Unidentified Analyst's questions to Cango Inc (CANG) leadership • Q1 2025
Question
An analyst from Elonxi Research questioned the revenue concentration risk from Bitcoin mining, the potential use of derivatives to hedge against price volatility, and future financing plans, particularly regarding equity financing.
Answer
Executive Jiayuan Lin responded that the current focus on mining is strategic, though the company remains committed to its AutoCango used car platform for diversification. He stated the operating loss was from short-term price moves and risk is being managed by locking in power costs, not yet with derivatives. Regarding financing, the company has sufficient liquidity and a low debt-to-equity ratio, and will therefore prioritize debt financing over equity financing.