Canggu (CANG.US) Q2 revenue RMB45.1mn, up 137.5% YoY

On August 29, Canggu (CANG.US) announced its financial results for the second quarter of 2024. The results showed that Canggu's total revenue in Q2 was RMB45.1 million, down 93% YoY from RMB675.4 million in the same period last year; its operating profit was US$47 million, compared with an operating loss of US$8.9 million in the same period last year; its net profit was US$86 million, up 137.5% YoY from US$36.2 million in the same period last year.

Operating data-wise, as of June 30, 2024, the total outstanding balance of financing transactions facilitated by the Company was RMB6.2 billion; the M1+ and M3+ delinquency rates of all outstanding financing transactions facilitated by the Company were 2.93% and 1.57%, respectively, compared with 2.87% and 1.51%, respectively, as of March 31, 2024.

Jiayuan Lin, CEO of Canggu, said: "The auto market remained sluggish in the second quarter, posing significant challenges to the industry. To address these challenges, we strengthened our financial stability through rigorous cost management and cost-effective measures, while capitalizing on the huge potential and opportunities in the used car market. In the past quarter, we focused on enhancing the competitiveness of 'Cango U-car' by ensuring the continuous supply of high-quality vehicles, optimizing dealer experience and supply chain management, and improving the convenience and safety of cross-regional delivery."

He added: "In addition to 'Cango U-car', we made significant progress in cross-border used car trading this quarter. Since its launch in March 2024, our international used car website Autocango.com has quickly gained attention from global audiences. We significantly expanded its market coverage and product/service range in the second quarter. So far, its high-quality services and wide supply of over 85,000 high-quality used car SKUs have attracted over 180,000 visits, with more than 20,000 registered users in 207 countries and regions worldwide. Moreover, our streamlined, light asset, and traffic-centric approach allows us to create value while controlling operating costs."

Yongyi Zhang, CFO of the Company, said: "Despite market challenges, we maintained robust financial stability through rigorous cost management and cost-effective measures. As we enter the second half of the year, we will continue to execute strict cost control and risk management strategies while actively exploring new initiatives that leverage Canggu's extensive industry expertise."