CANG

Image source: The Motley Fool. Monday, Aug. 31, 2026 at 9:00 p.m. ET Chief Executive Officer - Paul Yu Chief Financial Officer - Simon Tang Operator: Good day, and welcome to the Cango Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded. I'd now like to turn the conference over to Paul Yu, CEO. Please go ahead. Peng Yu: Thank you. Hello, everyone, and thank you for joining Cango's Second Quarter 2026 Earnings Call. Let me start with a quick overview of the quarter. On the mining side, we deliberately scaled back operations as planned. That's reflected our second quarter results. On the AI side, since the end of the second quarter, we have made real progress on infrastructure and signed our first customer contract, moving that business from build-out into commercialization. I will be clear that these AI developments occurred after June 30 and are not reflected in this quarter's reported results. In terms of the numbers, total revenue for the quarter was approximately $50.8 million with about $47.4 million coming from Bitcoin mining. Net loss was approximately $81.6 million, mainly driven by noncash impairment and disposal losses on our mining machines, a direct result of the deliberate restructuring of our asset base. As of June 30, we held 1,056 Bitcoins. In addition, our cash, cash equivalents and cryptocurrencies totaled approximately $23 million, while long-term debt was approximately $31.2 million. Now let me walk through the mining business and AI infrastructure business in more detail. This quarter, we continued to actively rightsize our mining operations, disposing of machines with lower marginal efficiency and introduced a leasing model to shift our focus from scale to economics. As of June 30, our self-mining hashrate was 19.84 exahashes per second, and our lease hashrate was 7.74 exahashes per second for a combined operating hashrate of 27.58 exahashes per second. Under the leasing arrangement, the lessee bears the direct operating costs associated with the hashrate, which also reduces our exposure to variable costs. We mined 656 Bitcoins this quarter. Production was down sequentially, largely reflecting the deliberate reduction in self-mining capacity and shift of some capacity into leasing. We will continue to evaluate the mix between self-mining and leasing based on economics rather than scale. We will keep phasing out less efficient legacy capacity. This quarter, we also began implementing a hedging arrangement to manage our exposure to Bitcoin price volatility, thus enhancing the predictability of our operating cash flows. Our average cash mining cost in Q2 was $73,313 per coin, down about 5% from Q1. Now let's turn into AI infrastructure. A quick on timing, everything I'm about to cover took place after June 30 since the start of the third quarter. So it isn't reflected in the quarter's financial results, but we want to share it with you. On infrastructure, construction at our Georgia LN site was completed in early July with the site infrastructure able to support up to 3 megawatts, leaving room for future expansion. Container units have arrived on site and are being installed and GPUs are arriving on site in batches. On the customer side, since the start of the third quarter, we've signed a customer contract and discussion with prospective customers are ongoing. That takes our AI business from technical validation into commercial monetization. This is a development since quarter end. Contracted revenue is still small, and we expect to begin recognizing related revenue in the third quarter. On the business model, we expected to pursue both bare-metal GPU hosting using our existing site and power infrastructure to offer a standardized deployment environment and colocation intended to improve overall infrastructure utilization. We haven't signed a formal colocation contract yet and terms are still being worked out. We also have test nodes in Texas and on the West Coast, mainly to support customers who need deployment closer to their location in the future. We are evaluating several potential new sites as well, and we haven't ruled out building our own. We will continue to run mining and AI as parallel businesses. Looking into the second half, our priority are managing the mix of self-mining and lease hashrate prudently, executing our AI deployment and continuing to sign new customers and building on the operating experience from Georgia as we evaluate further site expansion. Capital discipline and operating efficiency remain our priorities. That concludes my remarks. I will now turn it over to our CFO, Simon, for a detailed review of the financials. Thank you. Ming Yeung Tang: Thanks, Paul. Hi, good morning. Hi, everyone, and welcome to our second quarter 2026 earnings call. Before I start to review our financials, please note that unless otherwise stated, all amounts discussed are in U.S. dollars. Total revenues were $50.8 million. Revenue during the quarter from the Bitcoin mining business was $47.4 million with a total of 656 Bitcoins mined during the period. The average cost to mine Bitcoin, excluding depreciation of mining machines, was $73,313 per Bitcoin and all-in cost of $98,405 per Bitcoin. Compared to the first quarter of 2026, total revenue decreased by approximately 50%. This decline primarily reflects our proactive reduction in operational hashrate as we continued to selectively phase out older, less efficient S19 series mining machines and temporarily transitioned some capacity to a hosted leasing model. While this adjustment has reduced our top line mining revenue, it has also significantly lowered our operating costs and improved our cash flow profile. And some of these efforts continued throughout the second quarter. Now let's move on to our cost and expenses. Cost of revenue, exclusive of depreciation was $50.7 million, down from $99.6 million in the first quarter, driven by lower electricity and hosting expenses following the hashrate reduction. Depreciation was $16.9 million, down from $29.4 million in the first quarter. General and administrative expenses, including related party fees, totaled $8.4 million. Impairment loss from mining machines in the second quarter was $42.9 million and loss on disposal of mining machines in the second quarter was $8.5 million. Loss from changes in the fair value of crypto assets was $4.1 million compared with a loss of $151.8 million in the first quarter. The change was primarily driven by 2 factors: the decrease in Bitcoin prices as of June 30, and this was partially offset by the implementation of our hedging program. As Paul mentioned earlier, we began implementing a Bitcoin hedging program during the second quarter. The purpose of this program is to manage our exposure to Bitcoin price volatility and provide greater predictability to our operating cash flow. We intend to selectively continue to use hedging as a risk management tool, and this is not for speculative purposes. The related short-term positions are reflected on our balance sheet and will be reflected as we continue to execute this program in a disciplined manner. Operating loss for the quarter was $80.6 million with a net loss from continuing operations of $81.6 million in the second quarter. The net loss was primarily driven by the noncash impairment and disposal losses I just mentioned, which together totaled approximately $51 million. On a non-GAAP basis, adjusted EBITDA was a loss of $10.7 million, including a $4.1 million loss from the changes in the fair value of the receivables for the Bitcoin collateral. Lastly, moving on to our balance sheet. As of June 30, we had cash and cash equivalents of $10.1 million compared with $7.2 million as of March 31. At the same time, our balance sheet also has Bitcoins in the number of 1,056 Bitcoins held in treasury. In terms of operational assets, we carry our mining machines at a net value of $58.7 million after depreciation. On the liability side, we had $31.2 million in long-term debt compared with $30.6 million as of March 31. And this concludes our prepared remarks. Operator, we are now ready to take questions. Operator: [Operator Instructions] And today's first question comes from Pingyue Wu with Citic Securities. Pingyue Wu: I have 3 questions. First, can management provide more color on the Bitcoin hedging program in terms of overall notional size, instrument structure and duration? And additionally, could you clarify whether this is risk mitigating or it involves any directional positioning? And my second question is regarding the AI infrastructure progress you highlighted such as the Georgia site completion and container deployment. We think it is a milestone occurred towards the second quarter? And what is the rationale for including them now? And more importantly, could we incorporate this development as material increase in our third quarter financial models? And my third question is regarding the newly signed customer contracts. Could you provide some visibility into the anticipated revenue contribution and time line for top line recognition? Ming Yeung Tang: Thanks, Pingyue. It's Simon here. Why don't I take the first question and then Paul can address your second and third questions with regards to the AI progress. In terms of the hedging program, it's structured as a short-term loan denominated in BTC. So that is reflected in our balance sheet under short-term debt, which as of quarter end was around USD 8 million. And at the same time, there is a roughly equivalent amount recorded under current asset as well. So this short-term loan in BTC is led to us on day 1 and then which we typically size based on the scale of our Bitcoin mining production. For example, we might want to think about, okay, we'll do 1 month of production or 2 months of production. So that's the way we think about this. And then this loan in BTC is sold at spot price on day 1. So if in the coming months, if Bitcoin prices fall below that, then we'll choose to repay in the BTC that is mined out of our mining operations. So I hope that illustratively addresses your question with regards to the -- how we think about the sizing and the structure. And again, I would like to emphasize that we purely think of this as a risk management tool and the purpose is really just to reduce the sensitivity of our cash flow to the Bitcoin price ranges. And then with that, I'll pass it to Paul for the second and third question. Peng Yu: Sure, sure. Thank you. We wanted to give you the most current picture of where the AI business stands. Even though this development fall after June 30 cutoff, we are not reflected in this quarter's revenue and only a small amount of property-related costs have been capitalized in Q2. The amount is immaterial. We expect the related revenue to start showing up in our third quarter numbers, which we will report in the normal course. And that means we expect to begin recognizing AI-related revenue in the third quarter. The initial contribution will be modest, but it provides initial validation of the commercial viability of our AI infrastructure strategy and establishes an operating track record we can build on. Thank you. Operator: [Operator Instructions] Our next question today comes from Sid Rajeev with Fundamental Research Corp. Siddharth Rajeev: Should we expect Q3 mining revenue to stabilize at current levels or anticipate further hashrate reductions? Ming Yeung Tang: Sid, thank you for your question. In terms of the operational hashrate and the mining machines that we have on our balance sheet, in the third quarter, it would not change significantly -- it will not change significantly. But again, given the third quarter includes the summer months of July and August, whereby we may experience some regional power curtailment. Siddharth Rajeev: Got it. Maybe you could provide some color on roughly how much of the current hashrate is from S19 versus newer generation machines? Ming Yeung Tang: This percentage is increasing. In terms of the mix between the 19s and the 21s, I would say -- and this is purely the amount that is operational that is on rack and excluding -- let me think about how to address this. Excluding the part that is leased, the split is roughly a little bit above 1/3 in the 21 series. Siddharth Rajeev: Got it. Are you able to talk about your cash costs? Can you further cut costs? Because I see you did have cost reductions in the quarter. So how about Q3, how should we look at it? Ming Yeung Tang: Yes. Sid, and I think that is a great question. And the reason that in the second quarter, the cost continued to optimize. There were 2 reasons. One reason was that we were -- we continue to negotiate with our hosted sites because as you remember, most of our sites are externally hosted instead of our self-owned mining sites. Our own self-owned mining site is just a 50-megawatt site in the state of Georgia in LN. And the rest of our mining machines are hosted externally with third parties. So we continue to negotiate contracts with them. And a lot of these contracts have a power price reduction mechanism, whereby the power prices would decrease in an environment where Bitcoin prices are decreasing as well. So if we were to look at the cash cost on a month-by-month basis between each month of the second quarter, the cash cost was on a downward trend. So this is, in a way, is a price reduction mechanism to give us a little bit more downside protection. Siddharth Rajeev: Got it. If I may, one more question. This is slightly more long term. How much of your existing, say, mining infrastructure or power capacity could realistically be converted to AI infrastructure over the next 3 years? Ming Yeung Tang: We're starting in the U.S. at the moment. We're still more focused on our own 50-megawatt site right now, but we have started to install small test nodes in other sites. But these are sites that are not necessarily our own, but they could be with partner sites. Operator: And that does conclude our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks. Ming Yeung Tang: Any other remarks? Thank you very much for dialing for our conference call. Thank you. Operator: Thank you, sir. That does conclude our conference for today. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day. Before you buy stock in Cango, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cango wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. 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This article first appeared on GuruFocus. Total Revenue: $50.8 million for Q2 2026. Bitcoin Mining Revenue: $47.4 million, with 656 Bitcoins mined during the quarter. Average Cash Mining Cost: $73,313 per Bitcoin, down about 35% from Q1. All-in Mining Cost: $98,405 per Bitcoin. Cost of Revenue (excl. depreciation): $50.7 million, down from $99.6 million in Q1. Depreciation: $16.9 million, down from $29.4 million in Q1. General and Administrative Expenses: $8.4 million, including related party fees. Impairment Loss from Mining Machines: $42.9 million in Q2. Loss on Disposal of Mining Machines: $8.5 million in Q2. Loss from Changes in Fair Value of Crypto Assets: $4.1 million, compared with a loss of $151.8 million in Q1. Operating Loss: $80.6 million for the quarter. Net Loss from Continuing Operations: $81.6 million in Q2. Adjusted EBITDA (non-GAAP): Loss of $10.7 million. Cash and Cash Equivalents: $10.1 million as of June 30, compared with $7.2 million as of March 31. Bitcoin Holdings: 1,056 Bitcoins held in treasury as of June 30. Long-Term Debt: $31.2 million as of June 30, compared with $30.6 million as of March 31. Self-Mining Hash Rate: 19.84 exahashes per second as of June 30. Leased Hash Rate: 7.74 exahashes per second as of June 30. Combined Operating Hash Rate: 27.58 exahashes per second as of June 30. Warning! GuruFocus has detected 4 Warning Signs with CANG. Is CANG fairly valued? Test your thesis with our free DCF calculator. Release Date: September 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cango Inc (NYSE:CANG) reduced its average cash mining cost by 35% quarter-over-quarter to $73,313 per Bitcoin, improving operational efficiency. The company implemented a Bitcoin hedging program to manage price volatility, enhancing cash flow predictability without speculative intent. Cango Inc (NYSE:CANG) completed construction of its Georgia AI infrastructure site, supporting up to 3 megawatts, and signed its first customer contract, marking commercial monetization. The company shifted to a leasing model for some hash rate, reducing exposure to variable operating costs and improving cash flow profile. Cango Inc (NYSE:CANG) holds 1,056 Bitcoins in treasury and maintains a strong balance sheet with $10.1 million in cash, despite a challenging quarter. Cango Inc (NYSE:CANG) reported a significant net loss of $81.6 million in Q2 2026, driven by non-cash impairment and disposal losses totaling approximately $51 million. Total revenue decreased by about 50% sequentially to $50.8 million, reflecting deliberate hash rate reductions and capacity shifts. The company incurred a $42.9 million impairment loss and an $8.5 million loss on disposal of mining machines due to restructuring. Bitcoin production fell to 656 coins in Q2, down sequentially, as self-mining capacity was reduced and some capacity transitioned to leasing. AI infrastructure revenue is still minimal, with only a small customer contract signed, and the company faces uncertainty in scaling this new business. Q: Can management provide more color on the Bitcoin hedging program in terms of overall notional size, instrument structure, and duration? Additionally, could you clarify whether this is risk mitigating or it involves any directional positioning?A: Ming Yeung Tang (CFO): The hedging program is structured as a short-term loan denominated in BTC, reflected on the balance sheet under short-term debt (around $8 million as of quarter end). The loan is lent to us on day one and sized based on the scale of our Bitcoin mining production (e.g., one or two months of production). The BTC is sold at spot price on day one, and if Bitcoin prices fall below that level in the coming month, we choose to repay in BTC mined from our operations. We purely view this as a risk management tool to reduce the sensitivity of our cash flow to Bitcoin price ranges, not for speculative purposes. Q: Regarding the AI infrastructure progress you highlighted, such as the Georgia site completion and container deployment, what is the rationale for including them now? More importantly, could we incorporate this development as material included in our third quarter financial models?A: Peng Yu (CEO): We wanted to give you the most current picture of where the AI business stands. Even though these developments fall after June 30's cut-off and are not reflected in this quarter's revenue, only a small amount of property-related costs have been capitalized in Q2, which is immaterial. We expect to begin recognizing AI-related revenue in the third quarter. The initial contribution will be modest, but it provides initial validation of the commercial viability of our AI infrastructure strategy and establishes an operating track record we can build on. Q: Regarding the newly signed customer contracts, could you provide some visibility into the anticipated revenue contribution and timeline for top-line recognition?A: Peng Yu (CEO): Since the start of the third quarter, we have signed a customer contract and discussions with prospective customers are ongoing. This takes our AI business from technical validation into commercial monetization. Contracted revenue is still small, and we expect to begin recognizing related revenue in the third quarter. We plan to pursue both bare metal GPU hosting using our existing site and power infrastructure, as well as colocation to improve overall infrastructure utilization. Q: Should we expect Q3 mining revenue to stabilize at current levels or anticipate further hash rate reductions?A: Ming Yeung Tang (CFO): In terms of operational hash rate and the mining machines on our balance sheet, it would not change significantly in the third quarter. However, given that the third quarter includes the summer months of July and August, we may experience some regional power curtailment. Q: Could you provide some color on roughly how much of the current hash rate is from S19 versus newer generation machines?A: Ming Yeung Tang (CFO): The percentage of newer generation machines is increasing. In terms of the mix between the 19s and the 21s, excluding the part that is leased, the split is roughly a little bit above 1/3 in the 21 series. Q: Are you able to talk about your cash costs? Can you further cut costs? How should we look at Q3?A: Ming Yeung Tang (CFO): The cost optimization in Q2 was driven by two reasons. First, we continued to negotiate with our hosted sites, as most of our sites are externally hosted. Second, many contracts have a power price reduction mechanism whereby power prices decrease in an environment where Bitcoin prices are decreasing. Looking at the cash cost on a month-by-month basis during Q2, the cash cost was on a downward trend, providing downside protection. Q: How much of your existing mining infrastructure or power capacity could realistically be converted to AI infrastructure over the next three years?A: Ming Yeung Tang (CFO): We're starting in the US at the moment, still more focused on our own 50-megawatt site. We have started to install small test nodes in other sites, but these are not necessarily our own sites; they could be with partner sites. Q: What were the key drivers behind the significant reduction in total revenue and costs in Q2 2026?A: Ming Yeung Tang (CFO): Total revenue decreased by approximately 50% compared to Q1, primarily reflecting our proactive reduction in operational hash rate as we selectively phased out older, less efficient S19 series mining machines and temporarily transitioned some capacity to a hosted leasing model. While this adjustment reduced top-line mining revenue, it significantly lowered operating costs and improved our cash flow profile. Cost of revenue exclusive of depreciation was $50.7 million, down from $99.6 million in Q1, driven by lower electricity and hosting expenses. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management deliberately scaled back mining operations to prioritize economic returns over pure scale, resulting in a sequential revenue decline. The company transitioned a portion of its capacity to a leasing model, shifting direct operating costs and variable risk to lessees. Operational efficiency was improved by phasing out older S19 series mining machines in favor of newer, more efficient hardware. A new Bitcoin hedging program was implemented to mitigate price volatility and enhance the predictability of operating cash flows. The AI infrastructure business moved from technical validation to commercialization following the completion of the Georgia LN site and the signing of the first customer contract. Management is pursuing a dual-track AI strategy involving both bare-metal GPU hosting and colocation to maximize infrastructure utilization. Mining and AI are being managed as parallel businesses, with capital allocation focused on sites that offer the best marginal economics. AI-related revenue is expected to begin appearing in third-quarter results, though initial contributions are characterized as modest. Management anticipates mining hashrate will remain relatively stable in the third quarter, though regional power curtailment during summer months remains a variable. Future AI expansion includes evaluating new sites and potential self-build options beyond the current 50-megawatt Georgia facility. The company plans to continue using its BTC-denominated loan structure as a risk management tool to hedge future production. Strategic focus for the second half of 2026 remains on executing AI deployments and optimizing the mix between self-mining and leased hashrate. A net loss of $81.6 million was primarily driven by $51.4 million in non-cash impairment and disposal losses related to the mining machine fleet restructuring. The company recorded a $4.1 million loss from changes in the fair value of crypto assets, which was significantly mitigated by the new hedging program compared to the prior quarter. Average cash mining cost decreased by 5% sequentially to $73,313 per Bitcoin due to renegotiated hosting contracts with price-reduction mechanisms. As of June 30, the company held 1,056 Bitcoins and maintained a total liquidity position of approximately $23 million in cash and cryptocurrencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The program uses short-term BTC-denominated loans sized against 1-2 months of production, which are sold at spot prices on day one. Management emphasized this is strictly a risk management tool to reduce cash flow sensitivity to Bitcoin price swings, not for directional speculation. While Q2 results do not reflect AI progress, the Georgia site is now operational with GPUs arriving in batches. Revenue recognition will start in Q3, providing a commercial track record to support future site expansions. The current operational fleet mix is approximately one-third newer 21 series machines, with the remainder being older models. Costs are being optimized through hosting contracts that include power price reductions tied to downward movements in Bitcoin prices. The company is currently focused on its 50-megawatt Georgia site for AI but is testing small nodes at partner sites in Texas and the West Coast. Management is evaluating the feasibility of broader conversion or expansion across its power footprint over the next three years.

DALLAS, June 24, 2026 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced the results of its extraordinary general meeting of shareholders ("EGM") held on June 24, 2026. At the EGM, the Company's shareholders approved the following resolutions: An ordinary resolution that the authorized share capital of the Company, comprising both issued and unissued Class A ordinary shares of a par value of US$0.0001 each (the "Class A Ordinary Shares") and Class B ordinary shares of a par value of US$0.0001 each (the "Class B Ordinary Shares", and together with the Class A Ordinary Shares, the "Shares"), be consolidated (the "Share Consolidation") at a share consolidation ratio within a range of no consolidation to a maximum consolidation ratio of 10:1 and at such effective time as the board of directors of the Company (the "Board of Directors") may determine and execute in its sole discretion, within 15 days of the EGM, with such consolidated Shares having the same rights and being subject to the same restrictions (save as to par value) as the existing Shares of such class as set out in the Fifth Amended and Restated Memorandum and Articles of Association (as defined below). No fractional Shares shall be issued in connection with the Share Consolidation; in the event that a shareholder would otherwise be entitled to receive a fractional Share upon the Share Consolidation, the total number of Shares to be received by such shareholder shall be rounded down to the next whole Share and any fraction of a Share resulting from the Share Consolidation shall be cancelled and returned to the pool of authorized but unissued Shares in the capital of the Company without the payment of any consideration to the holder thereof. A special resolution that, subject to and immediately following the Share Consolidation being effected, the fifth amended and restated memorandum and articles of association of the Company (the "Fifth Amended and Restated Memorandum and Articles of Association"), substantially in the form attached as Annex A to the Proxy Statement furnished to the Securities and Exchange Commission (the "SEC") in a current report on Form 6-K on May 22, 2026, be adopted in substitution for and to the exclusion of the current amended and restated memorandum and articles of association of the Company in all respects, to reflect the Share Consolidation with effect from the effective date of the Share Consolidation. The Board of Directors has not yet determined whether to proceed with the Share Consolidation or, if it proceeds, the final consolidation ratio or effective date. The Company will make a further announcement once the Board of Directors has made such determinations. The full text of each resolution was included in the notice of the EGM and proxy statement, which was furnished to the SEC in a current report on Form 6-K on May 22, 2026. The full text of each resolution is also available on the Company's website: ir.cangoonline.com. About Cango Inc. Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span across North America, the Middle East, South America, and East Africa. Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com. For more information, please visit: www.cangoonline.com and follow us on: X and LinkedIn. 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. 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; 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/cango-inc-announces-results-of-extraordinary-general-meeting-302808922.html

Image source: The Motley Fool. Sunday, May 31, 2026 at 9 p.m. ET Chief Executive Officer — Peng Yu Chief Financial Officer — Ming Yeung Tang Operator Peng Yu: Good morning, everyone, and thank you for joining Cango's First Quarter 2026 Earnings Call. First, I will summarize our key financials and operational performance for the quarter. The first quarter of 2026 was characterized by industry-wide adjustments and our results reflect these macro headwinds alongside our ongoing efforts to manage our strategic transition. During Q1, we generated total revenue of approximately $102 million, primarily driven by revenue from our Bitcoin mining business. We reported a net loss from continuing operations of $261.1 million primarily due to noncash impairment charges on Bitcoin mining machines and loss from changes in fair value of receivable for Bitcoin collateral, both resulting from the decline in Bitcoin market price. By the end of the quarter, we held 1,025.7 Bitcoin, and we reduced our long-term debt to $30.6 million. As of March 31, 2026, Cango's total operational hash rate was 37.01 exahash per second, comprising 27.98 exahash per second of self-mining capacity and 9.02 exahash per second of hosted hash rate. This operational model prioritizes margin resilience over scale. In Q1, we mined 1,266 Bitcoin. Through disciplined cost management, our average cash cost per Bitcoin mined was $76,928 showing a 9% decrease from Q4 2025. These figures reflect our continued focus on profitability and operational efficiency as our business model evolves. Following this brief quarterly review, I'd like to provide an update on our operational activities during April and May, which offer additional context regarding our strategic direction. Regarding our mining business, our immediate priority is to streamline operations and carefully manage our resources at location. In April, we maintained our focus on cost optimization measures and operational efficiency. Our self-mining operations produced 230.04 Bitcoin in for the month when the average cash cost per core further decreased. This result stems primarily from our ongoing fleet upgrade beginning in March, we have been selling less efficient older generation S19 miners and selectively replacing them with more energy-efficient S21 series machines. As of the end of May, within our self-mining hash rate composition, the contribution ratio between S19 and S21 models is approximately 8:2. This operational mix supports our efforts to enhance our overall cost structure. Our objective is to manage our Mining segment toward an operational baseline capable of supporting improved cash flow resilience. Currently, some sites have transitioned to a revenue-sharing hosting arrangement, while this arrangement introduces depreciation expenses on our financial statements from a cash perspective, the hosting structure requires the counterparty to cover direct power costs and maintenance and operation expenses, allowing us to participate in revenue sharing while reducing our direct exposure to site level operating expenses. This structure helps mitigate operating risk and provides an operational buffer as we optimize our fleet. As our fleet adjustments proceed and stabilize, our strategic intent is to focus our operations primarily on disciplined self-mining while managing an orderly exit from less efficient hardware or higher-cost sites as of April 30, through a diversified footprint across 26 active mining sites globally. We operated a total hash rate of 31.58 exahashes per second, comprising 20.43 exahashes per second in self-mining capacity and 11.15 xahashes per second in hosted capacity. This current hash rate structure helps mitigate operational risk, supporting our ability to manage market volatility and execute our fleet upgrade strategy. Next, turning to our AI infrastructure initiatives. The objective of EcoHash is to leverage Cango's power access and mining operational expertise to develop a standardized compute solutions. We are continuing to advance our milestones. Pilot evaluation, site retrofitting and hardware installation at our Georgia location have progressed significantly and testing for modular high-density compute units is underway. Our objective with this modular design is to evaluate whether modular development can reduce cost and improve operational efficiency relative to traditional data center infrastructure. Operational model. This framework is intended to allow us to utilize existing operational assets to address market demand aiming to serve small and medium-sized enterprise efficiently. Based approach, our multistate strategy begins with an entry to GPU compute capacity leasing. Over the long term we plan to evaluate ecosystem integration through Ecolink management platform with the objective of developing an AI compute network. We have taken a disciplined approach to improve our capital structure and balance sheet position. Through active treasury and debt management, we have reduced our Bitcoin-backed loan balance to approximately at $30.6 million. Concurrently, our remaining Bitcoin reserves stands at 1,057.46 Bitcoin as of April 20, reflecting our strategic priority to lower leverage and reserve balance sheet stability. Our strategic alignment and partnerships support our ongoing operational focus. In Q1, our Chairman and our Board Director made an investment of $65 million in the company through entities they control. Furthermore, we established a strategic collaboration with DL group a Hong Kong listed company, which includes a $10 million convertible note and a strategic operation MoU which complements our commitment to AI infrastructure opportunities. As we look to the remainder of 2026, we have closely monitoring the evolving dynamics between global AI compute demand and power infrastructure capacity. Within this market environment, our operational priorities are twofold. First, to continue optimization of cost efficiency of our mining business; and second, to methodically advance the evaluation of EcoHash and continuous technical testing of our pilot project. We will continue to approach our strategy with a focus on capital discipline, aiming to leverage our existing infrastructure assets to support long-term stability and shareholder value. That concludes my remarks. I will now turn the call over to our CFO, Simon for a detailed financial review. Thank you. Ming Yeung Tang: Thanks, Paul. Hello, everyone, and welcome to our first quarter earnings call. Before I start to review our financials, please note that unless otherwise stated, all amounts discussed are in U.S. dollars. Total revenues in the first quarter was $102 million. Revenue during the quarter from the Bitcoin mining business was $98.4 million with a total of 1,200 and 66.1 Bitcoins mined during the period. The average cost to mine Bitcoin, excluding depreciation of mining machines, was $76,928 per Bitcoin with all-in cost of 99,747 per Bitcoin. Compared to the fourth quarter of 2025, total revenue decreased by approximately 43%. This decline primarily reflects our proactive reduction in operational hash rate as we began to phase out older and less-efficient S19 series mining machines and temporarily transitioned some capacity to a leasing model that Paul discussed just now. While this adjustment has reduced top line mining revenue, it has also contributed to lower operating costs and improved cash flow profile. And some of these efforts remain ongoing in the second quarter as we speak. Now let's move on to our cost and expenses. Cost of revenue, excluding depreciation in the first quarter was $99.6 million, down from $155.3 million in the fourth quarter, driven by lower electricity and hosting expenses following the hash rate reductions. Depreciation in the first quarter was $29.4 million. General and administrative expenses, including related parties totaled $7.2 million. There was an impairment loss from mining machines in the first quarter of $49 million and a loss on disposal of mining machines in the first quarter of $20.3 million. Loss from changes in fair value of receivable for Bitcoin collateral was $151.8 million compared to $171.4 million in the fourth quarter. This noncash loss was primarily driven by the decline in Bitcoin price during the quarter as we started off this quarter with over 7,500 Bitcoins. Operating loss for the quarter was $254.4 million with a net loss from continuing operations of $261.1 million. On a non-GAAP basis, adjusted EBITDA was a loss of $154.1 million, of which there was a $151.8 million impact from the loss from changes in fair value of receivable for Bitcoin collaterals. Moving on to our balance sheet. As of March 31, we had cash and cash equivalents of $7.2 million, down from $41.2 million at year-end, mainly due to debt repayments and operational activities. That said, our balance sheet also includes cryptocurrencies of $7.9 million as well as receivables for Bitcoin collaterals of $68.2 million. In terms of operational assets, we carried our mining machines at a net value of $130.8 million. On the liability side, we had $30.6 million in long-term debt, which is significantly lower than the $557.6 million recorded as of year-end. The substantial reduction in both the receivable for Bitcoin collaterals and the associated long-term debt reflects our proactive deleveraging efforts during the quarter. By selling a portion of our Bitcoin holdings and using the proceeds to repay related party loans, we have meaningfully strengthened the balance sheet and also reduced our interest expenses. This concludes our prepared remarks. Operator, we are now ready to take questions. Operator: [Operator Instructions] Your first question comes from Pingyue Wu from Citic Securities. Pingyue Wu: I'm Pingyue from Citic Securities. And my first question is the company's cash cost per core declined in the first quarter compared with the first quarter of last year, and management also mentioned further optimization in April. What were the main drivers behind the cost reduction? Is there still room for further cost improvements going forward? And also my second question is our management team mentioned that the 2026 strategy is efficiency over scale. And in April, total operating hash rate was 31.55 exahash per second, including 11.50 exahash per second of leased hash rate. Will the hash rate continues to decline over the next few months? Could you explain in more detail how the leasing model works and a specific impact on the financial statements? Peng Yu: Regarding your first question, the cost reduction was mainly driven by 2 factors. First, we proactively phased out part of our higher energy consumption S19 series mining machines and gradually replaced them with small energy-efficient S21 series models. Second, we continued to migrate hash rate to regions with lower power costs including developing next-generation miners in locations such as Paraguay and Oman. At the same time, we temporarily adopted a revenue-sharing model at certain higher-cost mining sites, which effectively reduced power costs. Looking ahead, we intend to leverage our ongoing fleet upgrades and as some of our hosting contracts expire, we will strive to optimize our hosting arrangements to lower power costs. Ming Yeung Tang: And I'll take your second question with regards to the hash rate, we're not spending a hard hash rate target and instead, we're really focusing on margin and cash flow KPIs for the mining business for now. We do -- and we are continuing to retire older S19 series machines in certain higher power cost sites. So during this period, our total hash rate may experience modest fluctuations in the short term. And at the same time, we are selectively deploying more energy efficient S21 machines. So this process has helped us reduce cash cost per point and improve the resilience of our mining fleet in general. And as for your question regarding our leasing model, we reiterate that it is a temporary arrangement, especially with some of the higher cost sites where the arrangement instead of paying for power cost on a consumption basis. The Bitcoin mines will go to the site owner who will share mining revenue with us based on the agreed ratios. And thereby, the power cost and maintenance and operation fees are born by the site owner. From a cash flow perspective, this leasing model ensures that we do not mine at a loss purely as a result of the higher cost. And this is our core strategy to protect -- in line with our core strategy to protect cash flow. And currently, the lead hash rate is mainly deployed in certain parts of America, but this may change once the relevant -- once the respective mining hosting contract expires. So we will enter into new contracts or alternatively, we may move the machine to alternative sites. Operator: [Operator Instructions] Your next question comes from Marco Zhang from Geelong Research. Yuecong Zhang: This is Marco from Geelong Research. I have 3 questions here. My first question is regarding your Bitcoin business. You sold 2,000 Bitcoin in Q1 and currently hold approximately 1,057 Bitcoins. Will the company continue to sell Bitcoin going forward? Has the company's long term holding strategy changed? Peng Yu: Our BTC treasury strategy has shifted from mine and hold to a more dynamic balanced approach. Given the current level of market volatility, we placed greater emphasis on liquidity and balance sheet strength. The BTC sale in Q1 was mainly used to reduce BTC-backed loans and the outstanding loan balance has now declined to approximately $30.6 million as of the end of the first quarter. Going forward, we will address flexibly based on market price, operational needs and debt levels, while we maintain a positive long-term view on Bitcoin, our treasury decisions will align with our overall capital allocation strategy. Yuecong Zhang: Got it. So we understand that the company's AI business will be carried out through EcoHash. Could you share an update on the [ LN ] pilot mentioned previously. Are there any specific commercialization milestones for 2026? And when could it start contributing revenue? Ming Yeung Tang: Sure. So the [ LN ] site is currently our only fully self-owned infrastructure assets with 50 megawatts of grid connected capacity, and the power contract is in place till 2029. And in terms of the progress of the construction and renovation, that in itself is now close to completion, and we have placed orders for standardized compute containers, which are arriving at phases and will be ready for installation and testing very soon. We plan to activate a portion of the power capacity at this site for this purpose. And at the same time, this site is expected to serve as a real-world production environment showroom. What that means is that the containers are of different specifications, and we expect to evaluate and showcase the different specifications. There are air cooled containers, liquid cooled as well as hybrid containers for different environmental conditions. And this allows us to assess the conversion, deployment and operating performance of the compute nodes in an actual set environment. So this project in itself is a proof-of-concept stepping stone towards scaled commercialization initiatives. And once this model is ready and proven, we'll evaluate opportunities to replicate this model at other suitable sites as well, whether it be sites for our wholesale partners. And from the perspective of the overall AI project build-out, we have not set any specific revenue target at this point, but revenue generation will start in the second half of this year. Our top priority at the moment is to complete the technical validation of this pilot, and we're in the process of ordering a small number of servers at the moment. If the validation results meet expectations, we will be begin to work with partners to deploy more compute nodes. AI compute services take time to move from pilot stage to scale, but we will update the market in a timely manner once there's substantial progress. Thank you. Yuecong Zhang: Got it. And how about the CapEx or how much CapEx will be required for the EcoHash pilot and future expansion? And how do you plan to fund it? Ming Yeung Tang: We're actually doing in phases. So the thing about our business model on this side that is modularized. So in terms of the containers, we have the flexibility of doing it per container. So in terms of the CapEx, we're being very prudent at the moment. And in the first is the model validation phase, we will mainly use our own capital right now. So we've deployed our own capital for the site renovation. So the Georgia pilot leverages the existing site infrastructure and the power, right? And the retrofit cost is relatively limited. The bulk of the project CapEx itself will be for the purchases of the servers, which we're in the process of doing right now. In the future, we do hope that we'll be able to use other types of financing, whether it's GPU-backed financing or using a financial lease model rather than just purely rely on our own capital. And obviously, we are open to and hope to establish other strategic partnerships as well so that we can do it together with other partners. Operator: There are no further questions at this time. I'll now hand the conference back to management for any closing remarks. Peng Yu: No. We don't have any closing remarks. Thanks a lot. Operator: Thank you. That does conclude our conference for today. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Cango, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cango wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 2, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cango (CANG) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: June 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cango Inc (NYSE:CANG) generated total revenue of approximately $102 million in Q1 2026, primarily driven by its Bitcoin mining business. The company reduced its long-term debt to $30.6 million by the end of the quarter. Cango Inc (NYSE:CANG) achieved a 9% decrease in the average cash cost per Bitcoin mined compared to Q4 2025. The company is focusing on cost optimization and operational efficiency, including upgrading to more energy-efficient mining machines. Cango Inc (NYSE:CANG) has established strategic collaborations, including a $10 million convertible note with CL Group, to support AI infrastructure opportunities. Cango Inc (NYSE:CANG) reported a net loss from continuing operations of $261.1 million, primarily due to non-cash impairment charges. The company experienced a 43% decline in total revenue compared to Q4 2025, reflecting a reduction in operational hash rates. There was an impairment loss for mining machines of $49 million and a loss on disposal of mining machines of $20.3 million in Q1. The company faced a non-cash loss of $151.8 million from changes in the fair value of receivables for Bitcoin collateral. Cango Inc (NYSE:CANG) had cash and cash equivalents of only $7.2 million as of March 31, 2026, down from $41.2 million at year-end. Warning! GuruFocus has detected 5 Warning Signs with CANG. Is CANG fairly valued? Test your thesis with our free DCF calculator. Q: The company's cash cost per coin declined in the first quarter compared with the first quarter of last year. What were the main drivers behind the cost reduction? Is there still room for further cost improvement going forward? A: The cost reduction was mainly driven by phasing out higher energy consumption S19 series mining machines and replacing them with more energy-efficient S21 series models. Additionally, migrating to regions with lower power costs and adopting a revenue-sharing model at certain sites reduced power costs. Further cost improvements are expected through ongoing fleet upgrades and optimizing hosting arrangements. (Paul Yu, CEO) Q: Will the company continue to sell Bitcoin going forward? Has the company's long-term holding strategy changed? A: The BTC treasury strategy has shifted to a more dynamic, balanced approach, emphasizing liquidity and balance sheet strength. The BTC sale in Q1 was used to reduce BTC-backed loans. Future sales will be adjusted based on market price, operational needs, and debt levels, aligning with the overall capital allocation strategy. (Paul Yu, CEO) Q: Could you share an update on the EcoHash pilot mentioned previously? Are there any specific commercialization milestones for 2026, and when could it start contributing revenue? A: The LN site is close to completion, with standardized compute containers arriving for installation and testing. Revenue generation is expected to start in the second half of the year, with the focus on completing technical validation. Once validated, opportunities to replicate the model at other sites will be evaluated. (Simon, CFO) Q: How much CapEx will be required for the EcoHash pilot and future expansion, and how do you plan to fund it? A: The CapEx is being managed prudently in phases, leveraging existing site infrastructure. The bulk of the project CapEx will be for server purchases. Future funding may involve financing or financial lease models, and strategic partnerships are being considered. (Simon, CFO) Q: Will the hash rate continue to decline over the next few months, and how does the leasing model work? A: The hash rate may experience fluctuations as older machines are retired and more efficient ones are deployed. The leasing model involves site owners covering power costs and sharing mining revenue, ensuring no mining at a loss due to high costs. This model is temporary and mainly deployed in certain parts of America. (Simon, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Cango Inc. Sponsored ADR? Here are five stocks we like better. Cango posted first-quarter 2026 revenue of about $102 million, with Bitcoin mining contributing $98.4 million. The company also reported a steep net loss from continuing operations of $261.1 million, largely due to non-cash impairment and fair value losses tied to Bitcoin price declines. Management is prioritizing margin and cash flow over hash rate growth as it reduces older, less efficient mining machines and shifts capacity to lower-cost or temporary revenue-sharing arrangements. Cango’s operational hash rate fell to 37.01 EH/s at quarter-end, and the company said it has no hard hash-rate target. Cango significantly deleveraged its balance sheet and is shifting its Bitcoin strategy, ending the quarter with 1,025.7 Bitcoin and cutting long-term debt to $30.6 million from $557.6 million at year-end. The company said it is moving from a “mine and hold” approach toward a more liquidity-focused treasury strategy while also advancing its EcoHash AI infrastructure pilot. Cango (NYSE:CANG) reported first-quarter 2026 revenue of approximately $102 million, driven primarily by its Bitcoin mining business, as management said the company is prioritizing cost discipline and cash flow resilience over hash rate scale during a period of industry adjustment. Chief Executive Officer Peng Yu said the quarter reflected “macro headwinds” and the company’s ongoing strategic transition. Cango reported a net loss from continuing operations of $261.1 million, which management attributed mainly to non-cash impairment charges on Bitcoin mining machines and losses from changes in the fair value of receivables for Bitcoin collateral tied to a decline in Bitcoin’s market price. → Costco’s Strong Quarter Still Leaves Investors With a Valuation Problem By the end of the quarter, Cango held 1,025.7 Bitcoin and reduced long-term debt to $30.6 million, down sharply from $557.6 million at year-end, according to Chief Financial Officer Simon Ming Yeung Tang. Cango generated $98.4 million in revenue from Bitcoin mining during the first quarter, mining 1,266.1 Bitcoin. Tang said total revenue declined about 43% from the fourth quarter of 2025, primarily because the company proactively reduced its operational hash rate as it began phasing out older and less efficient S19 series mining machines and temporarily shifted some capacity into a leasing model. → These 3 Software Stocks Are Buying Back Shares Hand Over Fist As of March 31, Cango’s total operational hash rate was 37.01 exahashes per second, including 27.98 exahashes per second of self-mining capacity and 9.02 exahashes per second of hosted hash rate. Peng said the company’s current operational model “prioritizes margin resilience over scale.” The company’s average cash cost to mine one Bitcoin, excluding depreciation, was $76,928 in the first quarter, down 9% from the fourth quarter. Tang said the all-in cost was $99,747 per Bitcoin. Cost of revenue, excluding depreciation, fell to $99.6 million from $155.3 million in the fourth quarter, driven by lower electricity and hosting expenses following hash rate reductions. → Gap Inc. Cuts Sales Outlook After Q1 Miss, Shares Drop 17% Peng said Cango’s cost reductions were driven by the retirement of higher-energy-consumption S19 mining machines and the selective deployment of more efficient S21 series machines. He also cited migration of hash rate to regions with lower power costs, including locations such as Paraguay and Oman, and the use of temporary revenue-sharing arrangements at certain higher-cost mining sites. As of the end of May, Peng said the company’s self-mining hash rate composition was approximately 80% S19 models and 20% S21 models. He said Cango is seeking to manage the mining segment toward an operational baseline that can support stronger cash flow resilience. In April, Cango’s self-mining operations produced 230.04 Bitcoin, and Peng said the average cash cost per coin decreased further. As of April 30, the company operated a total hash rate of 31.58 exahashes per second across 26 active mining sites globally, comprising 20.43 exahashes per second in self-mining capacity and 11.15 exahashes per second in hosted capacity. In response to an analyst question, Tang said Cango is not setting a hard hash rate target and is instead focusing on margin and cash flow metrics. He said total hash rate may experience modest short-term fluctuations as the company continues retiring older machines at higher-cost sites while selectively deploying S21 equipment. Management described the leasing or revenue-sharing model as a temporary arrangement, especially at some higher-cost mining sites. Under the structure, Tang said Bitcoin mined goes to the site owner, which then shares mining revenue with Cango based on agreed ratios. The site owner bears power, maintenance and operation costs. “From a cash flow perspective, this leasing model ensures that we do not mine at a loss purely as a result of the higher cost,” Tang said. He added that the leased hash rate is mainly deployed in certain parts of America and may change as hosting contracts expire, new contracts are signed or machines are moved to alternative sites. Tang said Cango’s cash and cash equivalents were $7.2 million as of March 31, down from $41.2 million at year-end, mainly because of debt repayments and operational activities. The balance sheet also included cryptocurrencies of $7.9 million and receivables for Bitcoin collateral of $68.2 million. Mining machines were carried at a net value of $130.8 million. The company recorded depreciation of $29.4 million, general and administrative expenses of $7.2 million, an impairment loss on mining machines of $49 million and a $20.3 million loss on disposal of mining machines. The loss from changes in fair value of receivables for Bitcoin collateral was $151.8 million, compared with $171.4 million in the fourth quarter. Tang said the non-cash loss was primarily driven by Bitcoin’s price decline during the quarter. Operating loss was $254.4 million, and adjusted EBITDA was a loss of $154.1 million, including a $151.8 million impact from the fair value loss on Bitcoin collateral receivables. Asked about Bitcoin holdings, Tang said Cango’s treasury strategy has shifted from “mine and hold” to a more dynamic and balanced approach, with greater emphasis on liquidity and balance sheet strength. He said Bitcoin sales in the first quarter were mainly used to reduce Bitcoin-backed loans. As of April 20, Peng said Cango’s remaining Bitcoin reserves stood at 1,057.46 Bitcoin. Cango also provided updates on its AI infrastructure initiative, EcoHash, which Peng said is intended to leverage the company’s power access and mining operational expertise to develop standardized compute solutions. He said pilot evaluation, site retrofitting and hardware installation at the company’s Georgia location had progressed significantly, with testing underway for modular high-density compute units. Tang said the Allen site is Cango’s only fully self-owned infrastructure asset, with 50 megawatts of grid-connected capacity and a power contract in place through 2029. Construction and renovation are close to completion, and the company has placed orders for standardized compute containers that are arriving in phases for installation and testing. The site is expected to serve as a real-world production environment and showroom for air-cooled, liquid-cooled and hybrid containers under different environmental conditions, Tang said. He added that Cango has not set a specific revenue target for the AI project, but revenue generation is expected to begin in the second half of 2026. The company’s immediate priority is completing technical validation of the pilot before working with partners to deploy additional compute nodes. On funding, Tang said Cango is taking a phased approach. The company has used its own capital for site renovation, while the bulk of future project capital expenditures would be for server purchases. He said Cango is open to other financing structures, including GPU-backed financing, financial leasing models and strategic partnerships. Peng said Cango’s 2026 priorities are to continue improving the cost efficiency of its mining business and to methodically advance the evaluation and technical testing of EcoHash. Cango Inc (“Cango”) is a leading smart automotive transaction service provider in China, headquartered in Shanghai. The company operates an online‐to‐offline platform that integrates vehicle sourcing, financing, distribution and insurance, offering a comprehensive ecosystem for automakers, dealers and consumers. Leveraging big data analytics and cloud computing, Cango connects buyers and sellers through its proprietary digital infrastructure, facilitating transparent and efficient transactions across the automotive value chain. Cango's core offerings include auto financing solutions for new and used vehicles, extended consumer loans and wealth management products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cango Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

This article first appeared on GuruFocus. Revenue: $20.7 million in Q1 2026, up 52% year-over-year. Technology Financing Fees: $15 million, up 49% year-over-year. Technology Platform Fees: $5.7 million, up 62% year-over-year. Net Fee Margin: Increased by 21 basis points year-over-year. Total Operating Expense: $25 million in Q1, up 102% year-over-year. GAAP Operating Income: $6.6 million, with an operating margin of 32%. Non-GAAP Operating Income: $11.2 million, with a non-GAAP operating margin of 54%. Net Income: $2.7 million in Q1 2026, compared to $1.5 million in Q1 2025. Adjusted EBITDA: $13.3 million, with an adjusted EBITDA margin of 64%. Total Value of Loans: $1.7 billion as of March 2026, down 3% year-over-year. Hash Rate Loans: Financed approximately 34.2 exahash of hash rate capacity as of March 31, 2026. Loan Repayment: Cango Inc. repaid approximately $530 million of its outstanding loan balance. Operating Expense Excluding Unrealized Gains: $20.4 million. Funding Costs: $10.4 million, 79% of technology financing fee on supply chain loans. Unrealized Fair Value Gains: $12.9 million on XAuT holdings. Standalone Revenue for Antalpha Prime: $20.7 million, up 52% year-over-year. Standalone Adjusted EBITDA for Antalpha Prime: $4.4 million, a 77% improvement from Q1 last year. Aurelion's NAV: $116.4 million as of March 31, 2026. Q2 2026 Revenue Outlook: Expected between $11 million and $13 million. Warning! GuruFocus has detected 6 Warning Signs with ANTA. Is ANTA fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Antalpha Platform Holding Co (NASDAQ:ANTA) achieved a 52% year-over-year revenue growth in Q1 2026. The company maintained a record of zero principal loss, showcasing strong risk management practices. Antalpha successfully launched two strategic growth initiatives: the beta launch of their Web3 AI agent and the transition of tokenized gold holdings into yield-generating deployment. TVL per client increased by 36% year-over-year, indicating growth in average loan size and deepening client relationships. The company reported a non-GAAP operating income of $11.2 million, representing a non-GAAP operating margin of 54%. Antalpha's loan book saw a one-time reduction due to substantial repayments from large borrowers, notably Cango Inc. Bitcoin prices declined approximately 40% from their October 2025 peak, creating a cautious environment for new loan deployment. Total operating expenses, excluding unrealized gains of crypto assets, increased by 102% year-over-year. The supply chain loan net fee margin saw a modest year-over-year decrease due to a higher proportion of lower-rate hashrate loans. The company expects a year-over-year revenue decline of 7% to 22% in Q2 2026, excluding the impact of the Cango repayment. Q: Can you help us unpack the Web3 AI agent, Nina, and explain its role in your AI strategy? Is it more of a user acquisition tool or a foundational piece for future AI revenue streams? A: Nina is designed to bridge the gap in user experience by providing a natural language interface to access Web3 information and services. It aims to lower the barrier for Web3 participation and support broader adoption. Currently, revenue generation is not the priority; instead, the focus is on understanding user needs and accumulating a meaningful user base. (Paul Liang, CFO) Q: What differentiates Nina from other Web3 AI agents? A: Unlike generic AI agents, Nina is specifically designed for Web3 users, providing a simpler and more integrated experience. Antalpha's deep industry knowledge and operational experience give it a strong foundation to build a differentiated AI product for Web3. (Paul Liang, CFO) Q: How are you thinking about the opportunity for Antalpha if digital asset rules become clearer with the Clarity Act? A: While the Clarity Act may not significantly impact Antalpha directly, clearer regulations will benefit the broader ecosystem, potentially aiding Antalpha's growth indirectly. (Paul Liang, CFO) Q: Did the entire $500 million Cango loan get paid off in the first quarter, or was some of it in the early second quarter? A: Most of the Cango loan repayment occurred in the first quarter, with only a small portion repaid in April, the second quarter. (Paul Liang, CFO) Q: Can you provide more details on how the XAuT tokens are generating yields and the expected yield? A: The XAuT tokens are involved in conservative investment opportunities, with an expected yield of approximately 1% to 2%. This marks a step forward from merely holding XAuT in the past. (Paul Liang, CFO) Q: Do you expect any other significant loan repayments besides Cango? A: Currently, the loan balance is around $30 million, and no significant repayments are anticipated. However, any future repayments would not have a significant impact. (Paul Liang, CFO) Q: Could you elaborate on the initiative in the Asia Pacific regarding blockchain operators? A: The question was not fully addressed, but it likely pertains to the Web3 AI agent initiative, which is a significant focus for Antalpha in the region. (Paul Liang, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, August 29, 2024 at 9 p.m. ET Chief Executive Officer — Jiayuan Lin Chief Financial Officer — Yongyi Zhang Jiayuan Lin: Hello everyone and welcome to Cango's second quarter 2024 earnings call. In the second quarter of 2024, the automotive market remains sluggish, presenting significant challenges for the industry. According to the China Association of Automobile Manufacturers, vehicle production and sales in June reached 2.500 million and 2.552 million units, respectively, reflecting a year-on-year decline of 2.1% and 2.7%, respectively. Passenger vehicle sales in June fell by 2.3% year-on-year. Although sales of new energy vehicles continue to outpace the market, their growth has not been sufficient to alter the industry's overall downward trajectory. In response to these challenges, we continue to implement strict cost control and risk management strategies, reinforcing our financial stability through disciplined expense management and cost efficiency measures. Meanwhile, we maintain meticulous oversight for current assets and liabilities, closely monitoring our risk exposure. As of June 30, our total outstanding loan balance stood at approximately RMB6.2 billion with M1+ at 2.93% and M3+ at 1.57%. Our credit risk exposure has been decreased to a low level with only RMB2.7 billion of outstanding balance of loans where the company bears credit risks have not been provided with full bad debt allowance, or full risk assurance liabilities. As the new car market grows [ph], we are increasingly recognizing the used car markets immense potential opportunities. As such, we have further streamlined our business processes, enhanced service quality, and strengthened the customer experience. Over the past quarter, we focused on enhancing the competitiveness of Cango U-car by ensuring a consistent supply of high-quality vehicles, optimizing dealer experience, I mean, optimizing dealer service experiences and supply chain management, and improving the convenience and security of cross-regional deliveries, which drove steady business growth. By the end of the second quarter, our Cango U-car app has accumulated over 130,000 page views. During the quarter, we facilitated the transaction of 266 vehicles and successfully auctioned 124 vehicles across our platform. Meanwhile, we identified and on boarded new partners with a strong reputation and abundance vehicle inventories to ensure a diverse range of listings on Cango U-car. To enhance operational efficiency, we implemented rigorous management practices, refined key processes such as vehicle listing, transaction facilitation and customer service. These efforts have increased resource utilization efficiency and improved overall operational effectiveness. We also established strategic partnerships with numerous major used car markets nationwide in the second quarter enabling real-time synchronization of their vehicle listings with Cango U-car to better meet users' specific demands. Currently, Cango U-car holds over 260,000 vehicle listings. By integrating extensive offline vehicle inventory, we have effectively enhanced user engagement on the Cango U-car app. We have further enriched our user experience by establishing exclusive member communities through private [indiscernible] management, regularly providing members with benefits and event updates to boost user engagement and loyalty. We have also established a set of refined operational processes and management guidelines focused on safeguarding seller dealers rights. This includes implementing streamlined transaction rules and risk prevention mechanisms as well as providing comprehensive training and support, all of which are designed to help seller dealers improve their operational efficiency. Next, I would like to highlight some key advancements that Cango has made in the area of cross border used car transactions. Since China began allowing the export of used vehicles in 2019, export volumes have surged over tenfold, with a significant increase in the average value of exported vehicles. Supportive guidelines and favorable policies from government departments and authorities have fostered the growth of the used car export sector. We are optimistic about the promising prospects in the export market for used vehicles, particularly those in the NEV segment. Since its launch in March 2024, our international used car platform, AutoCango.com, has quickly gained traction among global audiences. To date, it has attracted over 180,000 visits with more than 20,000 registered users across 207 countries and regions worldwide. Autocango.com hosts over 85,000 high-quality used car SKUs offering more than 60,000 different models. In the second quarter, we significantly expanded Autocango.com's market coverage as well as its range of products and services offerings. Under our traffic-first strategy, Cango has been focusing on establishing a primary traffic gateway connecting China's used car 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 used car inventories and we aim to position this website as the premier gateway for exporting Chinese used cars. Moving forward, Cango will continue to deepen our partnership with overseas markets, further refining Autocango's functionality and services to better serve car users both at home and abroad. Next, I will turn the call over to our Chief Financial Officer, Michael Zhang, for a review of the company's financial performance. Yongyi Zhang: Thanks, Jiayuan, and hello, everyone, and welcome to our second quarter 2024 earnings call. Before I started to review our financials, please note that unless otherwise stated, all numbers are in the RMB terms and all percentage comparisons are on a year-over-year basis. Total revenue in the second quarter of 2024 was RMB45.1 million compared with RMB675.4 million in the same period 2023. Guarantee income, which represented the fee income earned on a non-contingent aspect of a guarantee, was RMB20.9 million in the second quarter of 2024. This was presented separated from the contingent aspect of a guarantee in pursuit to the adoption of ASC 326 since January 1, 2023. Now let's move on to our cost and expenses during the quarter. Cost of revenue in the second quarter decreased to RMB26.5 million from RMB615.8 million in the same period 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 and marketing expenses in the second quarter decreased to RMB4 million from RMB12.2 million in the same period of 2023. General and administrative expenses in the second quarter were RMB39.2 million compared with RMB36.8 million in the same period of 2023. Research and development expenses in the second quarter of 2024, decreased to RMB1.7 million from RMB7.7 million in the same period of 2023. Net gain on contingent risk assurance liability in the second quarter was RMB10.3 million compared with a net loss of RMB1.6 million in the second period of 2023. Net recovery on provision for credit losses in the second quarter of 2024 was RMB33 million compared with a net loss of RMB10.2 million in the same period of 2023. We recorded $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 RMB86 million. Non-GAAP adjusted net income in the second quarter of 2024 was RMB90.7 million. On a per share basis, basic and diluted net income per ADS in the second quarter of 2024 were RMB0.83 and RMB0.76, respectively. And non-GAAP adjusted basic and diluted net income per ADS in the same period were RMB0.87 and RMB0.8, respectively. Move on -- moving on to our balance sheet, as of June 30, 2024, the company had cash and cash equivalents of RMB949.5 million compared with RMB1.2 billion as of March 31, 2024. As of June 30, 2024, the company had short-term investment of RMB2.7 billion, compared with RMB2.3 billion as of March 31, 2024. Looking ahead to the third quarter of 2024, we are now predicting our total revenue to be between RMB20 million and RMB25 million. Please note that this forecast reflects our current preliminary views on the market and operational conditions, which are subject to change. This concludes our prepared remarks. Operators, we are now ready to take questions. Q - Unidentified Analyst: Thank you very much. I'm [indiscernible] from CITIC Securities. I have two questions on used car market development. So my first question is how's your strategic partnership with major used car markets help improve your market position? And what about the contribution by these partnerships to your financial performance? Jiayuan Lin: Thank you for your questions. So by collaborating with major used 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. So our extensive offerings comprehensively address our clients' evolving needs, increasing their stickiness on our platform. And as our vehicle inventory grows and market -- the coverage expands, our transaction volume has naturally increased. This higher volume not only creates economies of scale, reducing unit costs, but also strengthens our bargaining power. This enhanced position has enabled us to negotiate more favorable terms with suppliers and customers alike, further improving our profit margins. Thank you very much. That's for your first question. Unidentified Analyst: Thank you. And my second question is that the Chinese government has actually published a lot of favorable policies to support the development of used car market. So what about the challenges that your company faces in promoting the used car cross-border transactions? Jiayuan Lin: Thank you for your question. So, for the challenges, first of all, the cross border transactions come -- usually come with relatively high logistics costs, including expenses for transportation, for insurance, and also for warehousing. And to better control these costs, we have partnered with third-party companies who have established and well established the cross border logistics capabilities. [Technical difficulty], we will continue to monitor policy changes and develop flexible strategies to adapt to these changes. Also, regulations and standards for used vehicles vary across countries, including safety, emissions and quality requirements. To address this, we will ensure that all vehicles traded meet the standards of the target market. In addition, used car transactions very often involve a relatively long transaction cycle due to their unique market characteristics, including but not limited to vehicle condition assessment, selection by buyers, multiple rounds of price negotiations, and necessary legal and financial reviews. Buyers typically need more time to look into 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 used vehicle transactions. Thank you. That's for your second question. Unidentified Analyst: Thank you very much. No more questions from me. Operator: The next question comes from Emerson Zhou [ph] with Goldman Sachs. Please go ahead. Unidentified Analyst: Thank you. I have two questions. The first question is on finance. So I noticed that the company has decreased your revenue guidance. So will you continue to do that in the future? And the second question is how will the management balance your long-term strategy against your short-term performance pressure? Jiayuan Lin: Okay. On your first question on guidance, that of revenue, we are strategically [indiscernible] impact our existing business, we have reallocated the company's resources, optimize 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 development from a strategic perspective while leveraging our unique business model to drive ongoing cost reduction and efficiency improvements. We are confident that these adjustments and refinements will enable us to respond more agilely to market changes and deliver greater value to our shareholders. On your second question, firstly 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 continual communication to ensure all stakeholders have a clear understanding of the company's strategy and direction. In the short term, we will focus on enhancing execution, efficiency, controlling costs and driving revenue growth to ensure robust financial performance. Secondly, we have broken down our goals into different phases and also made flexible adjustments. So we have established a very clear objectives and targets for different phases that support both short-term 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. Thank you. Operator: And that concludes the question-and-answer session. Thank you once again for joining Cango's second quarter 2024 earnings conference call today. Have a great day. Jiayuan Lin: Thank you all for your participation. Thank you. Before you buy stock in Cango, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cango wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $536,003!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,248!* Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cango (CANG) Q2 2024 Earnings Call Transcript was originally published by The Motley Fool