Q2 2024 Cango Inc Earnings Call
Speaker Change: I'm going to make a video of you guys in the future.
Operator: Good morning and good evening, everyone.
Operator: Welcome to Cango Inc's 2nd quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website.
Speaker Change: Good morning and good evening everyone.
Congo Inks: Welcome to Congo Inks
Speaker Change: Second Quarter, 2024, earnings conference call, at this time all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website.
Operator: Joining us today are Mr. Jiayuan Lin, Chief Executive Officer, and Mr. Yang Yi Zhang, Chief Financial Officer of the Company. Following management's prepared remarks, we will conduct the Q&A session.
Speaker Change: Joining us today are Mr. Jia Yin Lin, Chief Executive Officer and Mr. Yang Yi Zhang, Chief Financial Officer of the Company.
Speaker Change: Following Management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the Safe Harbor Statements in the company's earnings release, which also applies to the conference call today as Management will make forward looking statements.
Operator: Before we begin, I refer you to the safe harbor statements in the company's earnings release, which also applies to the conference call today, as management will make forward-looking statements.
Jiayuan Lin: With that said, I am now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir. In the second quarter of 2024, the automotive market remains lockish, presenting significant challenges for the industry.
Speaker Change: with that said, I am now turning the call over to Mr. Ye Yin Lin, CEO of Congo. Please go ahead, sir.
Speaker Change: Hello, everyone. Welcome to Kango San Kuo, the Qing Qing Puo Erlin Puo.
Speaker Change: in Guangdong, China, China is a small field. We have built a lot of fields.
Speaker Change: Data from the China Association of Automobile Manufacturers shows that in June , automobile production and sales reached 2.507 million and 2.552 million units respectively, representing a decrease of 2.1% and 2.7% compared to the same period last year.
Jiayuan Lin: [inaudible] Jiayuan Lin
Jiayuan Lin: In a second quarter of 2017-04, the automotive market remains lavish, presenting significant challenges for industry. According to the China Association of Automobile Manufacturers, vehicle production and sales in June reached 2.50 million and 2.55 to minimum units respectively, reflecting a year and a decline of 2.1% and 2.7% respectively.
Jiayuan Lin: According to the China-China-China-China-China-China-China-China-China-China-China-China-China, the world has not been sufficient to water the industry's global downward trajectory. At the same time, we have not been able to prepare for the global market. Our credit risk exposure has been decreased to a low level with only 2.7 billion R&B of outstanding balance of loans where the company's best credit risk has not been provided with full debt allowance, full debt allowance, or full risk insurance liabilities.
Jiayuan Lin: [inaudible]
Speaker Change: The most important thing is, we continue to see the entire city and the scenery and the scenery, the scenery, and the scenery, and the scenery.
Speaker Change: Tonguo, Feyong Kong, Zhe and Jiang Benzhen Xia, Cai Hu, Qiang Hua, Cai Wu, Wen Jianxin.
Speaker Change: [inaudible]
Speaker Change: 26% is currently in the U.S. M1, M1, M9, M3, M1, M5, M5, we don't have any plans to do so. We will be able to make a decision on the future.
Speaker Change: We respond to these challenges. We continue to implement strict post control and rigorous management strategies.
Speaker Change: Green Foursing Our Financial Stabilities Through Disciplined Expense Management and Conceal Agency Nashes. Meanwhile, we will maintain meticulous oversight for current assets and myabilities, closely monitoring our risk exposure.
Speaker Change: As of June of 30, our total outstanding non-bannon stood at approximately 6.2 billion RMB with M1 Plus at 2.93% and M3 Plus at 1.57%.
Speaker Change: Our credit rate exposure has been decreased to a known amount, with only 2.7 billion R&B of outstanding balance of loans, where the company bears credit rates have not been provided with full debt allowance, full debt debt allowance, or full risk assurance liability.
Speaker Change: In the new era, the real leader of Zhenhu Huandang, we are going to visit the former President of the A.S. Department of Defense, the Department of Defense, and the Department of Defense.
Speaker Change: [inaudible]
Jiayuan Lin: Our credit risk exposure has been decreased to a low level with only 2.7 billion R&B of outstanding balance of loans, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities, full risk insurance liabilities 266 cars, 66 cars, 66 cars, 66 cars, 66 cars, 66 cars, 66 cars, 66 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 26 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 26 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 26 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars, 266 cars In addition to this, we have been working closely with the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the 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Operator: Good morning and good evening everyone. Welcome to Cango Inc's 2nd quarter 2024 earnings conference call. At this time, all participants are in a listen only mode. This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer, and Mr. Yang Yi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session.
Speaker Change: [inaudible]
Speaker Change: I have the New Yorker Market's world's race list. We are increasingly recognized and they use car markets in many potential opportunities. As such, we have set a string line. Our business process is enhanced service quality and stringent to custom- make
Operator: Before we begin, I refer you to the safe harbor statements in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements.
Speaker Change: Over the past quarter, we focused on enhancing the competitiveness of Kengo Yuka by ensuring a consistent supply of high-quality vehicles optimizing due experience.
Jiayuan Lin: With that said, I am now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead sir. In the second quarter of 2024, the automotive market remains lockish, presenting significant challenges for the industry.
Speaker Change: I mean, optimizing dealership is experience and supply chain management and improving the convenience and security of course regional delivery deliveries, which drove steady business growth. By the end of the seven quarter, our Kango Yuka app has accumulated over 130,000 page views.
Speaker Change: In the course of, we facilitated the transaction of 266 vehicles and successfully auctioned to 124 vehicles across our platform.
Speaker Change: Li Zhitong, we are also taking care of the health and health of the two brothers and sisters of the two brothers and sisters.
Speaker Change: [inaudible]
Lin: Lin, while we identified him onboard its new partners with a strong reputation and abundance vehicle inventories to ensure a diverse range of listings on KangleU.com.
Jiayuan Lin: According to the China-China-China-China-China-China-China-China-China-China-China-China-China, the world has not been sufficient to water the industry's global downward trajectory. [inaudible] Our credit risk exposure has been decreased to a low level with only 2.7 billion RMB of outstanding balance of loans where the company's best credit risk has not been provided with full debt allowance, full debt allowance, or full risk insurance liabilities.
Speaker Change: In Hong's operational efficiency, we implemented rigorous management practices, refined key projects such as vehicle listing, transaction solicitation and customer service. These efforts have increased resource utilization efficiency and improved overall operational effectiveness.
Speaker Change: [inaudible]
Mujian: Mujian, APP-B, Jia Chaoyuan,超过26万台,通过整合现下风服的车源支援,有效体制,我们6车 APP,现场活躍度.
Mujian: We also established strategic partnerships with numerous major use-car markets nationwide in a second quarter, enabling real-time synchronization of their vehicle listings with Kengo Yoka to better meet users of the civic demands.
Mujian: Karan's Day, Kengo Yuka, hopes over 260,000 vehicle listings. By integrating extensive offline vehicle inventory, we have effectively enhanced user engagement from the Kengo Yuka Act.
Mujian: [inaudible]
Speaker Change: Qi Sheng Yongguo,活躍度和中層度,同時我們制定了一系列經濟化的運作流程和管理規則,以保護滿家賣家車商的權益
Speaker Change: Huo Huo, Ji Ding, Mingchue, Jiao Yigui, Zhe, Fengxian, Yifang, Ji Zhi,提供全面的培育和支持黨,確實協讀麥加,搖上提高運營效率.
Speaker Change: We have further enriched our U.S. clearance by establishing exclusive member communities through private traffic management, regularly providing members with benefits and event updates to boost user engagement and loyalty.
Speaker Change: We have also established a set of refined operational processes and management guidelines focused on safeguarding cellar deduous rights.
Speaker Change: Lin's includes implementing streamlined transaction rules and risk prevention mechanisms, as well as providing comprehensive training and support, all of which are designed to help sell the dealers improve their operational efficiency.
Jiayuan Lin: [inaudible][inaudible] and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs and the Ministry of Foreign Affairs Under our World Traffic First Strategy, Cango has been focusing on establishing a primary traffic gateway connecting China's use card dealers with overseas buyers. We believe that this streamlined asset light and traffic focused operational approach will enable us to control operating costs while creating sustained value across our core business lines. Our website allows overseas buyers to more conveniently and directly access China's high-quality use card inventories, and we aim to position this website as the premier gateway for exporting Chinese use cards.
Speaker Change: Okay.
Speaker Change: Next, I want to share with you two more questions.
Speaker Change: In 19th century, the Chinese military and the Chinese military came out of the city of Chu口, and the city of Chu口 is the same. Chu口 is the only one who has been involved in the military. It is a great honor to be here.
Speaker Change: Jiayuan Lin, Jiayuan Lin, Jiayuan Lin, Jiayuan Lin
Speaker Change: Next, I would like to highlight some key advancements that can go has been made in the area of cross-border use-card transactions.
Speaker Change: [inaudible]
Speaker Change: Supportive, guidelines and favorable policies from governing government departments and authorities have forced the growth of the use-carb export sector. We are optimistic about the Parma same prospects in the Apple market for use of vehicles, particularly in the Engi V segment.
Speaker Change: In 2014, we came to our 20th anniversary of the year, AutoChandle, which has been held for a long time. In the past, we had a hard time working out for 18,000 people.
Speaker Change: Zhu Chen Yonghu, Mu Qianyi, Cao Guo Liangwan.
Speaker Change: [inaudible]
Speaker Change: Lin is launched in March 2024, our international use car platform, AutoKango.com has quickly gained traction among global audiences. Today, it has attracted over 180,000 visits with more than 20,000 registered users across 207 countries and regions worldwide.
Speaker Change: or to kango.com hosts over 85,000 high-quality use car SKUs offer in more than 60,000 different models. In the second quarter, we significantly expanded AutoKango.com's market coverage as well as its range of product and services offerings.
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Speaker Change: Under all of Trumpet's first strategy, Kengo has been focusing on establishing a primary traffic gateway connecting China's use-car dealers with overseas buyers.
Jiayuan Lin: We believe that this streamlined asset light and traffic focused operational approach will enable us to control operating costs while creating sustained value across our core business lines. Our website allows overseas buyers to more conveniently and directly access China's high-quality use card inventories, and we aim to position this website as the premier gateway for exporting Chinese use cards.
Speaker Change: We believe that this string line has our light and traffic focus to operational approach will enable us to control operating costs.
Speaker Change: [inaudible]
Speaker Change: In the future, China will continue to be a part of the Chinese and Chinese Communist Party, and the government will continue to work with the government.
Zhang Yongyi: Next time, we'll be talking about our S.L.O.B. Zhang Yongyi, a good friend of mine, and we're in a bunch of different parts of the world.
Michael Zhang: 3rd of refining auto-camels, functionality, and services, the better serve car users, both at home and abroad. Next, I will turn the code over to our Chief Financial Officer Michael Zhang for a review of the company's financial performance.
Operator: Thank you, Jiayuan.
Yang Yi Zhang: Hello, everyone. Welcome to our second quarter of 2024 earnings home. Before I started to review our financials, please note that, unless otherwise stated, all number of the IME terms and all percentage comparisons are year-over-year basis. Total revenue in the second quarter of 2024 will 45.1 million compared with 675.4 million in the same period of 2023. Guaranteed income, which represented the fee income earned on a non-contingent aspect of a guarantee, was 20.9 million in the second quarter of 2024. This will present a separator from the contingent aspect of a guarantee issued to the adoption of AFC-3266 January 1st, 2023.
Michael Zhang: Hello everyone and welcome to our second order of 2024 earnings call. Before I started to review all financials, please feel that on the last otherwise stated all number of the IMB terms and all percentage comparisons are year over year basis.
Michael Zhang: 2.224, 24.1 million, compared with 675.4 million in the same period of 2023.
Michael Zhang: [inaudible]
Yang Yi Zhang: Now, let's move on to our cost and expenses during the quarter. Cost of revenue in the second quarter decreased to 26.5 million from 615.8 million in the same period of 2023. As a percentage of total revenues, cost of revenue in the second quarter of 2024 was 58.8% compared with 91.2% in the same period of 2023. Sales at a marketing expansion in the second quarter decreased to 4 million from 12.2 million in the same period of 2023. General and administrative expenses in the second quarter were 39.2 million, compared with 36.8 million in the same period of 2023.
Michael Zhang: 3-6, January 1, 2023.
Michael Zhang: Now let's move on to our cost and expenses during quarter. Cost of revenue in the second quarter decreased to...
Michael Zhang: 26.5 million from 615.8 million in the same period 223.
Michael Zhang: and the percentage of total revenues.
Michael Zhang: Class of Revenue in the second quarter of 2024 was 58% compared with 91.2% in the same period of 223.
Michael Zhang: Sales at a marketing expansion in second quarter decreased to 4 million from 12.2 million in the same period 2020. General and administrative expenses in the second quarter were 39.2 million compared with 36.8 million in the same period 2020.
Yang Yi Zhang: Research and development spaces in the second quarter of 2024 decreased to 1.7 million from 7.7 million in the same period of 2023. That gain on contingent risk assurance liability in the second quarter was 10.3 million, compared with a net loss of 1.6 million in the same period of 2023. Net recovery on provision for credit losses in the second quarter was 33 million compared with a net loss of 10.2 million in the same period of 2023. We reported 47 million in income from operations in the second quarter of 2024 compared with a loss of 8.9 million in the same period of 2023.
Michael Zhang: Research and Development Sciences in a second quarter of 2024 decreased to 1.7 million from 7.7 million in the same period of 2023.
Michael Zhang: That being on contingent risk assurance liability in the second quarter was 10.3 million. Compare with that loss of 1.6 million in the same period in 2023.
Michael Zhang: Net recovery on provision for credit losses in a second quarter was 33 million compared with a net loss of 10.2 million in the same period 223.
Michael Zhang: We reported 47 million in income from operations in a second quarter, 2024 compared with a loss of 8.9 million in the same period, 2023.
Yang Yi Zhang: Net income in the second quarter of 2024 was 86 million. Net gas adjusted net income in the second quarter of 2024 was 90.7 million. is. Basic and diluted in that income per ADS in the second quarter of 2024 were 0.83 and 0.76, respectively, and none that adjusted basic and diluted in that income per ADS in the same period were 0.87 and 0.8, respectively.
Michael Zhang: Incoming, the second quarter of 2024 was 86 million. Now that adjusted that income in the second quarter of 2024 was 90.7 million on a per share basis.
Michael Zhang: In the second quarter of 2024, we're 0.83 and 0.76 respectively, and now that I've just said basically in the end, we're in the same period.
Michael Zhang: We're 0.87 and a 0.8th respect.
Yang Yi Zhang: Moving on to our balance sheet, as of June 30, 2024, the company had cash and cash equivalence of $6,949.5 million compared with 1.2 billion as of March 31, 2024. As of June 30, 2024, the company had short term investment of 2.7 billion compared with 2.3 billion as of March 31, 2024.
Wang: Wang, moving on to our balance sheet. As of June 30, 2024, the company had cash and cash equivalent of 6,949.5 million compared with a 1.2 billion, as of March 31, 2024.
Wang: As of June 30, 2024, the company had shot an investment of 2.7 billion compared with 2.3 billion as of March 31, 2024.
Yang Yi Zhang: Looking ahead to the third quarter of 2024, we are now predicting our total revenue to be between 20 million and 25 million. Please note that this forecast reflects our current preliminary views on the market and operational conditions, which are subject to change.
Wang: I'm looking ahead to the third quarter of 2024. We are now predicting our total revenue to be between.
Wang: 20 million and 25 million. Please know that these four cast reflects our current perlimal views on the market and operational conditions which are subject to change.
Yang Yi Zhang: This concludes our prepared remarks.
Operator: Our readers, we are now ready to take questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.
Speaker Change: This concludes our prepared remarks of readers we are now ready to take questions.
Speaker Change: We will now begin the question and answer session. Do ask a question, you may press star than one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the
Speaker Change: If at any time your question has been addressed and you would like to withdraw your question, please press star then too.
Operator: At this time, we will pause momentarily to assemble our roster.
Speaker Change: at this time we will pause momentarily to assemble our roster.
Wei Long-Gi-Yong: The first question comes from Wei Long-Gi-Yong with Civic Securities. Please go ahead. Thank you, Wei Long-Gi-Yong from Civic Securities. I have two questions on use-car market development. My first question is how your strategic partnership with major use-car markets can improve your market position and what about the contribution by these partnerships to your financial performance?
Speaker Change: The first question comes from Wei Lung Jiang with Fidik Securities. Please go ahead.
Yongyi Zhang: Thank you, Jiayuan.
Yongyi Zhang: Hello, everyone. Welcome to our second quarter of 2024 earnings home.
Yongyi Zhang: Before I started to review our financials, please note that, unless otherwise stated, all number of the IME terms and all percentage comparisons are year-over-year basis, total revenue in the second quarter of 2024 will 45.1 million compared with 675.4 million in the same period of 2023. Guaranteed income, which represented the fee income earned on a non-contidient aspect of a guarantee, was 20.9 million in the second quarter of 2024. This will present a separator from the contingent aspect of a guarantee issued to the adoption of AFC-3266 January 1st, 2023.
Speaker Change: Hello, I'm Jiayuan Lin, Jiayuan Lin, Jiayuan Lin, Jiayuan Lin.
Speaker Change: Hi!
Liang Ge: Hello, my name is Liang Ge, and I'm going to share with you two questions. First of all, please ask us a question. What's the difference between the two of us? What's the difference between the two of us? What's the difference between the two of us? Can you share with us the differences between the two of us? Thank you.
Speaker Change: Hello, I'm Zhang Wei Dong from City Security. I have two questions. I'll use the market development. So my first question is how do you strategic partnership with major use-call markets help improve your market position and what about the contribution by leading partnerships to your financial performance?
Yongyi Zhang: Now, let's move on to our cost and expenses during quarter. Cost of revenue in the second quarter decreased to 26.5 million from 615.8 million in the same period of 2023. As a percentage of total revenues, cost of revenue in the second quarter of 2024 was 58.8% compared with 91.2% in the same period of 2023. Sales at a marketing expansion in the second quarter decreased to 4 million from 12.2 million in the same period of 2023.
Speaker Change: Thank you.
Speaker Change: [inaudible]
Yongyi Zhang: General and administrative expenses in the second quarter were 39.2 million compared with 36.8 million in the same period of 2023. Research and development spaces in the second quarter of 2024 decreased to 1.7 million from 7.7 million in the same period of 2023. That gain on contingent risk assurance liability in the second quarter was 10.3 million compared with a net loss of 1.6 million in the same period of 2023. Net recovery on provision for credit losses in the second quarter was 33 million compared with a net loss of 10.2 million in the same period of 2023.
Jiayuan Lin: Thank you for your question. By collaborating with major use-car markets, we have expanded our supply channels and diversified our vehicle offerings. In addition, these partnerships allow us to leverage their geographic coverage and market penetration, providing our customers with a broader range of choices.
Speaker Change: Thank you for your questions, so by collaborating with major use car markets.
Speaker Change: We have expanded our supply channels and diversity by our vehicle offerings.
Speaker Change: In addition, these partnerships allow us to leverage their geographic coverage and market penetration providing our customers with a broader range of choices.
Jiayuan Lin: Our extensive offerings, comprehensively, address our clients' evolving needs, increasing their stickiness on our platform. And as our vehicle inventory grows and market coverage expands, our transaction volume has naturally increased. This higher volume not only creates economies of scale, reducing unique costs, but also strengthen our bargaining power. This enhanced position has enabled us to negotiate more favorable terms with suppliers and customers alike for improving our profit margins.
Speaker Change: So, our extensive offerings comprehensively address our clients, evolving needs, increasing their stickiness on our platform.
Speaker Change: Moreover, with the increase in the number of vehicles and the expansion of market coverage, our transaction volume has naturally grown. The larger transaction volume not only brings us economies of scale, reducing unit costs, but also strengthens our bargaining power. This gives us an advantage in price negotiations with suppliers and customers, allowing us to secure more favorable terms and further increase our profit margins.
Yongyi Zhang: We reported 47 million in income from operations in the second quarter of 2024 compared with a loss of 8.9 million in the same period of 2023. Net income in the second quarter of 2024 was 86 million. Net gas adjusted net income in the second quarter of 2024 was 90.7 million, is. Basic and diluted in that income per ADS in the second quarter of 2024 were 0.83 and 0.76 respectively, and none that adjusted basic and diluted in that income per ADS in the same period were 0.87 and 0.8 respectively.
Speaker Change: This higher volume not only creates economies of scale reducing the only costs, but also strengths in our bargaining power. This enhanced position has enabled us to negotiate more favorable terms with suppliers and customers alike for improving our problem margins.
Speaker Change: I thank you for your first question. Thank you very much. That's all for your first question.
Yongyi Zhang: Moving on to our balance sheet, as of June 30, 2024, the company had cash and cash equivalence of $6,949.5 million compared with 1.2 billion as of March 31, 2024. As of June 30, 2024, the company had short term investment of 2.7 billion compared with 2.3 billion as of March 31, 2024.
Speaker Change: [inaudible]
Jiayuan Lin: The Chinese government has actually published a lot of favorable policies to support the development of the use-call markets.
Speaker Change: Thank you, and my second question is that the Chinese government has actually published a lot of favorable policies to support the developments of used-call market, and so what about the challenges that your company faces in promoting the used-car cross-border transactions?
Jiayuan Lin: So what about the challenges that your company faces in promoting the use-call cross-border transactions? So for the challenges, first of all, cross-border transactions usually come with relatively high logistics costs, including expenses for transportation, insurance, and also for warehousing. And to better control these costs, we have partnered with so-called party companies who have established and well-established cross-border logistics capabilities. And secondly, terrorist policies and trade barriers in different countries greatly impact the import and export of use-call vehicles, I mean used vehicles. On this, we will continue to monitor policy changes and develop flexible strategies to adapt to these changes.
Yongyi Zhang: Looking ahead to the third quarter of 2024, we are now predicting our total revenue to be between 20 million and 25 million. Please note that this forecast reflects our current preliminary views on the market and operational conditions, which are subject to change.
Speaker Change: [inaudible] Welcome to the first round of questions.
Operator: This concludes our prepared remarks. Our readers, we are now ready to take questions. We will now begin the question and answer session. To ask a question, you may press star than one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star than two.
Speaker Change: Thank you for your questions, so for the challenges, first of all, the cross border transactions come usually come with relatively high logisties costs.
Speaker Change: and including expenses for transportation, for insurance and also for warehousing. To better control these costs, we have partnered with the party companies who have established and well established across the logistics capabilities.
Operator: At this time, we will pause momentarily to assemble our roster.
Speaker Change: [inaudible]
Wei Long-Gi-Yong: The first question comes from Wei Long-Gi-Yong with civic securities. Please go ahead. Thank you, Wei Long-Gi-Yong from civic securities.
Speaker Change: We will continue to change our lives, and we will continue to change our lives, and we will continue to change our lives.
Speaker Change: and second day, Tower of Policies and Trade Barres in different countries, great-day impact, the import and export of use car vehicles, I mean use vehicles.
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Jiayuan Lin: Also, regulations and standards for use vehicles vary across countries, including safety, emissions, and quality requirements. So, to address this, we will ensure that all vehicles traded meet the standards of the target market.
Speaker Change: Also, regulations and standards for use vehicles, various cross-country including safety, emissions and quality requirements. So to address this, we will ensure that all vehicles traded meet the standards of the target markets.
Jiayuan Lin: I have two questions on use-car market development. My first question is how your strategic partnership with major use-car markets can improve your market position and what about the contribution by these partnerships to your financial performance? Thank you for your question. By collaborating with major use-car markets, we have expanded our supply channels and diversified our vehicle offerings. In addition, these partnerships allow us to leverage their geographic coverage and market penetration, providing our customers with a broader range of choices.
Jiayuan Lin: And secondly, in addition to the unique market characteristics of the use-call markets, the use-call markets of the use-call markets are also not limited to the use-call market conditions. In addition, use-call transactions very often involve a relatively long transaction cycle due to their unique market characteristics, including but not limited to the use-call markets. Now, limited to vehicle condition assessments, selection by buyers, multiple rounds of price negotiations, and necessary legal and financial reviews. Buyers typically need more time to looking to the vehicle's maintenance history, performance, and pricing before making a purchasing decision. So naturally, this extended transaction cycle also poses a challenge for cross-border use vehicles transactions.
Speaker Change: Lin Wan, two-year-old Jiayuan is the head of the city. Wang Wang is the head of the city of Hong Kong.
Speaker Change: Including the government of China, the government of the United States, the government of the United States, has already been forced to leave the country. In the United States, the government of the United States, has already made many decisions to make the decision of the United States. It is possible to be happy and happy.
Speaker Change: [inaudible]
Speaker Change: In addition, youth college transactions fear often, in fall of a relatively long transaction cycle, due to their unique market characteristics, including, but not limited to vehicle condition assessments, selection by buyers, multiple rounds of price negotiations, and necessarily go and financial reviews.
Speaker Change: Bios typically need more time to do things to the vehicles, maintenance, history, performance, and pricing before making a purchasing decision. The natural release extended transaction cycle also poses a challenge for cross-border use vehicle transactions.
Jiayuan Lin: Our extensive offerings, comprehensively, address our clients, evolving needs, increasing their stickiness on our platform. And as our vehicle inventory grows and market coverage expands, our transaction volume has naturally increased. This higher volume not only creates economies of scale reducing unique costs, but also strengthen our bargaining power. This enhanced position has enabled us to negotiate more favorable terms with suppliers and customers alike for improving our profit margins.
Jiayuan Lin: Thank you.
Lin: [inaudible] Lin Lin Lin
Jiayuan Lin: Thank you very much.
Jiayuan Lin: Hello, my name is Jiayuan Lin. I am from China. Thank you.
Jiayuan Lin: No more questions from me.
Jiayuan Lin: Thank you very much, no more questions from me.
Emerson Zhu: The next question comes from Emerson Zhu with Goldman Sachs. Please go ahead. I have two questions. The first question is on finance.
Jiayuan Lin: the next question comes from Emerson Zhu with Goldman Sachs. Please go ahead.
Jiayuan Lin: [inaudible]
Jiayuan Lin: Jiayuan Lin, Jiayuan Lin, Jiayuan Lin,
Yang Yi Zhang: So I noticed that the company has a decrease, and the second question is how well the management balance your long-term strategy against your short-term performance pressure?
Emerson Zhu: Thank you. I have two questions. The first question is, own finance. So I noticed that the company has a decrease your revenue guidance, so we all can well continue to do that in the future. And the second question is, how well the management balance your long-term strategy against your short-term performance pressure.
Speaker Change: Thank you for the first question, just a few minutes ago, the company said it was the first time we have been doing this for a long time. We have always been working with the company's support, and the company's support has become the most important part of the industry.
Jiayuan Lin: The Chinese government has actually published a lot of favorable policies to support the development of the use-call markets.
Jiayuan Lin: So what about the challenges that your company faces in promoting the use-call cross-border transactions? So for the challenges, first of all, cross-border transactions usually come with relatively high logistics costs including expenses for transportation, insurance, and also for warehousing. And to better control these costs, we have partnered with so-called party companies who have established and well-established cross-border logistics capabilities.
Yang Yi Zhang: On your first question on guidance of revenue, we are strategically skilled in back our existing business. We have reallocated the company's resources, optimized starving, and we have also implemented effective measures to reduce operational costs in response to market changes and internal demand. Moving forward, we will continue to evaluate business developments from a strategic perspective while leveraging our unique business model to drive ongoing costs. We are confident that these adjustments and refinements will enable us to respond more accurately to market changes and deliver greater value to our shareholders.
Speaker Change: OK, on your first question on guidance of revenue, we are strategic face-guid in back our existing business, we have re-allocated the company's resources, optimizes starving and we have also implemented effective measures to reduce operational costs in response to market changes and internal demands.
Speaker Change: We will continue to focus on the challenge of the government. The government and the Communist Party will continue to support the government. We will continue to support the government.
Tong Guo: Tong Guo, this challenge and culture, is to be more powerful and more powerful in the future.
Speaker Change: Moving forward, we will continue to evaluate business development from a strategic perspective, while leveraging our unique business model to drive ongoing cost reduction and efficiency improvements.
Jiayuan Lin: And secondly, terrorist policies and trade barriers in different countries greatly impact the import and export of use-call vehicles, I mean use vehicles. On this, we will continue to monitor policy changes and develop flexible strategies to adapt to these changes. Also, regulations and standards for use vehicles vary across countries including safety emissions and quality requirements. So to address this, we will ensure that all vehicles traded meet the standards of the target market.
Speaker Change: We are confident that these adjustments and refinements got enabled us to respond more at your age to market changes and deliver greater value to our shareholders.
Guen Ning: Guen Ning, the second question is, from the point of view, we will continue to follow the rules of the rules of the rules.
Guen Ning: [inaudible]
Yang Yi Zhang: On your second question, we have adopted an integrated approach to strategic planning. We have established a comprehensive strategic planning process to ensure alignment between short-term performance goals and our long-term vision. This involves maintaining continuous communication to ensure all stakeholders have a clear understanding of the company's strategy and direction.
Guen Ning: [inaudible]
Jiayuan Lin: And secondly, in addition to the unique market characteristics of the use-call markets, the use-call markets of the use-call markets are also not limited to the use-call market conditions. [inaudible] Now, limited to vehicle condition assessments, selection by buyers, multiple rounds of price negotiations and necessary legal and financial reviews. Buyers typically need more time to looking to the vehicle's maintenance history, performance, and pricing before making a purchasing decision. So naturally, this extended transaction cycle also poses a challenge for cross-border use vehicles transactions.
Lin: Lin involves maintaining continuous communication to ensure all stakeholders have a clear understanding of the company's strategy and direction. In a short term, we will focus on enhancing execution, efficiency, controlling costs, and driving revenue graphs to ensure robust financial performance.
Yang Yi Zhang: In a short-term, we will focus on enhancing execution, efficiency, controlling costs, and driving revenue growth to ensure robust financial performance. Second, May, we have broken down our goals into different phases and also made a flexible adjustment. So we have established a very clear objective on targets for different phases that supports both short and performance and long-term strategic implementation. At the same time, we maintain strategic flexibility, allowing us to adapt our plans in response to market and technological changes and swiftly respond to external environmental shifts.
Speaker Change: Li Yulin and Qiao Zhe, we have made a clear statement about the situation of the city. This is the case for the public. It is also the case for the public.
Speaker Change: [inaudible]
Speaker Change: and second day we have broken down our goals into different faces and also made flexible adjustments.
Lin: [inaudible] Lin, Lin, [inaudible]
Jiayuan Lin: Thank you. Thank you very much.
Speaker Change: and the same time, we maintain strategic flexibility allowing us to adapt our plans in response to market and technological changes and split with, swiftly, result to external environment who shifts.
Wei Long-Gi-Yong: No more questions from me.
Emerson Zhu: The next question comes from Emerson Zhu with Goldman Sachs. Please go ahead.
Operator: That concludes the question-and-answer session. Thank you once again for joining Cango's second quarter 2024 earnings conference call today.
Speaker Change: and that concludes the question and answer session. Thank you once again for joining Kango's second quarter, 2024, earnings conference call today. Have a great day.
Operator: Have a great day.
Speaker Change: Thank you, everyone, we will try our best to help you. Thank you, Ovo, your participation. Thank you.
Jiayuan Lin: I have two questions. The first question is on finance. So I noticed that the company has a decrease and the second question is how well the management balance your long-term strategy against your short-term performance pressure? On your first question on guidance of revenue, we are strategically skilled in back our existing business. We have reallocated the company's resources, optimized starving, and we have also implemented effective measures to reduce operational costs in response to market changes and internal demand.
Jiayuan Lin: Moving forward, we will continue to evaluate business developments from a strategic perspective while leveraging our unique business model to drive ongoing costs. We are confident that these adjustments and refinements will enable us to respond more accurately to market changes and deliver greater value to our shareholders.
Speaker Change: [inaudible] you
Jiayuan Lin: On your second question, we have adopted an integrated approach to strategic planning. We have established a comprehensive strategic planning process to ensure alignment between short-term performance goals and our long-term vision. This involves maintaining continuous communication to ensure all stakeholders have a clear understanding of the company's strategy and direction. In a short-term, we will focus on enhancing execution, efficiency, controlling costs, and driving revenue growth to ensure robust financial performance. Second, May, we have broken down our goals into different phases and also made a flexible adjustment.
Jiayuan Lin: So we have established a very clear objective on targets for different phases that supports both short and performance and long-term strategic implementation. At the same time, we maintain strategic flexibility allowing us to adapt our plans in response to market and technological changes and swiftly respond to external environmental shifts.
Operator: That concludes the question and answer session.
Operator: Thank you once again for joining Cango's second quarter, 2024, earnings conference call today.
Operator: Have a great day.