Cango Inc. Reports First Quarter 2025 Unaudited Financial Results

Rhea-AI Summary

Cango Inc. (NYSE: CANG) reported its Q1 2025 financial results, marking a significant transformation with its entry into Bitcoin mining. Total revenues surged to RMB1.1 billion (US$145.2 million), primarily driven by Bitcoin mining operations which contributed RMB1.0 billion (US$144.2 million). The company mined 1,541 Bitcoins during the quarter at an average cost of US$70,602.1 per Bitcoin. However, the company reported a net loss of RMB207.4 million (US$28.6 million) compared to a net income of RMB90.0 million in Q1 2024. Cango currently operates 32 EH/s of computing power and plans to add another 18 EH/s by July 2025. The company maintains a strong balance sheet with RMB2.5 billion (US$347.4 million) in cash and short-term investments as of March 31, 2025.

Positive

• Significant revenue growth to RMB1.1 billion, up from RMB64.4 million YoY
• Strong Bitcoin mining performance with 1,541 Bitcoins mined in Q1
• Substantial computing power of 32 EH/s with planned expansion to 50 EH/s
• Robust cash position of RMB2.5 billion
• Reduced credit risk exposure with improved M1+ and M3+ overdue ratios

Negative

• Net loss of RMB207.4 million compared to net income of RMB90.0 million in Q1 2024
• High Bitcoin mining cost at US$70,602.1 per Bitcoin
• Operating loss of RMB155.5 million versus income of RMB74.2 million YoY
• Significant decline in automotive trading-related income to RMB7.6 million from RMB64.4 million YoY

Insights

Financial Analyst

Cango's pivot to Bitcoin mining drove 16x revenue growth but resulted in a significant loss compared to previous year's profit.

Cango's Q1 2025 results reveal a dramatic business transformation from auto financing to Bitcoin mining. The RMB1.1 billion ($145.2 million) revenue represents a 1600% increase year-over-year, with Bitcoin mining accounting for 99% of this revenue. However, this substantial top-line growth masks concerning profitability issues.

Despite mining 1,541 Bitcoins at an average cost of $70,602 per coin (excluding mining machine depreciation), the company recorded an operating loss of RMB155.5 million compared to an operating profit of RMB74.2 million in Q1 2024. This represents a negative operating margin of approximately 14%. The net loss of RMB207.4 million ($28.6 million) contrasts sharply with the RMB90 million profit reported a year earlier.

The cost structure has shifted dramatically, with operating costs ballooning to RMB1.2 billion, primarily driven by Bitcoin mining operations. General and administrative expenses more than doubled to RMB92.5 million. The company's "Mine and Hold" strategy retains mined Bitcoin rather than selling, which explains the disconnect between revenue recognition and cash flow.

The balance sheet remains strong with RMB2.5 billion ($346.7 million) in cash and cash equivalents, though short-term investments decreased significantly from RMB1.2 billion to just RMB5.2 million, suggesting a liquidation to fund mining operations. The planned expansion from 32 EH/s to 50 EH/s hashrate by July 2025 will require substantial capital investment, potentially straining cash reserves further if profitability doesn't improve.

Meanwhile, the legacy auto financing business continues to wind down, with automotive trading revenue falling 88% to RMB7.6 million and credit risk exposure decreasing. The improving M1+ and M3+ overdue ratios (to 2.86% and 1.59% respectively) indicate responsible management of the remaining loan book.

SHANGHAI, May 14, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its unaudited financial results for the first quarter of 2025.

First Quarter 2025 Financial and Operational Highlights

• Total revenues were RMB1.1 billion (US$145.2 million), a significant increase from RMB64.4 million in the same period of 2024. This surge was primarily attributable to our Bitcoin mining business, which generated revenues of RMB1.0 billion (US$144.2 million) in the quarter.
  
  
• A total of 1,541 Bitcoins were mined during the quarter. The average cost to mine Bitcoin, excluding depreciation of mining machines, was US$70,602.1 per Bitcoin in the quarter.
  
  
• Adjusted EBITDA was RMB27.6 million (US$3.8 million) in the first quarter of 2025.
  
  
• The total balance of cash and cash equivalents and short-term investments was RMB2.5 billion (US$347.4 million) as of March 31, 2025.
  
  
• The total outstanding balance of financing transactions the Company facilitated was RMB2.6 billion (US$358.4 million) as of March 31, 2025. Our credit risk exposure has decreased, with only RMB762.4 million (US$105.1 million) of outstanding loan balances where the Company bears credit risks that have not been provided with full bad debt allowance or full risk assurance liabilities. M1+ and M3+ overdue ratios for all outstanding financing transactions facilitated by the Company that have not been provided with full bad debt allowance or full risk assurance liabilities were 2.86% and 1.59%, respectively, as of March 31, 2025, compared with 3.24% and 1.78%, respectively, as of December 31, 2024.

Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, "The first quarter of 2025 marked a new chapter of growth for Cango following our entry into the Bitcoin mining industry in November 2024. Fueled by the strong performance of our mining operations, we generated total revenues of RMB1.1 billion for the quarter. Throughout the quarter, we focused on enhancing our operational efficiency and mined a total of 1,541 Bitcoins, up substantially from 933.8 Bitcoins last quarter. By the end of April, we produced 2,945 Bitcoins from the inception of our Bitcoin mining business."

"Given our strong confidence in the Bitcoin's long-term value appreciation potential, we have adopted a "Mine and Hold" strategy, prioritizing both self-mining and long-term holding. Currently, we operate 32 EH/s of computing power, positioning us among the world's top-tier Bitcoin miners. We expect to add another 18 EH/s by the end of July 2025. Looking ahead, we will continue to consolidate and optimize our existing computing resources to maximize efficiency while actively exploring high-quality M&A opportunities to further scale our operations and deliver long-term value to all stakeholders," concluded Mr. Lin.

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, "We are pleased to report another solid financial performance this quarter, highlighted by total revenue of RMB1.1 billion and a strong balance sheet. We also continued to reduce our credit risk exposure, further bolstering our financial position and flexibility. Supported by this robust foundation, we are well-positioned to expand the Bitcoin mining business and holistically drive the Company's growth."

First Quarter 2025 Financial Results

REVENUES

Total revenues in the first quarter of 2025 were RMB1.1 billion (US$145.2 million), compared with RMB64.4 million in the same period of 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024.

Revenue from the Bitcoin mining business was RMB1.0 billion (US$144.2 million), with a total of 1,541 Bitcoins mined in the first quarter of 2025.

Revenue from automotive trading-related income^[1] was RMB7.6 million (US$1.0 million), compared with RMB64.4 million in the same period of 2024.

OPERATING COSTS AND EXPENSES

Total operating costs and expenses in the first quarter of 2025 were RMB1.2 billion (US$166.7 million). These costs were primarily associated with our Bitcoin mining business.

• Cost of revenue in the first quarter of 2025 was RMB955.1 million (US$131.6 million), compared with RMB29.1 million in the same period of 2024.
  
  
• Sales and marketing expenses in the first quarter of 2025 were RMB415,981 (US$57,324), compared with RMB3.5 million in the same period of 2024.
  
  
• General and administrative expenses in the first quarter of 2025 were RMB92.5 million (US$12.8 million), compared with RMB37.9 million in the same period of 2024.
  
  
• Research and development expenses in the first quarter of 2025 were RMB324,991 (US$44,785), compared with RMB1.1 million in the same period of 2024.
  
  
• Net gain on contingent risk assurance liabilities in the first quarter of 2025 was RMB5.3 million (US$726,124), compared with RMB15.0 million in the same period of 2024.
  
  
• Net recovery on provision for credit losses in the first quarter of 2025 was RMB28.7 million (US$4.0 million), compared with RMB66.3 million in the same period of 2024.

INCOME (LOSS) FROM OPERATIONS

Loss from operations in the first quarter of 2025 was RMB155.5 million (US$21.4 million) compared with income from operations of RMB74.2 million in the same period of 2024.

NET INCOME (LOSS) AND NET INCOME (LOSS) PER ADS

Net loss in the first quarter of 2025 was RMB207.4 million (US$28.6 million) compared with net income of RMB90.0 million in the same period of 2024. Basic and diluted net loss per American Depositary Share (the "ADS") in the first quarter of 2025 were both RMB2.00 (US$0.28). Each ADS represents two Class A ordinary shares of the Company.

ADJUSTED EBITDA

Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million (US$3.8 million) compared with RMB108.4 million in the same period of 2024.

BALANCE SHEET

• As of March 31, 2025, the Company had cash and cash equivalents of RMB2.5 billion (US$346.7 million) compared with RMB1.3 billion as of December 31, 2024.
  
  
• As of March 31, 2025, the Company had short-term investments of RMB5.2 million (US$715,049) compared with RMB1.2 billion as of December 31, 2024.

Business Outlook

We currently maintain a deployed hashrate of 32 EH, demonstrating our operational resilience. As part of our continued commitment to growth and scaling our capabilities, we are targeting a substantial increase in our hashrate over the coming months. We are on track to grow our deployed hashrate to approximately 50 EH before the end of July. This increase is expected to be driven by the closing of our share-settled acquisition of Bitcoin mining assets, positioning us to strengthen our competitive advantage and increase operational efficiency.

Share Repurchase Program

Pursuant to the share repurchase program announced on April 23, 2024, the Company had repurchased 996,640 ADSs with cash in the aggregate amount of approximately US$1.7 million as of April 25, 2025, the day on which the program expired.

Conference Call Information

The Company's management will hold a conference call on Wednesday, May 14, 2025, at 9:00 P.M. Eastern Time or Thursday, May 15, 2025, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:	+1-412-902-4272
United States Toll Free:	+1-888-346-8982
Mainland China Toll Free:	4001-201-203
Hong Kong, China Toll Free:	800-905-945
Conference ID:	Cango Inc.

The replay will be accessible through May 21, 2025, by dialing the following numbers:

International:	+1-412-317-0088
United States Toll Free:	+1-877-344-7529
Access Code:	8016651

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com.

About Cango Inc.

Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. 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. 

Definition of Overdue Ratios

The Company defines "M1+ overdue ratio" as (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.

The Company defines "M3+ overdue ratio" as (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.

Use of Non-GAAP Financial Measure

As part of our review of business performance, we present adjusted EBITDA as Non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, and further excludes share-based compensation expenses and other non-operating income and expenses. We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.

While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of its core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Cango's Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

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

[1] Revenue from automotive trading related income consists revenues generated from loan facilitation income and other related income, guarantee income, leasing income, after-market services income, automotive trading income and others.

 

CANGO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data）
				As of December 31, 2024		As of March 31, 2025
				(Audited)		(Unaudited)	(Unaudited)
				RMB		RMB	US$
ASSETS:
Current assets:
Cash and cash equivalents				1,289,629,981		2,515,712,358	346,674,433
Restricted cash - current				10,813,746		11,210,722	1,544,879
Short-term investments, net				1,231,171,751		5,188,899	715,049
Accounts receivable, net				22,991,951		15,801,108	2,177,451
Finance lease receivables - current, net				20,685,475		19,332,969	2,664,154
Financing receivables, net				5,685,096		3,722,236	512,938
Short-term contract asset, net				33,719,944		19,860,987	2,736,917
Prepayments and other current assets, net				226,352,004		362,016,043	49,887,145
Receivable for bitcoin collateral, net				617,057,765		1,464,654,137	201,834,737
Total current assets				3,458,107,713		4,417,499,459	608,747,703
Non-current assets:
Restricted cash - non-current				287,425,602		161,939,581	22,315,871
Long-term investment				-		400,000,000	55,121,474
Mining machines, net				1,772,319,041		1,619,608,093	223,187,963
Property and equipment, net				6,634,509		6,205,894	855,195
Intangible assets, net				47,425,617		47,259,479	6,512,530
Long-term contract asset, net				17,551,040		348,864	48,075
Finance lease receivables - non-current, net				9,309,227		3,648,111	502,723
Operating lease right-of-use assets, net				40,788,977		38,789,517	5,345,338
Other non-current assets, net				329,761,833		359,761,832	49,576,506
Total non-current assets				2,511,215,846		2,637,561,371	363,465,675
TOTAL ASSETS				5,969,323,559		7,055,060,830	972,213,378
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debts				124,584,293		790,393,522	108,919,140
Accrued expenses and other current liabilities				1,348,300,779		1,999,990,186	275,606,016
Deferred guarantee income				11,787,712		7,974,712	1,098,945
Contingent risk assurance liabilities				31,190,425		20,979,625	2,891,070
Income tax payable				311,130,341		314,258,152	43,305,931
Short-term lease liabilities				7,912,420		7,639,264	1,052,719
Total current liabilities				1,834,905,970		3,141,235,461	432,873,821
Non-current liabilities:
Deferred tax liability				10,724,133		10,724,133	1,477,825
Long-term operating lease liabilities				37,044,466		35,769,502	4,929,169
Other non-current liabilities				19,118		18,131	2,499
Total non-current liabilities				47,787,717		46,511,766	6,409,493
Total liabilities				1,882,693,687		3,187,747,227	439,283,314
Shareholders' equity
Ordinary shares				199,087		199,087	27,434
Treasury shares				(756,517,941)		(754,199,105)	(103,931,416)
Additional paid-in capital				4,725,877,432		4,749,907,787	654,554,796
Accumulated other comprehensive income				152,882,024		114,572,087	15,788,456
Accumulated deficit				(35,810,730)		(243,166,253)	(33,509,206)
Total Cango Inc.'s equity				4,086,629,872		3,867,313,603	532,930,064
Total shareholders' equity				4,086,629,872		3,867,313,603	532,930,064
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY				5,969,323,559		7,055,060,830	972,213,378

 

 

CANGO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data)
				Three months ended March 31
				2024		2025
				(Unaudited)		(Unaudited)	(Unaudited)
				RMB		RMB	US$
Revenues				64,422,494		1,053,883,166	145,228,984
Bitcoin mining income				-		1,046,266,997	144,179,448
Loan facilitation income and other related income				13,821,022		(829,251)	(114,274)
Guarantee income				30,259,581		4,043,650	557,230
Leasing income				4,939,712		2,088,483	287,801
After-market services income				11,637,788		776,803	107,046
Automobile trading income				3,445,040		70,796	9,756
Others				319,351		1,465,688	201,977
Operating cost and expenses:
Cost of revenue				29,058,868		955,091,082	131,615,070
Sales and marketing				3,548,273		415,981	57,324
General and administrative				37,923,531		92,536,718	12,751,901
Research and development				1,098,105		324,991	44,785
Net gain on contingent risk assurance liabilities				(15,018,246)		(5,269,261)	(726,124)
Net recovery on provision for credit losses				(66,339,084)		(28,702,162)	(3,955,264)
Loss from change in fair value of receivable for bitcoin collateral				-		194,957,999	26,865,931
Total operation cost and expense				(9,728,553)		1,209,355,348	166,653,623
(Loss) income from operations				74,151,047		(155,472,182)	(21,424,639)
Interest income				16,503,965		2,152,469	296,618
Net investment income				10,984,524		-	-
Interest expense				-		(9,517,781)	(1,311,585)
Foreign exchange gain (loss), net				131,689		(818,002)	(112,724)
Other income				832,551		13,609,872	1,875,491
Other expenses				(535,390)		(54,180,931)	(7,466,332)
Net income (loss) before income taxes				102,068,386		(204,226,555)	(28,143,171)
Income tax expense				(12,041,600)		(3,128,968)	(431,183)
Net income (loss)				90,026,786		(207,355,523)	(28,574,354)
Net income (loss) attributable to Cango Inc.'s shareholders				90,026,786		(207,355,523)	(28,574,354)
Earnings (losses) per ADS attributable to ordinary shareholders:
Basic				0.85		(2.00)	(0.28)
Diluted				0.80		(2.00)	(0.28)
Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:
Basic				105,521,018		103,783,087	103,783,087
Diluted				112,786,810		103,783,087	103,783,087
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment				20,894,928		(38,309,937)	(5,279,250)
Total comprehensive income (loss)				110,921,714		(245,665,460)	(33,853,604)
Total comprehensive income (loss) attributable to Cango Inc.'s shareholders				110,921,714		(245,665,460)	(33,853,604)

 

 

CANGO INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data
		Three months ended March 31
		2024		2025
		(Unaudited)		(Unaudited)	(Unaudited)
		RMB		RMB	US$
Net (loss) income		90,026,786		(207,355,523)	(28,574,354)
Add: Interest expense		-		9,517,781	1,311,585
Add: Income tax expenses		12,041,600		3,128,968	431,183
Add: Depreciation and amortization		927,576		155,503,915	21,429,012
Cost of revenue		-		154,944,205	21,351,882
General and administrative		879,591		559,710	77,130
Research and development		47,985		-	-
Add: Other expenses		535,390		54,180,931	7,466,332
Less: Other income		832,551		13,609,872	1,875,491
Add: Share-based compensation expenses		5,717,422		26,187,822	3,608,778
Cost of revenue		254,391		58,766	8,098
Sales and marketing		1,046,659		339,524	46,788
General and administrative		4,416,372		25,783,442	3,553,053
Research and development		-		6,090	839
Non-GAAP adjusted EBITDA		108,416,223		27,554,022	3,797,045
Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders		108,416,223		27,554,022	3,797,045

 

 

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SOURCE Cango Inc.

FAQ

What was Cango's (CANG) revenue in Q1 2025?

Cango reported total revenues of RMB1.1 billion (US$145.2 million) in Q1 2025, with RMB1.0 billion coming from Bitcoin mining operations.

How many Bitcoins did Cango (CANG) mine in Q1 2025?

Cango mined 1,541 Bitcoins during Q1 2025 at an average cost of US$70,602.1 per Bitcoin.

What is Cango's (CANG) Bitcoin mining hashrate and expansion plans?

Cango currently operates 32 EH/s of computing power and plans to expand to approximately 50 EH/s by the end of July 2025.

What was Cango's (CANG) net income/loss in Q1 2025?

Cango reported a net loss of RMB207.4 million (US$28.6 million) in Q1 2025, compared to a net income of RMB90.0 million in Q1 2024.

How much cash does Cango (CANG) have as of March 2025?

As of March 31, 2025, Cango had RMB2.5 billion (US$346.7 million) in cash and cash equivalents.