Cango Inc.

Good morning and good evening, everyone. Welcome to Kengo Inc. First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. The call is also being broadcast live on the company's IR website. Joining us today are Mr. Jianyuan Lin, Chief Executive Officer, and Mr. Yongnyai 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 call today, as management will make forward-looking statements. With that said, I am now turning the call over to Mr. Jianyuan Lin, CEO of CanGo. Please go ahead, sir.

Hi, everyone, and welcome to CanGo's first quarter 2023 earnings call. In 2022, the automotive market was affected by many factors such as the epidemic. The whole year was in a sluggish state. 2023 is the first year of the post-epidemic era. Although the macroeconomic situation gradually warmed up, the adjustment and repair of the automotive industry in China set the foundation. But in the first quarter, in the spring, the supply and demand dropped, and in March, the price of car sales plummeted. Under the common effect of many factors, consumers' obsession with money is serious. Data from the Youth Association shows that Due to a variety of issues, notably COVID-19, the automotive industry remained slow throughout 2022. The macroeconomy began to show indications of steady recovery in 2023, the first year of the post-pandemic era.

laying a hopeful basis for a revival in China's auto sector. Despite this encouraging trend, the market remained weak in the first quarter due to constrained consumer spending caused by factors such as the spring festival holiday, the loss of national subsidies and a price war that began in March. According to China Passenger Car Association, retail sales volume of passenger vehicles declined 13.4% year-on-year in the first quarter, We predict the overall passenger vehicle market to remain volatile in 2023 owing to persistent pressure from weaker market demand.