Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 | |
Document Information Line Items | |
Entity Registrant Name | Cheche Group Inc. |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | On February 20, 2024, the registration statement on Form F-1 (File No. 333-274806) (as amended, the “Registration Statement”) of Cheche Group Inc. (the “Registrant”) was declared effective by the U.S. Securities and Exchange Commission (the “SEC”). The Registrant is filing this post-effective amendment No. 1 to the Registration Statement to include its financial statements as of December 31, 2023 and for the year ended December 31, 2023 and to update certain other information contained in the Registration Statement.No additional securities are being registered by this post-effective amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement. |
Entity Central Index Key | 0001965473 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | ¥ 243,392 | ¥ 114,945 | |
Restricted cash | 5,000 | ||
Short-term investments | 21,474 | 34,823 | |
Accounts receivable, net | 466,066 | 401,667 | |
Prepayments and other current assets | 49,321 | 44,412 | |
Total current assets | 780,253 | 600,847 | |
Non-current assets: | |||
Restricted cash | 5,000 | ||
Property, equipment and leasehold improvement, net | 1,667 | 2,171 | |
Intangible assets, net | 8,050 | 10,150 | |
Right-of-use assets | 10,249 | 14,723 | |
Goodwill | 84,609 | 84,609 | |
Other non-current assets | 4,149 | ||
Total non-current assets | 113,724 | 111,653 | |
TOTAL ASSETS | 893,977 | 712,500 | |
Current liabilities | |||
Accounts payable | 316,868 | 227,156 | |
Short-term borrowings | 20,000 | ||
Contract liabilities | 4,295 | 888 | |
Salary and welfare benefits payable | 73,609 | 63,303 | |
Tax payable | 950 | 3,078 | |
Accrued expenses and other current liabilities | 25,759 | 40,888 | |
Short-term lease liabilities | 3,951 | 7,676 | |
Warrant | 850 | 1,045 | |
Total current liabilities | 501,533 | 344,034 | |
Non-current liabilities | |||
Deferred tax liabilities | 2,013 | 2,538 | |
Long-term lease liabilities | 5,398 | 6,226 | |
Deferred revenue | 1,432 | 1,432 | |
Warrant | 5,419 | ||
Total non-current liabilities | 14,262 | 70,128 | |
TOTAL LIABILITIES | 515,795 | 414,162 | |
Commitments and contingencies (Note 19) | |||
TOTAL MEZZANINE EQUITY | 1,558,881 | ||
SHAREHOLDERS’ (DEFICIT)/EQUITY : | |||
Ordinary shares (US$ 0.00001 par value, 5,000,000,000 and 5,000,000,000 shares (4,000,000,000 Class A ordinary shares and 1,000,000,000 Class B ordinary shares) authorized as of December 31, 2022 and 2023, respectively; 31,780,394 and 75,440,709 shares (56,844,205 Class A ordinary shares and 18,596,504 Class B ordinary shares) issued and outstanding as of December 31, 2022 and 2023, respectively)* | [1] | 5 | 2 |
Treasury stock | [1] | (1,025) | (1,025) |
Additional paid-in capital | [1] | 2,491,873 | 25 |
Accumulated deficit | (2,113,821) | (1,259,479) | |
Accumulated other comprehensive (loss)/income | 1,150 | (66) | |
TOTAL SHAREHOLDERS’ (DEFICIT)/EQUITY: | 378,182 | (1,260,543) | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY | 893,977 | 712,500 | |
Convertible Redeemable Preferred Shares | |||
Non-current liabilities | |||
TOTAL MEZZANINE EQUITY | 1,558,881 | ||
Related Party | |||
Current liabilities | |||
Amounts due to related party | 55,251 | ||
Non-current liabilities | |||
Amounts due to related party | ¥ 59,932 | ||
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Ordinary shares par value (in Dollars per share) | [1] | $ 0.00001 | $ 0.00001 |
Ordinary shares, authorized | [1] | 5,000,000,000 | 5,000,000,000 |
Ordinary shares, shares issued | [1] | 75,440,709 | 31,780,394 |
Ordinary shares, shares outstanding | [1] | 75,440,709 | 31,780,394 |
Convertible Redeemable Preferred Shares | |||
Convertible redeemable preferred shares, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 | |
Convertible redeemable preferred shares, authorized | 35,190,468 | ||
Convertible redeemable preferred shares, shares issued | 35,190,468 | ||
Convertible redeemable preferred shares, shares outstanding | 35,190,468 | ||
Convertible redeemable preferred shares, aggregate liquidation value (in Dollars) | $ 251.6 | ||
Convertible redeemable preferred shares, aggregate redemption value (in Dollars) | $ 233.1 | ||
Class A Ordinary Shares | |||
Ordinary shares, authorized | [1] | 4,000,000,000 | 4,000,000,000 |
Ordinary shares, shares issued | [1] | 56,844,205 | 56,844,205 |
Ordinary shares, shares outstanding | [1] | 56,844,205 | 56,844,205 |
Class B Ordinary Shares | |||
Ordinary shares, authorized | [1] | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | [1] | 18,596,504 | 18,596,504 |
Ordinary shares, shares outstanding | [1] | 18,596,504 | 18,596,504 |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Net revenues | ¥ 3,301,418 | ¥ 2,679,059 | ¥ 1,735,404 | |
Cost of revenues | (3,161,193) | (2,536,746) | (1,654,592) | |
Gross profit | 140,225 | 142,313 | 80,812 | |
Operating expenses: | ||||
Selling and marketing expenses | (111,454) | (138,970) | (110,064) | |
General and administrative expenses | (139,385) | (69,350) | (79,672) | |
Research and development expenses | (57,167) | (49,946) | (46,785) | |
Total operating expenses | (308,006) | (258,266) | (236,521) | |
Operating loss | (167,781) | (115,953) | (155,709) | |
Other expenses: | ||||
Interest income | 5,398 | 1,890 | 278 | |
Interest expense | (1,446) | (3,303) | (6,522) | |
Foreign exchange gains/(losses) | (2,546) | 13,409 | 2,100 | |
Government grants | 12,371 | 20,314 | 24,275 | |
Changes in fair value of warrant | 1,702 | (196) | 153 | |
Changes in fair value of amounts due to related party | (7,524) | (6,451) | (11,242) | |
Others, net | (127) | (1,253) | (316) | |
Loss before income tax | (159,953) | (91,543) | (146,983) | |
Income tax credit | 363 | 521 | 522 | |
Net loss | (159,590) | (91,022) | (146,461) | |
Accretions to preferred shares redemption value | (762,169) | (188,271) | 101,467 | |
Net loss attributable to the Cheche Technology Inc.’ ordinary shareholders | (921,759) | (279,293) | (44,994) | |
Net loss | (159,590) | (91,022) | (146,461) | |
Other comprehensive (loss)/income | ||||
Foreign currency translation adjustments, net of nil tax | 1,621 | 8,207 | (10,278) | |
Fair value changes of amounts due to related party due to own credit risk | (405) | (476) | 1,590 | |
Total other comprehensive (loss)/income | 1,216 | 7,731 | (8,688) | |
Total comprehensive loss | (158,374) | (83,291) | (155,149) | |
Accretions to preferred shares redemption value | (762,169) | (188,271) | 101,467 | |
Comprehensive loss attributable to the Cheche Technology Inc.’s ordinary shareholders | ¥ (920,543) | ¥ (271,562) | ¥ (53,682) | |
Net loss attributable to the Cheche’s ordinary shareholders per share | ||||
Basic (in Yuan Renminbi per share) | ¥ (20.3) | ¥ (8.79) | ¥ (1.33) | |
Diluted (in Yuan Renminbi per share) | ¥ (20.3) | ¥ (8.79) | ¥ (1.33) | |
Weighted average number of ordinary shares* | ||||
Basic (in Shares) | [1] | 45,415,205 | 31,780,394 | 33,831,133 |
Diluted (in Shares) | [1] | 45,415,205 | 31,780,394 | 33,831,133 |
Share-based compensation expenses included in | ¥ (109,983) | ¥ (16,208) | ¥ (18,532) | |
Cost of revenues | (191) | (11) | (8) | |
Selling and marketing expenses | (30,688) | (9,124) | (10,692) | |
General and administrative expenses | (67,519) | (6,668) | (7,604) | |
Research and development expenses | ¥ (11,585) | ¥ (405) | ¥ (228) | |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' (Deficit)/Equity - CNY (¥) ¥ in Thousands | Ordinary shares | Treasury stock | Additional paid-in capital | Accumulated other comprehensive (loss)/income | Accumulated deficit | Total | |||
Balance at Dec. 31, 2020 | ¥ 2 | [1] | ¥ (1,025) | [1] | ¥ 123,498 | ¥ 891 | ¥ (927,937) | ¥ (804,571) | |
Balance (in Shares) at Dec. 31, 2020 | [1] | 36,209,505 | (2,885,826) | ||||||
Net loss | (146,461) | (146,461) | |||||||
Share-based compensation | 18,532 | 18,532 | |||||||
Ordinary share issuance | ¥ 653,247 | ||||||||
Ordinary share issuance (in Shares) | 13,546,219 | ||||||||
Preferred shares redemption value accretion | (20,913) | 122,380 | ¥ 101,467 | ||||||
Preferred shares redemption value accretion (in Shares) | [1] | ||||||||
Re-designation from ordinary shares to Pre-A convertible redeemable preferred shares | (117,198) | (48,270) | (165,468) | ||||||
Re-designation from ordinary shares to Pre-A convertible redeemable preferred shares (in Shares) | [1] | (4,429,111) | |||||||
Foreign currency translation adjustment | (10,278) | (10,278) | |||||||
Fair value changes of amounts due to related party due to own credit risk | 1,590 | 1,590 | |||||||
Balance at Dec. 31, 2021 | ¥ 2 | [1] | ¥ (1,025) | [1] | 3,919 | (7,797) | (1,000,288) | (1,005,189) | |
Balance (in Shares) at Dec. 31, 2021 | [1] | 31,780,394 | (2,885,826) | ||||||
Net loss | [1] | [1] | (91,022) | (91,022) | |||||
Share-based compensation | [1] | [1] | 16,208 | 16,208 | |||||
Share-based compensation (in Shares) | [1] | ||||||||
Preferred shares redemption value accretion | (20,102) | (168,169) | (188,271) | ||||||
Re-designation from ordinary shares to Pre-A convertible redeemable preferred shares | |||||||||
Foreign currency translation adjustment | 8,207 | 8,207 | |||||||
Fair value changes of amounts due to related party due to own credit risk | (476) | (476) | |||||||
Balance at Dec. 31, 2022 | ¥ 2 | [1] | ¥ (1,025) | [1] | 25 | (66) | (1,259,479) | (1,260,543) | |
Balance (in Shares) at Dec. 31, 2022 | [1] | 31,780,394 | (2,885,826) | ||||||
Net loss | [1] | [1] | (159,590) | (159,590) | |||||
Share-based compensation | [1] | [1] | 109,983 | 109,983 | |||||
Share-based compensation (in Shares) | [1] | 1,500 | |||||||
Ordinary share issuance | [1] | [1] | 18,930 | (18,930) | |||||
Ordinary share issuance (in Shares) | [1] | 1,317,874 | |||||||
Preferred shares redemption value accretion | (86,347) | (675,822) | (762,169) | ||||||
Conversion of Preferred Shares to Class A ordinary shares | ¥ 3 | [1] | [1] | 2,321,047 | 2,321,050 | ||||
Conversion of Preferred Shares to Class A ordinary shares (in Shares) | [1] | 35,190,468 | |||||||
PIPE financing – Prime Impact Cayman LLC (the “Sponsor”) | [1] | [1] | 8,609 | 8,609 | |||||
PIPE financing – Prime Impact Cayman LLC (the “Sponsor”) (in Shares) | [1] | 634,228 | |||||||
PIPE financing – World Dynamic Limited | [1] | [1] | 93,436 | 93,436 | |||||
PIPE financing – World Dynamic Limited (in Shares) | [1] | 1,300,000 | |||||||
PIPE financing – Goldrock Holdings Limited | [1] | [1] | 35,863 | 35,863 | |||||
PIPE financing – Goldrock Holdings Limited (in Shares) | [1] | 500,000 | |||||||
Capitalization of PIPE financing costs | [1] | [1] | (4,953) | (4,953) | |||||
Capitalization of PIPE financing costs (in Shares) | [1] | ||||||||
Reverse Recapitalization transaction | [1] | [1] | (4,720) | (4,720) | |||||
Reverse Recapitalization transaction (in Shares) | [1] | 4,716,245 | |||||||
Re-designation from ordinary shares to Pre-A convertible redeemable preferred shares | |||||||||
Foreign currency translation adjustment | 1,621 | 1,621 | |||||||
Fair value changes of amounts due to related party due to own credit risk | (405) | (405) | |||||||
Balance at Dec. 31, 2023 | ¥ 5 | [1] | ¥ (1,025) | [1] | ¥ 2,491,873 | ¥ 1,150 | ¥ (2,113,821) | ¥ 378,182 | |
Balance (in Shares) at Dec. 31, 2023 | [1] | 75,440,709 | (2,885,826) | ||||||
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net Loss | ¥ (159,590) | ¥ (91,022) | ¥ (146,461) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation of property, equipment and leasehold improvement | 1,049 | 1,162 | 1,665 |
Amortization of right-of-use asset | 8,410 | 8,150 | 10,981 |
Amortization of intangible assets | 2,100 | 2,100 | 2,202 |
Changes in fair value of warrant | (1,702) | 196 | (153) |
Changes in fair value of amounts due to related party | 7,524 | 6,451 | 11,242 |
Share-based compensation expense | 109,983 | 16,208 | 18,532 |
Provision of allowance for current expected credit losses | 1,203 | 23 | 484 |
Foreign exchange (gains)/losses | 2,546 | (13,409) | (2,100) |
Loss on disposal of property, equipment and leasehold improvement | 46 | 7 | 16 |
Deferred income tax | (525) | (525) | (525) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (65,602) | (115,954) | (164,816) |
Prepayments and other current assets | (7,028) | (8,725) | (5,960) |
Accounts payable | 89,712 | 46,857 | 96,386 |
Contract liabilities | 3,407 | (7,818) | 5,423 |
Salary and welfare benefits payable | 10,306 | 10,951 | 11,444 |
Tax payable | (2,128) | (1,330) | (140) |
Accrued expenses and other current liabilities | (17,680) | (4,251) | (16,085) |
Lease liabilities | (8,981) | (8,232) | (10,554) |
Deferred revenue | 300 | 825 | |
Net cash used in operating activities | (26,950) | (158,861) | (187,594) |
Cash flows from investing activities: | |||
Purchase of property, equipment and leasehold improvement | (549) | (1,240) | (1,625) |
Proceeds from disposal of property, equipment and intangible assets | 22 | 52 | |
Placement of short-term investments | (42,722) | (182,474) | (63,757) |
Cash received from maturities of short-term investments | 56,071 | 211,408 | |
Net cash (used in)/generated from investing activities | 12,822 | 27,694 | (65,330) |
Cash flows from financing activities: | |||
Cash received from short-term borrowings from bank (Note 9(1)) | 20,000 | 10,000 | 10,000 |
Cash repayments of short-term borrowings to bank (Note 9(1)) | (20,000) | (20,000) | |
Cash repayments of short-term borrowings to a third party (Note 9(2)) | (20,000) | ||
Cash received from long-term borrowings from a third party (Note 13) | 19,127 | ||
Cash repayments of long-term borrowings to a third party (Note 13) | (11,840) | (7,287) | |
Cash repayments of amounts due to a related party (Note 20(a)(i)) | (15,000) | ||
Cash repayments of amounts due to a related party (Note 20(a)(ii)) | (12,610) | (6,328) | |
Cash payment for PIPE financing cost | (4,953) | ||
Cash receipt of the debt proceeds (Note 12(i)) | 175,979 | ||
Cash payment of the debt proceeds (Note 12(i)) | (206,064) | ||
Cash payment for redemption of Series C convertible redeemable preferred shares | (137,202) | ||
Net cash generated from/(used in) financing activities | 140,345 | (159,042) | 583,674 |
Effect of foreign exchange rate changes on cash and cash equivalents | 2,230 | 42,770 | (1,911) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 128,447 | (247,439) | 328,839 |
Cash and cash equivalents and restricted cash at beginning of the year | 119,945 | 367,384 | 38,545 |
Cash and cash equivalents and restricted cash at end of the year | 248,392 | 119,945 | 367,384 |
Reconciliation to amounts on consolidated balance sheet: | |||
Restricted cash at end of the year | 5,000 | 5,000 | 5,000 |
Cash and cash equivalents at end of the year | 243,392 | 114,945 | 362,384 |
Supplemental disclosures of cash flow information: | |||
Cash payments of interest expense | (898) | (2,581) | (10,537) |
Cash paid for income tax | (162) | (4) | (3) |
Supplemental schedule of non-cash investing and financing activities: | |||
Accretions to preferred shares redemption value | 762,169 | 188,271 | (101,467) |
Conversion of Preferred Shares into Class A ordinary shares | 2,321,050 | ||
Right-of-use assets obtained in exchange for obligations | 5,602 | 8,787 | 16,305 |
Re-designation from ordinary shares to Pre-A convertible redeemable preferred shares | 165,468 | ||
Cash held by Prime Impact and cash related to Prime Impact trust account | 360,745 | ||
Less redemptions | (331,574) | ||
Cash related to trust account, net of redemptions | 29,171 | ||
Cash consideration for the subscription of shares by the Sponsor | 14,787 | ||
Cash available for payment of costs | 43,958 | ||
Less cash paid associated with transaction costs allocated to Reverse Recapitalization | (33,031) | ||
Less cash paid on behalf of the Company for professional expenses | (2,318) | ||
Proceeds from PIPE financing – Prime Impact Cayman LLC | 8,609 | ||
Proceeds from PIPE financing – World Dynamic Limited | 93,436 | ||
Proceeds from PIPE financing – Goldrock Holdings Limited | 35,863 | ||
Total contributions from PIPE financing | 137,908 | ||
Less cash payment associated with transaction costs allocated to PIPE | (4,953) | ||
Net contributions from Reverse Recapitalization and PIPE financing | 132,955 | ||
Prime Impact Cayman LLC | |||
Cash flows from financing activities: | |||
Proceeds from PIPE financing | 8,609 | ||
World Dynamic Limited | |||
Cash flows from financing activities: | |||
Proceeds from PIPE financing | 93,436 | ||
Goldrock Holdings Limited | |||
Cash flows from financing activities: | |||
Proceeds from PIPE financing | 35,863 | ||
Series C convertible redeemable preferred shares | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Series convertible redeemable preferred shares, net of issuance cost | 97,850 | ||
Series D1 convertible redeemable preferred shares | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Series convertible redeemable preferred shares, net of issuance cost | 19,400 | ||
Series D2 convertible redeemable preferred shares | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Series convertible redeemable preferred shares, net of issuance cost | 33,034 | ||
Series D3 convertible redeemable preferred shares | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Series convertible redeemable preferred shares, net of issuance cost | ¥ 502,963 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities Cheche Group Inc. (the “Company” or “Cheche Group”) was incorporated in the Cayman Islands in January 2023 as an exempted company with limited liability. The Company is a holding company and conducts its business mainly through its subsidiaries, variable interest entity (“VIE”) and subsidiaries of VIE (collectively referred to as the “Group”). Cheche Technology Inc. (“CCT”) is a wholly owned subsidiary of the Company. Cheche Technology (HK) Limited (“Cheche HK”) is a wholly owned subsidiary of CCT. Baodafang Technology Co., Ltd. (“Baodafang”) is a wholly owned subsidiary of Cheche HK. Cheche Technology (Ningbo) Co., Ltd. (“Cheche Ningbo”) is wholly foreign-owned enterprise (the “WFOE”). The Group conducted its business in the People’s Republic of China (the “PRC” or “China”) through a series of contractual agreements entered into by the WFOE with the VIE based in China. The Group is primarily engaged in the operation of providing insurance transaction services, Software-as-a-Service (“SaaS”) services and other services in China. The following sets forth the Company’s consolidated subsidiaries, VIE and subsidiaries of VIE are as follows: Subsidiaries Place and Percentage of Principal activities Cheche Technology Inc. (“CCT”) Cayman Islands, 100% Investment holding Cheche Technology (HK) Limited (“Cheche HK”) Hong Kong, China, 100% Investment holding Cheche Technology (Ningbo) Co., Ltd. (“Cheche Ningbo” or “wholly foreign-owned enterprise” or “WFOE” or “primary beneficiary of the VIE”) Ningbo, China, 100% Technical support and consulting services Baodafang Technology Co., Ltd. (“Baodafang”) Beijing, China, 100% Technology service and SaaS services VIE Place and Percentage of Principal activities Beijing Che Yu Che Technology Co., Ltd. Beijing, China, 100%* Technology service Subsidiaries of VIE Place and Percentage of Principal activities Cheche Insurance Sales & Service Co., Ltd. (“Cheche Insurance”) Guangzhou, China, 100%* Insurance brokerage Huicai Insurance Brokerage Co., Ltd. Beijing, China, 100%* Dormant Cheche Zhixing (Ningbo) Auto Service Co., Ltd. Ningbo, China, 100%* Dormant * The WFOE has 100% beneficial interests in the consolidated VIE (including its subsidiaries). On September 14, 2023 (the “Closing Date”), the Company completed the business combination (the “Business Combination”) with Prime Impact Acquisition I (“Prime Impact”). Cheche Group began trading on the Nasdaq Stock Exchange on September 18, 2023. On the Closing Date, the Company consummated the Business Combination with Prime Impact, pursuant to the Business Combination Agreement dated January 29, 2023, by and among Prime Impact, the Company, Cheche Merger Sub Inc. (“Merger Sub”), and CCT. Pursuant to the Business Combination Agreement, the Business Combination was effected in two steps. On September 14, 2023, (1) Prime Impact merged with and into the Company (the “Initial Merger”), with the Company surviving the Initial Merger as a publicly traded entity; and (2) immediately following the Initial Merger, Merger Sub merged with and into CCT (the “Acquisition Merger” and, together with the Initial Merger, the “Mergers,” and together with all other transactions contemplated by the Business Combination Agreement, the “Business Combination”), with CCT surviving the Acquisition Merger as a wholly owned subsidiary of the Company. The Business Combination was accounted for as a reverse recapitalization (the “Reverse Recapitalization”) in accordance with U.S. GAAP. As a result of the Business Combination, CCT was deemed the accounting acquirer. This determination is primarily based on the shareholders of CCT comprising the majority of the voting power of the Company and having the ability to nominate the members of the Company’s Board, CCT’s operations prior to the acquisition comprising the only ongoing operations, and CCT’s senior management comprising a majority of the Group’s senior management. Accordingly, for accounting purposes, the financial statements of the post-combination company represent a continuation of the financial statements of CCT. Prime Impact was treated as the “acquired” company for accounting purposes. As Prime Impact does not meet the definition of a “business” for accounting purposes, the Reverse Recapitalization was treated as the equivalent of CCT issuing shares for the net assets of Prime Impact, accompanied by a recapitalization. The net assets of Prime Impact were stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated financial statements reflect (i) the historical operating results of CCT prior to the Reverse Recapitalization; (ii) the combined results of the Company and CCT following the closing of the Reverse Recapitalization; (iii) the assets and liabilities of CCT at their historical cost; and (iv) the Company’s equity structure for all periods presented. Transaction costs related to the Reverse Recapitalization paid to Prime Impact as part of the Business Combination Agreement were charged to equity as a reduction of the net proceeds received in exchange for the shares issued to the shareholders of Prime Impact. In accordance with guidance applicable to these circumstances, the equity structure has been retroactively adjusted in all comparative periods up to the Closing Date, to reflect the number of shares of the Company’s ordinary shares issued to CCT’s shareholders in connection with the Reverse Recapitalization transaction. As such, the ordinary shares and corresponding capital amounts and earnings per share related to CCT convertible redeemable preferred shares and ordinary shares prior to the Reverse Recapitalization have been retroactively restated as shares reflecting the exchange ratio established pursuant to the Business Combination Agreement. In conjunction with the Reverse Recapitalization, the Company’s ordinary shares underwent a 13.6145-for-1 conversion. Note that the consolidated financial statements give retroactive effect as though the conversion of the Company’s ordinary shares occurred for all periods presented, without any change in the par value per share. Contractual arrangements with VIE PRC laws and regulations place certain restrictions on foreign investment in value-added telecommunication service businesses. To comply with PRC laws and regulations, the Group operates its businesses in the PRC through the VIE and VIE subsidiaries. Most of the Group’s revenues, cost of revenues, expenses and net loss in China were generated directly or indirectly through the VIE and VIE’s subsidiaries. The Company relies on a series of contractual arrangements among its wholly-owned PRC subsidiary Cheche Ningbo, the VIE and their shareholders to conduct the business operations of the VIE and VIE subsidiaries. Below is a summary of the currently effective contractual arrangements by and among the Company’s wholly-owned subsidiary Cheche Ningbo, Beijing Cheche and its shareholders (also Nominee Shareholders). i) Equity Interest Pledge Agreement Pursuant to the Equity Interest Pledge Agreement entered into amongst WFOE, the VIE and Nominee Shareholders of the VIE, the Nominee Shareholders of the VIE pledged all of their equity interests in the VIE to the WFOE to ensure the Nominee Shareholders fully perform their obligations under the Exclusive Option Agreement, the Exclusive Business Cooperation Agreement and the Power of Attorney. The WFOE shall have the right to collect dividends generated by the pledged equity interests during the term of the pledge. If the Nominee Shareholders breach their respective contractual obligations under the Equity Interest Pledge Agreement, the WFOE, as pledgee, will be entitled to rights, including but not limited to being paid based on the monetary valuation that such equity interest is converted into or from the proceeds from the auction or sale of the equity interest. The Nominee Shareholders of the VIE are prohibited from transferring their pledged equity interests, placing or permitting any encumbrance that would prejudice the WFOE’s interests without the WFOE’s prior written consent. The pledge rights were effective upon registration of the pledges with the relevant Administration for Market Regulation (the “SAMR”) (formerly known as State Administration for Industry and Commerce), and the Equity Interest Pledge Agreement will remain effective until all the obligations have been satisfied in full. The WFOE completed the registration of the pledge of equity interests in the VIE with the relevant office of the SAMR in accordance with the PRC Civil Code. ii) Exclusive Option Agreement Pursuant to the Exclusive Option Agreement entered into amongst the CCT, WFOE, VIE and the Nominee Shareholders, the Nominee Shareholders irrevocably granted the WFOE or its designated party, an exclusive option to purchase all or part of the equity interests held by the Nominee Shareholders in the VIE at its sole discretion, to the extent permitted under the PRC laws for the cost of the initial contributions to the registered capital or the minimum amount of consideration permitted by applicable PRC law. The WFOE has an option to purchase from VIE at WFOE’s sole discretion, any or all of the assets and business of VIE, to the extent permitted under PRC law, and at the lowest purchase price permitted by PRC law. The Nominee Shareholders should remit to the WFOE any gain that is paid by WFOE or its designated person(s) in connection with the purchased equity interest or the purchased business asset. The WFOE or its designated person(s) have sole discretion to decide when to exercise the option, whether in part or in full. Any and all dividends and other capital distributions made by the VIE to its Nominee Shareholders should be repaid to the WFOE in full amount. CCT would provide unlimited financial support to the VIE if, in the normal operation of business, the VIE should become in need of any form of reasonable financial support. If the VIE were to incur any loss and as a result cannot repay any loans from CCT, CCT should unconditionally forgive any such loans to the VIE given that the VIE provides sufficient proof for its loss and incapacity to repay. This Exclusive Option Agreement remains effective until all equity interests held by Nominee Shareholders in the VIE have been transferred or assigned to the WFOE and/or any other person designated by the WFOE in accordance with this Exclusive Option Agreement. iii) Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation Agreements entered into amongst WFOE and VIE, the WFOE is engaged by the VIE to exclusively provide technical and consulting services including but not limited to the licensing of technology and software, design, development, maintenance and updating of technologies, business and management consultation, and marketing and promotional services. The WFOE may appoint or designate its affiliates or other qualified parties to provide the services covered by the Exclusive Business Cooperation Agreement. In return, the VIE agrees to pay a service fee equal to 100% of the consolidated net profits of the VIE after the VIE turns cumulative profitable and after certain expenses. The WFOE has sole discretion in determining the service fee charged to the VIE under this agreement. Without the WFOE’s prior written consent, the VIE shall not, directly and indirectly, obtain the same or similar services as provided under this agreement from any third party. The WFOE can terminate the Exclusive Business Cooperation Agreement at its sole discretion in the event that the VIE breaches the Exclusive Business Cooperation Agreement and fails to take remedial measures within ten days of written notice by the WFOE; however, the VIE cannot terminate the Exclusive Business Cooperation Agreement unless otherwise required by the applicable laws. The agreement will be in effect for an unlimited term, until the term of business of one party expires and extension is denied by the relevant approval authorities. iv) Power of Attorney Pursuant to the Power of Attorney agreement entered into amongst WFOE, VIE and the Nominee Shareholders, Nominee Shareholders irrevocably appoint WFOE as their attorney-in-fact to exercise on each shareholder’s behalf any and all rights that each shareholder has in respect of its equity interests in the VIE, including but not limited to executing the voting rights and the right to appoint directors and executive officers of VIE. The agreements will remain effective and irrevocable for as long as the relevant Nominee Shareholder holds any equity interests in VIE. v) Spousal Consent Letter Each spouse of the married Nominee Shareholders of the VIE entered into a Spousal Consent Letter, which unconditionally and irrevocably agreed that the equity interests in the VIE held by and registered in the name of their spouse will be disposed of pursuant to the Equity Interest Pledge Agreement and the Power of Attorney. Each spouse agreed not to assert any rights over the equity interests in the VIE held by their spouse. In addition, in the event that the spouses obtain any equity interests in the VIE held by their spouse for any reason, they agreed to be bound by the contractual arrangements. The Equity Interest Pledge Agreement, Exclusive Option Agreement, Exclusive Business Cooperation Agreement, Power of Attorney and Spousal Consent Letter to Beijing Cheche were amended to reflect the changes of shareholders’ holding in the VIE entity in their respective dates. No other material terms or conditions of these agreements were changed or altered. There was no impact to the Group’s effective control over Beijing Cheche and the Group continues to consolidate Beijing Cheche. Risks in relation to the VIE structure The Group’s business is mainly conducted through the VIE and subsidiaries of VIE, of which the Company is the ultimate primary beneficiary. The Company has concluded that (i) the ownership structure of the VIE is not in violation of any applicable PRC laws or regulations currently in effect and (ii) each of the VIE contractual agreements is valid, binding, and enforceable in accordance with their terms and applicable PRC laws or regulations currently in effect. However, uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current VIE contractual agreements and the legal structure to be in violation of any existing or future PRC laws or regulations. On March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which became effective on January 1, 2020, together with their implementation rules and ancillary regulations. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment,” which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. It is unclear whether the Group’s corporate structure will be seen as violating the foreign investment rules as the Group is currently leveraging the contractual arrangements to operate certain business in which foreign investors are prohibited from or restricted to investing. If variable interest entities fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with the VIE and the Group’s ability to conduct business through the VIE could be severely limited. In addition, if the Group’s corporate structure and the contractual arrangements with the VIE through which the Group conducts its business in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC regulatory authorities could: ● revoke the business licenses and/or operating licenses of the Group’s PRC entities; ● impose fines; ● confiscate any income that they deem to be obtained through illegal operations, or impose other requirements with which the Group may not be able to comply; ● discontinue or place restrictions or onerous conditions on the Group’s operations; ● place restrictions on the right to collect revenues; ● shut down the Group’s servers or block the Group’s websites or mobile apps; ● the Group to restructure ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect the ability to consolidate, derive economic interests from the VIE and their subsidiaries; ● restrict or prohibit the use of the proceeds from financing activities to finance the business and operations of the VIE and their subsidiaries; or ● take other regulatory or enforcement actions that could be harmful to the Group’s business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s businesses. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIE or the right to receive its economic benefits, the Group would no longer be able to consolidate the VIE. The management believes that the likelihood for the Group to lose such ability is remote based on current facts and circumstances. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, it may lead to changes in PRC laws, regulations, and policies or in the interpretation and application of existing laws, regulations and policies, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the shareholder of the VIE fail to perform their obligations under those arrangements. In addition, shareholder of the VIE is a PRC holding entity beneficially owned by the Founder, chairman of the board of directors and chief executive officer of the Company. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIE depend on shareholder enforcing the contracts. There is a risk that shareholder of VIE, who in some cases is also shareholder of the Company may have conflict of interests with the Company in the future or fails to perform their contractual obligations. Given the significance and importance of the VIE, there would be a significant negative impact to the Company if these contracts were not enforced. The Group’s operations depend on the VIE to honor their contractual agreements with the Group and the enforceability, and therefore the benefits, of the contractual agreements also depends on the authorization by the shareholder of the VIE to exercise voting rights on all matters requiring shareholder approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are enforceable against each party thereto in accordance with their terms and applicable PRC laws or regulations currently in effect and the possibility that it will no longer be able to be the primary beneficiary and consolidate the VIE as a result of the aforementioned risks and uncertainties is remote. In accordance with the contractual agreements, the Company could (1) exercise the shareholder’s rights of the VIE and has power to direct the activities that most significantly affects the economic performance of the VIE and subsidiaries of VIE, (2) absorb substantially all of the expected losses and receive substantially expected residual returns of the VIE and subsidiaries of VIE; and (3) has an exclusive call option to purchase all or part of the equity interests in and/or assets of each of VIE and subsidiaries of VIE when and to the extent permitted by PRC law. Accordingly, the Company is considered as the ultimate primary beneficiary of the VIE and has consolidated the VIE’s financial results of operations, assets, and liabilities in the Company’s consolidated financial statements. Therefore, the company considers that there are no assets in the VIE that can be used only to settle obligations of the VIE, except for the paid-in capital of the VIE amounting to approximately RMB65.3 million and RMB65.3 million as of December 31, 2022 and 2023, as well as certain non-distributable statutory reserves amounting to approximately nil nil As of the date of this report, 14.24% of the equity interests in the VIE held by Beijing Zhongjin Huicai Investment Management Co., Ltd., one of the Nominee Shareholders, were frozen by the People’s Court of Futian District, Shenzhen City, Guangdong Province for a civil dispute between Beijing Zhongjin Huicai Investment Management Co., Ltd. and certain other party. Under applicable PRC laws, (1) the frozen equity interests in the VIE cannot be sold, transferred, or disposed of in any manner from July 28, 2022 to July 27, 2025, unless such freezing was released by a competent court; and (2) if a competent court rules to auction off the frozen equity interests, the proceeds from the auctioning and sale of the frozen equity interests by competent court shall be firstly distributed to pledgee, i.e. the WFOE, thereafter the remaining proceeds (if any), shall be used to settle the claims of the creditor applying with court for enforcement. Therefore, uncertainties remain with respect to the enforcement of the option of the WFOE to purchase such frozen equity interests under the exclusive option agreement among the Company, WFOE, the VIE and shareholders of the VIE, dated June 18, 2021, which may be subject to the auction process by the competent court. However, as that such equity interests had been pledged to WFOE prior to the freezing, the Company does not believe the freezing of the above-mentioned equity interests in the VIE will cause any material impact to the operations of the Company. The following consolidated financial information of the VIE after the elimination of inter-company transactions between the VIE and its subsidiaries as of December 31, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 was included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2022 2023 RMB RMB ASSETS Current assets: Cash and cash equivalents 14,894 86,330 Restricted cash 5,000 - Short-term investment - 226 Accounts receivable, net 397,935 445,941 Prepayments and other current assets 38,784 41,695 Amounts due from intra-Group companies 26,336 4,575 Total current assets 482,949 578,767 Non-current assets: Restricted cash - 5,000 Property, equipment and leasehold improvement, net 1,456 1,221 Intangible assets, net 10,150 8,050 Right-of-use assets 6,955 7,067 Goodwill 84,609 84,609 Total non-current assets 103,170 105,947 TOTAL ASSETS 586,119 684,714 LIABILITIES Current liabilities: Accounts payable 216,318 283,547 Short-term borrowings - 10,000 Contract liabilities 41 626 Salary and welfare benefits payable 52,218 57,878 Tax payable 2,767 624 Amounts due to related party - 55,251 Accrued expenses and other current liabilities 11,545 11,504 Short-term lease liabilities 2,995 2,304 Amounts due to intra-Group companies 938 158,648 Total current liabilities 286,822 580,382 Non-current liabilities: Deferred tax liabilities 2,538 2,013 Long-term lease liabilities 3,731 4,550 Amounts due to related party 59,932 - Deferred revenue 1,432 1,432 Amounts due to intra-Group companies 385,838 244,471 Total non-current liabilities 453,471 252,466 TOTAL LIABILITIES (without recourse to the primary beneficiary) 740,293 832,848 For the years ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues - earned from external parties 1,726,333 2,533,902 3,083,306 - earned from intra-Group companies 21,069 27,909 6,682 Total revenues 1,747,402 2,561,811 3,089,988 Cost of revenues and operating expenses - arising from external parties transactions (1,828,619 ) (2,579,575 ) (3,186,349 ) - arising from intra-Group transactions (437 ) - (1,651 ) Total cost of revenues and operating expenses (1,829,056 ) (2,579,575 ) (3,188,000 ) Net loss (71,515 ) (23,589 ) (100,142 ) For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cash flows from operating activities: Net cash generated from transactions with intra-Group companies 24,000 17,200 35,000 Net cash (provided by)/generated from transactions with external parties (147,000 ) (86,816 ) 108,170 Net cash (used in)/generated from operating activities (123,000 ) (69,616 ) 143,170 Net cash used in transactions with external parties (895 ) (1,025 ) (686 ) Net cash used in investing activities (895 ) (1,025 ) (686 ) Net cash used in transactions with related parties (21,328 ) - - Net cash generated from/(used in) transactions with intra-Group companies 214,109 34,823 (63,485 ) Net cash used in transactions with third-parties (40,685 ) (10,000 ) (7,563 ) Net cash generated from/(used in) financing activities 152,096 24,823 (71,048 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash - 1,074 - Net increase/(decrease) in cash and cash equivalents 28,201 (44,744 ) 71,436 Liquidity The Group has incurred recurring operating losses since its inception, including net loss of RMB146.5 million, RMB91.0 million, and RMB159.6 million for the years ended December 31, 2021, 2022 and 2023, respectively. Net cash used in operating activities were RMB187.6 million, RMB158.9 million and RMB27.0 million for the years ended December 31, 2021, 2022 and 2023, respectively. Accumulated deficit was RMB1,259.5 million and RMB2,113.8 million as of December 31, 2022 and 2023, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and non-operational sources of financing from investors to fund its operations and business development. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenues while controlling operating expenses, as well as, generating operational cash flows and continuing to gain support from outside sources of financing. The Group has been continuously receiving financing support from outside investors through the issuance of preferred shares. Refer to Note 15 and Note 10 for details of the Group’s preferred shares financing activities and credit facility. In September 2023, the Company successfully completed the Business Combination and raised gross proceeds of US$19.2 million (RMB137.9 million) including US$1.2 million, US$13.0 million and US$5.0 million of PIPE financing from Prime Impact Cayman LLC, World Dynamic Limited and Goldrock Holdings Limited. Moreover, the Group can adjust the pace of its operation expansion and control the operating expenses of the Group. Based on the above considerations, the Group believes the cash and cash equivalents and the operating cash flows are sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the date of the issuance of the consolidated financial statements. The Group’s consolidated financial statements have been prepared based on the Company continuing as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies Abstract | |
Significant Accounting Policies | 2. Significant Accounting Policies a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its subsidiaries, VIE and subsidiaries of VIE, after elimination of all intercompany accounts and transactions. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company reclassified technical service income of RMB0.6 million and RMB2.1 million for 2021 and 2022, respectively from Others to SaaS income and renamed the revenue stream SaaS and technical service income for all the periods presented. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and subsidiaries of VIE for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, VIE and subsidiaries of VIE have been eliminated upon consolidation. c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, provision of current expected credit losses of receivables, fair value of amounts due to related party, ordinary shares and preferred shares and warrant, as well as the valuation and recognition of share-based compensation expenses. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$”). The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, and expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in foreign exchange gains in the consolidated statements of operations and comprehensive loss. e) Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable, other receivables (included in “prepayments and other current assets”), accounts payable, short-term borrowings, contract liabilities and other payables (included in “accrued expenses and other current liabilities”), of which the carrying values approximate their fair value. Lease liabilities are measured at amortized cost using discounted rates reflected time value of money. f) Cash, cash equivalents and restricted cash Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2022 and 2023, there were cash at bank denominated in US dollars amounting to approximately US$11.5 million (RMB80.1 million) and US$18.2 million (RMB129.3 million), respectively, and denominated in RMB amounting to approximately RMB34.8 million and RMB114.1 million, respectively. As of December 31, 2022 and 2023, the Group had approximately RMB113.9 million and RMB124.4 million, cash and cash equivalents held by its PRC subsidiaries and VIE, representing 99.1% and 51.1% of total cash and cash equivalents of the Group, respectively. As of December 31, 2022 and 2023, the Group had RMB5.0 million and RMB5.0 million restricted cash, respectively. Restricted cash primarily represents cash deposits in a regulatory escrow account related to insurance transaction services. Restricted cash is classified into current and non-current assets based on the maturities of term deposits. The Group had no other lien arrangements for the years ended December 31, 2021, 2022 and 2023. g) Short-term investments Short-term investments represent bank deposits with original maturities of more than three months but within one year. As of December 31, 2022 and 2023, the Group had approximately RMB34.8 million and RMB21.5 million bank deposits, respectively. Interest earned is recorded as interest income, amounting to RMB0.1 million, RMB0.08 million and RMB0.16 million, in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2021, 2022 and 2023, respectively. h) Expected credit losses of receivables The Group’s accounts receivable and other receivables (included in “prepayments and other current assets”) are within the scope of Accounting Standards Codification (“ASC”) 326. To estimate current expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, any changes in customer collection trends, the credit worthiness of customers, the contractual and customary payment terms that generally range from 30 to 180 days, current economic conditions, and expectation of future economic conditions (external data and macroeconomic factors). Accounts receivable balances are written off (i.e., charged-off against the allowance) when they are determined to be uncollectible after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable is recorded at the invoiced amount and do not bear interest. As of December 31, 2022 and 2023, the Group’s accounts receivable consists primarily of receivables from insurance transaction services customers. The Group recorded current expected credit loss expense of RMB0.5 million, RMB0.02 million and RMB1.2 million for the years ended December 31, 2021, 2022 and 2023, respectively. i) Property, equipment and leasehold improvement, net Property, equipment and leasehold improvement are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvement Shorter of the Furniture and office equipment 3-5 years Electronics equipment and others 3-6 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and leasehold improvement is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive loss. j) Intangible assets, net Intangible assets mainly consist of software, licenses, agency agreements and channel relationship. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Licenses, agency agreements and channel relationship acquired in a business combination were recognized initially at fair value at the date of acquisition. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Software 3-5 years Licenses 10 years Agency agreements 2 years Channel relationship 2 years Licenses comprise insurance brokerage licenses, which has an estimated useful life of 10 years (the “Amortization Period”), which represent the time periods that the Group expects these assets will generate economic benefits to the Group’s business. The licenses have a term of validity of 5 years or longer, and are subject to certain administrative renewal at the relevant government authorities upon expiry. The renewal criteria for licenses are the same as the criteria when applying for these licenses. The Group assesses that it can continue to meet these criteria throughout the Amortization Period and these licenses will be renewed upon expiry. Agency agreements comprise contractual relationship with referral partners, which have an estimated useful life of 2 years. Channel relationship comprises customer relationship with insurance carriers, which have an estimated useful life of 2 years. k) Impairment of long-lived assets Long-lived assets or asset group, including intangible assets with finite lives, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for any of the year presented. l) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2022 and 2023 were related to its acquisition of Cheche Insurance (previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”) in October 2017 (Note 8). In accordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date (December 31 for the Group) and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business environment, legal factors, financial performances, competition, or events affecting the reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of reporting unit using a discounted cash flow methodology also requires significant judgements, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. Management has determined that the Group represents the lowest level within the entity at which goodwill is monitored for internal management purposes. Starting from January 1, 2020, the Company adopted ASU 2017-04, which simplifies the accounting for goodwill impairment by eliminating Step 2 from the goodwill impairment test, and in accordance with the FASB, pursuant to which the Group has the option to choose whether it will apply a qualitative assessment first and then a quantitative assessment, if necessary, or to apply a quantitative assessment directly. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Based on the impairment assessment, management determined that no impairment loss was recorded for the years ended December 31, 2021, 2022 and 2023. At December 31, 2022 and 2023, goodwill was RMB84.6 million and RMB84.6 million, respectively. m) Warrant The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is assessed at the end of each reporting period. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the warrants instruments to fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations and comprehensive loss. n) Revenue recognition Revenue is the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the common course of the Group’s activities and is recorded net of value-added tax (“VAT”). The services to be accounted for mainly include insurance transaction services, SaaS services and other services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract(s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Insurance Transaction Services Income The main source of revenue is insurance transaction services fee directly from (i) insurance carriers who underwrite insurance policies and (ii) insurance intermediaries who directly transact with insurance carriers, both determined based on a percentage of premium paid by the insured. The service fee rate paid by the insurance carriers or insurance intermediaries, shall be based on the terms specified in the service contract with the insurance carriers or with the insurance intermediaries for each insurance policy sold through the Group’s online platform and mobile applications in the PRC. The Group determines that the insurance carrier or insurance intermediary are its customer in these agreements. Insurance transaction services revenue for the commission earned is recognized at a point in time when the Company has fulfilled its performance obligation. This occurs when the signed insurance policy is in place and the premium is collected by the insurance carriers from the insured. SaaS and technical services income The Group provides SaaS services to selected insurance carriers or insurance intermediaries. This cloud-based services allow insurance carriers or insurance intermediaries to use the Group’s self-developed SaaS management system without taking possession of its software. The Group has determined that the insurance carriers or insurance intermediaries as customers and initially records services fee as contract liabilities upon receipt and then recognizes the revenue on a straight-line basis over the service period, which is usually one year. The Group also provides technical services to third-party companies. The Group charges third-party companies service fee for developing software for them. Technical services revenue is recognized based on cost-to-cost input method of measuring progress upon the completion of each service. Other Services The Group provides customer service to third-party companies. The Group satisfies its performance obligation through delivering consulting service to the third-party companies’ customers and receives service fee from the third-party companies. Customer service revenue is recognized on a straight-line basis over the period of the contract when the service is provided, which is usually within 1 year. Contract Balances and Accounts Receivable Contract liabilities primarily consist of customer advances which relates to the payments received for SaaS and technical services in advance of performance under the contract. The increase in contract liabilities over the year presented was a result of the increase in consideration received from the Group’s customers, which was in line with the growth of revenues in SaaS and technical services. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. During the years ended December 31, 2021, 2022 and 2023, the Group recognized revenue amounted to RMB3.3 million, RMB8.7 million and RMB0.9 million, respectively that was included in the corresponding opening contract liabilities balance of RMB3.3 million, RMB8.7 million and RMB0.9 million at December 31, 2020, 2021 and 2022, respectively. During the years ended December 31, 2021, 2022 and 2023, the Group did not have any arrangement where the performance obligations has already been satisfied in the past year but recognized the corresponding revenue in the current year. Accounts receivable mainly represent amounts due from insurance transaction services customers, when the Group has satisfied its performance obligations and has the unconditional right to payment. They are carried at net realizable value. Please see Note 4 for additional information. Practical Expedients The Group has elected to use the following practical expedients as allowed under ASC Topic 606: (i) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. The Group has determined that its contracts generally do not include a significant financing component. (ii) Costs to obtain a contract with a customer were expensed as incurred when the amortization period would have been one year or less. o) Cost of revenue Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue, which consists primarily of i) cost of referral partners, ii) service fee paid to third-party payment platforms, iii) customer service costs, iv) amortization and depreciation expenses, v) salary and welfare benefits, vi) cloud service fees, and vii) tax and surcharges and others. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. p) Research and development expenses Research and development expenses mainly consist of salary and welfare benefits and subcontracted development expenses incurred for the development and enhancement to the Company’s online platform including SaaS platform, and mobile applications. q) Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotional expenses, salary and welfare benefits and share-based compensation expenses to the Group’s sales and marketing personnel. Advertising and promotional expenses consist primarily of costs for the promotion of corporate image, online platform and mobile applications. The Group expenses all advertising and promotional expenses as incurred and classifies them under selling and marketing expenses. r) General and administrative expenses General and administrative expenses consist primarily of share-based compensation expenses, salary and welfare benefits, professional service fees, amortization expenses and related expenses for employees involved in general corporate functions, including finance, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses. s) Government grants Government grants mainly represent subsidies and tax refunds for operating a business in certain jurisdictions and fulfilment of specified tax payment obligations. Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. Deferred government grants included RMB1.1 million, RMB1.4 million and RMB1.4 million for the years ended December 31, 2021, 2022 and 2023 being the unamortized portion of a grant of RMB0.8 million, RMB0.3 million and nil t) Leases The Group determines if an arrangement is a lease and determines the classification of the lease, as either operating or finance, at commencement. The Group has operating leases for office buildings and has no finance leases as of December 31, 2022 and 2023. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at commencement date. As the Group’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at the commencement date, to determine the present value of lease payments. The incremental borrowing rate approximates the rate the Group would pay to borrow in the currency of the lease payments for the weighted-average life of the lease. The operating lease ROU assets also include any lease payments made prior to lease commencement and exclude lease incentives and initial direct costs incurred if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements contain both lease and non-lease components, which are accounted for separately based on their relative standalone price. The Company elect to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease right-of-use (“ROU”) assets or operating lease liabilities. u) Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares and restricted shares. For share options for the purchase of ordinary shares granted to employee and non-employee determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated statements of operations and comprehensive loss based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected volatility of the fair value of ordinary shares, actual and projected employee share option exercise behavior, risk-free interest rate and expected dividends. The fair value of the ordinary shares is assessed using the income approach, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. v) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries, VIE and subsidiaries of VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total balances of employee welfare benefits, including the accruals for estimated underpaid amounts, were approximately RMB48.6 million and RMB56.2 million as of December 31, 2022 and 2023. w) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of operations and comprehensive loss in the period the change in tax rates or tax laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statements of operations and comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2022 and 2023, respectively. x) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. y) Net loss per share Net loss per share is computed in accordance with ASC 260, Earnings per Share. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s preferred shar |
Reverse Recapitalization
Reverse Recapitalization | 12 Months Ended |
Dec. 31, 2023 | |
Reverse Capitalization Abstract | |
Reverse Recapitalization | 3. Reverse Recapitalization On the Closing Date, (i) Prime Impact converted (a) its issued and outstanding 375,193 Class A and 4,341,052 Class B ordinary shares into 4,716,245 Class A ordinary shares of the Company, and (b) its 13,663,325 outstanding warrants with each warrant to purchase a Prime Impact Class A ordinary share converted into a warrant to purchase one the Company’s Class A ordinary share, (ii) CCT converted 455,818,627 preferred shares, issued and outstanding immediately prior to the Acquisition Merger, into 479,099,566 ordinary shares of CCT based on CCT’s then effective memorandum and articles of association, and (iii) CCT converted (a) its 676,533,464 issued and outstanding ordinary shares (including those converted from the preferred shares of CCT, but excluding 253,181,563 CCT ordinary shares held by Mr. Lei Zhang) into 49,692,232 Class A ordinary shares of the Company based on applicable Per Share Merger Consideration (as defined in the Business Combination Agreement), (b) 253,181,563 issued and outstanding ordinary shares of CCT held by Mr. Lei Zhang were converted into 18,596,504 Class B ordinary shares of the Company based on applicable Per Share Merger Consideration, (c) 865,227 outstanding warrants with each warrant to purchase a CCT’s preferred share converted into 63,552 warrants with each warrant to purchase one the Company’s Class A ordinary share based on applicable Per Share Merger Consideration, (d) the outstanding options of CCT converted into options of the Company based on applicable Per Share Merger Consideration, and (e) the outstanding restricted shares of CCT converted into restricted shares of CCG based on applicable Per Share Merger Consideration. On September 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global institutional investors for private investment in public equity (the “PIPE”) in connection with the Business Combination. Pursuant to such agreements, the Company issued 634,228; 1,300,000; and 500,000 Class A ordinary shares to Prime Impact Cayman LLC (the “Sponsor”); World Dynamic Limited; and Goldrock Holdings Limited for the consideration of US$10.00 per share, respectively. The consideration from the Sponsor was related to settlement of the Sponsor’s obligations with respect to the payment of certain Prime Impact transaction expenses in connection with the Business Combination. The Company incurred financing costs of RMB5.0 million related to the above PIPE financing transactions, which were directly associated with and incremental to these transactions. The number of ordinary shares issued immediately following the consummation of the Reverse Recapitalization were as follows: Number of CCT’s ordinary shares outstanding at December 31, 2022 432,673,255 CCT’s ordinary shares issued to the Preferred Shareholders (Note 15) 17,942,206 CCT’s ordinary shares outstanding prior to the Reverse Recapitalization 450,615,461 Conversion of CCT’s ordinary shares (1) 33,098,268 Conversion of CCT’s convertible redeemable preferred shares (1) 35,190,468 Conversion of Prime Impact’s Class A ordinary shares (2) 375,193 Conversion of Prime Impact’s Class B ordinary shares (2) 4,341,052 Ordinary shares attributable to conversion 73,004,981 Ordinary shares attributable to Prime Impact Cayman LLC (3) 634,228 Ordinary shares attributable to World Dynamic Limited (3) 1,300,000 Ordinary shares attributable to Goldrock Holdings Limited (3) 500,000 Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions 75,439,209 (1) On the Closing Date, CCT converted its (i) 450,615,461 issued and outstanding ordinary shares; and (ii) 479,099,566 convertible redeemable preferred shares, issued and outstanding immediately prior to the Reverse Recapitalization into 33,098,268 and 35,190,468 Class A ordinary shares of the Company, respectively, based on the conversion ratio of 13.6145:1. (2) On the Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 Class A ordinary shares; and (ii) and 4,341,052 Class B ordinary shares into 4,716,245 Class A ordinary shares of the Company. (3) On September 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global institutional investors in connection with the Business Combination. Pursuant to such agreements, the Company issued 634,228; 1,300,000; and 500,000 Class A ordinary shares to the Sponsor; World Dynamic Limited; and Goldrock Holdings Limited for the consideration of US$10.00 per share, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Accounts receivable, net | 4. Accounts receivable, net Accounts receivable, net is consisted of the following: December 31, December 31, RMB RMB Accounts receivable, gross: 402,694 468,296 Less: allowance for current expected credit losses (1,027 ) (2,230 ) Accounts receivable, net 401,667 466,066 The following table summarizes the movement of the Group’s allowance for current expected credit losses: December 31, December 31, RMB RMB Balance at the beginning of the year (1,004 ) (1,027 ) Additions (23 ) (1,203 ) Write-offs - - Balance at the end of the year (1,027 ) (2,230 ) |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Current Assets [Abstract] | |
Prepayments and other current assets | 5. Prepayments and other current assets The following is a summary of prepayments and other current assets: December 31, December 31, RMB RMB Deductible Value Added Tax (“VAT”) 34,215 39,914 Service fees (i) 4,057 4,504 Rental and other deposits 2,603 2,449 Staff advance 1,292 230 Rental expense for other leases with period less than one year 695 630 Others 1,550 1,594 Balance at the end of the year 44,412 49,321 (i) Service fees mainly consist of prepayment of cloud server hosting fees, directors and officers’ insurance fees and others. |
Property, Equipment and Leaseho
Property, Equipment and Leasehold Improvement, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, equipment and leasehold improvement, net [Abstract] | |
Property, equipment and leasehold improvement, net | 6. Property, equipment and leasehold improvement, net The following is a summary of property, equipment and leasehold improvement, net: December 31, December 31, RMB RMB Leasehold improvement 3,621 3,697 Furniture and office equipment 1,386 1,569 Electronic equipment and others 4,246 4,179 Total property, equipment and leasehold improvement 9,253 9,445 Less: accumulated depreciation (7,082 ) (7,778 ) Property, equipment and leasehold improvement, net 2,171 1,667 Depreciation expenses were RMB1.7 million, RMB1.2 million and RMB1.0 million for the years ended December 31, 2021, 2022 and 2023, respectively. No impairment charge was recognized for any of the years presented. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Intangible assets, net | 7. Intangible assets, net The following table summarizes the Group’s intangible assets, net: December 31, December 31, RMB RMB Gross carrying amount Software 916 916 Licenses 21,000 21,000 Agency agreements 18,000 18,000 Channel relationship 19,000 19,000 Total intangible assets 58,916 58,916 Less: accumulated amortization Software (916 ) (916 ) Licenses (10,850 ) (12,950 ) Agency agreements (18,000 ) (18,000 ) Channel relationship (19,000 ) (19,000 ) Total intangible assets, net 10,150 8,050 Amortization expense for the years ended December 31, 2021, 2022 and 2023 were RMB2.2 million, RMB2.1 million and RMB2.1 million respectively. The estimated amortization expenses for each of the following five years are as follows: December 31, RMB 2024 2,100 2025 2,100 2026 2,100 2027 1,750 2028 - Total 8,050 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Goodwill | 8. Goodwill On October 26, 2017, Beijing Cheche entered into a share purchase agreement with Fanhua Insurance Sales and Services Group Ltd. (“Fanhua Group”). Under this agreement, Beijing Cheche acquired the equity interests in Cheche Insurance (previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”, which was a subsidiary of Fanhua Group) and its property and casualty (“P&C”) insurance intermediary subsidiaries with a total consideration of approximately RMB225.4 million, including approximately RMB95.4 million cash consideration and RMB130.0 million in the form of a convertible loan. Beijing Cheche recognized approximately RMB84.6 million goodwill on acquisition of Cheche Insurance and its subsidiaries, which was determined by the excess of the cash consideration and fair value of the convertible loan over the fair value of Cheche Insurance and its subsidiaries, at the time of acquisition. The gross amount of goodwill and accumulated impairment losses as of December 31, 2022 and 2023 are as follows: December 31, December 31, RMB RMB Gross 84,609 84,609 Accumulated impairment loss - - Goodwill, net 84,609 84,609 The Group performed the annual impairment analysis as of the balance sheet date. No impairment loss was recognized in goodwill for the years ended December 31, 2021, 2022 and 2023. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 9. Leases The Group’s lease payments for office space leases include fixed rental payments and do not consist of any variable lease payments that depend on an index or a rate. As of December 31, 2022 and 2023, there was no leases that have not yet commenced. The following represents the aggregate right-of-use assets and related lease liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Operating lease right-of-use assets 14,723 10,249 Short-term operating lease liabilities (7,676 ) (3,951 ) Long-term operating lease liabilities (6,226 ) (5,398 ) Total operating leased liabilities (13,902 ) (9,349 ) The weighted average lease term and weighted average discount rate as of December 31, 2021, 2022 and 2023 were as follows: December 31, December 31, December 31, RMB RMB RMB Weighted average lease term: Operating leases 3.45 2.52 3.02 Weighted average discount rate: Operating leases 5.24 % 4.08 % 3.91 % The components of lease expenses for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Operating lease cost 11,984 9,013 8,880 Cost of other leases with period less than one year 1,317 1,949 1,194 Total 13,301 10,962 10,074 Supplemental cash flow information related to leases for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 11,512 5,065 8,984 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 16,305 8,787 5,602 Maturities of lease liabilities at December 31, 2023: December 31, RMB 2024 4,261 2025 2,867 2026 1,325 2027 1,432 Total remaining undiscounted lease payments 9,885 Less: interest (536 ) Total present value of operating lease liabilities 9,349 Less: short-term operating lease liabilities (3,951 ) Long-term operating lease liabilities 5,398 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Short-term borrowings | 10. Short-term borrowings The following table summarizes the Group’s outstanding short-term borrowings as of December 31, 2022 and 2023, respectively: December 31, December 31, RMB RMB Bank borrowings - 20,000 (1) Bank borrowings Principal Interest rate December 31, Maturity date amount per annum 2022 2023 Bank of Nanjing (i) May 22, 2021 2,620 5.22 % - - Bank of Nanjing (i) June 11, 2021 7,380 7.63 % - - Bank of Beijing (ii) May 27, 2022 5,000 4.55 % - - Bank of Beijing (ii) June 2, 2022 5,000 4.55 % - - Bank of Beijing (ii) June 29, 2023 10,000 3.70 % - - Bank of Beijing (iii) Feb 13,2024 3,000 3.65 % - 3,000 Bank of Beijing (iii) Apr 13, 2024 4,000 3.65 % - 4,000 Bank of Beijing (iii) June 13, 2024 3,000 3.65 % - 3,000 Bank of Beijing (iv) June 28, 2024 10000 3.55 % - 10,000 Total short-term borrowings - 20,000 (i) The Group was granted a RMB10.0 million credit facility that expired on April 22, 2021 to support its operations. The credit facility was guaranteed by Cheche Insurance and Mr. Lei Zhang (Note 22). There are no financial covenants for the credit facility. Under the credit facility, the Group drew down RMB2.6 million and RMB7.4 million on May 25, 2020 and June 12, 2020, respectively. The interest is payable on a monthly basis and the principal will be due upon maturity. These loans were eventually repaid on May 25, 2021 and June 15, 2021, respectively. Bank of Nanjing did not impose any penalty for these late repayments. (ii) The Group was granted a RMB10.0 million credit facility that expires on June 4, 2022 to support its operations. The credit facility was guaranteed by a third-party state-owned financial institution named Beijing Small and Medium Entity Financing Re-guarantee Co., Ltd. The Group paid guarantee fee and review fee for the guarantee service based on certain percentage of the related amount of loan and credit facility, respectively. There are no financial covenants for the credit facility. The interest is payable on a quarterly basis and the principal will be due upon maturity. Under the credit facility, the Group drew down RMB5.0 million and RMB5.0 million on June 11, 2020 and November 2, 2020, respectively. These two loans were fully repaid on May 27, 2021 and June 2, 2021. Afterwards, the Group drew down RMB5.0 million and RMB5.0 million on May 28, 2021 and June 3, 2021, respectively. These two loans were fully repaid on May 27, 2022 and June 2, 2022, respectively. Afterwards, the Group drew down RMB10.0 million on June 30, 2022, which was fully repaid on July 15, 2022. (iii) On June 23, 2022, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 22, 2024 to support its operations. Under this credit facility, the Group drew down RMB3.0 million, RMB4.0 million and RMB3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB4.0 million and RMB3.0 million were repaid on February 7, 2024 and April 15, 2024, respectively. There are no financial covenants for the credit facility. (iv) On June 14, 2023, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 13, 2025 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB4.0 million and RMB6.0 million on June 29, 2023. There are no financial covenants for the credit facility. On May 6, 2023, the Group entered into an RMB50.0 million credit facility with the China Merchants Bank that will expire on May 5, 2024 to support its operations, which was jointly guaranteed by Baodafang, Cheche Ningbo and Cheche Insurance. There are no financial covenants for the credit facility. Under the credit facility, the Group has not drawn down yet. (2) Corporate borrowings from Beijing Fenzi Technology Co., Ltd. (“Fenzi Technology”) The Group entered into a borrowing agreement with Fenzi Technology with the borrowing term from September 1, 2020 to February 28, 2021. The principal amount of the loan is RMB20.0 million with the interest rate of 12% per annum. The balance of principal of RMB10.0 million and RMB10.0 million as of December 31, 2020 were fully repaid on March 5, 2021 and April 30, 2021, respectively. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Taxation Abstract | |
Taxation | 11. Taxation a) Income taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company in the Cayman Islands to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Subsidiary incorporated in Hong Kong is subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong before April 1, 2018. Starting from the financial year commencing on April 1, 2018, the two-tiered profits tax regime took effect, under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million. China Under the Enterprise Income Tax Law of the PRC, the Company’s Chinese subsidiaries, VIE and subsidiaries of VIE are subject to an income tax of 25%, except for Beijing Cheche, which was entitled a preferential tax rate of 15% from 2019 to 2021 and from 2022 to 2024 for its High and New Technology Enterprise (“HNTE”) status, subject to annual evaluation and a requirement that they re-apply for HNTE status every three years. Composition of Income Tax Expense The Company is not subject to income or capital gains tax under the current laws of the Cayman Islands. There are no other taxes likely to be material to the Company levied by the government of the Cayman Islands. The components of income before income taxes are as follows (in thousands): For the years ended December 31, 2021 2022 2023 RMB RMB RMB Loss before income tax expense Loss from Chinese mainland operations (132,584 ) (74,843 ) (149,818 ) Loss from non-Chinese mainland operations (14,399 ) (16,700 ) (10,135 ) Total Loss before income tax expense from continuing operations (146,983 ) (91,543 ) (159,953 ) Income tax benefit applicable to Chinese mainland operations Deferred tax 525 525 525 Subtotal income tax benefit applicable to Chinese mainland operations 525 525 525 Non-Chinese mainland withholding tax expense (3 ) (4 ) (162 ) Total income tax benefit from continuing operations 522 521 363 Reconciliation between the income tax credit computed by applying the Enterprise Income Tax (“EIT”) rate to loss before income taxes and actual provision were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Loss before income tax (146,983 ) (91,543 ) (159,953 ) Tax benefit at EIT tax rate of 25% (36,746 ) (22,886 ) (39,989 ) Effect of different tax rates applicable to different subsidiaries of the Group (3,651 ) 241 18,589 Effect of changes in tax rates - - 8,158 Expired operating loss - - 14,966 Permanent differences (931 ) (2,822 ) 13,722 Changes in deferred tax assets valuation allowance 40,806 24,946 (15,809 ) Income tax credit (522 ) (521 ) (363 ) As of December 31, 2023, certain entities of the Group had net operating tax loss carry forwards as follows: For the year ended 2023 RMB Loss expiring in 2024 125,177 Loss expiring in 2025 4,538 Loss expiring in 2026 137,657 Loss expiring in 2027 61,233 Loss expiring in 2028 2,473 Loss expiring in 2029 356 Loss expiring in 2030 85,329 Loss expiring in 2031 51,726 Loss expiring in 2032 29,854 Loss expiring in 2033 112,537 610,880 b) Deferred tax assets and liabilities The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Deferred tax assets: Net accumulated losses carry forwards 140,950 124,740 Accrued payroll and other expenses 7,570 9,480 Advertising expenses in excess of deduction limit 9,841 6,500 Fair value changes of amounts due to related party 3,108 4,237 Accrued expenses 400 427 Deferred revenue 358 358 Others 1,006 1,682 Deferred tax assets 163,233 147,424 Less: valuation allowance (163,233 ) (147,424 ) Deferred tax assets, net - - Deferred tax liabilities: Identifiable intangible assets arising from acquisition of Cheche Insurance (Note 7) (2,538 ) (2,013 ) Deferred tax liabilities (2,538 ) (2,013 ) The Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets of certain entities of the Group is more likely than not to be realized. Consequently, the Group has provided full valuation allowances on the related deferred tax assets. The following table sets forth the movement of valuation allowance for the years presented: December 31, December 31, December 31, RMB RMB RMB Balance at the beginning of the year (97,481 ) (138,287 ) (163,233 ) (Additions)/Reversals (40,806 ) (24,946 ) 15,809 Balance at end of the year (138,287 ) (163,233 ) (147,424 ) * The movement in valuation allowances were due to the changes of deferred tax assets recognised for net accumulated losses carry forwards, accrued payroll and other expenses, advertising expenses in excess of deduction limit, fair value changes of amounts due to related party, accrued expenses and deferred revenue. c) Withholding income tax The enterprise income tax (“EIT”) Law also imposes a withholding income tax of 10% on dividends distributed by a foreign-invested entity (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if all the requirements are satisfied. To the extent that subsidiaries, VIE and subsidiaries of VIE of the Group have undistributed earnings, the Company will accrue appropriate expected withholding tax associated with repatriation of such undistributed earnings. As of December 31, 2022 and 2023, the Company did not record any such withholding tax of its subsidiaries, VIE and subsidiaries of VIE in the PRC as they are still in accumulated deficit position. |
Tax Payable
Tax Payable | 12 Months Ended |
Dec. 31, 2023 | |
Tax Payable [Abstract] | |
Tax payable | 12. Tax payable The Group’s subsidiaries, VIE and subsidiaries of VIE incorporated in China are subject to 6% VAT for services rendered. The following is a summary of tax payable as of December 31, 2022 and 2023: December 31, December 31, RMB RMB VAT payables 2,088 43 Individual income tax payables 815 770 Stamp duty payables 66 - Construction tax payables 25 52 Educational development payables 50 37 Others 34 48 Total 3,078 950 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities The following is a summary of accrued expenses and other current liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Professional service fees 31,899 16,490 Refund liability 6,632 7,703 Accrued expenses 544 789 Payables to third-party financial institutions (i) - - Others 1,813 777 Total 40,888 25,759 (i) The Group entered into factoring agreements with third-party financial institutions in 2020 whereby the financial institutions would settle the Group’s accounts payable directly after the Group factored its accounts receivable with recourse to these financial institutions. The Group’s consolidated statements of cash flows has reflected an operating cash outflow in changes in “Accrued expenses and other current liabilities” and financing cash inflow related to this affected accounts payable balance in “Cash receipt of the debt proceeds”. A financing cash outflow was reflected upon payment to the financial institutions and settlement of the obligation in “Cash payment of the debt proceeds”. As of December 31, 2021, the Group has fully settled this payables to the financial institutions. |
Long-Term Borrowings
Long-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Long-term borrowings | 14. Long-term borrowings For the year ended December 31, 2021, the corporate borrowings represented a non-revolving term borrowing under a credit facility of US$3.0 million with an annual interest rate of 9.5% from a third party, Innoven Capital China Pte. Ltd. (the “Innoven Capital”). This corporate borrowings was unsecured and with maturity of two years. The Group drew down RMB19.1 million and repaid an aggregated principal amount of RMB7.3 million in 2021, and remaining payable as of December 31, 2021 has been fully paid in January 2022. |
Preferred Shares
Preferred Shares | 12 Months Ended |
Dec. 31, 2023 | |
Preferred Shares [Abstract] | |
Preferred shares | 15. Preferred shares Prior to the Reverse Recapitalization, CCT was authorized to issue ordinary shares and preferred shares. Series A, Series B, Series C, Series D1, Series D2, Series D3 and Series Pre-A convertible redeemable preferred shares held by Ruiyuan Technology Holdings Limited (“Ruiyuan”) after its re-designation are collectively referred to as the “Preferred Shares”. Series Seed preferred shares, Series Pre-A preferred shares held by Cicw Holdings Limited (“Cicw Holdings”), and Series Pre-A preferred shares held by Ruiyuan prior to its re-designation are without redemption right, conversion right and liquidation right, hence together referred as “Ordinary Shares”, in substance. The following table summarizes the issuances of Preferred Shares by CCT: As of December 31, 2022 Shares Shares Issue Redemption Value Liquidation Value US$ US$ Series Pre-A 4,429,111 4,429,111 RMB 5.45 19,752 19,965 Series A 9,181,406 9,181,406 RMB 5.45 40,853 40,886 Series B 8,033,732 8,033,732 RMB 21.78 49,709 52,721 Series C 1,955,000 1,955,000 US$ 8.58 17,616 19,916 Series D1 399,496 399,496 US$ 8.85 3,653 4,071 Series D2 765,057 765,057 US$ 8.85 6,996 7,795 Series D3 10,426,666 10,426,666 US$ 8.85 94,523 106,238 35,190,468 35,190,468 233,102 251,592 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Series Pre-A financing In July 2015, Beijing Cheche issued 146,903 shares to Shenzhen Ruiyuan Investment Enterprise, LLP (“Shenzhen Ruiyuan”) for the consideration of RMB30.0 million. Since then, after a series of transactions among investors of Beijing Cheche, Shenzhen Ruiyuan held 108,891 shares, immediately before the Reorganization. January 2019, in connection with the Reorganization, CCT issued 5,444,575 ordinary shares to Ruiyuan, designated by Shenzhen Ruiyuan. In October 2019, 1,015,462 of ordinary shares were transferred from Ruiyuan to Cicw Holdings for the consideration of RMB6.0 million. In June 2021, 4,429,111 of ordinary shares held by Ruiyuan were re-designated into Series Pre-A preferred shares, for nil consideration. Series A financing In July 2016, Beijing Cheche issued 91,814 and 91,814 shares to Beijing Zhongyun Ronghui Investment Center, LLP (“Zhongyun Ronghui”) and Hangzhou Shunying Equity Investment Enterprise, LLP (“Hangzhou Shunying”) for the consideration of RMB25.0 million and RMB25.0 million, respectively. On November 22, 2018, CCT entered into Preferred Share and Warrant Purchase Agreement with Zhongyun Ronghui and Hangzhou Shunying. CCT issued warrants to Zhongyun Ronghui and Hangzhou Shunying in connection with the Reorganization, which entitled them to purchase 4,590,703 and 4,590,703 shares of Series A convertible redeemable preferred shares, respectively. The warrants were exercised on May 23, 2019. On May 23, 2019, CCT issued 4,590,703 and 4,590,703 Series A preferred shares to Zhongyun Ronghui and Ningbo Shiwei Enterprise Management Partnership (L.P.) (“Ningbo Shiwei”) (designated by Hangzhou Shunying) for the consideration of US$ equivalent of RMB0.4 million and RMB0.4 million, respectively. Series B financing In August 2017, Beijing Cheche issued 6,886, 6,886, 55,088 and 91,814 shares to Zhongyun Ronghui, Hangzhou Shunying, Huzhou Zhongze Jiameng Equity Investment Enterprise, LLP (“Huzhou Zhongze”) and Zhuhai Hengqin Huarong Zhifu Investment Management Co., Ltd. (“Zhuhai Hengqin”) for the consideration of RMB7.5 million, RMB7.5 million, RMB60.0 million and RMB100.0 million, respectively. On November 22, 2018, CCT entered into Preferred Share and Warrant Purchase Agreement with Zhongyun Ronghui and Hangzhou Shunying. CCT issued warrants to Zhongyun Ronghui and Hangzhou Shunying in connection with the Reorganization, which entitled them to purchase 344,303 and 344,303 shares of Series B convertible redeemable preferred shares, respectively. The warrants were exercised on May 23, 2019. In January 2019, in connection with the Reorganization, CCT issued 2,754,422 and 4,590,704 Series B preferred shares to Eagle Rover Ltd. (“Huzhou Zhongze BVI”), and Lian Jia Enterprise Limited (“Zhuhai Hengqin BVI”), designated by Huzhou Zhongze and Zhuhai Hengqin, respectively. On May 23, 2019, CCT issued 344,303 and 344,303 Series B preferred shares to Zhongyun Ronghui and Ningbo Shiwei (designated by Hangzhou Shunying) for the consideration of US$ equivalent of RMB0.1 million and RMB0.1 million, respectively. Series C financing January 2019, CCT issued 1,877,135 Series C preferred shares to White Elephant for the consideration of US$17.4 million. In October 2019, CCT issued an additional 150,171 Series C preferred shares to White Elephant at par value which was accounted for as deemed dividend from CCT to White Elephant. In April 2021, CCT issued 1,955,000 Series C preferred shares to Yonghe CT Limited for the consideration of US$15.0 million. In February 2022, Yonghe CT Limited transferred its 782,000 Series C preferred shares to Yonghe CarTech Limited with no consideration. In January 2022, CCT received a notice of redemption request letter (the “Letter”) from White Elephant, as the Group failed to consummate a QIPO (defined as (i) a public offering of ordinary shares of CCT with an implied valuation of US$800,000,000 or more on the first day of listing the shares of CCT and the public offering of ordinary shares accounting for at least 10% of all the ordinary shares on a fully diluted and as-converted basis on the Stock Exchange of Hong Kong Limited or NASDAQ or a securities exchange or inter-dealer quotation system recognized by the right holder investors otherwise; or (ii) any public offering agreed by the holders of at least 2/3 of the then issued and outstanding preferred shares; or (iii) any SPAC transaction agreed by the holders of at least 2/3 of the then issued and outstanding preferred shares) by January 18, 2022, defined as a redemption event under an Amended and Restated Memorandum and Articles of Association of CCT dated July 26, 2021. In November 2022, in connection with an Amended and Restated Memorandum and Articles of Association of CCT dated November 3, 2022 (the “Existing M&A”) Article 19(a)(i), which changed the Redemption Event (i) as “CCT fails to consummate a QIPO by January 18, 2024” and the Letter, the Group and White Elephant agreed and entered into a Share Repurchase Agreement, whereby CCT repurchased its 27,600,750 Series C preferred shares from White Elephant for a consideration of US$19.7 million. The agreed redemption amount paid for Series C preferred shares to White Elephant was lower than its carrying amount of the Series C preferred shares accreted up to the redemption amount as of redemption date in November 2022 in accordance with the original contractual terms. The repurchase of this Series C preferred shares from White Elephant was completed in November 2022. Series D1 financing In June 2021, CCT issued 399,496 Series D1 preferred shares to United Gemini Holdings Limited for the consideration of RMB20.0 million. Series D2 financing In June 2021, CCT issued 651,667 and 113,390 Series D2 preferred shares to Yonghe CT Limited and Yonghe SI Limited for the consideration of US$5.0 million and US$0.9 million, respectively. In February 2022, Yonghe CT Limited transferred its 260,667 shares to Yonghe CarTech Limited with no consideration. Series D3 financing In July 2021, CCT issued 8,341,333 and 2,085,333 Series D3 preferred shares to Image Digital Investment (HK) Limited and TPP Fund II Holding F Limited for the consideration of US$64.0 million and US$16.0 million, respectively. The key terms of the Preferred Shares are as follows: Conversion right Each of Preferred Shares shall automatically be converted into ordinary shares at the then effective conversion price upon the closing of a QIPO. If the offering does not constitute a QIPO, it is at the option of holders of Preferred Shares to convert. No fractional ordinary share shall be issued upon conversion of the Preferred Shares. In lieu of any fractional ordinary shares to which the holder would otherwise be entitled, CCT shall pay cash equal to such fraction multiplied by the then effective conversion price for any such series of Preferred Shares. The conversion ratio for each of Preferred Share shall be determined by dividing the issue price by the then conversion price, in effect at the time of the conversion. The conversion price shall initially be equal to the issue price per ordinary share. No adjustment in the conversion price for any series of Preferred Shares shall be made in respect of the issuance of additional ordinary shares unless below conditions are met: 1) the consideration per share for an additional ordinary share issued or deemed to be issued by CCT is less than the conversion price for such series in effect on the date of and immediately prior to such issuance; 2) the original issue price of each of the Series C, Series D1, Series D2 and Series D3 preferred shares is higher than seventy-five percent of the QIPO offering price. Redemption right The Preferred Shares holders shall have redemption rights upon the occurrence of any of the following events: (i) CCT fails to complete QIPO by January 18, 2022 (the “QIPO date”); (ii) Share Purchase Agreement, Shareholders Agreement and the Memorandum and Articles of Association (“Transaction Document”) fails to obtain necessary corporate proceedings and authorization from the Group Companies, the Founder and the Founder’s Holdco.; (iii) there is a material breach by any Group Companies, the Founder and the Founder’s Holdco of any of its, his or her, warranties, covenants, obligations under any Transaction Document , or (iv) there is a material breach by any Group Companies, the Founder and the Founder’s Holdco of any applicable Laws, which results in a cessation of CCT’s main business for a period of no less than three months; (v) any Group Company’s improper operation of its business and/or illegal activities, any of which have resulted in substantial losses to any Group Company; (vi) Any of Contractual arrangements with VIE has been terminated, declared void or invalid or otherwise incapable of enabling CCT to consolidate the Domestic Company’s financial results pursuant to the International Financial Reporting Standards or the United States’ generally accepted accounting principles; (vii) the Founder having been convicted of a criminal offence; (viii) the Group Companies’ engagement in the business other than the current business (each a “Redemption Event”); then each of Preferred Shares shall be redeemable upon the request of any preferred shareholder. Under the Amended and Restated Memorandum and Articles of Association of CCT dated November 3, 2022, the Preferred Shareholders agreed to change the QIPO date as part of the Redemption Event (i) to January 18, 2024. On February 23, 2023, the Preferred Shareholders further agreed to amend the QIPO date to January 18, 2025. On the same date, the Group entered into share transfer agreements with the existing Preferred Shareholders and transferred 559,868, 606,524, 606,524, 1,119,736, 1,866,227, 1,522,101, 1,014,735, 388,793, 110,352, 8,117,877 and 2,029,469 ordinary shares of CCT at par value to these existing preferred shareholders before the QIPO including Ruiyuan, Zhongyun Ronghui, Ningbo Shiwei, Huzhou Zhongze BVI, Zhuhai Hengqin BVI, Yonghe CT Limited, Yonghe CarTech Limited, United Gemini Holdings Limited, Yonghe SI Limited, Image Digital Investment (HK) Limited and TPP Fund II Holding F Limited, respectively in connection with the modification of the QIPO date relating to the preferred shares. The Preferred Shares’ redemption price shall be equal to the greater of (i) the original investment amount of the capital contribution, plus an amount accruing thereon daily at a compound interest rate of ten percent (10%) per annum of the capital contribution from issue date plus any declared but unpaid dividends; or (ii) the original investment amount of the capital contribution, plus the aggregate net profits of the Group incurred from issue date to the redemption date multiplied by average amount of the percentage of the shares held by such investor in CCT from issue date to the redemption date; or (iii) the fair market value of the capital contribution to be redeemed determined by a third party valuer. Dividend right No dividends or other distributions shall be made or declared, whether in cash, in property, or in any other shares of the Group, unless and until dividends have been paid in full on the Preferred Shares. Liquidation right After setting aside or paying in full of the Series D3 preference amount, the Series D2 preference amount, the Series D1 preference amount, the Series C preference amount, the Series B preference amount, the Series A preference amount and the Series Pre-A preference amount, the remaining assets of the Group available for distribution to members, if any, shall be distributed to the holders of the Preferred Shares and Ordinary Shares on a pro rata basis, based on the number of ordinary shares then held by each holder on an as-converted basis. Voting right Each of Preferred Shares confers the right to receive notice of, attend and vote at any general meeting of members. Accounting of Preferred Shares The Group has classified the Preferred Shares in the mezzanine equity of the consolidated balance sheets as they were redeemable at the options of the holders any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation event outside of CCT’s control. The conversion feature as mentioned above, are initially measured at its fair value, respectively, and the initial carrying value for the Preferred Shares are allocated on a residual basis, net of issuance costs. Since the Preferred Shares become redeemable at the option of the holder at any time after a specified date, for each reporting period, CCT recorded accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption dates as set forth in the original issuance. While all Preferred Shares are automatically converted upon a QIPO, the effectiveness of a QIPO is not within the control of CCT and is not deemed probable to occur for accounting purposes until the effective date of the QIPO. As such, CCT continued to recognize accretion of the Preferred Shares during the years ended December 31, 2021, 2022 and the period from January 1, 2023 to September 14, 2023 (the Closing Date of the Business Combination). The accretion of Preferred Shares was negative RMB101.5 million, RMB188.3 million and RMB762.2 million for the years ended December 31, 2021, 2022 and the period from January 1, 2023 to September 14, 2023. In addition, the Group records accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption dates. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. Each issuance of the Preferred Shares is recognized at the respective fair value at the date of issuance net of issuance costs. The deemed liquidation preference provisions of the Preferred Shares were considered contingent redemption provisions that were not solely within the CCT’s control. As such, prior to the Reverse Recapitalization, the associated balances were presented outside of permanent equity in the mezzanine section of the consolidated balance sheets. As part of the Reverse Recapitalization transaction, as described within Note 3, the Preferred Shares was converted into a certain number of ordinary shares of CCT based on the CCT’s then effective memorandum and articles of association, and then CCT converted the ordinary shares converted from preferred shares into a certain number of the Company’s Class A ordinary shares. The Company had no outstanding Preferred Shares as of December 31, 2023. Accounting of Re-designation from ordinary shares to preferred shares The Group considered that re-designation from ordinary shares to preferred shares mentioned above were, in substance, the same as a contribution from ordinary shareholders followed by a cancellation of those ordinary shares and simultaneously an issuance of the preferred shares for no consideration. Therefore, the Group recorded the par value of those ordinary shares cancelled into additional paid-in capital, and recorded the fair value of the preferred shares as deemed distribution to preferred shareholders, against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional paid-in capital has been exhausted. The Group’s preferred shares activities for the years ended December 31, 2021, 2022 and 2023, respectively, are summarized below: Balance as of Issuance of Accretions to Preferred Re-designation from Balance as of Series Pre-A Preferred shares Number of shares - - - 4,429,111 4,429,111 Amount - - (44,347 ) 165,468 121,121 Series A Preferred shares - Number of shares 9,181,406 - - - 9,181,406 Amount 314,292 - (43,415 ) - 270,877 Series B Preferred shares Number of shares 8,033,732 - - - 8,033,732 Amount 330,623 - (54,873 ) - 275,750 Series C Preferred shares Number of shares 2,027,306 1,955,000 - - 3,982,306 Amount 140,976 97,850 20,198 - 259,024 Series D1 Preferred shares Number of shares - 399,496 - - 399,496 Amount - 19,400 1,052 - 20,452 Series D2 Preferred shares Number of shares - 765,057 - - 765,057 Amount - 33,034 1,958 - 34,992 Series D3 Preferred shares Number of shares - 10,426,666 - - 10,426,666 Amount - 502,963 17,960 - 520,923 Total Number of shares 19,242,444 13,546,219 - 4,429,111 37,217,774 Total amount 785,891 653,247 (101,467 ) 165,468 1,503,139 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Balance as of Accretions to Preferred Redemption of Preferred Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - - 4,429,111 Amount 121,121 30,182 - 151,303 Series A Preferred shares Number of shares 9,181,406 - - 9,181,406 Amount 270,877 62,920 - 333,797 Series B Preferred shares Number of shares 8,033,732 - - 8,033,732 Amount 275,750 44,286 - 320,036 Series C Preferred shares Number of shares 3,982,306 - (2,027,306 ) 1,955,000 Amount 259,024 (11,139 ) (132,529 ) 115,356 Series D1 Preferred shares Number of shares 399,496 - - 399,496 Amount 20,452 2,187 - 22,639 Series D2 Preferred shares Number of shares 765,057 - - 765,057 Amount 34,992 4,152 - 39,144 Series D3 Preferred shares Number of shares 10,426,666 - - 10,426,666 Amount 520,923 55,683 - 576,606 Total Number of shares* 37,217,774 - (2,027,306 ) 35,190,468 Total amount 1,503,139 188,271 (132,529 ) 1,558,881 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Balance as of Accretions to Preferred Transfer Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - (4,429,111 ) - Amount 151,303 149,858 (301,161 ) - Series A Preferred shares Number of shares 9,181,406 - (9,181,406 ) - Amount 333,797 311,290 (645,087 ) - Series B Preferred shares Number of shares 8,033,732 - (8,033,732 ) - Amount 320,036 239,317 (559,353 ) - Series C Preferred shares Number of shares 1,955,000 - (1,955,000 ) - Amount 115,356 9,144 (124,500 ) - Series D1 Preferred shares Number of shares 399,496 - (399,496 ) - Amount 22,639 1,853 (24,492 ) - Series D2 Preferred shares Number of shares 765,057 - (765,057 ) - Amount 39,144 3,519 (42,663 ) - Series D3 Preferred shares Number of shares 10,426,666 - (10,426,666 ) - Amount 576,606 47,188 (623,794 ) - Total Number of shares* 35,190,468 - (35,190,468 ) - Total amount 1,558,881 762,169 (2,321,050 ) - |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 16. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company concluded that the Group’s CODM is Mr. Lei Zhang, Chairman of the Board of Directors, and CEO. In accordance with ASC 280-10, Segment Reporting: Overall Key revenues streams are as below: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Insurance transaction services income 1,699,433 2,617,185 3,275,182 SaaS and technical service income 30,435 61,863 25,051 Others 5,536 11 1,185 Total 1,735,404 2,679,059 3,301,418 Substantially all revenues are derived in China where services are provided to customers. In addition, the Group’s long-lived assets are substantially all located in China. Therefore, no geographical segments are presented. |
Cost of Revenues
Cost of Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Cost of Revenues [Abstract] | |
Cost of revenues | 17. Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue, which consists primarily of cost of referral partners, service fee paid to third-party payment platforms, customer service costs, amortization and depreciation expenses, salary and welfare benefits, cloud service fees, tax and surcharges and others. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. The following table presents the Group’s cost of revenues for the years ended December 31, 2021, 2022 and 2023: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cost of referral partners 1,581,153 2,424,579 3,017,871 Service fee paid to third-party payment platforms 62,019 104,627 129,453 Customer service costs 4,428 - - Amortization and depreciation 2,119 2,391 2,100 Salary and welfare benefits 2,074 2,070 7,790 Cloud service fees 1,764 1,838 1,525 Tax and surcharges and others 1,035 1,241 2,454 Total 1,654,592 2,536,746 3,161,193 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Employee benefits | 18. Employee benefits The Company’s subsidiaries, VIE and subsidiaries of VIE incorporated in China participate in a government-mandated multi-employer defined contribution plan under which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s Chinese subsidiaries, VIE and subsidiaries of VIE to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; hence, the Group has no further commitments beyond its monthly contribution. The following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021* 2022* 2023 RMB RMB RMB Contributions to medical and pension schemes 17,143 20,842 21,095 Other employee benefits 5,857 7,227 6,726 Total 23,000 28,069 27,821 * The amounts of “Contributions to medical and pension schemes” and “Other employee benefits” for the years ended December 31, 2021 and 2022 have been revised to correct for a formula error in the preparation of this disclosure. The errors in 2021 and 2022 were disclosure only and did not have any impact to the previously reported consolidated results of operations, financial position, or cash flows. The impact of the revision on the previously reported employee welfare benefits expenses for this disclosure is as follows: For the years ended 2021 2022 As Adjustment As As Adjustment As RMB RMB Contributions to medical and pension schemes 8,612 8,531 17,143 10,376 10,466 20,842 Other employee benefits 1,452 4,405 5,857 1,990 5,237 7,227 Total 10,064 12,936 23,000 12,366 15,703 28,069 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation [Abstract] | |
Share-based compensation | 19. Share-based compensation (a) Description of stock option plan 2019 Incentive Plan In January 2020, the Company permitted the grant of options and restricted shares to relevant directors, officers, senior management, employees and non-employees of the Group (the “2019 Incentive Plan”). Option awards are granted with an exercise price determined by the Board of Directors. The stock options granted under the 2019 Incentive Plan have a contractual term of 10 years and will expire the earlier of (i) three months after termination of service with the Group, or (ii) upon the tenth anniversary of the grant date. (a) Description of stock option plan (Continued) The stock options granted under the 2019 Incentive Plan will be immediately vested upon grant. The restricted shares granted under the 2019 Incentive Plan could either be granted with terms that (i) immediately vested upon grant; (ii) 25% vested on each anniversary or 6.25% vested on each quarter for vesting schedule of four years; or (iii) 50% vested on each anniversary for vesting schedule of two years. 2023 Incentive Plan In September 2023, the Company permitted the grant of options, restricted shares or any other type of awards to relevant directors, employees and non-employees of the Group (the “2023 Incentive Plan”). Option awards are granted with an exercise price determined by the Board of Directors. In accordance with ASC 718 Stock Compensation, the Group recorded share-based compensation expense on the grant date of the equity interests to its employees equal to the estimated fair-value of such equity interests at the measurement date. The share-based compensation expense was recorded in cost of revenues, selling and marketing expenses, general and administrative expenses and research and development expenses on the consolidated statements of operations and comprehensive loss. Stock option replacement (the “Replacement”) On January 1, 2023 and July 1, 2023, a total of 86,871,800 and 20,359,900 vested options were replaced by 86,871,800 and 20,359,900 restricted shares of CCT, which were converted into restricted shares of the Company upon the completion of the Reverse Recapitalization (Note 3). The restricted shares awards are subject to the original vesting schedule of the replaced share options. The Company concluded the cancellation and replacement of awards is a modification, and determined the modification is a probable-to-probable (Type I) modification. The Company has recognized the portion of incremental value of RMB26.2 million and RMB26.3 million as cost of revenues and expenses immediately for those vested options. (b) Valuation assumptions The Group uses binomial option pricing model and adopted fair value per share of ordinary share to determine fair value of the share-based awards. The estimated fair value of each option or each restricted share granted is estimated on the date of grant using the binomial option-pricing model or fair value per share of ordinary share with the following assumptions: For the years ended December 31, Options* 2021 2022 2023 Fair value per share (US$) 3.81-5.58 * 6.33-6.37 Discount rate (after tax) 16.50%-18.00% * Not applicable Risk-free interest rate 1.66% * 3.88% Expected volatility 42.05%-54.06% * 64.2% Contractual term (in years) 10 * 10 Discount for lack of marketability (“DLOM”) 7.00%-12.00% * Not applicable * There were no grants for options for the year ended December 31, 2022. For the years ended December 31, Restricted shares 2021 2022 2023 (prior to the Business Combination) Fair value per share (US$) 3.81-5.58 3.81-4.08 4.90-5.45 Discount rate (after tax) 16.50%-18.00% 16.5% 15.0%-16.0% Discount for lack of marketability (“DLOM”) 7.00%-12.00% 10% 5%-10% The expected volatility at the grant date and each option valuation date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the options. The weighted average volatility is the expected volatility at the grant date weighted by number of options. The Company has never declared or paid any cash dividends on its shares, and the Group does not anticipate any dividend payments in the foreseeable future. The contractual term is the contract life of the options. The Group estimated the risk-free interest rate based on the market yield of US Government Bonds with maturities of ten years as of the valuation date, plus a country default risk spread between China and US. (c) Stock options activities The following table presents a summary of the Company’s stock options activities for the years ended December 31, 2021, 2022 and 2023. Number of Options Outstanding* Weighted Weighted average Aggregated Employees Consultant Total price contractual life intrinsic value (in thousands) (in thousands) (in thousands) US$ (in years) RMB in thousands Outstanding at January 1, 2021 8,562 331 8,893 2.0163 6.76 65,574 Granted 547 - 547 8.0748 - - Forfeited (1,433 ) - (1,433 ) 5.3355 - - Outstanding at December 31, 2021 7,676 331 8,007 1.8362 5.69 65,574 Exercisable as of December 31, 2021 7,676 331 8,007 1.8362 5.69 65,574 Outstanding at January 1, 2022 7,676 331 8,007 1.8362 5.69 65,574 Forfeited (58 ) - (58 ) 8.0885 - - Outstanding at December 31, 2022 7,618 331 7,949 1.7905 4.67 65,572 Exercisable as of December 31, 2022 7,618 331 7,949 1.7905 4.67 65,572 Outstanding at January 1, 2023 7,618 331 7,949 1.7905 4.67 65,572 Replacement (7,545 ) (331 ) (7,876 ) 1.3119 - - Granted 528 - 528 0.1000 - - Forfeited (28 ) - (28 ) 8.1954 - - Outstanding at December 31, 2023 573 - 573 0.6675 9.73 23,775 Exercisable as of December 31, 2023 295 - 295 1.1978 9.48 11,367 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). The weighted average grant date fair value of options granted for the years ended December 31, 2021, 2022 and 2023 were RMB5.3151 (US$0.7801), RMB5.2688 (US$0.7733) and RMB42.1761 (US$5.9404) per option, respectively. No options were exercised for the years ended December 31, 2021, 2022 and 2023. (d) Restricted shares activities The following table sets forth the summary of restricted share activities for the years ended December 31, 2021, 2022 and 2023: Number of Restricted Weighted-Average Grant Date Fair Value (in thousands) (US$) Unvested as of January 1, 2021 546 4.3444 Awarded 997 5.0346 Vested (340 ) 4.5173 Forfeited (3 ) 4.6634 Outstanding at December 31, 2021 1,200 4.8681 Unvested as of January 1, 2022 1,200 4.8681 Awarded 124 3.9252 Vested (498 ) 4.7458 Forfeited (40 ) 3.9504 Outstanding at December 31, 2022 786 4.8435 Unvested as of January 1, 2023 786 4.8435 Replacement 7,876 4.9821 Awarded 703 6.4017 Vested (8,938 ) 5.0743 Forfeited (97 ) 5.5168 Outstanding at December 31, 2023 330 5.0233 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share [Abstract] | |
Net loss per share | 20. Net loss per share For the years ended December 31, 2021, 2022 and 2023, the Company had potential ordinary shares, including preferred shares before the QIPO, restricted shares and share options granted. As the Group incurred losses for the years ended December 31, 2021, 2022 and 2023, these potential preferred shares, restricted shares and shares options granted were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company. Considering that the holders of preferred shares have no contractual obligation to participate in the Company’s losses, any losses from the Group should not be allocated to preferred shares. The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2021, 2022 and 2023: For the years ended December 31, 2021 2022 2023 Numerator: Net loss (146,461 ) (91,022 ) (159,590 ) Less: accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Net loss attributable to Cheche’s ordinary shareholders (44,994 ) (279,293 ) (921,759 ) Denominator: Weighted average number of ordinary shares outstanding, basic 33,831,133 31,780,394 45,415,205 Weighted average number of ordinary shares outstanding, diluted* 33,831,133 31,780,394 45,415,205 Basic net loss per share attributable to Cheche’s ordinary shareholders (1.33 ) (8.79 ) (20.30 ) Diluted net loss per share attributable to Cheche’s ordinary shareholders (1.33 ) (8.79 ) (20.30 ) * For the years ended December 31, 2021, 2022 and 2023, the Company had potential ordinary shares, including preferred shares, restricted shares and share options. On a weighted average basis, 28,672,636, 35,185,538 and 24,777,946 preferred shares, 941,263, 1,032,167 and 523,097 restricted shares, and 8,202,538, 7,975,942 and 822,952 share options were excluded from the computation of diluted net loss per ordinary share because including them would have had an anti-dilutive effect for the years ended December 31, 2021, 2022 and 2023, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies (a) Commitments The Group leases office space under non-cancelable operating lease agreements, which expire at various dates through December 31, 2023. As of December 31, 2022 and 2023, future minimum lease of RMB2.0 million and RMB1.0 million under non-cancelable operating lease agreements were all due within one year. (b) Litigation As of December 31, 2022 and 2023, the Group was not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position results of operations, or cash flows. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 22. Related Party Balances and Transactions The table below sets major related parties of the Group and their relationships with the Group: Entity or individual name Relationship with the Group Mr. Lei Zhang Founder, Chairman of the Board of Directors and CEO Fanhua Group Shareholder of the Company (a) The related party transactions entered into during the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, Significant transactions with related parties 2021 2022 2023 RMB RMB RMB Repayment of borrowings from related party Mr. Lei Zhang (i) (15,000 ) - - Fanhua Group (ii) (13,000 ) - (12,610 ) (b) The outstanding balance due to related parties as of December 31, 2022 and 2023 were as follows: As of December 31, Balances with related parties 2022 2023 RMB RMB Amounts due to related parties Fanhua Group 59,932 55,251 (i) For the years ended December 31, 2021, the Group was granted an RMB10.0 million credit facility from Bank of Nanjing that expired on April 22, 2021 to support its operations, which was guaranteed by Cheche Insurance and Mr. Lei Zhang. Please see Note 10(1) for additional details. (ii) Corporate borrowings from Fanhua Group The Group issued a convertible loan in the principal amount of RMB130.0 million to Fanhua Group with an annual interest rate of 10% (the “Convertible Loan”) on October 26, 2017. The due date of the Convertible Loan is October 26, 2020. Pursuant to the Convertible Loan agreement, the entire or any portion of the Convertible Loan can be converted into ordinary shares of the Company. On October 10, 2019, Fanhua Group converted the RMB80.0 million in the principal amount of the Convertible Loan and its accrued interests of RMB14.1 million into an aggregate of 28,684,255 ordinary shares of the Company, at a conversion price of US$0.4766 per share. On the same date, Fanhua Group gave up its conversion right for the remaining balance of the Convertible Loan in accordance with a Convertible Loan Payment Plan Agreement entered by these two parties (the “Payment Plan Agreement”). Upon the conversion, Fanhua Group held 3.4% equity interest in the Group. In October 2020, the Group entered into a supplemental agreement to the Payment Plan Agreement with Fanhua Group to extend the remaining principal balance in the Convertible Loan of RMB50.0 million and corresponding interest of RMB15.0 million as additional principal to October 26, 2022 (the “Corporate borrowings from Fanhua Group”). RMB10 million of the aggregated principal amount of RMB65 million with an annual interest rate of 10% was due on January 10, 2021 and the remaining of RMB55.0 million was due on October 26, 2022. In 2021, the Group repaid the aggregated principal amount of RMB6.3 million to Fanhua Group. In October 2022, the Group entered into another supplemental agreement to the Payment Plan Agreement with Fanhua Group to extend the remaining balance of the Corporate borrowings from Fanhua Group to October 26, 2024, which caused the presentation of the borrowing reclassified from current liabilities to non-current liabilities. None In 2023, the Group repaid the aggregated amount of RMB12.6 million to Fanhua Group. As of December 31, 2023, the balance of the Corporate borrowings from Fanhua Group was RMB55.3 million, and the remaining balance of the Corporate borrowings from Fanhua Group will be mature on October 26, 2024, which caused the presentation of the borrowing reclassified from non-current liabilities to current liabilities. The Group elected fair value option to account for the Convertible Loan and the Corporate borrowings from Fanhua Group, and recognized loss/(gain) under “Changes in fair value of amounts due to related party” and “Fair value changes of amounts due to related party due to own credit risk” in the consolidated statements of operations and comprehensive loss of RMB11.2 million, RMB6.5 million and RMB7.5 million and negative RMB1.6 million, RMB0.5 million and RMB0.4 million for the years ended December 31, 2021, 2022 and 2023, respectively. The Group engaged an independent valuation firm to assist the management in its assessment of fair value of the Corporate borrowings at each end of reporting periods. The fair value measurements of the Corporate borrowings are based on significant inputs not observable in the market, and thus represent Level 3 fair value measurements. The Group utilized the following assumptions to estimate the fair value of the Corporate borrowings: As of December 31, 2021 2022 2023 Discount rate 15.01 % 12.70 % 11.87 % The movement of Corporate borrowings from Fanhua Group is as follows: Corporate Borrowings RMB Balance as of January 1, 2021 56,353 Change in fair value 11,242 Change in other comprehensive income (1,590 ) Repayment of amounts due to related party (13,000 ) Balance as of December 31, 2021 53,005 Balance as of January 1, 2022 53,005 Change in fair value 6,451 Change in other comprehensive income 476 Balance as of December 31, 2022 59,932 Balance as of January 1, 2023 59,932 Change in fair value 7,524 Change in other comprehensive income 405 Repayment of amounts due to related party (12,610 ) Balance as of December 31, 2023 55,251 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 23. Fair Value Measurement Assets and liabilities measured at fair value on a nonrecurring basis As of December 31, 2022 and 2023, the Company had no financial assets or financial liabilities that are measured at fair value on non-recurring basis. The Company measured its non-financial assets, such as its property, equipment and leasehold improvements, intangible assets, goodwill on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Assets and liabilities measured at fair value on a recurring basis The Company measured the Corporate borrowings from Fanhua Group and warrant at fair value on a recurring basis. As the Company’s Corporate borrowings from Fanhua Group and warrant are not traded in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of the Corporate borrowings from Fanhua Group and warrant. This instrument is categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2022 and 2023. The following table summarizes the Company’s financial liabilities measured and recorded at fair value on recurring basis as of December 31, 2022 and 2023: As of December 31, 2022 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant - - 1,045 1,045 Corporate borrowings from Fanhua Group - - 59,932 59,932 As of December 31, 2023 Active Market Observable Input Unobservable Input Total RMB RMB RMB RMB Liabilities: Warrant 5,419 - 850 6,269 Corporate borrowings from Fanhua Group - - 55,251 55,251 Warrant The fair value of the warrants converted from Prime Impact are measured based on the listed market price of such warrant, a Level 1 measurement. The fair value of the warrants converted from CCT are measured based on binomial option pricing model, a Level 3 measurement. Management is responsible for determining the fair value and assessing a number of factors. The valuation involves complex and subjective judgements as well as the Company’s best estimates on the valuation date. Key inputs related to the binomial option pricing model for the valuation of the fair value of warrants are: expiry date of warrant, fair market value per share as of valuation date, exercise price, risk free rate of interest, dividend yield, expected time to exercise as well as volatility. Corporate borrowings from Fanhua Group The Group classified the Corporate borrowings from Fanhua Group as current liability and measured at fair value. The Group classifies the valuation techniques that use fair value of the principle as Level 3 of fair value measurements. Generally, there are no quoted prices in active markets and other inputs that are directly or indirectly observable in the marketplace for the Corporate borrowings from Fanhua Group during the period at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and earning forecast as unobservable inputs other than quoted prices in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events On January 31, 2024, March 1, 2024 and March 18, 2024, the Company granted 177,000 options, 95,989 options and 389,292 restricted shares to its employees, respectively. Please see Note 10(iii) for subsequent payment for short-term borrowings. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Net Assets Abstract | |
Restricted Net Assets | 25. Restricted Net Assets Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries, VIE and subsidiaries of VIE can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the general reserve fund and the statutory surplus fund respectively. The general reserve fund and the statutory surplus fund require that annual appropriations of 10% of net after-tax income should be set aside prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the PRC subsidiaries, VIE and subsidiaries of VIE are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans, or advances, which restricted portion amounted to RMB328.5 million as of December 31, 2023. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Even though the Company currently does not require any such dividends, loans, or advances from the PRC subsidiaries, VIE and subsidiaries of VIE for working capital and other funding purposes, the Company may in the future require additional cash resources from its PRC subsidiaries, VIE and subsidiaries of VIE due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to the Company’s shareholders. The Company performed a test on the restricted net assets of its consolidated subsidiaries, VIE and subsidiaries of VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to the Financial Statements” and concluded that it was applicable for the Company to disclose the condensed financial information for the parent company (Note 26) for the years ended December 31, 2021, 2022 and 2023. For the purposes of presenting parent only financial information, the Company records its investments in its subsidiaries, VIE and subsidiaries of VIE under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries, VIE, and subsidiaries of VIE” and the loss of the subsidiaries, VIE and subsidiaries of VIE is included in “Equity in loss of subsidiaries, VIE and subsidiaries of VIE” in the condensed statements of operations and comprehensive loss. |
Additional Information___Conden
Additional Information — Condensed Financial Statements of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information — Condensed Financial Statements of the Parent Company [Abstract] | |
Additional Information — Condensed Financial Statements of the Parent Company | 26. Additional Information — Condensed Financial Statements of the Parent Company As mentioned in Note 1, the Company was incorporated in the Cayman Islands in January 2023 and didn’t carry out significant operation activities. CCT is the predecessor of the Company, thus, the Company disclosed combined condensed financial statements of the Company and CCT (collectively refer to the “Parent Company” or “Cheche”) as follows: The condensed financial information of the Parent Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Parent Company uses the equity method to account for investments in its subsidiaries, VIE and subsidiaries of VIE. The subsidiaries did not pay any dividend to the Parent Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Parent Company, as such, these statements are not the general purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Parent Company. The Parent Company did not have significant capital and other commitments or guarantees as of December 31, 2022 and 2023. Condensed statements of operations and comprehensive loss: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Operating expenses: General and administrative expenses (15,135 ) (13,787 ) (14,272 ) Total operating expense (15,135 ) (13,787 ) (14,272 ) Other expense Interest income from VIE 971 1,692 1,790 Share of loss of subsidiaries, VIE and subsidiaries of VIE (131,142 ) (77,878 ) (149,974 ) Others, net (1,152 ) (1,049 ) 3,024 Loss before income tax (146,458 ) (91,022 ) (159,432 ) Income tax expense (3 ) - (158 ) Net loss (146,461 ) (91,022 ) (159,590 ) Accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Net loss attributable to Cheche’s ordinary shareholders (44,994 ) (279,293 ) (921,759 ) Net loss (146,461 ) (91,022 ) (159,590 ) Other comprehensive loss: Foreign currency translation adjustment, net of nil tax (10,278 ) 8,207 1,621 Fair value changes of amounts due to related party due to own credit risk 1,590 (476 ) (405 ) Total comprehensive loss (155,149 ) (83,291 ) (158,374 ) Accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Total comprehensive loss to Cheche’s ordinary shareholders (53,682 ) (271,562 ) (920,543 ) Condensed balance sheets: As of December 31, As of December 31, 2022 2023 RMB RMB Current assets: Cash and cash equivalents 1,008 119,033 Amount due from the subsidiaries of the Group - 1,520 Prepayments and other current assets 287 1,118 Total current assets 1,295 121,671 Non-current assets: Other non-current assets - 4,149 Amounts due from the subsidiaries of the Group 639,110 638,290 Total non-current assets 639,110 642,439 TOTAL ASSETS 640,405 764,110 Current liabilities: Accrued expenses and other current liabilities 27,899 11,310 Warrant 1,045 850 Deficit in subsidiaries, VIE and subsidiaries of VIE 313,123 365,377 Amounts due to the subsidiaries of the Group - 2,972 Total current liabilities 342,067 380,509 Non-current liabilities: Warrant - 5,419 Total non-current liabilities - 5,419 Total liabilities 342,067 385,928 Mezzanine equity Convertible redeemable preferred shares 1,558,881 - Total mezzanine equity: 1,558,881 - Shareholders’ (deficit)/equity: Ordinary shares * 2 5 Treasury stock* (1,025 ) (1,025 ) Additional paid-in capital* 25 2,491,873 Accumulated deficit (1,259,479 ) (2,113,821 ) Accumulated other comprehensive loss (66 ) 1,150 Total shareholders’ (deficit)/equity (1,260,543 ) 378,182 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY 640,405 764,110 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Condensed statements of cash flows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Net cash used in operating activities (22,275 ) (6,352 ) (20,885 ) Cash flows from investing activities Cash paid for investments in subsidiaries, VIE and subsidiaries of VIE (304,759 ) (172,030 ) - Placement of short-term investments (63,757 ) - - Cash received from maturities of short-term investments - 63,757 - Net cash used in investing activities (368,516 ) (108,273 ) - Cash flows from financing activities Proceeds from issuance of ordinary shares 633,847 - - Proceeds from PIPE financing – Prime Impact Cayman LLC - - 8,609 Proceeds from PIPE financing – World Dynamic Limited - - 93,436 Proceeds from PIPE financing – Goldrock Holdings Limited - - 35,863 Cash payment for redemption of Series C convertible redeemable preferred shares - (137,202 ) - Cash received from long-term borrowings from a third party 19,127 - - Cash repayments of long-term borrowings to a third party (7,287 ) (11,840 ) - Net cash generated from/(used in) financing activities 645,687 (149,042 ) 137,908 Effect of exchange rate changes on cash and cash equivalents and restricted cash (2,958 ) 11,725 1,002 Net increase/(decrease) in cash and cash equivalents and restricted cash 251,938 (251,942 ) 118,025 Cash and cash equivalents at beginning of the year 1,012 252,950 1,008 Cash and cash equivalents and restricted cash at end of the year 252,950 1,008 119,033 The Parent Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries, VIE and subsidiaries of VIE. For the Parent Company only condensed financial information, the Parent Company records its investments in subsidiaries, VIE and subsidiaries of VIE under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed balance sheets as “Investments in subsidiaries, VIE and subsidiaries of VIE” and shares in the subsidiaries, VIE and subsidiaries of VIE’s loss are presented as “Equity in loss of subsidiaries, VIE and subsidiaries of VIE” on the Condensed statements of operations and comprehensive loss. The Parent Company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements. The Parent Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries, VIE and subsidiaries of VIE. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Basis of presentation | a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its subsidiaries, VIE and subsidiaries of VIE, after elimination of all intercompany accounts and transactions. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company reclassified technical service income of RMB0.6 million and RMB2.1 million for 2021 and 2022, respectively from Others to SaaS income and renamed the revenue stream SaaS and technical service income for all the periods presented. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and subsidiaries of VIE for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, VIE and subsidiaries of VIE have been eliminated upon consolidation. |
Use of estimates | c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, provision of current expected credit losses of receivables, fair value of amounts due to related party, ordinary shares and preferred shares and warrant, as well as the valuation and recognition of share-based compensation expenses. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Functional currency and foreign currency translation | d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$”). The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, and expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in foreign exchange gains in the consolidated statements of operations and comprehensive loss. |
Fair value measurements | e) Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable, other receivables (included in “prepayments and other current assets”), accounts payable, short-term borrowings, contract liabilities and other payables (included in “accrued expenses and other current liabilities”), of which the carrying values approximate their fair value. Lease liabilities are measured at amortized cost using discounted rates reflected time value of money. |
Cash, cash equivalents and restricted cash | f) Cash, cash equivalents and restricted cash Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2022 and 2023, there were cash at bank denominated in US dollars amounting to approximately US$11.5 million (RMB80.1 million) and US$18.2 million (RMB129.3 million), respectively, and denominated in RMB amounting to approximately RMB34.8 million and RMB114.1 million, respectively. As of December 31, 2022 and 2023, the Group had approximately RMB113.9 million and RMB124.4 million, cash and cash equivalents held by its PRC subsidiaries and VIE, representing 99.1% and 51.1% of total cash and cash equivalents of the Group, respectively. As of December 31, 2022 and 2023, the Group had RMB5.0 million and RMB5.0 million restricted cash, respectively. Restricted cash primarily represents cash deposits in a regulatory escrow account related to insurance transaction services. Restricted cash is classified into current and non-current assets based on the maturities of term deposits. The Group had no other lien arrangements for the years ended December 31, 2021, 2022 and 2023. |
Short-term investments | g) Short-term investments Short-term investments represent bank deposits with original maturities of more than three months but within one year. As of December 31, 2022 and 2023, the Group had approximately RMB34.8 million and RMB21.5 million bank deposits, respectively. Interest earned is recorded as interest income, amounting to RMB0.1 million, RMB0.08 million and RMB0.16 million, in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2021, 2022 and 2023, respectively. |
Expected credit losses of receivables | h) Expected credit losses of receivables The Group’s accounts receivable and other receivables (included in “prepayments and other current assets”) are within the scope of Accounting Standards Codification (“ASC”) 326. To estimate current expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, any changes in customer collection trends, the credit worthiness of customers, the contractual and customary payment terms that generally range from 30 to 180 days, current economic conditions, and expectation of future economic conditions (external data and macroeconomic factors). Accounts receivable balances are written off (i.e., charged-off against the allowance) when they are determined to be uncollectible after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable is recorded at the invoiced amount and do not bear interest. As of December 31, 2022 and 2023, the Group’s accounts receivable consists primarily of receivables from insurance transaction services customers. The Group recorded current expected credit loss expense of RMB0.5 million, RMB0.02 million and RMB1.2 million for the years ended December 31, 2021, 2022 and 2023, respectively. |
Property, equipment and leasehold improvement, net | i) Property, equipment and leasehold improvement, net Property, equipment and leasehold improvement are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvement Shorter of the Furniture and office equipment 3-5 years Electronics equipment and others 3-6 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and leasehold improvement is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive loss. |
Intangible assets, net | j) Intangible assets, net Intangible assets mainly consist of software, licenses, agency agreements and channel relationship. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Licenses, agency agreements and channel relationship acquired in a business combination were recognized initially at fair value at the date of acquisition. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Software 3-5 years Licenses 10 years Agency agreements 2 years Channel relationship 2 years Licenses comprise insurance brokerage licenses, which has an estimated useful life of 10 years (the “Amortization Period”), which represent the time periods that the Group expects these assets will generate economic benefits to the Group’s business. The licenses have a term of validity of 5 years or longer, and are subject to certain administrative renewal at the relevant government authorities upon expiry. The renewal criteria for licenses are the same as the criteria when applying for these licenses. The Group assesses that it can continue to meet these criteria throughout the Amortization Period and these licenses will be renewed upon expiry. Agency agreements comprise contractual relationship with referral partners, which have an estimated useful life of 2 years. Channel relationship comprises customer relationship with insurance carriers, which have an estimated useful life of 2 years. |
Impairment of long-lived assets | k) Impairment of long-lived assets Long-lived assets or asset group, including intangible assets with finite lives, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for any of the year presented. |
Goodwill | l) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2022 and 2023 were related to its acquisition of Cheche Insurance (previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”) in October 2017 (Note 8). In accordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date (December 31 for the Group) and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business environment, legal factors, financial performances, competition, or events affecting the reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of reporting unit using a discounted cash flow methodology also requires significant judgements, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. Management has determined that the Group represents the lowest level within the entity at which goodwill is monitored for internal management purposes. Starting from January 1, 2020, the Company adopted ASU 2017-04, which simplifies the accounting for goodwill impairment by eliminating Step 2 from the goodwill impairment test, and in accordance with the FASB, pursuant to which the Group has the option to choose whether it will apply a qualitative assessment first and then a quantitative assessment, if necessary, or to apply a quantitative assessment directly. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Based on the impairment assessment, management determined that no impairment loss was recorded for the years ended December 31, 2021, 2022 and 2023. At December 31, 2022 and 2023, goodwill was RMB84.6 million and RMB84.6 million, respectively. |
Warrant | m) Warrant The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is assessed at the end of each reporting period. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the warrants instruments to fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations and comprehensive loss. |
Revenue recognition | n) Revenue recognition Revenue is the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the common course of the Group’s activities and is recorded net of value-added tax (“VAT”). The services to be accounted for mainly include insurance transaction services, SaaS services and other services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract(s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Insurance Transaction Services Income The main source of revenue is insurance transaction services fee directly from (i) insurance carriers who underwrite insurance policies and (ii) insurance intermediaries who directly transact with insurance carriers, both determined based on a percentage of premium paid by the insured. The service fee rate paid by the insurance carriers or insurance intermediaries, shall be based on the terms specified in the service contract with the insurance carriers or with the insurance intermediaries for each insurance policy sold through the Group’s online platform and mobile applications in the PRC. The Group determines that the insurance carrier or insurance intermediary are its customer in these agreements. Insurance transaction services revenue for the commission earned is recognized at a point in time when the Company has fulfilled its performance obligation. This occurs when the signed insurance policy is in place and the premium is collected by the insurance carriers from the insured. SaaS and technical services income The Group provides SaaS services to selected insurance carriers or insurance intermediaries. This cloud-based services allow insurance carriers or insurance intermediaries to use the Group’s self-developed SaaS management system without taking possession of its software. The Group has determined that the insurance carriers or insurance intermediaries as customers and initially records services fee as contract liabilities upon receipt and then recognizes the revenue on a straight-line basis over the service period, which is usually one year. The Group also provides technical services to third-party companies. The Group charges third-party companies service fee for developing software for them. Technical services revenue is recognized based on cost-to-cost input method of measuring progress upon the completion of each service. Other Services The Group provides customer service to third-party companies. The Group satisfies its performance obligation through delivering consulting service to the third-party companies’ customers and receives service fee from the third-party companies. Customer service revenue is recognized on a straight-line basis over the period of the contract when the service is provided, which is usually within 1 year. Contract Balances and Accounts Receivable Contract liabilities primarily consist of customer advances which relates to the payments received for SaaS and technical services in advance of performance under the contract. The increase in contract liabilities over the year presented was a result of the increase in consideration received from the Group’s customers, which was in line with the growth of revenues in SaaS and technical services. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. During the years ended December 31, 2021, 2022 and 2023, the Group recognized revenue amounted to RMB3.3 million, RMB8.7 million and RMB0.9 million, respectively that was included in the corresponding opening contract liabilities balance of RMB3.3 million, RMB8.7 million and RMB0.9 million at December 31, 2020, 2021 and 2022, respectively. During the years ended December 31, 2021, 2022 and 2023, the Group did not have any arrangement where the performance obligations has already been satisfied in the past year but recognized the corresponding revenue in the current year. Accounts receivable mainly represent amounts due from insurance transaction services customers, when the Group has satisfied its performance obligations and has the unconditional right to payment. They are carried at net realizable value. Please see Note 4 for additional information. Practical Expedients The Group has elected to use the following practical expedients as allowed under ASC Topic 606: (i) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. The Group has determined that its contracts generally do not include a significant financing component. (ii) Costs to obtain a contract with a customer were expensed as incurred when the amortization period would have been one year or less. |
Cost of revenue | o) Cost of revenue Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue, which consists primarily of i) cost of referral partners, ii) service fee paid to third-party payment platforms, iii) customer service costs, iv) amortization and depreciation expenses, v) salary and welfare benefits, vi) cloud service fees, and vii) tax and surcharges and others. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. |
Research and development expenses | p) Research and development expenses Research and development expenses mainly consist of salary and welfare benefits and subcontracted development expenses incurred for the development and enhancement to the Company’s online platform including SaaS platform, and mobile applications. |
Selling and marketing expenses | q) Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotional expenses, salary and welfare benefits and share-based compensation expenses to the Group’s sales and marketing personnel. Advertising and promotional expenses consist primarily of costs for the promotion of corporate image, online platform and mobile applications. The Group expenses all advertising and promotional expenses as incurred and classifies them under selling and marketing expenses. |
General and administrative expenses | r) General and administrative expenses General and administrative expenses consist primarily of share-based compensation expenses, salary and welfare benefits, professional service fees, amortization expenses and related expenses for employees involved in general corporate functions, including finance, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses. |
Government grants | s) Government grants Government grants mainly represent subsidies and tax refunds for operating a business in certain jurisdictions and fulfilment of specified tax payment obligations. Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. Deferred government grants included RMB1.1 million, RMB1.4 million and RMB1.4 million for the years ended December 31, 2021, 2022 and 2023 being the unamortized portion of a grant of RMB0.8 million, RMB0.3 million and nil |
Leases | t) Leases The Group determines if an arrangement is a lease and determines the classification of the lease, as either operating or finance, at commencement. The Group has operating leases for office buildings and has no finance leases as of December 31, 2022 and 2023. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at commencement date. As the Group’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at the commencement date, to determine the present value of lease payments. The incremental borrowing rate approximates the rate the Group would pay to borrow in the currency of the lease payments for the weighted-average life of the lease. The operating lease ROU assets also include any lease payments made prior to lease commencement and exclude lease incentives and initial direct costs incurred if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements contain both lease and non-lease components, which are accounted for separately based on their relative standalone price. The Company elect to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease right-of-use (“ROU”) assets or operating lease liabilities. |
Share-based compensation | u) Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares and restricted shares. For share options for the purchase of ordinary shares granted to employee and non-employee determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated statements of operations and comprehensive loss based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected volatility of the fair value of ordinary shares, actual and projected employee share option exercise behavior, risk-free interest rate and expected dividends. The fair value of the ordinary shares is assessed using the income approach, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the service period requirement, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. |
Employee benefits | v) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries, VIE and subsidiaries of VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total balances of employee welfare benefits, including the accruals for estimated underpaid amounts, were approximately RMB48.6 million and RMB56.2 million as of December 31, 2022 and 2023. |
Taxation | w) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of operations and comprehensive loss in the period the change in tax rates or tax laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statements of operations and comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2022 and 2023, respectively. |
Related parties | x) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Net loss per share | y) Net loss per share Net loss per share is computed in accordance with ASC 260, Earnings per Share. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s preferred shares are participating securities because they are entitled to receive dividends or distributions on an as converted basis. For the periods presented herein, the computation of basic loss per share using the two-class method is not applicable as the Group is in a net loss position and net loss is not allocated to other participating securities because in accordance with their contractual terms they are not obligated to share in the losses. Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under treasury stock method. Potential ordinary shares include options to purchase ordinary shares and preferred shares, unless they were anti-dilutive. The computation of diluted net loss per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net loss per share. |
Statutory reserves | z) Statutory reserves In accordance with China’s Company Laws, the Company’s VIE and subsidiaries of VIE in the PRC must make appropriations from their after-tax profit, if any (as determined under the accounting principles generally acceptable in the People’s Republic of China (“PRC GAAP”)), after offsetting accumulated losses from prior years, to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective entity. Appropriation to the discretionary surplus fund is made at the discretion of the respective entity. Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries that are foreign investment enterprises in China have to make appropriations from their after-tax profit (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective entity. Appropriations to the other two reserve funds are at the respective entities’ discretion. The Group has not appropriated any amount to statutory reserves for the years ended December 31, 2021, 2022 and 2023, because the Company’s subsidiary, VIE and subsidiaries of VIE were in the position of accumulated deficit as of December 31, 2022 and 2023. |
Comprehensive loss | aa) Comprehensive loss Comprehensive loss is defined to include all changes in (deficit)/equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Other comprehensive income/(loss), as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Segment reporting | bb) Segment reporting The Group uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making operating decisions, allocating resources and assessing performance as the source for determining the Group’s reportable segments. Management has determined that the Group operates in one segment, as that term is defined by FASB ASC Topic 280, Segment reporting. |
Concentration and risk | cc) Concentration and risk Foreign currency exchange rate risk The Group’s operating transactions are mainly denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes by the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by law to be transacted only through authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other PRC foreign exchange regulatory bodies which require certain supporting documents in order to effect the remittances. As of December 31, 2022 and 2023, the Group’s cash and cash equivalents, and restricted cash denominated in RMB were RMB39.8 million and RMB119.1 million, accounting for 33.2% and 47.9% of the Group’s total cash, cash equivalents and restricted cash, respectively. Credit risk and concentration risk Financial instruments that potentially subject the Group to the concentration of credit risk consist of cash and cash equivalents, restricted cash and accounts receivable. As of December 31, 2022 and 2023, the Group’s cash and cash equivalents, and restricted cash were typically unsecured and highly concentrated in a few major financial institutions located in China, which management consider being of high credit quality and continually monitors the creditworthiness of these financial institutions. Accounts receivable is typically unsecured and is generally derived from revenue earned from the Company’s insurance transaction services business. Concentration of customers and suppliers There was nil nil nil There was nil nil nil |
Recently issued accounting pronouncements | dd) Recently issued accounting pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. Recent accounting pronouncements not yet adopted In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The amendments in this Update are effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Group is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. ASU 2023-06 modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. Many of the amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this update should be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Group is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures.” This standard provides guidance to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The standard is effective for fiscal years beginning after December 15, 2023 and interim periods in fiscal years beginning after December 15, 2024. Early adoption is permitted, and the disclosures in this standard are required to be applied on a retrospective basis. The Group is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This standard requires disaggregated income tax disclosures on the effective tax rate reconciliation and income taxes paid. For public business entities, this standard is effective for annual periods beginning after December 31, 2024. For non-public business entities, this standard is effective for annual periods beginning after December 15, 2025. Early adoption is permitted, and the disclosures in this standard are required to be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. In March 2024, the SEC adopted its rules covering climate-related disclosures which require registrants to provide certain climate-related disclosures in registrants’ SEC filings. The rules require registrants to disclose strategy, governance, risk management, targets and goals, greenhouse gas emissions, and financial statement effects. On April 4, 2024, the SEC voluntarily stayed its final climate rules pending the completion of judicial review thereof by the U.S. Court of Appeals for the Eighth Circuit. The Group is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE | The following sets forth the Company’s consolidated subsidiaries, VIE and subsidiaries of VIE are as follows: Subsidiaries Place and Percentage of Principal activities Cheche Technology Inc. (“CCT”) Cayman Islands, 100% Investment holding Cheche Technology (HK) Limited (“Cheche HK”) Hong Kong, China, 100% Investment holding Cheche Technology (Ningbo) Co., Ltd. (“Cheche Ningbo” or “wholly foreign-owned enterprise” or “WFOE” or “primary beneficiary of the VIE”) Ningbo, China, 100% Technical support and consulting services Baodafang Technology Co., Ltd. (“Baodafang”) Beijing, China, 100% Technology service and SaaS services VIE Place and Percentage of Principal activities Beijing Che Yu Che Technology Co., Ltd. Beijing, China, 100%* Technology service Subsidiaries of VIE Place and Percentage of Principal activities Cheche Insurance Sales & Service Co., Ltd. (“Cheche Insurance”) Guangzhou, China, 100%* Insurance brokerage Huicai Insurance Brokerage Co., Ltd. Beijing, China, 100%* Dormant Cheche Zhixing (Ningbo) Auto Service Co., Ltd. Ningbo, China, 100%* Dormant * The WFOE has 100% beneficial interests in the consolidated VIE (including its subsidiaries). |
Schedule of Consolidated Financial Statements | The following consolidated financial information of the VIE after the elimination of inter-company transactions between the VIE and its subsidiaries as of December 31, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 was included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2022 2023 RMB RMB ASSETS Current assets: Cash and cash equivalents 14,894 86,330 Restricted cash 5,000 - Short-term investment - 226 Accounts receivable, net 397,935 445,941 Prepayments and other current assets 38,784 41,695 Amounts due from intra-Group companies 26,336 4,575 Total current assets 482,949 578,767 Non-current assets: Restricted cash - 5,000 Property, equipment and leasehold improvement, net 1,456 1,221 Intangible assets, net 10,150 8,050 Right-of-use assets 6,955 7,067 Goodwill 84,609 84,609 Total non-current assets 103,170 105,947 TOTAL ASSETS 586,119 684,714 LIABILITIES Current liabilities: Accounts payable 216,318 283,547 Short-term borrowings - 10,000 Contract liabilities 41 626 Salary and welfare benefits payable 52,218 57,878 Tax payable 2,767 624 Amounts due to related party - 55,251 Accrued expenses and other current liabilities 11,545 11,504 Short-term lease liabilities 2,995 2,304 Amounts due to intra-Group companies 938 158,648 Total current liabilities 286,822 580,382 Non-current liabilities: Deferred tax liabilities 2,538 2,013 Long-term lease liabilities 3,731 4,550 Amounts due to related party 59,932 - Deferred revenue 1,432 1,432 Amounts due to intra-Group companies 385,838 244,471 Total non-current liabilities 453,471 252,466 TOTAL LIABILITIES (without recourse to the primary beneficiary) 740,293 832,848 |
Schedule of Operation | For the years ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues - earned from external parties 1,726,333 2,533,902 3,083,306 - earned from intra-Group companies 21,069 27,909 6,682 Total revenues 1,747,402 2,561,811 3,089,988 Cost of revenues and operating expenses - arising from external parties transactions (1,828,619 ) (2,579,575 ) (3,186,349 ) - arising from intra-Group transactions (437 ) - (1,651 ) Total cost of revenues and operating expenses (1,829,056 ) (2,579,575 ) (3,188,000 ) Net loss (71,515 ) (23,589 ) (100,142 ) |
Schedule of Cashflow | For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cash flows from operating activities: Net cash generated from transactions with intra-Group companies 24,000 17,200 35,000 Net cash (provided by)/generated from transactions with external parties (147,000 ) (86,816 ) 108,170 Net cash (used in)/generated from operating activities (123,000 ) (69,616 ) 143,170 Net cash used in transactions with external parties (895 ) (1,025 ) (686 ) Net cash used in investing activities (895 ) (1,025 ) (686 ) Net cash used in transactions with related parties (21,328 ) - - Net cash generated from/(used in) transactions with intra-Group companies 214,109 34,823 (63,485 ) Net cash used in transactions with third-parties (40,685 ) (10,000 ) (7,563 ) Net cash generated from/(used in) financing activities 152,096 24,823 (71,048 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash - 1,074 - Net increase/(decrease) in cash and cash equivalents 28,201 (44,744 ) 71,436 |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies Abstract | |
Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment | Property, equipment and leasehold improvement are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvement Shorter of the Furniture and office equipment 3-5 years Electronics equipment and others 3-6 years |
Schedule of Amortization of Finite-Lived Intangible Assets | Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Software 3-5 years Licenses 10 years Agency agreements 2 years Channel relationship 2 years |
Reverse Recapitalization (Table
Reverse Recapitalization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reverse Capitalization Abstract | |
Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital | Number of CCT’s ordinary shares outstanding at December 31, 2022 432,673,255 CCT’s ordinary shares issued to the Preferred Shareholders (Note 15) 17,942,206 CCT’s ordinary shares outstanding prior to the Reverse Recapitalization 450,615,461 Conversion of CCT’s ordinary shares (1) 33,098,268 Conversion of CCT’s convertible redeemable preferred shares (1) 35,190,468 Conversion of Prime Impact’s Class A ordinary shares (2) 375,193 Conversion of Prime Impact’s Class B ordinary shares (2) 4,341,052 Ordinary shares attributable to conversion 73,004,981 Ordinary shares attributable to Prime Impact Cayman LLC (3) 634,228 Ordinary shares attributable to World Dynamic Limited (3) 1,300,000 Ordinary shares attributable to Goldrock Holdings Limited (3) 500,000 Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions 75,439,209 (1) On the Closing Date, CCT converted its (i) 450,615,461 issued and outstanding ordinary shares; and (ii) 479,099,566 convertible redeemable preferred shares, issued and outstanding immediately prior to the Reverse Recapitalization into 33,098,268 and 35,190,468 Class A ordinary shares of the Company, respectively, based on the conversion ratio of 13.6145:1. (2) On the Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 Class A ordinary shares; and (ii) and 4,341,052 Class B ordinary shares into 4,716,245 Class A ordinary shares of the Company. (3) On September 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global institutional investors in connection with the Business Combination. Pursuant to such agreements, the Company issued 634,228; 1,300,000; and 500,000 Class A ordinary shares to the Sponsor; World Dynamic Limited; and Goldrock Holdings Limited for the consideration of US$10.00 per share, respectively. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net is consisted of the following: December 31, December 31, RMB RMB Accounts receivable, gross: 402,694 468,296 Less: allowance for current expected credit losses (1,027 ) (2,230 ) Accounts receivable, net 401,667 466,066 |
Schedule of Allowance for Current Expected Credit Losses | The following table summarizes the movement of the Group’s allowance for current expected credit losses: December 31, December 31, RMB RMB Balance at the beginning of the year (1,004 ) (1,027 ) Additions (23 ) (1,203 ) Write-offs - - Balance at the end of the year (1,027 ) (2,230 ) |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Current Assets [Abstract] | |
Schedule of Prepayments and Other Current Assets | The following is a summary of prepayments and other current assets: December 31, December 31, RMB RMB Deductible Value Added Tax (“VAT”) 34,215 39,914 Service fees (i) 4,057 4,504 Rental and other deposits 2,603 2,449 Staff advance 1,292 230 Rental expense for other leases with period less than one year 695 630 Others 1,550 1,594 Balance at the end of the year 44,412 49,321 (i) Service fees mainly consist of prepayment of cloud server hosting fees, directors and officers’ insurance fees and others. |
Property, Equipment and Lease_2
Property, Equipment and Leasehold Improvement, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, equipment and leasehold improvement, net [Abstract] | |
Schedule of Property, Equipment and Leasehold Improvement, Net | The following is a summary of property, equipment and leasehold improvement, net: December 31, December 31, RMB RMB Leasehold improvement 3,621 3,697 Furniture and office equipment 1,386 1,569 Electronic equipment and others 4,246 4,179 Total property, equipment and leasehold improvement 9,253 9,445 Less: accumulated depreciation (7,082 ) (7,778 ) Property, equipment and leasehold improvement, net 2,171 1,667 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net: | The following table summarizes the Group’s intangible assets, net: December 31, December 31, RMB RMB Gross carrying amount Software 916 916 Licenses 21,000 21,000 Agency agreements 18,000 18,000 Channel relationship 19,000 19,000 Total intangible assets 58,916 58,916 Less: accumulated amortization Software (916 ) (916 ) Licenses (10,850 ) (12,950 ) Agency agreements (18,000 ) (18,000 ) Channel relationship (19,000 ) (19,000 ) Total intangible assets, net 10,150 8,050 |
Schedule of Estimated Amortization Expenses | The estimated amortization expenses for each of the following five years are as follows: December 31, RMB 2024 2,100 2025 2,100 2026 2,100 2027 1,750 2028 - Total 8,050 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill and Accumulated Impairment Losses | The gross amount of goodwill and accumulated impairment losses as of December 31, 2022 and 2023 are as follows: December 31, December 31, RMB RMB Gross 84,609 84,609 Accumulated impairment loss - - Goodwill, net 84,609 84,609 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Aggregate Right of Use Assets and Related Lease Liabilities | The following represents the aggregate right-of-use assets and related lease liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Operating lease right-of-use assets 14,723 10,249 Short-term operating lease liabilities (7,676 ) (3,951 ) Long-term operating lease liabilities (6,226 ) (5,398 ) Total operating leased liabilities (13,902 ) (9,349 ) |
Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of December 31, 2021, 2022 and 2023 were as follows: December 31, December 31, December 31, RMB RMB RMB Weighted average lease term: Operating leases 3.45 2.52 3.02 Weighted average discount rate: Operating leases 5.24 % 4.08 % 3.91 % |
Schedule of Lease Expenses | The components of lease expenses for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Operating lease cost 11,984 9,013 8,880 Cost of other leases with period less than one year 1,317 1,949 1,194 Total 13,301 10,962 10,074 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 11,512 5,065 8,984 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 16,305 8,787 5,602 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities at December 31, 2023: December 31, RMB 2024 4,261 2025 2,867 2026 1,325 2027 1,432 Total remaining undiscounted lease payments 9,885 Less: interest (536 ) Total present value of operating lease liabilities 9,349 Less: short-term operating lease liabilities (3,951 ) Long-term operating lease liabilities 5,398 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Schedule of Outstanding Short-Term Borrowings | The following table summarizes the Group’s outstanding short-term borrowings as of December 31, 2022 and 2023, respectively: December 31, December 31, RMB RMB Bank borrowings - 20,000 (i) The Group was granted a RMB10.0 million credit facility that expired on April 22, 2021 to support its operations. The credit facility was guaranteed by Cheche Insurance and Mr. Lei Zhang (Note 22). There are no financial covenants for the credit facility. Under the credit facility, the Group drew down RMB2.6 million and RMB7.4 million on May 25, 2020 and June 12, 2020, respectively. The interest is payable on a monthly basis and the principal will be due upon maturity. These loans were eventually repaid on May 25, 2021 and June 15, 2021, respectively. Bank of Nanjing did not impose any penalty for these late repayments. (ii) The Group was granted a RMB10.0 million credit facility that expires on June 4, 2022 to support its operations. The credit facility was guaranteed by a third-party state-owned financial institution named Beijing Small and Medium Entity Financing Re-guarantee Co., Ltd. The Group paid guarantee fee and review fee for the guarantee service based on certain percentage of the related amount of loan and credit facility, respectively. There are no financial covenants for the credit facility. The interest is payable on a quarterly basis and the principal will be due upon maturity. Under the credit facility, the Group drew down RMB5.0 million and RMB5.0 million on June 11, 2020 and November 2, 2020, respectively. These two loans were fully repaid on May 27, 2021 and June 2, 2021. Afterwards, the Group drew down RMB5.0 million and RMB5.0 million on May 28, 2021 and June 3, 2021, respectively. These two loans were fully repaid on May 27, 2022 and June 2, 2022, respectively. Afterwards, the Group drew down RMB10.0 million on June 30, 2022, which was fully repaid on July 15, 2022. (iii) On June 23, 2022, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 22, 2024 to support its operations. Under this credit facility, the Group drew down RMB3.0 million, RMB4.0 million and RMB3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB4.0 million and RMB3.0 million were repaid on February 7, 2024 and April 15, 2024, respectively. There are no financial covenants for the credit facility. (iv) On June 14, 2023, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 13, 2025 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB4.0 million and RMB6.0 million on June 29, 2023. There are no financial covenants for the credit facility. |
Schedule of Bank Borrowings | Bank borrowings Principal Interest rate December 31, Maturity date amount per annum 2022 2023 Bank of Nanjing (i) May 22, 2021 2,620 5.22 % - - Bank of Nanjing (i) June 11, 2021 7,380 7.63 % - - Bank of Beijing (ii) May 27, 2022 5,000 4.55 % - - Bank of Beijing (ii) June 2, 2022 5,000 4.55 % - - Bank of Beijing (ii) June 29, 2023 10,000 3.70 % - - Bank of Beijing (iii) Feb 13,2024 3,000 3.65 % - 3,000 Bank of Beijing (iii) Apr 13, 2024 4,000 3.65 % - 4,000 Bank of Beijing (iii) June 13, 2024 3,000 3.65 % - 3,000 Bank of Beijing (iv) June 28, 2024 10000 3.55 % - 10,000 Total short-term borrowings - 20,000 (i) The Group was granted a RMB10.0 million credit facility that expired on April 22, 2021 to support its operations. The credit facility was guaranteed by Cheche Insurance and Mr. Lei Zhang (Note 22). There are no financial covenants for the credit facility. Under the credit facility, the Group drew down RMB2.6 million and RMB7.4 million on May 25, 2020 and June 12, 2020, respectively. The interest is payable on a monthly basis and the principal will be due upon maturity. These loans were eventually repaid on May 25, 2021 and June 15, 2021, respectively. Bank of Nanjing did not impose any penalty for these late repayments. (ii) The Group was granted a RMB10.0 million credit facility that expires on June 4, 2022 to support its operations. The credit facility was guaranteed by a third-party state-owned financial institution named Beijing Small and Medium Entity Financing Re-guarantee Co., Ltd. The Group paid guarantee fee and review fee for the guarantee service based on certain percentage of the related amount of loan and credit facility, respectively. There are no financial covenants for the credit facility. The interest is payable on a quarterly basis and the principal will be due upon maturity. Under the credit facility, the Group drew down RMB5.0 million and RMB5.0 million on June 11, 2020 and November 2, 2020, respectively. These two loans were fully repaid on May 27, 2021 and June 2, 2021. Afterwards, the Group drew down RMB5.0 million and RMB5.0 million on May 28, 2021 and June 3, 2021, respectively. These two loans were fully repaid on May 27, 2022 and June 2, 2022, respectively. Afterwards, the Group drew down RMB10.0 million on June 30, 2022, which was fully repaid on July 15, 2022. (iii) On June 23, 2022, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 22, 2024 to support its operations. Under this credit facility, the Group drew down RMB3.0 million, RMB4.0 million and RMB3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB4.0 million and RMB3.0 million were repaid on February 7, 2024 and April 15, 2024, respectively. There are no financial covenants for the credit facility. (iv) On June 14, 2023, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 13, 2025 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB4.0 million and RMB6.0 million on June 29, 2023. There are no financial covenants for the credit facility. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxation Abstract | |
Schedule of Income Tax Expense | The components of income before income taxes are as follows (in thousands): For the years ended December 31, 2021 2022 2023 RMB RMB RMB Loss before income tax expense Loss from Chinese mainland operations (132,584 ) (74,843 ) (149,818 ) Loss from non-Chinese mainland operations (14,399 ) (16,700 ) (10,135 ) Total Loss before income tax expense from continuing operations (146,983 ) (91,543 ) (159,953 ) Income tax benefit applicable to Chinese mainland operations Deferred tax 525 525 525 Subtotal income tax benefit applicable to Chinese mainland operations 525 525 525 Non-Chinese mainland withholding tax expense (3 ) (4 ) (162 ) Total income tax benefit from continuing operations 522 521 363 |
Schedule of Reconciliation Between the Income Tax Credit | Reconciliation between the income tax credit computed by applying the Enterprise Income Tax (“EIT”) rate to loss before income taxes and actual provision were as follows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Loss before income tax (146,983 ) (91,543 ) (159,953 ) Tax benefit at EIT tax rate of 25% (36,746 ) (22,886 ) (39,989 ) Effect of different tax rates applicable to different subsidiaries of the Group (3,651 ) 241 18,589 Effect of changes in tax rates - - 8,158 Expired operating loss - - 14,966 Permanent differences (931 ) (2,822 ) 13,722 Changes in deferred tax assets valuation allowance 40,806 24,946 (15,809 ) Income tax credit (522 ) (521 ) (363 ) |
Schedule of Operating Tax Loss Carry Forwards | As of December 31, 2023, certain entities of the Group had net operating tax loss carry forwards as follows: For the year ended 2023 RMB Loss expiring in 2024 125,177 Loss expiring in 2025 4,538 Loss expiring in 2026 137,657 Loss expiring in 2027 61,233 Loss expiring in 2028 2,473 Loss expiring in 2029 356 Loss expiring in 2030 85,329 Loss expiring in 2031 51,726 Loss expiring in 2032 29,854 Loss expiring in 2033 112,537 610,880 |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Deferred tax assets: Net accumulated losses carry forwards 140,950 124,740 Accrued payroll and other expenses 7,570 9,480 Advertising expenses in excess of deduction limit 9,841 6,500 Fair value changes of amounts due to related party 3,108 4,237 Accrued expenses 400 427 Deferred revenue 358 358 Others 1,006 1,682 Deferred tax assets 163,233 147,424 Less: valuation allowance (163,233 ) (147,424 ) Deferred tax assets, net - - Deferred tax liabilities: Identifiable intangible assets arising from acquisition of Cheche Insurance (Note 7) (2,538 ) (2,013 ) Deferred tax liabilities (2,538 ) (2,013 ) |
Schedule of Valuation Allowances the Related Deferred Tax Assets | The Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets of certain entities of the Group is more likely than not to be realized. Consequently, the Group has provided full valuation allowances on the related deferred tax assets. The following table sets forth the movement of valuation allowance for the years presented: December 31, December 31, December 31, RMB RMB RMB Balance at the beginning of the year (97,481 ) (138,287 ) (163,233 ) (Additions)/Reversals (40,806 ) (24,946 ) 15,809 Balance at end of the year (138,287 ) (163,233 ) (147,424 ) |
Tax Payable (Tables)
Tax Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tax Payable [Abstract] | |
Schedule of Tax Payable | The following is a summary of tax payable as of December 31, 2022 and 2023: December 31, December 31, RMB RMB VAT payables 2,088 43 Individual income tax payables 815 770 Stamp duty payables 66 - Construction tax payables 25 52 Educational development payables 50 37 Others 34 48 Total 3,078 950 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following is a summary of accrued expenses and other current liabilities as of December 31, 2022 and 2023: December 31, December 31, RMB RMB Professional service fees 31,899 16,490 Refund liability 6,632 7,703 Accrued expenses 544 789 Payables to third-party financial institutions (i) - - Others 1,813 777 Total 40,888 25,759 (i) The Group entered into factoring agreements with third-party financial institutions in 2020 whereby the financial institutions would settle the Group’s accounts payable directly after the Group factored its accounts receivable with recourse to these financial institutions. The Group’s consolidated statements of cash flows has reflected an operating cash outflow in changes in “Accrued expenses and other current liabilities” and financing cash inflow related to this affected accounts payable balance in “Cash receipt of the debt proceeds”. A financing cash outflow was reflected upon payment to the financial institutions and settlement of the obligation in “Cash payment of the debt proceeds”. As of December 31, 2021, the Group has fully settled this payables to the financial institutions. |
Preferred Shares (Tables)
Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Preferred Shares [Abstract] | |
Schedule of Preferred Shares Activities | The following table summarizes the issuances of Preferred Shares by CCT: As of December 31, 2022 Shares Shares Issue Redemption Value Liquidation Value US$ US$ Series Pre-A 4,429,111 4,429,111 RMB 5.45 19,752 19,965 Series A 9,181,406 9,181,406 RMB 5.45 40,853 40,886 Series B 8,033,732 8,033,732 RMB 21.78 49,709 52,721 Series C 1,955,000 1,955,000 US$ 8.58 17,616 19,916 Series D1 399,496 399,496 US$ 8.85 3,653 4,071 Series D2 765,057 765,057 US$ 8.85 6,996 7,795 Series D3 10,426,666 10,426,666 US$ 8.85 94,523 106,238 35,190,468 35,190,468 233,102 251,592 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Preferred Shares Activities | The Group’s preferred shares activities for the years ended December 31, 2021, 2022 and 2023, respectively, are summarized below: Balance as of Issuance of Accretions to Preferred Re-designation from Balance as of Series Pre-A Preferred shares Number of shares - - - 4,429,111 4,429,111 Amount - - (44,347 ) 165,468 121,121 Series A Preferred shares - Number of shares 9,181,406 - - - 9,181,406 Amount 314,292 - (43,415 ) - 270,877 Series B Preferred shares Number of shares 8,033,732 - - - 8,033,732 Amount 330,623 - (54,873 ) - 275,750 Series C Preferred shares Number of shares 2,027,306 1,955,000 - - 3,982,306 Amount 140,976 97,850 20,198 - 259,024 Series D1 Preferred shares Number of shares - 399,496 - - 399,496 Amount - 19,400 1,052 - 20,452 Series D2 Preferred shares Number of shares - 765,057 - - 765,057 Amount - 33,034 1,958 - 34,992 Series D3 Preferred shares Number of shares - 10,426,666 - - 10,426,666 Amount - 502,963 17,960 - 520,923 Total Number of shares 19,242,444 13,546,219 - 4,429,111 37,217,774 Total amount 785,891 653,247 (101,467 ) 165,468 1,503,139 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Balance as of Accretions to Preferred Redemption of Preferred Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - - 4,429,111 Amount 121,121 30,182 - 151,303 Series A Preferred shares Number of shares 9,181,406 - - 9,181,406 Amount 270,877 62,920 - 333,797 Series B Preferred shares Number of shares 8,033,732 - - 8,033,732 Amount 275,750 44,286 - 320,036 Series C Preferred shares Number of shares 3,982,306 - (2,027,306 ) 1,955,000 Amount 259,024 (11,139 ) (132,529 ) 115,356 Series D1 Preferred shares Number of shares 399,496 - - 399,496 Amount 20,452 2,187 - 22,639 Series D2 Preferred shares Number of shares 765,057 - - 765,057 Amount 34,992 4,152 - 39,144 Series D3 Preferred shares Number of shares 10,426,666 - - 10,426,666 Amount 520,923 55,683 - 576,606 Total Number of shares* 37,217,774 - (2,027,306 ) 35,190,468 Total amount 1,503,139 188,271 (132,529 ) 1,558,881 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Balance as of Accretions to Preferred Transfer Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - (4,429,111 ) - Amount 151,303 149,858 (301,161 ) - Series A Preferred shares Number of shares 9,181,406 - (9,181,406 ) - Amount 333,797 311,290 (645,087 ) - Series B Preferred shares Number of shares 8,033,732 - (8,033,732 ) - Amount 320,036 239,317 (559,353 ) - Series C Preferred shares Number of shares 1,955,000 - (1,955,000 ) - Amount 115,356 9,144 (124,500 ) - Series D1 Preferred shares Number of shares 399,496 - (399,496 ) - Amount 22,639 1,853 (24,492 ) - Series D2 Preferred shares Number of shares 765,057 - (765,057 ) - Amount 39,144 3,519 (42,663 ) - Series D3 Preferred shares Number of shares 10,426,666 - (10,426,666 ) - Amount 576,606 47,188 (623,794 ) - Total Number of shares* 35,190,468 - (35,190,468 ) - Total amount 1,558,881 762,169 (2,321,050 ) - |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of Key Revenues Streams | Key revenues streams are as below: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Insurance transaction services income 1,699,433 2,617,185 3,275,182 SaaS and technical service income 30,435 61,863 25,051 Others 5,536 11 1,185 Total 1,735,404 2,679,059 3,301,418 |
Cost of Revenues (Tables)
Cost of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cost of Revenues [Abstract] | |
Schedule of Cost of Revenues | The following table presents the Group’s cost of revenues for the years ended December 31, 2021, 2022 and 2023: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Cost of referral partners 1,581,153 2,424,579 3,017,871 Service fee paid to third-party payment platforms 62,019 104,627 129,453 Customer service costs 4,428 - - Amortization and depreciation 2,119 2,391 2,100 Salary and welfare benefits 2,074 2,070 7,790 Cloud service fees 1,764 1,838 1,525 Tax and surcharges and others 1,035 1,241 2,454 Total 1,654,592 2,536,746 3,161,193 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Employee Welfare Benefits Expenses | The following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021* 2022* 2023 RMB RMB RMB Contributions to medical and pension schemes 17,143 20,842 21,095 Other employee benefits 5,857 7,227 6,726 Total 23,000 28,069 27,821 * The amounts of “Contributions to medical and pension schemes” and “Other employee benefits” for the years ended December 31, 2021 and 2022 have been revised to correct for a formula error in the preparation of this disclosure. The errors in 2021 and 2022 were disclosure only and did not have any impact to the previously reported consolidated results of operations, financial position, or cash flows. For the years ended 2021 2022 As Adjustment As As Adjustment As RMB RMB Contributions to medical and pension schemes 8,612 8,531 17,143 10,376 10,466 20,842 Other employee benefits 1,452 4,405 5,857 1,990 5,237 7,227 Total 10,064 12,936 23,000 12,366 15,703 28,069 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation [Abstract] | |
Schedule of Option Pricing Model and Adopted Fair Value Per Share | The Group uses binomial option pricing model and adopted fair value per share of ordinary share to determine fair value of the share-based awards. The estimated fair value of each option or each restricted share granted is estimated on the date of grant using the binomial option-pricing model or fair value per share of ordinary share with the following assumptions: For the years ended December 31, Options* 2021 2022 2023 Fair value per share (US$) 3.81-5.58 * 6.33-6.37 Discount rate (after tax) 16.50%-18.00% * Not applicable Risk-free interest rate 1.66% * 3.88% Expected volatility 42.05%-54.06% * 64.2% Contractual term (in years) 10 * 10 Discount for lack of marketability (“DLOM”) 7.00%-12.00% * Not applicable * There were no grants for options for the year ended December 31, 2022. For the years ended December 31, Restricted shares 2021 2022 2023 (prior to the Business Combination) Fair value per share (US$) 3.81-5.58 3.81-4.08 4.90-5.45 Discount rate (after tax) 16.50%-18.00% 16.5% 15.0%-16.0% Discount for lack of marketability (“DLOM”) 7.00%-12.00% 10% 5%-10% * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Stock Options Activities | The following table presents a summary of the Company’s stock options activities for the years ended December 31, 2021, 2022 and 2023. Number of Options Outstanding* Weighted Weighted average Aggregated Employees Consultant Total price contractual life intrinsic value (in thousands) (in thousands) (in thousands) US$ (in years) RMB in thousands Outstanding at January 1, 2021 8,562 331 8,893 2.0163 6.76 65,574 Granted 547 - 547 8.0748 - - Forfeited (1,433 ) - (1,433 ) 5.3355 - - Outstanding at December 31, 2021 7,676 331 8,007 1.8362 5.69 65,574 Exercisable as of December 31, 2021 7,676 331 8,007 1.8362 5.69 65,574 Outstanding at January 1, 2022 7,676 331 8,007 1.8362 5.69 65,574 Forfeited (58 ) - (58 ) 8.0885 - - Outstanding at December 31, 2022 7,618 331 7,949 1.7905 4.67 65,572 Exercisable as of December 31, 2022 7,618 331 7,949 1.7905 4.67 65,572 Outstanding at January 1, 2023 7,618 331 7,949 1.7905 4.67 65,572 Replacement (7,545 ) (331 ) (7,876 ) 1.3119 - - Granted 528 - 528 0.1000 - - Forfeited (28 ) - (28 ) 8.1954 - - Outstanding at December 31, 2023 573 - 573 0.6675 9.73 23,775 Exercisable as of December 31, 2023 295 - 295 1.1978 9.48 11,367 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Restricted Share Activities | The following table sets forth the summary of restricted share activities for the years ended December 31, 2021, 2022 and 2023: Number of Restricted Weighted-Average Grant Date Fair Value (in thousands) (US$) Unvested as of January 1, 2021 546 4.3444 Awarded 997 5.0346 Vested (340 ) 4.5173 Forfeited (3 ) 4.6634 Outstanding at December 31, 2021 1,200 4.8681 Unvested as of January 1, 2022 1,200 4.8681 Awarded 124 3.9252 Vested (498 ) 4.7458 Forfeited (40 ) 3.9504 Outstanding at December 31, 2022 786 4.8435 Unvested as of January 1, 2023 786 4.8435 Replacement 7,876 4.9821 Awarded 703 6.4017 Vested (8,938 ) 5.0743 Forfeited (97 ) 5.5168 Outstanding at December 31, 2023 330 5.0233 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2021, 2022 and 2023: For the years ended December 31, 2021 2022 2023 Numerator: Net loss (146,461 ) (91,022 ) (159,590 ) Less: accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Net loss attributable to Cheche’s ordinary shareholders (44,994 ) (279,293 ) (921,759 ) Denominator: Weighted average number of ordinary shares outstanding, basic 33,831,133 31,780,394 45,415,205 Weighted average number of ordinary shares outstanding, diluted* 33,831,133 31,780,394 45,415,205 Basic net loss per share attributable to Cheche’s ordinary shareholders (1.33 ) (8.79 ) (20.30 ) Diluted net loss per share attributable to Cheche’s ordinary shareholders (1.33 ) (8.79 ) (20.30 ) * For the years ended December 31, 2021, 2022 and 2023, the Company had potential ordinary shares, including preferred shares, restricted shares and share options. On a weighted average basis, 28,672,636, 35,185,538 and 24,777,946 preferred shares, 941,263, 1,032,167 and 523,097 restricted shares, and 8,202,538, 7,975,942 and 822,952 share options were excluded from the computation of diluted net loss per ordinary share because including them would have had an anti-dilutive effect for the years ended December 31, 2021, 2022 and 2023, respectively. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties of the Group and their Relationships | The table below sets major related parties of the Group and their relationships with the Group: Entity or individual name Relationship with the Group Mr. Lei Zhang Founder, Chairman of the Board of Directors and CEO Fanhua Group Shareholder of the Company (a) The related party transactions entered into during the years ended December 31, 2021, 2022 and 2023 were as follows: |
Schedule of Related Party Transaction | The related party transactions entered into during the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, Significant transactions with related parties 2021 2022 2023 RMB RMB RMB Repayment of borrowings from related party Mr. Lei Zhang (i) (15,000 ) - - Fanhua Group (ii) (13,000 ) - (12,610 ) (b) The outstanding balance due to related parties as of December 31, 2022 and 2023 were as follows: As of December 31, Balances with related parties 2022 2023 RMB RMB Amounts due to related parties Fanhua Group 59,932 55,251 (i) For the years ended December 31, 2021, the Group was granted an RMB10.0 million credit facility from Bank of Nanjing that expired on April 22, 2021 to support its operations, which was guaranteed by Cheche Insurance and Mr. Lei Zhang. Please see Note 10(1) for additional details. (ii) Corporate borrowings from Fanhua Group |
Schedule of Estimate the Fair Value of the Corporate Borrowings | The Group utilized the following assumptions to estimate the fair value of the Corporate borrowings: As of December 31, 2021 2022 2023 Discount rate 15.01 % 12.70 % 11.87 % The movement of Corporate borrowings from Fanhua Group is as follows: |
Schedule of Corporate Borrowings | The movement of Corporate borrowings from Fanhua Group is as follows: Corporate Borrowings RMB Balance as of January 1, 2021 56,353 Change in fair value 11,242 Change in other comprehensive income (1,590 ) Repayment of amounts due to related party (13,000 ) Balance as of December 31, 2021 53,005 Balance as of January 1, 2022 53,005 Change in fair value 6,451 Change in other comprehensive income 476 Balance as of December 31, 2022 59,932 Balance as of January 1, 2023 59,932 Change in fair value 7,524 Change in other comprehensive income 405 Repayment of amounts due to related party (12,610 ) Balance as of December 31, 2023 55,251 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement [Abstract] | |
Schedule of Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes the Company’s financial liabilities measured and recorded at fair value on recurring basis as of December 31, 2022 and 2023: As of December 31, 2022 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant - - 1,045 1,045 Corporate borrowings from Fanhua Group - - 59,932 59,932 As of December 31, 2023 Active Market Observable Input Unobservable Input Total RMB RMB RMB RMB Liabilities: Warrant 5,419 - 850 6,269 Corporate borrowings from Fanhua Group - - 55,251 55,251 |
Additional Information___Cond_2
Additional Information — Condensed Financial Statements of the Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information — Condensed Financial Statements of the Parent Company (Tables) [Line Items] | |
Schedule of Condensed Statements of Operations and Comprehensive Loss | Condensed statements of operations and comprehensive loss: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Operating expenses: General and administrative expenses (15,135 ) (13,787 ) (14,272 ) Total operating expense (15,135 ) (13,787 ) (14,272 ) Other expense Interest income from VIE 971 1,692 1,790 Share of loss of subsidiaries, VIE and subsidiaries of VIE (131,142 ) (77,878 ) (149,974 ) Others, net (1,152 ) (1,049 ) 3,024 Loss before income tax (146,458 ) (91,022 ) (159,432 ) Income tax expense (3 ) - (158 ) Net loss (146,461 ) (91,022 ) (159,590 ) Accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Net loss attributable to Cheche’s ordinary shareholders (44,994 ) (279,293 ) (921,759 ) Net loss (146,461 ) (91,022 ) (159,590 ) Other comprehensive loss: Foreign currency translation adjustment, net of nil tax (10,278 ) 8,207 1,621 Fair value changes of amounts due to related party due to own credit risk 1,590 (476 ) (405 ) Total comprehensive loss (155,149 ) (83,291 ) (158,374 ) Accretions to preferred shares redemption value 101,467 (188,271 ) (762,169 ) Total comprehensive loss to Cheche’s ordinary shareholders (53,682 ) (271,562 ) (920,543 ) |
Schedule of Condensed Balance Sheets | Condensed balance sheets: As of December 31, As of December 31, 2022 2023 RMB RMB Current assets: Cash and cash equivalents 1,008 119,033 Amount due from the subsidiaries of the Group - 1,520 Prepayments and other current assets 287 1,118 Total current assets 1,295 121,671 Non-current assets: Other non-current assets - 4,149 Amounts due from the subsidiaries of the Group 639,110 638,290 Total non-current assets 639,110 642,439 TOTAL ASSETS 640,405 764,110 Current liabilities: Accrued expenses and other current liabilities 27,899 11,310 Warrant 1,045 850 Deficit in subsidiaries, VIE and subsidiaries of VIE 313,123 365,377 Amounts due to the subsidiaries of the Group - 2,972 Total current liabilities 342,067 380,509 Non-current liabilities: Warrant - 5,419 Total non-current liabilities - 5,419 Total liabilities 342,067 385,928 Mezzanine equity Convertible redeemable preferred shares 1,558,881 - Total mezzanine equity: 1,558,881 - Shareholders’ (deficit)/equity: Ordinary shares * 2 5 Treasury stock* (1,025 ) (1,025 ) Additional paid-in capital* 25 2,491,873 Accumulated deficit (1,259,479 ) (2,113,821 ) Accumulated other comprehensive loss (66 ) 1,150 Total shareholders’ (deficit)/equity (1,260,543 ) 378,182 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY 640,405 764,110 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Condensed Statements of Cash Flows | Condensed statements of cash flows: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Net cash used in operating activities (22,275 ) (6,352 ) (20,885 ) Cash flows from investing activities Cash paid for investments in subsidiaries, VIE and subsidiaries of VIE (304,759 ) (172,030 ) - Placement of short-term investments (63,757 ) - - Cash received from maturities of short-term investments - 63,757 - Net cash used in investing activities (368,516 ) (108,273 ) - Cash flows from financing activities Proceeds from issuance of ordinary shares 633,847 - - Proceeds from PIPE financing – Prime Impact Cayman LLC - - 8,609 Proceeds from PIPE financing – World Dynamic Limited - - 93,436 Proceeds from PIPE financing – Goldrock Holdings Limited - - 35,863 Cash payment for redemption of Series C convertible redeemable preferred shares - (137,202 ) - Cash received from long-term borrowings from a third party 19,127 - - Cash repayments of long-term borrowings to a third party (7,287 ) (11,840 ) - Net cash generated from/(used in) financing activities 645,687 (149,042 ) 137,908 Effect of exchange rate changes on cash and cash equivalents and restricted cash (2,958 ) 11,725 1,002 Net increase/(decrease) in cash and cash equivalents and restricted cash 251,938 (251,942 ) 118,025 Cash and cash equivalents at beginning of the year 1,012 252,950 1,008 Cash and cash equivalents and restricted cash at end of the year 252,950 1,008 119,033 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||||||||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Organization and Principal Activities [Line Items] | |||||||||
Beneficial interests | 100% | 100% | |||||||
VIE percentage | 100% | 100% | |||||||
Statutory reserves (in Dollars) | |||||||||
Percentage of equity interests | 14.24% | 14.24% | |||||||
Net loss | ¥ | ¥ (159,590) | ¥ (91,022) | ¥ (146,461) | ||||||
Net cash used in operating activities | ¥ | (26,950) | (158,861) | ¥ (187,594) | ||||||
Accumulated deficit | ¥ | ¥ (2,113,821) | (1,259,479) | |||||||
Gross proceeds | ¥ 137,900 | $ 19.2 | |||||||
Additional Paid-in Capital [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
VIE obligations (in Dollars) | $ 65.3 | $ 65.3 | |||||||
Net loss | ¥ | |||||||||
PIPE financing from Prime Impact Cayman LLC [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Gross proceeds | 1.2 | ||||||||
World Dynamic Limited [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Gross proceeds | 13 | ||||||||
Goldrock Holdings Limited [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Gross proceeds | $ 5 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE | 12 Months Ended | |
Dec. 31, 2023 | ||
Cheche Technology Inc. (“CCT”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Cayman Islands, 2018 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Investment holding | |
Cheche Technology (HK) Limited (“Cheche HK”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Hong Kong, China, 2018 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Investment holding | |
Cheche Technology (Ningbo) Co., Ltd. (“Cheche Ningbo” or “wholly foreign-owned enterprise” or “WFOE” or “primary beneficiary of the VIE”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Ningbo, China, 2018 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Technical support and consulting services | |
Baodafang Technology Co., Ltd. (“Baodafang”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Beijing, China, 2020 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Technology service and SaaS services | |
Beijing Che Yu Che Technology Co., Ltd. (“Beijing Cheche”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Beijing, China, 2014 | |
Percentage of direct or indirect economic ownership | 100% | [1] |
Principal activities | Technology service | |
Cheche Insurance Sales & Service Co., Ltd. (“Cheche Insurance”) [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Guangzhou, China, 2017 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Insurance brokerage | |
Huicai Insurance Brokerage Co., Ltd. [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Beijing, China, 2016 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Dormant | |
Cheche Zhixing (Ningbo) Auto Service Co., Ltd. [Member] | ||
Schedule of Company’s Consolidated Subsidiaries, VIE and Subsidiaries of VIE [Line Items] | ||
Place and year of incorporation | Ningbo, China, 2019 | |
Percentage of direct or indirect economic ownership | 100% | |
Principal activities | Dormant | |
[1]The WFOE has 100% beneficial interests in the consolidated VIE (including its subsidiaries). |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Consolidated Financial Statements - VIE and subsidiaries [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | ¥ 86,330 | ¥ 14,894 |
Restricted cash | 5,000 | |
Short-term investment | 226 | |
Accounts receivable, net | 445,941 | 397,935 |
Prepayments and other current assets | 41,695 | 38,784 |
Amounts due from intra-Group companies | 4,575 | 26,336 |
Total current assets | 578,767 | 482,949 |
Non-current assets: | ||
Restricted cash | 5,000 | |
Property, equipment and leasehold improvement, net | 1,221 | 1,456 |
Intangible assets, net | 8,050 | 10,150 |
Right-of-use assets | 7,067 | 6,955 |
Goodwill | 84,609 | 84,609 |
Total non-current assets | 105,947 | 103,170 |
TOTAL ASSETS | 684,714 | 586,119 |
Current liabilities: | ||
Accounts payable | 283,547 | 216,318 |
Short-term borrowings | 10,000 | |
Contract liabilities | 626 | 41 |
Salary and welfare benefits payable | 57,878 | 52,218 |
Tax payable | 624 | 2,767 |
Accrued expenses and other current liabilities | 11,504 | 11,545 |
Short-term lease liabilities | 2,304 | 2,995 |
Amounts due to intra-Group companies | 158,648 | 938 |
Total current liabilities | 580,382 | 286,822 |
Non-current liabilities: | ||
Deferred tax liabilities | 2,013 | 2,538 |
Long-term lease liabilities | 4,550 | 3,731 |
Deferred revenue | 1,432 | 1,432 |
Amounts due to intra-Group companies | 244,471 | 385,838 |
Total non-current liabilities | 252,466 | 453,471 |
TOTAL LIABILITIES (without recourse to the primary beneficiary) | 832,848 | 740,293 |
Related Party [Member] | ||
Current liabilities: | ||
Amounts due to related party | 55,251 | |
Non-current liabilities: | ||
Amounts due to related party | ¥ 59,932 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of Operation - VIE and subsidiaries [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net revenues | |||
Total revenues | ¥ 3,089,988 | ¥ 2,561,811 | ¥ 1,747,402 |
Cost of revenues and operating expenses | |||
Total cost of revenues and operating expenses | (3,188,000) | (2,579,575) | (1,829,056) |
Net loss | (100,142) | (23,589) | (71,515) |
External Parties [Member] | |||
Net revenues | |||
Total revenues | 3,083,306 | 2,533,902 | 1,726,333 |
Intra-Group Companies [Member] | |||
Net revenues | |||
Total revenues | 6,682 | 27,909 | 21,069 |
External Parties Transactions [Member] | |||
Cost of revenues and operating expenses | |||
Total cost of revenues and operating expenses | (3,186,349) | (2,579,575) | (1,828,619) |
Intra-Group Transactions [Member] | |||
Cost of revenues and operating expenses | |||
Total cost of revenues and operating expenses | ¥ (1,651) | ¥ (437) |
Organization and Principal Ac_7
Organization and Principal Activities (Details) - Schedule of Cashflow - VIE and subsidiaries [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net cash (used in)/generated from operating activities | ¥ 143,170 | ¥ (69,616) | ¥ (123,000) |
Net cash used in investing activities | (686) | (1,025) | (895) |
Net cash generated from/(used in) financing activities | (71,048) | 24,823 | 152,096 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 1,074 | ||
Net increase/(decrease) in cash and cash equivalents | 71,436 | (44,744) | 28,201 |
Net cash generated from/(used in) transactions with intra-Group companies [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in)/generated from operating activities | 35,000 | 17,200 | 24,000 |
Net cash generated from/(used in) financing activities | (63,485) | 34,823 | 214,109 |
Net cash used in transactions with external parties [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in)/generated from operating activities | 108,170 | (86,816) | (147,000) |
Net cash used in investing activities | (686) | (1,025) | (895) |
Net cash used in transactions with related parties [Member] | |||
Cash flows from operating activities: | |||
Net cash generated from/(used in) financing activities | (21,328) | ||
Net cash used in transactions with third-parties [Member] | |||
Cash flows from operating activities: | |||
Net cash generated from/(used in) financing activities | ¥ (7,563) | ¥ (10,000) | ¥ (40,685) |
Significant Accounting Polici_3
Significant Accounting Policies (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 CNY (¥) | |
Significant Accounting Policies (Details) [Line Items] | ||||||
Reclassified technical service income | ¥ 2,100 | ¥ 600 | ||||
Cash at bank | ¥ 129,300 | 80,100 | $ 18.2 | $ 11.5 | ||
Cast at bank denominate | 114,100 | $ 34.8 | ||||
Cash and cash equivalents | ¥ 124,400 | ¥ 113,900 | ||||
Variable interest entity | 51.10% | 99.10% | 51.10% | 99.10% | ||
Restricted Cash | ¥ 5,000 | ¥ 5,000 | 5,000 | |||
Bank deposits | 21,500 | 34,800 | ||||
Interest income | 160 | 80 | 100 | |||
Provision of allowance for current expected credit losses | 1,203 | 23 | 484 | |||
Goodwill | 84,609 | 84,609 | ||||
Revenue | 900 | 8,700 | 3,300 | |||
Balance of contract liabilities | 4,295 | 888 | 8,700 | ¥ 3,300 | ||
Deferred government grants | 1,400 | 1,400 | 1,100 | |||
Unamortized portion of deferred government grants | 300 | ¥ 800 | ||||
Employee welfare benefits | ¥ 56,200 | 48,600 | ||||
Percentage of tax settlement | 50% | |||||
Statutory surplus of registered capital of entity, percentage | 50% | |||||
Cash and cash equivalents | ¥ 39,800 | |||||
Restricted cash denominated | ¥ 119,100 | |||||
Percentage of cash equivalents and restricted cash | 47.90% | 33.20% | ||||
Agency agreements [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Estimated useful life | 2 years | 2 years | ||||
Channel relationship [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Estimated useful life | 2 years | 2 years | ||||
License [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Amortization period of estimated useful lives | 10 years | |||||
Validity of intangible assets | 5 years | |||||
Customer A [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers | ||||||
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers | ||||||
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers | ||||||
Supplier B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers | ||||||
Supplier C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers | ||||||
Consolidated Entity, Excluding Consolidated VIE [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Statutory surplus of registered capital of entity, percentage | 50% | |||||
Supplier A [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk of customers |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment | Dec. 31, 2023 |
Furniture and office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronics equipment and others [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronics equipment and others [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 6 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Amortization of Finite-Lived Intangible Assets | Dec. 31, 2023 |
Software [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of finite-lived intangible assets, estimated useful lives | 3 years |
Software [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of finite-lived intangible assets, estimated useful lives | 5 years |
License [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of finite-lived intangible assets, estimated useful lives | 10 years |
Agency agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of finite-lived intangible assets, estimated useful lives | 2 years |
Channel relationship [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of finite-lived intangible assets, estimated useful lives | 2 years |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details) $ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Sep. 11, 2023 $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | ||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 5,000,000 | ||||||
Share issued and outstanding | 676,533,464 | 676,533,464 | |||||
Warrants outstanding (in Dollars) | ¥ | ¥ 6,269 | ¥ 1,045 | |||||
Preferred shares issued | 455,818,627 | 455,818,627 | |||||
Convertible preferred shares | 253,181,563 | 253,181,563 | |||||
Ordinary shares issued and outstanding | 253,181,563 | 253,181,563 | |||||
Warrants outstanding | 865,227 | 865,227 | |||||
Ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 479,099,566 | 479,099,566 | |||||
Share Outstanding | [1] | 75,440,709 | 75,440,709 | 31,780,394 | 31,780,394 | 36,209,505 | |
Warrant [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Preferred share converted into warrants | 63,552 | 63,552 | |||||
Class A ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 375,193 | 375,193 | |||||
Share issued and outstanding | 4,716,245 | 4,716,245 | |||||
Warrants outstanding (in Dollars) | $ | $ 13,663,325 | ||||||
Prime Impact converted issued and outstanding | 4,716,245 | 4,716,245 | |||||
Class B ordinary shares | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share Outstanding | 4,341,052 | 4,341,052 | |||||
Redeemable Convertible Preferred Stock [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Convertible redeemable preferred shares | 479,099,566 | ||||||
Mr. Lei Zhang [Member] | Class A ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 49,692,232 | 49,692,232 | |||||
Mr. Lei Zhang [Member] | Class B ordinary shares | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 18,596,504 | 18,596,504 | |||||
Prime Impact Cayman LLC [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 634,228 | ||||||
Prime Impact Cayman LLC [Member] | Class A ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 634,228 | ||||||
World Dynamic Limited [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 1,300,000 | ||||||
World Dynamic Limited [Member] | Class A ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 1,300,000 | ||||||
Goldrock Holdings Limited [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 500,000 | ||||||
Consideration price per share (in Dollars per share) | $ / shares | $ 10 | ||||||
Goldrock Holdings Limited [Member] | Class A ordinary shares [Member] | |||||||
Reverse Recapitalization (Details) [Line Items] | |||||||
Share issued | 500,000 | ||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ / shares | $ 10 | ||||||
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Reverse Recapitalization (Det_2
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
CCT’s ordinary shares outstanding at December 31, 2022 | [1] | 75,440,709 | 31,780,394 |
CCT’s ordinary shares outstanding prior to the Reverse Recapitalization (in Dollars) | $ 450,615,461 | ||
Ordinary shares attributable to conversion | 73,004,981 | ||
Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions | 75,439,209 | ||
CCT’s ordinary shares outstanding [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
CCT’s ordinary shares outstanding at December 31, 2022 | 432,673,255 | ||
CCT’s ordinary shares issued to the Preferred Shareholders [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
CCT’s ordinary shares issued to the Preferred Shareholders (Note 15) (in Dollars) | $ 17,942,206 | ||
Conversion of CCT’s Ordinary Shares [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Ordinary shares attributable to conversion | [2] | 33,098,268 | |
Conversion of CCT’s Convertible Redeemable Preferred Shares [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Ordinary shares attributable to conversion | [2] | 35,190,468 | |
Conversion of Prime Impact’s Class A ordinary shares [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Ordinary shares attributable to conversion | [3] | 375,193 | |
Conversion of Prime Impact’s Class B ordinary shares [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Ordinary shares attributable to conversion | [3] | 4,341,052 | |
Ordinary shares attributable to Prime Impact Cayman LLC [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions | [4] | 634,228 | |
Ordinary shares attributable to World Dynamic Limited [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions | [4] | 1,300,000 | |
Ordinary shares attributable to Goldrock Holdings Limited [Member] | |||
Reverse Recapitalization (Details) - Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital [Line Items] | |||
Total number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions | [4] | 500,000 | |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). On the Closing Date, CCT converted its (i) 450,615,461 issued and outstanding ordinary shares; and (ii) 479,099,566 convertible redeemable preferred shares, issued and outstanding immediately prior to the Reverse Recapitalization into 33,098,268 and 35,190,468 Class A ordinary shares of the Company, respectively, based on the conversion ratio of 13.6145:1. On the Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 Class A ordinary shares; and (ii) and 4,341,052 Class B ordinary shares into 4,716,245 Class A ordinary shares of the Company. On September 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global institutional investors in connection with the Business Combination. Pursuant to such agreements, the Company issued 634,228; 1,300,000; and 500,000 Class A ordinary shares to the Sponsor; World Dynamic Limited; and Goldrock Holdings Limited for the consideration of US$10.00 per share, respectively. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Receivable, Net [Abstract] | |||
Accounts receivable, gross: | ¥ 468,296 | ¥ 402,694 | |
Less: allowance for current expected credit losses | (2,230) | (1,027) | ¥ (1,004) |
Accounts receivable, net | ¥ 466,066 | ¥ 401,667 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Allowance for Current Expected Credit Losses - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance for Current Expected Credit Losses [Abstract] | ||
Balance at the beginning of the year | ¥ (1,027) | ¥ (1,004) |
Additions | (1,203) | (23) |
Write-offs | ||
Balance at the end of the year | ¥ (2,230) | ¥ (1,027) |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) - Schedule of Prepayments and Other Current Assets - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Prepayments and Other Current Assets (Details) - Schedule of Prepayments and Other Current Assets [Line Items] | |||
Deductible Value Added Tax (“VAT”) | ¥ 39,914 | ¥ 34,215 | |
Service fees | [1] | 4,504 | 4,057 |
Rental and other deposits | 2,449 | 2,603 | |
Staff advance | 230 | 1,292 | |
Rental expense for other leases with period less than one year | 630 | 695 | |
Others | 1,594 | 1,550 | |
Balance at the end of the year | ¥ 49,321 | ¥ 44,412 | |
[1]Service fees mainly consist of prepayment of cloud server hosting fees, directors and officers’ insurance fees and others. |
Property, Equipment and Lease_3
Property, Equipment and Leasehold Improvement, Net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, equipment and leasehold improvement, net [Abstract] | |||
Depreciation expenses | ¥ 1,049 | ¥ 1,162 | ¥ 1,665 |
Property, Equipment and Lease_4
Property, Equipment and Leasehold Improvement, Net (Details) - Schedule of Property, Equipment and Leasehold Improvement, Net - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | ¥ 9,445 | ¥ 9,253 |
Less: accumulated depreciation | (7,778) | (7,082) |
Property, equipment and leasehold improvement, net | 1,667 | 2,171 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | 3,697 | 3,621 |
Furniture and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | 1,569 | 1,386 |
Electronic equipment and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | ¥ 4,179 | ¥ 4,246 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |||
Amortization expense | ¥ 2.1 | ¥ 2.1 | ¥ 2.2 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net: - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Gross carrying amount | ||
Gross carrying amount | ¥ 58,916 | ¥ 58,916 |
Less: accumulated amortization | ||
Total intangible assets, net | 8,050 | 10,150 |
Software [Member] | ||
Gross carrying amount | ||
Gross carrying amount | 916 | 916 |
Less: accumulated amortization | ||
Less: accumulated amortization | (916) | (916) |
Licenses [Member] | ||
Gross carrying amount | ||
Gross carrying amount | 21,000 | 21,000 |
Less: accumulated amortization | ||
Less: accumulated amortization | (12,950) | (10,850) |
Agency agreements [Member] | ||
Gross carrying amount | ||
Gross carrying amount | 18,000 | 18,000 |
Less: accumulated amortization | ||
Less: accumulated amortization | (18,000) | (18,000) |
Channel relationship [Member] | ||
Gross carrying amount | ||
Gross carrying amount | 19,000 | 19,000 |
Less: accumulated amortization | ||
Less: accumulated amortization | ¥ (19,000) | ¥ (19,000) |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Estimated Amortization Expenses - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
RMB | ||
2024 | ¥ 2,100 | |
2025 | 2,100 | |
2026 | 2,100 | |
2027 | 1,750 | |
2028 | ||
Total | ¥ 8,050 | ¥ 10,150 |
Goodwill (Details)
Goodwill (Details) - Fanhua Insurance Sales and Services Group Ltd. [Member] - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended |
Oct. 26, 2017 | Dec. 31, 2023 | |
Goodwill (Details) [Line Items] | ||
Total Consideration | ¥ 225.4 | |
Cash | 95.4 | |
Convertible loan | ¥ 130 | |
oodwill on acquisition | ¥ 84.6 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of Goodwill and Accumulated Impairment Losses - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Goodwill and Accumulated Impairment Losses [Abstract] | ||
Gross | ¥ 84,609 | ¥ 84,609 |
Accumulated impairment loss | ||
Goodwill, net | ¥ 84,609 | ¥ 84,609 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Aggregate Right of Use Assets and Related Lease Liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Aggregate Right of Use Assets and Related Lease Liabilities [Abstract] | ||
Operating lease right-of-use assets | ¥ 10,249 | ¥ 14,723 |
Short-term operating lease liabilities | (3,951) | (7,676) |
Long-term operating lease liabilities | (5,398) | (6,226) |
Total operating leased liabilities | ¥ (9,349) | ¥ (13,902) |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average lease term: | |||
Weighted average lease term | 3 years 7 days | 2 years 6 months 7 days | 3 years 5 months 12 days |
Weighted average discount rate: | |||
Weighted average discount rate | 3.91% | 4.08% | 5.24% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Lease Expenses - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Lease Expenses [Abstract] | |||
Operating lease cost | ¥ 8,880 | ¥ 9,013 | ¥ 11,984 |
Cost of other leases with period less than one year | 1,194 | 1,949 | 1,317 |
Total | ¥ 10,074 | ¥ 10,962 | ¥ 13,301 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Leases - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | ¥ 8,984 | ¥ 5,065 | ¥ 11,512 |
Supplemental noncash information: | |||
Right-of-use assets obtained in exchange for lease obligations | ¥ 5,602 | ¥ 8,787 | ¥ 16,305 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of Maturities of Lease Liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
RMB | ||
2024 | ¥ 4,261 | |
2025 | 2,867 | |
2026 | 1,325 | |
2027 | 1,432 | |
Total remaining undiscounted lease payments | 9,885 | |
Less: interest | (536) | |
Total present value of operating lease liabilities | 9,349 | ¥ 13,902 |
Less: short-term operating lease liabilities | (3,951) | (7,676) |
Long-term operating lease liabilities | ¥ 5,398 | ¥ 6,226 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||||||||||||||||||||
Jun. 29, 2023 CNY (¥) | Jun. 14, 2023 CNY (¥) | May 06, 2023 CNY (¥) | Jun. 23, 2022 CNY (¥) | Jun. 13, 2022 CNY (¥) | May 27, 2022 CNY (¥) | Apr. 13, 2022 CNY (¥) | Feb. 13, 2022 CNY (¥) | Jun. 03, 2021 CNY (¥) | May 28, 2021 CNY (¥) | Jan. 10, 2021 CNY (¥) | Nov. 02, 2020 CNY (¥) | Jun. 12, 2020 CNY (¥) | Jun. 11, 2020 CNY (¥) | May 25, 2020 CNY (¥) | Dec. 31, 2023 CNY (¥) | Apr. 15, 2024 USD ($) | Feb. 07, 2024 USD ($) | Dec. 31, 2022 CNY (¥) | Apr. 30, 2021 CNY (¥) | Mar. 05, 2021 CNY (¥) | |
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Credit facility granted | ¥ 10,000 | ||||||||||||||||||||
Expired date | Jun. 13, 2025 | ||||||||||||||||||||
Credit facility | ¥ 6,000 | ¥ 10,000 | ¥ 50,000 | ¥ 10,000 | ¥ 3,000 | ¥ 4,000 | ¥ 3,000 | ¥ 65,000 | |||||||||||||
principal amount loan | ¥ 20,000 | ||||||||||||||||||||
Interest rate percentage | 12% | ||||||||||||||||||||
Balance of principal amount | ¥ 21,474 | ¥ 34,823 | ¥ 10,000 | ¥ 10,000 | |||||||||||||||||
Short-Term Debt [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Repaid amount | ¥ 5,000 | ¥ 5,000 | ¥ 5,000 | ¥ 7,400 | ¥ 5,000 | ¥ 2,600 | |||||||||||||||
Short-Term Debt [Member] | Loan [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Repaid amount | ¥ 10,000 | ||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Repayment of loan (in Dollars) | $ | $ 4 | ||||||||||||||||||||
Forecast [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Repayment of loan (in Dollars) | $ | $ 3 | ||||||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Credit facility granted | ¥ 10,000 | ||||||||||||||||||||
Expired date | Jun. 22, 2024 | ||||||||||||||||||||
Credit facility | ¥ 4,000 | ||||||||||||||||||||
Mr. Lei Zhang [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Expired date | Apr. 22, 2021 | ||||||||||||||||||||
Beijing Small and Medium Entity Financing Re-guarantee Co., Ltd [Member] | |||||||||||||||||||||
Short-Term Borrowings [Line Items] | |||||||||||||||||||||
Expired date | Jun. 04, 2022 |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of Outstanding Short-Term Borrowings - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Outstanding Short-Term Borrowings [Abstract] | ||
Bank borrowings | ¥ 20,000 |
Short-Term Borrowings (Detail_3
Short-Term Borrowings (Details) - Schedule of Bank Borrowings - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Bank Borrowings [Line Items] | |||
December 31, | ¥ 20,000 | ||
Bank of Nanjing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [1] | May 22, 2021 | |
Principal amount | [1] | ¥ 2,620 | |
Interest rate per annum | [1] | 5.22% | |
December 31, | [1] | ||
Bank of Nanjing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [1] | June 11, 2021 | |
Principal amount | [1] | ¥ 7,380 | |
Interest rate per annum | [1] | 7.63% | |
December 31, | [1] | ||
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [2] | May 27, 2022 | |
Principal amount | [2] | ¥ 5,000 | |
Interest rate per annum | [2] | 4.55% | |
December 31, | [2] | ||
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [2] | June 2, 2022 | |
Principal amount | [2] | ¥ 5,000 | |
Interest rate per annum | [2] | 4.55% | |
December 31, | [2] | ||
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [2] | June 29, 2023 | |
Principal amount | [2] | ¥ 10,000 | |
Interest rate per annum | [2] | 3.70% | |
December 31, | [2] | ||
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [3] | Feb 13,2024 | |
Principal amount | [3] | ¥ 3,000 | |
Interest rate per annum | [3] | 3.65% | |
December 31, | [3] | ¥ 3,000 | |
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [3] | Apr 13, 2024 | |
Principal amount | [3] | ¥ 4,000 | |
Interest rate per annum | [3] | 3.65% | |
December 31, | [3] | ¥ 4,000 | |
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [3] | June 13, 2024 | |
Principal amount | [3] | ¥ 3,000 | |
Interest rate per annum | [3] | 3.65% | |
December 31, | [3] | ¥ 3,000 | |
Bank of Beijing [Member] | |||
Schedule of Bank Borrowings [Line Items] | |||
Maturity date | [4] | June 28, 2024 | |
Principal amount | [4] | ¥ 10,000 | |
Interest rate per annum | [4] | 3.55% | |
December 31, | [4] | ¥ 10,000 | |
[1] The Group was granted a RMB10.0 million credit facility that expired on April 22, 2021 to support its operations. The credit facility was guaranteed by Cheche Insurance and Mr. Lei Zhang (Note 22). There are no financial covenants for the credit facility. Under the credit facility, the Group drew down RMB2.6 million and RMB7.4 million on May 25, 2020 and June 12, 2020, respectively. The interest is payable on a monthly basis and the principal will be due upon maturity. These loans were eventually repaid on May 25, 2021 and June 15, 2021, respectively. Bank of Nanjing did not impose any penalty for these late repayments. On June 23, 2022, the Group entered into an RMB10.0 million credit facility with the Bank of Beijing that will expire on June 22, 2024 to support its operations. Under this credit facility, the Group drew down RMB3.0 million, RMB4.0 million and RMB3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB4.0 million and RMB3.0 million were repaid on February 7, 2024 and April 15, 2024, respectively. There are no financial covenants for the credit facility. |
Taxation (Details)
Taxation (Details) $ in Millions | 12 Months Ended | |
Apr. 01, 2018 HKD ($) | Dec. 31, 2023 USD ($) | |
Taxation (Details) [Line Items] | ||
Profit tax rates | 16.50% | 16.50% |
Tax rate | 8.25% | |
Income tax assessable profit | $ 2 | $ 2 |
Percentage of equity interests | 14.24% | |
Preferential Tax Rate | 15% | |
Withholding income tax percentage | 10% | |
China [Member] | ||
Taxation (Details) [Line Items] | ||
Percentage of equity interests | 25% | |
Hong Kong [Member] | ||
Taxation (Details) [Line Items] | ||
Withholding income tax percentage | 5% |
Taxation (Details) - Schedule o
Taxation (Details) - Schedule of Income Tax Expense - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss before income tax expense | |||
Loss from Chinese mainland operations | ¥ (149,818) | ¥ (74,843) | ¥ (132,584) |
Loss from non-Chinese mainland operations | (10,135) | (16,700) | (14,399) |
Total Loss before income tax expense from continuing operations | (159,953) | (91,543) | (146,983) |
Income tax benefit applicable to Chinese mainland operations | |||
Deferred income tax benefit | 525 | 525 | 525 |
Subtotal income tax benefit applicable to Chinese mainland operations | 525 | 525 | 525 |
Non-Chinese mainland withholding tax expense | (162) | (4) | (3) |
Total income tax benefit from continuing operations | ¥ 363 | ¥ 521 | ¥ 522 |
Taxation (Details) - Schedule_2
Taxation (Details) - Schedule of Reconciliation Between the Income Tax Credit - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliation Between the Income Tax Credit [Abstract] | |||
Loss before income tax | ¥ (159,953) | ¥ (91,543) | ¥ (146,983) |
Tax benefit at EIT tax rate of 25% | (39,989) | (22,886) | (36,746) |
Effect of different tax rates applicable to different subsidiaries of the Group | 18,589 | 241 | (3,651) |
Effect of changes in tax rates | 8,158 | ||
Expired operating loss | 14,966 | ||
Permanent differences | 13,722 | (2,822) | (931) |
Changes in deferred tax assets valuation allowance | (15,809) | 24,946 | 40,806 |
Income tax credit | ¥ (363) | ¥ (521) | ¥ (522) |
Taxation (Details) - Schedule_3
Taxation (Details) - Schedule of Reconciliation Between the Income Tax Credit (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliation Between the Income Tax Credit [Abstract] | |||
Tax benefit at EIT tax rate, percentage | 25% | 25% | 25% |
Taxation (Details) - Schedule_4
Taxation (Details) - Schedule of Operating Tax Loss Carry Forwards | Dec. 31, 2023 CNY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | ¥ 610,880 |
Loss expiring in 2024 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 125,177 |
Loss expiring in 2025 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 4,538 |
Loss expiring in 2026 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 137,657 |
Loss expiring in 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 61,233 |
Loss expiring in 2028 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 2,473 |
Loss expiring in 2029 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 356 |
Loss expiring in 2030 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 85,329 |
Loss expiring in 2031 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 51,726 |
Loss expiring in 2032 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | 29,854 |
Loss expiring in 2033 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating tax loss carry forwards | ¥ 112,537 |
Taxation (Details) - Schedule_5
Taxation (Details) - Schedule of Deferred Tax Assets and Liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net accumulated losses carry forwards | ¥ 124,740 | ¥ 140,950 |
Accrued payroll and other expenses | 9,480 | 7,570 |
Advertising expenses in excess of deduction limit | 6,500 | 9,841 |
Fair value changes of amounts due to related party | 4,237 | 3,108 |
Accrued expenses | 427 | 400 |
Deferred revenue | 358 | 358 |
Others | 1,682 | 1,006 |
Deferred tax assets | 147,424 | 163,233 |
Less: valuation allowance | (147,424) | (163,233) |
Deferred tax assets, net | ||
Deferred tax liabilities: | ||
Identifiable intangible assets arising from acquisition of Cheche Insurance (Note 6) | (2,013) | (2,538) |
Deferred tax liabilities | ¥ (2,013) | ¥ (2,538) |
Taxation (Details) - Schedule_6
Taxation (Details) - Schedule of Valuation Allowances the Related Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Valuation Allowances the Related Deferred Tax Assets [Abstract] | |||
Balance at the beginning of the year | $ (163,233) | $ (138,287) | $ (97,481) |
(Additions)/Reversals | 15,809 | (24,946) | (40,806) |
Balance at end of the year | $ (147,424) | $ (163,233) | $ (138,287) |
Tax Payable (Details)
Tax Payable (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Tax Payable [Abstract] | |
Value added tax rate | 6% |
Tax Payable (Details) - Schedul
Tax Payable (Details) - Schedule of Tax Payable - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Tax Payable [Abstract] | ||
VAT payables | ¥ 43 | ¥ 2,088 |
Individual income tax payables | 770 | 815 |
Stamp duty payables | 66 | |
Construction tax payables | 52 | 25 |
Educational development payables | 37 | 50 |
Others | 48 | 34 |
Total | ¥ 950 | ¥ 3,078 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Accrued Expenses And Other Current Liabilities Abstract | |||
Professional service fees | ¥ 16,490 | ¥ 31,899 | |
Refund liability | 7,703 | 6,632 | |
Accrued expenses | 789 | 544 | |
Payables to third-party financial institutions | [1] | ||
Others | 777 | 1,813 | |
Total | ¥ 25,759 | ¥ 40,888 | |
[1]The Group entered into factoring agreements with third-party financial institutions in 2020 whereby the financial institutions would settle the Group’s accounts payable directly after the Group factored its accounts receivable with recourse to these financial institutions. The Group’s consolidated statements of cash flows has reflected an operating cash outflow in changes in “Accrued expenses and other current liabilities” and financing cash inflow related to this affected accounts payable balance in “Cash receipt of the debt proceeds”. A financing cash outflow was reflected upon payment to the financial institutions and settlement of the obligation in “Cash payment of the debt proceeds”. As of December 31, 2021, the Group has fully settled this payables to the financial institutions. |
Long-Term Borrowings (Details)
Long-Term Borrowings (Details) ¥ in Millions, $ in Millions | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) |
Long-Term Borrowings (Details) [Line Items] | ||
Other Borrowings (in Dollars) | $ | $ 3 | |
Investment Interest Rate | 9.50% | 9.50% |
Other Long-Term Debt | ¥ 19.1 | |
Long-Term Debt [Member] | ||
Long-Term Borrowings (Details) [Line Items] | ||
Aggregated principal amount repaid | ¥ 7.3 |
Preferred Shares (Details)
Preferred Shares (Details) ¥ in Millions | 1 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 23, 2023 shares | May 23, 2019 CNY (¥) shares | Nov. 22, 2018 shares | Feb. 28, 2022 shares | Jan. 31, 2022 USD ($) shares | Jul. 31, 2021 USD ($) shares | Jun. 30, 2021 CNY (¥) shares | Jun. 30, 2021 USD ($) shares | Apr. 30, 2021 USD ($) shares | Oct. 31, 2019 CNY (¥) shares | Jan. 31, 2019 USD ($) shares | Aug. 31, 2017 CNY (¥) shares | Jul. 31, 2016 CNY (¥) shares | Jul. 31, 2015 CNY (¥) shares | Sep. 14, 2023 CNY (¥) | Dec. 31, 2023 shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) shares | Sep. 11, 2023 shares | ||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 5,000,000 | |||||||||||||||||||
Consideration | $ | $ 15,000,000 | |||||||||||||||||||
Shares transferred | 260,667 | 260,667 | ||||||||||||||||||
Purchase of shares | 13,546,219 | |||||||||||||||||||
Implied valuation of shares (in Dollars) | $ | $ 800,000,000 | |||||||||||||||||||
Percentage of ordinary shares | 10% | |||||||||||||||||||
Percentage of QIPO offering price | 75% | |||||||||||||||||||
Compound interest rate of capital contribution | 10% | |||||||||||||||||||
Accretion of preferred shares (in Yuan Renminbi) | ¥ | ¥ 762.2 | ¥ 188.3 | ¥ 101.5 | |||||||||||||||||
Ordinary Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 479,099,566 | |||||||||||||||||||
Purchase of shares | [1] | 1,317,874 | ||||||||||||||||||
Series C Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 1,955,000 | 1,877,135 | ||||||||||||||||||
Consideration | $ | $ 19,700,000 | $ 17,400,000 | ||||||||||||||||||
Purchase of shares | 1,955,000 | |||||||||||||||||||
Additional shares issued | 150,171 | |||||||||||||||||||
Shares repurchased | 27,600,750 | |||||||||||||||||||
Series D1 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 399,496 | 399,496 | ||||||||||||||||||
Consideration | ¥ | ¥ 20 | |||||||||||||||||||
Purchase of shares | 399,496 | |||||||||||||||||||
Series D2 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 765,057 | |||||||||||||||||||
Series D3 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 10,426,666 | |||||||||||||||||||
Shenzhen Ruiyuan Investment Enterprise, LLP [Member] | Series Pre-A Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 146,903 | |||||||||||||||||||
Consideration | ¥ | ¥ 30 | |||||||||||||||||||
Shenzhen Ruiyuan [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 108,891 | |||||||||||||||||||
Ruiyuan [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 559,868 | 4,429,111 | 4,429,111 | |||||||||||||||||
Ruiyuan [Member] | Series Pre-A Financing [Member] | Ordinary Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 5,444,575 | |||||||||||||||||||
Cicw Holdings [Member] | Ordinary Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Consideration | ¥ | ¥ 6 | |||||||||||||||||||
Shares transferred | 1,015,462 | |||||||||||||||||||
Zhongyun Ronghui [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 606,524 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series A Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 91,814 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series A Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 4,590,703 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series A Preferred Stock [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 4,590,703 | |||||||||||||||||||
Consideration | ¥ | ¥ 0.4 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series B Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 6,886 | |||||||||||||||||||
Consideration | ¥ | ¥ 7.5 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series B Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 344,303 | |||||||||||||||||||
Zhongyun Ronghui [Member] | Series B Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 344,303 | |||||||||||||||||||
Consideration | ¥ | ¥ 0.1 | |||||||||||||||||||
Hangzhou Shunying Equity Investment Enterprise, LLP [Member] | Series A Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 91,814 | |||||||||||||||||||
Consideration | ¥ | ¥ 25 | |||||||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series A Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Consideration | ¥ | ¥ 25 | |||||||||||||||||||
Hangzhou Shunying [Member] | Series A Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 4,590,703 | |||||||||||||||||||
Hangzhou Shunying [Member] | Series B Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 6,886 | |||||||||||||||||||
Consideration | ¥ | ¥ 7.5 | |||||||||||||||||||
Hangzhou Shunying [Member] | Series B Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Purchase of shares | 344,303 | |||||||||||||||||||
Ningbo Shiwei Enterprise Management Partnership (L.P.) [Member] | Series A Preferred Stock [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 4,590,703 | |||||||||||||||||||
Consideration | ¥ | ¥ 0.4 | |||||||||||||||||||
Huzhou Zhongze Jiameng Equity Investment Enterprise LLP [Member] | Series B Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 55,088 | |||||||||||||||||||
Huzhou Zhongze Jiameng Equity Investment Enterprise LLP [Member] | Yonghe CarTech Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Consideration | ¥ | ¥ 60 | |||||||||||||||||||
Zhuhai Hengqin Huarong Zhifu Investment Management Co., Ltd. [Member] | Series B Financing [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 91,814 | |||||||||||||||||||
Consideration | ¥ | ¥ 100 | |||||||||||||||||||
Eagle Rover Ltd. [Member] | Series B Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 2,754,422 | |||||||||||||||||||
Lian Jia Enterprise Limited [Member] | Series B Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 4,590,704 | |||||||||||||||||||
Ningbo Shiwei [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 606,524 | |||||||||||||||||||
Ningbo Shiwei [Member] | Series B Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 344,303 | |||||||||||||||||||
Consideration | ¥ | ¥ 0.1 | |||||||||||||||||||
Yonghe CarTech Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 1,014,735 | |||||||||||||||||||
Yonghe CarTech Limited [Member] | Series C Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 782,000 | |||||||||||||||||||
Yonghe CT Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 1,522,101 | |||||||||||||||||||
Yonghe CT Limited [Member] | Series D2 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 651,667 | 651,667 | ||||||||||||||||||
Consideration | $ | $ 5,000,000 | |||||||||||||||||||
Yonghe SI Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 110,352 | |||||||||||||||||||
Yonghe SI Limited [Member] | Series D2 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 113,390 | 113,390 | ||||||||||||||||||
Consideration | $ | $ 900,000 | |||||||||||||||||||
Image Digital Investment (HK) Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 8,117,877 | |||||||||||||||||||
Image Digital Investment (HK) Limited [Member] | Series D3 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 8,341,333 | |||||||||||||||||||
Consideration | $ | $ 64,000,000 | |||||||||||||||||||
TPP Fund II Holding F Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 2,029,469 | |||||||||||||||||||
TPP Fund II Holding F Limited [Member] | Series D3 Preferred Shares [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares issued | 2,085,333 | |||||||||||||||||||
Consideration | $ | $ 16,000,000 | |||||||||||||||||||
Huzhou Zhongze BVI [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 1,119,736 | |||||||||||||||||||
Zhuhai Hengqin BVI [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 1,866,227 | |||||||||||||||||||
United Gemini Holdings Limited [Member] | ||||||||||||||||||||
Preferred Shares [Line Items] | ||||||||||||||||||||
Shares transferred | 388,793 | |||||||||||||||||||
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Preferred Shares (Details) - Sc
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares - Preferred Shares [Member] $ / shares in Units, $ in Thousands | Dec. 31, 2022 USD ($) $ / shares shares | |
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 35,190,468 | [1] |
Shares Issued and Outstanding | shares | 35,190,468 | |
Redemption Value | $ | $ 233,102 | |
Liquidation Value | $ | $ 251,592 | |
Series Pre-A [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 4,429,111 | [1] |
Shares Issued and Outstanding | shares | 4,429,111 | |
Issue Price per Share | $ / shares | $ 5.45 | |
Redemption Value | $ | $ 19,752 | |
Liquidation Value | $ | $ 19,965 | |
Series A [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 9,181,406 | [1] |
Shares Issued and Outstanding | shares | 9,181,406 | |
Issue Price per Share | $ / shares | $ 5.45 | |
Redemption Value | $ | $ 40,853 | |
Liquidation Value | $ | $ 40,886 | |
Series B Preferred Stock [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 8,033,732 | [1] |
Shares Issued and Outstanding | shares | 8,033,732 | |
Issue Price per Share | $ / shares | $ 21.78 | |
Redemption Value | $ | $ 49,709 | |
Liquidation Value | $ | $ 52,721 | |
Series C Preferred Stock [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 1,955,000 | [1] |
Shares Issued and Outstanding | shares | 1,955,000 | |
Issue Price per Share | $ / shares | $ 8.58 | |
Redemption Value | $ | $ 17,616 | |
Liquidation Value | $ | $ 19,916 | |
Series D1 [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 399,496 | [1] |
Shares Issued and Outstanding | shares | 399,496 | |
Issue Price per Share | $ / shares | $ 8.85 | |
Redemption Value | $ | $ 3,653 | |
Liquidation Value | $ | $ 4,071 | |
Series D2 [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 765,057 | [1] |
Shares Issued and Outstanding | shares | 765,057 | |
Issue Price per Share | $ / shares | $ 8.85 | |
Redemption Value | $ | $ 6,996 | |
Liquidation Value | $ | $ 7,795 | |
Series D3 [Member] | ||
Preferred Shares (Details) - Schedule of Issuances of Preferred Shares [Line Items] | ||
Shares Authorized | shares | 10,426,666 | [1] |
Shares Issued and Outstanding | shares | 10,426,666 | |
Issue Price per Share | $ / shares | $ 8.85 | |
Redemption Value | $ | $ 94,523 | |
Liquidation Value | $ | $ 106,238 | |
[1] Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Preferred Shares (Details) - _2
Preferred Shares (Details) - Schedule of Preferred Shares Activities - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 35,190,468 | [1] | 37,217,774 | [1] | 19,242,444 | ||
Total Number of shares. Issuance of Preferred Shares (in Shares) | 13,546,219 | ||||||
Total Number of shares, Accretions to Preferred Shares redemption value (in Shares) | [2] | [1] | |||||
Total Number of shares, Re-designation from ordinary shares to Series Pre-A preferred share (in Shares) | 4,429,111 | ||||||
Total Number of shares, Balance (in Shares) | [2] | 35,190,468 | [1] | 37,217,774 | [1] | ||
Total Number of shares, Redemption of Preferred Shares (in Shares) | [1] | (2,027,306) | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | [2] | (35,190,468) | |||||
Total amount, Balance | ¥ 1,558,881 | ¥ 1,503,139 | ¥ 785,891 | ||||
Total amount. Issuance of Preferred Shares | 653,247 | ||||||
Total amount, Accretions to Preferred Shares redemption value | 762,169 | 188,271 | (101,467) | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | 165,468 | ||||||
Total amount, Balance | 1,558,881 | ¥ 1,503,139 | |||||
Total amount, Redemption of Preferred Shares | ¥ (132,529) | ||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (2,321,050) | ||||||
Series Pre-A Preferred Shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 4,429,111 | 4,429,111 | |||||
Total Number of shares, Re-designation from ordinary shares to Series Pre-A preferred share (in Shares) | 4,429,111 | ||||||
Total Number of shares, Balance (in Shares) | 4,429,111 | 4,429,111 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (4,429,111) | ||||||
Total amount, Balance | ¥ 151,303 | ¥ 121,121 | |||||
Total amount. Issuance of Preferred Shares | |||||||
Total amount, Accretions to Preferred Shares redemption value | 149,858 | 30,182 | (44,347) | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | 165,468 | ||||||
Total amount, Balance | 151,303 | ¥ 121,121 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (301,161) | ||||||
Series A Preferred shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 9,181,406 | 9,181,406 | 9,181,406 | ||||
Total Number of shares, Balance (in Shares) | 9,181,406 | 9,181,406 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (9,181,406) | ||||||
Total amount, Balance | ¥ 333,797 | ¥ 270,877 | ¥ 314,292 | ||||
Total amount. Issuance of Preferred Shares | |||||||
Total amount, Accretions to Preferred Shares redemption value | 311,290 | 62,920 | (43,415) | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 333,797 | ¥ 270,877 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (645,087) | ||||||
Series B Preferred shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 8,033,732 | 8,033,732 | 8,033,732 | ||||
Total Number of shares, Balance (in Shares) | 8,033,732 | 8,033,732 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (8,033,732) | ||||||
Total amount, Balance | ¥ 320,036 | ¥ 275,750 | ¥ 330,623 | ||||
Total amount. Issuance of Preferred Shares | |||||||
Total amount, Accretions to Preferred Shares redemption value | 239,317 | 44,286 | (54,873) | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 320,036 | ¥ 275,750 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (559,353) | ||||||
Series C Preferred shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 1,955,000 | 3,982,306 | 2,027,306 | ||||
Total Number of shares. Issuance of Preferred Shares (in Shares) | 1,955,000 | ||||||
Total Number of shares, Balance (in Shares) | 1,955,000 | 3,982,306 | |||||
Total Number of shares, Redemption of Preferred Shares (in Shares) | (2,027,306) | ||||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (1,955,000) | ||||||
Total amount, Balance | ¥ 115,356 | ¥ 259,024 | ¥ 140,976 | ||||
Total amount. Issuance of Preferred Shares | 97,850 | ||||||
Total amount, Accretions to Preferred Shares redemption value | 9,144 | (11,139) | 20,198 | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 115,356 | ¥ 259,024 | |||||
Total amount, Redemption of Preferred Shares | ¥ (132,529) | ||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (124,500) | ||||||
Series D1 Preferred Shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 399,496 | 399,496 | |||||
Total Number of shares. Issuance of Preferred Shares (in Shares) | 399,496 | ||||||
Total Number of shares, Balance (in Shares) | 399,496 | 399,496 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (399,496) | ||||||
Total amount, Balance | ¥ 22,639 | ¥ 20,452 | |||||
Total amount. Issuance of Preferred Shares | 19,400 | ||||||
Total amount, Accretions to Preferred Shares redemption value | 1,853 | 2,187 | 1,052 | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 22,639 | ¥ 20,452 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (24,492) | ||||||
Series D2 Preferred Shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 765,057 | 765,057 | |||||
Total Number of shares. Issuance of Preferred Shares (in Shares) | 765,057 | ||||||
Total Number of shares, Balance (in Shares) | 765,057 | 765,057 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (765,057) | ||||||
Total amount, Balance | ¥ 39,144 | ¥ 34,992 | |||||
Total amount. Issuance of Preferred Shares | 33,034 | ||||||
Total amount, Accretions to Preferred Shares redemption value | 3,519 | 4,152 | 1,958 | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 39,144 | ¥ 34,992 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (42,663) | ||||||
Series D3 Preferred Shares [Member] | |||||||
Series Pre-A Preferred shares | |||||||
Total Number of shares, Balance (in Shares) | 10,426,666 | 10,426,666 | |||||
Total Number of shares. Issuance of Preferred Shares (in Shares) | 10,426,666 | ||||||
Total Number of shares, Balance (in Shares) | 10,426,666 | 10,426,666 | |||||
Total Number of shares, Transfer Preferred Shares to Ordinary shareholders (in Shares) | (10,426,666) | ||||||
Total amount, Balance | ¥ 576,606 | ¥ 520,923 | |||||
Total amount. Issuance of Preferred Shares | 502,963 | ||||||
Total amount, Accretions to Preferred Shares redemption value | 47,188 | 55,683 | 17,960 | ||||
Total amount, Re-designation from ordinary shares to Series Pre-A preferred share | |||||||
Total amount, Balance | 576,606 | ¥ 520,923 | |||||
Total amount, Redemption of Preferred Shares | |||||||
Total amount, Transfer Preferred Shares to Ordinary shareholders | ¥ (623,794) | ||||||
[1] Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Number of operating segment | 1 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Key Revenues Streams - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total | ¥ 3,301,418 | ¥ 2,679,059 | ¥ 1,735,404 |
Insurance transaction services income [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 3,275,182 | 2,617,185 | 1,699,433 |
SaaS and technical service income [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 25,051 | 61,863 | 30,435 |
Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | ¥ 1,185 | ¥ 11 | ¥ 5,536 |
Cost of Revenues (Details) - Sc
Cost of Revenues (Details) - Schedule of Cost of Revenues - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Cost of Revenues [Abstract] | |||
Cost of referral partners | ¥ 3,017,871 | ¥ 2,424,579 | ¥ 1,581,153 |
Service fee paid to third-party payment platforms | 129,453 | 104,627 | 62,019 |
Customer service costs | 4,428 | ||
Amortization and depreciation | 2,100 | 2,391 | 2,119 |
Salary and welfare benefits | 7,790 | 2,070 | 2,074 |
Cloud service fees | 1,525 | 1,838 | 1,764 |
Tax and surcharges and others | 2,454 | 1,241 | 1,035 |
Total | ¥ 3,161,193 | ¥ 2,536,746 | ¥ 1,654,592 |
Employee benefits (Details) - S
Employee benefits (Details) - Schedule of Employee Welfare Benefits Expenses ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | [1] | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | ||
Employee benefits (Details) - Schedule of Employee Welfare Benefits Expenses [Line Items] | |||||||
Contributions to medical and pension schemes | ¥ | ¥ 21,095 | ¥ 20,842 | ¥ 17,143 | [1] | |||
Other employee benefits | ¥ | 6,726 | 7,227 | 5,857 | [1] | |||
Total | ¥ | ¥ 27,821 | ¥ 28,069 | 23,000 | [1] | |||
As Previously Reported [Member] | |||||||
Employee benefits (Details) - Schedule of Employee Welfare Benefits Expenses [Line Items] | |||||||
Contributions to medical and pension schemes | $ 10,376 | 8,612 | |||||
Other employee benefits | 1,990 | 1,452 | |||||
Total | 12,366 | ¥ 10,064 | |||||
Adjustment [Member] | |||||||
Employee benefits (Details) - Schedule of Employee Welfare Benefits Expenses [Line Items] | |||||||
Contributions to medical and pension schemes | 10,466 | $ 8,531 | |||||
Other employee benefits | 5,237 | 4,405 | |||||
Total | 15,703 | 12,936 | |||||
As Revised [Member] | |||||||
Employee benefits (Details) - Schedule of Employee Welfare Benefits Expenses [Line Items] | |||||||
Contributions to medical and pension schemes | 20,842 | 17,143 | |||||
Other employee benefits | 7,227 | 5,857 | |||||
Total | $ 28,069 | $ 23,000 | |||||
[1] The amounts of “Contributions to medical and pension schemes” and “Other employee benefits” for the years ended December 31, 2021 and 2022 have been revised to correct for a formula error in the preparation of this disclosure. The errors in 2021 and 2022 were disclosure only and did not have any impact to the previously reported consolidated results of operations, financial position, or cash flows. |
Share-Based Compensation (Detai
Share-Based Compensation (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Jul. 01, 2023 CNY (¥) shares | Jan. 01, 2023 CNY (¥) shares | Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2021 $ / shares | |
Share-Based Compensation (Details) [Line Items] | ||||||||
Cost of revenues and expenses (in Yuan Renminbi) | ¥ | ¥ 3,161,193 | ¥ 2,536,746 | ¥ 1,654,592 | |||||
Maturities, term | 10 years | |||||||
Fair value of options granted | (per share) | ¥ 42.1761 | $ 5.9404 | ¥ 5.2688 | $ 0.7733 | ¥ 5.3151 | $ 0.7801 | ||
2019 Incentive Plan [Member] | ||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||
Percentage of vested share on each anniversary | 25% | 25% | ||||||
Percentage of vested share on each quarter for four years | 6.25% | 6.25% | ||||||
Percentage of vested share on each anniversary for two years | 50% | 50% | ||||||
2023 Incentive Plan [Member] | ||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||
Vested options, share | shares | 20,359,900 | 86,871,800 | ||||||
Restricted shares | shares | 20,359,900 | 86,871,800 | ||||||
Cost of revenues and expenses (in Yuan Renminbi) | ¥ | ¥ 26,300 | ¥ 26,200 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details) - Schedule of Option Pricing Model and Adopted Fair Value Per Share - $ / shares | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Fair value per share (US$) (in Dollars per share) | [1] | |||||
Discount rate (after tax) | [1] | |||||
Risk-free interest rate | 3.88% | [1] | 1.66% | [1] | ||
Expected volatility | 64.20% | [1] | ||||
Contractual term (in years) | [1] | 10 years | 10 years | |||
Discount for lack of marketability (“DLOM”) | [1] | |||||
Minimum [Member] | ||||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Fair value per share (US$) (in Dollars per share) | [1] | $ 6.33 | $ 3.81 | |||
Discount rate (after tax) | [1] | 16.50% | ||||
Risk-free interest rate | [1] | |||||
Expected volatility | [1] | 42.05% | ||||
Discount for lack of marketability (“DLOM”) | [1] | 7% | ||||
Maximum [Member] | ||||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Fair value per share (US$) (in Dollars per share) | [1] | $ 6.37 | $ 5.58 | |||
Discount rate (after tax) | [1] | 18% | ||||
Risk-free interest rate | [1] | |||||
Expected volatility | [1] | 54.06% | ||||
Discount for lack of marketability (“DLOM”) | [1] | 12% | ||||
Restricted Shares [Member] | ||||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Discount rate (after tax) | 16.50% | |||||
Discount for lack of marketability (“DLOM”) | 10% | |||||
Restricted Shares [Member] | Minimum [Member] | ||||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Fair value per share (US$) (in Dollars per share) | $ 4.9 | $ 3.81 | $ 3.81 | |||
Discount rate (after tax) | 15% | 16.50% | ||||
Discount for lack of marketability (“DLOM”) | 5% | 7% | ||||
Restricted Shares [Member] | Maximum [Member] | ||||||
Schedule of Option Pricing Model and Adopted Fair Value Per Share [Line Items] | ||||||
Fair value per share (US$) (in Dollars per share) | $ 5.45 | $ 4.08 | $ 5.58 | |||
Discount rate (after tax) | 16% | 18% | ||||
Discount for lack of marketability (“DLOM”) | 10% | 12% | ||||
[1]There were no grants for options for the year ended December 31, 2022. |
Share-Based Compensation (Det_3
Share-Based Compensation (Details) - Schedule of Stock Options Activities ¥ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 CNY (¥) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 CNY (¥) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 $ / shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | ||
Share-Based Compensation (Details) - Schedule of Stock Options Activities [Line Items] | ||||||||||||
Number of Options Outstanding Employees, Replacement | [1] | (7,876,000) | ||||||||||
Weighted Average exercise price, Replacement | 1.3119 | |||||||||||
Weighted average remaining contractual life, Replacement | ||||||||||||
Aggregated intrinsic value, Replacement (in Yuan Renminbi) | ¥ | ||||||||||||
Number of Options Outstanding Employees, Granted | [1] | 528,000 | 547,000 | |||||||||
Weighted Average exercise price, Granted (in Dollars per share) | $ / shares | $ 0.1 | $ 8.0748 | ||||||||||
Weighted average remaining contractual life, Granted | ||||||||||||
Aggregated intrinsic value, Granted (in Yuan Renminbi) | ¥ | ||||||||||||
Number of Options Outstanding Employees, Forfeited | [1] | (28,000) | (58,000) | (1,433,000) | ||||||||
Weighted Average exercise price, Forfeited (in Dollars per share) | $ / shares | 8.1954 | $ 8.0885 | 5.3355 | |||||||||
Weighted average remaining contractual life, Forfeited | ||||||||||||
Aggregated intrinsic value, Forfeited (in Yuan Renminbi) | ¥ | ||||||||||||
Number of Options Outstanding Employees, Outstanding ending | [1] | 573,000 | 7,949,000 | 8,007,000 | 8,893,000 | |||||||
Weighted Average exercise price, Outstanding ending (in Dollars per share) | $ / shares | $ 0.6675 | $ 1.7905 | $ 1.8362 | $ 2.0163 | ||||||||
Weighted average remaining contractual life, Outstanding ending | 9 years 8 months 23 days | 4 years 8 months 1 day | 5 years 8 months 8 days | 6 years 9 months 3 days | ||||||||
Aggregated intrinsic value, Outstanding ending (in Yuan Renminbi) | ¥ | ¥ 23,775 | ¥ 65,572 | ¥ 65,574 | ¥ 65,574 | ||||||||
Number of Options Outstanding Employees, Exercisable ending | [1] | 295,000 | 295,000 | 7,949,000 | 7,949,000 | 8,007,000 | 8,007,000 | |||||
Weighted Average exercise price, Exercisable ending (in Dollars per share) | $ / shares | $ 1.1978 | $ 1.7905 | $ 1.8362 | |||||||||
Weighted average remaining contractual life, Exercisable ending | 9 years 5 months 23 days | 4 years 8 months 1 day | 5 years 8 months 8 days | |||||||||
Aggregated intrinsic value, Exercisable ending (in Yuan Renminbi) | ¥ | ¥ 11,367 | $ 11,367 | ¥ 65,572 | $ 65,572 | ¥ 65,574 | $ 65,574 | ||||||
Employees [Member] | ||||||||||||
Share-Based Compensation (Details) - Schedule of Stock Options Activities [Line Items] | ||||||||||||
Number of Options Outstanding Employees, Replacement | [1] | (7,545,000) | ||||||||||
Number of Options Outstanding Employees, Granted | [1] | 528,000 | 547,000 | |||||||||
Number of Options Outstanding Employees, Forfeited | [1] | (28,000) | (58,000) | (1,433,000) | ||||||||
Number of Options Outstanding Employees, Outstanding ending | [1] | 573,000 | 7,618,000 | 7,676,000 | 8,562,000 | |||||||
Number of Options Outstanding Employees, Exercisable ending | [1] | 295,000 | 295,000 | 7,618,000 | 7,618,000 | 7,676,000 | 7,676,000 | |||||
Consultant [Member] | ||||||||||||
Share-Based Compensation (Details) - Schedule of Stock Options Activities [Line Items] | ||||||||||||
Number of Options Outstanding Employees, Replacement | [1] | (331,000) | ||||||||||
Number of Options Outstanding Employees, Granted | [1] | |||||||||||
Number of Options Outstanding Employees, Forfeited | [1] | |||||||||||
Number of Options Outstanding Employees, Outstanding ending | [1] | 331,000 | 331,000 | 331,000 | ||||||||
Number of Options Outstanding Employees, Exercisable ending | [1] | 331,000 | 331,000 | 331,000 | 331,000 | |||||||
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Share-Based Compensation (Det_4
Share-Based Compensation (Details) - Schedule of Restricted Share Activities - Restricted Shares [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Restricted Share Activities [Line Items] | ||||
Number of Restricted Shares Granted, Beginning | [1] | 786,000 | 1,200,000 | 546,000 |
Weighted-Average Grant Date Fair Value, Beginning | $ 4.8435 | $ 4.8681 | $ 4.3444 | |
Number of Restricted Shares Granted, Replacement | [1] | 7,876,000 | ||
Weighted-Average Grant Date Fair Value, Replacement | $ 4.9821 | |||
Number of Restricted Shares Granted, Awarded | [1] | 703,000 | 124,000 | 997,000 |
Weighted-Average Grant Date Fair Value, Awarded | $ 6.4017 | $ 3.9252 | $ 5.0346 | |
Number of Restricted Shares Granted, Vested | [1] | (8,938,000) | (498,000) | (340,000) |
Weighted-Average Grant Date Fair Value, Vested | $ 5.0743 | $ 4.7458 | $ 4.5173 | |
Number of Restricted Shares Granted, Forfeited | [1] | (97,000) | (40,000) | (3,000) |
Weighted-Average Grant Date Fair Value, Forfeited | $ 5.5168 | $ 3.9504 | $ 4.6634 | |
Number of Restricted Shares Granted, Ending | [1] | 330,000 | 786,000 | 1,200,000 |
Weighted-Average Grant Date Fair Value, Ending | $ 5.0233 | $ 4.8435 | $ 4.8681 | |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Loss Per Share [Abstract] | |||
Weighted average basis | 24,777,946 | 35,185,538 | 28,672,636 |
Restricted shares | 523,097 | 1,032,167 | 941,263 |
Anti-dilutive effect | 822,952 | 7,975,942 | 8,202,538 |
Net Loss Per Share (Details) -
Net Loss Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Numerator: | ||||
Net loss | ¥ (159,590) | ¥ (91,022) | ¥ (146,461) | |
Less: accretions to preferred shares redemption value | (762,169) | (188,271) | 101,467 | |
Net loss attributable to Cheche’s ordinary shareholders | ¥ (921,759) | ¥ (279,293) | ¥ (44,994) | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding, basic (in Shares) | [1] | 45,415,205 | 31,780,394 | 33,831,133 |
Weighted average number of ordinary shares outstanding, diluted (in Shares) | [2] | 45,415,205 | 31,780,394 | 33,831,133 |
Basic net loss per share attributable to Cheche’s ordinary shareholders (in Yuan Renminbi per share) | ¥ (20.3) | ¥ (8.79) | ¥ (1.33) | |
Diluted net loss per share attributable to Cheche’s ordinary shareholders (in Yuan Renminbi per share) | ¥ (20.3) | ¥ (8.79) | ¥ (1.33) | |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Commitments and Contingencies (
Commitments and Contingencies (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Abstract] | ||
Future minimum lease | ¥ 1 | ¥ 2 |
Operating lease agreements due | 1 year |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 29, 2023 CNY (¥) | Jun. 14, 2023 CNY (¥) | May 06, 2023 CNY (¥) | Jun. 23, 2022 CNY (¥) | Jun. 13, 2022 CNY (¥) | Apr. 13, 2022 CNY (¥) | Feb. 13, 2022 CNY (¥) | Jan. 10, 2021 CNY (¥) | Oct. 10, 2019 CNY (¥) shares | Oct. 26, 2017 CNY (¥) | Jun. 30, 2021 shares | Oct. 31, 2020 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Oct. 26, 2020 CNY (¥) | Oct. 10, 2019 $ / shares | |
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||||||||||
Principal amount convertible debt | ¥ 6,000 | ¥ 10,000 | ¥ 50,000 | ¥ 10,000 | ¥ 3,000 | ¥ 4,000 | ¥ 3,000 | ¥ 65,000 | |||||||||||
Percentage of annual interest rate | 10% | ||||||||||||||||||
Number of ordinary shares (in Shares) | shares | 260,667 | ||||||||||||||||||
Percentage of equity interest | 14.24% | ||||||||||||||||||
Aggregated principal amount | ¥ 10,000 | ||||||||||||||||||
Convertible Debt | ¥ 55,000 | ||||||||||||||||||
Borrowings amount | $ | $ 3 | ||||||||||||||||||
Changes in fair value of amounts due to related party | ¥ (7,524) | ¥ (6,451) | ¥ (11,242) | ||||||||||||||||
Fair value changes of amounts due to related party due to own credit risk | (400) | ¥ (500) | 1,600 | ||||||||||||||||
Bank of Nanjing [Member] | |||||||||||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||||||||||
Amount of credit facility granted | 10,000 | ||||||||||||||||||
Fanhua Group [Member] | |||||||||||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||||||||||
Principal amount convertible debt | ¥ 80,000 | ¥ 130,000 | |||||||||||||||||
Percentage of annual interest rate | 10% | ||||||||||||||||||
Amount of accrued interest | ¥ 14,100 | ||||||||||||||||||
Number of ordinary shares (in Shares) | shares | 28,684,255 | ||||||||||||||||||
Conversion price (in Dollars per share) | $ / shares | $ 0.4766 | ||||||||||||||||||
Percentage of equity interest | 3.40% | ||||||||||||||||||
Extent principal balance of convertible debt | 50,000 | ||||||||||||||||||
Amount of corresponding interest | ¥ 15,000 | ||||||||||||||||||
Aggregated amount | 12,600 | ¥ 6,300 | |||||||||||||||||
Borrowings amount | ¥ 55,300 | ||||||||||||||||||
Maturity date | Oct. 26, 2024 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of Related Parties of the Group and their Relationships | 12 Months Ended |
Dec. 31, 2023 | |
Mr. Lei Zhang [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Related Parties of the Group and their Relationships [Line Items] | |
Relationship with the Group | Founder, Chairman of the Board of Directors and CEO |
Fanhua Group [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Related Parties of the Group and their Relationships [Line Items] | |
Relationship with the Group | Shareholder of the Company |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of Related Party Transaction - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Repayment of borrowings from related party | ¥ (12,610) | ¥ (13,000) | ||
Fanhua Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | 55,251 | ¥ 59,932 | ||
Mr. Lei Zhang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayment of borrowings from related party | [1] | (15,000) | ||
Fanhua Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayment of borrowings from related party | [2] | ¥ (12,610) | ¥ (13,000) | |
[1]For the years ended December 31, 2021, the Group was granted an RMB10.0 million credit facility from Bank of Nanjing that expired on April 22, 2021 to support its operations, which was guaranteed by Cheche Insurance and Mr. Lei Zhang. Please see Note 10(1) for additional details.[2]Corporate borrowings from Fanhua Group |
Related Party Balances and Tr_6
Related Party Balances and Transactions (Details) - Schedule of Estimate the Fair Value of the Corporate Borrowings | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Estimate the Fair Value of the Corporate Borrowings [Abstract] | |||
Discount rate | 11.87% | 12.70% | 15.01% |
Related Party Balances and Tr_7
Related Party Balances and Transactions (Details) - Schedule of Corporate Borrowings - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Corporate Borrowings Abstract | |||
Beginning Balance | ¥ 59,932 | ¥ 53,005 | ¥ 56,353 |
Ending Balance | 55,251 | 59,932 | 53,005 |
Change in fair value | 7,524 | 6,451 | 11,242 |
Change in other comprehensive income | 405 | ¥ 476 | (1,590) |
Repayment of amounts due to related party | ¥ (12,610) | ¥ (13,000) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Schedule of Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Warrant | ¥ 6,269 | ¥ 1,045 |
Corporate borrowings from Fanhua Group | 55,251 | 59,932 |
Active Market (Level 1) [Member] | ||
Liabilities: | ||
Warrant | 5,419 | |
Corporate borrowings from Fanhua Group | ||
Observable Input (Level 2) [Member] | ||
Liabilities: | ||
Warrant | ||
Corporate borrowings from Fanhua Group | ||
Unobservable Input (Level 3) [Member] | ||
Liabilities: | ||
Warrant | 850 | 1,045 |
Corporate borrowings from Fanhua Group | ¥ 55,251 | ¥ 59,932 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 18, 2024 | Mar. 01, 2024 | Jan. 31, 2024 |
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Restricted shares granted to employees | $ 389,292 | $ 95,989 | $ 177,000 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Millions | Dec. 31, 2023 CNY (¥) |
Restricted Net Assets Abstract | |
Statutory surplus annual rate | 10% |
Restricted portion amounted | ¥ 328.5 |
Additional Information___Cond_3
Additional Information — Condensed Financial Statements of the Parent Company (Details) - Schedule of Condensed Statements of Operations and Comprehensive Loss - Parent Company [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses: | |||
General and administrative expenses | ¥ (14,272) | ¥ (13,787) | ¥ (15,135) |
Total operating expense | (14,272) | (13,787) | (15,135) |
Other expense | |||
Interest income from VIE | 1,790 | 1,692 | 971 |
Share of loss of subsidiaries, VIE and subsidiaries of VIE | (149,974) | (77,878) | (131,142) |
Others, net | 3,024 | (1,049) | (1,152) |
Loss before income tax | (159,432) | (91,022) | (146,458) |
Income tax expense | (158) | (3) | |
Net loss | (159,590) | (91,022) | (146,461) |
Accretions to preferred shares redemption value | (762,169) | (188,271) | 101,467 |
Net loss attributable to Cheche’s ordinary shareholders | (921,759) | (279,293) | (44,994) |
Net loss | (159,590) | (91,022) | (146,461) |
Other comprehensive loss: | |||
Foreign currency translation adjustment, net of nil tax | 1,621 | 8,207 | (10,278) |
Fair value changes of amounts due to related party due to own credit risk | (405) | (476) | 1,590 |
Total comprehensive loss | (158,374) | (83,291) | (155,149) |
Accretions to preferred shares redemption value | (762,169) | (188,271) | 101,467 |
Total comprehensive loss to Cheche’s ordinary shareholders | ¥ (920,543) | ¥ (271,562) | ¥ (53,682) |
Additional Information___Cond_4
Additional Information — Condensed Financial Statements of the Parent Company (Details) - Schedule of Condensed Balance Sheets - Parent Company [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | ¥ 119,033 | ¥ 1,008 | |
Amount due from the subsidiaries of the Group | 1,520 | ||
Prepayments and other current assets | 1,118 | 287 | |
Total current assets | 121,671 | 1,295 | |
Non-current assets: | |||
Other non-current assets | 4,149 | ||
Amounts due from the subsidiaries of the Group | 638,290 | 639,110 | |
Total non-current assets | 642,439 | 639,110 | |
TOTAL ASSETS | 764,110 | 640,405 | |
Current liabilities: | |||
Accrued expenses and other current liabilities | 11,310 | 27,899 | |
Warrant | 850 | 1,045 | |
Deficit in subsidiaries, VIE and subsidiaries of VIE | 365,377 | 313,123 | |
Amounts due to the subsidiaries of the Group | 2,972 | ||
Total current liabilities | 380,509 | 342,067 | |
Non-current liabilities: | |||
Warrant | 5,419 | ||
Total non-current liabilities | 5,419 | ||
Total liabilities | 385,928 | 342,067 | |
Mezzanine equity | |||
Convertible redeemable preferred shares | 1,558,881 | ||
Total mezzanine equity: | 1,558,881 | ||
Shareholders’ (deficit)/equity: | |||
Ordinary shares | [1] | 5 | 2 |
Treasury stock | [1] | (1,025) | (1,025) |
Additional paid-in capital | [1] | 2,491,873 | 25 |
Accumulated deficit | (2,113,821) | (1,259,479) | |
Accumulated other comprehensive loss | 1,150 | (66) | |
Total shareholders’ (deficit)/equity | 378,182 | (1,260,543) | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY | ¥ 764,110 | ¥ 640,405 | |
[1] Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Additional Information___Cond_5
Additional Information — Condensed Financial Statements of the Parent Company (Details) - Schedule of Condensed Statements of Cash Flows - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Condensed Statements of Cash Flows [Line Items] | |||
Net cash used in operating activities | $ (20,885) | $ (6,352) | $ (22,275) |
Cash flows from investing activities | |||
Cash paid for investments in subsidiaries, VIE and subsidiaries of VIE | (172,030) | (304,759) | |
Placement of short-term investments | (63,757) | ||
Cash received from maturities of short-term investments | 63,757 | ||
Net cash used in investing activities | (108,273) | (368,516) | |
Cash flows from financing activities | |||
Proceeds from issuance of ordinary shares | 633,847 | ||
Cash payment for redemption of Series C convertible redeemable preferred shares | (137,202) | ||
Cash received from long-term borrowings from a third party | 19,127 | ||
Cash repayments of long-term borrowings to a third party | (11,840) | (7,287) | |
Net cash generated from/(used in) financing activities | 137,908 | (149,042) | 645,687 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1,002 | 11,725 | (2,958) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 118,025 | (251,942) | 251,938 |
Cash and cash equivalents and restricted cash at beginning of the year | 1,008 | 252,950 | 1,012 |
Cash and cash equivalents and restricted cash at end of the year | 119,033 | 1,008 | 252,950 |
Prime Impact Cayman LLC | |||
Cash flows from financing activities | |||
Proceeds from PIPE financing | 8,609 | ||
World Dynamic Limited | |||
Cash flows from financing activities | |||
Proceeds from PIPE financing | 93,436 | ||
Goldrock Holdings Limited | |||
Cash flows from financing activities | |||
Proceeds from PIPE financing | $ 35,863 |