Cheche Group (NASDAQ:CCG) reported second-half and full-year 2025 results that management said marked a turning point in the company’s transition “from a transactional insurance platform to an AI-powered intelligent insurance ecosystem,” according to Founder, Chairman, and CEO Lei Zhang.
Profitability inflection and changing premium mix
Zhang told investors that Cheche achieved adjusted operating profitability for full-year 2025 and posted positive net income in the second half. Adjusted net income for the year was RMB 11.6 million ($1.7 million), compared with an adjusted net loss of RMB 24.8 million in the prior year—“a swing of more than RMB 35 million,” he said.
Management attributed much of the transition dynamics to the rising share of new energy vehicle (NEV) insurance within the company’s mix. Zhang said NEV premiums now represent 23% of total written premiums for the year, up from 13% in the prior year, noting that NEV premiums carry lower service fee rates but higher gross margin characteristics. Ji quantified NEV premiums as 23.4% of total written premium placed for full-year 2025, rising from 13.6% in the prior year.
Premium growth and NEV embedded policy expansion
Operationally, Ji reported total written premiums placed in the second half of 2025 rose 16.9% year over year to RMB 15.5 billion ($2.2 billion). For the full year, total written premiums increased 11% to RMB 27.0 billion ($3.9 billion).
Policy counts also increased. Ji said the number of policies issued rose to 12.0 million in the second half from 9.3 million in the prior-year period, while full-year policies issued grew to 20.3 million from 17.3 million.
On the NEV side, Ji said Cheche’s 16 OEM partnerships generated 1.2 million embedded policies in the second half, with RMB 3.7 billion in corresponding written premiums. That represented year-over-year growth of 61.8% in embedded policies and 63.9% in premiums, she said. For full-year 2025, NEV-embedded policies reached 2.0 million and corresponding premium reached RMB 6.3 billion, growing 85.3% and 91.0%, respectively, according to Ji.
Revenue pressure from fee rates, but gross profit growth
While premiums and policies grew, Cheche’s net revenues declined amid what executives described as “fee rates compression” tied to the growing NEV mix. Ji said net revenues in the second half were RMB 1.7 billion ($237.5 million), a 9.4% year-over-year decrease. Full-year net revenues were RMB 3.0 billion ($430.4 million), down 13.3% year over year. Ji said the decline reflected “the higher proportion of NEV premiums within our mix, which carry lower service fee rates,” adding that the company is managing the transition through “AI-enhanced pricing capabilities and a renewal market penetration.”
Despite lower net revenues, Ji said gross profit increased. Second-half gross profit rose 0.5% to RMB 94.6 million ($13.5 million), while full-year gross profit increased 1% to RMB 160.4 million ($22.9 million). She said the results reflected an improving business structure and a higher share of higher-margin NEV-related business, which contributed to gross margin expansion.
Cost reductions and operating leverage
Executives also emphasized cost control. Zhang said Cheche reduced operating expenses by more than 19% year over year, even as total written premiums rose 11% and total policies increased by 3 million.
Ji detailed expense trends in the second half of 2025:
- Selling and marketing expenses decreased 18.1% to RMB 31.0 million ($4.4 million).
- General and administrative expenses decreased to RMB 38.5 million ($5.5 million).
- Research and development expenses decreased to RMB 18.9 million ($2.7 million).
Total operating expenses in the second half decreased 14.4% to RMB 88.4 million ($12.6 million), and adjusted total operating expenses decreased 22.2% to RMB 77.1 million ($11.0 million), Ji said. For the full year, total operating expenses fell 19.6% to RMB 181.2 million ($25.9 million), while adjusted total operating expenses decreased 17.0% to RMB 156.9 million ($22.4 million).
Operating results improved accordingly. Ji said operating income in the second half was RMB 6.1 million ($0.9 million), compared with an operating loss of RMB 9.3 million in the prior-year period. Adjusted operating income in the second half was RMB 18.5 million ($2.6 million), compared with an adjusted operating loss of RMB 1.5 million a year earlier. For full-year 2025, operating loss narrowed 68.6% to RMB 20.9 million ($3.0 million), while full-year adjusted operating income was RMB 5.6 million ($0.8 million), compared with an adjusted operating loss of RMB 28.2 million in the prior year.
AI strategy, partner ecosystem, and international expansion
Zhang said Cheche is deploying AI pricing models in collaboration with several insurance companies and through data partnerships with intelligent connected vehicle manufacturers. He also pointed to an anti-fraud and risk control model that was recognized in a “top 100 AI product” list in 2024, describing it as integrating big data, AI, and biometrics to help insurers identify fraud earlier, price risk more precisely, and process claims more efficiently.
Beyond insurer-facing tools, Zhang said the company is “developing and testing AI agent” to change how it engages with car owners at renewal, aiming for standardized, scalable outreach that is “more effective than traditional method and significantly more cost efficiency.” He also said Cheche’s R&D team is using AI tools and large language models to accelerate product development and shorten development cycles “without proportional increase in the head count and spending.”
In response to questions about what could drive strong NEV adoption, Zhang reiterated that Cheche is extending AI capabilities across “the full insurance value chain,” from pre-underwriting risk assessment and pricing to in-policy monitoring and intervention and claims-related inspection and loss assessment. He said the aim is to move auto insurance from “static pricing to the dynamic risk management” model.
Zhang said the company has partnerships with 16 NEV manufacturers and is shifting strategy from adding new relationships to deepening existing ones, including expanding vehicle trims and models served, progressively entering dealer channels, and increasing renewal premiums across the installed base. He also referenced work with Volkswagen as evidence of partnering with both domestic and global automakers in China’s connected-vehicle market.
On international expansion, Zhang said Cheche has formed strategic partnerships with automotive brands focused on overseas growth and has established presence in markets including Australia, New Zealand, Latin America, and the Middle East. He said the company has launched business operations with partners including Guangzhou Automobile Group, Chery, BYD, and Great Wall Motor. During the Q&A, Zhang noted he was in Australia and visiting Great Wall Motor and Chery.
In a later Q&A exchange, Zhang said Cheche expects in 2026 that “three to five countries” will see local OEMs and dealers fully using the company’s solutions, adding that the company would release related news at that time.
Ji said Cheche ended 2025 with RMB 160.8 million ($24.4 million) in cash equivalents, restricted cash, and short-term investments.
Looking ahead, Ji provided 2026 guidance ranges, calling for net revenues of RMB 3.0 billion to RMB 3.2 billion, total written premiums of RMB 28.0 billion to RMB 30.0 billion, and NEV written premiums of RMB 10.5 billion to RMB 12.0 billion. She also said the company expects adjusted net income to “multiply several folds” compared to full-year 2025.
About Cheche Group (NASDAQ:CCG)
Cheche Group Inc offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc, formerly known as Prime Impact, is headquartered in Beijing, China.
