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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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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