Cango Inc.

Good morning and good evening, everyone. Welcome to the Cango, Inc.' 's fourth quarter and full year 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 Mrs. Zhaiyuan Lin, Chief Executive Officer, and Mr. Michael Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the safe harbour statement in the company's earnings release, which also applies to the conference today, as management will make forward-looking statements. With this said, I'm now turning the call over to Mr. Zhai-Wan Lin, CEO of Kango. Please go ahead, sir.

Thank you. Good morning and good evening, everyone. Welcome to CanGo's fourth quarter and full year 2020 earnings call. We are very happy to see that in the second half of the year, the overall business of the company has shown a significant rebound. In the fourth quarter, the company's total income reached 10.97 billion yuan, which is more than 46% of the direct income we gave before. Thanks to the effective cost control of the company, the operating profit continues to maintain a good growth trend, reaching 1.98 billion yuan this quarter. In 2020, the unexpected pandemic at the beginning of the year brought the industry to a standstill.

But China's economy picked up speed in the second half of the year, and the auto market recovered steadily. While there was immense pressure on the auto industry, it also accelerated its pace of transformation. With the unleashed pent-up demand from the lower-tier markets and continuous progress across our business lines, we are pleased to report that Tango's overall business rebounded significantly during the second half of this year, of the year, I mean 2020. As a result, total revenues in the fourth quarter grew to a record 1,097 million RMB, surpassing the high end of our previous guidance range by about 46%. Thanks to our effective cost control initiatives, Operating income sustained its growth momentum in the quarter and came in at 198 million RMB. Net income for the quarter was 1.6 billion RMB, primarily attributable to an investment gain of about 1.5 billion RMB in the auto.