Cango Inc.

Good morning and good evening, everyone. Welcome to Cango Inc's first quarter 2022 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 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 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 said, I am now turning the call over to Mr. Jiayin Lin, CEO of Kangoo. Please go ahead, sir.

Hi, everyone. Welcome to Kangoo's first quarter 2022 earnings call. This year, the international situation has become more complex, and the domestic market environment is getting worse. Especially since March, the spread of the Omicron epidemic has brought great pressure on the economic operation. It has brought different levels of impact to the social levels, including individuals and enterprises. Our automotive industry has not lost its shadow yet, and is facing the interruption of the industrial and supply chains caused by the outbreak of the epidemic. At the supply end, The global situation brought about by the pandemic and very large economic and geopolitical uncertainties can be characterized as complex and evolving during the first quarter.

Domestically in China, we are also facing a challenging macro environment. In particular, the outbreak of Omicron has spread across the nation since March, with lockdowns in certain regions bringing great pressure and impact on society as a whole, including individuals and businesses alike. The automotive industry is still in the shadow of a chip shortage and facing the disruption of industrial production and supply chain caused by the COVID-19 resurgence. On the supply side, auto companies in Shanghai and Jilin have stopped manufacturing on a large scale since mid-March. Although many OEMs have accelerated the resumption of operation and manufacturing since April, the overall decline in auto production is still difficult to reverse. A greater challenge comes from the demand side. Consumer confidence has been severely impacted, and their enthusiasm for purchasing cars has dropped sharply.