Regulatory Scrutiny and Compliance Changes: The dynamic regulatory environment in China, particularly for financial technology and auto financing, poses risks of stricter regulations, new licensing requirements, or limitations on business practices that could significantly impact Cango's operations and profitability.

Increased Credit and Default Risk: Cango's business model relies on facilitating auto loans. A deterioration in borrower credit quality, an economic downturn, or ineffective risk assessment could lead to higher loan default rates and increased provisions for credit losses, directly affecting its financial performance.

Intensified Market Competition: The auto finance and car trading sectors in China are highly competitive, with numerous participants. Intense competition could pressure Cango's margins, reduce its market share, and increase customer acquisition costs, hindering its growth.