Cango Inc. Announces New Share Repurchase Program

Rhea-AI Summary

Cango, a leading automotive transaction service platform in China, has authorized a new share repurchase program allowing for the purchase of up to US$50 million of its American depositary shares and Class A ordinary shares over the next 12 months. The repurchases, starting from April 25, 2023, will be executed on the open market and depend on various factors such as market conditions and trading volume. The company plans to fund the buyback using its existing cash balance. Cango's previous share repurchase program, announced on April 22, 2022, resulted in the repurchase of 2,794,557 ADSs for approximately US$5.7 million by April 17, 2023. The board will periodically review and may adjust the new program's terms.

Positive

• Authorization of a new share repurchase program worth US$50 million, enhancing shareholder value.
• Funding for the buyback planned from existing cash balance, indicating financial stability.

Negative

• None.

SHANGHAI, April 21, 2023 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced that its board of directors has authorized a new share repurchase program (the "New Share Repurchase Program") under which the Company may repurchase up to US$50 million worth of its outstanding (i) American depositary shares ("ADSs"), each representing two Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from April 25, 2023.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, in accordance with applicable rules and regulations. The number of ADSs and/or Class A ordinary shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Cango's working capital requirements and general business conditions. The Company's board of directors will review the New Share Repurchase Program periodically, and may authorize adjustment of its terms and size. The Company plans to fund the repurchases from its existing cash balance.

On April 22, 2022, the Company announced a share repurchase program (the "Existing Share Repurchase Program") under which the Company may repurchase up to US$50 million worth of its outstanding ADSs and/or Class A ordinary shares. Pursuant to the Existing Share Repurchase Program, the Company had repurchased 2,794,557 ADSs from the open market with cash in the aggregate amount of approximately US$5.7 million up to April 17, 2023. For avoidance of doubt, the Existing Share Repurchase Program will remain in effect until its expiration on April 25, 2023.

About Cango Inc.

Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting car buyers, dealers, financial institutions, and other industry participants. Founded in 2010 by a group of pioneers in China's automotive finance industry, the Company is headquartered in Shanghai and has a nationwide network. Leveraging its competitive advantages in technological innovation and big data, Cango has established an automotive supply chain ecosystem, and developed a matrix of products centering on customer needs for auto transactions, auto financing and after-market services. By working with platform participants, Cango endeavors to make car purchases simple and enjoyable, and make itself customers' car purchase service platform of choice. For more information, please visit: www.cangoonline.com. 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Business Outlook" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com
Twitter: https://twitter.com/Cango_Group

Helen Wu
Piacente Financial Communications
Tel: +86 10 6508 0677
Email: ir@cangoonline.com

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SOURCE Cango Inc.

FAQ

What is the new share repurchase program announced by Cango?

Cango's new share repurchase program allows for up to US$50 million in repurchases of its ADSs and Class A ordinary shares over the next 12 months.

When does Cango plan to start its new share repurchase program?

The new share repurchase program is set to commence on April 25, 2023.

How much did Cango repurchase under the previous share repurchase program?

Cango repurchased approximately 2,794,557 ADSs for about US$5.7 million under its previous program up to April 17, 2023.

How will Cango fund the new share repurchase program?

Cango plans to fund the new share repurchase program using its existing cash balance.

What factors will influence Cango's share repurchase timing?

The timing of Cango's share repurchases will depend on market prices, trading volume, and general market conditions.