Cheche Group (CCG) Q3 2024 earnings summary

Executive summary

• Achieved first-ever net income profitability on both GAAP and adjusted basis in Q3 2024, driven by operational improvements and NEV partnerships.

• Embedded NEV insurance solutions expanded to 14 partnerships, with 292,000 policies and RMB 884.2 million premiums in Q3 2024, up 149.6% and 121.6% year-over-year.

• Q3 2024 policy transaction volume reached 4.2 million, up 5.0% year-over-year; premium transaction scale rose 4.0% to RMB 5.9 billion.

• Launched new SaaS and data analytics tools to support medium-sized insurers and enhance market competition.

• Announced intention for share buyback plan and CEO's continued open market share purchases.

Financial highlights

• Net revenues for Q3 2024 were RMB 850.5 million ($121.2 million), up 3.3% year-over-year.

• Net income for Q3 was RMB 4.1 million ($0.6 million), reversing a net loss of RMB 55.4 million in Q3 2023.

• Adjusted net income for Q3 was RMB 2.6 million ($0.4 million), compared to an adjusted net loss of RMB 0.6 million in the prior-year quarter.

• Selling and marketing expenses dropped 53.6% year-over-year, and G&A expenses also declined significantly.

• For the nine months ended September 30, 2024, net revenues were RMB 2.49 billion, with a net loss of RMB 127.6 million.

Outlook and guidance

• Full-year 2024 net revenues expected between RMB 3.5 billion and RMB 3.7 billion, up 6.1% to 12.1% from 2023.

• Total written premiums placed projected at RMB 24.5–26.5 billion, an increase of 8.4% to 17.3% year-over-year.

• Anticipates NEV insurance premiums to reach RMB 500 billion by 2030, with OEM channels exceeding RMB 200 billion in three years.