Pingyue Wu

Pingyue Wu questioned if Cango's acquisition of mining sites signifies a shift towards an integrated operation, departing from its previously stated light asset model. She also asked about plans to acquire more low-electricity-cost mining sites, prioritizing regions like South America and the Middle East, and the screening criteria used.

Answer

CEO Paul Yu clarified that acquiring mining sites offers strategic benefits beyond cost reduction, including stable energy supply, operational expertise, and a foundation for AI data center transformation, without altering the capital-led strategy. He stated that Cango will continue to monitor M&A opportunities for energy projects, prioritizing the U.S. and the Middle East based on low-cost electricity, sufficient capacity, power redundancy, and regional grid stability.

Pingyue Wu of CITIC Securities Company asked if Cango's acquisition of mining sites signifies a shift from its light asset model towards integrated operations, and inquired about future plans for acquiring more low-electricity-cost mining sites, prioritizing regions like South America and the Middle East, along with the specific screening criteria.

Answer

CEO Peng Yu clarified that selective site acquisition enhances operational efficiency and paves the way for green energy and AI transformation, not altering their asset-led strategy. He detailed three strategic benefits (stable energy, operational expertise, AI foundation) and three screening criteria (low-cost electricity, sufficient capacity, grid stability), prioritizing the U.S. currently, with the Middle East also under consideration.