Cango Confidently Declares Special Cash Dividend

With company's suspending dividends in the Covid-19 market, Cango offers a show of confidence to shareholders.

Author: Binwei Wang   

Cango, Inc. (NYSE: CANG) announced Thursday that it has approved and declared a special cash dividend of 25 cents per American depositary share.

The Shanghai-based automotive transaction service platform said the dividend will be paid on May 18, 2020, to shareholders of record as of the close of trading on May 4, 2020.

The company reported last month that it enjoyed a 36.6% year-over-year increase in revenues in the three months through December, hitting $62.1 million. 

Net income in the fourth quarter of 2019 increased by 96.8%, Cango said.

Also, Jiayuan Lin, the founder and chief executive officer of Cango stated the challenges during 2019, "The challenges we faced from macroeconomic pressure and underwhelming markets for automobiles in China tested the strength of our facilitation business model. Importantly, our successful mitigation through these tougher conditions has provided us with an opportunity to further cement our industry leadership and grow our suite of automotive facilitation services throughout the industry's value chain."

Cango became publicly traded in New York in July 2018, raising $44 million from the sale of 4 million shares.

Shares of Cango increased by nearly 6% today, closing at $5.37 in New York.