announced its unaudited financial report for the second quarter of 2020. The financial report shows that in the second quarter of 2020, Cango achieved revenue of 274 million yuan (RMB, the same below), which was about 10% higher than management's expectations in the first quarter; quarterly net profit reached 70.23 million yuan, turning losses into profits compared with the first quarter. Cango has returned to the track of profit growth.
The second quarter financial report of Cango confirms the company's business recovery and return to the profit growth track. It reflects the business resilience possessed by the leading platform of the domestic auto finance industry, and it also reveals the sound recovery pattern of the auto market.
In addition, Cango's management clarified the focus of strategic development in the second half of this year at the financial report meeting, which is related to the market's expectations for the company's continued growth and main driving forces. The overall situation can be summarized as two key words: high-end and efficiency improvement.
On the one hand, at the business level, Cango starts from the two main lines of auto loan assistance and insurance-based aftermarket business, and cuts into higher-end markets through product innovation. At present, in terms of loan assistance, Cango has established a dedicated team to enter the high-end car market. In addition, it is worth mentioning that in the second quarter, the company continued to provide services to all Tesla stores in Shanghai, and will continue to deepen its expansion in this field in the future; on the other hand, in terms of operations, Cango will continue to promote the improvement of operating efficiency improving the efficiency of the sinking market while opening up the mid-to-high-end car market.
Although affected by the epidemic this year, the auto market as a whole faces great challenges, but benefiting from the impact of consumption upgrades, price declines and customer group differences, luxury cars continued to grow at a high rate in the first half of this year and became the main force of definite growth in the auto market. According to data from the Passenger Association, the retail growth rate of the domestic passenger car market in the first half was -23%, while the luxury car market grew by 1% year-on-year, which can be described as one of the best. In the context of the recovery of the auto market, the continued prosperity of the luxury car market has also provided the growth stamina for the high-end market. In the the current auto market, how to view the investment value of Cango?
We invite Cango's IR to be a guest in the Futu community to chat online with Niuyou about Cango's second quarter financial report and future development plans. The event will start at 20:00 on September 8th (Tuesday) and will last for one hour. Don't miss it!
1. How to participate:
Click the [Join Discussion] button below to post a question. Each question needs to be posted separately; questions with a high number of likes will have a higher chance of being answered.
2. Participation rules:
1. The content of questions must follow the community rules.
2. Futu does not intend to take responsibility for any investment behavior that relies on the company's reply.
3. Activity time:
September 8, 2020 20:00-21:00