Cheche Group Inc. Q2 FY2025 earnings call

NEV Business - Policies transacted over 810,000 in first half 2025, up 135% y-o-y; written premiums RMB 2.6 billion, up 150% y-o-y. Maintained a 140% CAGR over 3 years. - Launched two global initiatives: AI-driven intelligent insurance tool and fintech solution for automakers abroad. Collaborating on anti-fraud claims system tailored for intelligent driving scenarios. - Deepening partnerships with traditional and NEV automakers for customized systems and embedded insurance products, leveraging data and insights. - China's NEV market: Global NEV sales 9.1 million units, China contributed 6.9 million (75% global share); NEV insurance premiums grew 41% to RMB 66 billion.

In the first half of 2025, NEV insurance policies transacted on Cheche's platform exceeded 810,000, representing a 135% increase from the prior year, with total written premiums reaching RMB 2.6 billion, up 150% over the same period. NEV premiums accounted for 22.5% of total written premiums, up from 9.3% in the prior year. Adjusted net loss for the first half of 2025 improved 47% to RMB 10 million.

- Revised net revenue guidance to approximately RMB 3 billion to RMB 3.3 billion from previously announced RMB 3.6 billion to RMB 3.8 billion. - Total written premiums placed range from RMB 25.5 billion to RMB 27 billion, with NEV written premiums ranging from RMB 7 billion to RMB 8 billion. - Aim for adjusted operating results to shift from a loss to a profit in 2025.

- Forward-looking statements in the teleconference may not prove accurate as they are prospective. - Actual results could differ materially from discussed projections. - Market competition and regulatory changes could impact Cheche's performance.

Q: Could you add some color on the recent significant progress or strategic road map for the NEV business?

A: The company is centered on its intelligent NEV insurance platform, with NEV insurance policy transacting on the platform in the first half of 2025 exceeding 8 million, volume and premiums growing by 135% and 150% respectively, maintaining a CAGR of around 140% for 3 consecutive years. Focus on strategic opportunities in intelligent and connected NEV, with plans for global expansion starting in Q4 2025.

Q: Could you talk about NEV market share and mix shift?

A: Currently taking around 10% of the NEV market, target 30% to 40% in 3 to 5 years. Estimated NEV business will account for over 50% of total business in 3 to 5 years.

Q: Could you talk about the 2 new AI products and international expansion?

A: In China, cooperating with a major automaker using AI-driven solutions to increase claims processing accuracy by around 50%. Globally, targeting Asia Pacific, Europe, and other countries like Thailand, with partnerships signed and financial insurance tech services being delivered.

Q: How are you leveraging AI and data analytics to deliver new claims and fintech solutions?

A: Using AI tool to determine real-time accident situations for liability determination and claims processing. Operating expenses kept under control with good headcount control and technology network.

Q: Could you talk about initiatives towards autonomous driving and macro policies?

A: Cooperating with Huawei and XPeng to develop protection based on intelligent autonomous driving scenarios. NEV seen as a key growth engine globally, with plans to take China's NEV insurance experiences and models globally