Cango (CANG.US) Won the Award for “Best US-Listed Chinese Financial Stock”
On September 24th, 2020, the 2020 Zhitongcaijing Summit Forum on US-Listed Chinese Stocks was successfully held on the bank of West Lake in Hangzhou. This forum was co-sponsored by Zhitongcaijing, which is the No. 1 information platform for HK- and US-listed stocks, and Value Investment West Lake Association. At the forum, the organizers released the list of Best US-Listed Chinese Stocks for 2020, and nine companies including Cango (CANG.US) were selected to the sub-list of Best US-Listed Chinese Financial Stocks.
The sub-list of Best US-Listed Chinese Financial Stocks aims at recognizing US-listed Chinese companies under the financial sector that have the following strengths: controllable policy risks, flexible transformation and upgrading, healthy company governance structure, prominent industry position, profitable main business, and proven ability to provide investors with continuous and stable value return. Cango’s selection to the list this time shows that the company has attracted the attention of the investment industry, and it is both recognition of Cango’s business performance and investment value, and an incentive for the company to continue its hard work so as to bring more value to its investors and shareholders.
Cango was established in 2010. Its founders and management are a highly experienced team who were among the first in China to provide technology-driven auto financial services. The company is headquartered in Shanghai with service networks covering the entire country. Big data and technological innovation being its core driving force, the company has always been dedicated to providing customers with convenient, simple, secure and reliable auto financial and technological services.
Since the beginning of this year, the economic environment has been under pressure both from within and without, and COVID-19 has aggravated the situation. The entire auto industry was impacted to a tremendous degree, and the lower-tier markets where Cango operates have not been recovering as expected. Despite the adverse impact of the general environment, the second quarterly report released at the end of last month showed that Cango has been implementing its established strategies and loan facilitation, which is its base business, has been on a steady rebound, and that at the same time, its auto aftermarket services business, the bulk of which is insurance facilitation, has continued to perform well which has helped the company turn in an impressive report card.
At the second quarterly report teleconference, Cango’s CFO Zhang Yongyi said, “In the wake of the pandemic, we created total revenue of RMB 274 million for the second quarter of 2020. Moreover, our cost optimization measures have continued to play an effective role, and we have maintained a healthy level of gross profit margin for the second quarter. Our operating profit has also turned positive, which is mainly attributed to the company’s effective cost control and better asset performance brought about by improved post-loan management. Our net profit for the second quarter has turned around from a loss to a profit, reaching RMB 70.23 million. Even though the general environment is still full of challenges and uncertainties, we are happy to see that the fundamentals of our business are very solid, and we are very optimistic about the company’s long-term development prospects.”
This year marks the 10th anniversary of Cango’s establishment. Over the past ten years, Cango has grown from an auto finance company into China’s leading new auto retail services platform. It has also become the partner of tens of thousands of auto dealers in China and served a total of more than 1.5 million customers. Cango has been a witness to the rapid development, upgrading and transformation of China’s auto finance industry, and more important, to ten years of daily changes to car buyers’ consumption habits and values.
Being a public company, Cango has always been committed to driving the advancement of the industry it belongs to and providing consumers with better products and services. With that in mind, in a public letter commemorating the 10th anniversary of the company’s establishment, Cango’s co-founder announced the company’s brand-new mission and vision for the future, which is to make car purchase simple and pleasant and to become consumers’ No. 1 choice of car purchase services platform.
The 2020 Best US-Listed Chinese Stocks were selected by Zhitongcaijing and Value Investment West Lake Association, in collaboration with a large number of brokers and investment institutions including Green Pine Capital Partners, Haitong International and Central Wealth Securities Investment Limited. The selection process took six months and included referencing relevant hard data and indicators such as multiple years’ revenues, net profit, net assets debt ratio and ROE, and factoring in online voting and professional opinions from institutional panels and media panels.
It has been reported that this award selection attracted more than 200 US-listed Chinese companies to apply. These companies cover finance, education, e-commerce, technology, big consumption, energy, public utilities and other industries, and their total market value reaches approximately RMB 18 trillion which accounts for nearly 1/5 of China’s GDP for 2019.