Cango Inc (CANG) 2023 Q4 法說會逐字稿

Good morning and good evening, everyone. Welcome to Cango Inc.'s fourth quarter and fiscal year 2023 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.

大家早安，晚上好。歡迎參加 Cango Inc. 第四季和 2023 財年財報電話會議。此時，所有參與者都處於只聽模式。該電話會議也在該公司的 IR 網站上進行了現場直播。

Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session.

今天加入我們的是執行長林嘉源先生；張勇毅先生，公司財務長。在管理階層準備好發言後，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，我請您參閱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 am now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir.

話雖如此，我現在將電話轉給燦谷執行長林嘉源先生。請繼續，先生。

(interpreted) Hello, everyone, and welcome to Cango's fourth-quarter 2023 earnings call.

（翻譯）大家好，歡迎參加 Cango 2023 年第四季財報電話會議。

2023 proved to be a year of resilience in the face of headwinds. While a long-term economic recovery remained on the horizon, the confluence of domestic and international factors caused a temporary slowdown. This resulted in slower-than-anticipated growth and dampened consumer confidence.

事實證明，2023 年是面對逆風仍能維持韌性的一年。經濟長期復甦雖有曙光，但國內外因素共同作用導致經濟暫時放緩。這導致成長慢於預期並削弱了消費者信心。

In the automotive sector, the traditional fuel vehicle market contracted steadily, while new energy vehicles, NEVs, experienced a new market share, sparking fierce competition within the segment. Transports became the norm in the auto sales landscape triggering a necessary restructuring within the industry. This shift saves the larger players and accelerated the survival of the fittest scenario. Dealerships, particularly smaller ones in lower-tier markets, faced a significant operational challenges, especially in the latter half of the year.

汽車領域，傳統燃油車市場持續萎縮，新能源汽車市佔率再創新高，產業競爭激烈。運輸成為汽車銷售領域的常態，引發了產業內必要的重組。這種轉變拯救了規模較大的參與者，並加速了適者生存的情況。經銷商，特別是低線市場的小型經銷商，面臨重大的營運挑戰，特別是在今年下半年。

In spite of challenging market environment in 2023, Cango delivered total revenue of RMB130 million in Q4 and RMB1.7 billion for the full year. The company strategically reduced its total outstanding facility financing transactions to approximately RMB10 billion by year end. Our credit metrics remain stable with M1 plus and M3 plus delinquency rates at 2.66% and 1.37%, respectively, reducing our risk exposure further. And to mitigate this dynamic market, Cango implemented a strict cost reduction measures and efficiency enhancements successfully lowering operating expenses.

儘管2023年市場環境充滿挑戰，燦谷第四季總收入達1.3億元，全年總收入達17億元。截至年底，公司策略性地將未償還融資交易總額減少至約人民幣100億元。我們的信用指標保持穩定，M1+ 和 M3+ 拖欠率分別為 2.66% 和 1.37%，進一步降低了我們的風險敞口。為了緩解這個充滿活力的市場，Cango 實施了嚴格的成本削減措施和效率提升，成功降低了營運成本。

Notable, Cango maintains its full financial position backed a robust liquidity and import cash reserves. As of December 31, 2023, the company posted RMB3.3 billion in cash, cash equivalents, and short-term investment, as well as restricted cash that is bank deposits and short-term investments. This strong financial foundation provides a springboard for the sustainable growth of our existing businesses and field product exploration of newfound (inaudible).

值得注意的是，Cango 保持了完整的財務狀況，支持強勁的流動性和進口現金儲備。截至2023年12月31日，公司現金、現金等價物及短期投資、銀行存款及短期投資等限制性現金為人民幣33億元。這項強大的財務基礎為我們現有業務的可持續成長和新發現的現場產品探索提供了跳板（聽不清楚）。

To adapt to evolving market conditions and capitalizing industry trends, we took proactive steps to streamline our operations. These included clearing our new kind of inventory and consolidating our platforms into a single powerful solution.

為了適應不斷變化的市場條件和利用行業趨勢，我們採取了積極措施來簡化我們的營運。其中包括清理我們的新型庫存並將我們的平台整合為一個強大的解決方案。

In Q4, we successfully merged our new car platform, Cango Haoche into Cango U-Car, our used car platform. This strategic move optimizes resource allocation and boost operational efficiency. The upgraded Cango U-Car APP now functions as a comprehensive online marketplace. It connects upstream vehicle suppliers, aftermarket service providers, and downstream to more dealers in lower-tier cities. This integrated platform offers users a full suite of services throughout via used car transaction process, catering to three main scenarios. And that is: online auctions, dealer-to-dealer transactions, and broker's assistance deals.

第四季度，我們成功地將新車平台Cangohaoche合併到二手車平台CangoU-Car。這項策略性舉措優化了資源配置並提高了營運效率。升級後的Cango U-Car APP現已成為一個綜合性的線上市場。它連接上游的汽車供應商、售後服務供應商，以及下游的更多低線城市經銷商。此綜合平台透過二手車交易流程為使用者提供全套服務，滿足三個主要場景。那就是：線上拍賣、經銷商對經銷商的交易以及經紀人的協助交易。

Cango U-Car goes beyond facilitating transactions. We provide a robust ecosystem of services that includes access to historical vehicle reports, vehicle evaluation and inspection, logistics and delivery, insurance solutions, and supply chain financing. Our revenue streams will primarily come from upstream store rentals, membership subscriptions, and transaction related service fees.

Cango U-Car 的作用不僅僅是促進交易。我們提供強大的服務生態系統，包括存取歷史車輛報告、車輛評估和檢查、物流和交付、保險解決方案和供應鏈融資。我們的收入來源主要來自上游店租、會員訂閱及交易相關服務費。

We streamline operations within the integrated Cango U-Car platform in Q4. This included the introduction of a fixed price, dental and transaction service for cross-regional used car purchases. This innovative service simplifies and secures long distance transactions by offering price verification, vehicle inspection guarantees, and delivery services.

我們在第四季度簡化了 Cango U-Car 整合平台內的營運。其中包括為跨區域二手車購買引入固定價格、牙科和交易服務。這項創新服務透過提供價格驗證、車輛檢驗保證和送貨服務，簡化並保障了長途交易。

By Q4, 38 apps during third-party sellers have set of stores on Cango U-Car offering a comprehensive selection of vehicles, including new and used cars along with traffic generation services. By leveraging our expertise in sales funnel management, we identified 9,887 potential business leads in Q4, with the [first place] converted a significant portion of leases providing services to 3,499 online small dealers and facilitating 530 used car transactions.

截至第四季度，已有 38 個第三方賣家應用程式在 Cango U-Car 上開設了一系列商店，提供全面的車輛選擇，包括新車和二手車以及流量產生服務。透過利用我們在銷售漏斗管理方面的專業知識，我們在第四季度確定了9,887 個潛在業務線索，[第一名]轉換了很大一部分租賃，為3,499 個線上小型經銷商提供服務，並促進了530 筆二手車交易。

Besides attracting third-party sellers, we are also maximizing engagement and exploring new opportunities through our self-operated stores. These stores offer a diverse range of services in all key areas. First, the repossessed car management. We handled repossessed vehicles primarily sourced from our auto financing business and collaborations with other lenders.

除了吸引第三方賣家外，我們還透過自營商店最大限度地提高參與度並探索新的機會。這些商店在所有關鍵領域提供多樣化的服務。一是回收汽車管理。我們處理的收回車輛主要來自我們的汽車融資業務以及與其他貸款人的合作。

[Secondly], B2B lead conversion, which transforms individual customer leads into tradable assets facilitating transactions between them and dealers on our platform. We initially focused on existing financing customers, but now we have expanded lead sources in Q4 to boost conversion rates.

[其次]，B2B線索轉換，將個人客戶線索轉化為可交易資產，促進他們與我們平台上的經銷商之間的交易。我們最初專注於現有的融資客戶，但現在我們在第四季度擴大了潛在客戶來源，以提高轉換率。

Thirdly, the B2B transaction facilitation. We provide transaction and logistics supports for small dealer-to-dealer sales.

三是B2B交易便利化。我們為小型經銷商對經銷商的銷售提供交易和物流支援。

And fourthly, we have expanded our insurance services. Our insurance teams offers comprehensive coverage, including auto insurance, and as of Q4, non-auto options like work injury or work insurance for key regional clients.

第四，我們擴大了保險服務。我們的保險團隊提供全面的保險，包括汽車保險，並且從第四季度開始，為主要區域客戶提供工傷或工作保險等非汽車保險。

At Cango U-Car, we understand that a superior user experience hinders on only a strong technological foundation. In Q4, we deployed essentially a platform leveraging our digital expertise to optimize resource matching for vehicle inventory, customer needs, and auto financing. This powerful tool, combined with our standardized streamlined and intelligent transaction services aims to create a nationwide network for efficient used car circulation.

在 Cango U-Car，我們知道卓越的使用者體驗只有強大的技術基礎才能實現。在第四季度，我們基本上部署了一個平台，利用我們的數位專業知識來優化車輛庫存、客戶需求和汽車融資的資源匹配。這款強大的工具與我們標準化、流程化、智慧化的交易服務相結合，旨在打造覆蓋全國的二手車高效流通網路。

Furthermore, we remain dedicated to empowering small dealerships. We offer services that help them reduce operating costs and diversify revenue streams, especially during challenging market conditions. Ultimately, our goal is to enhance their survival rate and overall success.

此外，我們仍然致力於為小型經銷商提供支援。我們提供的服務可協助他們降低營運成本並實現收入來源多元化，尤其是在充滿挑戰的市場條件下。最終，我們的目標是提高他們的生存率和整體成功率。

Cango's vision remains steadfast to become an industry leader by continuously refining and offering top notch services and products across the entire automotive value chain.

Cango 的願景仍然堅定，即透過不斷完善和提供整個汽車價值鏈的一流服務和產品，成為行業領導者。

Cango U-Car's online marketplace is just one step into our growth strategy. We see significant potential in China's version in used car export market, unlike the fierce competition within the domestic market. China, as the world's largest auto manufacturer and the consumer processes the back haul of used cars, a gold mine for exporters. Additionally, government policies are fostering a more transparent regulated used car market. This translates into higher quality and more reliable vehicles that are competitors internationally.

Cango U-Car 的線上市場只是我們成長策略的第一步。與國內市場的激烈競爭不同，我們看到中國版二手車出口市場的巨大潛力。中國作為世界上最大的汽車製造商和消費國，處理二手車的回程，對出口商來說是一座金礦。此外，政府政策正在培育更透明、受監管的二手車市場。這意味著更高品質、更可靠的車輛在國際上具有競爭力。

Furthermore, China's robust auto manufacturing and parts supply chain keep used car prices competitive globally, leveraging its position as the top international trading nation. China boasts a well-developed logistics network, ensuring efficient and secure delivery of used cars to international buyers.

此外，中國強大的汽車製造和零件供應鏈使其二手車價格在全球具有競爭力，並充分利用了其作為國際最大貿易國的地位。中國擁有發達的物流網絡，確保二手車有效率且安全地交付給國際買家。

China's position as the world's leading auto airport with over 5 million vehicles shipped in 2023 and a projected upwards trend presents a compelling opportunity for the used car export market. Recognizing this potential, Cango is actively pursuing this exciting new venture.

中國作為世界領先的汽車機場，到 2023 年運輸量將超過 500 萬輛，並且預計呈上升趨勢，這為二手車出口市場提供了誘人的機會。Cango 意識到這項潛力，正在積極開展這項令人興奮的新事業。

Leveraging our extensive experience and our present China's domestic auto market combined with the advantage of being a US-listed company, which brings us access to capital and broader market reach, we've launched a comprehensive used car information exchange and export service platform. This innovative platform integrating both online and offline resources cater specifically to auto dealers, the emerging and developing countries. By partnering with Cango, these international dealers gain easy access to China's vast pool of used vehicles, a significant advantage in today's global market.

憑藉我們豐富的經驗和目前中國國內汽車市場的優勢，結合美國上市公司的資金優勢和更廣泛的市場影響力，我們推出了綜合性的二手車資訊交換和出口服務平台。這個整合線上線下資源的創新平台專門針對汽車經銷商、新興國家和發展中國家。透過與 Cango 合作，這些國際經銷商可以輕鬆獲得中國大量的二手車，這在當今的全球市場上是一個顯著的優勢。

AutoCango, our cross-border used car information exchange platform, or triple wwwa.autocango.com, was launched in early March 2024 with an in-process inventory exceeding 75,000 SKUs. This platform is constantly growing with approximately 501,000 new vehicles added in replay.

我們的跨國二手車資訊交換平台AutoCango（或三聯wwwa.autocango.com）於2024年3月上旬上線，在製品庫存超過75,000個SKU。該平台不斷發展，重播中添加了約 501,000 輛新車輛。

Leveraging cutting edge AI technology, AutoCango empowers users with an intuitive search experience, making it easier than ever to find the perfect car. Furthermore, our platform prioritizes using directions, ensuring it caters to each customer's evolving needs. Transparency, efficiency, and security are at the core of AutoCango. We are committed to providing a seamless and secure experience for all users with the ultimate goal of becoming the go-to platform for overseas buyers, seeking high-quality used cars from China.

AutoCango 利用尖端的人工智慧技術，為用戶提供直覺的搜尋體驗，讓他們比以往更輕鬆地找到完美的汽車。此外，我們的平台優先考慮使用方向，確保滿足每位客戶不斷變化的需求。透明度、效率和安全性是 AutoCango 的核心。我們致力於為所有用戶提供無縫、安全的體驗，最終目標是成為海外買家尋找中國優質二手車的首選平台。

While acknowledging the current market complexities, we remain bullish on the long-term potential of China's auto industry and the strength of Cango's end-to-end service model. In 2024, we are committed to solidifying our position within the auto transaction market, pioneering digital innovation and leveraging AI to enhance our platform and user experience, as well as expanding our offerings by introducing new products and services across the entire value chain. By working along with our dealer partners, these initiatives will allow us to create significant value and become a key player in China's dynamic, technology-driven automotive landscape.

在承認當前市場複雜性的同時，我們仍然看好中國汽車產業的長期潛力以及燦谷端到端服務模式的實力。2024年，我們致力於鞏固我們在汽車交易市場的地位，開拓數位創新，利用人工智慧來增強我們的平台和用戶體驗，並透過在整個價值鏈上推出新產品和服務來擴展我們的產品和服務。透過與我們的經銷商合作夥伴合作，這些舉措將使我們能夠創造巨大的價值，並成為中國充滿活力、技術驅動的汽車領域的關鍵參與者。

Now, I hand over to our Chief Financial Officer, Mr. Zhang, for a review of the company's financial performance.

現在，我請我們的財務長張先生對公司的財務表現進行審查。

Thanks, Jiayuan. Hello, everyone, and welcome to our fourth quarter and full-year 2023 earnings call. Before I started to review our financials, please note that, unless otherwise stated, all numbers in RMB terms and all percentage comparisons are on a year-over-year basis.

謝謝嘉源。大家好，歡迎參加我們的 2023 年第四季和全年財報電話會議。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，所有百分比比較均以同比為基礎。

Total revenue in the fourth-quarter 2023 were RMB130.2 million compared with RMB487.1 million in the same period 2022. Guarantee income, which represents the fee income earned on a non-contingent aspect of our guarantee, was RMB42.1 million in the fourth quarter.

2023年第四季的總收入為人民幣1.302億元，而2022年同期的總收入為人民幣4.871億元。第四季的擔保收入（即非或有擔保所賺取的費用收入）為 4,210 萬元人民幣。

Now let's move on to our cost and expenses during the quarter. Total operating costs and expenses in Q4 2023 were RMB159.1 million compared with RMB698.7 million in the same period 2022.

現在讓我們繼續討論本季的成本和支出。2023 年第四季的總營運成本和費用為人民幣 1.591 億元，而 2022 年同期為人民幣 6.987 億元。

Cost of revenue in the fourth quarter decreased to RMB110.9 million from RMB481.7 million in the same period 2022. As a percentage of total revenues, cost of revenue in the fourth quarter of 2023 was 85.1% compared with 98.9% in the same period 2022.

第四季的收入成本從2022年同期的人民幣4.817億元下降至人民幣1.109億元。2023年第四季的營收成本佔總營收的比例為85.1%，而2022年同期為98.9%。

Sales and marketing expenses in the fourth quarter decreased to RMB4.4 million from RMB19.2 million in the same period 2022. As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2023 were 3.4% compared with 4% in the same period 2022.

第四季銷售和行銷費用從2022年同期的人民幣1,920萬元減少至人民幣440萬元。2023 年第四季銷售和行銷費用佔總收入的百分比為 3.4%，而 2022 年同期為 4%。

General and administrative expenses in the fourth quarter decreased to RMB45.6 million from RMB66.2 million in the same period 2022. As a percentage of total revenues, general and administrative expenses in Q4 2023 were 35% compared with 13.6% in the same period 2022.

第四季的一般及管理費用從 2022 年同期的 6,620 萬元減少至 4,560 萬元。2023 年第四季的一般及管理費用佔總收入的百分比為 35%，而 2022 年同期為 13.6%。

Research and development expenses in Q4 decreased to RMB7.3 million from RMB8.4 million in the same period 2022. As a percentage of total revenues, research and development expenses in Q4 2023 were 5.6% compared with 1.7% in the same period 2022.

第四季的研發費用從 2022 年同期的 840 萬元人民幣下降至 730 萬元。2023 年第四季的研發費用佔總營收的百分比為 5.6%，而 2022 年同期為 1.7%。

Net loss on contingent risk assurance liability in the fourth quarter were RMB22.2 million.

第四季或有風險保證負債淨虧損為人民幣2,220萬元。

Net recovery on provisions for credit losses in the fourth quarter or RMB31.2 million. The recovery was primary due to the positive impact of collections of financing receivables.

第四季信用損失撥備淨收回人民幣3,120萬元。復甦主要是由於應收融資款催收的正面影響。

We recorded RMB28.9 million in loss from operation in the fourth quarter of 2023 compared with RMB211.6 million in the same period 2022.

2023 年第四季度，我們錄得經營虧損 2,890 萬元人民幣，而 2022 年同期為 2.116 億元。

Net loss in the fourth quarter was RMB103.8 million. Non-GAAP adjusted net loss in the fourth quarter was RMB99.2 million. On a per share basis, basic and diluted net loss per ADS in the fourth quarter 2023 were both RMB0.95 respectively. And non-GAAP adjusted basic and diluted net loss per ADS in the same period were both RMB0.91 respectively.

第四季淨虧損為人民幣1.038億元。非公認會計準則第四季調整後淨虧損為人民幣9920萬元。以每股計算，2023年第四季每股美國存託股基本虧損及攤薄淨虧損分別為0.95元人民幣。同期非美國通用會計準則調整後每股美國存託股基本虧損和稀釋後淨虧損分別為人民幣0.91元。

For the full year of 2023, our total net revenue were RMB1.7 billion. Total operating cost and expenses were RMB1.8 billion. Net loss was RMB37.9 million and non-GAAP adjusted net income was RMB0.6 million.

2023年全年，我們的總淨收入為人民幣17億元。總營運成本及費用為人民幣18億元。淨虧損為人民幣 3,790 萬元，非 GAAP 調整後淨利為 60 萬元。

Basic and diluted net loss per ADS were both RMB0.31. Non-GAAP adjusted basic net income per ADS was RMB0.01, and non-GAAP adjusted diluted net income was zero, respectively.

每份美國存託股份的基本及攤薄淨虧損均為人民幣0.31元。非美國通用會計準則調整後每股美國存託股基本淨利為人民幣0.01元，非美國通用會計準則調整後稀釋淨利為零。

Moving on to our balance sheet. As of December 31, 2023, the company had cash and cash equivalents of RMB1 billion compared with RMB665.6 million as of September 30, 2023.

繼續我們的資產負債表。截至2023年12月31日，公司擁有現金及現金等價物為人民幣10億元，截至2023年9月30日為人民幣6.656億元。

As of December 31, 2023, the company had short-term investments of RMB635.1 million, while the company had restricted cash current bank deposit held for short-term investments of RMB1.7 billion. As of September 30, 2023, the company had short-term investment of RMB2.4 billion.

截至2023年12月31日，公司短期投資為人民幣635.1百萬元，公司為短期投資而持有的限制性現金活期銀行存款為人民幣17億元。截至2023年9月30日，公司短期投資為人民幣24億元。

Looking ahead to the first-quarter 2024, we are now projecting our total revenues to be between RMB50 million and RMB100 million. Please note that this forecast reflects our current and preliminary view on the market and operational conditions, which are subject to change.

展望2024年第一季，我們預期總營收將在5,000萬元至1億元人民幣之間。請注意，這項預測反映了我們對市場和營運狀況的當前初步看法，這些看法可能會改變。

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

我們準備好的演講到此結束。接線員，我們現在準備好回答問題。

(Operator Instructions) (technical difficulty). Thank you.

（操作說明）（技術難度）。謝謝。

Emerson, Goldman Sachs.

艾默生、高盛。

(interpreted) Thank you. Emerson from Goldman Sachs. Three questions. First question, we noticed that the company has entered a strategic partnership with Caocao Mobility. Can the management share some details on this progress?

（翻譯）謝謝。來自高盛的艾默生。三個問題。第一個問題，我們注意到該公司已與曹操出行達成策略夥伴關係。管理階層能否分享一些有關這項進展的細節？

And second question is that we noticed the company's currency houses essential cash position. Now the company issue dividends -- distribute dividends.

第二個問題是，我們注意到該公司的貨幣擁有重要的現金部位。現在公司發放股利－派發股利。

And my third question is what are the key factors in Cango U-Car before and after integration?

我的第三個問題是，Cango U-Car整合前後的關鍵因素是什麼？

(interpreted) Thank you, Emerson, for your questions. For your first question, Caocao Mobility is a leading domestic shared mobility platform. It provides users with smarter, greener, and healthier travel experiences. And Cango was a powerhouse in automotive trading and aftermarket businesses. Our extensive network of fast vehicle inventory will enable us to continue to seize opportunities in China's high-growth lower-tier markets.

（翻譯）艾默生，謝謝你的提問。關於你的第一個問題，曹操出行是國內領先的共享旅遊平台。為使用者提供更智慧、更綠色、更健康的出行體驗。Cango 是汽車貿易和售後市場業務的巨頭。我們廣泛的快速車輛庫存網路將使我們能夠繼續抓住中國高成長的低線市場的機會。

Currency IT teams from both parties are working together on the backend system and program developments. We will provide regular updates to keep everyone informed of the latest developments as they are told.

雙方貨幣IT團隊正在共同致力於後端系統和程序開發。我們將定期提供更新，讓每個人都了解最新進展。

On your second question, since going public, we've established a track record of rewarding shareholders with consistent dividends to further solidify confidence in Cango's long-term growth trajectory. For further dividend plans, we are maintaining a prudent approach, carefully considering factors, like overall strategic plans, business developments, and our cash flow positions to ensure a sustainable dividend policy.

關於你的第二個問題，自上市以來，我們已經建立了以持續股息回報股東的記錄，進一步堅定了對Cango長期成長軌蹟的信心。對於進一步的股利計劃，我們將保持審慎的態度，仔細考慮整體策略計劃、業務發展和現金流狀況等因素，以確保可持續的股利政策。

On your third question, prior to integration, Cango U-Car functions as a standalone platform dedicated to used car transactions. This included 14 vehicles facilitating cost pressures and hosting online auctions.

關於你的第三個問題，在整合之前，Cango U-Car作為一個專門用於二手車交易的獨立平台。其中包括 14 輛汽車，以緩解成本壓力並舉辦線上拍賣。

Following the integration, Cango U-Car has evolved beyond the used car platform in both the comprehensive marketplace, featuring third-party sellers of renew car sales, insurance, and traffic generation services. We are committed to continuously expanding this ecosystem by integrating even more third-party vendors fostering a more dynamic and enriching user experience.

整合後，Cango U-Car 已經超越了二手車平台，進入了綜合市場，以第三方賣家提供更新汽車銷售、保險和流量產生服務。我們致力於透過整合更多的第三方供應商來不斷擴展這個生態系統，從而創造出更動態和豐富的使用者體驗。

Thank you.

謝謝。

Bing Liu, CICC Securities.

劉兵，中金證券。

I am Bing Liu from CICC securities. I have two questions. So first question is could management share your insights for 2023 automotive market and provide outlook for 2024?

我是中金證券的劉兵。我有兩個問題。那麼第一個問題是管理階層能否分享您對 2023 年汽車市場的見解並提供 2024 年的展望？

My second question is on the used car export business. What about the progress and has the company considered working with some KOLs?

我的第二個問題是關於二手車出口業務的。進展如何？公司有考慮與一些KOL合作嗎？

Thank you for your questions.

謝謝您的提問。

On your first question, despite a sluggish start in 2023, the automotive market accelerated towards the latter part of the year and into early 2024. This momentum was fueled by a series of promotional activities caused by car manufacturers. We anticipate these price reductions to persist for some time. However, the intense competition within the industry has resulted in margin pressure for various players throughout the supply chain.

關於第一個問題，儘管2023年汽車市場開局緩慢，但從下半年到2024年初，汽車市場加速成長。這一勢頭是由汽車製造商發起的一系列促銷活動所推動的。我們預計這些降價將持續一段時間。然而，行業內的激烈競爭給整個供應鏈中的各個參與者帶來了利潤壓力。

2024 outlook NEV penetration rate has been surging over a year's growth from 28% in 2022 to 35% in 2023, and is expected to reach 40% by 2024. These rapid shifts intensifying competition within the NEV segment, as well as the completion of the vehicle segments. While traditional gasoline-powered vehicles remain profitable, their market share is contracting rapidly. NEV is experiencing robust sales growth, but manufacturers are currently absorbing significant losses. So this contrasting dynamic presents substantial pressure on the overall market.

2024年展望 新能源汽車滲透率經過一年的成長，從2022年的28%飆升至2023年的35%，預計到2024年將達到40%。這些快速變化加劇了新能源汽車領域的競爭以及汽車領域的完善。雖然傳統汽油動力汽車仍然有利可圖，但其市場份額正在迅速萎縮。新能源汽車的銷售成長強勁，但製造商目前正在承受重大損失。因此，這種對比鮮明的動態給整個市場帶來了巨大的壓力。

On your second question, our used car export business. In March 2024, we launched AutoCango, the first-of-its-kind cross-border information exchange platform for used car market. AutoCango bridges the gap in information services by connecting domestic Chinese used car dealers with foreign buyers, specifically targeting auto dealers in left-hand drive markets across emerging economies.

關於第二個問題，我們的二手車出口業務。2024年3月，我們推出了首個跨國二手車市場資訊交換平台AutoCango。AutoCango 透過將中國國內二手車經銷商與外國買家聯繫起來，縮小了資訊服務的差距，特別針對新興經濟體左駕市場的汽車經銷商。

This [furthers] China's position as the world's largest auto market. AutoCango empowers the international buyers with easy access to a vast pool of quality used cars. Powered by innovative AI technology, our platform streamlines the user experience enhancing vehicle discovery, search efficiency, and user interaction to precisely meet evolving customer needs. AutoCango prioritizes transparency, efficiency, and security throughout the entire transaction process ensuring a smooth and secure experience for all parties involved.

這[進一步]中國作為全球最大汽車市場的地位。AutoCango 讓國際買家能夠輕鬆獲得大量優質二手車。在創新人工智慧技術的支援下，我們的平台簡化了用戶體驗，增強了車輛發現、搜尋效率和用戶交互，以精確滿足不斷變化的客戶需求。AutoCango 在整個交易過程中優先考慮透明度、效率和安全性，確保所有參與者獲得順暢、安全的體驗。

On partnership, we are open to partnership opportunities that align with the following criteria. Firstly, profitability. We prioritize ventures with clear business models and transparent cost of structures. And secondly, long-term growth potential. However, to ensure efficient resource allocation, we conduct regular assessments within defined timeframes. Thank you.

關於合作關係，我們對符合以下標準的合作機會持開放態度。首先，盈利能力。我們優先考慮具有清晰商業模式和透明結構成本的企業。其次，長期成長潛力。然而，為了確保有效的資源分配，我們在規定的時間內定期進行評估。謝謝。

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

謝謝。目前我們沒有進一步的問題。我現在將把電話交還給管理層以供結束語。

Thank you all for your participation. That closes today's earnings call.

感謝大家的參與。今天的財報電話會議到此結束。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。