Q4 2024 Cango Inc Earnings Call
Unknown Executive: Good evening, everyone. Welcome to Cango Inc's fourth quarter and full year 2024 in San Francisco. At this time, all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website.
Welcome to <unk> fourth quarter and full year 2024, its 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.
Unknown Executive: Join us today, Mr. Jiayuan Lin, Chief Executive Officer, and Mr. Yongyi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct a Q&A session.
Joining us today is Mr. Jonathan Lim Chief Executive Officer, Mr. Young Zhong Chief Financial Officer of the company.
Following managements prepared remarks, we will conduct a Q&A session.
Unknown Executive: Before we begin, I refer you to the Safe Harbor Statement and the company's earnings release, which also applies to the conference call today, as management will be making forward-looking statements.
Before we begin I refer you to the Safe Harbor statement in the company's earnings release, which also applies to the conference call today as management will be making 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. Hello everyone, and welcome to Cango's 4th Quarter and Full Year 2024 Earnings Call.
Speaker Change: With that said I'll now turn the call over to Mr. Jay on Lim CEO kind of go. Please go ahead Sir.
Okay.
Speaker Change: What are you trying to get a kind of a I mean, our CMT substitute teacher in Yantai bought them hungry Hello, everyone and welcome to Pandora's fourth quarter and for your attention turns at full earnings call.
Jiayuan Lin: 2024 is a sad year for Cango. This year, we witnessed another major transformation and growth of our company, and also welcomed a new development opportunity. Since its establishment, Cango has undergone many challenges, such as the economic downturn, the COVID-19 outbreak, and the transformation of the automotive industry. Despite the unexpected changes in the external environment, we have always maintained a sharp market observation and flexible business strategy. 2024 was a milestone year for Cango, marking another pivotal transformation and growth phase for the company while ushering in new development opportunities. Since our inception, Cango has navigated multiple challenges, including macroeconomic downturns, the impact of COVID-19 pandemic, and profound shifts across the automotive industry.
Speaker Change: Oh, they are selling into your Chunghwa, yes, it's G O D to b that yet senior woman Tien tsin locals, you'll eat just one.
Speaker Change: So we ought to be on Hudson, Joe. It's also yeah, you can either changing the fact that she just told me that chunk would you need a whole one G. Chongqing Xi'an, Hawaii <unk>. She said how long you have been good the Dalton.
Speaker Change: So you can go on what we'll find gene being one more tool well Miss dumping suits leader.
Speaker Change: What are your funding for that Jean till it.
Kengo: 'twenty 'twenty four was a milestone year for kengo, marking another pivotal transformation and growth phase for the company well ushering new development opportunities. Thanks.
al: Thanks Al infection, Kangol has navigated multiple challenges, including macroeconomic got downturn the impact of COVID-19, pandemic and profound shifts across the automotive industry. Despite the ever evolving its been an escape we have remain committed to developing king market insight and agile business strategy ensuring.
Jiayuan Lin: Despite the ever-evolving external landscape, we have remained committed to developing key market insights and agile business strategies, ensuring our continued adaptability and resilience. Since 2021, we have systematically refined our business structure, placing a strong emphasis on loan collection and post-loan management for outstanding loans while strategically transitioning our core business from auto financing facilitation to automotive transaction services. Through a series of effective measures, we have mitigated risks within our financing facilitation business, maintaining our competitive edge amid a complex and fast-evolving market landscape. For more information, visit www.fema.gov 自2024年底,我們的在待餘額已從峰值時的400多億人民幣,下降至約39億元,其中M1加為3.24%,M3加為1.78% 同時,我們將為集體全額壞帳準備或全額承擔擔保責任準備的信用風險敞口縮減至人民幣10.08億元 As of the end of 2024, our outstanding loan balance has decreased from a peak of over 40 billion RMB to approximately 3.9 billion RMB, with M1-plus and M3-plus ratios at 3.24% and 1.78% respectively.
al: Our continued adaptability and resilience.
Speaker Change: So all in all you need high school meals. She told you you would just go to judge on a turnaround from the T cells, just that whole quantities shouldn't do you want to leave you with.
al: So when she talked to that.
Speaker Change: So Joe you just started to put you to vote you should issue.
Speaker Change: Well my junk deal as you know we deal with the food yesterday piece.
Speaker Change: That will be in the system when things don't box. So that you can do many things don't your attention. While we have systemic systematically we find our business structure, placing a strong emphasis on loan collection and postponed management for outstanding loans, while strategically transitioning our core business from auto financing facilitation to automotive transaction services.
Speaker Change: Through a series of effective measures, we have mitigated risks within all financing facilitation business, maintaining our competitive edge.
Speaker Change: <unk> and fast evolving market landscape.
Speaker Change: I was just sitting empty well Monday.
Speaker Change: Each of them just sort of sit back let me be sure John So you're essentially E F N.
Speaker Change: M E waste, but it's the same Josh.
Speaker Change: Sanjay outweighed by E G box.
Speaker Change: Well Mcdonald with GT Chunghwa quite don't debate what.
Speaker Change: Well it jumbo Dumbo beta shingle Fujian uncle, So Jed so let me be standing by you.
Speaker Change: So shouldn't we shouldn't do Joe what you're doing.
Well you heard I mean it'd be awesome.
Speaker Change: You bet.
Speaker Change: It goes away it I apologize she gonna totaled a little hints.
Speaker Change: As of the end of 2020 full all outstanding loan balance has decreased from a peak of over 40 billion RMB to approximate phase three 9 billion RMB waste and one class and three plus ratios at three point to 4% and bump was seven 8% respectively.
Jiayuan Lin: At the same time, we have reduced our credit risk exposure not covered by full bad debt allowance or full risk assurance liabilities to 1.08 billion RMB. Our cash, cash equivalents and short-term investments amount to approximately 2.52 billion RMB, providing ample liquidity to support a company's sustainable growth and strategic initiatives. At the same time, we also noticed that in early 2024, the Bitcoin Transaction Fund ETF was approved in the U.S. This marked an important turning point in the encrypted currency industry. For this, we quickly launched a strategic layout for the encrypted currency industry. Given the huge potential for development shown in the encrypted currency field, we further clarified the strategic development direction of energy and computing power as the core.
Speaker Change: In time, we have reduced our credit risk exposure not covered by afford that claw back that allow us well for risk assurance liabilities to 1.08 billion RMB, our cash cash equivalents and short term investments amount to approximately 252 billion RMB providing AMCOL.
Speaker Change: Could you take to support the company's sustainable growth and strategic initiatives.
Speaker Change: You should answer that when we talk on it obviously untrue therapy, Joe you saw Joe you're judging ETF. So if doses are Jeremy Ford Beach, how are you.
Speaker Change: Please assumed all the time.
Speaker Change: It's well machine foods on kind of three Jeremy will be higher that's on your Pud U G. Jeremy for beating your short time, she had until the truth out financially.
Speaker Change: Booming chiller.
Speaker Change: Josh Sunday with pushing that's under contract for sale.
Jiayuan Lin: Meanwhile, we observed that the approval of Bitcoin ETFs in the United States at the beginning of 2024 marked a significant turning point for the cryptocurrency industry. In response, we swiftly initiated a strategic expansion into the cryptocurrency sector. Given this field's immense growth potential, we have further refined our strategic direction, focusing on energy plus computing power as the core of our future development strategy.
Speaker Change: Meanwhile, we observed that the approval of bitcoin Etfs in the United States at the beginning of 'twenty 'twenty four marked a significant turning point photo crypto currency industry and responsibly sleep today, we initiated a strategic expansion into the crypto currency sector given his field in mask growth potential we have for that.
Speaker Change: We find our strategic direction, focusing on energy plus computing power at the core of our future development strategy.
Speaker Change: On the Austin, yes, well much fuller changing xiaomi will be walking into one Jay you will see when we shampoo E. G. C. Maybe go little Jon the way, we see it showed up he took a jump from G being serious ones of them that you don't Oh, Yeah sure Sandy.
Jiayuan Lin: In November 2024, we made a critical move in our expansion into the crypto mining sector. On November 6th, Cango announced our acquisition of Onrack Bitcoin mining machines with an aggregate hash rate of 50 ETH for a total purchase price of 400 million USD. By November 15th, we had taken delivery of 32 ETH of mining power, massively boosting our effective computing power and making us the third largest Bitcoin miner globally. In November and December of 2024, we produced 363.9 and 569.9 Bitcoins respectively. The corresponding effective computing power was 29.8EH and 30.4EH respectively. The corresponding average mining machine return rate was 93% and 95% respectively, which showed a good state of operation.
Speaker Change: Joe pointed out Joe.
Speaker Change: Jojo wants them hope the window, you'll show Sunday when will you have to change with Nissan.
Speaker Change: In November 10, do you tend to fall, we made a critical move in our expansion into the critical crypto mining sector on November six can go announced though acquisition of own rack bitcoin mining machines with an aggregate cash rate of 50 H for a total purchase price of 400 million USB by November 15th we.
Speaker Change: <unk> taken delivery of 32 years of mining power massively boosting our effective computing power and making us the third largest pick one line globally.
Speaker Change: Our U S. C of her saia will move from BS to be to be somebody loses some good job.
Speaker Change: Joe did you want me to you you'll show Sunday, you're familiar with US is Judy about Yatra, who are sensitive C. H.
Speaker Change: Kwangju Pugin says you need somebody a wave patterns Joseph Central Bank puffins as usual.
Speaker Change: She went to downhole they don't.
Jiayuan Lin: Since the end of December of 2024, we have held 933.8 Bitcoins in total. In November and December 2024, we successfully mined 363.9 and 569.9 bitcoins with effective computing powers of 29.8EH and 30.4EH respectively. During these two months, our mining machines maintained an average operating hash rates of 93 and 95 percent respectively, demonstrating robust operational performance. As of December 2024, our total bitcoin holdings were 933.8. Under the drive of Bitcoin mining business, in the fourth quarter of 2020, the company's total revenue was 6.7 billion RMB, which was more than four times the same as last year.
Speaker Change: Just asking you saw yeti well Michael G.
Peter B: C O Joe by sensors Balmy Peter B.
Peter B: In November and December 'twenty to 'twenty, four we successfully mined $363 nine and 569 90 points with effective computing powers up 29 point <unk> and 34 <unk> respectively. During these two months our mining machines maintained enough French operating hash rates of <unk>.
Peter B: 93, and 95%, respectively, demonstrating robust operational performance as of December 20 to 24 hour total Bitcoin holdings was $933 eight.
Peter B: So that'd be tip, you walk, where you're able to chew don't shop on it.
Peter B: This is due to considerable datong zonal weight duty and she he under me be judging it when she turns on smokeless.
Jiayuan Lin: The company achieved net profit of 55.89 million RMB. In the full year of 2024, the company achieved a total revenue of 8 billion RMB, and net profit of 300 million RMB. Driven by the Bitcoin mining business, Cango recorded total net revenue of RMB 670 million in the fourth quarter of 2024, representing a year-on-year surge of over 400%. Net income for the fourth quarter was RMB 55.89 million. For the full year of 2024, the company achieved total revenue of RMB 800 million, with a net profit of RMB 300 million. While actively developing new encrypted currency business, we are also steadily promoting the development of traditional car business.
Almost decision in June do you do it.
Peter B: By posture, while you're there I mean are they all senior and junior Oc decisions don't solely by you and let me be real way say you're going to be.
Peter B: Driven by the Bitcoin mining business can go recorded total net revenue of 617 million RMB in the fourth quarter of 2024, representing a year on year search of over 400% net income for the fourth quarter was 555.89 million RMB for the full year of <unk>.
Peter B: Thousand 24, the company achieved a total revenue of 800 million RMB with a net profit of 300 million RMB.
Speaker Change: So did you kind of assume that Jeremy if we'll be able to talk when we use that one boot teaching handle G. So are you able to fine.
Jiayuan Lin: By combining online and offline services, we provide customers with a convenient and efficient second-hand car trading experience. In addition, Cango's second-hand car export website is gradually expanding its international market layout. Although facing certain market challenges, we believe that by continuously optimizing supply chain management and improving service quality, we will continue to enhance the brand influence in overseas markets and continue to develop our business in the future. While actively pursuing new cryptocurrency ventures, we are also making steady progress in the development of our traditional automotive business. Through a combination of online and offline service models, we provide customers with a convenient and efficient used car trading experience.
Peter B: Tomas Yeah, there's no change I shouldn't you have a full motion.
Speaker Change: Cohorts you can yes go.
Speaker Change: So the answer to Joe each year, so I told him to ASO. So to go on that soon.
Speaker Change: What did you see some fuji doing what many of you think this is all done.
Speaker Change: And towards Sushi, Youll come clean and Wendy she's on food Trulia.
Speaker Change: Shows you when we jumped on soon Joseph My wife says underpinned by usually we will either tissue towards on Tinder.
Speaker Change: Well, absolutely pursue a new crypto currency benches, we are also making steady progress in the development of a traditional automotive business through a combination of online and offline service models, we provide customers with a convenient and efficient used car trading experience. In addition, kangols used car asphalt platform is gradually expanding.
Jiayuan Lin: In addition, Cango's used car export platform is gradually expanding its presence in international markets. Despite facing certain market challenges, we are confident that by continuously optimizing our supply chain management, enhancing service quality, we will strengthen our brand influence in overseas markets and lay a solid foundation for future expansion.
Speaker Change: Presence in the international market, despite facing certain market challenges, we are confident that five continuously optimizing our supply chain management enhancing service quality, we must strengthen our brand influence and overseas markets and they have a solid foundation for future expansion.
Jiayuan Lin: In the foreseeable future, the cryptocurrency mining business will be a strategic area of our key layout. Under the double drive of Bitcoin market step-by-step regulation and technology generation upgrade, the industry is expected to continue the structural growth trend. Cango plans to deepen from three dimensions. We will continue to expand the scale of the algorithm to consolidate the basic advantages, improve the efficiency of asset management through intelligent management systems, and expand the energy optimization and other value chain extension businesses to build a more complete industrial and ecological change. Looking ahead, cryptocurrency mining will be a key strategic focus for our business expansion.
Speaker Change: So along with that Jeremy a hope you're welcome you Joseph woman and put you at a time to really step it abuses on Joe Bruno we found Jim what you should get those synergies or something we should always young guys here, you'll want to tickle she's doing don't choose to.
Speaker Change: Who do you want to single way to somehow Fuji.
Speaker Change: So as you called out sort of the glue.
Speaker Change: Yosef to what's in the money she told.
Speaker Change: He showed it towards the towards unbeliever, you've often Johnson did he isn't you.
Speaker Change: Go Genco, London, that's sometimes people want.
Speaker Change: Looking ahead cryptocurrency mining will be a key strategic focus for our business expansion with the dual drivers of increasing regulatory oversight and technological updates or upgrades. The industry is poised to sustain its structural gross kangol intends to deepen our engagement in three.
Jiayuan Lin: With the dual drivers of increasing regulatory oversight and technological updates or upgrades, the industry is poised to sustain its structural growth. Cango intends to deepen our engagement in three key areas. Steadily expanding computing power to reinforce our competitive edge, optimizing asset operation efficiencies through intelligent management systems, and broadening our value chain by exploring energy optimization and value-added services to create a more robust and integrated industry ecosystem.
Speaker Change: Key areas steadily expanding computing power to reinforce our competitive edge optimizing assay operation efficiencies through intelligent management systems, and broadening our value chain by exploring energy optimization and value.
Speaker Change: Value added services to create a more robust and integrated industry ecosystem.
Jiayuan Lin: 面对行业波动周期,我们已建立市场监测与政策研判 and Cango Inc's dynamic optimization strategy. Through a strict block-and-control system and flexible resource configuration, we can effectively respond to the changes in the regulatory environment and market risks, and we can seize the opportunity to increase the number of new technologies. We can continue to move forward for the sustainable development of Cango in the field of digital assets. In response to crypto industry fluctuations, we have established a comprehensive market monitoring protocol and a robust policy analysis mechanism to enable agile adjustments to our operational strategies. By implementing a stringent risk control framework and adaptive resource allocation, we can effectively navigate regulatory shifts and market risks while capitalizing on opportunities driven by technological innovation.
Speaker Change: Hum.
Speaker Change: So cheap with me Jenny says on Egencia dozens of Yum Punch you just don't know how you're watching children who are young.
Speaker Change: The phone called tissue hurting you on pizza Jojo to Genworth and you'd be along uses on Fujian fueled by what she sees will tell it took them do with hunk, which I assume since the time that you.
Speaker Change: <unk> father, she holds tissue donor Andrew.
Speaker Change: In response to crypto industry fluctuations, we have established a comprehensive market monitoring protocol and a robust policy analysis mechanism to enable agile adjustments still operational strategies by implementing our stringent risk control framework and adaptive resource allocation, we can effectively navigate regulatory.
Speaker Change: Shifts and market risks well capitalizing on opportunities driven by technological innovation. This approach ensures sustained growth momentum for Kangaroos continued expansion in the crypto currency sector.
Jiayuan Lin: This approach ensures sustained growth momentum for Cango's continued expansion in the cryptocurrency sector.
Jiayuan Lin: We would like to thank you for your support and trust.
Jin: Well my youthful look guys you thought you'd see that assists you Sheila sure Mr. Jin the CFO sung Lee you'd go with foods Young woman.
Unknown Executive: Now, I would like to hand over to CFO, Yongyi Zhang, to share with you our financial statements for the 4th quarter of 2024 and the previous year. We would like to take this opportunity to express our gratitude for your continued support and trust.
Speaker Change: This is due to teaching and that's how we got here.
Speaker Change: We would like to take this opportunity to express our gratitude for your continued support and trust now I'd like to hand over to our CFO Jong Yoo Jong to share our financial insights for the fourth quarter and full year of 'twenty to 'twenty four.
Yongyi Zhang: Now I would like to hand over to our CFO, Yongyi Zhang, to share our financial insights for the fourth quarter and full year of 2024. Thanks Jiayuan. Hello everyone and welcome to our fourth quarter in the four-year 2024 earnings. Before I started to review our financials, please note that unless otherwise stated, all numbers are in IME terms and all percentage comparisons are on a year-over-year basis. Total revenue in the fourth quarter of 2024 was $668 million compared with $130.2 million in the same period of 2020. The significant year-over-year increase was primarily driven by the new crypto mining business launched in November 2024.
Speaker Change: Thanks, Joe Hello, everyone and welcome to our fourth quarter and full year 2024 earnings call.
Speaker Change: Before I started to review our financials. Please note that unless otherwise stated all numbers I RMB terms and all percentage comparisons are on a.
Speaker Change: On a year over year basis.
Speaker Change: Total revenue in the fourth quarter of 2024 668 million compared with $130 2 million in the same period of 2023, the significant year over year increase was primarily driven by the new crypto mining business launched in November 2024.
Yongyi Zhang: Revenue from the Bitcoin mining business in the fourth quarter of 2024 was $653 million, with a total of 933.8 Bitcoins mined and held as of the end of 2024. Revenue from automotive trading-related income in the fourth quarter of 2024 was $15 million, compared with $130.2 million in the same period in 2012.
Speaker Change: Revenue from the Bitcoin mining business in the fourth quarter 2024 was 653 million was a total of $933 eight to bitcoin mining as all U S.
Speaker Change: End of 2024.
Speaker Change: Revenue from automotive to trading related income in the fourth quarter of 2024 was 15 million compared with $130 2 million in the same period 2023.
Yongyi Zhang: Now let's move on to our cost and expenses during the quarter. Total operating costs and expenses in the fourth quarter of 2024 were $645.5 million compared with $159.1 million in the same period of 2022. Cost of revenue in the fourth quarter of 2024 increased to $550.5 million from $110.9 million in the same period of 2023. The year-over-year increase was primarily driven by the cost of new crypto mining business. As a percentage of total revenues, cost of revenue in the fourth quarter of 2024 was 82.4% compared with 85.1% in the same period of 2009. Sales and marketing expenses in the fourth quarter of 2024 decreased to $2.2 million from $4.4 million in the same period of 2020.
Speaker Change: Now, let's move on to our cost and expenses during the quarter.
Speaker Change: Total operating costs, and especially in the fourth quarter, 2024, or $645 5 million compared with $159 1 million in the same period 2023.
Speaker Change: Cost of revenue in the fourth quarter of 2024 increased to 555 million from $110 9 million in the same period 2023.
Speaker Change: The year over year increase was primarily driven by the cost of new crypto mining business.
Speaker Change: Percentage of total revenues cost of revenue in the fourth quarter of 2024 Wars.
Speaker Change: $882 four per.
Speaker Change: Percent compared with 85, 1% in the same people at Tucson in 'twenty three.
Speaker Change: Also the marketing expenses in the fourth quarter 2024 decreased to $2 2 million from $4 4 million in the same period 2023.
Yongyi Zhang: As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2024 was 0.3% compared with 3.4% in the same period of 2020. General and administrative expenses in the fourth quarter of 2024 increased to $127.9 million from $45.6 million in the same period of 2021. As a percentage of total revenues, general and administrative expenses in fourth quarter 2024 were 19.1%, compared with 35% in the same period of 2024. Research and development expenses in the fourth quarter of 2024 decreased to $1.3 million from $7.3 million in the same period of 2020. As a percentage of total revenues, research and development expenses in the 4th quarter of 2024 was 0.2%, compared with 5.6% in the same period of 2023.
Speaker Change: As a percentage of total revenues sales and marketing expenses in the fourth quarter 2024 was your 0.3% compared with three 4% in the same period 2023.
Speaker Change: And administrative expenses in the fourth quarter 2024 increased to $127 9 million from $45 6 million in the same periods was on in 'twenty three.
Speaker Change: Percentage of total revenues general and administrative expenses in the fourth quarter of 2024 were 19, 1% compared with 35% in the same periods of 2023.
Speaker Change: Research and development expenses in the fourth quarter Tucson in 'twenty four decreased to one 3 million from $7 3 million same periods was on in 'twenty three.
Speaker Change: Percentage of total revenues research and development, especially in the fourth quarter of 2020, full well, 0.2% compared with five 6% in the same period 2023.
Yongyi Zhang: Net loss on contingent risk assurance liability in the fourth quarter of 2024 was $4.6 million compared with $22.2 million in the same period of 2020. Net recovery on provision for credit losses in the fourth quarter of 2024 was $66.1 million, compared with $31.2 million in the same period in 2021. We recorded 22.5 million in income from operations in the fourth quarter of 2024, compared with loss from operations of 28.9 million in the same period, 2023. Net income in the fourth quarter of 2024 was $55.9 million compared with net loss of $103.8 million in the same period of 2023.
Speaker Change: Net loss on contingent risk assurance, a lot better in the fourth quarter of Tucson, and 24 was 4.6 million compared with $22 2 million in the same periods was 123 now.
Speaker Change: Recovery of provision for credit losses in the fourth quarter of 2024 was $66 1 million compared with $31 2 billion in the same period of 2023.
Speaker Change: We recorded 22 5 million in income from operations in the fourth quarter 2024, compared with loss from operations of $28 9 million in the same period Tucson in 'twenty three.
Speaker Change: Net income in the fourth quarter 2024 was 55.9 million compared with net loss of $103 8 million in the same period, Tucson, and Tennessee non-GAAP adjusted net income in the fourth quarter 2024 was $59 2 million compared with non-GAAP adjusted net loss of 90.
Yongyi Zhang: Non-GAAP-adjusted net income in the fourth quarter of 2024 was $59.2 million compared with non-GAAP-adjusted net loss of $99.2 million in the same period of 2023. On a per share basis, basic and diluted net income per ADS in the first quarter of 2024 were 0.54 and 0.48, respectively, and non-GAAP-adjusted basic and diluted net income per ADS in the same period were 0.57 and 0.51, respectively.
Speaker Change: $9 2 million in the same period of two of 2023.
Speaker Change: On a per share basis basic and diluted net income per ads in the fourth quarter, 2020 fault or 0.54, and 0.48, respectively and non-GAAP adjusted basic and diluted net income per Etfs in the same period were 0.570 0.51, respectively.
Yongyi Zhang: For the full year of 2024, our total revenues were $804.5 million. Revenue from the Bitcoin mining business was $653 million, with a total of 933.8 Bitcoins mined and held as of the end of 2024. Revenues from automotive trading-related income was $151.5 million. Total operating costs and expenses were $625.6 million. Net income was $299.8 million and non-GAAP adjusted net income was $316.9 million. Basic and Diluted Net Income per ADS was 2.88 and 2.57, respectively. Non-GAAP Adjusted Basic Diluted Net Income per ADS was 3.04 and 2.72 respectively.
Speaker Change: For the full year of 2024 hour total revenues were $804 5 million revenue from the Bitcoin mine mining business was 653 million with a total of 900 cities three eight points mine and how it as of the end of 2024 revenues from.
Speaker Change: The motive trading related income was 151 5 million total operating our total operating cost and expenses were $625 6 million net income was $299 8 million and non-GAAP adjusted net income was 306.
Speaker Change: $15 9 million.
Speaker Change: Basic and diluted net income per ads was two point and two points five seven respectively, non-GAAP adjusted basic and diluted net income per ads was.
Speaker Change: <unk> three point.
Speaker Change: Several fault and $2 72, respectively.
Yongyi Zhang: Moving on to our balance sheet, as of December 31, 2024, the company had cash and cash equivalents of $1.3 billion, compared with $691.8 million as of September 30, 2024. As of December 31, 2024, the company had a short-term investment of $1.2 billion, compared with $3.1 billion as of September 30, 2024.
Speaker Change: Moving onto our balance sheet as of December 31, 2024, the company had cash cash equivalents of $1 3 billion compared with $691 8 million as of September 30th.
Speaker Change: <unk> 2024 as of December 31, 2024, the company had a short term investment of $1 2 billion compared with $3 1 billion as of September 32024 looking.
Yongyi Zhang: Looking ahead to the first quarter of 2023, as part of our continued commitment to growth and scaling In addition to scaling our capabilities, we are targeting a substantial increase in our hash rate over the coming months. We are on track to grow our diploid hash rate to approximately 50 ETH before the end of this quarter. This increase was expected to be driven by the closing of our share-settled acquisition of Bitcoin mining assets, positioning us to strengthen our competitive advantage and increase operational efficiency.
Speaker Change: Looking ahead to the first quarter of 2023 as part of our continued commitment to growth and are scaling.
Speaker Change: Okay.
Speaker Change: Scaling our capabilities, we are targeting a substantial increase in our history over the coming months. We are on track to grow our deployed heart rate to approximately 50 E arch before the end of this quarter. This increase was expected to be driven by the closing of our chefs I taught acquisition I'll pick on mining.
Speaker Change: Assets position us to strengthen our competitive advantage and increase operational efficiency.
Unknown Executive: This concludes our prepared remarks.
Speaker Change: This concludes our prepared remarks, operator, we are now ready to take questions.
Unknown Executive: Operator, we are now ready to take questions. Thank you. If you would like to ask a question, please press star then 1 on your telephone keypad at this time. If at any time you'd like to remove yourself from the queue, please press star then 2. We'll pause for just a moment to assemble our roster.
Speaker Change: Thank you.
Speaker Change: Can I ask a question. Please press Star then one on your telephone keypad at this time.
Speaker Change: If at any time, you like to remove yourself from the queue. Please press Star then two.
Speaker Change: We'll pause for just a moment to some of our roster.
Speaker Change: Yeah.
Pingyue Wu: And today's first question comes from Pingyue Wu with CIC Securities. Please go ahead. Thank you for the opportunity to ask questions.
Speaker Change: And today's first question comes from thing you will see I piece I see securities. Please go ahead.
Speaker Change: Hey, guys you guys have already Honda again, if he wants to do but Oh, what did they hold up well and he is he going to consider whether it does do it themselves.
Jiayuan Lin: I have two questions. The first one is, what is the company's forecast for future growth? The second question is, what is our strategic direction? Will we continue to do automotive business after this transition? Let me simply translate it. Will we continue to do automotive business after this transformation? Thank you. Regarding your first question, the company's expectations for future growth, we believe that in terms of Bitcoin mining, based on the 32 ETHs in our cash settlement portion, the conservative estimate is that our annual output is now around 6,000 ETH. At present, we are doing our best to promote the second batch of 1.8 billion ETH transactions.
Speaker Change: Oh, Yeah go in Houston.
Speaker Change: Can you tell me if I'm kind of in that wasn't until let's say what that change a whole unless you're about halfway to institute.
Speaker Change: To tell you.
Speaker Change: Oh, what what the bank does.
Speaker Change: The first question is what are the company's expectations about future growth.
Speaker Change: My second question is what's the company's Jackup deduction, well, okay, well, we continue to do automotive business outside our transformation. Thank you.
Speaker Change: But where are you in that Eagle will also do with lessons on E. G.
Speaker Change: I'm wondering with therapeutic that you work on your Colombia, do you almost sure well Michelle Poole window, So Luca sensor AGA year, Cheetah PV Basel, who do you all machines are engaged and they want to terminate or whichever.
Speaker Change: Which one would think that Chinese trading.
Speaker Change: So probably the suddenly the Joker Guangzhou, so it's a daunting task of getting real yoga once and hope one would've thought suddenly jumped out those EHR Peter Peter Nintendo Joan.
Jiayuan Lin: This is the current core task. After the transaction is completed, our total net profit will reach 50 ETH. The annual output of Bitcoin will be further improved. In 2025, our focus will be on integrating and optimizing existing computing resources, maximizing their efficiency, and actively looking for high-quality land to further expand the scale of computing. In terms of traditional car business, we expect that in 2025, the export volume of second-hand cars will reach 1,500 tons. The total value is about US$15 million.
Speaker Change: No.
Speaker Change: Oh, yeah, well the tone telephones desk quickly your question Sandeep.
Speaker Change: Could you talk about that New York she showed it.
Speaker Change: When we get <unk> all use Adobe G. Four that's really cool.
Speaker Change: Tan-tung Cheater Youll Columbia, when we Oh, Yeah also trickled down.
Phil: Hi, Phil.
Speaker Change: You have to wait until that wouldn't be that.
Jiayuan Lin: Thank you for your questions. On your first question on our expectation for our future growth, well, first of all, on Bitcoin mining, well, let's use our 32-EH cash settled hash rates as a basis for a conservative calculation. Well, on this basis, we forecast an annual production of around 6,000 Bitcoins. We are in the final stage of a share-based transaction to acquire an additional 18-EH of hash rates. So upon completion and delivery, our total computing power will reach 50-EH, significantly increasing our projected annual Bitcoin production. And in the first half of 2025, we will prioritize the integration and optimization of our existing hash rates to ensure maximum efficiency.
Speaker Change: Thank you for your questions. Your first question on expectations for our future growth well first of all on bitcoin mining well, let's use our city to H cash settled hash rates as the basis for our consists the tariff calculation well pay on this basis, we forecast an annual production of around 6000 points where in the <unk>.
Speaker Change: Anil stage of a share based transaction to acquire an additional 18 ph of hatch rates.
Speaker Change: Upon completion of delivery, our total computing power well reached 50, H significantly increasing our projected annual corn production and in the first half of 2025, we will prioritize the integration and optimization of our existing hash rate to ensure maximum efficiency and in the second half we will.
Jiayuan Lin: And in the second half, we will pursue a hash rate expansion strategy, actively seeking valuable assets to increase our overall capacity. And on traditional auto trading business, we expect to export 1,500 used cars in 2025 with a total value of $15 million.
Speaker Change: Assuming a hash rate expansion strategy actively seeking valuable assets to increase our overall capacity and one traditional our traditional auto trading business. We got to ask all it's 1500 used cars in 2025 with a total value of 15 million U S dollars.
Jiayuan Lin: Our strategic direction is to continue to expand mining business and maintain a leading position in the industry. This is not just to pursue numbers or rankings. More importantly, the scale advantage can bring us significant business development opportunities, attract the ability of top talent and improve market competitiveness and industry recognition. On the basis of profit-sharing expansion, the company will optimize existing facilities to maximize efficiency and profitability. We are committed to investing and actively exploring more potential and new development directions on the value chain, continue to seek sustainable and cost-effective energy sources, and continue to hold Bitcoin as an optimized financial model.
Speaker Change: Well listen to a phone show so tissue called out walking your boxes.
Speaker Change: Suddenly the GMT with so put you somewhere in the future.
I mean consumers with more useful to collections will be able to put them.
Speaker Change: <unk> and gentlemen had underneath <unk> so hungry.
Speaker Change: So suddenly a quote on street retail, which is generally your car changes.
Speaker Change: We talk parties I shall do so you need I mean, what would you do you talk to <unk>.
Speaker Change: Yes, it is something <unk> seen the product.
Joe Bruno: This is Joe.
Joe could you just simply couldn't do that.
Speaker Change: That.
Speaker Change: B G.
Speaker Change: COPD therapy, you want how mushy.
Jiayuan Lin: At the same time, we will continue to promote car business, especially second-hand car export business, and strive to make it a Chinese second-hand car export brand with a light asset operation. On your second question about strategic direction, our primary focus is on expanding our mining operations and maintaining an industry-leading position in computing power. This is not just about numbers or rankings. More importantly, we believe the economies of scale will help create significant opportunities for business growth, enhances our ability to attract top-tier talents, and strengthen our market competitiveness and industry standing. While expanding our mining operations, we will also optimize our existing facilities to maximize both efficiency and profitability.
Speaker Change: So Omar I don't usually taking sheets or you took us all sorts of truecar.
Speaker Change: So do you want your thoughts also when you got changes has been the two awesome cucamonga.
Speaker Change: On your second question about our strategic direction. Our primary focus is on expanding our mining operations and maintaining an industry leading position in computing power. This is not just about numbers all rankings more importantly, we believe the economies of scale will help create significant opportunities for business growth and housing.
Speaker Change: Our ability to attract top tier talent and strengthen our market competitiveness in industry spending.
Speaker Change: Expanding our mining operations, we will also optimize all existing facilities to maximize both efficiency and profitability, we remain committed to investing and actively exploring new opportunities along the value chain as well as sourcing sustainable low cost energy solutions.
Jiayuan Lin: We remain committed to investing in and actively exploring new opportunities along the value chain, as well as sourcing sustainable, lower-cost energy solutions. Additionally, we will continue to hold bitcoins to further optimize our financial model.
Speaker Change: Additionally, we will continue to hold bitcoin to further optimize our financial model. Meanwhile, we will continue to drive progress in our automotive related business, especially used car exports.
Jiayuan Lin: Meanwhile, we will continue to drive progress in our automotive-related business, especially used car exports, aiming to become a leading asset-light gateway for China's used car exports. That's all from me, thank you.
Speaker Change: To become a leading asset light gateway for China's used car exports.
Speaker Change: How is this year.
Speaker Change: That's all for me thank you.
Unknown Executive: Thank you.
Emerson Zhao: And our next question comes from Emerson Zhao with Goldman Sachs. Please go ahead. Thank you, Mr. Guan. I have three questions.
Emerson Zhao: Thank you and our next question comes from Emerson Zhao with Goldman Sachs. Please go ahead.
Speaker Change: She's your buddy's, though well goodbye incremental tankers LNG eagle for quantifying them and I'm glad to hear college that which of course was even though it could be higher they have a loyalty.
Emerson Zhao: First, can you tell us more about the logic of your company's entry into the Bitcoin industry? Second, will you be subject to some restrictions when trading Bitcoin? Third, do you have any plans to sell Bitcoin? Thank you.
Emerson Zhao: Yeah.
Emerson Zhao: Floor.
Speaker Change: Florida that'd be that'd be the tell your civil we filled all these yeah Jim go up.
Emerson Zhao: And the I suppose the whole mashable.
Speaker Change: Cool.
Speaker Change: Okay.
Emerson Zhao: Thank you, management, for taking my questions. I have three questions. My first question is on why did you decide on going into the Bitcoin mining or cryptocurrency mining industry? Could you give us more color on the reasons? And the second question is, will your Bitcoin transactions be under regulation? And my third question is, does the company have any plan to sell your Bitcoin holding? Thank you.
Speaker Change: Thank you management for taking my questions I have three questions. My first question is on why did you decide on going into the bitcoin mining or crypto currency money industry could you give us more color on the reasons and the second question is well your bitcoin transactions and be under regulation and.
Speaker Change: My third question is does the company have any plan to sell you'll be quite holdings.
Jiayuan Lin: I will answer these three questions together. We entered the Bitcoin mining field based on optimistic views on the future development of Bitcoin. In the past few years, we have been looking for strategic opportunities for business transformation. Since 2021, we have gradually reduced the scale of our business and slowly withdrew from this field. This has brought us great liquidity. Since then, we have studied many fields, including new energy, car manufacturing and transactions, as well as new energy projects such as solar and wind power. During the study of the new energy industry, we found that with the breakthrough of artificial intelligence technology, the global computing construction wave, Bitcoin mining has a valid application in the balance of power grid, storage surplus power generation.
Speaker Change: How should you not just don't go into Egypt with Allah when would you loopy Puppy walk on the you said you didn't need to be with a partner that look one camp so unfortunate junior.
Speaker Change: You said things are you trying to do so.
Speaker Change: So Ali our union to.
Speaker Change: Ooh jumped deal or two that you're able to win more being my mantra.
Speaker Change: So with them with that on the 2000 <unk> don't you.
Speaker Change: So the whole when we UN Paula token bulk.
Speaker Change: Washington, which is what's it's all cause you. All you did you pay on California again, the human tissue.
Speaker Change: It's usually a hungry Chongqing Guangzhou Guangdong she's the Lingo incident, you too to point you can further changes suddenly change a longtime buildup you walk on that pendulum Kanwal fool shown now of course I'm talking about from here you're showing in your so your woman.
Jiayuan Lin: So in November 2024, we acquired Bitcoin Mainland's price mining machine, obtained the leading computing scale in the industry, and quickly established a position in the industry. 此外,這次4億美元的交易都在海外進行,不涉及中國方面的監管,在整個交易過程中,我們與美國的相關監管進行了密切的溝通。 Based on our optimistic view on the future development of Bitcoin, we can predict that our strategy is to hold assets. This will also help to optimize our financial model. Of course, we do not rule out the possibility of appropriate reduction in market conditions to reduce the operating leverage. Thank you for your questions.
Speaker Change: Yes, you bet.
Speaker Change: So go to download the chancellor.
Speaker Change: Hold on a hunger lesion that suddenly grew more Suzhou Chengdu the Hollywood films.
Speaker Change: So what that says look simi agenda Joey.
Speaker Change: Joe you talked a whole lot of things you were so it you don't grow for me. It is doing well. So it's a good show your courtroom when will you make whether Shanghai Jin Guan Jia Dmitry the goto.
Speaker Change: Do you want to be to be we like partner look one compound.
Speaker Change: So it sounds like you're doing this well and the children to seal.
Speaker Change: Yokohama, that's how mushy.
Speaker Change: <unk> told you G system. So the economy is junk.
Speaker Change: Do you in Ghana.
Speaker Change: Thank you for your questions I would take all of your three questions together. So why do we decided to go into these industries, while we entered the bitcoin mining factor based on our positive outlook on bitcoin future potential over the past few years, we have been proactively exploring strategic alternative opportunities for business transformation.
Jiayuan Lin: I will take all of your three questions together. So why did we decide to go into this industry? Well, we entered the Bitcoin mining sector based on our positive outlook on Bitcoin's future potential. Over the past few years, we have been proactively exploring strategic opportunities for business transformation. Since 2021, we have steadily scaled back our loan facilitation business and systematically exited this sector, which substantially boosted our liquidity. As we researched and got involved in energy-related projects such as PV power stations and new energy storage systems, we identified Bitcoin mining as an effective solution for balancing grid loads and utilizing surplus electricity, especially amidst the global surge in computing power demand driven by advancements in artificial intelligence.
Speaker Change: 2021 we have started to scale back our loan facilitation business and systematically exited the sector, which substantially boosted our liquidity as we researched and got involved in energy related projects such as PV power stations in new energy storage systems, we identified bitcoin mining Anthony.
Speaker Change: <unk> solution for balancing great loads and utilizing surplus electricity, especially amidst the global search and computing power demand driven by advancements in artificial intelligence. So we decided to seize the opportunity and acquired big names on rack mining machines in November 'twenty, 'twenty, four which give us industry, leading computing power.
Jiayuan Lin: So we decided to seize the opportunity and acquired Bitmain's Onrack mining machines in November 2024, which gave us industry-leading computing power capacity and quickly established our strong presence in the sector. And about our transaction regulation, the 400 million transaction was conducted entirely offshore and is not subject to regulation by Chinese authorities. And throughout the process, we have maintained close engagement with regulators. And also about our future plan for our Bitcoin holdings, well, given our optimistic outlook on the future of Bitcoin and our cryptocurrency, our strategy for the foreseeable future is to mine and hold. This will also help optimize our financial model.
Speaker Change: Capacity and quickly established a strong presence in the sector and about our transaction regulation and the 400 million transaction was conducted entirely offshore and it's not subject to regulation by Chinese authorities and throughout the process. We have maintained close engagement with regulators.
Speaker Change: And also about our future plan for all our Bitcoin holdings, well given our optimistic outlook on the future of bitcoin and cryptocurrency our strategy for the foreseeable future is to mine I Hope. This will also help optimize our financial model. However, we remain open to adjusting our holdings based on market condition.
Jiayuan Lin: However, we remain open to adjusting our holdings based on market conditions to enhance revenue and manage leverage. 好,謝謝 Thank you. Thank you.
Speaker Change: To enhance revenue and manage leverage.
Speaker Change: Oh sure sure.
Speaker Change: Thank you.
Mengting Zhai: And our next question comes from Mengting Zhai with Mengcheng Securities. Please go ahead. Thank you for accepting my question. I have three questions.
Speaker Change: Thank you and our next one.
Speaker Change: Some come from making things right with me.
Speaker Change: Securities. Please go ahead.
Speaker Change: He said why anytime soon so that's run hours at Danville, your philosophical and Peugeot San Diego Joshi elements.
Mengting Zhai: First, as an industry participant, what is your expectation of the price of Bitcoin? And can you give us the specific layout of the entire Bitcoin industry? Second, what are the advantages of the company's transformation to Bitcoin? And will we see other companies doing a similar business transformation? Third, do you have any plans for the future? Thank you, management, for taking my questions.
Speaker Change: Yeah, they're doing the tango two added because being a point guard some yummy they didn't.
Speaker Change: Vehicles since that junk that'd be that'd be yeah. The GT boutique folk they will manage that and kind of Jewish holidays that the mcdougal and Tino sugar <unk>.
Speaker Change: It could be from Yoshi, well my shortfall quick handouts, Palo goose, so when they see the yellow gretzky.
Speaker Change: He's not going to share them with Campbell's soup that quanta will who control Guarani does for me in the total.
Speaker Change: Zimbra lousy sashes attempting to <unk>, Ms I'm glad to hear about that yet.
Speaker Change: Thank you management for taking my questions I have several questions. My first question is that as the participants in this new industry wide choice citation for Pecan prices and also could you give us more colors on your strategy for your bitcoin mining business I mess up my second question is that what do you.
Mengting Zhai: I have several questions. My first question is that, as a participant in this new industry, what is your expectation for Bitcoin prices? And also, could you give us more colors on your strategy for your Bitcoin mining business? My second question is that, what do you see are the competitive edges of Cango in Bitcoin mining? And do you see others joining the drive to mine Bitcoins in the future? My next question is about your mining maintenance and also mining farm management. So how do you do that and what's your plan for 2025?
Speaker Change: See.
Speaker Change: The competitive edge yourself can go in bitcoin mining and do you see Odyssey, joining the drive to mine Bitcoin future and my last question is about the Oh, you're you're mining Rick mentioned this and also mining farm management. So how do you do that and what's your plan for 'twenty five.
Jiayuan Lin: 關於您的第一個問題,我們預計比特幣在2025年的交易價格將在9萬到12萬美元的區間內,主要受越來越多機構吸納比特幣,監管放鬆以及戰略儲備等因素的推動。當然,比特幣的未來價格存在一定的波動, Our strategy in this area is to get the profit margin of the industry through these two acquisitions and quickly establish a position in the industry and continue to expand the e-sports market up and down along the digital economy and ecological value chain. Thank you for your questions. Let me answer your questions one by one. So your first question, we anticipate that Bitcoin may trade between $90,000 to $120,000 in 2025, driven by factors such as increased institutional adoption, regulatory approvals, and strategic reserves. However, Bitcoin's future price is naturally subject to inherent volatility and uncertainty. We have secured industry-leading computing power capacity through the two Bitcoin mining machine acquisitions we've announced.
Speaker Change: Oh, Oh, well you knew that you go into Walmart ETP to Peter on your own you Joyce Johnson <unk> Johnson's two $1. So on me and the agenda.
Speaker Change: Oh, So you allow you to chico's should not be Tobey Genworth financial is just under two bit unusual that we don't don't lumpy WWE like job cuts when do you think the poodle.
Speaker Change: A woman that took a lead approaches.
Speaker Change: The MP sogou to Joey who the hunger lesion. They suddenly grew more usual attendees are hung up on the Seaway Bewilder me Shypoo Supergene G. Sometimes jobs again, GCU Shanghai somehow you towards a digital.
Speaker Change: Thank you for your questions. Let me answer your questions. One by one. So your first question are we anticipate the bitcoin may trade between 90000 to 120000 are in.
Speaker Change: In 2025, driven by factors such as increased institutional adoption regulatory approval was the strategic reserve. However, bitcoin Fisher price is naturally subject to inherent volatility and uncertainty we have secured industry, leading computing power capacities. So the to bitcoin mining machine.
<unk>, we've announced as such we've already established a strong foothold in the sector and they just saw a solid foundation for future expansion up and down a digital economy value Chang.
Jiayuan Lin: As such, we've already established a strong foothold in the sector and laid a solid foundation for future expansion up and down the digital economy value chain. The second question is, Cango has grown in the automotive industry for many years, and has accumulated a lot of experience and talent in the field of business management. Since the beginning of 2022, we have been systematically exploring the rebuilding and transformation of the commercial scale. We have come into more contact with projects related to the field of energy, such as light-based power stations, new energy storage, etc. With the global computing power construction wave caused by the breakthrough of artificial intelligence technology, we have gradually established the direction of energy and computing power transformation.
Speaker Change: Great Tiago into Tunku, she's a higher single Tanya.
Speaker Change: Can you quantity the summit deal I thought your <unk>.
Speaker Change: How long have the so called of Chile.
Speaker Change: Ali on Yeah. She told me she can go Gee, who some of you grew more than go Hudson's you can pencil when we're.
Speaker Change: Looking toward two taller true conflict ends up shooting them, who now don't even though the new.
Speaker Change: Shanghai shampoo, she's a longer answer than usual to what you can find the changes suddenly changed the lungs, how one would hope we could either nonrecurring Josh on these items.
Speaker Change: Yeah.
Jiayuan Lin: We have conducted in-depth research on digital currency and fully analyzed projects related to energy and computing power. This has given us a deep understanding and insight into the industry and strengthened our determination to promote large-scale transactions. As the regulatory environment and market conditions continue to change, more and more companies are beginning to pay attention to the potential development opportunities of encrypted currency mining business. However, the real entry into the field requires facing higher entry barriers, such as large-scale capital expenditure and comprehensive operational preparation. These are all important factors that potential participants need to consider carefully.
Speaker Change: One with the issues will be changing the symbol, you and Youll, Jimmy and finish it on Sunday, So I'm going to show them. Just so I'm wondering how you would assume because the lead you have done Tom doesn't count on trading talk with more joey's attrition.
Speaker Change: When we get to eat up so it is doing well on June horses until you end up with them before you allow your daughter, she acquaintances ones without Jeremy walk on year, where the trends are positive you know as soon as a general color you show me a good chunk of the tumor killing me talk anymore. That's a bunch of true who joined me on the unions.
Speaker Change: Due to the change that's hundreds of she got some good color on the two unusual.
Jiayuan Lin: On your second question, Cango has been a prominent player in the automotive industry for many years, boasting strong expertise and also strong talent pool. And since 2021, we have comprehensively re-evaluated our business model and began restructuring to capitalize on new strategic growth opportunities. And since then, our increasing involvement in energy-related projects such as PV power stations and new energy storage systems has become a key part of our evolution. As AI advancements drove surging global demand for computing power, we gradually refined our transformation strategy to focus on energy plus computing power. And we have conducted in-depth research into digital currencies and closely examined projects tied to energy and computing power.
Speaker Change: So when we have a second question can go has been a prominent player in the auto need motive industry for many years.
Speaker Change: Both staying strong expertise and also strong talent pool and things.
Speaker Change: Please turn teaching you, while we have a comprehensive reevaluated our business model and began restructuring to capitalize on new strategic growth opportunities and since then our increasing involvement in energy related projects such as T V power stations and a new energy storage systems has become a key part of our evolution.
Speaker Change: <unk> S. AI advancements drove searching global demand for computing power, we graduate everybody find our transformation strategy to focus our energy plus computing power and we have conducted in depth research into digital currencies and closely examined projects tied to energy on computer computing power. They just gave us.
Jiayuan Lin: This gave us a solid understanding of the industry and our confidence in pursuing large-scale transactions. Of course, as the regulatory landscape and market conditions change, we are seeing an increasing number of companies exploring growth opportunities in the crypto mining sector. However, the crypto industry presents high barriers to entry, including the need for substantial capital investment and comprehensive operational readiness. So these are crucial factors that any potential new player must carefully evaluate. The third question is, currently, we mainly operate and manage mining machines through cooperation with Bitcoin Mainland. The whole operation and mining machine situation is good.
Speaker Change: Solid understanding of the industry and strengthened our confidence in pursuing larger scale transactions.
Speaker Change: Of course, as the regulatory landscape our market conditions change, we are seeing an increasing number of companies exploring growth opportunities in a crypto mining sector. However, the crypto industry presents high barriers to entry, including a need for substantial capital investment and comprehensive operational readiness. So it leaves a crucial factor.
Is that any potential new player must carefully evaluate.
Speaker Change: When deciding when to watch out what months do we ought to go download the hurdle logging with one concrete jungle using way hook. Once you got strong quality, Oh, well, that's actually under your Hood, San Diego hung his own gear, so to your Kingdom leadership team.
Jiayuan Lin: Our return rate and production volume are also at a competitive level in the industry. In the future, as we scale up, we will further strengthen the operation capability of the company's operating team.
Speaker Change: Well as you well know Sunday single woman suddenly agreement with achievable Codell, well majority of which I'll walk, who screamed and do that.
Speaker Change: Joseph.
Jiayuan Lin: On your third question, we currently manage and operate our mining rigs in partnership with Bitmain. Our overall operations and machine performance are solid, with above-average operating hash rate and coin production at a highly competitive level within the industry. Moving forward, as our computing capacity continues to expand, we plan to gradually build our in-house operational capabilities and establish a dedicated operations team. Thank you.
Speaker Change: Oh Your third question, we current they manage and operate our mining Rex in partnership with a big Bang. Our overall operations that mission performance I saw it with above average operating hash rate of corn production at the highly competitive level within the industry moving forward as our computing capacity continues to expand we plan.
Speaker Change: To gradually build our in house operational capabilities and establish a dedicated operations team.
Speaker Change: Oh, thank you.
Speaker Change: Yes.
Xiang Sun: And our next question comes from Xiang Sun with Guosheng Securities. Please go ahead.
Speaker Change: Thank you and our next question comes from Sheng Zhong with <unk> Securities. Please go ahead.
Xiang Sun: Hello, Guan Lichen, can you hear me? Yes The first question I want to ask is, do we have a target for 2025? Also, what is the overall level of our energy efficiency and electricity costs? Also, do you have any plans to reduce the cost of optimizing energy?
Speaker Change:
Speaker Change: Great.
Speaker Change: Great.
Speaker Change: Oh, Yeah warehousing Diego induced here, so I'm already noted sounding more value on my children Shaw.
Speaker Change: Moshe I know hobby.
Speaker Change: Please limit yourself or you're going to hurt you in page English.
Speaker Change: Sure.
Speaker Change: Also bear in mind, though that foundational Latin American young Dr. Susanne.
Unknown Executive: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you I have a question on the 2025, how should we target. So could you tell us share with US what is your attach rate target for 'twenty to 'twenty five and what are the current energy efficiency in electricity cost figures and what are the company's plans for optimizing energy and reducing costs.
Unknown Executive: I have a question on the 2025 hashrate target. So could you share with us what is your hashrate target for 2025? And what are the current energy efficiency and electricity cost figures? And what are the company's plans for optimizing energy and reducing costs?
Speaker Change: Oh no.
Michael Chou: Looking to the September pardon me I don't want you to him the CFO Tony lesions are not quite I don't want to finish. Your question is on costs. So I will hand over the question to our CFO Michael Chou.
Yongyi Zhang: Since your question is on cost, I will hand over the question to our CFO, Michael Zhang. Thank you for your question. When we complete our second acquisition, we will become the second-largest publicly listed Bitcoin mining company by computing power, closely trailing Mara, the current industry leader. So more suitable mining assets become available, we remain open to expanding our portfolio through additional. Currently, the average energy consumption of a mining machine is 21.62 TS. As our mining operations are spread across five countries, electricity costs vary due to regional cost variations. Overall, our mining costs mainly consist of hosting fees, which include electricity and equipment depreciation.
Michael Chou: Thank you for the question.
Michael Chou: Oh, so when we complete all the second acquisition, we will become the second largest publicly listed pick one mining company that computing power closely trail tomorrow or the current industrial leader.
Michael Chou: So I'm all suitable a mining asset became available we remain open to expanding our portfolio through additional acquisitions.
Michael Chou: Currently the average energy consumption of our mining machine is a 21 six Joe.
Michael Chou: T edge.
Michael Chou: Pretty edge is all of them.
Michael Chou: Mining operations are spread across five countries.
Michael Chou: Electricity costs vary due to original cost variations overall, our mining costs, mainly cause yourself hosting fees, which including electricity and equipment depreciation.
Yongyi Zhang: The Trump administration has announced plans to expand traditional energy projects, which is expected to put downward pressure on overall energy prices. So we will also negotiate for lower electricity costs as we renew our IDC contract.
Speaker Change: Are the Trump administration has announced plans to expand its traditional energy projects, which is.
Speaker Change: To put down a word pressure on overall energy prices.
Speaker Change: So we will also Oh, we will also are negotiated for lower electricity costs as we renew our IDC contracts at the same time, we are actively exploring more cost effective energy solutions, including potential energy projects in the middle East and Australia. Thank you.
Yongyi Zhang: At the same time, we are actively exploring more cost-effective energy solutions, including potential energy projects in the Middle East and Australia.
Yongyi Zhang: Thank you.
Speaker Change: Yeah.
Speaker Change: Okay.
Unknown Executive: My second question is about the mining cost of single coin. Can you introduce this situation?
Speaker Change: Oh, Dear Oh sure they haven't done before July one to them, but.
Speaker Change: Okay got you I'm hungry touch all the time.
Speaker Change: Okay.
Yongyi Zhang: Thank you. The second question is on the average mining cost per BTC, and also could you give us more detailed description of your mining farms and mining rigs? Also with mining operations spread across five countries, our electricity costs have fluctuated based on our local grid rates. The average cost to mining... Bitcoin, excluding its depreciation of mining machines, was was $67,769.9 USD per Bitcoin in the fourth quarter. We currently operate over 138,000 machines, primarily from S90 series. with nearly 90% being water-cooled units. Approximately 40% of these machines are located in the United States, distributed across multiple states, including South Carolina, Arkansas, Oklahoma.
Speaker Change: Sure.
Speaker Change: And if that's all right.
Speaker Change: Hmm.
Speaker Change: Okay.
Speaker Change: The second question is only average mining cost per bitcoin and also could you give us more detailed description of your mining farms Ah mining rates.
Speaker Change: Also with mining operations spread across our five countries, our electricity costs fluctuate based on our local great rates.
Speaker Change: Average cost to money.
Speaker Change: Because excluding depreciation of mining machine was.
Speaker Change: But 60 67769 nine got startup cost in the fourth quarter. We currently operate over all.
Speaker Change: Oh 138000 machines, primarily from S 90 series.
Speaker Change: With nearly 90% being a water cooled units.
Speaker Change: Approximately 40% of these machines are locating United states distribute across multiple.
Speaker Change: Multiple states, including sauce, Colorado Ah I can assess Oklahoma are the remainder are spread across East Africa Omen, Paraguay and.
Yongyi Zhang: The remainder are spread across East Africa, Oman, Paraguay, and Canada, forming a diversified global footprint.
Speaker Change: Canada, forming a diversified global footprint. Thank you.
Speaker Change: Yeah.
Yongyi Zhang: Thirdly, our current situation is enough to support our business development after the merger.
Speaker Change: No. It is I'm gonna daughters won't Dungeness engine, Oh man, I think I've been going to harder.
Speaker Change: I don't know.
Yongyi Zhang: Thank you.
Yongyi Zhang: And my last question is on cash flow. So after these strategic transactions, will there still be enough cash flow to support your business expansion? We thoroughly assess our cash flow position before moving forward with this strategic acquisition. While the total transaction value was US$400 million, only US$256 million will be settled in cash, with the remainder executed through a stock-for-stock acquisition. So even after completing this transaction, we still have sufficient cash and liquidity to support our operation. We are closely monitoring our cash flow to make sure that we have ample liquidity to address various scenarios. We are also actively exploring ways to enhance capital efficiency and ensure we optimize our use of financial resources.
Speaker Change: Thank you and my last question is on cash flow. So after the after these are strategic transactions, while they are still be enough cash flow to support your business expansion.
Speaker Change: Oh, we thoroughly assess our cash flow position before moving forward with this strategy.
Speaker Change: Acquisition, while the total transaction value was a 400 million in U S. Dollar on a 256 million U S. Dollar will be settled in cash with the remainder of our securities through a stock for stock acquisition.
Speaker Change: So even after the application of completing this transaction, we still have sufficient cash and liquidity to support our operations.
Speaker Change: We are closely monitoring our cash flow to make sure that we have.
Speaker Change: Ample liquidity to address various scenarios. We are also actively exploring ways to enhance capital efficiency.
Speaker Change: And ensure all optimize ensure we optimize our use of financial resources. Thank you.
Yongyi Zhang: Thank you.
Jiayuan Lin: The last question is if we look at the recent price adjustment, will this have a big impact on our business? Thank you. My last question is about the price volatility of bitcoins. Will this kind of volatility have a big impact on your performance? Uh, our strategy is to mine a whole bit So as we view Bitcoin's price fluctuation as largely short-term and are optimistic about its long-term value. So we are very confident that Bitcoin will positively impact the company's performance in the long run. At the same time, from the financial security and liquidity perspective, we will maintain substantial capital reserves to manage potential price volatility.
Speaker Change: Okay.
Speaker Change: You're going to close them or what kind of other than that would be down to are telling them that they.
Speaker Change: Okay.
Speaker Change: Got it okay.
Speaker Change: Yes.
Speaker Change: Thank you my last question is about the price volatility of pick points well. This kind of volatility has a big impact on your performance. Thank you.
Speaker Change: Our strategy is to mine and hope it quite so as we view our bitcoin frustration is largely shorten and are optimistic about the long term value. So we are very confident that the client will positively impact the company's performance in the long run.
Speaker Change: At the same time, it's around the financial security and a liquidity perspective, we will maintain substantial capital reserves to manage potential price volatility.
Speaker Change: Thank you.
Unknown Executive: Thank you, and that concludes the question and answer session.
Speaker Change: Thank you and that concludes the question and answer session.
Unknown Executive: Thank you once again for joining Cango Sports Corner in full year 2024 earnings conference call today. Have a great day and you may now disconnect your lines.
Speaker Change: Thank you once again for joining kindred was fourth quarter and full year 2024 earnings conference call today have a great day and you may now disconnect your lines. Thank you.
Unknown Executive: Thank you.
Joseph: Just not using them to Barclays Joseph sheer digest it.
Unknown Executive: This concludes today's session. Thank you all for joining us.
Speaker Change: This concludes today's session. Thank you all for joining us.
Speaker Change: [music].
Jiayuan Lin: Jiayuan Lin, Yongyi Zhang, Pingyue Wu, Cango Inc
Speaker Change: Okay.