Cheche Group Reports Third Quarter 2024 Unaudited Financial Results

BEIJING, Nov. 26, 2024 /PRNewswire/ -- Cheche Group Inc. (NASDAQ: CCG) ("Cheche", the "Company" or "we"), China's leading auto insurance technology platform, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Financial and Operational Highlights

    --  Net Revenues for the quarter increased 3.3% year-over-year to RMB850.5
        million (US$121.2 million), while net revenues for the first nine months
        of 2024 increased 2.3% over the comparable prior year period to RMB2.5
        billion (US$354.8 million).
    --  Net Income for the quarter was RMB4.1 million (US$0.6 million), compared
        to a net loss of RMB55.4 million for the prior-year quarter, while net
        loss for the first nine months of 2024 decreased 60.2% to RMB50.8
        million (US$7.2 million) over the prior-year period.
    --  Adjusted Net Income ((1)) for the quarter was RMB2.6 million (US$0.4
        million), compared to an adjusted net loss of RMB0.6 million for the
        prior-year quarter, while adjusted net loss for the first nine months of
        2024 decreased 23.0% to RMB21.8 million (US$3.1 million), compared to
        the prior-year period.
    --  Total written premiums placed for the quarter increased 4.0% to RMB5.9
        billion (US$0.8 billion) compared to the prior-year period, while total
        written premiums placed for the first nine months of 2024 increased 4.1%
        over the comparable prior-year period to RMB16.9 billion (US$2.4
        billion).
    --  Total number of policies issued for the quarter increased 5.0% to 4.2
        million from 4.0 million for the prior-year quarter, while the total
        number of policies issued over the first nine months of 2024 increased
        11.9% over the comparable prior-year period to 12.2 million.
    --  Partnerships with New Energy Vehicle (NEV) companies ((2)) numbered 14
        in the quarter and led to 292,000 embedded policies with corresponding
        written premium of RMB884.2 million (US$126.0 million), representing an
        increase of 149.6% and 121.6 % compared to the prior-year quarter,
        respectively. Embedded policies and corresponding written premium for
        the first nine months of 2024 reached 636,000 and RMB1.9 billion
        (US$273.2 million), respectively, representing growth of 144.6 % for
        policies embedded and 104.2% for written premium compared to the
        prior-year period.


     
     (1) Adjusted Net Loss/Income is a non-GAAP measure. For further information on the non-GAAP financial measures presented above, see the "Non-GAAP Financial Measures" section below.

        (2) The rapid growth of the NEV market has created new opportunities for auto insurance offerings and propelled revenue growth of auto insurance providers. Cheche started collaborating with NEV manufacturers in 2022, which yielded considerable results in 2023. Cheche believes that the further development of the NEV market and the introduction of innovative NEV auto insurance solutions will further fuel the revenue contribution of its partnership with
         NEV manufacturers. The management of Cheche utilizes the number of partnerships with NEV manufacturers, the number of insurance policies embedded in the new NEV deliveries, and the number of corresponding premiums generated from such embedded policies as the primary operating metrics to evaluate its business. It presents such operating metrics for investors to better understand and assess Cheche's business.

Management Comments

"We are proud to announce that Cheche reported net income profitability for the first time on both a GAAP and adjusted net income basis. This quarter's milestone substantiates the merit of our business model and the growing conviction in our value proposition," said Lei Zhang, Founder, CEO, and Chairman of Cheche Group. "We continue to work with both NEV manufacturers and insurers to leverage advanced data analysis, delivering tools that will reward responsible drivers, reduce fraud, and bring efficiencies to claims processing to support profitability, transparency, and affordability as the transition to automated mobility accelerates.

Mr. Zhang continued, "With China producing 48% more NEVs in September over the prior year, according to China Association of Automobile Manufacturers, and NEV sales again surpassing traditional fuel car sales in the same month, our innovative platform will continue to meet the evolving insurance needs of car owners, manufacturers, and insurers."

Unaudited Third Quarter 2024 Financial Results

Net Revenues were RMB850.5 million (US$121.2 million), representing a 3.3% year-over-year increase from the prior-year quarter. The growth was driven by increased insurance transactions conducted through Cheche's platform by referral and third-party platform partners.

Cost of Revenues increased 3.0% year-over-year to RMB808.1 million (US$115.2 million) from the prior-year quarter, consistent with the growth of business volume and net revenues.

Selling and Marketing Expenses decreased 53.6% to RMB18.1 million (US$2.6 million) from RMB39.0 million in the prior-year quarter, mainly due to the decrease in share-based compensation expenses and staff cost. Excluding share-based compensation expenses, selling and marketing expenses were RMB17.4 million (US$2.5 million), a decrease of 6.5% compared to the prior-year quarter.

General and Administrative Expenses decreased 41.3% to RMB20.4 million (US$2.9 million) from RMB34.8 million for the prior-year quarter, mainly due to the decrease in share-based compensation and professional service fees. Excluding share-based compensation and listing-related professional service fees, general and administrative expenses increased by RMB3.5 million from RMB15.0 million to RMB18.5 million (US$2.6 million), primarily due to the increase of post-listing professional service fees.

Research and Development Expenses decreased 24.5% to RMB10.2 million (US$1.4 million) from RMB13.5 million in the prior-year quarter. The change was mainly due to decreased share-based compensation expenses, partially offset by the increase of staff costs. Excluding share-based compensation expenses, research and development expenses decreased 8.8% to RMB9.8 million (US$1.4 million) from RMB10.8 million in the prior-year quarter.

Total Cost and Operating Expenses decreased by 1.8% to RMB856.8 million (US$122.1 million) from RMB872.0 million in the prior-year quarter, mainly due to the increased cost of revenues and the decrease in share-based compensation expenses. Excluding share-based compensation expenses, amortization of intangible assets related to the acquisition and listing-related professional service fees, total cost and operating expenses increased by 3.0% from the prior-year quarter.

Net Income for the quarter was RMB4.1 million (US$0.6 million), compared to a net loss of RMB55.4 million for the prior-year quarter. Excluding non-GAAP expenses, the Adjusted Net Income ((1)) for the quarter was RMB2.6 million (US$0.4 million), due to the improvement of operating results and the positive impact from foreign exchange rates, compared to an adjusted net loss of RMB0.6 million for the prior-year quarter.

Net Income attributable to Cheche's shareholders was RMB4.1 million (US$0.6 million), compared to a net loss attributable to Cheche's shareholders of RMB707.6 million for the prior-year quarter.

Adjusted Net Income attributable to Cheche's shareholders was RMB2.6 million (US$0.4 million), compared to an adjusted net loss attributable to Cheche's shareholders of RMB652.7 million for the prior-year quarter.

Net Income Per Share, basic and diluted, was RMB0.05 (US$0.01), compared to a net loss per share of RMB17.52, basic and diluted, for the prior-year quarter.

Adjusted Net Income Per Share, basic and diluted, was RMB0.03 (US$0.00), compared to an adjusted net loss per share of RMB16.16, basic and diluted, for the prior-year quarter.

3Q24 and Subsequent Business Highlights

    --  On September 3, 2024, Cheche announced a partnership with Shanghai Jidu
        Automobile Company Limited ("JI YUE") to further diversify its partner
        network with leaders in the NEV industry. Cheche successfully launched a
        system for JI YUE, creating channels for online and offline purchasing
        of auto and non-auto insurance products. The system is integrated into
        Cheche's core platform and is equipped with resources to grow and
        strengthen JI YUE's sales channels and enhance account settlement
        capabilities, among other functionalities.
    --  On September 12, 2024, Cheche announced a partnership with Laoyou
        Insurance Brokerage Co., Ltd. ("Laoyou Insurance"), a wholly controlled
        subsidiary of Great Wall Motor Company Limited ("GWM"), a top ten
        Chinese auto manufacturer. Cheche's insurance solutions and mature
        transaction system have been gradually rolled out with GWM's newly
        established direct-sales network in more than 20 cities nationwide.
        Cheche plans to develop a comprehensive insurance solution tailored for
        traditional automakers within one to two years.
    --  On October 1, 2024, Cheche announced a strategic partnership with The
        Tokio Marine & Nichido Fire Insurance Company (China) Limited ("TMNCH"),
        as Cheche continues to broaden its collaborations with insurance
        companies in China. Leveraging each other's strengths, the two companies
        are working to develop specialized insurance products, services, and
        sales strategies. Cheche's agreement with TMNCH is two pronged. This
        collaboration will enhance Cheche's insurance service capabilities while
        offering increased scale for traditional automotive companies and pave
        the way for future partnerships with Japanese automotive companies.

Balance Sheet

As of September 30, 2024, the Company had RMB194.6 million (US$27.7 million) in total cash, cash equivalents and short-term investments.

Business Outlook

Cheche is affirming its full-year 2024 outlook:

    --  Net Revenues are expected to range from RMB3.5 billion to RMB3.7
        billion, representing an increase of 6.1% to 12.1%, compared to the full
        year of 2023.
    --  Total written premiums placed are expected to range from RMB24.5 billion
        to RMB26.5 billion, representing an increase of 8.4% to 17.3%, compared
        to the full year of 2023.

Conference Call

Cheche will host a webcast and conference call to discuss its third quarter 2024 results today at 8:00 a.m. EST. This earnings release and a related investor deck will be available prior to the event in the "Quarterly Results" section under "Financials," while the live webcast will be available in the "Events" section under the "News & Events" header on the investor relations website at ir.chechegroup.com.

The dial-in numbers for the conference call will be as follows:

    --  Participant (toll-free): 1-888-346-8982
    --  Participant (international): 1-412-902-4272
    --  Hong Kong LT:  852-301-84992
    --  Hong Kong Toll Free:  800-905945
    --  China Toll-Free:  4001-201203

Please dial in 10 to 15 minutes before the scheduled start time and request Cheche's third quarter earnings call.

A webcast replay will be available for one year following the call.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the reader's convenience. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referenced could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

About Cheche Group Inc.

Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en.

Cheche Group Inc.:

IR@chechegroup.com

Crocker Coulson
crocker.coulson@aummedia.org
(646) 652-7185

Non-GAAP Financial Measures

Cheche has provided non-GAAP financial measures in this press release that have not been prepared in accordance with generally accepted accounting principles (GAAP) in the United States.

Cheche uses adjusted cost of revenues, adjusted selling and marketing expenses, adjusted general and administrative expenses, adjusted research and development expenses, adjusted total cost and operating expenses, adjusted net loss/income, and adjusted net loss/income per share, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes.

Cheche defines adjusted total cost and operating expenses as total cost and operating expenses adjusted for the impact of share-based compensation, amortization of intangible assets related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), listing-related professional service fees and dispute resolution expenses, representing expenses Cheche incurred in a dispute with a certain security holder. Cheche defines adjusted net loss/income as net loss/income adjusted for the impact of share-based compensation expenses, amortization of intangible assets, and changes in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), change in fair value of warrants, listing related professional service fees and dispute resolution expenses. Adjusted net loss/income per share, basic and diluted, is calculated as adjusted net loss/income divided by weighted-average ordinary shares outstanding.

Cheche believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the impact of share-based compensation expenses, amortization of intangible assets related to acquisition, and change in fair value of amounts due to a related party associated with the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), change in fair value of warrants, and listing related professional service fees and dispute resolution expenses. Cheche believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP nor presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss /income or any other measure of performance or as an indicator of Cheche's operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Cheche encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Cheche mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance.

Safe Harbor Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimations, and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's ability to scale and grow its business, the Company's advantages and expected growth, and its ability to source and retain talent, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These statements involve risks, uncertainties, and other factors that may cause the Company's actual results, activity levels, performance, or achievements to materially differ from those expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.



     
                Unaudited 
                Condensed Consolidated Balance Sheets (
            All 
     amounts in thousands, except 
       for 
     share

       and per share 
                data)




                                                                                                                    December 31,            September 30,  September 30,


                                                                                                                            2023                      2024            2024


                                                                                                                         RMB                     RMB            USD





     
                ASSETS



     
                Current assets:



     Cash and cash equivalents                                                                                          243,392                   131,110          18,683



     Short-term investments                                                                                              21,474                    63,512           9,050



     Accounts receivable, net                                                                                           466,066                   746,873         106,429



     Prepayments and other current assets                                                                                49,321                    41,829           5,961



     
                Total current assets                                                                                  780,253                   983,324         140,123





     
                Non-current assets:



     Restricted Cash                                                                                                      5,000                     5,000             712



     Property, equipment and leasehold improvement, net                                                                   1,667                     2,205             314



     Intangible assets, net                                                                                               8,050                     6,475             923



     Right-of-use assets                                                                                                 10,249                     8,936           1,273



     Goodwill                                                                                                            84,609                    84,609          12,057



     Other non-current assets                                                                                             4,149                     4,930             703



     
                Total non-current assets                                                                              113,724                   112,155          15,982



     
                Total assets                                                                                          893,977                 1,095,479         156,105





     
                LIABILITIES AND SHAREHOLDERS' EQUITY



     
                Current liabilities:



     Accounts payable                                                                                                   316,868                   565,806          80,627



     Short-term borrowings                                                                                               20,000                    15,000           2,137



     Contract liabilities                                                                                                 4,295                     2,524             360



     Salary and welfare benefits payable                                                                                 73,609                    78,500          11,186



     Tax payable                                                                                                            950                     4,547             648



     Amounts due to related party                                                                                        55,251



     Accrued expenses and other current liabilities                                                                      25,759                    17,905           2,552



     Short-term lease liabilities                                                                                         3,951                     4,270             608



     Warrant                                                                                                                850                         1



     
                Total current liabilities                                                                             501,533                   688,553          98,118





     
                Non-current liabilities:



     Amounts due to related party                                                                                             -                   44,420           6,330



     Deferred tax liabilities                                                                                             2,013                     1,619             231



     Long-term lease liabilities                                                                                          5,398                     3,960             564



     Deferred revenue                                                                                                     1,432                     1,432             204



     Warrant                                                                                                              5,419                     1,241             177



     
                Total non-current liabilities                                                                          14,262                    52,672           7,506





     
                Total liabilities                                                                                     515,795                   741,225         105,624





     Ordinary shares                                                                                                          5                         6               1



     Treasury stock                                                                                                     (1,025)                  (1,025)          (146)



     Additional paid-in capital                                                                                       2,491,873                 2,521,942         359,374



     Accumulated deficit                                                                                            (2,113,821)              (2,164,642)      (308,459)



     Accumulated other comprehensive income/(loss)                                                                        1,150                   (2,027)          (289)


                   Total Cheche's 
                s
                hareholders' 
            equity                                378,182                   354,254          50,481





     
                Total liabilities and shareholders' equity                                                            893,977                 1,095,479         156,105



              
                Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income


              
                 (All amounts in thousands, except for share and per share data)


                                                                                                                                       For the Three Months Ended                                         For the 
               Nine
                                                                                                                                                                                                                    Months Ended




                                                                                                                      September                   September         September         September                        September            September
                                                                                                                               3                            3                  3                  3                                 3                     3
                                                                                                                                    0                            0                 0,                  0                                 0                    0,
                                                                                                                                     ,                           ,                                   ,                                ,


                                                                                                                                  2023                         2024              2024                2023                              2024                 2024


                                                                                                                         RMB                         RMB               USD               RMB                              RMB                  USD





              Net revenues                                                                                                    823,269                      850,517           121,198           2,433,640                         2,489,503              354,751





              
                Cost and 
                Operating expenses:



              Cost of revenues                                                                                              (784,782)                   (808,079)        (115,150)        (2,336,761)                      (2,382,364)           (339,484)



              Selling and marketing expenses                                                                                 (38,991)                    (18,110)          (2,581)           (86,747)                         (59,771)             (8,517)



              General and administrative expenses                                                                            (34,809)                    (20,422)          (2,910)           (84,503)                         (82,175)            (11,710)



              Research and development expenses                                                                              (13,465)                    (10,166)          (1,449)           (44,768)                         (28,691)             (4,088)


                            Total 
                cost and 
                operating expense
                                 s                                                                                           (872,047)                   (856,777)        (122,090)        (2,552,779)                      (2,553,001)           (363,799)





              
                O
                ther expense
                s:



              Interest income                                                                                                   1,212                        1,753               250               2,695                             5,010                  714



              Interest expense                                                                                                  (329)                       (176)             (25)              (871)                            (616)                (88)



              Foreign exchange gains/(losses)                                                                                   1,069                        3,502               499             (5,265)                            2,447                  349



              Government grants                                                                                                 2,685                          243                35               9,925                               477                   68



              Changes in fair value of warrant                                                                               (10,307)                         992               141            (10,434)                            4,368                  622



              Changes in fair value of amounts due                                                                            (1,086)                       3,901               556             (4,922)                              615                   88
       to related party



              Others, net                                                                                                        (33)                           6                 1                 (2)                              186                   27


                            (
                Loss
                )/income
                 before income
                             tax                                                                                              (55,567)                       3,961               565           (128,013)                         (51,011)             (7,268)



              Income tax credit                                                                                                   128                           90                13                 386                               190                   27




                            Net 
                (
                loss
                )/
                             income                                                                                           (55,439)                       4,051               578           (127,627)                         (50,821)             (7,241)



              Accretions to preferred shares                                                                                (652,178)                                                       (762,169)
        redemption value


                            Net 
                (
                loss
                )/income
                                attributable to the                                                                          (707,617)                       4,051               578           (889,796)                         (50,821)             (7,241)
        Cheche's ordinary shareholders




                            Net 
                (
                loss
                )/
                             income                                                                                           (55,439)                       4,051               578           (127,627)                         (50,821)             (7,241)



              
                Other comprehensive (loss)/income:



              Foreign currency translation                                                                                    (1,433)                     (5,408)            (771)              5,977                           (3,393)               (483)
       adjustments, net of nil tax



              Fair value changes of amounts due to                                                                              (104)                         470                67               (404)                              216                   31
      related party due to own credit risk


                            Total 
                other 
                comprehensive                                                (1,537)                     (4,938)            (704)              5,573                           (3,177)               (452)

                  (
                loss
                )/
                income





              
                Total c
                omprehensive loss                                                             (56,976)                       (887)            (126)          (122,054)                         (53,998)             (7,693)




                            Net 
                (
                loss
                )/income
                 per
                             ordinary
       shares outstanding



              Basic                                                                                                           (17.52)                        0.05              0.01             (25.21)                           (0.66)              (0.09)



              Diluted                                                                                                         (17.52)                        0.05              0.01             (25.21)                           (0.66)              (0.09)



              
                Weighted average number of
       ordinary shares 
                outstanding



              Basic                                                                                                        40,396,693                   79,396,465        79,396,465          35,297,133                        77,324,958           77,324,958



              Diluted                                                                                                      40,396,693                   86,508,545        86,508,545          35,297,133                        77,324,958           77,324,958



              
                Reconciliation of GAAP Cost and Operating Expenses to Non-GAAP Cost and Operating
    Expenses (Unaudited)


              (All amounts in thousands)


                                                                                                                                            For the 
                Three                              For the 
                Nine
                                                                                                                                                      Months Ended                                           Months Ended




                                                                                                                  September                           September          September     September                September     September

                                                                                                                  3                                        3                   3              3                         3
                                                                                                                     0                                       0                  0,              0                         0           0,
                                                                                                                          ,                                   ,                                ,                        ,     3


                                                                                                                       2023                                 2024                2024           2023                      2024           2024


                                                                                                                  RMB                                    RMB                USD           RMB                      RMB        USD



              Cost of revenues                                                                                   (784,782)                           (808,079)          (115,150)   (2,336,761)              (2,382,364)     (339,484)



              Add: Share-based compensation                                                                            114                                    3                               187                         9              1
       expenses



              Amortization of intangible assets related                                                                525                                  525                  75          1,575                     1,575            224
       to acquisition



              
                Adjusted Cost of revenues                                                             (784,143)                           (807,551)          (115,075)   (2,334,999)              (2,380,780)     (339,259)





              Selling and marketing expenses                                                                      (38,991)                            (18,110)            (2,581)      (86,747)                 (59,771)       (8,517)



              Add: Share-based compensation                                                                         20,381                                  718                 102         30,054                     4,350            620
       expenses



              
                Adjusted Selling and marketing                                                         (18,610)                            (17,392)            (2,479)      (56,693)                 (55,421)       (7,897)
       expenses





              General and administrative expenses                                                                 (34,809)                            (20,422)            (2,910)      (84,503)                 (82,175)      (11,710)



              Add: Share-based compensation                                                                         10,334                                1,898                 270         25,689                    24,044          3,426
       expenses



              Listing related professional expenses                                                                  9,435                                                                14,972



              Dispute resolution expenses (1)                                                                            -                                                                                         2,355            336



              
                Adjusted General and administrative                                                    (15,040)                            (18,524)            (2,640)      (43,842)                 (55,776)       (7,948)
       expenses





              Research and development expenses                                                                   (13,465)                            (10,166)            (1,449)      (44,768)                 (28,691)       (4,088)



              Add: Share-based compensation                                                                          2,688                                  334                  48         11,462                     1,667            238
       expenses



              
                Adjusted Research and development                                                      (10,777)                             (9,832)            (1,401)      (33,306)                 (27,024)       (3,850)
       expenses





              
                Total cost and operating expenses                                                     (872,047)                           (856,777)          (122,090)   (2,552,779)              (2,553,001)     (363,799)



              
                Adjusted total cost and operating                                                     (828,570)                           (853,299)          (121,595)   (2,468,840)              (2,519,001)     (358,954)
       expenses





              
                (
                1
                ) represents expenses incurred by Cheche in connection with settling a dispute with a certain security holder
     ,

                which 
                are
                 not directly related to the core operations of 
                Cheche's
                 business.



             
                Reconciliation of GAAP to Non-GAAP Measures (Unaudited)


             (All amounts in thousands, except for share data and per share data)


                                                                                                              For the 
                Three                          For the 
                Nine
                                                                                                                        Months Ended                                        Months Ended




                                                                                                    September           September        September   September                  September     September

                                                                                                        3                    3                 3            3                           3              3
                                                                                                          0                    0                 0            0                           0              0
                                                                                                            ,                   ,                ,           ,                          ,             ,


                                                                                                         2023                 2024              2024         2023                        2024           2024


                                                                                                       RMB                 RMB              USD         RMB                        RMB           USD



             
                Net 
                (loss)/income                                            (55,439)               4,051               578    (127,627)                   (50,821)       (7,241)



             Add: Share-based compensation expenses                                                   33,517                2,953               420       67,392                      30,070          4,285



             Amortization of intangible assets related to acquisition                                    525                  525                75        1,575                       1,575            224



             Listing related professional expenses                                                     9,435                                            14,972



             Changes in fair value of warrant                                                         10,307                (992)            (141)      10,434                     (4,368)         (622)



             Changes in fair value of amounts due to related party                                     1,086              (3,901)            (556)       4,922                       (615)          (88)



             Dispute resolution expenses                                                                   -                                                                       2,355            336



             
                Adjusted net 
                (loss)/income                                      (569)               2,636               376     (28,332)                   (21,804)       (3,106)



             Accretions to preferred shares redemption value                                       (652,178)                                        (762,169)



             
                Adjusted net 
                (loss)/income
                 attributable to     (652,747)               2,636               376    (790,501)                   (21,804)       (3,106)
      Cheche's ordinary shareholders





             
                Weighted average number of ordinary shares used
       in computing non-GAAP adjusted 
                net

                   (loss)/income
                 per ordinary share



             Basic                                                                                40,396,693           79,396,465        79,396,465   35,297,133                  77,324,958     77,324,958



             Diluted                                                                              40,396,693           86,508,545        86,508,545   35,297,133                  77,324,958     77,324,958





             
                Net 
                (loss)/income
                 per ordinary share



             Basic                                                                                   (17.52)                0.05              0.01      (25.21)                     (0.66)        (0.09)



             Diluted                                                                                 (17.52)                0.05              0.01      (25.21)                     (0.66)        (0.09)





             
                Non-GAAP adjustments to net 
                (loss)/income
                 per
      ordinary share



             Basic                                                                                      1.36               (0.02)           (0.01)        2.81                        0.38           0.05



             Diluted                                                                                    1.36               (0.02)           (0.01)        2.81                        0.38           0.05





             
                Adjusted net 
                (loss)/income
                 per ordinary share



             Basic                                                                                   (16.16)                0.03              0.00      (22.40)                     (0.28)        (0.04)



             Diluted                                                                                 (16.16)                0.03              0.00      (22.40)                     (0.28)        (0.04)

View original content:https://www.prnewswire.com/news-releases/cheche-group-reports-third-quarter-2024-unaudited-financial-results-302316388.html

SOURCE Cheche Group Inc.