FAST NEWS: Cango Announces Large One-Time Cash Dividend

The latest: Car trading services platform Cango Inc. (CANG.US) announced it will pay a one-time cash dividend of $1 per American depositary share (ADS). It also announced a new program to buy up to $50 million worth of its stock, complementing another buyback program of the same size announced last August. Looking Up: The dividend represents a huge payout ratio equal to 42% of Cango’s last closing share price before the announcement. Take Note: The company also announced it has awarded options to its two co-founders and top executives allowing…

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Yixin Finds New Road to Profits as Auto Loan Agent

The online car financing platform turned profitable last year, underlining the success of its transition from direct lender to loan facilitator Key Takeaways: Yixin posted a $43 million adjusted net profit last year, as its newer auto loan facilitation business rose 65% and its credit impairment losses dropped sharply The company’s asset quality has improved notably since its shift to loan facilitation from its previous business as a direct lender By Ken Lo It’s often said that when the main road is closed, try taking a side track that might…

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Cango Shifts Gears Into Macro Headwinds, With Eye on NEVs and Car Services

Car trading made up two-thirds of company’s revenue in fourth quarter, while its older auto finance business shrank to just a quarter of the total Key Takeaways: Cango reported its fourth-quarter revenue rose sequentially but was down slightly from a year ago, as its newer car-trading services took up a larger portion of the total Company faces a number of macroeconomic headwinds, including pandemic restrictions and a chip shortage that has dampened new car sales worldwide By Doug Young What do you do when macroeconomic factors beyond your control put…

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IPO-Bound Tuhu Searches for Profits in Aftermarket Car Services

The company backed by Tencent has filed to list its shares in Hong Kong in a deal that could value it at around $2.6 billion Key takeaways: Tuhu has filed for an IPO in Hong Kong, after reportedly abandoning its original plan to raise up to $400 million through a U.S. listing Intense competition in the aftermarket car services industry has kept the company firmly in the red, as it eyes new energy vehicles to turn the tide By Ken Lo As home to the world’s largest car market, China…

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New Energy Lands as Hottest Category Among Chinese Concept Stocks in 2021 – Bamboo Works Special Report

Investors kept a close look at China’s solar and wind power stocks last year, but were least interested in the hobbled education sector By Bamboo Works team Chinese concept stocks experienced unprecedented challenges in the Year of the Ox. The small and mid-sized companies covered by Bamboo Works were no exception, also coming under intense pressure. Looking past their stock prices and financial reports, how did these companies perform in terms of media and investor attention? Which companies stood out despite all the pressures? Our special report highlights such trends…

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Battered Autohome Sees Light at End of Tunnel

One of China’s oldest online car specialists posts 24% revenue decline in third quarter on reduced industry spending, but sees relief next year Key Takeaways: Leading Chinese online auto company Autohome says its revenue fell 24% in the third quarter, dragged down by a 50% decline in spending by car manufacturers Company sees global auto sector returning to more normal conditions in second half of next year as chip shortages ease By Doug Young The darkest hour is upon us, but light at the end of the tunnel is also…

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Transforming Uxin Finds Government Support in Anhui

Used car seller unveils plan to build $388 million reconditioning center in eastern province, even as its cash levels remain low Key takeaways: Uxin’s new $388 million investment in Anhui is part of its broader plan to transform from a middleman to a direct used car seller One of the company’s biggest challenges going forward could be a lack of cash to execute its cost-heavy transformation plan By Mo Yelin Online used car seller Uxin Ltd. (UXIN.US) made a bold move last June to reinvent itself – shifting gears from…

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Share Buybacks Bring Mixed Results for Smart Share Global, Cloopen

Two China tech firms are the latest in a recent string to announce share repurchases with hopes of boosting their sagging stocks Key points: Smart Share Global’s shares surged after it announced a $50 million stock buyback plan, while Cloopen’s were largely unchanged after it separately unveiled a similar plan Purchasing by a major institutional buyer may have fueled Smart Share Global’s surge, as such big buyers look for bargains among depressed Chinese shares   By Doug Young It could well be called “A Tale of Two Buybacks.” A day…

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Transitioning Auto Specialist Cango Can’t Outrace Macro Challenges

Company blames regulation, auto chip shortage for its stalling revenues, as it continues to ramp up car-trading services   Key Points: Cango has improved its overall performance with a timely shift toward auto trading to complement its struggling auto financing business Company blames regulatory challenges at home and global chip shortage for stalling revenue growth By Eric Auchard China’s race to create a successful car trading and financing platform blending online and offline services has become a game of business-model bumper cars, and an auto graveyard for some. The result…

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