Cheche Group (CCG) H1 2025 earnings summary

Executive summary

• Achieved robust growth in NEV/AUV insurance, with embedded policies up 135.5% and written premiums up 150.6% year-over-year, maintaining a 140% CAGR over three years.

• NEV/AUV premiums now represent 22.5% of total written premiums, up from 9.3% last year, driving higher gross margins and improved business structure.

• Launched AI-driven insurance tools and fintech solutions for automakers, supporting domestic and global expansion, with a focus on Asia-Pacific, Europe, and Latin America.

• Strengthened partnerships with 15 NEV companies, including Jetour Auto, and positioned as the largest independent technology platform for auto insurance services and NEV embedded solutions in China.

• Positioned to serve 30%-40% of China's AUV market in 3-5 years, with current market share at 10% and annual growth exceeding 100%.

Financial highlights

• Total written premiums for H1 2025 increased 4% to RMB11.5 billion; policies issued rose to 8.3 million.

• Net revenues were RMB1,348.7 million (US$188.3 million), down 17.7% year-over-year due to a higher NEV/AUV mix with lower service fee rates.

• Gross profit rose 1.7% to RMB65.8 million (US$9.2 million), with gross margin improvement despite lower net revenues.

• Net loss improved to RMB25.6 million (US$3.6 million) from RMB54.9 million year-over-year; adjusted net loss improved to RMB10.5 million (US$1.5 million).

• Operating expenses decreased 23.9% to RMB92.8 million (US$13.0 million), driven by lower staff costs and share-based compensation.

Outlook and guidance

• Net revenue guidance for 2025 revised to RMB3.0–3.3 billion, down from RMB3.6–3.8 billion, reflecting business structure changes.

• Full-year written premiums expected at RMB25.5–27.0 billion, with NEV/AUV premiums at RMB7.0–8.0 billion.

• Expects adjusted operating results to shift from loss to profit for the full year.

• AUV business projected to account for 50%-70% of total business in 3-5 years.