#China #Shanghai #Bitcoin Mining #Cango Inc. #PRC Disposal

Cango Inc. Completes PRC Business Disposal

On May 27, 2025, Cango Inc. (NYSE: CANG) announced the successful completion of its previously communicated divestiture of its entire PRC operation, known as the PRC Business. This significant transaction has implications not only for the company's financial status but also for its management structure moving forward.

The completion of this disposal, initially agreed upon on April 3, 2025, was accepted by Cango shareholders following a formal vote on May 16, 2025. As part of the deal, Cango will receive a total of approximately $351.94 million in cash from Ursalpha Digital Limited, the purchasing entity. All necessary conditions for the closure of this transaction have been met, allowing for an expedient transition.

To further affirm the finality of this disposal, both parties entered into a waiver and amendment agreement at closing. This agreement signifies that Ursalpha has relinquished its right to potentially reverse the disposal under specified conditions, solidifying Cango's strategic direction.

Changes in Leadership

Simultaneously with the business disposal, notable changes occurred within Cango's leadership. Several directors, including Mr. Yongyi Zhang, Mr. Zhipeng Song, Mr. Dongsheng Zhou, and Mr. Rong Liu, resigned from their board positions. Mr. Zhang also vacated his role as the Chief Financial Officer—a crucial position in light of the ongoing business evolution.

In their place, Mr. Yanjun Lin and Professor Haitian Lu have been appointed as independent directors. Mr. Lin's extensive background in FinTech and investment banking, paired with Professor Lu's expertise in accounting and finance, positions the company well for future growth. Mr. Lin, previously associated with institutions like Credit Suisse and Barclays, brings a unique insight into market trends, particularly in digital banking and blockchain technology.

Professor Lu’s academic credentials and experience with companies involved in financial technology will also add significant depth to the board's governance capabilities. Both new directors will serve on various committees aimed at enhancing financial oversight and strategy. Furthermore, Mr. Jiayuan Lin has been designated interim CFO, ensuring continuity in financial leadership during this transition.

Moving Beyond PRC Operations

With the closure of its PRC operations, Cango is poised to redefine its market focus. The company plans to file with the China Securities Regulatory Commission (CSRC) to terminate its status as a “China Concept Stock,” a significant step signaling a complete transition away from the Chinese market.

This strategic pivot comes during a time when Cango is expanding its interests in Bitcoin mining, which is now a primary focus of the company, with operations situated in various regions such as North America, the Middle East, South America, and East Africa. Having delved into the crypto assets market in November 2024, Cango is evidently diversifying its business to align with the increasing global interest in cryptocurrencies and blockchain technology.

Founded in 2010, Cango has long facilitated a streamlined car purchasing process in China but is now reimagining its role in the evolving financial landscape brought on by rapidly advancing technology. For those interested in further details about the company's operations and developments, visit Cango's official website.

Conclusion

Cango Inc. stands at a pivotal moment, transitioning from its prior business engagements in China to a strategic focus on digital finance and cryptocurrency ventures. With a refreshed leadership team and expanded operational scope, the company is entering a new chapter aimed at leveraging current market opportunities. As the landscape of finance and technology continues to evolve, Cango's adaptability will be crucial as it navigates these transformations.