Cango Inc.’s (CANG.US) latest quarterly results show its transformation shifting into a new phase, as it posted strong growth for the young car-trading platforms at the heart of its new business model. But its top line revenue remained squarely in contraction territory, and its bottom line stayed in the red, with no signals of relief for either of those two key metrics until later this year.
https://www.prnewswire.com/news-releases/cango-inc-reports-fourth-quarter-and-full-year-2022-unaudited-financial-results-301767948.html
Cango is part of a group that piled into financial services when Beijing first rolled out the welcome mat for participation by private companies in the sector nearly a decade ago. But fast forward to the present, when most of those have either folded or left the space due to stiff government regulation aimed at controlling risk. Cango is one of the survivors, winding down its original business as an auto financier to become a more diversified provider of car trading services.