Q2 2024 Cheche Group Earnings Call
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Speaker Change: Please note today's conference is being recorded.
Speaker Change: I will now turn the conference over to Crocker Coulson Investor Relations, who did such a group.
Speaker Change: Sir the floor is yours.
Speaker Change: Thanks, a lot operator.
Speaker Change: Good morning, everyone. Thank you for joining us to review cafes 2024 second quarter results. This morning, catching posted the earnings release and related Investor presentation to its website, which you can find it I our dot catch a group dot com.
Speaker Change: With us on the call today are John.
Speaker Change: Churches, founder and Chief Executive Officer.
Speaker Change: And standard G catches Chief financial Officer.
Speaker Change: After their prepared remarks. This morning are concluded we're going to open up the call to your questions.
Speaker Change: But before we begin some statements in this teleconference are forward looking within the meaning of the federal Securities laws. Although management believes these statements are reasonable we can provide no assurance that they will prove to be accurate because they are prospective in nature.
Speaker Change: Actual results could differ materially from those we discuss today. We encourage you to review the most recent filings with the SEC for risk factors that could materially impact our results.
Speaker Change: As I mentioned in the earnings release is available on IR Dot catch a group dot com and we encourage you to review the reconciliations of certain non-GAAP measures contained within.
Speaker Change: With that it's my pleasure to turn the call over to Lei, Zhang Chief Executive Officer. Please.
Please go ahead.
Speaker Change: Cynthia.
Cynthia: Greetings to everyone. We are glad that youll have a join us.
Cynthia: Our platform has continued its crew with the church of providing thoughtful about a 49 million where Chris.
Blessing over 8 billion USD.
Cynthia: <unk> premiums.
Cynthia: And collaborating with about a 100 and tourists terrorists breed between 2020, one under the second quarter over this year.
Cynthia: We remain China's largest auto insurance technology plentiful by a digital auto insurance transaction premiums and active driver in the ongoing digital transformation.
Cynthia: Globally the industry continues to experience.
Cynthia: Potential growth leader by the Chinese EV manufacturers.
Cynthia: As EV adoption rates in China.
Clearly the second highest sales on the record in this quarter alone we have maintained leadership role as a provider of.
Cynthia: Cut five system and baby the insurance product.
Cynthia: Today positioned on the hospital profitability in this arena, we continue to push forward broking strategic partnership and leveraging our innovative solutions to further creating opportunities.
Cynthia: We kicked off the quarter with previously published work swagger and digital SaaS and service.
Cynthia: Partnership.
We should appoint churches.
Cynthia: Exclusive service provider to Volkswagen and <unk>.
Cynthia: The insurance business.
Cynthia: Following months, we announced a collaboration with Neil insurance broker the insurers.
Cynthia: Well, we committed to the customizing digital insurance service system for the well known EV manufacturer.
Cynthia: Be ICEE group is one of the largest auto manufacturers in China, producing and selling.
Cynthia: Through its own brands as well as foreign a brand leader joined the winters.
<unk>.
Cynthia: We announced with the ICEE group insurance.
Subsidiary Nims co partner with the opportunity to develop relationships with brands.
Umbrella with AAV, all traditional internal combustion vehicles.
Cynthia: The partnership has already lead to lead to several successes, including <unk> auto multi with system, which is expected to cover 200 dealerships by year end.
Cynthia: Beijing, Hyundai system, which is planned for 100 dealerships over the same time.
Cynthia: Horizon.
Cynthia: The robust partnership with Aqua folks.
Cynthia: That is set to include more products. In addition to the service system being launched as a direct SaaS China.
Cynthia: Most recently, we signed the agreement with <unk> group's insurance.
Cynthia: Let me ask approved provider for a family of brands.
Cynthia: Our first established a partnership in this group is with <unk>.
Cynthia: <unk> brand Y App, which provides national listening and other comprehensive reinsurance services across China, including more than 900 deliveries.
Cynthia: Yes.
Cynthia: As of June 32024, the number of embedded policies continues to grow up 147% year over year too.
224000 policies.
Cynthia: Gross premiums almost doubled from the prior year growing 99% too.
Cynthia: 91 million USD over the same period.
Cynthia: Our technology Road map continues to prioritize winning additional higher profile EV manufacturers and growing our current market share.
Cynthia: Our safford.
Cynthia: Enforcing cloud based model is easy to scout and collect well enabled data insights that are.
Cynthia: A chemically leverage this will driving increasing processing of our products.
Cynthia: <unk> primary revenue driver continues to passenger vehicle sales volumes.
Cynthia: As such the company's strategies are related with on aligning dynamic that prepare the automotive industry in China.
Cynthia: To ensure driving future we have leverage our unique position in the industry.
Cynthia: Passing the ever increasing.
Cynthia: Quantities of Inbounded, a data streams to enhance all touch points with user from renew were two claims we assess the refined risk profiles to beta.
Cynthia: Beta updated pricing models under predict Trans Paypal.
Cynthia: Happy manufacturers command a grid.
Cynthia: Steadying, our driving behavior and the large ecosystem working together, we will generate more value for our partners and the higher margins.
Cynthia: And the long term, we will work to extend our partnership with auto manufacturers beyond China and into additional regions such as southeast Asia.
Cynthia: The middle East and Europe, where local insurance companies might struggle to underwriting embedded policies, our platform, giving our well enabled data collected in the space.
Cynthia: Would it be enable to have develop customize the pricing model.
Cynthia: We are pleased with our progress in 2024 and look forward to the opportunities in the back half of the year.
Cynthia: I'll now turn the call over to our Chief CFO Sandra Thank you.
Sandra: I'll answer thinking by touching on our second quarter operational and financial highlights for taking the question.
Total written premiums placed further quarter.
Sandra: Already at RMB, five 6 billion or U S. Dollar 780 million. The total number of policies grew two 1% in the second quarter two for milling as already mentioned.
Sandra: 75000 policies and RMB 662.6, nearly a corresponding premiums or embedded a new annual rate delivery.
Sandra: 147, 3% and 99, 6% respectively.
Sandra: Yeah.
Sandra: In terms of revenues, we generated RMB $851 8 million or U S. Dollar $117 2 million in second quarter, representing an increase of two 5% year over year.
Cost of revenues in second quarter was RMB 829 million anymore.
Sandra: Oregon dollar $113 million up one 9% from the prior year quarter waiver proteins Valeant as marketing expenses growth.
Sandra: 14, 2% to RMB 19 point to anything or U S. Dollar $2 7 million due to the increase in staff costs marketing and share based compensation expenses.
Sandra: General and administrative expenses increased to RMB, $27 7 million or U S. Dollar three 8 million from RMB 19, 6 million in the prior year quarter.
Sandra: Primarily due to increased share based compensation and a one off.
Sandra: With the resolution expenses.
Sandra: And the development expenses.
Sandra: <unk> decreased 21, 1% to RMB $9, one way or the U S dollar one point to anything either.
Sandra: Either by reducing staff cost the total cost and operating expenses increased $2 seven.
Sandra: Is that to RMB, $877 1 million or U S. Dollar 120 point.
7 million from RMB, $854 1 million the prior year quarter.
Share based compensation expenses amortization of intangible assets related to application.
Sandra: <unk> will maintain a professional services team and one of dispute resolution expenses.
Sandra: Adjusted the total cost and operating expenses increased only one nine.
9% from the prior year quarter, our dialogues in the quarter was RMB 23, 6 million or U S. Dollar.
Sandra: At $8 2 million.
Sandra: We went from the comparable RMB 10 to $8 2 million.
Sandra: In the second quarter of 2023, the adjusted net loss for the quarter decreased 38, 8% to RMB <unk> 2 million or U S. Dollar $131 7 million from RMB started meeting in the prior year quarter, resulting from the growth of our revenues.
Sandra: Improvement of our operational efficiency.
Sandra: Turning to our balance sheet, we reported RMB 200.
$4 6 million in cash cash equivalence and short term investments.
Sandra: Looking ahead churches reaffirming.
Sandra: Previously stated guidance, we continue to expect that.
Revenue for 2024, well range from RMB, eight 5 billion to three 7 billion, representing an increase of six 1% to a chocolate and 1% compared to a four year old 2000 ton history that total written premiums are expected to range from RMB 24.
Sandra: Five getting to $26 5 billion, representing an increase of eight 4% to 17, 3% compared to the four year of 2023.
Sandra: That concludes our prepared remarks.
Sandra: Next we will be happy to address your question. Thank you.
Speaker Change: Thank you.
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Today's first question comes from Michael Ward with benchmark. Please go ahead.
Michael Ward: Thanks, Good morning could you just comment on when you sign these new partnerships.
Michael Ward: <unk> come.
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Speaker Change: How you expect them to grow over time thanks.
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Bruce: Thank you Bruce.
In the first half.
Bruce: Sure.
Bruce: So basically we provide a long term.
Bruce: This is Jim system for our service and operations.
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Speaker Change: The short term.
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Speaker Change: The Chinese Senate and differing and is not.
Speaker Change: Okay.
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Speaker Change: He is closing.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you and our next question today comes from Steve Silver.
Steve Silver: This research. Please go ahead.
Speaker Change: Alright.
Speaker Change: Steve I apologize I'm going to place your line on mute for one second it looks like we lost our speakers mentioned if you can just standby for one moment. Please thank you.
Speaker Change: Pardon me. This is the operator, we rejoined the speaker line.
Speaker Change: Steve You May proceed with your question Mouser.
Steve: Okay. Thank you.
Steve: Okay, sorry about that operator.
Steve: So my question is.
Steve: As the company continues to expand the platform's offerings are there any areas of interest that you see for either internal development or for acquisition through M&A.
Steve: Okay.
Steve: Women with Hana.
Steve: Familiar I know <unk> had a 10 year lease.
Steve: <unk> bulk oil ratio I O <unk> June <unk>.
Steve: EMEA, Guangzhou, Shanghai, Shanghai and consider each year.
Steve: Although the <unk> high or Shanghai, the charterer Roger.
Steve: So we will focus on the insurance product innovation around the new ecosystem.
Example.
Steve: In areas of charging for infrastructure and maintaining and other types of value added services.
Steve: Besides we are paying attention to.
Steve: That exploration and cancer operation opportunities.
Steve: Any company from.
Steve: Australian downstream company.
Steve: Thank you.
Okay, and then one more if I may.
Steve: Given the momentum of the referral and partnership programs.
Steve: And the relationship you have with the largest insurance carriers and any of the manufacturers.
Steve: Should that have a favorable effect moving forward on a longer term sales and marketing requirements.
Steve: Okay.
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Speaker Change: Great. Thanks Louise.
Speaker Change: The auto insurance market.
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Speaker Change: You can't even fit our hottest shoes of attitude.
Speaker Change: At the same time by sharing our technology know, how we can help companies to reduce their coach ratios.
Speaker Change: Improve.
Speaker Change: And also in the future.
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Speaker Change: Risks.
Speaker Change: Really David.
Speaker Change: Scenarios, such as intelligent driving ultimate autonomous driving.
Great.
Speaker Change: The digital capabilities.
Speaker Change: In session here.
Speaker Change: Thank you.
Thank you very much.
Speaker Change: Thank you and our next question comes from Allen Klee Maxim. Please go ahead.
Speaker Change: Yes, Hi can you talk a little about.
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Speaker Change: There were efficiencies and then.
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Speaker Change: The global insurance company.
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Speaker Change: Two underwriting and reinsurance are in China.
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So basically for the companies in China they have accumulated.
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Speaker Change: Thank you.
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Speaker Change: Thank you.
Speaker Change: Includes a question and answer session I would like to turn the conference back over to Larry for closing remarks.
Speaker Change: Okay. Thank you okay. Thank you alright.
Speaker Change: Joining the call if you have any follow up questions.
Speaker Change: Please contact the IR. Thank you.
Speaker Change: Thank you. This concludes today's conference call. We thank you for joining the call.
Speaker Change: If you have any follow up questions. Please contact the IR team have a great day and thank you for your attendance.