Cheche Group Inc.

Hello and welcome to the CHCHA group first quarter 2024 results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Crocker Coulson, Investor Relations for Checha Group. Please go ahead.

Thanks so much, Operator. Good morning to all of you joining us here in the U.S. Good evening to those of you joining us from Asia. And we'd like to welcome you all and thank you for joining us to review Checha's 2024 first quarter results. This morning, Checha posted both the earnings release and the related investor presentation to our website, and you can find that at ir.chechagroup.com. Now, with us on the call today are Lei Zhang, Checha's founder and chief executive officer, Sandra Gee, Checha's chief financial officer, and also Ting Lin, Checha's chief strategy officer. After the repaired remarks are concluded, we're going to open up the call for your questions. But before we begin, I'd like to note that some statements in this teleconference are forward-looking within the meeting 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 perspective in nature. Actual results could differ materially from those we discussed today. So we encourage you to review the most recent Form F4 and subsequent filings for risk factors that could materially impact our results. As I mentioned, the earnings release is available at ir.chechegroup.com, and we encourage you to review the reconciliations of certain non-GAAP financial measures that are contained within. With those formalities now out of the way, it's my pleasure to turn this call over to Lei Zhang, Chief Executive Officer. Lei, please go ahead.

Thank you, Clark. Good morning, everyone. We are glad you have joined us. As China's largest auto insurance technology platform by digital auto insurance transaction premiums and an active driver in the digital transformation, we are continuing to gain market share through our cutting-edge embedded insurance capabilities. powerful ecosystem, and unique SaaS offerings, Churchill remains well positioned to capture significant opportunities resulting from accelerating digitalization of auto insurance market in China. As of March 31, 2024, Churchill facilitated a wide range of auto insurance transactions, providing quotes for about 49 million workers, placing over seven billion US dollars in writing premiums, and collaborating with over 100 insurance carriers between 2021 and the first quarter of 2024. The EV market in China has the highest penetration rate in the world, which has attracted several international automakers to begin manufacturing electric vehicles here. Driving further industry competition and potential, We have capitalized on this new market segment with our recently announced partnership with Volkswagen Digital Sales and Service to amplify the presence of Volkswagen's NEV insurance business. We also began collaborating with Beijing Houji, the insurance brokerage firm in Xiaomi Group this quarter. Xiaomi recently entered the NEV market with a big splash. We will leverage our technology platform and SaaS solutions to help them provide auto insurance services and products to consumers in multiple cities across China. We remain the industry's leading provider of embedded insurance solutions, and our technology roadmap continues to prioritize winning additional higher-profile EV manufacturers and growing our current market share of 11 partnerships. As a result of its efforts, our number of NEV-embedded policies is up to 124.5% year-over-year to 119,000, with the corresponding written premium growing 78.5% to $51 million over the same period. period last year. Our self-reinforcing cloud-based model is highly scalable and steadily collects valuable data in sites that are organically leveraged to drive increasing efficiencies of our products. In April of this year, NEV crossed over to account for more than 50% of new work sales in China. The range of offerings are now available on EV to Chinese consumers is more affordable, more intelligent, and makes driving more entertaining than the comparable IC offerings. Churchill continues to align its growth strategy with many of critical dynamics driving the automotive industry in China, and it sets the standard for affordable, functional, and sustainable vehicles. The first phase of the strategy is established collectively as embedded insurance technology and operating service provider so that NEV manufacturers can capture insurance sales and renewals as a part of their direct consumer relationship. We are later focused on securing relationships with the remaining large NEV players. We foresee that NEV insurance will boast the following features. The first is embedded and subscribed insurance models will become mainstream. Embedded and subscribed insurance will feature integrated products, smart accommodations, one-click renewal, and digital claims with NEV makers as the new shopping and service portal. Insurance will be data-driven and provide real-time pricing. The data-driven model will capitalize on data analytics and AI actuarial modeling capabilities, such as data connection, real-time pricing, and smart risk management to reshape auto insurance. Third, AEB makers will offer lifetime services to users and will be more involved in well-aided services such as financing, use of cars, and new car services than insurance. Phase 3 will leverage the enormous data stream and managing from AEVs to help manufacturers understand driver behavior and risk profile at a granular level. This data stream will grow over richer as auto transition towards L3 and level 4 autonomy, and the driver steps back as an active participant when cars are in a supervised automatic model. With the foundation of the body set of insurance relevant driver data, Churchill is positioned to embed AI deeper into the tech stick and roll out capabilities such as automated claims management, automated fraud prevention and individualized risk-adjusted pricing that generate more value for our partners and higher margins for Che Che. Our strategy is to develop and leverage the network effort effect of being the hub of the NEV industry to build sustainable competitive advantage and help our partners survive and thrive in the years to come. In the long term, we may consider global expansion opportunities in regions such as North America and Southeast Asia. We are pleased with our progress in 2024 and look forward to capitalizing on the industry's evolving opportunities. I will now turn the call over to our CFO, Sandra Ji. Thank you.