Cango Inc (CANG) 2024 Q4 法說會逐字稿

Good morning, and good evening, everyone. Welcome to Cango Inc's fourth quarter and full year 2024 earnings conference call. (Operator Instructions) 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 2024 年第四季和全年財報電話會議。（操作員指示）本次電話會議也在本公司的 IR 網站上進行現場直播。

Joining us today is Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct a 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 be making forward-looking statements.

今天與我們一起出席的是執行長林嘉元先生；以及公司財務長張永毅先生。在管理階層準備好發言之後，我們將進行問答環節。在我們開始之前，請參閱公司收益報告中的安全港聲明，該聲明也適用於今天的電話會議，因為管理層將做出前瞻性陳述。

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 執行長林嘉遠先生。先生，請繼續。

(interpreted) Hello, everyone, and welcome to Cango's fourth quarter and full year 2024 earnings call. 2024 was a milestone year for Cango, marking another pivotal transformation and growth phase for the company while ushering new development opportunities. Since our inception, Cango has navigated multiple challenges, including macroeconomic downturns, the impact of COVID-19 pandemic and profound shifts across the automotive industry. Despite the ever-evolving external landscape, we have remained committed to developing key market insights and agile business strategies, ensuring our continued adaptability and resilience.

（翻譯）大家好，歡迎參加 Cango 2024 年第四季和全年財報電話會議。 2024年對燦谷來說，是個具有里程碑意義的一年，標誌著公司又一個轉型和成長的關鍵階段，迎來了新的發展機會。自成立以來，Cango 經歷了多重挑戰，包括宏觀經濟衰退、新冠疫情的影響以及汽車產業的深刻變化。儘管外部環境不斷變化，我們始終致力於開發關鍵的市場洞察力和靈活的業務策略，確保我們持續的適應性和彈性。

Since 2021, we have systematically refined our business structure placing a strong emphasis on loan collection and personal management for outstanding loans while strategically transitioning our core business from auto financing facilitation to automotive transaction services. Through a series of effective measures, we have mitigated risks within our financing facilitation business, maintaining our competitive edge amid complex and fast-evolving market landscape.

自2021年起，我們系統地完善了業務結構，重點關注貸款催收和未償貸款的個人管理，同時將核心業務從汽車融資便利化策略轉型為汽車交易服務。透過一系列有效舉措，我們有效降低了融資便利化業務的風險，在複雜多變的市場環境中保持了競爭優勢。

As of the end of 2024, our outstanding loan balance has decreased from a peak of over RMB40 billion to approximately RMB3.9 billion, with M1+ and M3+ ratios at 3.24% and 1.78%, respectively. At the same time, we have reduced our credit risk erosion not covered by debt -- full bad debt allowance or full risk assurance liabilities to RMB1.08 billion. Our cash, cash equivalents and short-term investments amount to approximately RMB2.52 billion, providing ample liquidity to support sustainable growth and strategic initiatives.

截至2024年末，我們的貸款餘額由400多億元高峰下降至約39億元，M1+和M3+比率分別為3.24%和1.78%。同時，我們將未被債務覆蓋的信用風險侵蝕－全額壞帳準備或全額風險保證負債－減少至人民幣10.8億元。我們的現金、現金等價物及短期投資約為人民幣25.2億元，為支持永續成長和策略性措施提供了充足的流動性。

Meanwhile, we've observed that the approval of Bitcoin ETFs in the United States at the beginning of 2024 marked a significant turning point for the cryptocurrency industry. In response, we swiftly initiated a strategic expansion into the cryptocurrency sector. Given this field's immense growth potential, we have further refined our strategic direction, focusing on energy plus computing power at the core of our future development strategy.

同時，我們觀察到，2024年初美國批准比特幣ETF，標誌著加密貨幣產業的重要轉捩點。作為回應，我們迅速啟動了向加密貨幣領域的策略擴張。鑑於該領域巨大的成長潛力，我們進一步完善了策略方向，將能源加算力作為未來發展策略的核心。

In November 2024, we made a critical move in our expansion into the critical mining sector. On November 6, Cango announced our acquisition of on-rack Bitcoin mining machines with an aggregate hashrate of 50 EH for a total purchase price of USD400 million. By November 15, we had taken delivery of 32 EH of mining power, massively boosting our effective computing power and making us the third largest Bitcoin miner globally.

2024年11月，我們在向關鍵採礦領域擴張的道路上邁出了關鍵一步。11月6日，Cango宣布收購機架式比特幣礦機，總算力50EH，收購總價4億美元。截至 11 月 15 日，我們已接收 32 EH 的挖礦算力，大幅提升了我們的有效算力，並使我們成為全球第三大比特幣礦商。

In November and December 2024, we successfully mined 363.9 and 569.9 Bitcoins with effective computing powers of 29.8 EH and 30.4 EH, respectively. During these two months, our mining machines maintained an average operating hashrates of 93% and 95%, respectively, demonstrating robust operational performance. As of December 2024, our total Bitcoin holdings were 933.8.

2024年11月和12月，我們成功開採了363.9個和569.9個比特幣，有效算力分別為29.8 EH和30.4 EH。這兩個月，我們的礦機平均運轉算力分別維持在93%和95%，運轉性能表現強勁。截至 2024 年 12 月，我們的比特幣總持有量為 933.8。

Driven by the Bitcoin mining business, Cango recorded total net revenue of RMB670 million in the fourth quarter of 2024, representing a year-on-year surge of over 400%. Net income for the fourth quarter was RMB55.89 million. For the full year of 2024, the company achieved total revenue of RMB800 million with a net profit of RMB300 million.

在比特幣挖礦業務的帶動下，燦谷2024年第四季總淨營收達6.7億元人民幣，年增逾400%。第四季淨利為5589萬元人民幣。2024年全年，公司實現總營業收入8億元人民幣，淨利3億元。

While actively pursuing new cryptocurrency ventures, we are also making steady progress in the development of our traditional automotive business. Through a combination of online and offline service models, we provide customers with a convenient and efficient used car trading experience.

在積極尋求新的加密貨幣投資的同時，我們的傳統汽車業務的發展也穩步推進。透過線上與線下結合的服務模式，為客戶提供便利、有效率的二手車交易體驗。

In addition, Cango's used car export platform is gradually expanding its presence in international markets. Despite facing certain market challenges, we are confident that by continuously optimizing our supply chain management and enhancing service quality, we will strengthen our brand influence in overseas market and lay a solid foundation for future expansion.

此外，Cango二手車出口平台也逐漸拓展國際市場。儘管面臨一定的市場挑戰，但我們有信心，透過不斷優化供應鏈管理、提升服務質量，將進一步增強我們在海外市場的品牌影響力，為未來的拓展奠定堅實的基礎。

Looking ahead, cryptocurrency mining will be a key strategic focus for our business expansion. With the dual drivers of increasing regulatory oversight and technological updates or upgrades, the industry is poised to sustain its structural growth. Cango intends to deepen our engagement in three key areas: steadily expanding computing power to reinforce our competitive edge; optimizing asset operation efficiencies through intelligent management systems; and broadening our value chain by exploring energy optimization and value-added services to create a more robust and integrated industry ecosystem.

展望未來，加密貨幣挖礦將成為我們業務擴展的關鍵策略重點。在監管力度加大和技術更新或升級的雙重推動下，該行業預計將維持結構性成長。Cango 打算深化我們在三個關鍵領域的參與：穩步擴大運算能力以增強我們的競爭優勢；透過智慧管理系統優化資產營運效率；並透過探索能源優化和增值服務來拓寬我們的價值鏈，以創建更強大和一體化的產業生態系統。

In response to crypto industry fluctuations, we have established a comprehensive market monitoring protocol and a robust policy analysis mechanism to enable agile adjustments to our operational strategies. By implementing a stringent risk control framework and adaptive resource allocation, we can effectively mitigate regulatory shifts and market risks while capitalizing on opportunities driven by technological innovation. This approach ensures sustained growth momentum for Cango's continued expansion in the cryptocurrency sector.

為了因應加密產業的波動，我們建立了全面的市場監測協議和強大的政策分析機制，以便能夠靈活調整我們的營運策略。透過實施嚴格的風險控制框架和自適應的資源配置，我們可以有效地緩解監管變化和市場風險，同時利用技術創新帶來的機會。這種方式確保了Cango在加密貨幣領域持續擴張的持續成長動能。

We would like to take this opportunity to express our gratitude for your continued support and trust. Now I would like to hand over to our CFO, Yongyi Zhang, to share our financial insights for the fourth quarter and full year of 2024.

我們想藉此機會對您一直以來的支持和信任表示感謝。現在，我想交給我們的財務長張永毅，分享我們對 2024 年第四季和全年的財務見解。

Thanks, Jiayuan. Hello, everyone, and welcome to our fourth quarter and full year 2024 earnings call. Before I started to review our financials, please note that unless otherwise stated, all numbers are 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 2024 年第四季和全年財報電話會議。在我開始審查我們的財務狀況之前，請注意，除非另有說明，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 of 2024 were RMB668 million compared with RMB130.2 million in the same period 2023. The significant year-over-year increase was primarily driven by the new crypto mining business launched in November 2024.

2024 年第四季總營收為人民幣 6.68 億元，而 2023 年同期為人民幣 1.302 億元。年比大幅成長主要得益於 2024 年 11 月推出的新加密挖礦業務。

Revenue from the Bitcoin mining business in the fourth quarter of 2024 was RMB653 million, with a total of 933.8 Bitcoins mined and held as of the end of 2024. Revenue from automotive trading-related income in the fourth quarter of 2024 was RMB15 million compared with RMB130.2 million in the same period 2023.

2024年第四季比特幣挖礦業務收入為人民幣6.53億元，截至2024年底共挖出並持有比特幣933.8枚。2024年第四季汽車交易相關收入為人民幣1,500萬元，而2023年同期為人民幣1.302億元。

Now let's move on to our cost and expenses during the quarter. Total operating costs and expenses in the fourth quarter of 2024 were RMB645.5 million compared with RMB159.1 million in the same period 2023. Cost of revenue in the fourth quarter of 2024 increased to RMB550.5 million from RMB110.9 million in the same period 2023. The year-over-year increase was primarily driven by the cost of new crypto mining business. As a percentage of total revenues, cost of revenue in the fourth quarter of 2024 was 82.4% compared with 85.1% in the same period 2023.

現在讓我們來討論本季的成本和費用。2024 年第四季總營運成本和費用為人民幣 6.455 億元，而 2023 年同期為人民幣 1.591 億元。2024年第四季的營收成本從2023年同期的1.109億元增加至5.505億元。年比成長主要是由於新加密挖礦業務的成本。佔總營收的百分比為 2024 年第四季的營收成本為 82.4%，而 2023 年同期為 85.1%。

Sales and marketing expenses in the fourth quarter of 2024 decreased to RMB2.2 million from RMB4.4 million in the same period 2023. As a percentage of total revenues, sales and marketing expenses in the fourth quarter of 2024 was 0.3% compared with 3.4% in the same period 2023.

2024年第四季銷售及行銷費用從2023年同期的440萬元減少至220萬元。2024 年第四季的銷售和行銷費用佔總收入的百分比為 0.3%，而 2023 年同期為 3.4%。

General and administrative expenses in the fourth quarter of 2024 increased to RMB127.9 million from RMB45.6 million in the same period 2023. As a percentage of total revenues, general and administrative expenses in fourth quarter of 2024 were 19.1% compared with 35% in the same period of 2023.

2024年第四季的一般及行政費用從2023年同期的4,560萬元增加到1.279億元。2024 年第四季的一般及行政費用佔總收入的百分比為 19.1%，而 2023 年同期為 35%。

Research and development expenses in the fourth quarter of 2024 decreased to RMB1.3 million from RMB7.3 million in the same period 2023. As a percentage of total revenues, research and development expenses in the fourth quarter of 2024 was 0.2% compared with 5.6% in the same period 2023.

2024年第四季研發費用從2023年同期的730萬元減少至130萬元。2024 年第四季研發費用佔總營收的百分比為 0.2%，而 2023 年同期為 5.6%。

Net loss on contingent risk assurance liability in the fourth quarter of 2024 was RMB4.6 million compared with RMB22.2 million in the same period 2023. Net recovery on provision for credit losses in the fourth quarter of 2024 was RMB66.1 million compared with RMB31.2 million in the same period 2023. We recorded RMB22.5 million in income from operations in the fourth quarter of 2024 compared with loss from operations of RMB28.9 million in the same period 2023.

2024 年第四季或有風險保證責任淨損失為 460 萬元，而 2023 年同期為 2,220 萬元。2024 年第四季信貸損失準備金淨回收為 6,610 萬元，而 2023 年同期為人民幣 3,120 萬元。2024 年第四季，我們的營業收入為 2,250 萬元，而 2023 年同期的營業虧損為 2,890 萬元人民幣。

Net income in the fourth quarter of 2024 was RMB55.9 million compared with net loss of RMB103.8 million in the same period 2023. Non-GAAP adjusted net income in the fourth quarter of 2024 was RMB59.2 million compared with non-GAAP adjusted net loss of RMB99.2 million in the same period of 2023.

2024年第四季淨收入為人民幣5,590萬元，而2023年同期淨虧損為人民幣1.038億元。2024年第四季非美國通用會計準則調整後淨利為5,920萬元人民幣，2023年同期非美國通用會計準則調整後淨虧損為9,920萬元。

On a per share basis, basic and diluted net income per ADS in the fourth quarter of 2024 were RMB0.54 and RMB0.48, respectively. And non-GAAP adjusted basic and diluted net income per ADS in the same period were RMB0.57 and RMB0.51, respectively.

以每股計算，2024年第四季每股美國存託憑證基本淨利和稀釋淨利分別為0.54元人民幣和0.48元人民幣。同期非美國通用會計準則調整後每股美國存託憑證基本淨利和稀釋淨利分別為0.57元及0.51元。

For the full year 2024, our total revenues were RMB804.5 million. Revenue from the Bitcoin mining business was RMB653 million with a total of 933.8 Bitcoins mined and held as of the end of 2024. Revenues from automotive trading-related income was RMB151.5 million. Total operating costs and expenses were RMB625.6 million. Net income was RMB299.8 million, and non-GAAP adjusted net income was RMB316.9 million.

2024年全年，我們的總收入為人民幣8.045億元。比特幣挖礦業務收入為人民幣6.53億元，截至2024年底共開採並持有比特幣933.8枚。汽車貿易相關收入為人民幣1.515億元。總營業成本及費用為人民幣6.256億元。淨利為2.998億元人民幣，非美國通用會計準則調整後淨利為3.169億元。

Basic and diluted net income per ADS was RMB2.88 and RMB2.57, respectively. Non-GAAP adjusted basic diluted net income per ADS was RMB3.04 and RMB2.72, respectively.

每股美國存託憑證基本淨利及攤薄淨利分別為2.88元人民幣及2.57元人民幣。非美國通用會計準則調整後每股美國存託憑證基本攤薄淨利潤分別為3.04元人民幣及2.72元人民幣。

Moving on to our balance sheet. As of December 31, 2024, the company had cash and cash equivalents of RMB1.3 billion compared with RMB691.8 million as of September 30, 2024. As of December 31, 2024, the company had a short-term investment of RMB1.2 billion compared with RMB3.1 billion as of September 30, 2024.

繼續我們的資產負債表。截至 2024 年 12 月 31 日，公司現金及現金等價物為人民幣 13 億元，截至 2024 年 9 月 30 日為人民幣 6.918 億元。截至 2024 年 12 月 31 日，該公司的短期投資為 12 億元，而截至 2024 年 9 月 30 日為人民幣 31 億元。

Looking ahead to the first quarter of 2023, as part of our continued commitment to growth and scaling our capabilities, we are targeting a substantial increase in our hashrate over the coming months. We are on track to grow our deployed hashrate to approximately 50 EH before the end of this quarter. This increase was expected to be driven by the closing of our share settled acquisition of Bitcoin mining assets, position us to strengthen our competitive advantage and increase operational efficiency.

展望 2023 年第一季度，作為我們持續致力於成長和擴展能力的一部分，我們的目標是在未來幾個月內大幅提高哈希率。我們預計在本季末之前將部署的哈希率提高到約 50 EH。預計這一成長將受到我們以股份結算的比特幣挖礦資產收購完成的推動，這將使我們能夠增強競爭優勢並提高營運效率。

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

我們的準備好的演講到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions) Pingyue Wu, Citic Securities.

(操作員指示) 中信證券吳平月。

(spoken in foreign language) The first question is what are the company's expectations for future growth? And my second question is, what's the company's strategic direction? Will we continue to do automotive business after the transformation?

（外語）第一個問題是公司對未來成長的預期是什麼？我的第二個問題是，公司的策略方向是什麼？轉型之後我們還會繼續做汽車業務嗎？

(interpreted) Thank you for your questions. On your first question on our expectation for future growth. Well, first of all, on Bitcoin mining, well, let's use our 32 EH cash-settled hashrates as a basis for a conservative calculation. While on this basis, we forecast an annual production of around 6,000 Bitcoins. We are in the final stage of a share-based transaction to acquire an additional 18 EH of hashrates. So upon completion and delivery, our total computing power will reach 50 EH, significantly increasing our projected annual Bitcoin production.

（翻譯）感謝您的提問。關於您對未來成長的預期的第一個問題。好吧，首先，關於比特幣挖礦，讓我們使用 32 EH 現金結算哈希率作為保守計算的基礎。在此基礎上，我們預測比特幣年產量約為 6,000 個。我們正處於基於股票的交易的最後階段，以獲取額外的 18 EH 哈希率。因此，在完成並交付後，我們的總運算能力將達到 50 EH，從而顯著增加我們預計的比特幣年產量。

And in the first half of 2025, we will prioritize the integration and optimization of our existing hashrates to ensure maximum efficiency. And in the second half, we will pursue a hashrate expansion strategy, actively seeking valuable assets to increase our overall capacity. And on the traditional auto trading business, we expect to export 1,500 used cars in 2025 with a total value of USD15 million.

並且在2025年上半年，我們將優先整合和優化現有的雜湊率，以確保最高效率。下半年，我們將推行算力擴張策略，積極尋找有價值的資產，以提升我們的整體算力。在傳統汽車貿易業務方面，我們預計2025年將出口1,500輛二手車，總價值達1,500萬美元。

On your second question about strategic direction, our primary focus is on expanding our mining operations and maintaining an industry-leading position in computing power. This is not just about numbers or rankings. More importantly, we believe the economies of scale will help create significant opportunities for business growth, enhances our ability to attract top-tier talent and strengthen market competitiveness and industry spending.

關於策略方向的第二個問題，我們的主要重點是擴大我們的採礦業務並保持在運算能力方面的行業領先地位。這不僅與數字或排名有關。更重要的是，我們相信規模經濟將有助於為業務成長創造重大機會，增強我們吸引頂尖人才的能力，並加強市場競爭力和產業支出。

While expanding our mining operations, we will also optimize our existing facilities to maximize both efficiency and profitability. We remain committed to investing and actively exploring new opportunities along the value chain as well as sourcing sustainable lower cost energy solutions. Additionally, we will continue to hold Bitcoins to further optimize our financial model. Meanwhile, we will continue to drive progress in our automotive-related business, especially used car exports, aiming to become a leading asset-light gateway for China's used car exports.

在擴大採礦業務的同時，我們也將優化現有設施，以最大限度地提高效率和獲利能力。我們將繼續致力於投資並積極探索價值鏈上的新機會以及尋找可持續的低成本能源解決方案。此外，我們將繼續持有比特幣，以進一步優化我們的財務模型。同時，我們將繼續推動汽車相關業務，特別是二手車出口業務，致力於成為中國二手車出口領先的輕資產門戶。

That's all for me. Thank you.

對我來說就這些了。謝謝。

Emerson Zhao, Goldman Sachs.

高盛的 Emerson Zhao。

(interpreted) I have three questions. My first question is on why did you decide on going into the Bitcoin mining or cryptocurrency mining industry? Could you give us more color on the reasons?

（翻譯）我有三個問題。我的第一個問題是，您為什麼決定進入比特幣挖礦或加密貨幣挖礦行業？能否詳細說明原因？

And the second question is, will your Bitcoin transactions under -- be under regulation? And my third question is, does the company have any plan to sell your Bitcoin holdings?

第二個問題是，你的比特幣交易是否受到監管？我的第三個問題是，公司是否有計劃出售所持有的比特幣？

(interpreted) Thank you for your questions. I will take all of your three questions together. So why do we decide to go into this industry? Well, we entered the Bitcoin mining sector based on our positive outlook on Bitcoin's future potential. Over the past few years, we have been proactively exploring strategic opportunities for business transformation. Since 2021, we have steadily scaled back our loan facilitation business and systematically exited this sector, which substantially boosted our liquidity.

（翻譯）感謝您的提問。我將綜合回答您的三個問題。那我們為什麼決定進入這個行業呢？好吧，我們基於對比特幣未來潛力的樂觀看法進入了比特幣挖礦領域。過去幾年，我們積極探索業務轉型的策略機會。自2021年以來，我們穩步縮減貸款便利化業務，並有系統地退出該領域，這大大提高了我們的流動性。

As we researched and got involved in energy-related projects such as PV power stations and new energy storage systems, we identified Bitcoin mining as an effective solution for balancing grid loads and utilizing surplus electricity, especially amidst the global surge in computing power demand driven by advancements in artificial intelligence.

在我們研究和參與光電站、新能源儲能係統等能源相關專案的過程中，我們發現比特幣挖礦是平衡電網負載、利用剩餘電力的有效解決方案，尤其是在人工智慧進步推動全球運算能力需求激增的背景下。

So we decided to seize the opportunity and acquired Bitmain's on-rack mining machines in November 2024, which give us industry-leading computing power capacity and quickly established our strong presence in the sector. And about our transaction regulation, the $400 million transaction was conducted entirely offshore and is not subject to regulation by Chinese authorities. And throughout the process, we have maintained close engagement with regulators.

因此，我們決定抓住機會，並在 2024 年 11 月收購了比特大陸的機架式礦機，這使我們擁有了行業領先的運算能力，並迅速確立了我們在該領域的強大地位。關於我們的交易監管，這筆4億美元的交易完全是在境外進行的，不受中國當局的監管。在整個過程中，我們與監管機構保持密切合作。

And also about our future plan for our Bitcoin holdings. Well, given our optimistic outlook on the future of Bitcoin and of cryptocurrency, our strategy for the foreseeable future is to mine and hold. This will also help optimize our financial model. However, we remain open to adjusting our holdings based on market conditions to enhance revenue and manage leverage.

以及我們對比特幣持有的未來計畫。好吧，鑑於我們對比特幣和加密貨幣的未來的樂觀看法，我們在可預見的未來的策略是挖掘和持有。這也有助於優化我們的財務模型。然而，我們仍然願意根據市場情況調整我們的持股，以增加收入和管理槓桿。

Thank you.

謝謝。

Ming Zi Cai, Minsheng Securities.

蔡明子，民生證券。

(interpreted) I have several questions. My first question is that as a participants in this new industry, what is your expectation for Bitcoins prices? And also, could you give us more color on your strategy for your Bitcoin mining business?

（翻譯）我有幾個問題。我的第一個問題是，身為這個新產業的參與者，您對比特幣的價格有何預期？另外，您能否向我們詳細介紹一下您的比特幣挖礦業務策略？

And my second question is that what do you see are the competitive edges of Cango in Bitcoin mining? And do you see others joining the drive to mine Bitcoins in the future? And my next question is about the -- your mining maintenance and also mining fund management. So how do you do that? And what's your plan for '25?

我的第二個問題是，您認為Cango在比特幣挖礦方面的競爭優勢是什麼？您是否認為未來會有其他人加入挖掘比特幣的行列？我的下一個問題是關於你們的採礦維護和採礦基金管理。那麼該如何做呢？您對 25 年有什麼計畫？

(interpreted) Thank you for your questions. Let me answer your questions one by one. So your first question, we anticipate the Bitcoins may trade between $90,000 to $120,000 in 2025 driven by factors such as increased institutional adoption, regulatory approvals and strategic reserves. However, Bitcoin's future price is naturally subject to inherent volatility and uncertainty.

（翻譯）感謝您的提問。讓我一一回答你的問題。所以您的第一個問題是，我們預計，受機構採用率提高、監管部門批准和戰略儲備等因素的影響，2025 年比特幣的交易價格可能在 90,000 美元至 120,000 美元之間。然而，比特幣的未來價格自然會受到固有的波動性和不確定性的影響。

We have secured industry-leading computing power capacity through the two Bitcoin mining machine acquisitions we've announced. As such, we've already established a strong foothold in the sector and a solid foundation for future expansion up and down the digital economy value chain.

我們透過宣布的兩台比特幣礦機收購，確保了業界領先的運算能力。因此，我們已經在該領域站穩了腳跟，並為未來在數位經濟價值鏈上下游的擴張奠定了堅實的基礎。

So on your second question, Cango has been a prominent player in the automotive industry for many years, boasting strong expertise and also strong talent pool. And since 2021, we have comprehensively revaluated our business model and began restructuring to capitalize on new strategic growth opportunities. And since then, our increasing involvement in energy-related projects such as PV, power stations and annual energy storage systems has become a key part of our evolution.

關於您的第二個問題，Cango 多年來一直是汽車行業的傑出參與者，擁有強大的專業知識和人才儲備。自 2021 年以來，我們全面重新評估了我們的商業模式，並開始重組以利用新的策略成長機會。自那時起，我們越來越多地參與光伏、發電站和年度儲能係統等能源相關項目，這已成為我們發展的關鍵部分。

As AI advancements drove surging global demand for computing power, we gradually refined our transformation strategy to focus on energy plus computing power, and we have conducted in-depth research into digital currencies and closely examined projects tied to energy and computing power. This gives us a solid understanding of the industry and strengthened our confidence in pursuing large-scale transactions.

隨著人工智慧的發展帶動全球算力需求的激增，我們逐步完善了能源+算力的轉型策略，深入研究數位貨幣，專注於能源、算力相關的項目。這使我們對業界有了深入的了解，並增強了我們進行大規模交易的信心。

Of course, as the regulatory landscape or market conditions change, we are seeing an increasing number of companies exploring growth opportunities in the crypto mining sector. However, the crypto industry presents high barriers to entry, including the need for substantial capital investment and comprehensive operational readiness. So these are crucial factors that any potential new player must carefully evaluate.

當然，隨著監管環境或市場條件的變化，我們看到越來越多的公司正在探索加密挖礦領域的成長機會。然而，加密產業的進入門檻很高，需要大量的資本投入和全面的營運準備。因此，這些都是任何潛在新玩家必須仔細評估的關鍵因素。

On your third question, we currently manage and operate our mining rigs in partnership with Bitmain. Our overall operations and machine performance are solid with both average operating hashrates and coin production at a highly competitive level within the industry. Moving forward, as our computing capacity continues to expand, we plan to gradually build our in-house operational capabilities and establish a dedicated operations team.

關於您的第三個問題，我們目前與比特大陸合作管理和營運我們的採礦設備。我們的整體營運和機器性能穩健，平均營運哈希率和硬幣產量在行業內都處於極具競爭力的水平。展望未來，隨著我們的運算能力不斷擴大，我們計劃逐步建立內部營運能力並建立專門的營運團隊。

Thank you.

謝謝。

[Sun Zhou], Wushang Securities.

[孫週]，武商證券。

(interpreted) I have a question on the 2025 hashrate target. So could you share with us what is your hashrate target for 2025? And what are the current energy efficiency and electricity cost figures? And what are the company's plans for optimizing energy and reducing costs?

(解釋) 我對 2025 年哈希率目標有疑問。那麼，您能與我們分享 2025 年的哈希率目標嗎？目前的能源效率和電力成本數字是多少？公司在優化能源和降低成本方面有哪些計畫？

(interpreted) Since your question is on hash, so I will hand over the question to our CFO, Michael Zhang.

（翻譯）由於您的問題與哈希有關，因此我將把問題交給我們的財務長 Michael Zhang。

Well, thank you for the question. So when we complete our second acquisition, we will become the second largest publicly listed Bitcoin mining company by computing power, closely trail MARA, the current industry leader. So more suitable mining assets become available, we remain open to expanding our portfolio through additional acquisitions.

嗯，謝謝你的提問。因此，當我們完成第二次收購時，我們將成為運算能力第二大的上市比特幣挖礦公司，緊跟著目前的產業領導者 MARA。因此，當有更多合適的採礦資產可用時，我們仍然願意透過額外的收購來擴大我們的投資組合。

Currently, the average energy consumption of our mining machine is 21.6 joule TH -- per TH. As our mining operations are spread across 5 countries, electricity costs vary due to regional cost variations. Overall, our mining costs mainly consists of hosting fees, which include electricity and equipment depreciation.

目前我們的礦機平均能耗為21.6焦耳TH—每TH。由於我們的採礦業務遍佈 5 個國家，電力成本會因地區成本差異而有所不同。整體來說，我們的挖礦成本主要包括託管費用，其中包括電費和設備折舊費。

The Trump administration has announced plans to expand traditional energy projects which is expected to put downward pressure on overall energy prices. So we will also negotiate for lower electricity costs as we renew our IDC contracts. At the same time, we are actively exploring more cost-effective energy solutions, including potential energy projects in the Middle East and Australia. Thank you.

川普政府宣布擴大傳統能源項目的計劃，預計將對整體能源價格造成下行壓力。因此，我們在續約IDC合約時也會協商降低電力成本。同時，我們也積極探索更具成本效益的能源解決方案，包括中東和澳洲的潛在能源項目。謝謝。

(interpreted) The second question is on the average mining cost per Bitcoin. And also, could you give us more detailed description of your mining farms and mining rigs?

(解釋)第二個問題是關於每個比特幣的平均挖礦成本。另外，您能否向我們詳細介紹一下您的採礦場和採礦設備？

So with mining operations spread across five countries, our electricity costs fluctuate based on our local grid rates. The average cost to mining a Bitcoin, excluding depreciation of mine machine, was USD67,769.9 per Bitcoin in the fourth quarter. We currently operate over 138,000 machines, primarily from S9 series with nearly 90% being water-cooled units.

因此，由於採礦業務遍佈五個國家，我們的電力成本會根據當地電網價格而波動。第四季度，比特幣挖礦平均成本（不包括礦機折舊）為每比特幣 67,769.9 美元。我們目前運作超過 138,000 台機器，主要來自 S9 系列，其中近 90％ 是水冷裝置。

Approximately 40% of these machines are located in the United States, distributed across multiple states, including South Carolina, Arkansas, Oklahoma. The remainder are spread across East Africa, Oman, Paraguay and Canada, forming a diversified global footprint.

其中約40%的機器位於美國，分佈在南卡羅來納州、阿肯色州、俄克拉荷馬州等多個州。其餘分佈在東非、阿曼、巴拉圭和加拿大，形成了多元化的全球足跡。

(interpreted) And my last question is on cash flow. So after these strategic transactions, will there still be enough cash flow to support your business expansion?

（翻譯）我的最後一個問題是關於現金流的。那麼在這些策略交易之後，是否還有足夠的現金流來支持您的業務擴張？

We thoroughly assess our cash flow position before moving forward with this strategic acquisition. While the total transaction value was USD400 million, only USD256 million will be settled in cash with the remainder executed through a stock-for-stock acquisition.

在推動此次策略收購之前，我們會徹底評估我們的現金流狀況。雖然交易總價值為 4 億美元，但只有 2.56 億美元將以現金結算，其餘部分將透過換股收購的方式進行。

So even after completion this transaction, we still have sufficient cash and liquidity to support our operations. We are closely monitoring our cash flow to make sure that we have ample liquidity to address various scenarios. We are also actively exploring ways to enhance capital efficiency and ensure our -- ensure we optimize our use of financial resources. Thank you.

因此，即使完成此交易後，我們仍然有足夠的現金和流動性來支持我們的營運。我們正在密切監控我們的現金流，以確保我們有足夠的流動性來應對各種情況。我們也正在積極探索提高資本效率的方法，確保我們優化財務資源的使用。謝謝。

(interpreted) My last question is about the price volatility of Bitcoins. Will this kind of volatility have a big impact on your performance?

（翻譯）我的最後一個問題是關於比特幣的價格波動。這種波動會對您的業績產生重大影響嗎？

Our strategy is to mine and hold Bitcoin. So as we view our Bitcoin's price fluctuations largely short term and are optimistic about its long-term value. So we are very confident that Bitcoin will positively impact the company's performance in the long run. At the same time, from the financial security and liquidity perspective, we will maintain substantial capital reserves to manage potential price volatility. Thank you.

我們的策略是挖掘並持有比特幣。因此，我們認為比特幣的價格波動主要是短期的，並對其長期價值樂觀。因此，我們非常有信心，比特幣將對公司的長期業績產生正面影響。同時，從財務安全和流動性的角度，我們將保持大量的資本儲備，以管理潛在的價格波動。謝謝。

Thank you. And that concludes the question-and-answer session. Thank you, once again, for joining Cango's fourth quarter and full year 2024 earnings conference call today. Have a great day, and you may now disconnect your lines. Thank you.

謝謝。問答環節到此結束。再次感謝您今天參加 Cango 2024 年第四季和全年財報電話會議。祝您有美好的一天，現在您可以斷開線路了。謝謝。

(interpreted) This concludes today's session. Thank you all for joining us.

（翻譯）今天的會議到此結束。感謝大家的參與。

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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。