Cango Inc (CANG) 2022 Q4 法說會逐字稿

Good morning, and good evening, everyone. Welcome to Cango, Inc.'s Fourth Quarter and Full Year 2020 Earnings Conference Call. (Operator Instructions) This call is also being broadcast live on the company's IR website.

大家早上好，晚上好。歡迎來到 Cango, Inc. 的 2020 年第四季度和全年收益電話會議。 （操作員說明）此電話也在公司的 IR 網站上直播。

Joining us today are Mr. Jiayuan 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.

今天加入我們的是首席執行官林家元先生；公司首席財務官Michael Zhang先生。在管理層準備好發言後，我們將進行問答環節。

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 be making forward-looking statements.

在我們開始之前，我建議您參考公司收益發布中的安全港聲明，該聲明也適用於今天的電話會議，因為管理層將發表前瞻性聲明。

With that said, I'm now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir.

話雖如此，我現在將電話轉給 Cango 首席執行官林家元先生。請繼續，先生。

[Interpreted] Hello, everyone, and welcome to Cango's Fourth Quarter and Full Year 2022 Earnings Call.

[解讀]大家好，歡迎來到燦谷2022年第四季度及全年財報電話會議。

2022 was a challenging year, multiple headwinds, including COVID pandemic, supply chain disruptions and chip shortages continue to create significant uncertainties in the auto industry. In addition, political and economic turmoils worldwide have profoundly impacted all aspects of society, including China's auto industry. Despite this complex and challenging external environment, Cango has stepped a progress along its new strategic road map, demonstrating strong resilience.

2022 年是充滿挑戰的一年，包括 COVID 大流行、供應鏈中斷和芯片短缺在內的多重逆風繼續給汽車行業帶來重大不確定性。此外，世界範圍內的政治和經濟動盪也深刻影響著社會的方方面面，包括中國的汽車行業。儘管外部環境複雜且充滿挑戰，但燦谷在新的戰略路線圖上步步為營，展現出強大的韌性。

Cango underwent significant transformations in 2022. For the new car trading transaction business, we launched our Cango Haoche APP in June following the successful debut of the Cango Haoche mini-program in 2021. We gradually integrated an array of standardized specific products into the multisystem all-in-one platform in October, providing dealers with one-stop comprehensive car trading solution centering on car sources.

燦果在2022年經歷了重大變革。對於新車交易業務，我們繼2021年成功推出燦果好車小程序後，於6月推出了燦果好車APP。我們逐步將一系列標準化的特定產品整合到多系統中。 -10月一體化平台，為經銷商提供以車源為核心的一站式綜合汽車交易解決方案。

For the used car trading transaction business, we launched our Cango U-Car mini-program in May and developed our Cango U-Car APP at the end of 2022. Cango U-Car APP encompass functions such as vehicle sourcing, online car research, online options, transaction support services and other digital services to meet the diverse needs of used car dealers.

對於二手車交易業務，我們於 5 月推出了燦果優車小程序，並於 2022 年底開發了燦果優車 APP。燦果優車 APP 包括車輛採購、在線汽車研究、在線選項、交易支持服務和其他數字服務，以滿足二手車經銷商的多樣化需求。

As a result, our automotive transaction service platform covering both the new car and used car market has been largely established. Strong market feedback and dealer demand testifies to the validity of our transformation into a transaction service platform with (inaudible) new proposition.

至此，我們覆蓋新車和二手車市場的汽車交易服務平台已基本建立。強大的市場反饋和經銷商需求證明了我們向具有（聽不清）新主張的交易服務平台轉型的有效性。

Total revenues in the fourth quarter of 2022 were RMB 490 million, up 17% quarter-over-quarter. Revenue from car trading transaction was RMB 430 million, up 24.2% quarter-over-quarter, accounting for over 88% of total revenues. The whole year total revenues were RMB 1.98 billion. Of which, revenue from car trading transactions was RMB 1.6 billion, accounting for over 80%.

2022年第四季度總收入為人民幣4.9億元，環比增長17%。汽車貿易交易收入為人民幣4.3億元，環比增長24.2%，佔總收入的88%以上。全年實現總收入19.8億元。其中，汽車買賣交易收入16億元，佔比超過80%。

Currently, automotive financing facilitation is not our primary focus, but it was our launch pad and continues to strongly support our transformation into an automotive transaction service platform by optimizing our automotive financing facilitation business we have continuously improved the quality of assets, resulting in a healthy balance sheet. The total outstanding balance of financing transactions we facilitated decreased from CNY 46.7 billion as of December 31, 2021, to CNY 25.6 billion as of December 31, 2022. We expect the number to decrease further over 2023.

目前，汽車金融便利化不是我們的主要業務，但它是我們的啟動平台，並繼續大力支持我們向汽車交易服務平台轉型，通過優化我們的汽車金融便利化業務，我們不斷提高資產質量，從而實現健康的發展。資產負債表。我們促成的融資交易未償餘額總額從 2021 年 12 月 31 日的 467 億元人民幣減少到 2022 年 12 月 31 日的 256 億元人民幣。我們預計這一數字將在 2023 年進一步下降。

In addition to ensuring our stable operation, the ever-decreasing risk exposure, healthy assets and strong cash reserves give us the confidence to fully embrace our transformation and grasp new opportunities in the post-pandemic world.

在確保穩健經營的同時，不斷降低的風險敞口、健康的資產和雄厚的現金儲備，讓我們有信心全面擁抱轉型，把握後疫情世界的新機遇。

Now I would like to take you through more details of our business development.

下面我想帶大家了解一下我們業務發展的更多細節。

Now let's begin with the new car trading transactions business. As of December 31, 2022, Cango Haoche has engaged 10,112 dealers, up 58% year-on-year. During the fourth quarter, we sold a total of 3,938 cars, up 11.8% from the previous quarter. For the full year 2022, we sold a total of 16,490 cars. Conversion rate was 2.1% on par with the industry. Also during the full year 2020, accumulated page views and unique visitors on Cango Haoche APP were over 660,000 and 57,000, respectively.

現在讓我們從新的汽車交易交易業務開始。截至2022年12月31日，燦谷好車已聘請經銷商10112家，同比增長58%。第四季度，我們共售出 3,938 輛汽車，環比增長 11.8%。 2022 年全年，我們共售出 16,490 輛汽車。轉化率為2.1%，與行業持平。同樣在2020年全年，參果好車APP的累計瀏覽量和獨立訪客分別超過66萬和5.7萬。

For our self-owned new cars, we have established cooperation with various OEMs and car suppliers expanding our vehicle sources while also diversified by brand and model. Specifically, we forged deep collaborations with GAC Mitsubishi, Dongfeng Motor Group, FAW-Volkswagen and FAW Audi in the fourth quarter. Furthermore, our sales teams continue to develop vehicle sources and sales models based on the characteristics of each regional market, prompting a steady increase in the number and stickiness of channels.

在自主新車方面，我們與多家整車廠和汽車供應商建立了合作關係，擴大了我們的車源，同時實現了品牌和車型的多元化。具體來說，第四季度我們與廣汽三菱、東風汽車集團、一汽大眾和一汽奧迪建立了深度合作。此外，我們的銷售團隊不斷根據各區域市場的特點開發車源和銷售模式，促使渠道數量和粘性穩步提升。

With respect to our transaction facilitation services, we have largely completed Cango Haoche service product metrics with the addition of several upgraded intelligent tools and products during the fourth quarter, further improving facilitation efficiency and dealer experience. Dealers cannot easily access a wide range of transactions supporting services on the platform, including customer leads generation, logistics financial services and insurance services, among others. All of our platform services are gaining traction and have made good progress by the end of the year.

在交易便利化服務方面，第四季度，我們已基本完成參購好車服務產品指標，新增多款升級的智能工具和產品，進一步提升了便利化效率和經銷商體驗。經銷商無法輕鬆獲得平台上廣泛的交易支持服務，包括客戶線索生成、物流金融服務和保險服務等。我們所有的平台服務都越來越受歡迎，並在年底前取得了良好進展。

While enhancing our new car platform, we also continue to build our used car platform, following the launch of our Cango U-Car mini-program. In the mid-2022, we focused on acquiring new users and increase engagement. At the same time, by leveraging our advantages such as abundant used car sources and one-on-one matching services, we grown dealers' behavior on our platform and improve their platform stickiness.

在加強我們的新車平台的同時，我們還繼續建立我們的二手車平台，繼推出了燦谷優車小程序之後。在 2022 年年中，我們專注於獲取新用戶和提高參與度。同時，借助二手車資源豐富、一對一匹配服務等優勢，培育經銷商平台行為，提昇平台粘性。

We also established professional technician teams and car service teams across the country in the fourth quarter, providing dealers and customers with one-stop value-adding services, including car viewing, car inspection and car loan transferred to further improve our matching conversion rate. And for the end of 2022, there were 4,492 registered dealers on Cango U-Car. We spent a number of transactions on the platform to pick up over time.

四季度，我們還在全國組建了專業的技術人員團隊和汽車服務團隊，為經銷商和客戶提供看車、驗車、轉貸等一站式增值服務，進一步提升匹配轉化率。截至2022年底，燦谷優車註冊經銷商4492家。隨著時間的推移，我們在平台上花費了一些交易來回升。

As of December 31, 2022, the accumulated page views and unique visitors on Cango U-Car mini-program were over 410,000 and 23,000, respectively. In January 23, we officially launched Cango U-Car APP, (inaudible) dealers evolving demand with 5 functional modules covering vehicle sourcing, car searching, online auctions, transaction support services and other digital services. Moving forward, we will continue to improve Cango U-Car and its-related products and services.

截至2022年12月31日，燦谷優車小程序累計訪問量超過41萬，獨立訪客超過2.3萬。 1月23日，我們正式推出燦谷優車APP，（聽不清）經銷商進化需求，涵蓋車輛採購、尋車、在線拍賣、交易支持服務等數字化服務5大功能模塊。未來，我們將繼續完善燦谷優車及其相關產品和服務。

Through Cango U-Car' digital platform, we aim to form a broad and deep network for the used car segment, efficiently, connecting used car sources customers and funds supplemented by standardized support services spanning the entire transaction chain. With these advantages, Cango can promote truly efficient cross-regional circulation of used cars across the country, streamline the used car transaction process and increased dealers operating profit.

通過燦谷優車的數字化平台，我們旨在形成一個廣而深的二手車細分市場網絡，高效連接二手車源頭客戶和資金，輔以標準化的全交易鏈支持服務。憑藉這些優勢，燦谷可以在全國真正推動二手車跨區域高效流通，簡化二手車交易流程，提高經銷商經營利潤。

Going forward, we will continue to advance the platform's digitalization, creating a closed-loop transaction ecosystem integrating online and off-line services. Through this ecosystem, we can move off-line services online and further standardize them enable to standardize the used car profits and services. Meanwhile, we will redouble our efforts to improve dealer stickiness and enhance their engagement on our platform, leveraging Cango's solid channel network and customer base developed over 10 years to provide them with premium car resources.

未來，我們將繼續推進平台數字化建設，打造線上線下一體化的交易生態閉環。通過這個生態系統，我們可以把線下服務搬到線上，進一步標準化，使二手車利潤和服務標準化。同時，我們將加倍努力提高經銷商粘性，增強他們在我們平台上的參與度，利用燦谷10多年積累的穩固渠道網絡和客戶基礎，為他們提供優質汽車資源。

New digital infrastructure is an essential part of our transformation. In 2022, we continue to enhance our R&D efforts to holistically improve our digital business capabilities. By building a proprietary information and digital center that integrates information, digital and intelligent technologies, Cango has created a unique competitive advantage to propel the sustainable development of our automotive transaction service platform.

新的數字基礎設施是我們轉型的重要組成部分。 2022年，我們將繼續加大研發力度，全面提升數字化業務能力。通過打造集信息化、數字化、智能化技術為一體的自有信息數字化中心，燦谷創造了獨特的競爭優勢，推動了汽車交易服務平台的可持續發展。

Cango's dual platform framework has taken shape and we expect to steadily increase our operation capacity and efficiency as we improve each function. [4G] and new parts through uncharted territory is never easy as we transform from a leading auto financing service provider to an integrated automotive transaction service platform, both the scope of our offerings and our business model have undergone the sea change. However, once they never waver, our determination to company's small- and medium-sized dealers in lower-tier markets on our journey to success and empower them to achieve their goals by providing them with the products and services they need.

Cango的雙平台架構已經形成，我們希望隨著各項功能的完善，穩步提昇運營能力和效率。 [4G] 和新零件通過未知領域絕非易事，因為我們從領先的汽車金融服務提供商轉變為綜合汽車交易服務平台，我們的產品範圍和業務模式都發生了翻天覆地的變化。然而，一旦他們堅定不移，我們的決心將幫助公司在低端市場的中小型經銷商走上成功之路，並通過為他們提供所需的產品和服務來幫助他們實現目標。

When we established Cango 12 years ago, we homed in on a huge consumption potential, an imbalance between the supply and demand in the lower-tier markets. Taking automotive financing facilitation services as our launch pad, Cango gradually build a solid network covering nearly 50,000 dealers nationwide, and we have worked closely with our dealers to provide premium financing facilitation services to our customers ever since. A decade later, many of the small and medium dealers we partnered with have grown into a larger and more diversified business, multiple services and diverse needs. We have been with them every step of step of the way, continuously pushing our business boundaries to offer effective solutions to address their unmet needs as well as one-stop services to help our dealers lower their operating costs and refine our business efficiency. As always, our ultimate goal is to make car purchases easy, simple and enjoyable.

12 年前我們創立燦谷時，看準的是巨大的消費潛力，以及低端市場供需失衡的情況。燦谷以汽車融資便利化服務為起點，逐步建立起覆蓋全國近50,000家經銷商的穩固網絡，並與經銷商緊密合作，為客戶提供優質的融資便利化服務。十年後，我們合作的許多中小經銷商已經成長為規模更大、業務更多元化、服務多元、需求多樣化的企業。我們一直與他們一起走過每一步，不斷突破我們的業務邊界，提供有效的解決方案來解決他們未滿足的需求，並提供一站式服務來幫助我們的經銷商降低運營成本並提高我們的業務效率。一如既往，我們的最終目標是讓購車變得輕鬆、簡單和愉快。

The macro economy and the overall auto industry are undergoing profound and lasting changes. Although we still see challenges ahead in 2023, we have high expectations for the future and very confident in the long-term development of China's auto industry. Cango will continue to focus on our vision and mission while further improving our standardized automotive transaction service ecosystem.

宏觀經濟和整個汽車行業正在發生深刻而持久的變化。儘管2023年我們依然面臨挑戰，但我們對未來充滿期待，對中國汽車工業的長遠發展充滿信心。 Cango 將繼續專注於我們的願景和使命，同時進一步完善我們標準化的汽車交易服務生態系統。

Together with our dealer partners, we remain dedicated to promoting the recovery and development of the overall industry.

我們將與我們的經銷商合作夥伴一起，致力於促進整個行業的複蘇和發展。

Next, I will turn the call over to Michael Zhang, our CFO, who will take you through the company's financial performance.

接下來，我將把電話轉給我們的首席財務官 Michael Zhang，他將帶您了解公司的財務業績。

Thanks, Jiayuan. Hello, everyone, and welcome to our fourth quarter and full year 2022 earnings call.

謝謝，嘉源。大家好，歡迎來到我們的第四季度和 2022 年全年財報電話會議。

Before I started to review our financials, please note that unless otherwise stated, all numbers are in RMB terms and all percentage comparisons on a year-over-year basis.

在我開始審查我們的財務數據之前，請注意，除非另有說明，否則所有數字均以人民幣計算，所有百分比都是按年比計算的。

Our fourth quarter performance once again illustrate the strength and the resilience of our strategy and business model. Fourth quarter total revenues were CNY 487.1 million. Car trading transaction business delivered revenues of CNY 431.1 million, continuing to play an essential role in our platform.

我們第四季度的業績再次證明了我們戰略和商業模式的實力和彈性。第四季度總收入為 4.871 億元人民幣。汽車貿易交易業務實現收入 4.311 億元人民幣，繼續在我們的平台中發揮重要作用。

Now let's move on to our cost and expenses during the quarter. Total operating costs and expenses in the fourth quarter of 2022 was CNY 698.7 million compared with CNY 1,207.6 million in the same period 2021. Cost of revenue in the fourth quarter of 2022 decreased to CNY 481.7 million from CNY 880.7 million in the same period 2021. As a percentage of total revenue, cost of revenue in the fourth quarter of 2022 was 98.9% compared with 83.8% in the same period 2021. The change was primarily due to a higher contribution from our car trading transaction to total revenues. Car trading transaction normally presents higher cost revenue ratio, thus pushing up the overall ratio.

現在讓我們繼續討論本季度的成本和費用。 2022 年第四季度的總運營成本和費用為人民幣 6.987 億元，而 2021 年同期為人民幣 12.076 億元。2022 年第四季度的收入成本從 2021 年同期的人民幣 8.807 億元下降至人民幣 4.817 億元。 2022 年第四季度的收入成本佔總收入的百分比為 98.9%，而 2021 年同期為 83.8%。這一變化主要是由於我們的汽車交易交易對總收入的貢獻增加。車貿交易通常呈現較高的成本收益比，從而推高整體成本比。

Sales and marketing expenses in the fourth quarter of 2022 decreased to CNY 19.2 million from CNY 73.8 million in the same period 2021. As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2022 was 4% compared with 7% in the same period 2021.

2022 年第四季度的銷售和營銷費用從 2021 年同期的 7,380 萬元人民幣減少至 1,920 萬元人民幣。佔總收入的百分比，2022 年第四季度的銷售和營銷費用為 4%，而 2022 年第四季度為 7% 2021年同期。

General and administrative expenses in the quarter 2022 decreased to CNY 66.2 million from CNY 86.1 million in the same period of 2021. As a percentage of total revenues, general and administrative expense in the fourth quarter was 13.6% compared with 8.2% in the same period 2021.

2022 年季度的一般及行政費用從 2021 年同期的 8610 萬元人民幣減少至 6620 萬元人民幣。第四季度一般及行政費用佔總收入的百分比為 13.6%，而同期為 8.2% 2021.

Research and development expenses in the fourth quarter of 2022 decreased to CNY 8.4 million from CNY 23.6 million in the same period of 2021. As a percentage of total revenues, research and development expenses in the fourth quarter was 1.7% compared with 2.2% in the same period 2021.

2022 年第四季度研發費用從 2021 年同期的人民幣 2360 萬元下降至人民幣 840 萬元。第四季度研發費用佔總收入的百分比為 1.7%，而去年同期為 2.2% 2021 年同期。

Net loss on risk assurance liability in the fourth quarter 2022 was CNY 62.8 million compared with CNY 84.6 million in the same period 2021.

2022 年第四季度風險保障責任淨虧損為 6280 萬元人民幣，而 2021 年同期為 8460 萬元人民幣。

We recorded a loss from operations of CNY 211.6 million in the fourth quarter 2022 compared with CNY 157 million in the same period 2021. Net loss in the fourth quarter was CNY 558.9 million. Non-GAAP adjusted net loss in the fourth quarter 2022 was 533 -- 538 -- CNY 539.9 million. On a per share basis, diluted net loss per ADS in the fourth quarter of 2022 was CNY 4.13 and diluted non-GAAP adjusted net loss per ADS in the same period was CNY 3.99.

我們在 2022 年第四季度錄得運營虧損人民幣 2.116 億元，而 2021 年同期為人民幣 1.57 億元。第四季度淨虧損為人民幣 5.589 億元。 2022 年第四季度非 GAAP 調整後淨虧損為 533 - 538 - 5.399 億元人民幣。按每股計算，2022 年第四季度每股 ADS 攤薄淨虧損為 4.13 元人民幣，同期攤薄非 GAAP 調整後每股 ADS 淨虧損為 3.99 元人民幣。

For the full year 2022, our total net revenues were CNY 2 billion. Total operating costs and expenses were CNY 2.9 billion. Net loss was CNY 1,111.2 million, and non-GAAP adjusted net loss was CNY 952.7 million. Diluted net loss per ADS was CNY 8.11 and diluted non-GAAP adjusted net loss per ADS was CNY 6.95.

2022 年全年，我們的總淨收入為 20 億元人民幣。總運營成本和費用為 29 億元人民幣。淨虧損為人民幣 11.112 億元，非美國通用會計準則調整後的淨虧損為人民幣 9.527 億元。每份 ADS 的攤薄淨虧損為 8.11 元人民幣，每份 ADS 的攤薄非 GAAP 調整淨虧損為 6.95 元人民幣。

Moving on to our balance sheet. As of December 31, 2022, we had cash and cash equivalents of CNY 378.9 million compared with CNY 745 million as of September 30, 2022. As of December 31, 2022, the company had short-term investment of CNY 1.9 billion compared with CNY 2.7 billion as of September 30, 2022.

轉到我們的資產負債表。截至2022年12月31日，我們擁有現金及現金等價物3.789億元人民幣，截至2022年9月30日為7.45億元人民幣。截至2022年12月31日，公司持有短期投資19億元人民幣，相比之下截至 2022 年 9 月 30 日為 27 億美元。

Looking ahead to the first quarter 2023, we're now predicting our total revenues to be between CNY 550 million (sic) [CNY 450 million] and CNY 500 million. Please note that this forecast reflects our current preliminary view on the market and operational conditions, which are subject to change.

展望 2023 年第一季度，我們現在預測我們的總收入將在 5.5 億元人民幣（原文如此）[4.5 億元人民幣] 和 5 億元人民幣之間。請注意，該預測反映了我們目前對市場和運營狀況的初步看法，這些看法可能會發生變化。

This concludes our prepared remarks. Operator, we are now ready to take questions.

我們準備好的發言到此結束。接線員，我們現在準備好接受提問了。

(Operator Instructions) Your first question comes from Shelley Wang from Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Shelley Wang。

[Interpreted] I have two questions. The first question is as Cango has optimized its automotive financing facilitation business; we have also observed a significant decrease in the company's risky assets. So how does this positively impact the company's transformation?

[已翻譯] 我有兩個問題。第一個問題，燦谷優化了汽車融資便利化業務；我們還觀察到公司的風險資產顯著減少。那麼這對公司的轉型有何積極影響？

And the second question is based on the data disclosed by Cango appears that the company has made substantial progress in transformation towards car trading transaction service platform. So what are your advantages compared with your industry peers like other platforms? And also how -- what is your -- what are your advantages compared with dealers in this industry?

而第二個問題，從燦谷披露的數據來看，公司在向汽車交易交易服務平台轉型方面取得了實質性進展。那麼與其他平台相比，您與同行相比有哪些優勢？還有，與這個行業的經銷商相比，你的優勢是什麼？

[Interpreted] I will take your two questions. Thank you, Shelley, for your two questions. So the first -- to answer your first question, our automotive financing facilitation business generated assets on a larger scale and has significantly affected the company's cash flow and could even directly impact on our viability.

[解讀]我來回答你的兩個問題。雪萊，謝謝你的兩個問題。所以第一個——回答你的第一個問題，我們的汽車融資便利化業務產生了更大規模的資產，並顯著影響了公司的現金流，甚至可能直接影響我們的生存能力。

The total outstanding balance of financing transactions we facilitated decreased from CNY 46.7 billion as of December 31, 2021, to CNY 25.6 billion as of December 31, 2022. We expect the number to decrease further over 2023, and we plan to invest a freed-up cash flow in our expansion of self-owned vehicle inventory.

我們促成的融資交易未償餘額總額從 2021 年 12 月 31 日的 467 億元人民幣減少到 2022 年 12 月 31 日的 256 億元人民幣。我們預計這一數字將在 2023 年進一步減少，我們計劃投資一個自由-增加自有車輛存量帶來的現金流。

On your second question, currently, both our new car and used car platforms have taken shape and are generating transactions and -- with a lot of data for us to refer to. In addition to validating the logic behind our transformation, the data shows that capabilities and processes and capacity required to support our car trading transaction business. Once this new model fully running and smoothly, our next steps will be to holistically scale up the business operations and improve profitability. Thank you. That's all from me.

關於你的第二個問題，目前，我們的新車和二手車平台都已經成型，正在產生交易——有很多數據可供我們參考。除了驗證我們轉型背後的邏輯外，數據還顯示了支持我們的汽車交易業務所需的能力、流程和能力。一旦這種新模式全面順利運行，我們的下一步將是全面擴大業務運營並提高盈利能力。謝謝。這都是我的。

(Operator Instructions) Your next question comes from [John Li] from Goldman Sachs.

（操作員說明）您的下一個問題來自高盛的 [John Li]。

[Interpreted] Thank you for giving me this opportunity to ask questions to the management. So I have two questions. The first question is what is your outlook for China's auto market in 2023? And specifically, what is your outlook for your automotive transaction service platform in 2023? And the second question is, could you give us more color on the development of the current used car business in detail?

【解讀】感謝給我這次向管理層提問的機會。所以我有兩個問題。第一個問題，您對2023年中國汽車市場有何展望？具體來說，您對 2023 年的汽車交易服務平台有何展望？第二個問題，能否詳細介紹一下目前二手車業務的發展情況？

[Interpreted] Thank you, John. I will take your two questions. On the first question, on the demand side, 3 years of pandemic policies actually have created a backlog of consumer demand, and we believe this pent-up demand for car purchases will gradually be released. Of course, this is subject to the overall level of economic recovery and policy support.

[翻譯] 謝謝你，約翰。我會回答你的兩個問題。關於第一個問題，在需求端，3年的疫情政策實際上造成了消費需求的積壓，我們相信這種被壓抑的購車需求會逐漸釋放。當然，這取決於經濟復甦的整體水平和政策支持。

On the supply side, traditional car brands launched many new models at the beginning of the year and NEV, new energy vehicle production costs have also decreased as lithium battery supply prices have fallen. Furthermore, NEVs will continue to enjoy an exemption from vehicle purchase taxes. So in 2023, we expect to see more auto market transactions compared with 2022.

供給端，傳統汽車品牌年初推出多款新車型，新能源汽車、新能源汽車生產成本也隨著鋰電池供應價格回落而下降。此外，新能源汽車將繼續免徵車輛購置稅。所以在2023年，我們預計會比2022年看到更多的汽車市場交易。

On your second question on our used car business, we launched the Cango U-Car APP at start of 2023, including an exceptional range of functions, covering historical vehicle condition reports, vehicle evaluation, online auctions, online car searching, used car listing and other digital services. As of the end of 2022, there were 4,492 registered users on Cango U-Car. As of December 31, 2022, the accumulated page views and unique visitors on Cango U-Car mini-program were over 410,000 and 23,000, respectively. We expect a number of transactions on the platform to pick up over time.

關於你的第二個問題，關於我們的二手車業務，我們在2023年初推出了Cango U-Car APP，包括歷史車況報告、車輛評估、在線拍賣、在線搜索、二手車列表和等一系列功能。其他數字服務。截至2022年底，燦谷優車註冊用戶4492人。截至2022年12月31日，燦谷優車小程序累計訪問量超過41萬，獨立訪客超過2.3萬。我們預計平台上的一些交易會隨著時間的推移而增加。

At the same time, by leveraging our advantages such as abundant used car sources, to give you some examples, some of these used cars come from come those sold by the consumers and also those repossessed the cars. Of course, we also have our own cars. So by taking advantage of these abundant used car sources and one-on-one matching services, we have successfully groomed the dealer's platform usage behavior and improve their platform stickiness.

同時，利用我們二手車資源豐富等優勢，舉個例子，這些二手車有的是來自於消費者賣掉的，也有的是收回來的。當然，我們也有自己的車。因此，我們利用這些豐富的二手車資源和一對一的匹配服務，成功地培育了經銷商的平台使用行為，提高了他們的平台粘性。

We have also established professional technician teams and car service teams across the country in the fourth quarter, providing dealers and customers with one-stop value-adding services such as car viewing, car inspection, car loan transfers, et cetera.

四季度我們還在全國建立了專業的技術人員團隊和汽車服務團隊，為經銷商和客戶提供看車、驗車、車貸轉讓等一站式增值服務。

Your next question comes from Brent Lee from (inaudible)

您的下一個問題來自 Brent Lee（聽不清）

I'll just ask a question directly in Chinese.

我就直接用中文問問題吧。

[Interpreted] My question is only abandoned car sources is one of the company's strongest advantages. How will the company leverage and consolidate this advantage in the future?

[解讀] 我的問題只是廢棄的車源是公司最強的優勢之一。公司未來將如何發揮和鞏固這一優勢？

[Interpreted] Thank you, Lee, for your question. You are absolutely right that car sources is one of our strongest advantages in our new car and used car service platform. Our goal is to provide a better service experience to car buyers and car dealers through our car trading transaction business. With a more diversified vehicle supply, we can better meet the individual needs of customers in the lower-tier markets. We hope to leverage our advantages in car sources increase customer stickiness and encourage customers to use other services on our platform.

[已翻譯] 謝謝李老師的提問。你說的對，車源是我們新車二手車服務平台最大的優勢之一。我們的目標是通過我們的汽車交易交易業務，為購車者和汽車經銷商提供更好的服務體驗。通過更加多元化的車輛供應，我們可以更好地滿足低端市場客戶的個性化需求。我們希望利用我們在車源方面的優勢來增加客戶粘性，並鼓勵客戶使用我們平台上的其他服務。

And so on the new car sources, well, we will step up our efforts to explore and develop further our collaborations and partnerships with OEMs. In the fourth quarter, we deep built collaboration with GAC Mitsubishi, Dongfeng Motor, FAW-Volkswagen and FAW Audi. We also became the most important sales platform for GAC Mitsubishi's new Outlander model.

在新車資源方面，我們將加緊努力探索和進一步發展我們與原始設備製造商的合作和夥伴關係。四季度，我們與廣汽三菱、東風汽車、一汽-大眾、一汽奧迪深度合作。我們也成為了廣汽三菱新歐藍德最重要的銷售平台。

On used car sources, well, historically, we have this advantage of having access to a lot of repossessed cars. So in the future, we will use this as a leverage to further grow and scale up our used car business. Thank you.

在二手車資源方面，嗯，從歷史上看，我們擁有獲得大量回收汽車的優勢。因此，在未來，我們將以此為槓桿，進一步發展和擴大我們的二手車業務。謝謝。

Thank you. We have no further questions at this time. I will hand the call back to management for closing remarks.

謝謝。目前我們沒有其他問題。我將把電話轉回管理層以作結束語。

[Interpreted] Thank you all for joining us. That closes today's call. Thank you.

[已翻譯] 感謝大家加入我們。今天的電話會議到此結束。謝謝。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[此抄本中標記為已翻譯的部分是由現場通話中在場的口譯員說的。]