Cheche (CCG) 26 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Cheche Group Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Crocker Coulson, Investor Relations for the Cheche Group. Please go ahead.

Thank you, Betsy. Hello, everyone. to XXXX us quarter joining for review third Cheche's results. Thanks @ir.chechergroup.com. With earnings Cheche website, a find CEO; call and posted Financial Founder morning, Cheche's Zhang, release are which on Lei today both can Wenting our This and to the and Cheche's the presentation related you Chief Ji, us Officer. investor up any of for their remarks concluded, are call prepared we're questions. the After going to open your securities the laws. some begin, in conference meaning statements of within federal But before we are this forward-looking

Although statements will provide to could materially for SEC are recent these to those management assurance be no that you impact factors like nature. Actual our risk results. we'd from in encourage they most can filings believes we to we with reasonable, are Therefore, the could discuss because that the results prove they materially prospective today. differ accurate review

is that. With the you contained of to mentioned, within results call to earnings my way, over now Lei, go pleasure to in Lei it's ahead. I certain addition, review encourage turn please As on reconciliations the those of out the release CEO. @ir.chechergroup.com. the Zhang, We measures formalities non-GAAP available

Crocker. Hello, everyone. you, Thank

so us. joined We you glad are have

We increasingly years, According three struggling X to and exceed through X insurance notable placed including NEV of profitable XXXX overtook currently us. top majority next B.O.C.O.M adjusted income largest million participate through technology year, focus apps conventional and of proposition now XXX brokers. Cheche are the quotes to quarter over million insurance different has to was by higher International, makers auto results that and new need NEV expected for an are continue continues written increase operations reached and almost they shift Cheche's is year, to the insurance billion and collaborated each of they USD will for a software RMB gives sales. production customized the industry company's and XXXX, screens by month. of billion. XX basis. The are vehicle offer year. NEV July for effective the Cheche cognition. Between and partners lead intelligent the vehicles, value carriers. Chinese sold and embedded Auto on vehicle completing third change ecosystem. the realize XX% and market implications The quarter Between OEM vehicles, this XXX quarter insurers sales they make insurance consumers autos XXXX. The make most auto ICE market, billion premiums both a our this third the ratios and manufacturers, that insurance a is renewed in auto claims in choice RMB great NEV provided money of rather premium XX sold higher providing in prior China. as This over inflection in the in XXX off. Cheche's with X.X the to platform channels up NEV in October We over world January paying profound proof concrete a insurance than to this lead anticipate due net recording to approach at manufacturers Chinese with and that analysts but point, rate industry for players. of OEM on GAAP largest profitability service accident generated traditional to sales NEV. and premiums

auto insurers different for to recently pricing, However, latitude the capability reward drive Chinese band widened personalized insurance for the providing positive great to offers has behavior. Cheche's with government pricing. platform more

policies to third period. We and year to same claims of system risk automate prior over the the to Cheche's up and of quarter, the XXX,XXX online and of XXX for the fraud. At customized USD end year-over-year platform repair reduce solutions, and to validate embedded management manage gross to both million routing the from manufacturers the repairs variety offers of NEV was on NEV claims, cost sold launched the products the enable also number We XXX% offline. policies. grew JI premiums XXX% YUE, which of

margins industry matures mix the NEV precise, become the sustainably and becomes more As underwriting of will apparent our as NEV growing number higher revenue of policies shifts.

nationwide its with we insurance additional long-term for to develop Great Company, our maintained system are mainstream of sales other support than in Wall transaction have essential XX insurance Motor months. Partnerships to in next the direct in with Our automakers insurance companies solutions while strategy, China. company carriers traditional component cities our provided with more network XX with agreement plans relationships

insurance This collaboration owner's carriers with we with our Marine as service first and quarter scale. our opportunities Chinese agreement an also to subsidiary, foreign signed capabilities enhancing the Tokio marked

vehicles. in enable We are the launching compete and NEV ICE analytics to SaaS insurers medium-sized bring benefits also consumers. data Expanding the of participants tools number both is the essential the of in new to to underwriting active and auto to insurance for effectively competition market more

manufacturers roadmap and life across cycle. our the embedding prioritizes NEV ourselves ahead, Looking technology

insurers, independent and of play party that As more data cause in confidence failure on X+ the system. Cheche of will the by authority the of so a can is consumers the role if rules. OEMs above third error insurers will determine of Level accident embedding liability. need this have trusted OEMs, and increasingly to on the human of China's platform critical higher and the assignment autonomous result driving Level become common to X, self-driving or

the China and as our Our comprehensive with and Asia Southeast industry longer partners. contribute East. value auto term, into additional manufacturers are and Middle insurance we our the digital unique perspective to beyond to partnerships capabilities thriving extend that working regions such In adds for

in substantial within to world, our a in companies is our policies Given and buyback local broad success advantage China, over data share shares the to in regions. Having the us insurance when the the once purchasing it. plan would underwriting the company, open most experience during in and Moreover, Board company inherent windows. in continue trading platform market provide NEV deep with adopt these embedded planning confidence market approved available intend the I

complete are shipments with CFO, forward opportunities. I the to our will Thank to the future now capitalizing We on you. turn our look Sandra. call delighted over and

Thanks, operational before increased our RMB to touching total of XXX and financial X.X Lei. want written on by X% quarter policies this to I quarter questions. The billion third-quarter USD placed or highlights number X% this million. issued to total in taking million. The begin premiums for grew X.X

RMB premiums rates to than were the policies reduced insurance due respectively, before, lower corresponding mentioned Lei XXX,XXX growing year-over-year. Currently, and NEVs enjoy of policies ICEs profitability carriers. commission XXX.X% the million As X%, XXX.X and deliveries, in NEV insurance of embedded on

secure mix positive However, we policies. significantly continues. bottom can our as these the That higher may for line shift margins have on implications

In we RMB X.X% of year-over-year. million third The the terms prior-year quarter in quarter. from of USD generated cost XXX.X revenues, net of USD in million RMB XXX.X increase X% or an the XXX.X up or revenues the million, million was quarter, our third XXX.X

XX.X% decreased an expenses. The expenses were cost We selling X.X million, staff or XX.X lower in to share-based also compensation a staff administrative offset USD operating and to from compensation and expenses by and in million RMB expenses marketing primarily decrease share-based expenses million or to costs decreased general X.X% expenses X.X by XXX drop reported due or million XX.X% partially of USD in or quarter, in partially to lower share-based RMB XX.X driven million million, professional year million total costs. The also and USD the by XX.X compensation to by XXX.X service share-based mainly million XXX.X due RMB decreased and offset X.X mainly compensation quarter XX.X higher and due prior cost decreased expenses revenues. mainly USD at prior increase million and RMB fees. Research million the development this year and quarter, to RMB RMB the in from

expenses this million the Excluding X% in quarter total of improving assets was the related net compared XX.X time loss listing-related year net quarter to share-based X.X USD adjusted in and quarter. to positive third million resulting compensation X.X or in income adjusted positive, the professional USD also prior quarter. Net RMB million fees. The X.X RMB X.X million RMB million in XXXX. Adjusted from amortization income turned the expenses, or quarter, cost of operating for RMB loss from million X.X to and prior-year first acquisition, the intangible the for increased service

Turning and short-term reported equivalents, cash, balance RMB We investments. sheet. million XX.X to XXX.X cash our in million or USD

XX.X% for guidance, happy from guidance. The to written from range As of our are the that, range we'll are to premiums RMB questions. XX.X to to representing compared RMB your year compared expected placed XX.X% XXXX X.X full RMB XXXX. With X.X to be full-year XX.X increase billion, full-year affirming RMB to expected an address year are of increase X.X% we billion billion, full of to X.X% net of to to representing an billion XXXX. Total revenues

Klee question [Operator today Maxim. with Allen Instructions] The first from comes

on Congratulations and doing. everything you're strong results very

I My so modeling Your profitability came quite partnerships. to has over X.X years than what was first impressive. with do your question earlier

You insurance companies with as revenues? help kind can sign you these, you're ramp you have How up said expanding they XX translate now how of companies. NEV and and you think about do into like

just As mentioned, with cooperating XX OEMs. Allen, you now, right we are

them. We services transaction providing insurance are for

working with actually to are brands. the our scope partnership of extend we So, existing

two to the example, in For services for for provide we providing extend we vehicle currently more plan for models brands. to more services are and future, BYD, their

better for are less but rates the the just business company it's your get them. why NEVs, for profitability out that is? of mentioned that You lower you Could since explain can insurers, profitable

and is the do But insurance, claiming. Basically, ratio the COR the claims high of the we risk for for not also NEV us, take high. also

We are a company. platform

win-win OEMs We to the create have situation. insurance a the and companies

prices. to more So, models, better can a pricing we're to to a through going why car for our and a our increase have insurance That's strong and huge in the profitability. we owners provide can have a their cheaper provide provide this and we going we're that platform, we market, better believe OEMs through

potential how providing rolling give confidence. talked employing caused actually explain you're that this a what you're out? claim about accident? have an What thinking You how and might self-driving you're and technology you and to greater Can about

two are there Basically, aspects.

OEMs is devices. we one all with data first embedded intelligent they with sharing know the The we the as are are because

data our the help improve decrease efficiency could risk to and that's as well So, one. as first

popular. is The second more and the driving becoming more when intelligent is

to you see, popular can China. X more X is Level Level the in As becoming

driving are So basically, of with around there intelligent are NEVs XX% services. equipped

interior going decide the the to when of wrong. occurs, is because working, this we of the have accident can driver whether because or is driving accident when is So, equipment

So, we this capability. leading in basically, are our that's industry. And

expanding else? be happen East. creating think could potentially that in countries? the is about talked potentially You way Or Southeast would it Middle an that Asia something other the within and Do marketplace online you

overseas, to to such we clients we per as even we're NEV in Middle existing we did the systems companies follow in software overseas, just can actually makers them and as operation Asia, just expansion going the well. suite local as the Southeast they this makers we full XX build and are basically, mentioned connections have go what and the Europe, China. East mentioned. When And just we provide the countries NEV our following help So, these a can doing strategy, service we like with some our

Could areas you X those how and potentially talk they SaaS performed about them? about how how insurance and your grow offerings, strategically to non-auto you're thinking

non-auto for So, several we lines. the have insurance,

The products that autos. related first one with the insurance is are

For auto insurance. And product the of are is and These bundled health are the one service they model. insurance property example, basically, extensions second the and our liability the with insurance. all insurance, sold the

Steve Silver from with Argus question comes Research. next The

quarter, the the in in the gross So, at revenues looking expenses. growth growth outpaced

be like the looks gross it X% range. to margin around continues So, the

similarly, Just as the operating new value-added bring expense expenses of continues expansion as the continue decline to line, the platform you the the gross percentage services time then over on of moving expect forward? thoughts onto platform. And as to a about to curious revenues operating to your do margins

are quite changes. we keep business you're of along gross I margin. the gross will confident our with margin quite answer believe Yes, question. of with revenue our increasing We will this the right. mix Actually, the

insurance, NEV margin in because insurance NEV so a in higher margin mentioned, we we than the ICEs, we more means business higher that the market from the have. will As enjoy

the will because So, is business soon become growth single reality rate rate is for logic. Apparently, a digit. total But market, that XXX%. growth only that's the over insurance as the our NEV

tools more market. picture. the that the and mentioned the we NEV before, So, from NEV that, the launch insurance That analytical to Lei and related logic. Besides account planning revenue to new means also picture. will more are for total will total more That's to as SaaS data revenue high-margin bring insurance our percentage to

may in growing the future. But condition in factor definitely, gross different not short. trend for will So, gross that's be fluctuate due long term, another our the to margin contribute the the on term, a will the changed. the margin But basis in market to short growing quarterly

gross forward. the going margin increasing be So, rate will

Go [Operator Instructions]. Riu next from The C.I.C.C. question with comes

X XQ Congrats results. the on And questions. I have

The for the first is do within the the NEV in insurance? the you near future insurance market, motor do NEV it total or much insurance insurance NEV believe believe how to come you from much how relate secondly, market? And manufacturers account

So you current forecast, from the RMB XXX insurance this last basically, year, has XXX to in can NEV it is expected see RMB the reached billion. reach billion. year And

after-sales is will are the portal expect and XX%, important around total is bring NEV because important these insurance highly taking basically services market. Because part can we OEMs, the basically, revenues hugely, X auto to companies. the to So in half take of value the of services XX% for years entry of insurance following the insurance an they after-sales growing insurance of

why that's software with us system and work to them. and they for provide a So, we decided SaaS

expect we Auto the are of market. OEMs, following least basically, going at the the X controlled in So by X/X we take insurance that years, to the

concludes the back turn company conference to This I remarks. for would the closing like to any session. question-and-answer our over

time you call join taking the on today. We us to appreciate

reach If you questions, out Bye-bye. day. Investor have a please any wonderful Thank Relations. you. Have follow-up to

presentation. The conference Thank attending concluded. for you has today's now

You now may disconnect.