BEIJING, April 22, 2025 /PRNewswire/ -- Cheche Group Inc. (NASDAQ: CCG) ("Cheche" or the "Company"), China's leading auto insurance technology platform, today announced that it has entered into a partnership with Wuhu Jetour Automobile Sales Company Limited ("Jetour Auto"), an automotive brand under Chery Holding Group Co., Ltd. ("Chery Holding Group"). This collaboration marks another step forward in Cheche's ongoing efforts to deepen its partnerships with automobile manufacturers across China. Jetour Auto ...

Financial Performance - The consolidated net revenues for the year ended December 31, 2024, amounted to RMB 3,473.1 million, with RMB 2,934.0 million earned from third-party customers[35] - The total operating costs and expenses for the same period were RMB 3,539.7 million, resulting in an operating loss of RMB 66.5 million[35] - The net loss for the year ended December 31, 2024, was RMB 61.2 million, reflecting significant financial challenges[35] - The net loss for 2023 was RMB 159,590 thousand, which is an increase from a net loss of RMB 91,022 thousand in 2022, indicating a worsening financial position[36][37] - The company incurred significant losses from its subsidiaries, with a share of loss from the VIE amounting to RMB 29.8 million[35] - The operating loss for 2023 was RMB 167,781 thousand, compared to an operating loss of RMB 115,953 thousand in 2022, indicating a deterioration in operational performance[36][37] - The company incurred net losses of RMB91.0 million, RMB159.6 million, and RMB61.2 million in 2022, 2023, and 2024, respectively, alongside operating cash outflows of RMB158.9 million, RMB27.0 million, and RMB114.1 million during the same periods[92] Assets and Liabilities - Total current assets as of December 31, 2024, amounted to RMB 1,180,810 thousand, with cash and cash equivalents at RMB 117,472 thousand[38] - Total liabilities as of December 31, 2024, were RMB 932,169 thousand, with current liabilities comprising RMB 878,269 thousand[39] - The total shareholders' deficit was RMB 355,751 thousand as of December 31, 2024, indicating a negative equity position[39] - Total current assets amounted to RMB 780,253,000, with cash and cash equivalents at RMB 243,392,000[40] - Total liabilities reached RMB 515,795,000, while total shareholders' equity was RMB 378,182,000[41] Cash Flow - Net cash used in operating activities was RMB (114,135,000), indicating a significant cash outflow[42] - The company reported a net increase in cash and cash equivalents of RMB (125,920,000) for the period[42] - For the year ended December 31, 2023, the net cash provided by operating activities was RMB (26,950) thousand, compared to RMB (158,861) thousand for the year ended December 31, 2022, indicating a significant decrease in cash flow from operations[46][48] - The company reported a net cash provided by investing activities of RMB 12,822 thousand for 2023, a recovery from a net cash used of RMB (27,694) thousand in 2022[46][48] - The total cash, cash equivalents, and restricted cash at the end of 2023 was RMB 248,392 thousand, an increase from RMB 119,945 thousand at the end of 2022[46][48] Regulatory and Compliance Risks - The VIE structure poses unique risks, including potential regulatory changes that could affect control and financial performance[25] - The company faces various legal and operational risks related to doing business in China, which may impact its ability to conduct certain business and accept foreign investments[50] - Under the Holding Foreign Companies Accountable Act, if the company is identified as a "Commission-identified Issuer" for two consecutive years, its securities may be prohibited from trading on U.S. exchanges[51] - The company is subject to complex and evolving laws and regulations in China, which could lead to increased compliance costs and potential fines[70] - The company may face regulatory penalties if it fails to maintain necessary permits for its operations in China[70] Business Operations and Strategy - The company is expanding into the non-auto insurance market, which may diversify its revenue streams[70] - The company operates in a highly competitive market, making it challenging to evaluate future prospects[70] - The company has established relationships with approximately 100 insurance carriers, including major conglomerates, which are crucial for its revenue[121] - The company plans to further expand its geographic reach and service offerings, but faces risks in penetrating new markets successfully[102] - The company generates most of its revenues from transaction service fees charged to insurance carriers and intermediaries, which can fluctuate significantly[110] Technology and Cybersecurity - The company’s operations depend on third-party cloud providers, and any disruptions to these services could negatively affect the delivery of its services to ecosystem participants[156] - The company faces risks related to cybersecurity and data privacy, which are subject to increasing legislative and regulatory focus in China[140] - The company must invest significantly in technology and new product development to meet the evolving needs of its ecosystem participants[100] Management and Human Resources - The company relies on the continued efforts of its senior management, and any loss of key personnel could severely disrupt business operations[172] - The company has experienced rapid growth, which has strained management and resources, and future expansion may require penetrating new cities in China[128] Shareholder and Dividend Information - The company has not made any dividends or distributions to shareholders, including U.S. investors, and has no current plans to do so[29] - The statutory reserve fund requires annual appropriations of 10% of net after-tax income until it reaches 50% of registered capital, impacting dividend distribution capabilities[29] Intellectual Property and Legal Matters - The company relies on a combination of patents, trademarks, and trade secrets to protect its intellectual property, but faces challenges in enforcement[145] - The company may incur significant expenses related to litigation for intellectual property rights, which could distract management and affect operations[149] Economic and Market Conditions - The company is exposed to potential negative impacts from global economic conditions, including inflation and trade policy changes, which could affect pricing and profit margins[142] - The company’s operations are heavily dependent on the growth of China's automobile market, with decreased demand potentially impacting auto insurance demand[79]

Financial Data and Key Metrics Changes - For Q4 2024, total return premiums placed increased by 15.6% to RMB 7.4 billion (USD 1 billion) [22] - Total return premiums for the full year 2024 rose by 7.5% to RMB 24.3 billion (USD 3.3 billion) [23] - The total number of policies issued in Q4 2024 increased to 5.1 million from 4.8 million in the prior year [23] - Net revenues for Q4 2024 were RMB 3.5 billion (USD 475.8 million), a 5.2% increase year-over-year [24] - Adjusted operating loss for Q4 2024 improved to RMB 3 million (USD 0.4 million), down 93.7% from the prior year [26] Business Line Data and Key Metrics Changes - The number of embedded policies in NEV deliveries grew by 184% year-over-year to 141,000, with corresponding premiums increasing by 171% to RMB 1.4 billion [24] - For the full year 2024, embedded policies reached 1.1 million, representing a 159% increase, while premiums grew by 128% to RMB 3.3 billion (USD 452.4 million) [24] Market Data and Key Metrics Changes - The NEV sector in China is experiencing significant growth, with penetration rates around 50% of total passenger vehicle sales [10] - The company has established partnerships with 15 NEV manufacturers, enhancing its market presence [13] Company Strategy and Development Direction - The company aims to broaden its revenue streams by diversifying product offerings and enhancing market share through tailored policies [18] - There is a focus on innovation in autonomous driving and the development of AI-driven products to improve operational efficiency and customer experience [15][17] - The company plans to launch new products on a test basis in select cities later this year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the digital insurance industry, driven by technological advancements and partnerships [19] - The guidance for 2025 anticipates net revenues between RMB 3.6 billion and RMB 3.8 billion, representing a year-over-year increase of 3.7% to 9.4% [28] Other Important Information - The company reported a significant reduction in selling and marketing expenses, down 20.1% in Q4 2024 [25] - General and administrative expenses decreased by 53.2% in Q4 2024, attributed to lower share-based compensation [26] Q&A Session Summary Question: How will the company increase revenue streams from existing partners? - The company plans to increase the number of new customers among OEMs and enhance policy renewal services for existing customers [33][34] Question: Can you describe how AI is being utilized in the company? - AI is being used for dynamic pricing and intelligent claims processing, leveraging data from smart connected vehicles [40][41][48] Question: What is the guidance for revenue growth in 2025? - The company expects to grow faster than the traditional car insurance market, with NEV market growth rates around 40% to 50% [54][55] Question: Are there areas identified for capital investments to support growth? - The company plans to invest primarily in AI and R&D for new product development, particularly in AI claim management [60] Question: Why do OEMs prefer to cooperate with the company? - The company is recognized for its leading digital platform and extensive experience in auto insurance operations, serving over 20 million car owners [82][84]

Core Insights - Cheche Group Inc. reported strong financial results for Q4 and full year 2024, highlighting significant growth in the NEV insurance sector and improved operational efficiency [5][6][19]. Financial and Operational Highlights - Q4 2024 net revenues increased by 13.4% year-over-year to RMB983.6 million (US$134.8 million), driven by higher insurance transactions [6][9]. - Full year 2024 net revenues rose by 5.2% to RMB3.5 billion (US$475.8 million) [19]. - Total written premiums for Q4 2024 grew by 15.6% year-over-year to RMB7.4 billion (US$1.0 billion) [6][19]. - NEV-related business saw a remarkable 171% growth in written premiums in Q4 2024 compared to the same period last year [5][6]. - The number of policies issued in Q4 2024 increased to 5.1 million from 4.8 million in the prior-year quarter [6][19]. Cost and Expense Management - Selling and marketing expenses decreased by 20.1% in Q4 2024 to RMB19.7 million (US$2.7 million) [11]. - General and administrative expenses fell by 53.2% to RMB25.7 million (US$3.5 million) in Q4 2024 [12]. - Research and development expenses decreased by 25.3% to RMB9.3 million (US$1.3 million) in Q4 2024 [13]. Loss Reduction - Operating loss for Q4 2024 decreased by 93.7% year-over-year to RMB3.0 million (US$0.4 million) [6][15]. - Full year 2024 net loss decreased by 61.6% to RMB61.2 million (US$8.4 million) [25][26]. - Adjusted net loss for Q4 2024 decreased by 38.6% to RMB3.0 million (US$0.4 million) [16][25]. Market Opportunities and Partnerships - The NEV market in China saw sales surge to 12.9 million units in 2024, a 35.5% increase from the previous year, creating opportunities for Cheche [6][7]. - Cheche has established partnerships with 15 NEV manufacturers, leading to significant growth in embedded insurance policies [4][6]. - The company aims to leverage AI and technology to enhance customer experiences and operational efficiency in the NEV insurance sector [7][8]. Business Outlook - For 2025, Cheche expects net revenues to range from RMB3.6 billion to RMB3.8 billion, representing a growth of 3.7% to 9.4% compared to 2024 [34]. - Total written premiums are projected to range from RMB25.5 billion to RMB27.0 billion, indicating an increase of 4.9% to 11.1% [34].

Company Overview - Cheche Group Inc. is a leading auto insurance technology platform in China, established in 2014 and headquartered in Beijing [4] - The company operates a nationwide network with approximately 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China [4] - Cheche has evolved into a comprehensive, data-driven technology platform offering a full suite of services and products for digital insurance transactions and insurance SaaS solutions [4] Upcoming Events - The company will host a conference call to discuss its fourth quarter and full year 2024 results on March 28, 2025, at 8:00 a.m. EST [1] - An earnings release and related investor deck will be available prior to the event in the "Quarterly Results" section under "Financials" on the investor relations website [2] - A live webcast of the conference call will be accessible in the "Events" section under the "News & Events" header on the investor relations website [2] Additional Information - The company intends to make the webcast replay available for one year following the event [3] - Contact information for investor relations is provided, including email addresses and phone numbers for participants [5][6]

Core Points - Cheche Group Inc. has regained compliance with Nasdaq Listing Rule 5550(a)(2) regarding the Minimum Bid Price Requirement [1][2] - The company received a notification on November 15, 2024, indicating that its Class A ordinary shares had been below the required minimum bid price of $1.00 for 30 consecutive business days [2] - The compliance was achieved as the closing bid price was at least $1.00 for 10 consecutive business days from February 24, 2025, to March 7, 2025 [2] Company Overview - Cheche Group Inc. was established in 2014 and is headquartered in Beijing, China [4] - It is a leading auto insurance technology platform with around 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China [4] - The company has evolved into a comprehensive, data-driven technology platform offering a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China [4]

Core Insights - Cheche Group Inc. has been recognized in the Top 100 AI Products of 2024 for its Tianmu Insurance Anti-Fraud and Risk Control Model, showcasing its commitment to technological innovation in the insurance sector [1][2][5] Company Overview - Cheche Group Inc. is a leading auto insurance technology platform in China, established in 2014, with a network of approximately 108 branches across 25 provinces, autonomous regions, and municipalities [7][8] - The company has evolved into a comprehensive, data-driven technology platform offering a full suite of services for digital insurance transactions and insurance SaaS solutions [8] Technology and Innovation - The Tianmu Model integrates advanced technologies such as big data, artificial intelligence, and biometrics to create an intelligent anti-fraud and risk control system [2][3] - This model employs an AI-based image recognition system that analyzes extensive image datasets to assess the validity and authenticity of images, thereby reducing fraudulent risks like duplicate claims [3][4] - The Tianmu Model is designed to adapt to regional market characteristics, providing tailored risk management solutions for local insurers [3][4] Industry Impact - The implementation of the Tianmu Insurance Anti-Fraud and Risk Control Model enhances the ability to identify and prevent insurance fraud risks, thereby lowering operational risks within the insurance industry and improving overall competitiveness [4]

Core Insights - Cheche Group Inc. has been recognized by KPMG China as one of the top 50 leading fintech companies in China, highlighting its position in the auto insurance technology sector [1][2]. Company Overview - Cheche Group Inc. was established in 2014 and is headquartered in Beijing, China, operating a nationwide network of approximately 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities [5]. - The company has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions [5]. Product and Service Offerings - Cheche provides a range of digital insurance solutions, including a digital insurance transaction platform, a new energy vehicle (NEV) insurance solution platform, a SaaS system for insurance intermediaries, and an Intelligent AI Decision-Making System [3]. - The company leverages cutting-edge technologies and extensive data to empower innovative scenario-based insurance, engaging diverse user groups such as customers, agents, automakers, internet platforms, and insurance companies [3]. Industry Recognition - The recognition from KPMG China underscores Cheche's role as a pioneer in insurance technology and its success in driving digital insurance transformation in China [3]. - The award ceremony, attended by industry experts and senior executives, served as a platform to discuss the latest trends and future developments in the fintech sector [2].

Financial Performance - Cheche Group Inc. reported net revenues of RMB850.5 million (US$121.2 million) for Q3 2024, a 3.3% increase year-over-year [2][6] - The company achieved a net income of RMB4.1 million (US$0.6 million) for the quarter, compared to a net loss of RMB55.4 million in the same quarter last year [2][12] - Adjusted net income for the quarter was RMB2.6 million (US$0.4 million), an improvement from an adjusted net loss of RMB0.6 million in the prior-year quarter [2][12] Operational Highlights - Total written premiums for Q3 2024 increased by 4.0% to RMB5.9 billion (US$0.8 billion) compared to the prior-year period [2] - The number of policies issued in Q3 2024 rose by 5.0% to 4.2 million from 4.0 million in the prior-year quarter [2] - Partnerships with New Energy Vehicle (NEV) companies reached 14, resulting in 292,000 embedded policies and written premiums of RMB884.2 million (US$126.0 million), marking increases of 149.6% and 121.6% respectively compared to the prior-year quarter [2][4] Cost Management - Cost of revenues increased by 3.0% year-over-year to RMB808.1 million (US$115.2 million), consistent with business volume growth [7] - Selling and marketing expenses decreased by 53.6% to RMB18.1 million (US$2.6 million) due to reduced share-based compensation and staff costs [8] - General and administrative expenses fell by 41.3% to RMB20.4 million (US$2.9 million), primarily due to lower share-based compensation and professional service fees [9] Business Outlook - The company expects full-year 2024 net revenues to range from RMB3.5 billion to RMB3.7 billion, representing a growth of 6.1% to 12.1% compared to 2023 [17] - Total written premiums for the full year are anticipated to be between RMB24.5 billion and RMB26.5 billion, indicating an increase of 8.4% to 17.3% compared to the previous year [17] Strategic Partnerships - Cheche announced a partnership with Shanghai Jidu Automobile Company to diversify its partner network in the NEV industry [15] - A collaboration with Laoyou Insurance Brokerage has been initiated to roll out insurance solutions through GWM's direct-sales network in over 20 cities [15] - A strategic partnership with Tokio Marine & Nichido Fire Insurance Company aims to develop specialized insurance products and services [15]

Core Viewpoint - Cheche Group Inc. has received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement, but this does not lead to immediate delisting and the company has a compliance period to rectify the situation [1][2]. Compliance Status - The company has been notified that its Class A ordinary share price has been below US$1.00 for 30 consecutive business days, which is a violation of Nasdaq Rule 5550(a)(2) [1]. - Cheche has a compliance period of 180 calendar days, until May 14, 2025, to regain compliance by maintaining a closing bid price of at least US$1.00 for 10 consecutive business days [2]. - If compliance is not achieved by the deadline, the company may be eligible for an additional 180-day compliance period if it meets other listing requirements [3]. Monitoring and Future Actions - The company plans to monitor its share price closely and is considering options to regain compliance with Nasdaq's minimum bid price requirement [4]. - It is currently in compliance with all other Nasdaq continued listing standards, and the notification does not impact its business operations or reporting obligations [4]. Company Overview - Cheche Group Inc. is a leading auto insurance technology platform in China, established in 2014, with a network of around 108 branches across 25 provinces [6]. - The company offers a comprehensive suite of services for digital insurance transactions and insurance SaaS solutions [6].