Cango Inc. Reports Fourth Quarter and Full Year 2021 Unaudited Financial Results

SHANGHAI,March 11,2022 --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 2021.

Fourth Quarter 2021 Financial and Operational Highlights

Total revenues were RMB1,050.5 million (US$164.9 million),compared with RMB1,097.4 million in the same period of 2020,outperforming the high end of the Company's guidance by 5.1%.

Car trading transactions revenues were RMB703.9 million (US$110.5 million),or 67.0% of total revenues in the fourth quarter of 2021,a 28.7% increase from RMB546.8 million in the same period of 2020.

Automotive financing facilitation revenues were RMB252.0 million (US$39.5 million),compared with RMB398.1 million in the same period of 2020.

The amount of financing transactions the Company facilitated in the fourth quarter of 2021 was RMB5,732.8 million (US$899.6 million). The total outstanding balance of financing transactions the Company facilitated was RMB46,702.1 million (US$7,328.6 million) as of December 31,2021.

M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 1.62% and 0.86%,respectively,as of December 31,2021,compared with 1.58% and 0.76%,as of September 30,2021.

The number of dealers covered by the Company was 45,930 as of December 31,compared with 47,718 as of September 30,2021.

Full Year 2021 Financial and Operational Highlights

Total revenues were RMB3,921.7 million (US$615.4 million),a 91.1% increase from RMB2,052.4 million in the full year of 2020.

Car trading transactions revenues were RMB2,227.2 million (US$349.5 million),or 56.8% of total revenues in the full year of 2021,a 256.5% increase from RMB624.8 million in the full year of 2020.

Automotive financing facilitation revenues were RMB1,233.6 million (US$193.6 million),a 38.3% increase from RMB891.8 million in the full year of 2020.

After-market services facilitation revenues were RMB193.8 million (US$30.4 million),compared with RMB241.2 million in the full year of 2020.

The amount of financing transactions the Company facilitated in the full year of 2021 was RMB30,128.1 million (US$4,727.8 million).

M1+ and M3+ overdue ratios for all financing transactions that remained outstanding and were facilitated by the Company were 1.62% and 0.86%,compared with 0.98% and 0.42%,2020.

The number of dealers covered by the Company was 45,compared with 48,487 as of December 31,2020.

Mr. Jiayuan Lin,Chief Executive Officer of Cango,commented,"While market volatility persisted as Covid-19 and global chip-shortages lingered,we've seen our business built steadily over the past year,with accelerated efforts in transforming Cango into a comprehensive automotive transaction service platform. Fourth quarter total revenues were RMB1.1 billion,exceeding the high end of our previous guidance range. Our car trading transactions business continued to gain momentum in the fourth quarter with revenues up 28.7% year-over-year while contributing to the Company's total revenues by 67.0%. It is also playing a decisive role in upgrading our business to the platform model with an integrated ecosystem covering the entire auto transaction value chain.

"While the challenging backdrop continued to impact our automotive financing facilitation business,we remained focused on optimizing our organizational structure and leveraging technology to improve operating efficiency. Our B2B platform,'Cango Haoche,' which provides one-stop transaction,logistics,finance,insurance and other auto-related services,gained further traction in the fourth quarter,garnering over two million total views since its launch last May. Our after-market services facilitation business also made progress as we completed the integration of Cango's insurance service portal with the Li Auto App. Furthermore,we persist in making every effort to enhance dealer loyalty by empowering them to address their business pain points,while continuously improving the competitiveness of each of our core business segments.

"Looking ahead,we remain cautious regarding the near-term outlook owing to factors including renewed Covid-19 outbreaks,global chip-shortages and other challenges to the macro environment. However,we will continue to focus on strengthening our integrated automotive transaction service platform,and exploring opportunities in the promising new energy vehicle market,while remaining steadfast in our mission to make selling and buying of cars simple and enjoyable."

Mr. Yongyi Zhang,Chief Financial Officer of Cango,stated,"During the fourth quarter,macroeconomic headwinds persisted with global chip shortages directly impacting China's automotive industry. Facing external pressures,we continued to made steady progress in the fourth quarter with top line beating our previous guidance. Moving forward,we will continue to focus attention on enhancing our efficient cost controls and improving operating efficiency,thus to further enhance the profitability of our business."

Fourth Quarter 2021 Financial Results

REVENUES

Total revenues in the fourth quarter of 2021 were RMB1,050.5 million (US$164.9 million)compared with RMB1,097.4 million in the same period of 2020. Revenues from car trading transactionsin the fourth quarter of 2021 were RMB703.9 million (US$110.5 million),continuing to serve as an important revenue contributor. Revenues from automotive financing facilitation and after-market services facilitation in the fourth quarter of 2021 were RMB252.0 million (US$39.5 million)and RMB36.7 million (US$5.8 million),respectively.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the fourth quarter of 2021 were RMB1,207.6 million (US$189.5 million) compared with RMB899.0 million in the same period of 2020. This was mainly due to the related costs incurred by car trading transactions business.

Cost of revenue in the fourth quarter of 2021 increased to RMB880.7 million (US$138.2 million) from RMB723.8 million in the same period of 2020. As a percentage of total revenues,cost of revenue in the fourth quarter of 2021 was 83.8% compared with 66.0% in the same period of 2020. The change was primarily due to an increase in the amount of car trading transactions. For automotive financing facilitation and after-market services facilitation,cost of revenue as a percentage of relevant revenues was around 54.1% in the fourth quarter of 2021.

Sales and marketing expenses in the fourth quarter of 2021 were RMB73.8 million (US$11.6 million) compared with RMB65.8 million in the same period of 2020. As a percentage of total revenues,sales and marketing expenses in the fourth quarter of 2021 was 7.0% compared with 6.0% in the same period of 2020.

General and administrative expenses in the fourth quarter of 2021 were RMB86.1 million (US$13.5 million) compared with RMB90.1 million in the same period of 2020. As a percentage of total revenues,general and administrative expenses in the fourth quarter of 2021 remained flat at 8.2% compared with the same period of 2020.

Research and development expenses in the fourth quarter of 2021 were RMB23.6 million (US$3.7 million) compared with RMB23.0 million in the same period of 2020. As a percentage of total revenues,research and development expenses in the fourth quarter of 2021 was 2.2% compared with 2.1% in the same period of 2020.

Net loss on risk assurance liabilities in the fourth quarter of 2021 was RMB84.6 million (US$13.3 million) compared to a net gain of RMB18.8 million in the same period of 2020. Net loss on risk assurance liabilities was mainly due to a sequential increase in default rate over 2021.

LOSS FROM OPERATIONS

Loss from operations in the fourth quarter of 2021 was RMB157.0 million (US$24.6 million),compared to an income of RMB198.4 million in the same period of 2020. This decrease was mainly due to loss on risk assurance liabilities and provision for credit losses,as well asthe decrease in gross profit margins of automotive financing facilitation and after-market services facilitation businesses.

FAIR VALUE CHANGE OF EQUITY INVESTMENT

Fair value change of equity investment in the fourth quarter of 2021 was a gain of RMB254.1 million (US$39.9 million) compared to a gain of RMB1,487.8 million in the same period of 2020. The gain in the fourth quarter of 2021 was mainly due to the investment in Li Auto. Cango has sold out all of its equity interest in Li Auto.

NET INCOME AND NON-GAAP ADJUSTED NET INCOME

Primarily due to the fair value change of the Company's investment in Li Auto,net income in the fourth quarter of 2021 was RMB124.1 million (US$19.5 million). Non-GAAP adjusted net income in the fourth quarter of 2021 was RMB147.3 million (US$23.1 million). 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 AND NON-GAAP ADJUSTED NET INCOME PER ADS

Basic and diluted net income per American Depositary Share (ADS) in the fourth quarter of 2021 were RMB0.88 (US$0.14) and RMB0.87 (US$0.14),respectively. Non-GAAP adjusted basic and diluted net income per ADS in the fourth quarter of 2021 were RMB1.04 (US$0.16) and RMB1.04 (US$0.16),respectively. Each ADS represents two Class A ordinary shares of the Company.

BALANCE SHEET

As of December 31,the Company had cash and cash equivalents of RMB1,434.8 million (US$225.2 million),compared with RMB906.4million as of September 30,2021.

As of December 31,the Company had short-term investments of RMB2,598.9 million (US$407.8 million),compared with RMB3,588.2 million as of September 30,2021.

Full Year 2021 Financial Results

REVENUES

Total revenues in the full year of 2021 increased by 91.1% to RMB3,921.7 million (US$615.4 million) from RMB2,052.4 million in the full year of 2020. Revenues from car trading transactionsin the full year of 2021 were RMB2,227.2 million (US$349.5 million). Revenues from automotive financing facilitation and after-market services facilitation in the full year of 2021 were RMB1,233.6 million (US$193.6 million) and RMB193.8 million (US$30.4 million),respectively.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the full year of 2021 were RMB3,945.0 million (US$619.1 million) compared with RMB1,734.1 million in the full year of 2020. This was mainly due to the related costs incurred by car trading transactionsbusiness. Primarily as a result of the increase in revenues from car trading transactions,sales and marketing expenses,general and administrative expenses and research and development expenses each decreased as a percentage of total revenues in the full year of 2021,compared with the full year of 2020.

Cost of revenue in the full year of 2021 increased to RMB2,958.0 million (US$464.2 million) from RMB1,098.1 million in the full year of 2020. As a percentage of total revenues,cost of revenue in the full year of 2021 was 75.4% compared with 53.5% in the full year of 2020. The change was primarily due to an increase in the amount of car trading transactions. For automotive financing facilitation and after-market services facilitation,cost of revenue as a percentage of relevant revenues was around 44.0% in the full year of 2021.

Sales and marketing expenses in the full year of 2021 were RMB239.3 million (US$37.6 million) compared with RMB195.9 million in the full year of 2020. As a percentage of total revenues,sales and marketing expenses in the full year of 2021 was 6.1% compared with 9.5% in the full year of 2020.

General and administrative expenses in the full year of 2021 were RMB276.2 million (US$43.3 million) compared with RMB265.7 million in the full year of 2020. As a percentage of total revenues,general and administrative expenses in the full year of 2021 was 7.0% compared with 12.9% in the full year of 2020.

Research and development expenses in the full year of 2021 were RMB70.3 million (US$11.0 million) compared with RMB62.6 million in the full year of 2020. As a percentage of total revenues,research and development expenses in the full year of 2021 was 1.8% compared with 3.0% in the full year of 2020.

Net loss on risk assurance liabilities in the full year of 2021 was RMB197.8 million (US$31.0 million) compared to a net loss of RMB2.3 million in the same period of 2020. The change was mainly due to a sequential increase in default rate over 2021.

LOSS FROM OPERATIONS

Loss from operations in the full year of 2021 was RMB23.2 million (US$3.6 million),compared to an income of RMB318.3 million in the full year of 2020. This decrease was mainly due to loss on risk assurance liabilities and provision for credit losses,as well asthe decrease in gross profit margins of automotive financing facilitation and after-market services facilitation businesses.

FAIR VALUE CHANGE OF EQUITY INVESTMENT

Fair value change of equity investment in the full year of 2021 was a loss of RMB37.0 million (US$5.8 million) compared with a gain of RMB3,315.5 million in the full year of 2020. The loss in the year of 2021 was mainly due to the investment in Li Auto.

NET LOSS

Net loss in the full year of 2021 was RMB8.5 million (US$1.3 million),compared with a net income of RMB3,373.4 million in the full year of 2020.

NON-GAAP ADJUSTED NET INCOME

Non-GAAP adjusted net income in the full year of 2021 was RMB79.1 million (US$12.4 million),452.2 million in the full year of 2020. Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information,see "Use of Non-GAAP Financial Measure."

NET LOSS PER ADS

Basic and diluted net loss per ADS in the full year of 2021 were RMB0.06 (US$0.01) and RMB0.06 (US$0.01),respectively.

NON-GAAP ADJUSTED NET INCOME PER ADS

Non-GAAP adjusted basic and diluted net income per ADS in the full year of 2021 were RMB0.55 (US$0.09) and RMB0.54 (US$0.08),respectively. Each ADS represents two Class A ordinary shares of the Company.

Business Outlook

For the first quarter of 2022,the Company expects total revenues to be between RMB700 million and RMB750 million. This forecast reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change.

Share Repurchase Program

Pursuant to the share repurchase program announced on August 19,the Company had repurchased 5,103,721 ADSs with cash in the aggregate amount of approximately US$20.1 million up to December 31,2021.

Conference Call Information

The Company's management will hold a conference call on Thursday,March 10,2022,at 8:00 P.M. Eastern Time or Friday,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 17,by dialing the following numbers:

International:

+1-412-317-0088

United States Toll Free:

+1-877-344-7529

Access Code:

9317290

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,car trading transactions,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 RMB6.3726 to US$1.00,the noon buying rate in effect on December 30,in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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

Yihe Liu

Cango Inc.

Tel: +86 21 3183 5088 ext.5581

Email: ir@cangoonline.com

Twitter: https://twitter.com/Cango_Group

Emilie Wu

The Piacente Group,Inc.

Tel: +86 21 6039 8363

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,

2020

As of December 31,

2021

RMB

RMB

US$

ASSETS:

Current assets:

Cash and cash equivalents

1,426,899,576

1,434,806,922

225,152,516

Restricted cash - current

9,693,008

61,293,114

9,618,227

Short-term investments

4,342,356,612

2,598,935,704

407,829,725

Accounts receivable,net

141,594,170

223,544,396

35,078,994

Finance lease receivables - current,net

2,035,397,525

1,414,164,625

221,913,289

Short-term consumer financing receivables,net

23,168

-

-

Financing receivables,net

20,105,893

62,296,261

9,775,643

Short-term contract asset

364,635

829,940,692

130,235,805

Prepayments and other current assets

558,360,959

982,948,637

154,246,091

Total current assets

8,049,546

7,607,930,351

1,193,850,290

Non-current assets:

Restricted cash - non-current

878,299,140

1,114,180,729

174,839,270

Goodwill

145,063,857

148,657,971

23,327,680

Property and equipment,net

10,311,971

19,545,933

3,067,183

Intangible assets

44,887,871

45,931,544

7,207,662

Long-term contract asset

281,374,110

495,456,805

77,747,984

Deferred tax assets

170,951,082

474,570,361

74,470,446

Finance lease receivables - non-current,net

1,454,499,864

1,029,262,174

161,513,695

Other non-current assets

261,495,158

11,568,164

1,815,297

Total non-current assets

3,883,053

3,339,173,681

523,989,217

TOTAL ASSETS

12,145,932,599

10,947,104,032

1,717,507

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debts

355,816,940

579,776,131

90,979,527

Long-term debts—current

1,228,783,730

938,014,362

147,194,922

Accrued expenses and other current liabilities

324,734,202

719,380

112,832,343

Risk assurance liabilities

460,299

699,022,914

109,691,949

Income tax payable

87,132,455

481,854,102

75,613,423

Total current liabilities

2,457,626

3,417,702,889

536,312,164

Non-current liabilities:

Long-term debts

977,791,191

486,371,672

76,322,329

Deferred tax liability

330,765,029

51,471,040

8,076,929

Other non-current liabilities

4,870,616

991,610

155,605

Total non-current liabilities

1,313,836

538,834,322

84,554,863

Total liabilities

3,770,723,462

3,956,537,211

620,867,027

Shareholders' equity

Ordinary shares

204,260

204,260

32,053

Treasury shares

(56,419,225)

(485,263,213)

(76,148,387)

Additional paid-in capital

4,591,455,557

4,671,769,821

733,102,630

Accumulated other comprehensive income

(115,386,427)

(187,517,110)

(29,425,526)

Retained earnings

3,955,354,972

2,991,373,063

469,411,710

Total Cango Inc.'s equity

8,375,209,137

6,990,566,821

1,096,972,480

Non-controlling interests

-

-

-

Total shareholders' equity

8,480

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

12,507

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 31,2020

December 31,2021

December 31,2021

RMB

RMB

US$

RMB

RMB

US$

Revenues

1,097,429,135

1,050,548,618

164,003

2,052,431,752

3,921,716,406

615,402,882

Loan facilitation income and other related income

398,055,300

252,002,800

39,738

891,836,601

1,233,556,212

193,571,888

Leasing income

79,117,567

52,680,663

8,266,746

286,079,245

251,295,105

39,433,686

After-market services income

70,763,076

36,733,261

5,764,250

241,243

193,786,856

30,409,386

Automobile trading income

546,810,484

703,861,083

110,451,163

624,773,721

2,227,171,554

349,491,817

Others

2,682,708

5,270,811

827,106

8,942

15,906,679

2,496,105

Operating cost and expenses:

Cost of revenue

723,701

880,667,760

138,195,989

1,098,120,749

2,958,009,872

464,176,297

Sales and marketing

65,828,565

73,746

11,582,517

195,893,662

239,333,085

37,584

General and administrative

90,084,628

86,092,093

13,509,728

265,411

276,179,441

43,338,581

Research and development

22,986,127

23,621,268

3,706,692

62,596,195

70,278,081

11,028,164

Net loss on risk assurance liabilities

(18,804,024)

84,603,086

13,276,070

2,268,180

197,750,449

31,031,361

Provision for credit losses

15,030

58,728

9,222,880

109,564,631

203,415,094

31,920,267

Total operation cost and expense

898,993,027

1,681

189,493,876

1,134,828

3,944,966,022

619,051,254

Income from operations

198,436,108

(157,020,063)

(24,639,873)

318,924

(23,249,616)

(3,648,372)

Interest and investment Income,net

12,123,098

13,411

2,273

72,814

50,370,800

7,904,278

Fair value change of equity investment

1,487,757,246

254,060,032

39,563

3,315,475,734

(36,988,851)

(5,358)

Interest expense

(508,084)

(5,347,490)

(839,138)

(2,758,629)

(14,481,195)

(2,272,415)

Foreign exchange (loss) gain,net

(3,646,480)

2,138,005

335,500

(8,848,354)

1,351,400

212,064

Other income,net

15,721

5,269,444

826,891

49,139,337

41,911,589

6,576,843

Other expenses

(240,239)

(18,106)

(2,841)

(838,115)

(6,605,833)

(1,036,599)

Net income before income taxes

1,709,255,370

112,230,233

17,611,375

3,743,273,711

12,308,294

1,441

Income tax expenses

(140,762,635)

11,896,807

1,866,869

(369,853,650)

(20,852,646)

(3,235)

Net income (loss)

1,492,735

124,127,040

19,478,244

3,420,061

(8,352)

(1,340,794)

Less: Net income attributable to non-controlling interests

-

-

-

3,902,214

-

-

Net income (loss) attributable to Cango Inc.'s shareholders

1,369,847

(8,794)

Earnings per ADS attributable to ordinary shareholders:

Basic

10.48

0.88

0.14

22.43

(0.06)

(0.01)

Diluted

10.40

0.87

0.14

22.17

(0.06)

(0.01)

Weighted average ADS used to compute earnings per ADS

attributable to ordinary shareholders:

Basic

149,696,285

141,358,210

141,210

150,242,378

144,946,453

144,453

Diluted

150,822,105

142,618

142,618

151,546

144,453

Other comprehensive (loss) income,net of tax

Foreign currency translation adjustment

(152,428)

(34,302,349)

(5,382,787)

(234,817,165)

(72,130,683)

(11,318,878)

Total comprehensive income (loss)

1,745,307

89,824,691

14,095,457

3,602,896

(80,675,035)

(12,659,672)

Total comprehensive income (loss) attributable to Cango Inc.'s

shareholders

1,700,682

(80,672)

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

Decemer 31,2020

Decemer 31,2021

Decemer 31,2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

RMB

RMB

US$

RMB

RMB

US$

Net income (loss)

1,794)

Add: Share-based compensation expenses

19,486,068

23,190,482

3,093

78,754,828

87,634,835

13,751,818

Cost of revenue

645,296

1,959,861

307,545

3,075,317

4,927,484

773,230

Sales and marketing

3,379,241

3,740,843

587,020

16,003,486

15,101

2,646

General and administrative

14,458,117

16,147,170

2,533,844

55,590,630

63,444

9,891,636

Research and development

1,414

1,608

210,684

4,085,395

4,806

684,306

Non-GAAP adjusted net income

1,587,978,803

147,317,522

23,337

3,452,174,889

79,090,483

12,024

Less: Net income attributable to non-controlling interests

-

-

-

3,214

-

-

Net income attributable to Cango Inc.'s shareholders

1,448,675

79,024

Non-GAAP adjusted net income per ADS-basic

10.61

1.04

0.16

22.95

0.55

0.09

Non-GAAP adjusted net income per ADS-diluted

10.53

1.04

0.16

22.69

0.54

0.08

Weighted average ADS outstanding—basic

149,285

141,210

141,210

150,378

144,453

144,453

Weighted average ADS outstanding—diluted

150,105

142,618

142,618

151,546

146,997

146,997

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