Strategic execution capability recognized by top institutions, HCW reiterates "buy" rating for Cango Inc Sponsored ADR (CANG.US)

Recently, the management team of Cango Inc Sponsored ADR (CANG.US) attended the HC Wainwright Investment Summit in New York, where they had in-depth discussions with institutional investors about the company's strategic transformation progress. As a top analysis agency in the United States, HC Wainwright first gave Cango Inc Sponsored ADR an $8 target price and a "buy" rating in July of this year, and quickly reaffirmed this rating after the company's Q2 financial report was released, highlighting its continued optimism about the long-term value of Cango Inc Sponsored ADR. HC Wainwright's optimistic expectations are based on Cango Inc Sponsored ADR's strong financial data, aggressive expansion into the renewable energy sector, and its light-asset model. It is reported that in the second quarter of 2025, Cango Inc Sponsored ADR achieved a total revenue of 1 billion RMB, with revenue from bitcoin mining business reaching 989 million RMB, accounting for over 98%, indicating that the company has successfully transitioned from a traditional business model to a new development stage centered around cryptocurrency mining. Currently, Cango Inc Sponsored ADR has entered the ranks of the top two mining companies globally in terms of computing power. In its report, HC Wainwright pointed out that Cango Inc Sponsored ADR did face significant challenges in the second quarter of 2025, including a net loss of 2.1 billion RMB due to one-time provisions. However, it can be seen from the recent Q2 financial report released by Cango Inc Sponsored ADR that the net loss mainly stems from two one-time accounting adjustments and is not a substantive operational loss. Although this adjustment temporarily reduces reported profits, it lays a solid foundation for future business expansion. The report further emphasized the company's operational resilience, with Cango Inc Sponsored ADR's adjusted EBITDA reaching 710.1 million RMB after excluding these provisions, reflecting its strong cash flow generation ability and operational efficiency. At the same time, HC Wainwright also expressed expectations for Cango Inc Sponsored ADR's strategic transformation towards renewable energy mining, including the acquisition of a 50 MW mine in Georgia in the second quarter, and efforts to streamline asset operations. In terms of operations, during July-August 2025, Cango Inc Sponsored ADR's mining machine online rate significantly increased, with equipment operating efficiency reaching industry-leading levels. The company's cost per bitcoin mined is around $98,000, significantly lower than market prices, demonstrating excellent cost control abilities. This not only enhances the company's ability to withstand market fluctuations, but also brings in more substantial profit returns during market upturns. HC Wainwright pointed out that Cango Inc Sponsored ADR's use of light-asset operations and focus on developing renewable energy align well with current ESG investment trends. This model not only effectively reduces operating costs, but also positions the company to attract more favorable financing opportunities in the future. Combining the sale of its Chinese assets in May and Q2 financial data, Cango Inc Sponsored ADR is strategically moving away from traditional businesses, focusing on high-growth sectors, demonstrating the flexibility and risk management capabilities of its business model. Looking ahead, Cango Inc Sponsored ADR is steadily advancing its transformation from a "single bitcoin mining" to an "energy + high-performance computing (HPC)" integrated platform. In the short term, it will focus on maximizing the value of existing computational power, deepening energy cost control, and expanding its green energy storage business to strengthen its competitive foundation. In the long term, it plans to launch its first batch of HPC pilot projects in the first half of 2026, enter the AI computing power service field, and build a second growth curve.