Cango Inc. Reports Second Quarter 2025 Unaudited Financial Results
HONG KONG, Sept. 4, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its unaudited financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial and Operational Highlights
-- As of June 30, 2025, the company's total mining capacity reached 50 EH/s, primarily driven by the acquisition of 18 EH/s in June 2025. Furthermore, in May, Cango successfully completed the divestiture of its China-based assets for US$352 million, generating substantial cash proceeds and providing ample liquidity to support ongoing strategic initiatives. -- Total revenues were RMB1.0 billion (US$139.8 million) in the second quarter of 2025, with the Bitcoin mining business generating revenue of RMB 989.4 million (US$138.1 million). -- Adjusted EBITDA was RMB710.1 million (US$99.1 million) in the second quarter of 2025. -- A total of 1,404.4 Bitcoins were mined during the second quarter of 2025. Average cost to mine, excluding depreciation of mining machines, was US$83,091 per Bitcoin, with all-in costs of US$98,636 per Bitcoin. As of the end of June 2025, the Company had mined 3,879.2 Bitcoins since entering the Bitcoin mining industry. -- The net loss for the period was mainly attributable to the one-off loss on discontinued operations and the non-cash impairment loss from mining equipment contracted last November and settled via equity in June of this year--triggered by the significant appreciation in Cango's share price between signing and delivery. These charges are both tied to the Company's strategic steps rather than operational underperformance. Excluding the impairment and the one-off loss from discontinued operations, adjusted EBITDA stood at RMB710.1 million (US$99.1 million) in the second quarter of 2025, demonstrating the underlying strength and profitability of our core Bitcoin mining business.
Mr. Paul Yu, Chief Executive Officer of Cango, said, "The second quarter of 2025 marks a significant milestone as we report our first full quarter following our strategic transformation. In just nine months, we have successfully established ourselves as one of the largest Bitcoin miners in the world with a strong foundation to scale our operations going forward. This rapid growth is being fueled by our asset-light strategy, which enables us to acquire plug-and-play mining rigs with minimal upfront capital, allowing us to scale more quickly and cost-effectively than vertically integrated competitors. While this approach incurs relatively higher cash costs per Bitcoin, our substantially lower depreciation expenses keep all-in costs competitive, ensuring strong capital efficiency, resilience through market cycles, and a geographically diversified footprint that mitigates risks and sustains an industry-leading performance."
"Our recent acquisition of 18 EH/s increased our total mining capacity to 50 EH/s by quarter-end, contributing to a 44% increase in Bitcoin production in July to 650.5 Bitcoins compared to June. This growth highlights the significant impact of our expanded operations and provides a strong foundation for further scaling through both organic initiatives and strategic acquisitions, while safeguarding and growing our Bitcoin treasury. Complementing this, our early August acquisition of a 50 MW mining facility in the U.S. state of Georgia represents a pivotal step as we begin building out a robust portfolio of Bitcoin mining and energy infrastructure. This move enhances our energy security, significantly lowers power costs, and will provide us with the operational expertise needed for future high-performance computing (HPC) and energy infrastructure initiatives."
Mr. Michael Zhang, Chief Financial Officer of Cango, stated, "We generated total revenue of RMB1.0 billion this quarter, demonstrating the strong underlying performance of our core Bitcoin mining business. Excluding non-cash-impairment item and the one-off loss from discontinued operations, adjusted EBITDA reached RMB710.1 million, compared to RMB5.4 million in the same period last year. This remarkable improvement underscores the robust progress of our business transformation and the tangible positive impact on our operations. Supported by this robust foundation, we are well-positioned to expand our Bitcoin mining business and drive the development of our energy and HPC capabilities going forward."
Second Quarter 2025 Financial Results from Continuing Operations
REVENUES
Total revenues were RMB1.0 billion (US$139.8 million) in the second quarter 2025. Revenue from the Bitcoin mining business was RMB 989.4 million (US$138.1 million), with a total of 1,404.4 Bitcoins mined in the second quarter of 2025. Revenue from Automobile trading income was RMB12.4 million (US$1.7 million) in the second quarter of 2025.
OPERATING COSTS AND EXPENSES
Total operating costs and expenses in the second quarter of 2025 were RMB2.3 billion (US$320.3 million). These costs were primarily associated with our Bitcoin mining business.
-- Cost of revenue (exclusive of depreciation and amortization shown below) in the second quarter of 2025 was RMB836.9 million (US$116.8 million). -- Cost of revenue (depreciation and amortization) in the second quarter of 2025 was RMB156.4 million (US$21.8 million). -- General and administrative expenses in the second quarter of 2025 were RMB21.7 million (US$3.0 million), compared with RMB13.0 million in the same period of 2024. -- Impairment loss from mining machines in the second quarter of 2025 was RMB1.8 billion (US$256.9million). This non-cash impairment loss primarily resulted from the pricing of the 18 EH/s of mining machines acquired through a share-settled transaction entered in November 2024. By the time the mining machines were delivered in June 2025, the Company's share price had nearly doubled, which triggered a non-cash accounting adjustment in accordance with applicable accounting standards. -- The loss from discontinued operations in the second quarter of 2025 was RMB591.6 million (US$82.6 million) and there were income tax expenses of RMB233.9 million (US$32.6 million) being recognized due to the PRC withholding tax on the indirect transfer of the Company's PRC assets. These loss and expenses resulted from the divestiture of the Company's China-based business.
LOSS FROM OPERATIONS
Loss from operations in the second quarter of 2025 was RMB1.3 billion (US$180.4 million) compared with RMB13.0 million in the same period of 2024.
NET LOSS
Net loss in the second quarter of 2025 was RMB2.1 billion (US$295.4 million) compared with net income of RMB86.0 million in the same period of 2024.
ADJUSTED EBITDA
Adjusted EBITDA in the second quarter of 2025 was RMB710.1 million (US$99.1 million) compared with RMB5.4 million in the same period of 2024.
BALANCE SHEET
As of June 30, 2025, the Company had cash and cash equivalents of RMB843.8 million (US$117.8 million) compared with RMB660.1 million as of December 31, 2024.
Roadmap Forward
Over the long-term, Cango is laying a clear and purposeful roadmap to develop a dynamic platform that intelligently integrates Bitcoin mining and HPC applications with dedicated energy infrastructure to create lasting value for shareholders and drive further growth. The Company's approach will follow a three-phase roadmap:
-- Near term: Optimize its 50 EH/s mining capacity by implementing efficiency upgrades and replicating the low-cost operational model of its Georgia mining facility in other favorable power markets. -- Medium term: Develop energy and HPC expertise by piloting renewable energy storage projects aimed at achieving near-zero-cost mining while simultaneously retrofitting select facilities for HPC applications. -- Long term: Build a dynamic computing platform that intelligently allocates energy capacity between Bitcoin mining and AI workloads, integrating Bitcoin mining, HPC services, and green-energy trading into a synergistic revenue model.
Reporting Currency
The Company intends to change the reporting currency of its consolidated financial statements from Renminbi to U.S. dollars, reflecting the profile of its revenue and profit after the divestiture of its China assets in May 2025. The change is expected to be effective from the Company's results for the third quarter 2025, which will be reported in U.S. dollars. All comparative numbers will be recast in U.S. dollars.
Conference Call Information
The Company's management will hold a conference call on Thursday, September 4, 2025, at 9:00 PM Eastern Time or Friday, September 5, 2025, at 9:00 A.M Hong Kong Time to discuss the financial results. Listeners may access the call by dialing the following numbers:
International: +1-412-902-4272 United States Toll Free: +1-888-346-8982 Mainland China Toll Free: 4001-201-203 Hong Kong, China Toll Free: 800-905-945 Conference ID: Cango Inc.
The replay will be accessible through September 11, 2025, by dialing the following numbers:
International: +1-412-317-0088 United States Toll Free: +1-877-344-7529 Access Code: 5441205
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com.
About Cango Inc.
Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through AutoCango.com, making it easier for global customers to access high-quality vehicle inventory from China. For more information, please visit: www.cangoonline.com.
Use of Non-GAAP Financial Measure
As part of our review of business performance, we present adjusted EBITDA as Non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income or loss before interest, taxes, depreciation, and amortization, impairment, results from discontinued operations and further excludes share-based compensation expenses and other non-operating income and expenses. We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.
While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of its core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Reconciliations of Cango's Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Roadmap Forward" 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
Juliet Ye, Head of Communications
Cango Inc.
Email: ir@cangoonline.com
Christensen Advisory
Tel: +852 2117 0861
Email: ir@cangoonline.com
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data)
As of December 31, 2024 As of June 30, 2025
RMB RMB US$
ASSETS:
Current assets:
Cash and cash equivalents 660,085,857 843,819,740 117,792,694
Short-term investments, net 292,347,551
Accounts receivable, net 12,060,219 15,711,379 2,193,224
Prepayments and other current assets, net 196,889,566 1,620,209,764 226,172,562
Receivable for bitcoin collateral, net 617,057,765 2,985,308,650 416,733,018
Current assets of discontinued operations 1,679,666,755
Total current assets 3,458,107,713 5,465,049,533 762,891,498
Non-current assets:
Mining machines, net 1,772,319,041 2,563,914,216 357,908,624
Property and equipment, net 477,815
Deferred tax assets 16,255,457 2,269,174
Operating lease right-of-use assets, net 1,345,851
Other non-current assets, net 325,704,996
Non-current assets of discontinued operations 411,368,143
Total non-current assets 2,511,215,846 2,580,169,673 360,177,798
TOTAL ASSETS 5,969,323,559 8,045,219,206 1,123,069,296
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debts 124,584,293 1,613,271,396 225,204,003
Accrued expenses and other current liabilities 1,248,130,533 1,173,156,960 163,766,397
Income tax payable 311,113,135 552,982,663 77,193,403
Short-term lease liabilities 1,315,594
Current liabilities of discontinued operations 149,762,415
Total current liabilities 1,834,905,970 3,339,411,019 466,163,803
Non-current liabilities:
Deferred tax liability 7 7 1
Non-current liabilities of discontinued operations 47,787,710
Total non-current liabilities 47,787,717 7 1
Total liabilities 1,882,693,687 3,339,411,026 466,163,804
Shareholders' equity
Ordinary shares 199,087 304,281 42,476
Treasury shares (756,517,941) (749,276,642) (104,594,986)
Additional paid-in capital 4,725,877,432 7,696,097,026 1,074,333,719
Accumulated other comprehensive income 152,882,024 117,861,429 16,452,821
Accumulated deficit (35,810,730) (2,359,177,914) (329,328,538)
Total Cango Inc.'s equity 4,086,629,872 4,705,808,180 656,905,492
Total shareholders' equity 4,086,629,872 4,705,808,180 656,905,492
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,969,323,559 8,045,219,206 1,123,069,296
CANGO INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data)
Three months ended June 30 Six months ended June 30
2024 2025 2024 2025
RMB RMB US$ RMB RMB US$
Revenues 1,001,766,873 139,841,263 2,048,104,666 285,904,387
Bitcoin mining income 989,399,199 138,114,802 2,035,666,196 284,168,043
Automobile trading income 12,367,674 1,726,461 12,438,470 1,736,344
Operating cost and expenses:
Cost of revenue (exclusive of depreciation and amortization shown below) 836,897,438 116,826,378 1,627,653,840 227,211,715
Cost of revenue (depreciation and amortization) 156,393,116 21,831,637 311,337,321 43,461,014
General and administrative 13,040,649 21,674,695 3,025,671 23,244,716 94,320,210 13,166,594
Provision for credit losses 6,565,218 916,469 8,664,078 1,209,459
Impairment loss from mining machines 1,840,017,728 256,856,570 1,840,017,728 256,856,570
Gain from changes in fair value of receivable for bitcoin collateral (567,233,297) (79,182,715) (372,275,298) (51,967,628)
Total operation cost and expense 13,040,649 2,294,314,898 320,274,010 23,244,716 3,509,717,879 489,937,724
Loss from operations (13,040,649) (1,292,548,025) (180,432,747) (23,244,716) (1,461,613,213) (204,033,337)
Interest Income 15,017,695 4,999,962 697,968 30,956,541 7,152,431 998,441
Interest expense (14,713,673) (2,053,950) (24,231,454) (3,382,581)
Foreign exchange (loss) gain, net 141,228 19,715 (59,316) (8,280)
Other income 603,331 822,943 114,878 1,202,398 1,642,357 229,264
Other expenses (567,798) (79,262) (567,798) (79,262)
Net (loss) income before income taxes 2,580,377 (1,301,865,363) (181,733,398) 8,914,223 (1,477,676,993) (206,275,755)
Income tax benefit 11,326,299 1,581,090 8,197,331 1,144,303
Net (loss) income from continuing operations 2,580,377 (1,290,539,064) (180,152,308) 8,914,223 (1,469,479,662) (205,131,452)
Discontinued operations:
Income/(Loss) from discontinued operations 75,791,431 (591,602,705) (82,584,553) 171,525,971 (620,017,630) (86,551,124)
Income tax benefit (expense) 7,651,029 (233,869,892) (32,646,978) (4,390,571) (233,869,892) (32,646,978)
Net income/(Loss) from discontinued operations 83,442,460 (825,472,597) (115,231,531) 167,135,400 (853,887,522) (119,198,102)
Net (loss) income attributable to Cango Inc.'s shareholders 86,022,837 (2,116,011,661) (295,383,839) 176,049,623 (2,323,367,184) (324,329,554)
(Losses) earnings per ADS attributable to ordinary shareholders:
Basic
Discontinued operations 0.81 (7.71) (1.08) 1.59 (8.10) (1.13)
Continuing operations 0.02 (12.06) (1.68) 0.09 (13.94) (1.95)
Basic 0.83 (19.77) (2.76) 1.68 (22.04) (3.08)
Diluted
Discontinued operations 0.74 (7.71) (1.08) 1.48 (8.10) (1.13)
Continuing operations 0.02 (12.06) (1.68) 0.08 (13.94) (1.95)
Diluted 0.76 (19.77) (2.76) 1.56 (22.04) (3.08)
Weighted average ADS used to compute earnings per ADS
attributable to ordinary shareholders:
Basic 104,041,560 107,044,846 107,044,846 104,781,289 105,422,976 105,422,976
Diluted 113,656,131 107,044,846 107,044,846 112,790,662 105,422,976 105,422,976
Other comprehensive income, net of tax
Foreign currency translation adjustment 7,832,817 3,289,342 459,174 28,727,745 (35,020,595) (4,888,687)
Total comprehensive (loss) income 93,855,654 (2,112,722,319) (294,924,665) 204,777,368 (2,358,387,779) (329,218,241)
Total comprehensive (loss) income attributable to Cango Inc.'s 93,855,654 (2,112,722,319) (294,924,665) 204,777,368 (2,358,387,779) (329,218,241)
shareholders
CANGO INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data
Three months ended June 30 Six months ended June 30
2024 2025 2024 2025
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
RMB RMB US$ RMB RMB US$
Net (loss) income 86,022,837 (2,116,011,661) (295,383,839) 176,049,623 (2,323,367,184) (324,329,554)
Less: Discontinued operations:
Income/(Loss) from discontinued operations 75,791,431 (591,602,705) (82,584,553) 171,525,971 (620,017,630) (86,551,124)
Income tax benefit (expense) 7,651,029 (233,869,892) (32,646,978) (4,390,571) (233,869,892) (32,646,978)
Net income/(Loss) from discontinued operations 83,442,460 (825,472,597) (115,231,531) 167,135,400 (853,887,522) (119,198,102)
Net (loss) income from continuing operations 2,580,377 (1,290,539,064) (180,152,308) 8,914,223 (1,469,479,662) (205,131,452)
Add: Interest expense 14,713,673 2,053,950 24,231,454 3,382,581
Add: Income tax benefit (11,326,299) (1,581,090) (8,197,331) (1,144,303)
Add: Depreciation and amortization 2,419 156,405,608 21,833,381 4,521 311,387,238 43,467,982
Cost of revenue 156,393,116 21,831,637 311,337,321 43,461,014
General and administrative 2,419 12,492 1,744 4,521 49,917 6,968
Add: Impairment loss from mining machines 1,840,017,728 256,856,570 1,840,017,728 256,856,570
Add: Other expenses 567,798 79,262 567,798 79,262
Less: Other income 603,331 822,943 114,878 1,202,398 1,642,357 229,264
Add: Share-based compensation expenses 3,382,804 1,084,118 151,337 7,799,176 26,867,560 3,750,567
General and administrative 3,382,804 1,084,118 151,337 7,799,176 26,867,560 3,750,567
Non-GAAP adjusted EBITDA 5,362,269 710,100,619 99,126,224 15,515,522 723,752,428 101,031,943
Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders 5,362,269 710,100,619 99,126,224 15,515,522 723,752,428 101,031,943
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SOURCE Cango Inc.
