Nasdaq-listed Chinese auto insurance technology platform company, Cheche Group, is now aligned with the majority of significant new-energy vehicle (NEV) manufacturers in China, according to its founder, CEO and chairman, Mr Zhang Lei.
Speaking last month at the announcement of the company’s unaudited 2024 financial results, Mr Zhang said, “Our AI-driven next generation of solutions will embed us deeper into the value chain and significantly improve the operational efficiency for insurers and cost savings for consumers in this dynamic market. We remain committed to leveraging our expertise in intelligent digital insurance platforms, technical capabilities and precise insights into market demand to capitalise on these trends and further establish ourselves as an InsurTech leader in the largest automotive market in the world."
Cheche Group’s unaudited financial results for the year ended 31 December 2024 included:
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Net revenues for 2024 increased by 5.2% over the prior year to CNY3.5bn ($475.8m). The growth was driven by an increase in insurance transactions conducted through Cheche's platform by referral partners and third-party platform partners.
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Operating loss for 2024 decreased by 60.3% over the prior year to CNY66.5m
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Adjusted operating income (non-GAAP financial measures) for 2024 decreased by 40.2% to CNY28.2m from 2023
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Net loss for 2024 decreased by 61.6% to CNY61.2m
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Adjusted net loss for 2024 decreased by 25.3% to CNY24.8m from CNY33.2m in 2023
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Total written premiums placed in 2024 increased by 7.5% to CNY24.3bn
Cheche Group also said that the rapid growth of the NEV market created new opportunities for auto insurance offerings and propelled revenue growth of auto insurance providers. Cheche started to collaborate with NEV manufacturers in 2022 and such collaborations yielded considerable results in 2023 and 2024. Cheche believes that the further growth of the NEV market and the introduction of innovative NEV auto insurance solutions will further fuel the revenue contribution through its partnership with NEV manufacturers. The management of Cheche uses the number of partnerships with NEV manufacturers, the number of insurance policies embedded in the new NEV deliveries, and the amount of corresponding premium generated from such embedded policies as the main operating metrics to evaluate its business and presents such operating metrics for investors to better understand and evaluate Cheche's business.
Mr Zhang said, "Our latest financial results validate the success of our strategic focus on the intelligent connected electric vehicle insurance sector. Revenues for the fourth quarter achieved robust growth of over 13%, and notably, our NEV-related business has experienced a remarkable 171% growth in written premiums over the same period. This strong growth momentum, coupled with our adjusted operating income for the quarter, demonstrates our ability to balance business expansion with operational efficiency.
He noted that NEV sales in China surged to 12.9m units in 2024, marking a 35.5% increase from the previous year. “This trend underscores the immense market opportunity for our company to innovate and expand our auto InsurTech offerings, particularly in the intelligent connected NEV market where the integration of AI with intelligent connected NEVs is revolutionising traditional insurance practices by not only delivering an innovative and seamless customer experience but also setting a new standard for AI applications across specialized sectors,” Mr Zhang said.
2025 outlook
For 2025, Cheche Group expects the following results:
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Net revenues ranging from CNY3.6bn to CNY3.8bn, representing an increase of 3.7% to 9.4%, compared to 2024.
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Total Written Premiums Placed ranging from CNY25.5bn to CNY27.0bn, representing an increase of 4.9% to 11.1%, compared to 2024.
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NEV Written Premiums Placed ranging from CNY7.0bn to CNY8.0bn, representing an increase of 112% to 142%, compared to 2024.
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Adjusted Operating Results shifting from a loss to a profit.