China: Cheche Group Posts H2 2025 Results

The latest set of financials from Cheche – here are some highlights;

Cheche Group Inc. (NASDAQ: CCG) (“Cheche,” “the Company” or “we”), China’s leading auto insurance technology platform, has announced its unaudited financial results for the second half and full year ended December 31, 2025.

Key Business Highlights

• Partnerships with New Energy Vehicle (NEV) companies reached 16 in the second half 2025 and led to 1.2 million policies with corresponding written premium of RMB3.7 billion (US$532.0 million), representing an increase of 61.8% and 63.9%, respectively, compared to the prior-year period. Embedded policies and corresponding written premium for the full year 2025 reached 2.0 million and RMB6.3 billion (US$902.1 million), representing growth of 85.3% and 91.0%, respectively, compared to the prior year.
• Gross profit for the second half 2025 increased 0.5% to RMB94.6 million (US$13.5 million) compared to the prior-year period, while gross profit for the full year 2025 increased 1.0% to RMB160.4 million (US$22.9 million). The improved business structure, mainly evidenced by the proportion of NEV premium out of total written premium increasing to 24.1% and 23.4% for the second half 2025 and full year 2025, respectively, from 17.2% and 13.6% for the prior-year period, led to a higher gross margin.
• Operating income for the second half 2025 was RMB6.1 million (US$0.9 million), compared to operating loss of RMB9.3 million in the prior-year period. Operating loss for the full year 2025 decreased by 68.6% to RMB20.9 million (US$3.0 million), compared to the prior year.
• Adjusted operating income for the second half 2025 was RMB18.5 million (US$2.6 million), compared to adjusted operating loss of RMB1.5 million for the prior-year period. Adjusted operating income for the full year 2025 was RMB5.6 million (US$0.8 million), compared to adjusted operating loss of RMB28.2 million for the prior year.
• Net income was RMB7.8 million (US$1.1 million) for the second half 2025, compared to net loss of RMB6.4 million in the prior-year period. Net loss for the full year 2025 was RMB17.8 million (US$2.5 million), compared to net loss of RMB61.2 million in the prior year.
• Adjusted net income for the second half 2025 was RMB22.2 million (US$3.2 million), compared to adjusted net loss RMB0.3 million in the prior-year period. Adjusted net income for the full year 2025 was RMB11.6 million (US$1.7 million), compared to adjusted net loss of RMB24.8 million in the prior year.
• Total written premiums placed for the second half 2025 increased by 16.9% year-over-year to RMB15.5 billion (US$2.2 billion), while total written premiums placed for the full year 2025 increased by 11.0% over the prior year to RMB27.0 billion (US$3.9 billion).
• Total number of policies issued for the second half 2025 increased from 9.3 million for the prior-year period to 12.0 million, while the total number of policies issued over the full year 2025 increased from 17.3 million of the prior year to 20.3 million.

Unaudited Full Year 2025 Financial Results

Net Revenues were RMB3,009.8 million (US$430.4 million), representing a 13.3% year-over-year decrease from the prior year, mainly driven by a higher proportion of NEV premiums, which carry a lower insurance service fee rate, within total written premiums, which increased to 23.4% from 13.6%.

Cost of Revenues decreased 14.0% year-over-year to RMB2,849.5 million (US$407.5 million) from the prior year, mainly due to a decline in net revenues and higher gross margin driven by the rapid growth of the NEV business.

Gross profit increased 1.0% to RMB160.4 million (US$22.9 million) compared to the prior year, despite the lower net revenues, as the improved business structure led to a higher gross margin.

Selling and Marketing Expenses decreased by 14.2% to RMB68.2 million (US$9.8 million) from RMB79.5 million in the prior year, mainly due to the decrease in staff costs and share-based compensation expenses. Excluding share-based compensation expenses, adjusted selling and marketing expenses were RMB65.2 million (US$9.3 million), a decrease of 11.7% compared to the prior-year period.

General and Administrative Expenses decreased 29.8% to RMB75.8 million (US$10.8 million) from RMB107.9 million for the prior year, mainly driven by the decrease in staff costs, share-based compensation expenses and professional service fees. Excluding share-based compensation and dispute resolution expenses, adjusted general and administrative expenses decreased 30.2% year over year, from RMB79.2 million to RMB55.3 million (US$7.9 million).

Research and Development Expenses decreased 1.9% to RMB37.2 million (US$5.3 million) from RMB37.9 million in the prior year, mainly due to the decrease in staff costs and share-based compensation. Excluding share-based compensation expenses, adjusted research and development expenses increased by 0.9% to RMB36.4 million (US$5.2 million) from RMB36.1 million in the prior year.

Total Operating Expenses decreased 19.6% to RMB181.2 million (US$25.9 million) from RMB225.3 million in the prior year, mainly driven by the decrease in staff costs and share-based compensation expenses.  Excluding share-based compensation expenses and dispute resolution expenses, adjusted total operating expenses decreased by 17.0% to RMB156.9 million (US$22.4 million) from RMB189.1 million in the prior year.

Operating loss was RMB20.9 million (US$3.0 million), representing an improvement of 68.6% compared to operating loss of RMB66.5 million in the prior year. Excluding share-based compensation expenses, amortization of intangible assets related to the acquisition and dispute resolution expenses, Adjusted Operating Income was RMB5.6 million (US$0.8 million), compared to adjusted operating loss of RMB28.2 million for the prior year, which resulted from the improved business structure and the improvement of our operational efficiency.

Net loss was RMB17.8 million (US$2.5 million), representing an improvement of 71.0% compared to net loss of RMB61.2 million in the prior year. Excluding share-based compensation expenses, amortization of intangible assets, changes in fair value of amounts due to a related party, change in fair value of warrants and dispute resolution expenses, Adjusted Net Income was RMB11.6 million (US$1.7 million), compared to adjusted net loss RMB24.8 million in the prior-year period.