🧾 What This Document Is

This is Cheche Group's earnings release for the second half and full year of 2025. It's a report to investors detailing their financial performance, business highlights, and future outlook. Think of it as a detailed report card showing how the company did and where it's headed.

🏢 What The Company Does

👉 In simple terms, Cheche is a tech company that makes buying car insurance in China easier and smarter. They are like a digital marketplace or a "matchmaker" connecting drivers, car companies, and insurers. Their big focus is on New Energy Vehicles (NEVs), like electric cars. They've built software that embeds insurance directly into the car-buying process, especially for these new EVs.

💰 Financial Highlights: The Profitability Turnaround

Despite lower revenue, Cheche made significant progress toward profitability, driven by selling more insurance for electric cars, which has better profit margins.

Key Metrics for Full Year 2025:

• Revenue (Net Revenues): RMB 3.01 billion (US$430.4M), down 13.3%.
• Gross Profit: RMB 160.4 million (US$22.9M), up 1.0%.
• Operating Loss: Narrowed by 68.6% to a loss of RMB 20.9 million (US$3.0M).
• Net Loss: Narrowed dramatically by 71.0% to a loss of RMB 17.8 million (US$2.5M).
• ✅ A Major Milestone: When you add back certain non-cash costs like stock compensation, Cheche reported an Adjusted Net Income of RMB 11.6 million (US$1.7M) for the full year, a big swing from a loss of RMB 24.8 million in 2024.

👉 Why this matters: The story here isn't top-line growth (revenue), but profitable growth. By shifting its mix toward NEV partnerships, Cheche is making more money per policy sold, which is transforming its economics.

🚀 Key Moves: Partnerships & NEV Focus

Cheche's strategy is all about embedding its tech into the electric vehicle ecosystem.

• NEV Partnerships Grew: They reached partnerships with 16 NEV companies in H2 2025. Policies from these partnerships hit 2.0 million for the full year, up 85.3%.
• Premium Growth from EVs: Written premium from NEVs reached RMB 6.3 billion (US$902.1M) for the full year, a 91% jump. This segment now makes up 23.4% of their total premium pie, up from 13.6% a year ago.
• Landmark Deals: They announced major collaborations with brands like Huawei's HarmonyOS, BYD, and Volkswagen's Jinbiao to build a full-lifecycle digital insurance service for EV owners.
• Going Global: They launched initiatives to expand internationally into Asia-Pacific and Latin America, aiming to serve Chinese automakers exporting over 8 million vehicles annually.

📦 Financial Position & Outlook

• Cash on Hand: As of December 31, 2025, the company held RMB 170.8 million (US$24.4M) in total cash, restricted cash, and short-term investments.
• 2026 Guidance: Management expects:
  • Net revenue between RMB 3.0B to 3.2B (flat to +6.7% growth).
  • Total written premiums between RMB 28.0B to 30.0B (+3.7% to +11.1%).
  • NEV written premiums to surge between RMB 10.5B to 12.0B (+66.7% to +90.5%).
  • Adjusted Net Income to "multiply several folds" compared to 2025's RMB 11.6M.

👉 Why this matters: The guidance confirms the company is doubling down on the high-growth NEV segment, which is expected to drive most of its future growth and profit expansion.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Strong NEV Tailwinds: Perfectly positioned in China's booming electric vehicle market.
• Improving Profitability: Demonstrating clear operational leverage and a better business mix.
• Strategic Partnerships: Deep integrations with major automakers create a competitive moat.
• Tech & AI Focus: Their AI-driven risk-pricing tools are key innovations.

⚠️ Risks:

• Revenue Pressure: Overall revenue still declined due to the fee structure of NEV business.
• Competition: The auto insurance tech space is competitive.
• Execution Risk: Success depends on executing international expansion and new partnerships.
• Market Dependence: Heavily tied to the growth and regulatory environment of the Chinese NEV market.

🔮 What's Next

Cheche plans to deploy its AI risk-pricing capabilities across more vehicle models and accelerate its international expansion. The focus remains on being the digital insurance backbone for the next generation of smart, connected electric vehicles.

🧠 The Analogy

Cheche is like a specialized "bait and hook" model in the EV era. The "hook" is their core tech platform that gets embedded into car sales. The "bait" is the insurance service attached to each new EV sold. They've now proven that the more EVs (the bait) they sell through their platform, the more profitable and valuable their core technology (the hook) becomes, even if the fee per bait is smaller.

📇 Key Contacts & People

• Lei Zhang: Founder, CEO, and Chairman.
• IR Contact: Email: [email protected]
• Investor Relations Counsel: Crocker Coulson (AUM Media Inc.), Email: [email protected], Phone: (646) 652-7185

🧩 Final Takeaway

Cheche's 2025 results mark a pivotal shift from growth-at-all-costs to profitable growth, fueled by its strategic bet on the electric vehicle ecosystem. While total revenue dipped, the surge in higher-margin NEV business powered the company to its first year of adjusted profitability, and management expects this profit engine to accelerate significantly in 2026.