Cheche Group (CCG) AI Stock Analysis

• Market Cap: $97.74M
• Dividend Yield: N/A
• Average Volume (3M): 698.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 105.31%
• EPS Growth: 95.66%
• Country: US
• Employees: 548
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.04
• Shares Outstanding: 62,178,240
• 10 Day Avg. Volume: 496,654
• 30 Day Avg. Volume: 698,873
• PEG Ratio: 0.09
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -4.45
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: -11.46
• 1Y Price Target: $2.25
• Price Target Upside: 85.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $1.50 ▲(23.97% Upside)

Cheche Group's stock score is primarily driven by its financial performance and technical analysis. The company shows potential for recovery with revenue growth and improved margins, but remains unprofitable. Technical indicators suggest positive momentum, though caution is advised due to overbought signals. Valuation remains a concern with a negative P/E ratio. The earnings call provided optimism with strategic growth initiatives, despite some revenue challenges.

Positive Factors

NEV Insurance Growth

The significant growth in NEV insurance policies indicates strong market demand and positions Cheche Group as a leader in this expanding sector, supporting long-term revenue growth.

AI-Driven Solutions

The introduction of AI-driven tools enhances Cheche's technological edge, potentially increasing efficiency and expanding its market reach, which is crucial for sustained competitive advantage.

Improved Financial Performance

The reduction in net loss reflects improved operational efficiency and cost management, indicating progress towards profitability and financial stability.

Negative Factors

Decrease in Net Revenues

The decline in net revenues suggests challenges in maintaining revenue growth, which could impact the company's ability to achieve long-term financial targets.

Revised Revenue Guidance

The downward revision of revenue guidance indicates potential difficulties in meeting growth expectations, which may affect investor confidence and strategic planning.

Internal Control Challenges

Weaknesses in internal controls can lead to financial misstatements, affecting the company's credibility and operational effectiveness, posing a risk to long-term stability.

Cheche Group Business Overview & Revenue Model

Company Description

Cheche Group Inc. operates an online auto insurance platform. It offers non-auto insurance products, such as non-auto P&C products, as well as non-auto insurance transaction services. The company was founded in 2014 and is headquartered in Beijing, China. Cheche Group Inc. operates as a subsidiary of Prime Impact Cayman, LLC.

How the Company Makes Money

Cheche Group generates revenue primarily through its insurance brokerage services, where it earns commissions on policies sold through its platform. Additionally, the company offers technology solutions and platforms to insurance carriers, which can involve subscription fees, licensing, and service agreements. These platforms help insurance companies streamline their operations, enhance customer engagement, and improve data management. Key partnerships with insurance carriers and other stakeholders in the insurance ecosystem play a significant role in driving Cheche Group's revenue. The company benefits from a growing demand for digital transformation in the insurance industry, which is a significant factor contributing to its earnings.

Cheche Group Financial Statement Overview

Summary

Cheche Group shows revenue growth and improved gross profit margin, but remains unprofitable with negative net profit and cash flow challenges. The balance sheet is stable with low debt, indicating potential for recovery.

Income Statement

Cheche Group has shown revenue growth with a 5.2% increase in 2024 compared to 2023. The gross profit margin improved slightly to 4.6% in 2024. However, the company is still operating at a loss with a negative net profit margin of -1.8% and negative EBIT and EBITDA margins. The trend shows a reduction in net loss, indicating a move towards profitability.

Balance Sheet

The company's balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.10 in 2024, showing effective debt management. However, the equity ratio remains moderate at 27.6%. The company has a strong cash position, but the negative net equity in past years indicates past financial struggles that are being addressed.

Cash Flow

Cheche Group's cash flow statement highlights significant challenges with negative free cash flow and operating cash flow. The free cash flow growth rate is negative, indicating cash flow issues. However, the operating cash flow to net income ratio suggests the company is gradually improving operational efficiency, albeit still negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	773.93M	3.47B	3.30B	2.68B	1.74B
Gross Profit	47.06M	158.76M	140.22M	142.31M	80.81M
EBITDA	-5.22M	-52.20M	-146.95M	-76.83M	-125.61M
Net Income	-2.14M	-61.24M	-159.59M	-91.02M	-146.46M
Balance Sheet
Total Assets	712.50M	1.29B	893.98M	712.50M	868.56M
Cash, Cash Equivalents and Short-Term Investments	149.77M	152.90M	264.87M	149.77M	426.14M
Total Debt	13.90M	35.17M	29.35M	13.90M	36.67M
Total Liabilities	1.97B	932.17M	515.79M	1.97B	1.87B
Stockholders Equity	-1.26B	355.75M	378.18M	-1.26B	-1.01B
Cash Flow
Free Cash Flow	―	-115.80M	-27.50M	-160.10M	-189.22M
Operating Cash Flow	―	-114.14M	-26.95M	-158.86M	-187.59M
Investing Cash Flow	―	-15.60M	12.82M	27.69M	-65.33M
Financing Cash Flow	―	1.95M	140.34M	-159.04M	583.67M

Cheche Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCG, the sentiment is Positive. The current price of 1.21 is below the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.00, and above the 200-day MA of 0.91, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 16.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCG.

Cheche Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCG	58 Neutral	$97.74M	―	-16.65%	―	105.31%	95.66%
SEAT	54 Neutral	$165.65M	-0.74	3.61%	―	-10.52%	-420.74%
PODC	52 Neutral	$44.11M	-6.98	―	―	17.74%	65.18%
BODI	52 Neutral	$40.28M	-0.67	-288.76%	―	-31.96%	56.06%
MNY	47 Neutral	$59.19M	-3.79	-78.35%	―	-22.90%	88.91%
GIFT	35 Underperform	$32.35M	-2.11	―	―	-28.77%	9.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Cheche Group Corporate Events

Cheche Group Releases Interim Financial Statements for 2025

On September 16, 2025, Cheche Group Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission, incorporating its unaudited interim condensed consolidated financial statements for the periods ending December 31, 2024, and June 30, 2025. The filing includes discussions on the company’s financial condition and operational results, highlighting changes in assets, liabilities, and shareholders’ equity. This release provides stakeholders with insights into the company’s financial health and strategic positioning, which could influence investor confidence and market perception.

Cheche Group Unveils AI Initiatives Amid Financial Growth in NEV Sector

On August 28, 2025, Cheche Group announced its unaudited financial results for the first half of 2025, highlighting a strategic focus on international expansion through AI-driven initiatives. The company reported a 135.5% increase in partnerships with NEV companies, resulting in substantial growth in policy numbers and premiums. Despite a decrease in net revenues, Cheche improved its net loss by 53.4% year-over-year, attributed to cost optimization and a shift in business structure. The announcement also emphasized Cheche’s plans to commercialize AI tools internationally, aiming to strengthen its position in the global mobility and insurance markets.

Cheche Group Inc. Appoints New Auditor Amid Internal Control Challenges

On July 18, 2025, Cheche Group Inc. announced a change in its independent registered public accounting firm, dismissing PricewaterhouseCoopers Zhong Tian LLP and appointing Marcum Asia CPAs LLP for the year ending December 31, 2025. The decision, approved by the company’s board and audit committee, follows a period without disagreements or reportable events with PwC ZT, except for identified material weaknesses in internal controls over financial reporting. These weaknesses included insufficient accounting personnel knowledgeable in U.S. GAAP and inadequate financial closing procedures, which have been communicated to Marcum Asia.