Cheche Group Inc. Annual Report: A Simple Guide

I’m writing this guide to help you understand how Cheche Group Inc. performed this year. My goal is to turn complex filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Cheche Group acts as a digital bridge for China’s insurance industry. They provide a platform that connects insurance companies with the people and businesses needing coverage. By replacing paper-heavy, manual work with technology, they make buying and managing insurance faster and more efficient.

They earn money in two ways:

• Brokerage services: They earn commissions for helping sell insurance policies.
• Technology solutions: They sell software and digital tools to insurance companies to help them run more smoothly.

2. Financial performance: The trend line

Cheche is currently in a phase focused on scaling its operations and improving efficiency.

• Revenue: They brought in 3.01 billion RMB in 2025, compared to 3.47 billion RMB in 2024 and 3.30 billion RMB in 2023.
• Profitability: The company is successfully narrowing its losses. They lost 17.8 million RMB in 2025, a significant improvement from the 61.2 million RMB loss in 2024 and the 159.6 million RMB loss in 2023.
• Dividends: They do not pay dividends. The company is reinvesting its capital to fuel growth and enhance its technology platform.

3. Major wins and challenges

The company is betting its future on China’s "New Energy Vehicle" (NEV) market. They aim to serve as the primary tech backbone for insurance carriers, creating a steady stream of subscription-like revenue. While revenue fluctuated in 2025, their ability to reduce costs demonstrates a focus on operational maturity. The primary challenge remains the intense competition within the Chinese market, requiring constant platform upgrades to retain partners and maintain a competitive edge.

4. Financial health and the "VIE" structure

Cheche uses a "Variable Interest Entity" (VIE) structure. You own shares in a Cayman Islands holding company that maintains contracts with the Chinese operating business.

A note on cash: The company operates under strict government rules regarding the movement of capital. Cash generated by Chinese operations is subject to regulatory oversight, which limits the ease of moving funds to the offshore parent company. The parent company relies on these contractual arrangements to capture the economic benefits of the business.

5. Key risks

• Regulations: Operating in China requires strict adherence to evolving laws. Changes in regulations regarding data privacy, cybersecurity, or insurance could impact the business model.
• The "VIE" Risk: These contractual structures have not been fully tested in court. If the Chinese government were to restrict or ban this structure, the offshore parent company could lose its ability to control the underlying business, which would significantly impact the value of your shares.
• Currency Controls: The Chinese government limits the conversion of RMB into U.S. dollars. Additionally, fluctuations in exchange rates can affect the reported value of your investment.

6. Future outlook

Cheche is currently focused on narrowing its losses and stabilizing its financial position. While the company is not yet profitable, the trend of shrinking losses is a key indicator of their progress. Investors should weigh this operational improvement against the risks inherent in their corporate structure and the regulatory environment in China. Success will depend on their ability to scale their NEV insurance business while navigating these external hurdles.

Final thought for your decision: When considering this investment, ask yourself if you are comfortable with the risks of the VIE structure and the regulatory environment in China. If you believe in the growth potential of the NEV insurance market, the company's recent trend of reducing losses may be a signal that they are moving toward a more sustainable business model.