Cango Inc. Reports Fourth Quarter and Full Year 2019 Unaudited Financial Results

SHANGHAI,March 24,2020 -- Cango,Inc. (NYSE: CANG) ("Cango" or the "Company"),a leading automotive transaction service platform in China,today announced its unaudited financial results for the fourth quarter and full year of 2019.

Fourth Quarter 2019 Financial and Operational Highlights

Total revenues increased by 36.6% to RMB438.5 million (US$63.0 million) from RMB321.1 million in the same period of 2018,outperforming the high end of the Company's guidance by 9.6%.

After-market services facilitation revenues increased to RMB89.6 million (US$12.9 million),or 20.4% of total revenues in the fourth quarter,continuing to serve as an important driver for the Company's revenue growth.

Income from operations increased by 231.0% to RMB117.7 million (US$16.9 million) from RMB35.6 million in the same period of 2018.

Net income increased by 96.8% to RMB102.4 million (US$14.7 million) from RMB52.0 million in the same period of 2018. Non-GAAP net income increased by 86.7% to RMB123.2 million (US$17.7 million) from RMB66.0 million in the same period of 2018.

The amount of financing transactions the Company facilitated in the fourth quarter of 2019 reached RMB9,575.1 million (US$1,375.4 million). The total outstanding balance of financing transactions the Company facilitated was RMB40,031.7 million (US$5,750.2 million) as of December 31,2019.

M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 0.85% and 0.40%,respectively,as of December 31,2019,as compared to 0.85% and 0.33%,as of September 30,2019.

The number of dealers covered by the Company was 49,238 as of December 31,compared to 49,396 as of September 30,2019. The decrease was a result of Cango's efforts to optimize the efficiency of its dealership network by removing certain dealers that failed to meet the Company's standards for operating risks and/or transaction referral capabilities.

Full Year 2019 Financial and Operational Highlights

Total revenues increased by 31.9% to RMB1,440.1 million (US$206.9 million) from RMB1,091.4 million in the full year of 2018.

After-market services facilitation revenues increased by 104.0% to RMB206.0 million (US$29.6 million),continuing to serve as an important driver for the Company's revenue growth.

Income from operations increased by 16.8% to RMB323.3 million (US$46.4 million) from RMB276.7 million in the full year of 2018.

Net income increased by 31.9% to RMB404.9 million (US$58.2 million) from RMB306.9 million in the full year of 2018. Non-GAAP net income increased by 43.1% to RMB487.1 million (US$70.0 million) from RMB340.3 million in the full year of 2018.

The amount of financing transactions the Company facilitated in the full year of 2019 reached RMB28,054.3 million (US$4,029.7 million).

M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 0.85% and 0.40%,as compared to 0.74% and 0.37%,2018.

The number of dealers covered by the Company continued to grow on yearly basis,reaching 49,compared to 46,565 as of December 31,2018.

We recognized revenue for the fourth quarter of 2019 in accordance with ASC 605,Revenue recognition ("ASC 605"). Pursuant to the relevant guidance ofthe Financial Accounting Standard Board,we recognized revenue for full year 2019 in accordance with ASC 606,Revenue recognition ("ASC 606"). As a result,our revenue for full year 2019 was RMB1,440.1 million (US$206.9 million),lower than the amount that we would have recognized under ASC 605. For further information,see "Adoption of New Accounting Standard."

Mr. Jiayuan Lin,Chief Executive Officer of Cango,commented,"We once again delivered strong financial and operating results in the fourth quarter,despite growing macroeconomic uncertainties and industry-wide challenges. Our robust performance is a testament to our ongoing efforts in the optimization of our dealership network,refinement of our cross-selling strategies,and effectiveness of our collaborations with key strategic partners. During the fourth quarter,we further improved the efficiency of our dealership network by removing certain underperforming dealers,which enabled us to better standardize and augment the quality of our service offerings across our network. We also established a solid foothold within China's car insurance market as our car insurance facilitation business achieved significant growth in the fourth quarter under our cross-selling strategy.

Looking into 2020,we are faced with the immediate complications of the COVID-19 outbreak. At the current stage,our top priority is protecting the health and well-being of our employees as well as our dealer partners. As such,we have mobilized our team to secure and distribute facemasks and other protective gear to our colleagues and their families across China. In addition,we have bought COVID-19 personal insurance to all employees,free of charge. At the same time,we also established a special-purpose fund to secure special health insurance policies for a large portion of our dealers' employees and their families.

In terms of our business performance,the epidemic is expected to severely disrupt auto dealers' operations in the first quarter. In addition,the epidemic is likely to adversely affect consumers' disposal income and the market's demand for cars. We expect to experience a decrease in the number of financing transactions,as well as an increase in delinquencies for outstanding transactions as a result of the epidemic. We facilitated 39,138 financing transactions in January and February of 2020,as compared to 71,765 in the same period in 2019. At this point,it is not possible to predict when the epidemic will be effectively contained in China or when its economic impacts will be fully mitigated. Therefore,it may continue to adversely affect our business after the first quarter of 2020.

However,we remain fully confident in the strength of our business model,which had been proven in 2019 as we sustained our growth and business expansion against a backdrop of macroeconomic pressure and an underwhelming automotive market. Our previous success in navigating through adverse market conditions demonstrates our potential to further cement our industry leadership once the epidemic is contained and the industry resumes its growth trajectory.

Mr. Yongyi Zhang,Chief Financial Officer of Cango,stated,"Despite a challenging macroeconomic environment and a stagnating auto market in China,we concluded 2019 with a set of solid fourth quarter results as our total revenues increased by 36.6% year over year to RMB438.5 million. Notably,our after-market services facilitation business continued to serve as an important growth engine,contributing RMB89.6 million or 20.4% of our total revenues in the fourth quarter. Meanwhile,as a result of our efforts to optimize our cost management,we also expanded our profitability in the fourth quarter,as our net income increased by 96.8% to RMB102.4 million. Now,while we assess and monitor the financial impact of the COVID-19 outbreak,we are also actively strengthening our core competencies,which we believe will position us well for the opportunities that will potentially arise after the epidemic."

Fourth Quarter 2019 Financial Results

REVENUES

Total revenues in the fourth quarter of 2019 increased by 36.6% to RMB438.5million (US$63.0 million) from RMB321.1 million in the same period of 2018. Revenues from after-market services facilitation in the fourth quarter of 2019 increased to RMB89.6 million (US$12.9 million) from RMB43.0 million in the same period of last year.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the fourth quarter of 2019 increased to RMB320.8 million (US$46.1 million) from RMB285.6 million in the same period of 2018.

Cost of revenue in the fourth quarter of 2019 increased by 1.8% to RMB157.2 million (US$22.6 million) from RMB154.5 million in the same period of 2018. As a percentage of total revenues,cost of revenue in the fourth quarter of 2019 decreased to 35.9% from 48.1% in the same period of 2018. As a result,the Company's gross profit margin in the fourth quarter of 2019 expanded to 64.1% from 51.9% in the same period of 2018,further demonstrating the Company's increased economies of scale as well as the effectiveness of its cost control initiatives.

Sales and marketing expenses in the fourth quarter of 2019 increased by 17.5% to RMB55.2 million (US$7.9 million) from RMB47.0 million in the same period of 2018. As a percentage of total revenues,sales and marketing expenses in the fourth quarter of 2019 decreased to 12.6% from 14.6% in the same period of 2018. The decrease was a result of the Company's efforts to maintain stable sales and marketing expenses while growing its revenues concurrently.

General and administrative expenses in the fourth quarter of 2019 increased by 26.3% to 66.1 million (US$9.5 million) from 52.3 million in the same period of 2018. This increase was mainly caused by higher share-based compensation expenses during the quarter. As a percentage of total revenues,general and administrative expenses in the fourth quarter of 2019 decreased to 15.1% from 16.3% in the same period of 2018.

Research and development expenses in the fourth quarter of 2019 decreased to RMB18.6 million (US$2.7 million) from RMB19.9 million in the same period of 2018. As a percentage of total revenues,research and development expenses in the fourth quarter of 2019 decreased to 4.2% compared to 6.2% in the same period of 2018.

INCOME FROM OPERATIONS

Income from operations in the fourth quarter of 2019 increased by 231.0% to RMB117.7 million (US$16.9 million) from RMB35.6 million in the same period of 2018.

NET INCOME

Net income in the fourth quarter of 2019 increased by 96.8% to RMB102.4 million (US$14.7 million) from RMB52.0 million in the same period of 2018. Non-GAAP adjusted net income increased by 86.7% to RMB123.2 million (US$17.7 million) from RMB66.0 million in the same period of 2018. Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information,see "Use of Non-GAAP Financial Measure."

NET INCOME PER ADS

Basic and diluted net income per American Depositary Share (ADS) in the fourth quarter of 2019 were both RMB0.62 (US$0.09). Non-GAAP adjusted basic and diluted net income per ADS in the fourth quarter of 2019 were both RMB0.76 (US$0.11). Each ADS represents two of the Company's Class A ordinary shares.

BALANCE SHEET

As of December 31,the Company had cash and cash equivalents of RMB2,002.3 million (US$287.6 million),compared to RMB1,851.2 million as of September 30,2019.

Full Year 2019 Financial Results

REVENUES

Total revenues in the full year of 2019 increased by 31.9% to RMB1,091.4 million in the same period of 2018. Revenues from after-market services facilitation in the full year of 2019 increased to RMB206.0million (US$29.6 million) from RMB101.0 million in the full year of 2018.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the full year of 2019 increased to RMB1,116.8 million (US$160.4 million) from RMB814.7 million in the full year of 2018.

Cost of revenue in the full year of 2019 increased by 25.4% to RMB539.3 million (US$77.5 million) from RMB430.1 million in the full year of 2018. As a percentage of total revenues,cost of revenue in the full year of 2019 decreased to 37.4% from 39.4% in the full year of 2018. As a result,the Company's gross profit margin in the full year of 2019 expanded to 62.6% from 60.6% in the full year of 2018,further demonstrating the Company's increased economies of scale as well as the effectiveness of its cost control initiatives.

Sales and marketing expenses in the full year of 2019 increased by 15.3% to RMB192.8 million (US$27.7 million) from RMB167.2 million in the full year of 2018. As a percentage of total revenues,sales and marketing expenses in the full year of 2019 decreased to 13.4% from 15.3% in the full year of 2018. The decrease was a result of the Company's efforts to maintain stable sales and marketing expenses while growing its revenues concurrently.

General and administrative expenses in the full year of 2019 increased to RMB236.6 million (US$34.0 million),or 16.4% of total revenues,from RMB151.1 million,or 13.8% of total revenues,in the full year of 2018. The increase was mainly due to higher share-based compensation expenses.

Research and development expenses in the full year of 2019 increased to RMB57.4 million (US$8.2 million) from RMB46.7 million in the full year of 2018. As a percentage of total revenues,research and development expenses in the full year of 2019 decreased to 4.0% compared to 4.3% in the full year of 2018.

INCOME FROM OPERATIONS

Income from operations in the full year of 2019 increased by 16.8% to RMB323.3 million (US$46.4 million) from RMB276.7 million in the full year of 2018.

NET INCOME

Net income in the full year of 2019 increased by 31.9% to RMB404.9 million (US$58.2 million) from RMB306.9 million in the full year of 2018. Non-GAAP adjusted net income increased by 43.1% to RMB487.1 million (US$70.0 million) from RMB340.3 million in the full year of 2018. Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information,see "Use of Non-GAAP Financial Measure."

NET INCOME PER ADS

Basic and diluted net income per American Depositary Share (ADS) in the full year of 2019 were RMB2.59 (US$0.37) and RMB2.58 (US$0.37) respectively. Non-GAAP adjusted basic and diluted net income per ADS in the full year of 2019 were RMB3.13 (US$0.45) and RMB3.12 (US$0.45) respectively. Each ADS represents two of the Company's Class A ordinary shares.

Adoption of New Accounting Standard

The Company qualifies as an "emerging growth company",or EGC,pursuant to the Jumpstart Our Business Startups Act of 2012,as amended,or the JOBS Act. An EGC may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards.

Starting from fiscal year 2019,and interim periods within fiscal year 2020,Cango adopted new accounting standards over revenue recognition ("ASC 606") and financial instruments ("ASU 2016-01").

The financial data for fourth quarter 2019 and for fourth quarter 2018 are not adjusted and are reported in accordance with legacy GAAP.

The financial data for full year 2019 is presented in this release under the new accounting standard of ASC 606 and ASU 2016-01,while the financial data for full year 2018 is presented under legacy GAAP.

Business Outlook

For the first quarter of 2020,the Company expects total revenues to be between RMB180 million and RMB210 million. This forecast reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change.

Conference Call Information

The Company's management will hold a conference call on Monday,March 23,2020,at 9:00 P.M. Eastern Time or Tuesday,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 March 31,by dialing the following numbers:

International:

+1-412-317-0088

United States Toll Free:

+1-877-344-7529

Access Code:

10140633

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) is a leading automotive transaction service platform in China connecting dealers,financial institutions,car buyers,and other industry participants. Founded in 2010 by a group of pioneers in China's automotive finance industry,the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company's services primarily consist of automotive financing facilitation,automotive transaction facilitation,and after-market services facilitation. By utilizing its competitive advantages in technology,data insights,and cloud-based infrastructure,Cango is able to connect its platform participants while bringing them a premium user experience. Cango's platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. 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,excluding amounts of outstanding principal that are 180 calendar days or more past due.

Use of Non-GAAP Financial Measure

In evaluating the business,the Company considers and uses Non-GAAP adjusted net income,a non-GAAP measure,as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses,which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance.

Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using Non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of Non-GAAP adjusted net income. Further,the non-GAAP measure may differ from the non-GAAP information used by other companies,including peer companies,and therefore their comparability may be limited.

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 RMB6.9618 to US$1.00,the noon buying rate in effect on December 31,in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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,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

Caesar Cao

Cango Inc.

Tel: +86 21 3183 5088 ext.5521

Email: ir@cangoonline.com

Jack Wang

ICR Inc.

Tel: +1 (646) 405-5056

Email: ir@cangoonline.com

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,

2018

As of December 31,

2019

RMB

RMB

US$

ASSETS:

Current assets:

Cash and cash equivalents

2,912,901,189

2,002,314,688

287,614,509

Restricted Cash

298,900,155

970,993,759

139,474,527

Short-term investments

265,869,717

597,265,740

85,791,856

Accounts receivable,net

86,513,830

148,562,946

21,339,732

Financing receivable,net

5,420,617

9,103,522

1,307,639

Short-term loan principal,net

-

13,298,562

1,910,219

Short-term finance leasing receivable,net

1,123,703,618

1,661,082,122

238,599,518

Short-term contract assets

-

20,688,424

2,971,706

Prepaid expenses and other current assets

61,272,518

117,445,282

16,959

Total current assets

4,754,581,644

5,540,755,045

795,879,665

Non-current assets:

Restricted Cash

668,627,618

873,674,276

125,495,457

Long-term investments

292,099,059

547,888,818

78,699,304

Equity method investments

1,448,416

-

-

Goodwill

145,063,857

145,857

20,837,119

Property and equipment,net

18,286,218

14,736,767

2,116,804

Intangible assets

1,693,407

44,758,242

6,429,119

Deferred tax assets

100,194,993

100,667,946

14,460,046

Long-term finance leasing receivable,282,457,409

1,958,373

208,129,848

Long-term contract assets

-

11,655,356

1,187

Other non-current assets

36,687,583

8,415,694

1,208,839

Total non-current assets

2,546,558,560

3,195,819,329

459,050,723

TOTAL ASSETS

7,301,140,204

8,574,374

1,254,930,388

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term borrowings

660,000,000

1,439,749,760

206,807,113

Long-term debts—current

467,051

863,418,789

124,022,349

Accrued expenses and other current liabilities

211,458,501

278,690,234

40,031,350

Risk assurance liabilities

173,210,363

259,952,473

37,836

Income tax payable

53,517,717

67,308,814

9,668,306

Total current liabilities

1,565,380,632

2,909,120,070

417,868,954

Non-current liabilities:

Long-term borrowings

472,793,340

301,717

43,331,856

Deferred tax liability

-

12,329,929

1,771,083

Other non-current liabilities

7,404

21,796,367

3,130,852

Total non-current liabilities

480,392,744

335,794,013

48,233,791

Total liabilities

2,045,773,376

3,244,914,083

466,102,745

Shareholders' equity

Ordinary shares

204,260

204,260

29,340

Treasury shares

-

(20,638,881)

(2,964,590)

Additional paid-in capital

4,444,078,463

4,526,344,454

650,168,700

Accumulated other comprehensive income

109,452,996

119,430,738

17,155,152

Accumulated retained earnings

698,036,438

852,508,968

122,455,251

Total Cango Inc.'s equity

5,251,772,157

5,477,849,539

786,843,853

Non-controlling interests

3,594,671

13,810,752

1,983,790

Total shareholders' equity

5,255,366,828

5,491,660,291

788,827,643

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

7,388

CANGO INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(Amounts in Renminbi ("RMB") and US dollar ("US$"),except for number of shares and per share data)

For the three months ended

For the years ended December 31,

December 31,2018

September 30,2019

December 31,2019

2018

2019

RMB

RMB

RMB

US$

RMB

RMB

US$

Revenues

321,136,126

351,290,100

438,533,179

62,991,350

1,091,414,277

1,440,068,825

206,852,944

Operating cost and expenses:

Cost of revenue

154,482,542

125,416,378

157,220,585

22,583,324

430,059,037

539,267,417

77,918

Sales and marketing

46,207

47,576,811

55,183,623

7,926,631

167,419

192,811,348

27,695,617

General and administrative

52,277,614

52,318,827

66,217

9,487,520

151,075,936

236,551,077

33,978,436

Research and development

19,942,024

13,181,083

18,630,984

2,676,173

46,709,014

57,405,921

8,245,845

Net loss (gain) on risk assurance liabilities

14,885,426

7,489,058

6,537,857

939,104

(353,731)

34,257,754

4,920,818

Provision for financing receivables

(2,968,832)

15,577,884

17,205,137

2,471,363

19,960,050

56,478,959

8,112,695

Total operation cost and expense

285,570,981

261,560,041

320,828,403

46,084,115

814,694,725

1,476

160,329

Income from operations

35,145

89,730,059

117,704,776

16,907,235

276,719,552

323,296,349

46,438,615

Interest and investment income,net

20,096,730

41,110,413

13,305,220

1,911,175

61,465,449

96,004,567

13,790,193

Income (Loss) from equity method investments

285,318

-

-

-

42,684,659

(926,205)

(133,041)

Interest expense

(4,751,027)

(3,288,553)

(162,691)

(23,369)

(19,010,616)

(13,818)

(1,933,095)

Foreign exchange gain,net

764,203

1,457

3,053,854

438,659

1,447,099

5,141,112

738,475

Other income

(270,914)

17,304,702

2,402,484

345,095

32,700,746

82,882,282

11,905,295

Other expenses

528,669

(300,706)

(3,635,688)

(522,234)

-

(5,121,054)

(735,593)

Net income before income taxes

52,218,124

146,520,372

132,955

19,056,561

396,006,889

487,233

70,070,849

Income tax expenses

(200,115)

(24,388,408)

(30,295,127)

(4,351,623)

(89,554)

(82,493)

(11,916,529)

Net income

52,018,009

122,131,964

102,372,828

14,938

306,924,335

404,858,740

58,154,320

Less: Net income attributable to the noncontrolling

interest shareholders

(3,668)

4,935

8,252,659

1,185,420

4,232,270

13,944,848

2,003,052

Net income attributable to Cango Inc.'s ordinary

shareholders

55,332,677

117,640,029

94,169

13,519,518

302,692,065

390,913,892

56,151,268

Earnings per ADS attributable to ordinary

shareholders:

Basic

0.37

0.78

0.62

0.09

2.17

2.59

0.37

Diluted

0.37

0.78

0.62

0.09

2.16

2.58

0.37

Weighted average ADS used to compute earnings

per ADS attributable to ordinary shareholders:

Basic

151,404,946

151,057,825

150,973,390

150,390

139,578,372

151,677

151,677

Diluted

151,825

151,231,854

151,854

140,436,903

151,641,830

151,830

Other comprehensive income,net of tax

Unrealized gain (loss) on available-for-sale securities

654,828

-

-

-

822,343

(146,801)

(21,087)

Reclassification of losses to net income

-

-

-

-

-

(276,843)

(39,766)

Foreign currency translation adjustment

1,752,328

53,891,387

(32,850,858)

(4,718,731)

109,029,351

10,401,386

1,494,066

Total comprehensive income

54,425,165

176,023,351

69,521,970

9,986,207

416,776,029

414,836,482

59,587,533

Total comprehensive income attributable to Cango

Inc.'s shareholders

57,739,833

171,531,416

61,269,311

8,800,787

412,543,759

400,634

57,584,481

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

For the three months ended

For the years ended December 31,2019

2018

2019

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income

52,320

Add: Share-based compensation expenses

13,837

23,158

20,805,269

2,988,490

33,410,913

82,990

11,816,770

Cost of revenue

572,846

980,317

853,017

122,528

1,369,848

3,908

484,488

Sales and marketing

2,976,001

5,092,863

4,431,522

636,548

7,524

17,522,654

2,516,972

General and administrative

9,696,453

16,593,648

14,854

2,074,012

23,187,170

57,589

8,200,837

Research and development

726,537

1,243,330

1,081,876

155,402

1,737,371

4,839

614,473

Non-GAAP adjusted net income

65,989,846

146,042,122

123,178,097

17,428

340,335,248

487,124,730

69,090

Less: Net income attributable to the noncontrolling interest

shareholders

(3,668)

4,935

8,659

1,420

4,270

13,848

2,052

Non-GAAP adjusted net income attributable to

Cango Inc.'s ordinary shareholders

69,514

141,550,187

114,925,438

16,008

336,978

473,179,882

67,038

Non-GAAP adjusted net income per ADS-basic (Note 1)

0.46

0.94

0.76

0.11

2.41

3.13

0.45

Non-GAAP adjusted net income per ADS-diluted (Note 1)

0.46

0.94

0.76

0.11

2.39

3.12

0.45

Weighted average ADS outstanding—basic

151,946

151,825

150,390

150,390

139,372

151,677

151,677

Weighted average ADS outstanding—diluted

151,825

151,854

151,854

140,903

151,830

151,830

Note 1: Each ADS represents two ordinary shares.

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