- Total Premiums Placed (Q1 2024): RMB7.4 billion ($1 billion), up 15.6% year-over-year.
- Total Premiums Placed (Full Year 2024): RMB24.3 billion ($3.3 billion), up 7.5% year-over-year.
- Number of Policies Issued (Q1 2024): 5.1 million, up from 4.8 million in the prior year quarter.
- Number of Policies Issued (Full Year 2024): 17.3 million, up from 15.8 million in the prior year.
- Embedded NEV Policies (Full Year 2024): 1.1 million, up 159% year-over-year.
- Embedded NEV Premiums (Full Year 2024): RMB3.3 billion ($452 million), up 128% year-over-year.
- Net Revenues (Q1 2024): RMB983.6 million ($134.8 million), up 13.4% year-over-year.
- Net Revenues (Full Year 2024): RMB3.5 billion ($175.8 million), up 5.2% year-over-year.
- Cost of Revenues (Q1 2024): RMB932 million ($127.7 million), up 13% year-over-year.
- Selling and Marketing Expenses (Q1 2024): RMB19.7 million ($2.7 million), down 20.1% year-over-year.
- Selling and Marketing Expenses (Full Year 2024): RMB79.5 million ($10.9 million), down 28.7% year-over-year.
- General and Administrative Expenses (Q1 2024): RMB25.7 million ($3.5 million), down 53.2% year-over-year.
- General and Administrative Expenses (Full Year 2024): RMB107.9 million ($14.8 million), down 22.6% year-over-year.
- Research and Development Expenses (Q1 2024): RMB9.3 million ($1.3 million), down 25.3% year-over-year.
- Operating Loss (Q1 2024): RMB3 million ($0.4 million), decreased by 93.7% year-over-year.
- Operating Loss (Full Year 2024): RMB66.5 million ($9.1 million), decreased by 60.3% year-over-year.
- Net Loss (Q1 2024): RMB10.4 million ($1.4 million), improved by 67.4% year-over-year.
- Net Loss (Full Year 2024): RMB61.2 million ($8.4 million), improved by 61.6% year-over-year.
- Cash Equivalents and Short-term Investments (Q1 2024): RMB152.9 million ($21 million).
- 2025 Revenue Guidance: Expected net revenues of RMB3.6 billion to RMB3.8 billion, representing an increase of 3.7% to 9.4% year-over-year.
Release Date: March 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Prime Impact Acquisition I (PRIUF, Financial) reported a significant increase in embedded future policies, up 159% year-on-year to 1.1 million.
- The company saw a 128% growth in NEV-related premiums, reaching $452 million.
- Cheche Group, associated with PRIUF, is expanding its partnerships, now collaborating with 15 NEV manufacturers.
- The company is leveraging AI and machine learning to enhance efficiency and reduce costs, particularly in fraud detection and claims management.
- PRIUF's innovative Tianmu insurance anti-fraud and risk control model was recognized in the top 100 AI products of 2024, showcasing its commitment to cutting-edge technology.
Negative Points
- The traditional car insurance market is experiencing slow growth, with year-over-year increases of only 4% to 5%.
- Despite improvements, the company still reported a net loss of RMB10.4 million ($1.4 million) for the quarter.
- Operating loss for the full year of 2024 was RMB66.5 million ($9.1 million), indicating ongoing financial challenges.
- The company anticipates continued investment in AI R&D, which could impact short-term profitability.
- PRIUF's growth heavily relies on the NEV market, which, while currently strong, could face volatility.
Q & A Highlights
Q: Could you talk about how you expect to increase revenue streams from existing partners?
A: Lei Zhang, CEO, explained that revenue growth in the NEV market will come from expanding partnerships beyond the current 15 partners, providing services for used vehicles and insurance renewals, offering non-auto insurance services, and covering more car types within existing partnerships.
Q: How is Cheche Group using artificial intelligence, and how might this expand?
A: Lei Zhang, CEO, highlighted that AI is used in intelligent driving systems to reduce collision incidents and in product liability insurance. Cheche provides an independent third-party platform using blockchain and AI for fraud prevention and analysis in traffic accidents.
Q: For your 2025 revenue guidance, how much growth is expected from market expansion versus new offerings?
A: Sandra Ji, CFO, stated that traditional car insurance market growth is expected to align with the industry at 4-5% annually. However, NEV market growth is projected at 40-50%, with Cheche expecting to exceed this due to their momentum. NEV insurance offers higher margins, contributing to profitability.
Q: Are there any areas identified for capital investments to continue growth?
A: Sandra Ji, CFO, mentioned that investments will focus on AI R&D, particularly in developing AI claim management and damage assessment tools, as well as third-party platforms for autonomous driving insurance. No significant investments are expected in other areas.
Q: Why do OEMs prefer to cooperate with Cheche Group?
A: Lei Zhang, CEO, explained that Cheche is a leading digital platform in China with extensive experience in auto insurance operations. They provide comprehensive services and have connected core systems with multiple insurance companies, making them a preferred choice for OEMs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
