Surging EV Sales Rev Up Business at Auto Finance Platform Yixin

The auto loan platform reported that its vehicle financing grew just over 9% in the third quarter despite renewed Covid outbreaks Key Takeaways: Yixin’s financing for sales of electric vehicles surged 225% to 1.3 billion yuan in the third quarter, becoming the new growth engine for the car-loan facilitator The market for used vehicles, which was slowed by the pandemic, will weigh on the company’s fourth-quarter performance By Tina Yip Covid lockdowns hurt many sectors of the Chinese economy this year, but goverment stimulus policies injected fuel into the auto…

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Auto Financer XXF Group Revs Up IPO Engine but Hits Another Speed Bump

The auto finance and leasing company has made another run at an IPO on the Hong Stock Exchange after three earlier bids stalled. But its latest effort has already hit an obstacle Key Takeaways: After filing its fourth IPO application, XXF Group pulled its preliminary prospectus from the exchange’s website just a few days later The company will have to repay more than 50 million yuan on a loan from a Didi subsidiary by next June. The need for a cash injection may help explain its eagerness to pursue a…

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Autohome Rides Government-Fueled Boom in Car Sales That May Prove Temporary

The internet auto trader benefitted nicely from a recovery in car sales in the third quarter, powered by various government incentives Key Takeaways: Autohome’s revenue increased 4.5% year-on-year in the third quarter, representing the first growth since the start of 2021 China’s car sales recovered strongly in the third quarter, but the momentum may not last as the effect of government sweeteners that helped to fuel the rebound start to fade By Warren Yang Online car trader Autohome Inc. (ATHM.US; 2518.HK) is riding a recovery in China’s car market, fueled…

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FAST NEWS: Cango Announces Large Special Dividend

The Latest: Car trading platform operator Cango Inc. (CANG.US) announced a one-time special cash dividend of $1 per American depositary share (ADS) on Tuesday after U.S. stock markets closed. Looking Up: The amount of the dividend equates to 44% of the company’s last closing price. That means any holders of its stock will receive nearly half the value of their holdings through the cash payment set for Nov. 23. Take Note: The company had about 138 million ADSs outstanding at the end of June, meaning the dividend will cost it…

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Cango Adds Used Cars, New Core App as Business Hits Second-Quarter Speed Bump

Company’s revenue takes major Covid hit as it launches a new Haoche app at the center of its ongoing transformation from car financier to car-trading platform operator Key Takeaways: Cango’s revenue fell 69% in the second quarter due to disruptions from China’s strict Covid controls, but it forecast the figure would start to rebound in the current quarter Company added two important pieces to its emerging car-trading business model with the rollout of its Haoche app and launch of a used car trading platform  By Doug Young Talk about hitting…

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Autohome Weathers Covid Storm, Revs Up for Speedier Second Half

The Internet auto-sales platform’s revenue grew 17.7% sequentially in the second quarter, showing resilience in the face of China’s pandemic disruptions Key Takeaways: Autohome’s revenue rose strongly on a sequential basis in the second quarter despite a year-on-year decline, sparking a rally for its stock Company should benefit in the second half from new vehicle launches and government measures to stimulate vehicle consumption By Lau Ming What is it about an internet auto platform whose profits declined in the second quarter that has still managed to win over investors? For…

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Macro Headwinds Accelerate Cango’s Drive to Car Trading from Auto Finance

Company’s revenue fell 30% in the first quarter and it forecast an even bigger decline in the current quarter as it took a major hit from China’s strict Covid control measures Key Takeaways: Cango’s revenue fell 30% in the first quarter, led by a 74% decline in its legacy auto financing business that the company is de-emphasizing in favor of broader auto trading services The company launched an app version of its Cango Haoche this month, expanding last year’s rollout of a WeChat mini-app that it is positioning at the…

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Investors See Better Road Ahead for Autohome Despite Profits Setback

The leading Chinese online vehicle trading platform posted lower quarterly profits but beat market expectations, giving its share price a boost Key Takeaways: Autohome’s adjusted net income tumbled 40% during the first quarter, less than the 50% drop expected by the market. Relieved investors sent the share price soaring 19% over three trading days The company’s business is expected to pick up in the second half of the year as auto production normalizes, policy support kicks in and market demand rallies By Lau Ming For the Chinese car industry, this year has been…

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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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