Cheche Group Breaks Ground in Achieving Adjusted Operating Profitability
Cheche Group, a leading insurance company, has made significant strides in its evolution from a transactional insurance platform to an AI-powered intelligent insurance ecosystem. In its H2 and full year 2025 earnings conference call, the company announced that it had achieved adjusted operating profitability for the first time in its history, a feat marked by Lei Zhang, Cheche's Founder and CEO, as "an inflection point" in the company's evolution.
The achievement is particularly notable given the ongoing fee rate compression driven by rapid growth of NEV premiums within the company's revenue mix. Despite this challenge, Cheche delivered a gross profit growth, dramatically reduced operating losses, and achieved adjusted net profitability on a full year basis, with an adjusted net income of RMB 11.6 million or $1.7 million for the full year.
The company's success can be attributed to disciplined cost management across every line of operating expenses, which were reduced in total by more than 19% year-over-year. This was achieved while growing total written premiums plus by 11% and total policies insured by 3 million, demonstrating that scale and efficiency can indeed work together at Cheche.
The shift towards NEV premiums, which carry a lower service fee risk than traditional auto insurance, is also a significant factor in the company's profitability story. These premiums now represent 23% of the company's total written premiums for the full year, up from 13% in the prior year. This shift creates revenue headwinds initially but drives higher growth margins as Cheche's AI-powered tools allow it to capture higher tech risks in the NEV insurance market and deploy capabilities that command premium pricing.
Cheche has also made significant progress in translating its AI strategy into operational capability, actively deploying AI pricing models in collaboration with several leading Chinese insurance companies. The company is also developing and testing AI agents to fundamentally change how it engages with car owners at the point of renewal.
The successful execution of Cheche's strategy transformation validates the resilience of its business model, a testament to the company's ability to adapt and innovate in response to changing market conditions.
Lei Zhang emphasized that this achievement is not incremental but rather an inflection point in the company's evolution. The company intends to continue building on this foundation in 2026, aiming to further leverage its scale and efficiency to drive growth and profitability.
