buyback program (only US$1.7M of US$50M used)
• Significant cash allocation to buybacks might limit funds for operational growth

SHANGHAI, March 13, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin mining company with an automotive transaction service in China, today announced that its board of directors has authorized a new share repurchase program (the "New Share Repurchase Program") under which the Company may repurchase up to US$30 million worth of its outstanding (i) American depositary shares ("ADSs"), each representing two Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from, April 25, 2025.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, in accordance with applicable rules and regulations. The number of ADSs and/or Class A ordinary shares 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, along with Cango's working capital requirements and general business conditions. The Company's board of directors will review the New Share Repurchase Program periodically and may authorize adjustments to its terms and size. The Company plans to fund the repurchases from its existing cash balance.

On April 23, 2024, the Company announced a share repurchase program (the "Existing Share Repurchase Program") under which the Company may repurchase up to US$50 million worth of its outstanding ADSs and/or Class A ordinary shares. Pursuant to the Existing Share Repurchase Program, the Company had repurchased 996,640 ADSs from the open market with cash in the aggregate amount of approximately US$1.7 million up to March 10, 2025. For the avoidance of doubt, the Existing Share Repurchase Program will remain in effect until its expiration on April 25, 2025.

About Cango Inc.

Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Headquartered in Shanghai, China, Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: www.cangoonline.com.

Safe Harbor Statement

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

Investor Relations Contact

Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com

Helen Wu
Piacente Financial Communications
Tel: +86 10 6508 0677
Email: ir@cangoonline.com

View original content:https://www.prnewswire.com/news-releases/cango-inc-announces-up-to-us30-million-new-share-repurchase-program-302400847.html

SOURCE Cango Inc.

FAQ

How much is CANG's new share repurchase program worth and when does it start?

Cango's new share repurchase program is worth up to US$30 million and will start from April 25, 2025, running for 12 months.

How many shares has CANG repurchased under its existing buyback program?

Under the existing program, CANG has repurchased 996,640 ADSs worth approximately US$1.7 million as of March 10, 2025.

What methods will CANG use to execute its new share repurchase program?

CANG will execute repurchases through open market purchases, privately negotiated transactions, block trades, and other legally permissible means.

How will CANG fund its new US$30 million share repurchase program?

Cango plans to fund the repurchases from its existing cash balance.

When does CANG's existing US$50 million share repurchase program expire?

The existing share repurchase program will expire on April 25, 2025.