Cango Inc.

Good morning and good evening, everyone. Welcome to Cango, Inc.' 's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayin Lin, Chief Executive Officer, and Mr. Michael Zong, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct a Q&A session. Before we begin, I refer to you to the safe harbor statement in the company's earnings release, which also applies to the conference call today, as management will make forward-looking statements. With that, I am now turning the call over to Mr. Xiaoyin Lin, CEO of Kengo. Please go ahead, sir.

Hello, everyone, and welcome to Kengo's third quarter 2020 earnings course. Since the second half of this year, with China's overall test, especially the gradual recovery of the lower market, as well as the steady promotion of the company's various businesses, we are very happy to see that the overall business of the third quarter has significantly rebounded. The total income of the third quarter reached 4.35 billion yuan, which is nearly 32% higher than the leading upper limit that we previously gave. Among them, the car aftermarket storage business, which is mainly based on insurance, has an income of 68.9 million yuan, which accounts for 15.8% of the total revenue. The car trading business has also made considerable revenue contributions in this quarter, reaching RMB7036 million. Under the effective cost control of the company, the operating profit continued to maintain a good growth posture in the last quarter, reaching RMB13.5 billion. Finally, in terms of net profit, due to the investment revenue of the supply value change brought by the company's investment in ideal vehicles,

In the second half of this year, China's auto market has regained momentum with gradual recovery in the lower tier cities. With steady progress across our business, we are pleased to see a significant rebound in both our financial and operational performance. Total revenue in the third quarter was approximately 435 million RMB, outperforming the high end of our guidance range by approximately 32%. In particular, our aftermarket services Facilitation revenue grew to 68.9 million RMB, accounting for nearly 15.8% of total. Our car trading transaction business also contributed considerable revenue in this quarter, reaching 70.4 million RMB. Operating income sustained its growth momentum from the previous quarter and came in at approximately 135 million RMB, mainly attributable to our effective cost control initiatives. Finally, our net income of this quarter was close to 1.8 billion RMB, mainly attributable to the significant investment gained from the auto.