Cango Inc. (NYSE: CANG) announced Tuesday that its subsidiary, Shanghai Cango Network Technology Co. Ltd., has entered into a strategic agreement with Zhengzhou Nissan Auto Sales Service Co., Ltd.
The Shanghai-based company, operating an automotive services platform in China, said the two parties will collaborate in the areas of sales and marketing in the lower-tier markets through the development of a new automotive retail model.
Cango also said it will provide auto financial products and services to all customers of Zhengzhou Nissan's certified secondary dealer stores. Cango aims to solve Zhengzhou Nissan's efficiency problem in the lower-tier markets, the company added.
Min Gu, the general manager of Cango Network Technology, stated, "We are honored to have reached this strategic agreement with Zhengzhou Nissan. Leveraging our efficient trading service platform, extensive network and industry expertise in the lower-tier markets, we look forward to collaborating with Zhengzhou Nissan to build a new retail model for automotive transactions in these markets."
Cango said it recorded $168.2 million in revenue for the fourth quarter last month, up 150% year-over-year. Net income surged to $240.4 million, or $1.61 per American depositary share, compared with $15.73 million, or 9 cents per ADS, in the same period of 2019.
Cango also announced a share repurchase plan for up to $50 million worth of its ADSs.
Founded in 2010, Cango provides services including automotive financing, automotive transactions, and after-market services.