Cheche Group Earnings Call: Profit Pivot Amid NEV Push

Cheche Group Inc. Class A ((CCG)) has held its Q4 earnings call. Read on for the main highlights of the call.

Cheche Group Inc. used its latest earnings call to underline a pivotal turn toward profitability and sharper execution, even as headline revenues declined. Management struck an upbeat tone around margin gains, NEV momentum and AI-enabled operations, while openly acknowledging near-term revenue compression, a remaining GAAP loss and the need to deliver on ambitious 2026 targets.

Adjusted profitability marks key inflection point

Cheche reported its first full-year adjusted profit, posting adjusted net income of RMB 11.6 million versus a RMB 24.8 million loss a year earlier. The swing of more than RMB 35 million was reinforced by positive adjusted net income of RMB 7.8 million in the second half, signaling improving economics and cost control.

Premium and policy volumes continue to expand

Despite softer net revenue, Cheche’s underlying business volume grew, with total written premium up 11.0% to RMB 27.0 billion in 2025. Policies issued climbed from 17.3 million to 20.3 million, and second-half premiums rose 16.9% year-on-year as policy count increased to 12.0 million from 9.3 million.

NEV segment drives high-growth engine

New energy vehicle insurance remained the standout, with NEV embedded policies jumping 85.3% to 2.0 million in 2025. NEV premiums surged 91.0% to RMB 6.3 billion, lifting NEVs to 23.4% of total written premiums for the year and 24.1% in the second half, supported by partnerships with 16 NEV manufacturers.

Cost discipline supports margin recovery

The company emphasized tight cost management, cutting total operating expenses by 19.6% to RMB 181.2 million for 2025. On an adjusted basis, operating expenses fell 17.0% to RMB 156.9 million, with the second half down 22.2% to RMB 77.1 million, reflecting broad reductions across selling, G&A and R&D.

Gross margins improve despite revenue pressure

Gross profit edged up 1.0% year-on-year to RMB 160.4 million, while second-half gross profit increased 0.5% to RMB 94.6 million. Importantly, gross margin expanded as higher-margin NEV business grew in the mix, showing better unit economics even as net revenues declined.

AI and partnerships move from vision to execution

Management highlighted tangible progress in AI, deploying pricing models with leading insurers and NEV OEMs and gaining recognition for its AI anti-fraud and risk control tool. A landmark collaboration with Volkswagen and ongoing ties with Huawei and other OEMs, plus initial moves into Australia, New Zealand, Latin America and the Middle East, underscored its partnership-led strategy.

Net revenues decline on NEV-driven mix shift

Net revenues fell 13.3% in 2025 to RMB 3.0 billion and slipped 9.4% in the second half to RMB 1.7 billion as NEVs became a larger share of business. Management attributed the drop to lower service fee rates in NEV products, which create near-term revenue headwinds despite healthier margins at the gross profit level.

GAAP loss and modest liquidity temper the upside

While adjusted figures turned positive, Cheche still reported a GAAP net loss of RMB 17.8 million for 2025, albeit a 71.0% improvement from the prior year. The balance sheet remains lean, with cash, restricted cash and short-term investments totaling RMB 170.8 million at year-end, a modest cushion for its growth and international ambitions.

Structural fee pressure heightens execution risk

The company acknowledged that NEV growth structurally compresses service fee rates, weighing on net revenue growth. To offset this, Cheche is leaning on AI-enhanced pricing and higher renewal capture, leaving investors focused on whether technology and cross-sell can compensate for lower fee rates over time.

International expansion and OEM dependence add uncertainty

Cheche’s strategy hinges on scaling AI products and expanding internationally with automaker partners, which introduces regulatory and operational risk. Future growth and margin gains also depend heavily on deepening OEM relationships and improving renewal penetration, making partnership execution a key swing factor for the story.

Guidance signals confidence in growth and profitability

For 2026, management guided net revenues to RMB 3.0–3.2 billion and total written premiums to RMB 28.0–30.0 billion, with NEV premiums expected at RMB 10.5–12.0 billion. The company also projected adjusted net income to multiply several-fold from 2025’s RMB 11.6 million, implying strong faith in scaling renewals, AI-driven pricing and continued NEV penetration.

Cheche’s earnings call painted a picture of a platform at an operational turning point, with improved profitability, growing NEV exposure and advancing AI partnerships. Investors will now watch whether the company can convert these structural advantages into sustained revenue growth and GAAP profitability while managing liquidity and execution risks abroad.