Cover
Cover | 6 Months Ended |
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 424B3 |
Amendment Flag | false |
Entity Registrant Name | Cheche Group Inc. |
Entity Central Index Key | 0001965473 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | ¥ 133,117 | ¥ 243,392 | |
Short-term investments | 71,494 | 21,474 | |
Accounts receivable, net | 639,233 | 466,066 | |
Prepayments and other current assets | 52,912 | 49,321 | |
Total current assets | 896,756 | 780,253 | |
Non-current assets: | |||
Restricted cash | 5,000 | 5,000 | |
Property, equipment and leasehold improvement, net | 2,479 | 1,667 | |
Intangible assets, net | 7,000 | 8,050 | |
Right-of-use assets | 10,021 | 10,249 | |
Goodwill | 84,609 | 84,609 | |
Other non-current assets | 3,908 | 4,149 | |
Total non-current assets | 113,017 | 113,724 | |
TOTAL ASSETS | 1,009,773 | 893,977 | |
Current liabilities | |||
Accounts payable | 467,552 | 316,868 | |
Short-term borrowings | [1] | 15,000 | 20,000 |
Contract liabilities | 3,274 | 4,295 | |
Salary and welfare benefits payable | 73,313 | 73,609 | |
Tax payable | 875 | 950 | |
Accrued expenses and other current liabilities | 23,452 | 25,759 | |
Short-term lease liabilities | 4,730 | 3,951 | |
Warrant | 1 | 850 | |
Total current liabilities | 646,998 | 501,533 | |
Non-current liabilities | |||
Deferred tax liabilities | 1,750 | 2,013 | |
Long-term lease liabilities | 4,485 | 5,398 | |
Deferred revenue | 1,432 | 1,432 | |
Warrant | 2,921 | 5,419 | |
Total non-current liabilities | 10,588 | 14,262 | |
TOTAL LIABILITIES | 657,586 | 515,795 | |
Commitments and contingencies (Note 19) | |||
SHAREHOLDERS’ 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, 2023 and June 30, 2024, respectively; 75,440,709 and 77,846,610 shares (59,250,106 Class A ordinary shares and ID="xdx_900_eus-gaap--CommonStockSharesIssu | [2] | 5 | 5 |
Treasury stock | (1,025) | (1,025) | |
Additional paid-in capital | 2,518,989 | 2,491,873 | |
Accumulated deficit | (2,168,693) | (2,113,821) | |
Accumulated other comprehensive income | 2,911 | 1,150 | |
TOTAL SHAREHOLDERS’ EQUITY: | 352,187 | 378,182 | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 1,009,773 | 893,977 | |
Related Party [Member] | |||
Current liabilities | |||
Amounts due to related party | ¥ 58,801 | ¥ 55,251 | |
[1]On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - ¥ / shares | Jun. 30, 2024 | Dec. 31, 2023 | |
Ordinary shares, par value | [1] | ¥ 0.00001 | ¥ 0.00001 |
Ordinary shares, authorized | [1] | 5,000,000,000 | 5,000,000,000 |
Ordinary shares, shares issued | [1] | 77,846,610 | 75,440,709 |
Ordinary shares, shares outstanding | [1] | 77,846,610 | 75,440,709 |
Common Class A [Member] | |||
Ordinary shares, authorized | [1] | 4,000,000,000 | 4,000,000,000 |
Ordinary shares, shares issued | [1] | 59,250,106 | 59,250,106 |
Ordinary shares, shares outstanding | [1] | 59,250,106 | 59,250,106 |
Common Class B [Member] | |||
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). |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - CNY (¥) ¥ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Income Statement [Abstract] | |||
Net revenues | ¥ 1,638,986 | ¥ 1,610,371 | |
Cost and Operating expenses: | |||
Cost of revenues | (1,574,285) | (1,551,979) | |
Selling and marketing expenses | (41,661) | (47,755) | |
General and administrative expenses | (61,753) | (49,694) | |
Research and development expenses | (18,525) | (31,303) | |
Total cost and operating expenses | (1,696,224) | (1,680,731) | |
Operating loss | (57,238) | (70,360) | |
Other expenses: | |||
Interest income | 3,257 | 1,483 | |
Interest expense | (440) | (541) | |
Foreign exchange losses | (1,055) | (6,334) | |
Government grants | 234 | 7,240 | |
Changes in fair value of warrant | 3,376 | (127) | |
Changes in fair value of amounts due to related party | (3,286) | (3,836) | |
Others, net | 180 | 29 | |
Loss before income tax | (54,972) | (72,446) | |
Income tax credit | 100 | 258 | |
Net loss | (54,872) | (72,188) | |
Accretions to preferred shares redemption value | (109,991) | ||
Net loss attributable to the Cheche’s ordinary shareholders | (54,872) | (182,179) | |
Net loss | (54,872) | (72,188) | |
Other comprehensive income/ (loss) | |||
Foreign currency translation adjustments, net of nil tax | 2,016 | 7,410 | |
Fair value changes of amounts due to related party due to own credit risk | (254) | (300) | |
Total other comprehensive income | 1,762 | 7,110 | |
Total comprehensive loss | (53,110) | (65,078) | |
Accretions to preferred shares redemption value | (109,991) | ||
Comprehensive loss attributable to the Cheche’s ordinary shareholders | ¥ (53,110) | ¥ (175,069) | |
Net loss attributable to the Cheche’s ordinary shareholders per share | |||
Basic | [1] | ¥ (0.72) | ¥ (5.57) |
Diluted | [1] | ¥ (0.72) | ¥ (5.57) |
Weighted average number of ordinary shares* | |||
Basic | [1] | 76,264,603 | 32,705,091 |
Diluted | [1] | 76,264,603 | 32,705,091 |
Share-based compensation expenses included in | ¥ (27,116) | ¥ (33,875) | |
Cost of revenues | (6) | (72) | |
Selling and marketing expenses | (3,632) | (9,673) | |
General and administrative expenses | (22,145) | (15,355) | |
Research and development expenses | ¥ (1,333) | ¥ (8,775) | |
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Changes in Shareholders' (Deficit)/Equity (Unaudited) - CNY (¥) ¥ in Thousands | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | ||||
Balance at Dec. 31, 2022 | ¥ 2 | [1] | ¥ (1,025) | [1] | ¥ 25 | [1] | ¥ (66) | ¥ (1,259,479) | ¥ (1,260,543) | |
Balance, shares at Dec. 31, 2022 | [1] | 31,780,394 | (2,885,826) | |||||||
Net loss | [1] | [1] | [1] | (72,188) | (72,188) | |||||
Share-based compensation | [1] | [1] | 33,875 | [1] | 33,875 | |||||
Share-based compensation, shares | [1] | |||||||||
Ordinary share issuance | [1] | [1] | 18,930 | [1] | (18,930) | |||||
Ordinary share issuance, shares | [1] | 1,317,874 | ||||||||
Preferred shares redemption value accretion | [1] | [1] | (52,805) | [1] | (57,186) | (109,991) | ||||
Foreign currency translation adjustment | [1] | [1] | [1] | 7,410 | 7,410 | |||||
Fair value changes of amounts due to related party due to own credit risk | [1] | [1] | [1] | (300) | (300) | |||||
Balance at Jun. 30, 2023 | ¥ 2 | [1] | ¥ (1,025) | [1] | 25 | [1] | 7,044 | (1,407,783) | (1,401,737) | |
Balance, shares at Jun. 30, 2023 | [1] | 33,098,268 | (2,885,826) | |||||||
Balance at Dec. 31, 2023 | ¥ 5 | ¥ (1,025) | 2,491,873 | 1,150 | (2,113,821) | 378,182 | ||||
Balance, shares at Dec. 31, 2023 | 75,440,709 | (2,885,826) | ||||||||
Net loss | (54,872) | (54,872) | ||||||||
Share-based compensation | 27,116 | 27,116 | ||||||||
Share-based compensation, shares | 2,405,901 | |||||||||
Foreign currency translation adjustment | 2,016 | 2,016 | ||||||||
Fair value changes of amounts due to related party due to own credit risk | (255) | (255) | ||||||||
Balance at Jun. 30, 2024 | ¥ 5 | ¥ (1,025) | ¥ 2,518,989 | ¥ 2,911 | ¥ (2,168,693) | ¥ 352,187 | ||||
Balance, shares at Jun. 30, 2024 | 77,846,610 | (2,885,826) | ||||||||
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net Loss | ¥ (54,872) | ¥ (72,188) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of property, equipment and leasehold improvement | 623 | 514 |
Amortization of right-of-use asset | 2,784 | 4,480 |
Amortization of intangible assets | 1,050 | 1,050 |
Changes in fair value of warrant | (3,376) | 127 |
Changes in fair value of amounts due to related party | 3,286 | 3,836 |
Share-based compensation expense | 27,116 | 33,875 |
Provision of allowance for current expected credit losses | 1,430 | 485 |
Foreign exchange losses | 1,055 | 6,334 |
Loss on disposal of property, equipment and leasehold improvement | 7 | |
Deferred income tax | (263) | (262) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (174,597) | (27,255) |
Prepayments and other current assets | 4,092 | (1,729) |
Accounts payable | 150,684 | 53,990 |
Contract liabilities | (1,021) | 1,443 |
Salary and welfare benefits payable | (296) | 3,518 |
Tax payable | (75) | (1,077) |
Accrued expenses and other current liabilities | (2,168) | (9,907) |
Lease liabilities | (134) | (4,825) |
Net cash used in operating activities | (44,675) | (7,591) |
Cash flows from investing activities: | ||
Purchase of property, equipment and leasehold improvement | (1,442) | (171) |
Proceeds from disposal of property, equipment and intangible assets | 4 | |
Loan provided to a third party (Note 5) | (10,000) | |
Placement of short-term investments | (85,654) | (14,452) |
Cash received from maturities of short-term investments | 35,634 | 34,823 |
Net cash generated from/(used in) investing activities | (61,462) | 20,204 |
Cash flows from financing activities: | ||
Cash received from short-term borrowings from bank (Note 9) | 15,000 | 20,000 |
Cash repayments of short-term borrowings to bank (Note 9) | (20,000) | |
Net cash generated from/(used in) financing activities | (5,000) | 20,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 862 | 2,394 |
Net increase /(decrease) in cash and cash equivalents and restricted cash | (110,275) | 35,007 |
Cash and cash equivalents and restricted cash at beginning of the period | 248,392 | 119,945 |
Cash and cash equivalents and restricted cash at end of the period | 138,117 | 154,952 |
Reconciliation to amounts on consolidated balance sheet: | ||
Restricted cash at end of the period | 5,000 | 5,000 |
Cash and cash equivalents at end of the period | 133,117 | 149,952 |
Supplemental disclosures of cash flow information: | ||
Cash payments of interest expense | (296) | (69) |
Cash paid for income tax | (162) | (4) |
Supplemental schedule of non-cash investing and financing activities: | ||
Accretions to preferred shares redemption value | 109,991 | |
Right-of-use assets obtained in exchange for obligations | ¥ 5,076 | ¥ 172 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) | ¥ (54,872) | ¥ (72,188) |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 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”) and technical service and other services in China. The following sets forth the Company’s consolidated subsidiaries, VIE and subsidiaries of VIE are as follows: Schedule of Consolidated Subsidiaries,VIE and Subsidiaries of VIE Percentage of direct or Place and indirect year of economic Principal Subsidiaries incorporation ownership activities Cheche Technology Inc. (“CCT”) Cayman Islands, 2018 100 % Investment holding Cheche Technology (HK) Limited (“Cheche HK”) Hong Kong, China, 2018 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, 2018 100 Technical support and consulting services Baodafang Technology Co., Ltd. (“Baodafang”) Beijing, China, 2020 100 Technology service and SaaS services Percentage of direct or Place and indirect year of economic Principal VIE incorporation interest activities Beijing Cheche Technology Co., Ltd. (“Beijing Cheche”) Beijing, China, 2014 100 Technology service Percentage of Place and direct or year of indirect incorporation/ economic Principal Subsidiaries of VIE acquisition interest activities Cheche Insurance Sales & Service Co., Ltd. (“Cheche Insurance”) Guangzhou, China, 2017 100 Insurance brokerage Huicai Insurance Brokerage Co., Ltd. Beijing, China, 2016 100 Dormant Cheche Zhixing (Ningbo) Car Service Co., Ltd. Ningbo, China, 2019 100 Dormant * The WFOE has 100 1. Organization and Principal Activities (Continued) 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 unaudited interim condensed 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 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). 1. Organization and Principal Activities (Continued) Contractual arrangements with VIE (Continued) 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 1. Organization and Principal Activities (Continued) Contractual arrangements with VIE (Continued) 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. 1. Organization and Principal Activities (Continued) Risks in relation to the VIE structure (Continued) 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. 1. Organization and Principal Activities (Continued) Risks in relation to the VIE structure (Continued) 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 RMB 65.3 million and RMB 65.3 million as of December 31, 2023 and June 30, 2024, as well as certain non-distributable statutory reserves amounting to approximately nil and nil as of December 31, 2023 and June 30, 2024. As the VIE are incorporated as a limited liability company under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the VIE. As the Group is conducting certain business in the PRC through the VIE, the Company 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, which could expose the Group to a loss. 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. 1. Organization and Principal Activities (Continued) Risks in relation to the VIE structure (Continued) The following unaudited interim condensed consolidated financial information of the VIE after the elimination of inter-company transactions between the VIE and its subsidiaries as of December 31, 2023 and June 30, 2024 and for the six months ended June 30, 2023 and 2024 was included in the accompanying unaudited interim condensed consolidated financial statements of the Group as follows: Schedule of Consolidated Financial Statements As of December 31, As of June 30, 2023 2024 RMB RMB ASSETS Current assets: Cash and cash equivalents 86,330 70,463 Short-term investment 226 226 Accounts receivable, net 445,941 528,942 Prepayments and other current assets 41,695 47,857 Amounts due from intra-Group companies 4,575 3,168 Total current assets 578,767 650,656 Non-current assets: Restricted cash 5,000 5,000 Property, equipment and leasehold improvement, net 1,221 2,197 Intangible assets, net 8,050 7,000 Right-of-use assets 7,067 8,305 Goodwill 84,609 84,609 Total non-current assets 105,947 107,111 TOTAL ASSETS 684,714 757,767 LIABILITIES Current liabilities: Accounts payable 283,547 342,720 Short-term borrowings 10,000 5,000 Contract liabilities 626 3 Salary and welfare benefits payable 57,878 56,344 Tax payable 624 519 Amounts due to related party 55,251 58,801 Accrued expenses and other current liabilities 11,504 14,360 Short-term lease liabilities 2,304 3,363 Amounts due to intra-Group companies 158,648 171,492 Total current liabilities 580,382 652,602 Non-current liabilities: Deferred tax liabilities 2,013 1,750 Long-term lease liabilities 4,550 4,485 Deferred revenue 1,432 1,432 Amounts due to intra-Group companies 244,471 236,292 Total non-current liabilities 252,466 243,959 TOTAL LIABILITIES (without recourse to the primary beneficiary) 832,848 896,561 1. Organization and Principal Activities (Continued) Risks in relation to the VIE structure (Continued) Schedule of Operation 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Net revenues - earned from external parties 1,539,010 1,377,227 - earned from intra-Group companies 6,289 4,717 Total revenues 1,545,299 1,381,944 Cost of revenues and operating expenses - arising from external parties transactions (1,574,436 ) (1,412,042 ) - arising from intra-Group transactions (717 ) (743 ) Total cost of revenues and operating expenses (1,575,153 ) (1,412,785 ) Net loss (35,985 ) (35,394 ) Schedule of Cash Flow 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cash flows from operating activities: Net cash generated from transactions with intra-Group companies 38,126 89,612 Net cash provided by /(used in) transactions with external parties 22,406 (9,625 ) Net cash generated from operating activities 60,532 79,987 Net cash used in transactions with external parties (100 ) (11,433 ) Net cash used in investing activities (100 ) (11,433 ) Net cash used in transactions with intra-Group companies (15,000 ) (79,421 ) Net cash generated from /(used in)transactions with external parties 10,000 (5,000 ) Net cash used in financing activities (5,000 ) (84,421 ) Net increase /(decrease) in cash and cash equivalents 55,432 (15,867 ) Liquidity The Group has incurred recurring operating losses since its inception, including net loss of RMB 72.2 54.9 7.6 44.7 2,113.8 2,168.7 1. Organization and Principal Activities (Continued) Liquidity (Continued) 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 13 and Note 9 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$ 19.2 137.9 1.2 13.0 5.0 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2 Significant Accounting Policies a) Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2024 and the results of its operations and its cash flows for the six months ended June 30, 2024 and 2023. The results for the six months ended June 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024, any other interim periods, or any future year or period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements as of and for the year ended December 31, 2023 and notes thereto also included herein. Reclassification Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The Company reclassified technical service income of RMB 1.3 million for the six months ended June 30, 2023, 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 unaudited interim condensed consolidated financial statements as of and for the six months ended June 30, 2024 and 2023 are summarized below. 2 Significant Accounting Policies (Continued) b) Principles of consolidation The unaudited interim condensed 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 unaudited interim condensed 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 unaudited interim condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, provision of current expected credit losses of receivables, the impairment of goodwill, 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 unaudited interim condensed 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 unaudited interim condensed 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 period. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the unaudited interim condensed 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 unaudited interim condensed consolidated statements of operations and comprehensive loss. 2. Significant Accounting Policies (Continued) 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, 2023 and June 30, 2024, there were cash at bank denominated in US dollars amounting to approximately US$ 18.2 million (RM 129.3 million) and US$ 7.8 million (RMB 55.8 million), respectively, and denominated in RMB amounting to approximately RMB 114.1 million and RMB 77.3 million, respectively. As of December 31, 2023 and June 30, 2024, the Group had approximately RMB 124.4 89.9 51.1 67.5 5.0 5.0 2. Significant Accounting Policies (Continued) 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, 2023 and June 30, 2024, the Group had approximately RMB 21.5 71.5 0.16 0.31 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, 2023 and June 30, 2024, the Group’s accounts receivable consists primarily of receivables from insurance transaction services customers. The Group recorded current expected credit loss expense of approximately RMB 0.5 1.4 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: Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment Leasehold improvement Shorter of the lease term or estimated economic life Furniture and office equipment 3 5 Electronics equipment and others 3 6 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 unaudited interim condensed consolidated statements of operations and comprehensive loss. 2. Significant Accounting Policies (Continued) 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: Schedule of Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives Software 3 5 Licenses 10 Agency agreements 2 Channel relationship 2 Licenses comprise insurance brokerage licenses, which has an estimated useful life of 10 5 2 2 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 periods 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, 2023 and June 30, 2024 were related to its acquisition of Cheche Insurance (previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”) in October 2017. 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. 2. Significant Accounting Policies (Continued) l) Goodwill (Continued) 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 six months ended June 30, 2023 and 2024. At December 31, 2023 and June 30, 2024, goodwill was RMB 84.6 84.6 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 unaudited interim condensed 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 and technical service and other services. 2. Significant Accounting Policies (Continued) n) Revenue recognition (Continued) 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 service 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 service to third-party companies. The Group charges third-party companies service fee for developing software for them. Technical service 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 these 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. 2. Significant Accounting Policies (Continued) n) Revenue recognition (Continued) Contract Balances and Accounts Receivable Contract liabilities primarily consist of customer advances which relates to the payments received for SaaS and technical service in advance of performance under the contract. The increase in contract liabilities over the periods 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 service. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. During the six months ended June 30, 2023 and 2024, the Group recognized revenue amounted to RMB 0.5 2.6 0.9 4.3 During the six months ended June 30, 2023 and 2024, 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 period. 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) amortization and depreciation expenses, iv) salary and welfare benefits, v) cloud service fees, and vi) tax and surcharges and others. These costs are charged to the unaudited interim condensed 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, share-based compensation expenses 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, share-based compensation expenses to the Group’s sales and marketing personnel, and amortization expenses. 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.. 2. Significant Accounting Policies (Continued) 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 RMB 1.4 million and RMB 1.4 million for the year ended December 31, 2023 and the six months ended June 30, 2024 being the unamortized portion of a grant of nil and nil the Group received in the year ended December 31, 2023 and the six months ended June 30, 2024, respectively, for long-term operation. As of December 31, 2023 and June 30, 2024, the Group has not fulfilled the conditions attached to the government grants. As the Group does not expect to fulfill the conditions within one year, the grant is recorded as a non-current deferred revenue. 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, 2023 and June 30, 2024. 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. 2. Significant Accounting Policies (Continued) 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 unaudited interim condensed 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 RMB 56.2 million and RMB 60.7 million as of December 31, 2023 and June 30, 2024. 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 unaudited interim condensed 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. 2. Significant Accounting Policies (Continued) w) Taxation (Continued) 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 unaudited interim condensed consolidated balance sheet and under other expenses in its unaudited interim condensed consolidated statements of operations and comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the year ended December 31, 2023, and as of and for the six months period ended June 30, |
Reverse Recapitalization
Reverse Recapitalization | 6 Months Ended |
Jun. 30, 2024 | |
Reverse Recapitalization | |
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 455,818,627 479,099,566 676,533,464 253,181,563 49,692,232 253,181,563 18,596,504 865,227 63,552 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 1,300,000 500,000 10.00 5.0 3. Reverse Recapitalization (Continued) The number of ordinary shares issued immediately following the consummation of the Reverse Recapitalization were as follows: Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital Number of shares CCT’s ordinary shares outstanding at December 31, 2022 432,673,255 CCT’s ordinary shares issued to the Preferred Shareholders (Note 13) 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) 450,615,461 479,099,566 33,098,268 35,190,468 conversion ratio of 13.6145:1 (2) On the Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 4,341,052 4,716,245 (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 1,300,000 500,000 10.00 |
Accounts receivable, net
Accounts receivable, net | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Accounts receivable, net | 4. Accounts receivable, net Accounts receivable, net is consisted of the following: Schedule of Accounts Receivable, Net December 31, 2023 June 30, 2024 RMB RMB Accounts receivable, gross: 468,296 642,893 Less: allowance for current expected credit losses (2,230 ) (3,660 ) Accounts receivable, net 466,066 639,233 The following table summarizes the movement of the Group’s allowance for current expected credit losses: Schedule of Allowance for Current Expected Credit Losses For the six months ended June 30 2023 2024 RMB RMB Balance at the beginning of the period (1,027 ) (2,230 ) Additions (485 ) (1,430 ) Write-offs - - Balance at the end of the period (1,512 ) (3,660 ) |
Prepayments and other current a
Prepayments and other current assets | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and other current assets | 5. Prepayments and other current assets The following is a summary of prepayments and other current assets: Schedule of Prepayments and Other Current Assets December 31, 2023 June 30, 2024 RMB RMB Deductible Value Added Tax (“VAT”) 39,914 27,884 Loan to a third party (i) - 10,000 Service fees (ii) 4,504 8,916 Rental and other deposits 2,449 2,505 Rental expense for other leases with period less than one year 630 875 Staff advance 230 649 Others 1,594 2,083 Balance at the end of the year 49,321 52,912 (i) The Group entered into a loan agreement with Baohe Holdings Limited (“Baohe”) with the loan term from June 15, 2024 to July 15, 2024, for Baohe’s business operation purpose, which was guaranteed by Dingfengcheng Chen’s Rice Noodles (Beijing) Co., Ltd. The principal amount of the loan is RMB 10.0 5 (ii) 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 | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [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: Schedule of Property, Equipment and Leasehold Improvement, Net December 31, 2023 June 30, 2024 RMB RMB Leasehold improvement 3,697 4,573 Furniture and office equipment 1,569 1,342 Furniture and Office Equipment [Member] 1,569 1,342 Electronic equipment and others 4,179 4,507 Electronic Equipment and Others [Member] 4,179 4,507 Total property, equipment and leasehold improvement 9,445 10,422 Less: accumulated depreciation (7,778 ) (7,943 ) Property, equipment and leasehold improvement, net 1,667 2,479 Depreciation expenses were RMB 0.5 0.6 |
Intangible assets, net
Intangible assets, net | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | 7. Intangible assets, net The following table summarizes the Group’s intangible assets, net: Schedule of Intangible Assets, Net December 31, 2023 June 30, 2024 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 Gross carrying amount 58,916 58,916 Less: accumulated amortization Software (916 ) (916 ) Software [Member] (916 ) (916 ) Licenses (12,950 ) (14,000 ) Licenses [Member] (12,950 ) (14,000 ) Agency agreements (18,000 ) (18,000 ) Channel relationship (19,000 ) (19,000 ) Channel Relationship [Member] (19,000 ) (19,000 ) Less: accumulated amortization (19,000 ) (19,000 ) Total intangible assets, net 8,050 7,000 Amortization expense for the six months ended June 30, 2023 and 2024 were RMB 1.1 1.1 The estimated amortization expenses for each of the following periods are as follows: Schedule of Estimated Amortization Expenses June 30, 2024 RMB Remainder of 2024 1,050 2025 2,100 2026 2,100 2027 1,750 Total 7,000 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Leases | 8. 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, 2023 and June 30, 2024, 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, 2023 and June 30, 2024: Schedule of Aggregate Right of Use Assets and Related Lease Liabilities December 31, 2023 June 30, 2024 RMB RMB Operating lease right-of-use assets 10,249 10,021 Short-term operating lease liabilities (3,951 ) (4,730 ) Long-term operating lease liabilities (5,398 ) (4,485 ) Total operating leased liabilities (9,349 ) (9,215 ) 8. Leases (Continued) The weighted average lease term and weighted average discount rate as of December 31, 2023 and June 30, 2024 were as follows: Weighted Average Lease Term and Weighted Average Discount Rate December 31, 2023 June 30, 2024 RMB RMB Weighted average lease term: Operating leases 3.02 2.57 Weighted average discount rate: Operating leases 3.91 % 3.58 % The components of lease expenses for the six months ended June 30, 2023 and 2024 were as follows: Schedule of Lease Expenses 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Operating lease cost 4,345 2,975 Cost of other leases with period less than one year 883 2,477 Total 5,228 5,452 Supplemental cash flow information related to leases for the six months ended June 30, 2023 and 2024 were as follows: Schedule of Supplemental Cash Flow Information Related to Leases 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 4,896 2,776 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 172 5,076 Maturities of lease liabilities at December 31, 2023 and June 30, 2024, respectively: Schedule of Maturities of Lease Liabilities December 31, 2023 June 30, 2024 RMB RMB 2024/Remainder of 2024 4,261 2,616 2025 2,867 3,930 2026 1,325 1,984 2027 1,432 1,118 Total remaining undiscounted lease payments 9,885 9,648 Less: interest (536 ) (433 ) Total present value of operating lease liabilities 9,349 9,215 Less: short-term operating lease liabilities (3,951 ) (4,730 ) Long-term operating lease liabilities 5,398 4,485 |
Short-term borrowings
Short-term borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 9. Short-term borrowings The following table summarizes the Group’s outstanding short-term borrowings as of December 31, 2023 and June 30, 2024, respectively Schedule of Outstanding Short-Term Borrowings December 31, 2023 June 30, 2024 RMB RMB Bank borrowings 20,000 15,000 (1) Bank borrowings Schedule of Bank Borrowings Maturity date Principal amount Interest rate per annum December 31, June 30, Bank of Beijing (i) February 13, 2024 3,000 3.65 % 3,000 - Bank of Beijing (i) April 13, 2024 4,000 3.65 % 4,000 - Bank of Beijing (i) June 13, 2024 3,000 3.65 % 3,000 - Bank of Beijing (ii) June 28, 2024 10,000 3.55 % 10,000 - Industrial Bank Co., Ltd (iii) May 30, 2025 5,000 3.10 % - 5,000 Bank of Beijing (iv) June 6, 2025 10,000 3.35 % - 10,000 Total short-term borrowings 20,000 15,000 (i) On June 23, 2022, the Group entered into an RMB 10.0 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 RMB 3.0 million, RMB 4.0 million and RMB 3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB 4.0 million, RMB 3.0 million, and RMB 3.0 million were repaid on February 7, 2024, April 15, 2024 and June 13, 2024, respectively. There are no financial covenants for the credit facility. (ii) On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. (iii) On May 22, 2024, the Group entered into an RMB 10.0 million credit facility with the Industrial Bank Co., Ltd that will expire on May 21, 2025 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility, the Group drew down RMB 5.0 million on May 31, 2024. (iv) On June 20, 2024, the Group entered into an RMB 50.0 million credit facility with the Bank of Beijing that will expire on June 19, 2026 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB 10.0 million on June 27, 2024. There are no financial covenants for the credit facility. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2024 | |
Taxation | |
Taxation | 10. 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 Hong Kong [Member] 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 China China [Member] 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 15 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 loss before income taxes are as follows (in thousands): Schedule of Income Tax Expense 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Loss before income tax expense Loss from Chinese mainland operations (65,994 ) (47,786 ) Loss from non-Chinese mainland operations (6,452 ) (7,186 ) Total Loss before income tax expense from operations (72,446 ) (54,972 ) Income tax benefit applicable to Chinese mainland operations Deferred tax 262 263 Subtotal income tax benefit applicable to Chinese mainland operations 262 263 Non-Chinese mainland withholding tax expense (4 ) (163 ) Total income tax benefit from operations 258 100 10. Taxation (Continued) b) Withholding income tax The enterprise income tax (“EIT”) Law also imposes a withholding income tax of 10 5 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, 2023 and June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Tax payable | 11. Tax payable The Group’s subsidiaries, VIE and subsidiaries of VIE incorporated in China are subject to 6 The following is a summary of tax payable as of as of December 31, 2023 and June 30, 2024: Schedule of Tax Payable December 31, 2023 June 30, 2024 RMB RMB VAT payables 43 98 Individual income tax payables 770 703 Construction tax payables 52 37 Educational development payables 37 27 Others 48 10 Total 950 875 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | 12. Accrued expenses and other current liabilities The following is a summary of accrued expenses and other current liabilities as of December 31, 2023 and June 30, 2024: Schedule of Accrued Expenses and Other Current Liabilities December 31, 2023 June 30, 2024 RMB RMB Professional service fees 16,490 9,812 Refund liability 7,703 7,626 Accrued expenses 789 2,933 Payables related to other service fees - 2,101 Others 777 980 Total 25,759 23,452 |
Preferred shares
Preferred shares | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Preferred shares | 13. 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. Series Pre-A financing In July 2015, Beijing Cheche issued 146,903 30.0 108,891 January 2019, in connection with the Reorganization, CCT issued 5,444,575 In October 2019, 1,015,462 6.0 4,429,111 Series A financing In July 2016, Beijing Cheche issued 91,814 91,814 25.0 25.0 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 4,590,703 On May 23, 2019, CCT issued 4,590,703 4,590,703 0.4 0.4 Series B financing In August 2017, Beijing Cheche issued 6,886 6,886 55,088 91,814 7.5 7.5 60.0 100.0 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 344,303 344,303 In January 2019, in connection with the Reorganization, CCT issued 2,754,422 4,590,704 On May 23, 2019, CCT issued 344,303 344,303 0.1 0.1 13. Preferred shares (Continued) Series C financing January 2019, CCT issued 1,877,135 17.4 150,171 In April 2021, CCT issued 1,955,000 15.0 782,000 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 10% 27,600,750 19.7 Series D1 financing In June 2021, CCT issued 399,496 20.0 Series D2 financing In June 2021, CCT issued 651,667 113,390 5.0 0.9 260,667 Series D3 financing In July 2021, CCT issued 8,341,333 2,085,333 64.0 16.0 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. 13. Preferred shares (Continued) 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 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 2,029,469 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% 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. 13. Preferred shares (Continued) 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 six months ended June 30, 2023. The accretion of Preferred Shares was RMB 110.0 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. 13. Preferred shares (Continued) The Group’s preferred shares activities for the six months ended June 30, 2023 are summarized below: Schedule of Preferred Shares Activities Balance as of Accretions to Preferred Shares redemption value Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - 4,429,111 Amount 151,303 15,505 166,808 Series A Preferred shares Number of shares 9,181,406 - 9,181,406 Amount 333,797 32,040 365,837 Series B Preferred shares Number of shares 8,033,732 - 8,033,732 Amount 320,036 22,513 342,549 Series C Preferred shares Number of shares 1,955,000 - 1,955,000 Amount 115,356 5,917 121,273 Series D1 Preferred shares Number of shares 399,496 - 399,496 Amount 22,639 1,199 23,838 Series D2 Preferred shares Number of shares 765,057 - 765,057 Amount 39,144 2,277 41,421 Series D3 Preferred shares Number of shares 10,426,666 - 10,426,666 Amount 576,606 30,540 607,146 Total Number of shares* 35,190,468 - 35,190,468 Total amount 1,558,881 109,991 1,668,872 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | 14. 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: Schedule of Key Revenues Streams 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Insurance transaction services income 1,598,150 1,626,435 SaaS and technical service income 11,472 12,000 Others 749 551 Others [Member] Total 1,610,371 1,638,986 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 | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Cost of revenues | 15. 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, amortization and depreciation expenses, salary and welfare benefits, cloud service fees, tax and surcharges and others. These costs are charged to the unaudited interim condensed consolidated statements of operations and comprehensive loss as incurred. The following table presents the Group’s cost of revenue for the six months ended June 30, 2023 and 2024: Schedule of Cost of Revenues 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cost of referral partners 1,482,767 1,519,027 Service fee paid to third-party payment platforms 65,237 49,617 Salary and welfare benefits 1,424 3,054 Amortization and depreciation 1,197 1,050 Cloud service fees 650 488 Tax and surcharges and others 704 1,049 Total 1,551,979 1,574,285 |
Employee benefits
Employee benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee benefits | 16. 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 six months ended June 30, 2023 and 2024: Schedule of Employee Welfare Benefits Expenses 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Contributions to medical and pension schemes 10,438 9,910 Other employee benefits 3,519 3,221 Total 13,957 13,131 *The amounts of “Contributions to medical and pension schemes” and “Other employee benefits” for the six months ended June 30, 2023 have been revised to correct for a formula error in the preparation of this disclosure. The errors were disclosure only and did not have any impact to the previously reported unaudited interim condensed 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: As Previously Reported [Member] Adjustment [Member] As Revised [Member] For the six months ended 2023 As Previously Reported Adjustment As Revised RMB RMB RMB Contributions to medical and pension schemes 7,117 3,321 10,438 Other employee benefits 194 3,325 3,519 Total 7,311 6,646 13,957 |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | 17. 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. 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 unaudited interim condensed 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 RMB 26.2 million and RMB 26.3 million as cost of revenues and expenses immediately for those vested options. 17. Share-based compensation (Continued) (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: Schedule of Option Pricing Model and Adopted Fair Value Per Share For the six months ended June 30, Options* 2023 2024 Fair value per share (US$) - * 0.73 ~ 5.56 Discount rate (after tax) - * Not applicable Risk-free interest rate - * 3.99 4.36 Expected volatility - * 64.67 65.68 Contractual term (in years) - * 10 Discount for lack of marketability (“DLOM”) - * Not applicable * There were no grants for options for the six months period ended June 30, 2023. For the six months ended June 30, Restricted shares 2023 2024 Fair value per share (US$) 0.36 Not applicable Discount rate (after tax) 15.5 % Not applicable Discount for lack of marketability (“DLOM”) 10 % Not applicable 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 17. Share-based compensation (Continued) (c) Stock options activities The following table presents a summary of the Company’s stock options activities for the six months ended June 30, 2023 and 2024. Schedule of Stock Options Activities Number of Options Outstanding* Weighted Average exercise price Weighted average remaining contractual life Aggregated intrinsic value Employees Consultant Total (in thousands) (in thousands) (in thousands) US$ (in years) RMB in thousands Outstanding at January 1, 2023 7,618 331 7,949 1.7905 4.67 65,572 Replacement (6,381 ) - (6,381 ) 0.9353 - - Granted - - - - - - Forfeited (9 ) - (9 ) 8.1442 - - Outstanding at June 30, 2023 1,228 331 1,559 5.2484 4.17 86 Exercisable as of June 30, 2023 1,228 331 1,559 5.2484 4.17 86 Outstanding at January 1, 2024 573 - 573 0.6675 9.73 23,775 Replacement (22 ) - (22 ) 7.4245 - - Granted 599 - 599 0.1000 - - Forfeited (9 ) - (9 ) 5.3707 - - Outstanding at June 30, 2024 1,141 - 1,141 0.1963 9.64 5,979 Exercisable as of June 30, 2024 519 - 519 0.3076 9.60 2,734 * 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 six months ended June 30, 2023 and 2024 were RMB 5.2075 0.7651 31.7602 4.3704 17. Share-based compensation (Continued) (d) Restricted shares activities The following table sets forth the summary of restricted share activities for the six months ended June 30, 2023 and 2024: Schedule of Restricted Share Activities Number of Restricted Shares Granted* Weighted-Average Grant Date Fair Value (in thousands) (US$) Unvested as of January 1, 2023 786 4.8435 Replacement - - Awarded 6,381 4.8590 Vested (6,527 ) 4.8481 Forfeited (93 ) 5.5574 Outstanding at June 30, 2023 547 4.8427 Unvested as of January 1, 2024 330 5.0223 Replacement 22 4.2700 Awarded 1,546 1.6495 Vested (1,651 ) 1.8351 Forfeited (88 ) 5.0458 Outstanding at June 30, 2024 159 5.2073 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Net loss per share
Net loss per share | 6 Months Ended |
Jun. 30, 2024 | |
Net loss attributable to the Cheche’s ordinary shareholders per share | |
Net loss per share | 18. Net loss per share For the six months ended June 30, 2023 and 2024, 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 six months ended June 30, 2023 and 2024, 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. 18. Net loss per share (Continued) The following table sets forth the computation of basic and diluted net loss per share for the six months ended June 30, 2023 and 2024: Schedule of Basic and Diluted Net Loss Per Share 2023 2024 For the six months ended June 30, 2023 2024 Numerator: Net loss (72,188 ) (54,872 ) Less: accretions to preferred shares redemption value (109,991 ) - Net loss attributable to Cheche’s ordinary shareholders (182,179 ) (54,872 ) Denominator: Weighted average number of ordinary shares 32,705,091 76,264,603 Weighted average number of ordinary shares * 32,705,091 76,264,603 Basic net loss per share attributable to Cheche’s ordinary shareholders (5.57 ) (0.72 ) Diluted net loss per share attributable to Cheche’s ordinary shareholders (5.57 ) (0.72 ) * For the six months ended June 30, 2023 and 2024, the Company had potential ordinary shares, including preferred shares, restricted shares and share options. On a weighted average basis, 33,480,380 nil 7,120,212 253,199 1,561,711 766,667 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies (a) Commitments The Group leases office space under non-cancelable operating lease agreements, which expire at various dates through June 30, 2024. As of December 31, 2023 and June 30, 2024, future minimum lease of RMB 1.0 1.7 one year (b) Litigation As of December 31, 2023 and June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 20. Related Party Balances and Transactions The table below sets major related parties of the Group and their relationships with the Group: Schedule of Related Parties of the Group and their Relationships Entity or individual name Relationship with the Group Fanhua Group Shareholder of the Company 20. Related Party Balances and Transactions (Continued) The outstanding balance due to related parties as of December 31, 2023 and June 30, 2024 were as follows: Schedule of Related Party Transaction As of As of Balances with related parties December 31, 2023 June 30, 2024 RMB RMB Amounts due to related parties Fanhua Group (i) 55,251 58,801 Amounts due to related parties 55,251 58,801 (i) Corporate borrowings from Fanhua Group The Group issued a convertible loan in the principal amount of RMB 130.0 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 RMB 80.0 14.1 28,684,255 0.4766 3.4 50.0 15.0 10 65 10 55.0 In 2021, the Group repaid the aggregated principal amount of RMB 6.3 None In 2023, the Group repaid the aggregated amount of RMB 12.6 55.3 October 26, 2024 As of June 30, 2024, the balance of the Corporate borrowings from Fanhua Group was RMB 58.8 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 unaudited interim condensed consolidated statements of operations and comprehensive loss of RMB 3.8 3.3 0.3 0.3 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 period. 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: Schedule of Estimate the Fair Value of the Corporate Borrowings As of As of December 31, 2023 June 30, 2024 Discount rate 11.87 % 11.17 % 20. Related Party Balances and Transactions (Continued) (i) Corporate borrowings from Fanhua Group (Continued) The movement of Corporate borrowings from Fanhua Group is as follows: Schedule of Corporate Borrowings Corporate Borrowings RMB Balance as of January 1, 2023 59,932 Change in fair value 3,836 Change in other comprehensive income 300 Others 10 Balance as of June 30, 2023 64,068 Balance as of January 1, 2024 55,251 Change in fair value 3,286 Change in other comprehensive income 254 Others 10 Balance as of June 30, 2024 58,801 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 21. Fair Value Measurement Assets and liabilities measured at fair value on a nonrecurring basis As of December 31, 2023 and June 30, 2024, 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. They are 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 six months ended June 30, 2023 and 2024. The following table summarizes the Company’s financial liabilities measured and recorded at fair value on recurring basis as of December 31, 2023 and June 30, 2024: Schedule of Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis As of December 31, 2023 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant 5,419 - 850 6,269 Corporate borrowings from Fanhua Group - - 55,251 55,251 As of June 30, 2024 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant 2,921 - 1 2,922 Corporate borrowings from Fanhua Group - - 58,801 58,801 21. Fair Value Measurement (Continued) 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 | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events In July 2024, the Group received the aggregated principal of RMB 10.0 million and interest of RMB 0.03 In August 2024, the Group repaid the aggregated principal of RMB 10.0 million to Fanhua Group. In August 2024, 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, 2026. |
Restricted Net Assets
Restricted Net Assets | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Restricted Net Assets | 23. 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 RMB 328.5 million and RMB 342.6 million as of December 31, 2023 and June 30, 2024. 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | a) Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2024 and the results of its operations and its cash flows for the six months ended June 30, 2024 and 2023. The results for the six months ended June 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024, any other interim periods, or any future year or period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements as of and for the year ended December 31, 2023 and notes thereto also included herein. Reclassification Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The Company reclassified technical service income of RMB 1.3 million for the six months ended June 30, 2023, 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 unaudited interim condensed consolidated financial statements as of and for the six months ended June 30, 2024 and 2023 are summarized below. 2 Significant Accounting Policies (Continued) |
Principles of consolidation | b) Principles of consolidation The unaudited interim condensed 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 unaudited interim condensed 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 unaudited interim condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, provision of current expected credit losses of receivables, the impairment of goodwill, 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 unaudited interim condensed 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 unaudited interim condensed 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 period. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the unaudited interim condensed 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 unaudited interim condensed consolidated statements of operations and comprehensive loss. 2. Significant Accounting Policies (Continued) |
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, 2023 and June 30, 2024, there were cash at bank denominated in US dollars amounting to approximately US$ 18.2 million (RM 129.3 million) and US$ 7.8 million (RMB 55.8 million), respectively, and denominated in RMB amounting to approximately RMB 114.1 million and RMB 77.3 million, respectively. As of December 31, 2023 and June 30, 2024, the Group had approximately RMB 124.4 89.9 51.1 67.5 5.0 5.0 2. Significant Accounting Policies (Continued) |
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, 2023 and June 30, 2024, the Group had approximately RMB 21.5 71.5 0.16 0.31 |
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, 2023 and June 30, 2024, the Group’s accounts receivable consists primarily of receivables from insurance transaction services customers. The Group recorded current expected credit loss expense of approximately RMB 0.5 1.4 |
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: Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment Leasehold improvement Shorter of the lease term or estimated economic life Furniture and office equipment 3 5 Electronics equipment and others 3 6 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 unaudited interim condensed consolidated statements of operations and comprehensive loss. 2. Significant Accounting Policies (Continued) |
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: Schedule of Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives Software 3 5 Licenses 10 Agency agreements 2 Channel relationship 2 Licenses comprise insurance brokerage licenses, which has an estimated useful life of 10 5 2 2 |
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 periods 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, 2023 and June 30, 2024 were related to its acquisition of Cheche Insurance (previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”) in October 2017. 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. 2. Significant Accounting Policies (Continued) l) Goodwill (Continued) 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 six months ended June 30, 2023 and 2024. At December 31, 2023 and June 30, 2024, goodwill was RMB 84.6 84.6 |
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 unaudited interim condensed 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 and technical service and other services. 2. Significant Accounting Policies (Continued) n) Revenue recognition (Continued) 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 service 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 service to third-party companies. The Group charges third-party companies service fee for developing software for them. Technical service 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 these 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. 2. Significant Accounting Policies (Continued) n) Revenue recognition (Continued) Contract Balances and Accounts Receivable Contract liabilities primarily consist of customer advances which relates to the payments received for SaaS and technical service in advance of performance under the contract. The increase in contract liabilities over the periods 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 service. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. During the six months ended June 30, 2023 and 2024, the Group recognized revenue amounted to RMB 0.5 2.6 0.9 4.3 During the six months ended June 30, 2023 and 2024, 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 period. 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) amortization and depreciation expenses, iv) salary and welfare benefits, v) cloud service fees, and vi) tax and surcharges and others. These costs are charged to the unaudited interim condensed 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, share-based compensation expenses 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, share-based compensation expenses to the Group’s sales and marketing personnel, and amortization expenses. 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.. 2. Significant Accounting Policies (Continued) |
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 RMB 1.4 million and RMB 1.4 million for the year ended December 31, 2023 and the six months ended June 30, 2024 being the unamortized portion of a grant of nil and nil the Group received in the year ended December 31, 2023 and the six months ended June 30, 2024, respectively, for long-term operation. As of December 31, 2023 and June 30, 2024, the Group has not fulfilled the conditions attached to the government grants. As the Group does not expect to fulfill the conditions within one year, the grant is recorded as a non-current deferred revenue. |
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, 2023 and June 30, 2024. 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. 2. Significant Accounting Policies (Continued) |
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 unaudited interim condensed 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 RMB 56.2 million and RMB 60.7 million as of December 31, 2023 and June 30, 2024. |
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 unaudited interim condensed 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. 2. Significant Accounting Policies (Continued) w) Taxation (Continued) 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 unaudited interim condensed consolidated balance sheet and under other expenses in its unaudited interim condensed consolidated statements of operations and comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the year ended December 31, 2023, and as of and for the six months period ended June 30, 2024, 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. 2. Significant Accounting Policies (Continued) z) Statutory reserves (Continued) 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 six months ended June 30, 2023 and 2024, because the Company’s subsidiary, VIE and subsidiaries of VIE were in the position of accumulated deficit as of December 31, 2023 and June 30, 2024. |
Comprehensive loss | aa) Comprehensive loss Comprehensive loss is defined to include all changes in deficit 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, as presented on the unaudited interim condensed 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, 2023 and June 30, 2024, the Group’s cash and cash equivalents, and restricted cash denominated in RMB were RMB 119.1 million and RMB 82.3 million, accounting for 47.9 % and 59.6 % 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, 2023 and June 30, 2024, 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. 2. Significant Accounting Policies (Continued) cc) Concentration and risk (Continued) Concentration of customers and suppliers There was nil nil There was 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 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. 2 Significant Accounting Policies (Continued) dd) Recently issued accounting pronouncements (Continued) 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) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Consolidated Subsidiaries,VIE and Subsidiaries of VIE | The following sets forth the Company’s consolidated subsidiaries, VIE and subsidiaries of VIE are as follows: Schedule of Consolidated Subsidiaries,VIE and Subsidiaries of VIE Percentage of direct or Place and indirect year of economic Principal Subsidiaries incorporation ownership activities Cheche Technology Inc. (“CCT”) Cayman Islands, 2018 100 % Investment holding Cheche Technology (HK) Limited (“Cheche HK”) Hong Kong, China, 2018 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, 2018 100 Technical support and consulting services Baodafang Technology Co., Ltd. (“Baodafang”) Beijing, China, 2020 100 Technology service and SaaS services Percentage of direct or Place and indirect year of economic Principal VIE incorporation interest activities Beijing Cheche Technology Co., Ltd. (“Beijing Cheche”) Beijing, China, 2014 100 Technology service Percentage of Place and direct or year of indirect incorporation/ economic Principal Subsidiaries of VIE acquisition interest activities Cheche Insurance Sales & Service Co., Ltd. (“Cheche Insurance”) Guangzhou, China, 2017 100 Insurance brokerage Huicai Insurance Brokerage Co., Ltd. Beijing, China, 2016 100 Dormant Cheche Zhixing (Ningbo) Car Service Co., Ltd. Ningbo, China, 2019 100 Dormant * The WFOE has 100 |
Schedule of Consolidated Financial Statements | Schedule of Consolidated Financial Statements As of December 31, As of June 30, 2023 2024 RMB RMB ASSETS Current assets: Cash and cash equivalents 86,330 70,463 Short-term investment 226 226 Accounts receivable, net 445,941 528,942 Prepayments and other current assets 41,695 47,857 Amounts due from intra-Group companies 4,575 3,168 Total current assets 578,767 650,656 Non-current assets: Restricted cash 5,000 5,000 Property, equipment and leasehold improvement, net 1,221 2,197 Intangible assets, net 8,050 7,000 Right-of-use assets 7,067 8,305 Goodwill 84,609 84,609 Total non-current assets 105,947 107,111 TOTAL ASSETS 684,714 757,767 LIABILITIES Current liabilities: Accounts payable 283,547 342,720 Short-term borrowings 10,000 5,000 Contract liabilities 626 3 Salary and welfare benefits payable 57,878 56,344 Tax payable 624 519 Amounts due to related party 55,251 58,801 Accrued expenses and other current liabilities 11,504 14,360 Short-term lease liabilities 2,304 3,363 Amounts due to intra-Group companies 158,648 171,492 Total current liabilities 580,382 652,602 Non-current liabilities: Deferred tax liabilities 2,013 1,750 Long-term lease liabilities 4,550 4,485 Deferred revenue 1,432 1,432 Amounts due to intra-Group companies 244,471 236,292 Total non-current liabilities 252,466 243,959 TOTAL LIABILITIES (without recourse to the primary beneficiary) 832,848 896,561 |
Schedule of Operation | Schedule of Operation 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Net revenues - earned from external parties 1,539,010 1,377,227 - earned from intra-Group companies 6,289 4,717 Total revenues 1,545,299 1,381,944 Cost of revenues and operating expenses - arising from external parties transactions (1,574,436 ) (1,412,042 ) - arising from intra-Group transactions (717 ) (743 ) Total cost of revenues and operating expenses (1,575,153 ) (1,412,785 ) Net loss (35,985 ) (35,394 ) |
Schedule of Cash Flow | Schedule of Cash Flow 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cash flows from operating activities: Net cash generated from transactions with intra-Group companies 38,126 89,612 Net cash provided by /(used in) transactions with external parties 22,406 (9,625 ) Net cash generated from operating activities 60,532 79,987 Net cash used in transactions with external parties (100 ) (11,433 ) Net cash used in investing activities (100 ) (11,433 ) Net cash used in transactions with intra-Group companies (15,000 ) (79,421 ) Net cash generated from /(used in)transactions with external parties 10,000 (5,000 ) Net cash used in financing activities (5,000 ) (84,421 ) Net increase /(decrease) in cash and cash equivalents 55,432 (15,867 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment Leasehold improvement Shorter of the lease term or estimated economic life Furniture and office equipment 3 5 Electronics equipment and others 3 6 |
Schedule of Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives | Schedule of Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives Software 3 5 Licenses 10 Agency agreements 2 Channel relationship 2 |
Reverse Recapitalization (Table
Reverse Recapitalization (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Reverse Recapitalization | |
Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital | The number of ordinary shares issued immediately following the consummation of the Reverse Recapitalization were as follows: Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital Number of shares CCT’s ordinary shares outstanding at December 31, 2022 432,673,255 CCT’s ordinary shares issued to the Preferred Shareholders (Note 13) 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) 450,615,461 479,099,566 33,098,268 35,190,468 conversion ratio of 13.6145:1 (2) On the Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 4,341,052 4,716,245 (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 1,300,000 500,000 10.00 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net is consisted of the following: Schedule of Accounts Receivable, Net December 31, 2023 June 30, 2024 RMB RMB Accounts receivable, gross: 468,296 642,893 Less: allowance for current expected credit losses (2,230 ) (3,660 ) Accounts receivable, net 466,066 639,233 |
Schedule of Allowance for Current Expected Credit Losses | The following table summarizes the movement of the Group’s allowance for current expected credit losses: Schedule of Allowance for Current Expected Credit Losses For the six months ended June 30 2023 2024 RMB RMB Balance at the beginning of the period (1,027 ) (2,230 ) Additions (485 ) (1,430 ) Write-offs - - Balance at the end of the period (1,512 ) (3,660 ) |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepayments and Other Current Assets | The following is a summary of prepayments and other current assets: Schedule of Prepayments and Other Current Assets December 31, 2023 June 30, 2024 RMB RMB Deductible Value Added Tax (“VAT”) 39,914 27,884 Loan to a third party (i) - 10,000 Service fees (ii) 4,504 8,916 Rental and other deposits 2,449 2,505 Rental expense for other leases with period less than one year 630 875 Staff advance 230 649 Others 1,594 2,083 Balance at the end of the year 49,321 52,912 (i) The Group entered into a loan agreement with Baohe Holdings Limited (“Baohe”) with the loan term from June 15, 2024 to July 15, 2024, for Baohe’s business operation purpose, which was guaranteed by Dingfengcheng Chen’s Rice Noodles (Beijing) Co., Ltd. The principal amount of the loan is RMB 10.0 5 (ii) 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) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Leasehold Improvement, Net | The following is a summary of property, equipment and leasehold improvement, net: Schedule of Property, Equipment and Leasehold Improvement, Net December 31, 2023 June 30, 2024 RMB RMB Leasehold improvement 3,697 4,573 Furniture and office equipment 1,569 1,342 Furniture and Office Equipment [Member] 1,569 1,342 Electronic equipment and others 4,179 4,507 Electronic Equipment and Others [Member] 4,179 4,507 Total property, equipment and leasehold improvement 9,445 10,422 Less: accumulated depreciation (7,778 ) (7,943 ) Property, equipment and leasehold improvement, net 1,667 2,479 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | The following table summarizes the Group’s intangible assets, net: Schedule of Intangible Assets, Net December 31, 2023 June 30, 2024 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 Gross carrying amount 58,916 58,916 Less: accumulated amortization Software (916 ) (916 ) Software [Member] (916 ) (916 ) Licenses (12,950 ) (14,000 ) Licenses [Member] (12,950 ) (14,000 ) Agency agreements (18,000 ) (18,000 ) Channel relationship (19,000 ) (19,000 ) Channel Relationship [Member] (19,000 ) (19,000 ) Less: accumulated amortization (19,000 ) (19,000 ) Total intangible assets, net 8,050 7,000 |
Schedule of Estimated Amortization Expenses | The estimated amortization expenses for each of the following periods are as follows: Schedule of Estimated Amortization Expenses June 30, 2024 RMB Remainder of 2024 1,050 2025 2,100 2026 2,100 2027 1,750 Total 7,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
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, 2023 and June 30, 2024: Schedule of Aggregate Right of Use Assets and Related Lease Liabilities December 31, 2023 June 30, 2024 RMB RMB Operating lease right-of-use assets 10,249 10,021 Short-term operating lease liabilities (3,951 ) (4,730 ) Long-term operating lease liabilities (5,398 ) (4,485 ) Total operating leased liabilities (9,349 ) (9,215 ) |
Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of December 31, 2023 and June 30, 2024 were as follows: Weighted Average Lease Term and Weighted Average Discount Rate December 31, 2023 June 30, 2024 RMB RMB Weighted average lease term: Operating leases 3.02 2.57 Weighted average discount rate: Operating leases 3.91 % 3.58 % |
Schedule of Lease Expenses | The components of lease expenses for the six months ended June 30, 2023 and 2024 were as follows: Schedule of Lease Expenses 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Operating lease cost 4,345 2,975 Cost of other leases with period less than one year 883 2,477 Total 5,228 5,452 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the six months ended June 30, 2023 and 2024 were as follows: Schedule of Supplemental Cash Flow Information Related to Leases 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 4,896 2,776 Supplemental noncash information: Right-of-use assets obtained in exchange for lease obligations 172 5,076 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities at December 31, 2023 and June 30, 2024, respectively: Schedule of Maturities of Lease Liabilities December 31, 2023 June 30, 2024 RMB RMB 2024/Remainder of 2024 4,261 2,616 2025 2,867 3,930 2026 1,325 1,984 2027 1,432 1,118 Total remaining undiscounted lease payments 9,885 9,648 Less: interest (536 ) (433 ) Total present value of operating lease liabilities 9,349 9,215 Less: short-term operating lease liabilities (3,951 ) (4,730 ) Long-term operating lease liabilities 5,398 4,485 |
Short-term borrowings (Tables)
Short-term borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Short-Term Borrowings | The following table summarizes the Group’s outstanding short-term borrowings as of December 31, 2023 and June 30, 2024, respectively Schedule of Outstanding Short-Term Borrowings December 31, 2023 June 30, 2024 RMB RMB Bank borrowings 20,000 15,000 |
Schedule of Bank Borrowings | Schedule of Bank Borrowings Maturity date Principal amount Interest rate per annum December 31, June 30, Bank of Beijing (i) February 13, 2024 3,000 3.65 % 3,000 - Bank of Beijing (i) April 13, 2024 4,000 3.65 % 4,000 - Bank of Beijing (i) June 13, 2024 3,000 3.65 % 3,000 - Bank of Beijing (ii) June 28, 2024 10,000 3.55 % 10,000 - Industrial Bank Co., Ltd (iii) May 30, 2025 5,000 3.10 % - 5,000 Bank of Beijing (iv) June 6, 2025 10,000 3.35 % - 10,000 Total short-term borrowings 20,000 15,000 (i) On June 23, 2022, the Group entered into an RMB 10.0 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 RMB 3.0 million, RMB 4.0 million and RMB 3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB 4.0 million, RMB 3.0 million, and RMB 3.0 million were repaid on February 7, 2024, April 15, 2024 and June 13, 2024, respectively. There are no financial covenants for the credit facility. (ii) On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. (iii) On May 22, 2024, the Group entered into an RMB 10.0 million credit facility with the Industrial Bank Co., Ltd that will expire on May 21, 2025 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility, the Group drew down RMB 5.0 million on May 31, 2024. (iv) On June 20, 2024, the Group entered into an RMB 50.0 million credit facility with the Bank of Beijing that will expire on June 19, 2026 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB 10.0 million on June 27, 2024. There are no financial covenants for the credit facility. |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Taxation | |
Schedule of Income Tax Expense | The components of loss before income taxes are as follows (in thousands): Schedule of Income Tax Expense 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Loss before income tax expense Loss from Chinese mainland operations (65,994 ) (47,786 ) Loss from non-Chinese mainland operations (6,452 ) (7,186 ) Total Loss before income tax expense from operations (72,446 ) (54,972 ) Income tax benefit applicable to Chinese mainland operations Deferred tax 262 263 Subtotal income tax benefit applicable to Chinese mainland operations 262 263 Non-Chinese mainland withholding tax expense (4 ) (163 ) Total income tax benefit from operations 258 100 |
Tax payable (Tables)
Tax payable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Payable | The following is a summary of tax payable as of as of December 31, 2023 and June 30, 2024: Schedule of Tax Payable December 31, 2023 June 30, 2024 RMB RMB VAT payables 43 98 Individual income tax payables 770 703 Construction tax payables 52 37 Educational development payables 37 27 Others 48 10 Total 950 875 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Schedule of Accrued Expenses and Other Current Liabilities December 31, 2023 June 30, 2024 RMB RMB Professional service fees 16,490 9,812 Refund liability 7,703 7,626 Accrued expenses 789 2,933 Payables related to other service fees - 2,101 Others 777 980 Total 25,759 23,452 |
Preferred shares (Tables)
Preferred shares (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Preferred Shares Activities | The Group’s preferred shares activities for the six months ended June 30, 2023 are summarized below: Schedule of Preferred Shares Activities Balance as of Accretions to Preferred Shares redemption value Balance as of Series Pre-A Preferred shares Number of shares 4,429,111 - 4,429,111 Amount 151,303 15,505 166,808 Series A Preferred shares Number of shares 9,181,406 - 9,181,406 Amount 333,797 32,040 365,837 Series B Preferred shares Number of shares 8,033,732 - 8,033,732 Amount 320,036 22,513 342,549 Series C Preferred shares Number of shares 1,955,000 - 1,955,000 Amount 115,356 5,917 121,273 Series D1 Preferred shares Number of shares 399,496 - 399,496 Amount 22,639 1,199 23,838 Series D2 Preferred shares Number of shares 765,057 - 765,057 Amount 39,144 2,277 41,421 Series D3 Preferred shares Number of shares 10,426,666 - 10,426,666 Amount 576,606 30,540 607,146 Total Number of shares* 35,190,468 - 35,190,468 Total amount 1,558,881 109,991 1,668,872 * Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Key Revenues Streams | Key revenues streams are as below: Schedule of Key Revenues Streams 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Insurance transaction services income 1,598,150 1,626,435 SaaS and technical service income 11,472 12,000 Others 749 551 Others [Member] Total 1,610,371 1,638,986 |
Cost of revenues (Tables)
Cost of revenues (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Cost of Revenues | Schedule of Cost of Revenues 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Cost of referral partners 1,482,767 1,519,027 Service fee paid to third-party payment platforms 65,237 49,617 Salary and welfare benefits 1,424 3,054 Amortization and depreciation 1,197 1,050 Cloud service fees 650 488 Tax and surcharges and others 704 1,049 Total 1,551,979 1,574,285 |
Employee benefits (Tables)
Employee benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Employee Welfare Benefits Expenses | Schedule of Employee Welfare Benefits Expenses 2023 2024 For the six months ended June 30, 2023 2024 RMB RMB Contributions to medical and pension schemes 10,438 9,910 Other employee benefits 3,519 3,221 Total 13,957 13,131 *The amounts of “Contributions to medical and pension schemes” and “Other employee benefits” for the six months ended June 30, 2023 have been revised to correct for a formula error in the preparation of this disclosure. The errors were disclosure only and did not have any impact to the previously reported unaudited interim condensed 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: As Previously Reported [Member] Adjustment [Member] As Revised [Member] For the six months ended 2023 As Previously Reported Adjustment As Revised RMB RMB RMB Contributions to medical and pension schemes 7,117 3,321 10,438 Other employee benefits 194 3,325 3,519 Total 7,311 6,646 13,957 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [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: Schedule of Option Pricing Model and Adopted Fair Value Per Share For the six months ended June 30, Options* 2023 2024 Fair value per share (US$) - * 0.73 ~ 5.56 Discount rate (after tax) - * Not applicable Risk-free interest rate - * 3.99 4.36 Expected volatility - * 64.67 65.68 Contractual term (in years) - * 10 Discount for lack of marketability (“DLOM”) - * Not applicable * There were no grants for options for the six months period ended June 30, 2023. For the six months ended June 30, Restricted shares 2023 2024 Fair value per share (US$) 0.36 Not applicable Discount rate (after tax) 15.5 % Not applicable Discount for lack of marketability (“DLOM”) 10 % Not applicable |
Schedule of Stock Options Activities | The following table presents a summary of the Company’s stock options activities for the six months ended June 30, 2023 and 2024. Schedule of Stock Options Activities Number of Options Outstanding* Weighted Average exercise price Weighted average remaining contractual life Aggregated intrinsic value Employees Consultant Total (in thousands) (in thousands) (in thousands) US$ (in years) RMB in thousands Outstanding at January 1, 2023 7,618 331 7,949 1.7905 4.67 65,572 Replacement (6,381 ) - (6,381 ) 0.9353 - - Granted - - - - - - Forfeited (9 ) - (9 ) 8.1442 - - Outstanding at June 30, 2023 1,228 331 1,559 5.2484 4.17 86 Exercisable as of June 30, 2023 1,228 331 1,559 5.2484 4.17 86 Outstanding at January 1, 2024 573 - 573 0.6675 9.73 23,775 Replacement (22 ) - (22 ) 7.4245 - - Granted 599 - 599 0.1000 - - Forfeited (9 ) - (9 ) 5.3707 - - Outstanding at June 30, 2024 1,141 - 1,141 0.1963 9.64 5,979 Exercisable as of June 30, 2024 519 - 519 0.3076 9.60 2,734 * 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 six months ended June 30, 2023 and 2024: Schedule of Restricted Share Activities Number of Restricted Shares Granted* Weighted-Average Grant Date Fair Value (in thousands) (US$) Unvested as of January 1, 2023 786 4.8435 Replacement - - Awarded 6,381 4.8590 Vested (6,527 ) 4.8481 Forfeited (93 ) 5.5574 Outstanding at June 30, 2023 547 4.8427 Unvested as of January 1, 2024 330 5.0223 Replacement 22 4.2700 Awarded 1,546 1.6495 Vested (1,651 ) 1.8351 Forfeited (88 ) 5.0458 Outstanding at June 30, 2024 159 5.2073 * Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Net loss per share (Tables)
Net loss per share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Net loss attributable to the Cheche’s ordinary shareholders per share | |
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 six months ended June 30, 2023 and 2024: Schedule of Basic and Diluted Net Loss Per Share 2023 2024 For the six months ended June 30, 2023 2024 Numerator: Net loss (72,188 ) (54,872 ) Less: accretions to preferred shares redemption value (109,991 ) - Net loss attributable to Cheche’s ordinary shareholders (182,179 ) (54,872 ) Denominator: Weighted average number of ordinary shares 32,705,091 76,264,603 Weighted average number of ordinary shares * 32,705,091 76,264,603 Basic net loss per share attributable to Cheche’s ordinary shareholders (5.57 ) (0.72 ) Diluted net loss per share attributable to Cheche’s ordinary shareholders (5.57 ) (0.72 ) * For the six months ended June 30, 2023 and 2024, the Company had potential ordinary shares, including preferred shares, restricted shares and share options. On a weighted average basis, 33,480,380 nil 7,120,212 253,199 1,561,711 766,667 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Schedule of Related Parties of the Group and their Relationships Entity or individual name Relationship with the Group Fanhua Group Shareholder of the Company |
Schedule of Related Party Transaction | The outstanding balance due to related parties as of December 31, 2023 and June 30, 2024 were as follows: Schedule of Related Party Transaction As of As of Balances with related parties December 31, 2023 June 30, 2024 RMB RMB Amounts due to related parties Fanhua Group (i) 55,251 58,801 Amounts due to related parties 55,251 58,801 (i) Corporate borrowings from Fanhua Group |
Schedule of Estimate the Fair Value of the Corporate Borrowings | Schedule of Estimate the Fair Value of the Corporate Borrowings As of As of December 31, 2023 June 30, 2024 Discount rate 11.87 % 11.17 % |
Schedule of Corporate Borrowings | The movement of Corporate borrowings from Fanhua Group is as follows: Schedule of Corporate Borrowings Corporate Borrowings RMB Balance as of January 1, 2023 59,932 Change in fair value 3,836 Change in other comprehensive income 300 Others 10 Balance as of June 30, 2023 64,068 Balance as of January 1, 2024 55,251 Change in fair value 3,286 Change in other comprehensive income 254 Others 10 Balance as of June 30, 2024 58,801 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [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, 2023 and June 30, 2024: Schedule of Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis As of December 31, 2023 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant 5,419 - 850 6,269 Corporate borrowings from Fanhua Group - - 55,251 55,251 As of June 30, 2024 Active Market (Level 1) Observable Input (Level 2) Unobservable Input (Level 3) Total RMB RMB RMB RMB Liabilities: Warrant 2,921 - 1 2,922 Corporate borrowings from Fanhua Group - - 58,801 58,801 |
Schedule of Consolidated Subsid
Schedule of Consolidated Subsidiaries,VIE and Subsidiaries of VIE (Details) | 6 Months Ended | |
Jun. 30, 2024 | ||
Cheche Technology Inc. ("CCT") [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [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] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [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. [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [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] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [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 Cheche Technology Co., Ltd. ("Beijing Cheche") [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [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] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Place and year of incorporation | Guangzhou, China, 2017 | |
Percentage of direct or indirect economic ownership | 100% | [1] |
Principal activities | Insurance brokerage | |
Huicai Insurance Brokerage Co., Ltd. [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Place and year of incorporation | Beijing, China, 2016 | |
Percentage of direct or indirect economic ownership | 100% | [1] |
Principal activities | Dormant | |
Cheche Zhixing (Ningbo) Car Service Co., Ltd. [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Place and year of incorporation | Ningbo, China, 2019 | |
Percentage of direct or indirect economic ownership | 100% | [1] |
Principal activities | Dormant | |
[1]The WFOE has 100 |
Schedule of Consolidated Subs_2
Schedule of Consolidated Subsidiaries,VIE and Subsidiaries of VIE (Details) (Parenthetical) Pure in Thousands | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Beneficial interests | 100% |
Schedule of ordinary shares iss
Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital (Details)(Parenthetical) - $ / shares | 6 Months Ended | ||
Jun. 30, 2024 | Sep. 11, 2023 | ||
Conversion ration | 13.6145-for-1 conversion | ||
CCT's ordinary shares issued and outstanding prior to the reverse recapitalization | 450,615,461 | ||
Conversion of prime impact's | 73,004,981 | ||
Redeemable Convertible Preferred Stock [Member] | |||
Convertible redeemable preferred shares | 479,099,566 | ||
Conversion Of CCTs Ordinary Shares [Member] | |||
Conversion of prime impact's | [1] | 33,098,268 | |
Conversion Of CCTs Convertible Redeemable Preferred Shares [Member] | |||
Conversion ration | conversion ratio of 13.6145:1 | ||
Conversion of prime impact's | [1] | 35,190,468 | |
Common Class A [Member] | |||
Conversion of prime impact's | 375,193 | ||
Prime Impact converted issued and outstanding | 4,716,245 | ||
Share issued | 375,193 | ||
Common Class A [Member] | Prime Impact Cayman LLC [Member] | |||
Share issued | 634,228 | ||
Common Class A [Member] | World Dynamic Limited [Member] | |||
Share issued | 1,300,000 | ||
Common Class A [Member] | Goldrock Holdings Limited [Member] | |||
Share issued | 500,000 | ||
Sale of stock, price per share | $ 10 | ||
Common Class B [Member] | |||
Conversion of prime impact's | 4,341,052 | ||
[1]On the Closing Date, CCT converted its (i) 450,615,461 479,099,566 33,098,268 35,190,468 conversion ratio of 13.6145:1 |
Schedule of Consolidated Financ
Schedule of Consolidated Financial Statements (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||||
Cash and cash equivalents | ¥ 133,117 | ¥ 243,392 | ¥ 149,952 | ||
Short-term investment | 71,494 | 21,474 | |||
Accounts receivable, net | 639,233 | 466,066 | |||
Prepayments and other current assets | 52,912 | 49,321 | |||
Total current assets | 896,756 | 780,253 | |||
Non-current assets: | |||||
Restricted cash | 5,000 | 5,000 | |||
Property, equipment and leasehold improvement, net | 2,479 | 1,667 | |||
Intangible assets, net | 7,000 | 8,050 | |||
Right-of-use assets | 10,021 | 10,249 | |||
Goodwill | 84,609 | 84,609 | |||
Total non-current assets | 113,017 | 113,724 | |||
TOTAL ASSETS | 1,009,773 | 893,977 | |||
Current liabilities: | |||||
Accounts payable | 467,552 | 316,868 | |||
Short-term borrowings | [1] | 15,000 | 20,000 | ||
Contract liabilities | 3,274 | 4,295 | ¥ 900 | ||
Salary and welfare benefits payable | 73,313 | 73,609 | |||
Tax payable | 875 | 950 | |||
Accrued expenses and other current liabilities | 23,452 | 25,759 | |||
Short-term lease liabilities | 4,730 | 3,951 | |||
Total current liabilities | 646,998 | 501,533 | |||
Non-current liabilities: | |||||
Deferred tax liabilities | 1,750 | 2,013 | |||
Long-term lease liabilities | 4,485 | 5,398 | |||
Deferred revenue | 1,432 | 1,432 | |||
Total non-current liabilities | 10,588 | 14,262 | |||
TOTAL LIABILITIES | 657,586 | 515,795 | |||
Related Party [Member] | |||||
Current liabilities: | |||||
Amounts due to intra-Group companies | 58,801 | 55,251 | |||
Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 70,463 | 86,330 | |||
Short-term investment | 226 | 226 | |||
Accounts receivable, net | 528,942 | 445,941 | |||
Prepayments and other current assets | 47,857 | 41,695 | |||
Total current assets | 650,656 | 578,767 | |||
Non-current assets: | |||||
Restricted cash | 5,000 | 5,000 | |||
Property, equipment and leasehold improvement, net | 2,197 | 1,221 | |||
Intangible assets, net | 7,000 | 8,050 | |||
Right-of-use assets | 8,305 | 7,067 | |||
Goodwill | 84,609 | 84,609 | |||
Total non-current assets | 107,111 | 105,947 | |||
TOTAL ASSETS | 757,767 | 684,714 | |||
Current liabilities: | |||||
Accounts payable | 342,720 | 283,547 | |||
Short-term borrowings | 5,000 | 10,000 | |||
Contract liabilities | 3 | 626 | |||
Salary and welfare benefits payable | 56,344 | 57,878 | |||
Tax payable | 519 | 624 | |||
Accrued expenses and other current liabilities | 14,360 | 11,504 | |||
Short-term lease liabilities | 3,363 | 2,304 | |||
Total current liabilities | 652,602 | 580,382 | |||
Non-current liabilities: | |||||
Deferred tax liabilities | 1,750 | 2,013 | |||
Long-term lease liabilities | 4,485 | 4,550 | |||
Deferred revenue | 1,432 | 1,432 | |||
Total non-current liabilities | 243,959 | 252,466 | |||
TOTAL LIABILITIES | 896,561 | 832,848 | |||
Subsidiaries [Member] | Intra Group Companies [Member] | |||||
Current assets: | |||||
Amounts due from intra-Group companies | 3,168 | 4,575 | |||
Current liabilities: | |||||
Amounts due to intra-Group companies | 171,492 | 158,648 | |||
Non-current liabilities: | |||||
Amounts due to intra-Group companies | 236,292 | 244,471 | |||
Subsidiaries [Member] | Related Party [Member] | |||||
Current liabilities: | |||||
Amounts due to intra-Group companies | ¥ 58,801 | ¥ 55,251 | |||
[1]On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. |
Schedule of Operation (Details)
Schedule of Operation (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Net revenues | ||
Total revenues | ¥ 1,638,986 | ¥ 1,610,371 |
Cost of revenues and operating expenses | ||
Total cost of revenues and operating expenses | 1,574,285 | 1,551,979 |
Net loss | (54,872) | (72,188) |
Subsidiaries [Member] | ||
Net revenues | ||
Total revenues | 1,381,944 | 1,545,299 |
Cost of revenues and operating expenses | ||
Total cost of revenues and operating expenses | (1,412,785) | (1,575,153) |
Net loss | (35,394) | (35,985) |
Subsidiaries [Member] | External Parties [Member] | ||
Net revenues | ||
Total revenues | 1,377,227 | 1,539,010 |
Cost of revenues and operating expenses | ||
Total cost of revenues and operating expenses | (1,412,042) | (1,574,436) |
Subsidiaries [Member] | Intra Group Companies [Member] | ||
Net revenues | ||
Total revenues | 4,717 | 6,289 |
Cost of revenues and operating expenses | ||
Total cost of revenues and operating expenses | ¥ (743) | ¥ (717) |
Schedule of Cash Flow (Details)
Schedule of Cash Flow (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net cash generated from operating activities | ¥ (44,675) | ¥ (7,591) |
Net cash used in investing activities | (61,462) | 20,204 |
Net cash used in financing activities | (5,000) | 20,000 |
Net increase /(decrease) in cash and cash equivalents | (110,275) | 35,007 |
Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash generated from operating activities | 79,987 | 60,532 |
Net cash used in investing activities | (11,433) | (100) |
Net cash used in financing activities | (84,421) | (5,000) |
Net increase /(decrease) in cash and cash equivalents | (15,867) | 55,432 |
Subsidiaries [Member] | Intra Group Companies [Member] | ||
Cash flows from operating activities: | ||
Net cash generated from operating activities | 89,612 | 38,126 |
Net cash used in financing activities | (79,421) | (15,000) |
Subsidiaries [Member] | External Parties [Member] | ||
Cash flows from operating activities: | ||
Net cash generated from operating activities | (9,625) | 22,406 |
Net cash used in investing activities | (11,433) | (100) |
Net cash used in financing activities | ¥ (5,000) | ¥ 10,000 |
Organization and Principal Ac_3
Organization and Principal Activities (Details Narrative) ¥ in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Jun. 30, 2024 CNY (¥) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2023 CNY (¥) | ||
VIE percentage | 100% | |||||
Statutory reserves | ||||||
Percentage of equity interests | 14.24% | |||||
Net loss | ¥ 54,872 | ¥ 72,188 | ||||
Net cash used in operating activities | 44,675 | 7,591 | ||||
Accumulated deficit | 2,168,693 | 2,113,821 | ||||
Proceeds from payments for other financing activities | $ 19.2 | ¥ 137,900 | ||||
Prime Impact Cayman LLC [Member] | ||||||
Proceeds from payments for other financing activities | $ | 1.2 | |||||
World Dynamic Limited [Member] | ||||||
Proceeds from payments for other financing activities | $ | 13 | |||||
Goldrock Holdings Limited [Member] | ||||||
Proceeds from payments for other financing activities | $ | $ 5 | |||||
Additional Paid-in Capital [Member] | ||||||
VIE obligations | 65,300 | ¥ 65,300 | ||||
Net loss | [1] | |||||
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Property, Equipment
Schedule of Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment (Details) | Jun. 30, 2024 |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives description | Useful Life, Shorter of Lease Term or Asset Utility [Member] |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronic Equipment and Others [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic Equipment and Others [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 6 years |
Schedule of Amortization of Fin
Schedule of Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives (Details) | Jun. 30, 2024 |
Licenses [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite lived intangible asset useful life | 10 years |
Agency Agreements [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite lived intangible asset useful life | 2 years |
Channel Relationship [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite lived intangible asset useful life | 2 years |
Minimum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite lived intangible asset useful life | 3 years |
Maximum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite lived intangible asset useful life | 5 years |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) ¥ in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 CNY (¥) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Product Information [Line Items] | |||||||
Reclassified technical service income | ¥ 1,300 | ||||||
Cash and Due from Banks | $ 18.2 | $ 7.8 | ¥ 55,800 | ¥ 129,300 | |||
Cast at bank denominate | 77,300 | 114,100 | |||||
Cash and cash equivalents | ¥ 89,900 | ¥ 124,400 | |||||
Variable interest entity | 51.10% | 67.50% | 67.50% | 51.10% | |||
Restricted cash | 5,000 | ¥ 5,000 | ¥ 5,000 | ||||
Bank deposits | 71,500 | 21,500 | |||||
Interest income | ¥ 310 | 160 | |||||
Provision of allowance for current expected credit losses | 1,430 | 485 | |||||
Goodwill | 84,609 | 84,609 | |||||
Revenue | ¥ 2,600 | ¥ 500 | |||||
Contract liabilities balance | 3,274 | 4,295 | ¥ 900 | ||||
Grants Receivable | 1,400 | 1,400 | |||||
Unamortized portion of deferred government grants | |||||||
Accrued Employee Benefits | 60,700 | 56,200 | |||||
Effective income tax rate | 50% | ||||||
Statutory surplus of registered capital of entity | 50% | ||||||
Cash, Cash Equivalents, and Short-Term Investments | ¥ 82,300 | ¥ 119,100 | |||||
Percentage of cash equivalents and restricted cash | 59.60% | 47.90% | |||||
Consolidated Entity, Excluding Consolidated VIE [Member] | |||||||
Product Information [Line Items] | |||||||
Statutory surplus of registered capital of entity | 50% | ||||||
Agency Agreements [Member] | |||||||
Product Information [Line Items] | |||||||
Property plant and equipment useful life | 2 years | 2 years | |||||
Channel Relationship [Member] | |||||||
Product Information [Line Items] | |||||||
Property plant and equipment useful life | 2 years | 2 years | |||||
Licenses [Member] | |||||||
Product Information [Line Items] | |||||||
Amortization of estimated useful lives | 10 years | ||||||
Term of validity on intangible assets | 5 years |
Schedule of ordinary shares i_2
Schedule of ordinary shares issued immediately following the consummation of the Reverse Recapital (Details) - shares | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | ||
CCT's ordinary shares outstanding at December 31, 2022 | [1] | 77,846,610 | 75,440,709 |
CCT's ordinary shares issued to the Preferred Shareholders | [1] | 77,846,610 | 75,440,709 |
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 | ||
CCTs ordinary shares outstanding [Member] | |||
CCT's ordinary shares outstanding at December 31, 2022 | 432,673,255 | ||
CCT's ordinary shares outstanding prior to the Reverse Recapitalization | 450,615,461 | ||
CCTs ordinary shares issued to the Preferred Shareholders [Member] | |||
CCT's ordinary shares issued to the Preferred Shareholders | 17,942,206 | ||
Conversion Of CCTs Ordinary Shares [Member] | |||
Ordinary shares attributable to conversion | [2] | 33,098,268 | |
Conversion Of CCTs Convertible Redeemable Preferred Shares [Member] | |||
Ordinary shares attributable to conversion | [2] | 35,190,468 | |
Conversion of Prime Impact's Class A Ordinary Shares [Member] | |||
Ordinary shares attributable to conversion | [3] | 375,193 | |
Conversion of Prime Impact's Class B Ordinary Shares [Member] | |||
Ordinary shares attributable to conversion | [3] | 4,341,052 | |
Ordinary Shares Attributable To Prime Impact Cayman LLC [Member] | |||
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] | |||
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] | |||
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).[2]On the Closing Date, CCT converted its (i) 450,615,461 479,099,566 33,098,268 35,190,468 conversion ratio of 13.6145:1 375,193 4,341,052 4,716,245 634,228 1,300,000 500,000 10.00 |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details Narrative) | Sep. 11, 2023 CNY (¥) | Jun. 30, 2024 CNY (¥) shares | Dec. 31, 2023 CNY (¥) | Sep. 11, 2023 $ / shares shares | Jun. 30, 2023 shares | [1] | Dec. 31, 2022 shares | [1] |
Share issued and outstanding | 676,533,464 | |||||||
Warrants outstanding | ¥ | ¥ 2,922,000 | ¥ 6,269,000 | ||||||
Preferred shares outstanding | 455,818,627 | 35,190,468,000 | 35,190,468,000 | |||||
Convertible preferred shares | 253,181,563 | |||||||
Ordinary shares issued and outstanding | 253,181,563 | |||||||
Warrants outstanding | 865,227 | |||||||
Payments of financing costs | ¥ | ¥ 5,000,000 | |||||||
Warrant [Member] | ||||||||
Preferred share converted into warrants | 63,552 | |||||||
Common Class A [Member] | ||||||||
Share issued | 375,193 | |||||||
Share issued and outstanding | 4,716,245 | |||||||
Warrants outstanding | ¥ | ¥ 13,663,325 | |||||||
Common Class A [Member] | Mr Lei Zhang [Member] | ||||||||
Share issued | 49,692,232 | |||||||
Common Class A [Member] | Prime Impact Cayman LLC [Member] | ||||||||
Share issued | 634,228 | |||||||
Common Class A [Member] | World Dynamic Limited [Member] | ||||||||
Share issued | 1,300,000 | |||||||
Common Class A [Member] | Goldrock Holdings Limited [Member] | ||||||||
Share issued | 500,000 | |||||||
Sale of stock, price per share | $ / shares | $ 10 | |||||||
Common Class B [Member] | ||||||||
Share outstanding | 4,341,052 | |||||||
Common Class B [Member] | Mr Lei Zhang [Member] | ||||||||
Share issued | 18,596,504 | |||||||
Common Stock [Member] | ||||||||
Share issued | 479,099,566 | |||||||
[1]Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Accounts Receivable
Schedule of Accounts Receivable, Net (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | ||||
Accounts receivable, gross: | ¥ 642,893 | ¥ 468,296 | ||
Less: allowance for current expected credit losses | (3,660) | (2,230) | ¥ (1,512) | ¥ (1,027) |
Accounts receivable, net | ¥ 639,233 | ¥ 466,066 |
Schedule of Allowance for Curre
Schedule of Allowance for Current Expected Credit Losses (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Credit Loss [Abstract] | ||
Balance at the beginning of the period | ¥ (2,230) | ¥ (1,027) |
Additions | (1,430) | (485) |
Write-offs | ||
Balance at the end of the period | ¥ (3,660) | ¥ (1,512) |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Current Assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deductible Value Added Tax (“VAT”) | ¥ 27,884 | ¥ 39,914 | |
Loan to a third party | [1] | 10,000 | |
Service fees | [2] | 8,916 | 4,504 |
Rental and other deposits | 2,505 | 2,449 | |
Rental expense for other leases with period less than one year | 875 | 630 | |
Staff advance | 649 | 230 | |
Others | 2,083 | 1,594 | |
Balance at the end of the year | ¥ 52,912 | ¥ 49,321 | |
[1]The Group entered into a loan agreement with Baohe Holdings Limited (“Baohe”) with the loan term from June 15, 2024 to July 15, 2024, for Baohe’s business operation purpose, which was guaranteed by Dingfengcheng Chen’s Rice Noodles (Beijing) Co., Ltd. The principal amount of the loan is RMB 10.0 5 |
Schedule of Prepayments and O_2
Schedule of Prepayments and Other Current Assets (Details) (Parentheticals) - Baohe Holdings Limited [Member] ¥ in Millions | Jun. 15, 2024 CNY (¥) |
Principal loan amount | ¥ 10 |
Interest rate | 5% |
Schedule of Property, Equipme_2
Schedule of Property, Equipment and Leasehold Improvement, Net (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | ¥ 10,422 | ¥ 9,445 |
Less: accumulated depreciation | (7,943) | (7,778) |
Property, equipment and leasehold improvement, net | 2,479 | 1,667 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | 4,573 | 3,697 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | 1,342 | 1,569 |
Electronic Equipment and Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and leasehold improvement | ¥ 4,507 | ¥ 4,179 |
Property, equipment and lease_3
Property, equipment and leasehold improvement, net (Details Narrative) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | ¥ 623 | ¥ 514 |
Schedule of Intangible Assets,
Schedule of Intangible Assets, Net (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Gross carrying amount | ||
Gross carrying amount | ¥ 58,916 | ¥ 58,916 |
Less: accumulated amortization | ||
Total intangible assets, net | 7,000 | 8,050 |
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 | (14,000) | (12,950) |
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) |
Schedule of Estimated Amortizat
Schedule of Estimated Amortization Expenses (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | ¥ 1,050 | |
2025 | 2,100 | |
2026 | 2,100 | |
2027 | 1,750 | |
Total | ¥ 7,000 | ¥ 8,050 |
Intangible assets, net (Details
Intangible assets, net (Details Narrative) - CNY (¥) ¥ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | ¥ 1.1 | ¥ 1.1 |
Schedule of Aggregate Right of
Schedule of Aggregate Right of Use Assets and Related Lease Liabilities (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
Operating lease right-of-use assets | ¥ 10,021 | ¥ 10,249 |
Short-term operating lease liabilities | (4,730) | (3,951) |
Long-term operating lease liabilities | (4,485) | (5,398) |
Total operating leased liabilities | ¥ (9,215) | ¥ (9,349) |
Weighted Average Lease Term and
Weighted Average Lease Term and Weighted Average Discount Rate (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
Weighted average lease term | 2 years 6 months 25 days | 3 years 7 days |
Weighted average discount rate | 3.58% | 3.91% |
Schedule of Lease Expenses (Det
Schedule of Lease Expenses (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Operating lease cost | ¥ 2,975 | ¥ 4,345 |
Cost of other leases with period less than one year | 2,477 | 883 |
Total | ¥ 5,452 | ¥ 5,228 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information Related to Leases (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Operating cash flows for operating leases | ¥ 2,776 | ¥ 4,896 |
Right-of-use assets obtained in exchange for lease obligations | ¥ 5,076 | ¥ 172 |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
2024/Remainder of 2024 | ¥ 2,616 | ¥ 4,261 |
2025 | 3,930 | 2,867 |
2026 | 1,984 | 1,325 |
2027 | 1,118 | 1,432 |
Total remaining undiscounted lease payments | 9,648 | 9,885 |
Less: interest | (433) | (536) |
Total present value of operating lease liabilities | 9,215 | 9,349 |
Less: short-term operating lease liabilities | (4,730) | (3,951) |
Long-term operating lease liabilities | ¥ 4,485 | ¥ 5,398 |
Schedule of Outstanding Short-T
Schedule of Outstanding Short-Term Borrowings (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |||
Bank borrowings | [1] | ¥ 15,000 | ¥ 20,000 |
[1]On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. |
Schedule of Bank Borrowings (De
Schedule of Bank Borrowings (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | ||
Short-Term Debt [Line Items] | |||
Short term borrowings | [1] | ¥ 15,000 | ¥ 20,000 |
Bank Of Beijing One [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [2] | February 13, 2024 | |
Principal amount | [2] | ¥ 3,000 | |
Interest rate per annum | [2] | 3.65% | |
Short term borrowings | [2] | 3,000 | |
Bank Of Beijing Two [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [2] | April 13, 2024 | |
Principal amount | [2] | ¥ 4,000 | |
Interest rate per annum | [2] | 3.65% | |
Short term borrowings | [2] | 4,000 | |
Bank Of Beijing Three [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [2] | June 13, 2024 | |
Principal amount | [2] | ¥ 3,000 | |
Interest rate per annum | [2] | 3.65% | |
Short term borrowings | [2] | 3,000 | |
Bank Of Beijing Four [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [1] | June 28, 2024 | |
Principal amount | [1] | ¥ 10,000 | |
Interest rate per annum | [2] | 3.55% | |
Short term borrowings | [1] | 10,000 | |
Industrial Bank Co Ltd [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [3] | May 30, 2025 | |
Principal amount | [3] | ¥ 5,000 | |
Interest rate per annum | [3] | 3.10% | |
Short term borrowings | [3] | ¥ 5,000 | |
Bank Of Beijing Five [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity date | [4] | June 6, 2025 | |
Principal amount | [4] | ¥ 10,000 | |
Interest rate per annum | [4] | 3.35% | |
Short term borrowings | [4] | ¥ 10,000 | |
[1]On June 14, 2023, the Group entered into an RMB 10.0 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 RMB 4.0 million and RMB 6.0 million on June 29, 2023, respectively. The loans of RMB 4.0 million and RMB 6.0 million were repaid on June 13, 2024. There are no financial covenants for the credit facility. 10.0 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 RMB 3.0 million, RMB 4.0 million and RMB 3.0 million on February 13, 2023, April 13, 2023 and June 13, 2023, respectively. The loans of RMB 4.0 million, RMB 3.0 million, and RMB 3.0 million were repaid on February 7, 2024, April 15, 2024 and June 13, 2024, respectively. There are no financial covenants for the credit facility. 10.0 million credit facility with the Industrial Bank Co., Ltd that will expire on May 21, 2025 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility, the Group drew down RMB 5.0 million on May 31, 2024. 50.0 million credit facility with the Bank of Beijing that will expire on June 19, 2026 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB 10.0 million on June 27, 2024. There are no financial covenants for the credit facility. |
Schedule of Bank Borrowings (_2
Schedule of Bank Borrowings (Details) (Parenthetical) - CNY (¥) ¥ in Millions | 1 Months Ended | ||||||||||||||
Jun. 27, 2024 | Jun. 20, 2024 | May 31, 2024 | May 22, 2024 | Jun. 29, 2023 | Jun. 14, 2023 | Jun. 13, 2023 | Apr. 13, 2023 | Feb. 13, 2023 | Jun. 23, 2022 | Oct. 31, 2020 | Jun. 14, 2024 | Jun. 13, 2024 | Apr. 15, 2024 | Feb. 07, 2024 | |
Line of Credit Facility [Line Items] | |||||||||||||||
Line of Credit Facility, Annual Principal Payment | ¥ 50 | ¥ 10 | ¥ 6 | ¥ 10 | ¥ 3 | ¥ 4 | ¥ 3 | ¥ 10 | ¥ 65 | ||||||
Loans Payable | ¥ 6 | ¥ 3 | ¥ 3 | ¥ 4 | |||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of Credit Facility, Annual Principal Payment | ¥ 10 | ¥ 5 | ¥ 4 | ||||||||||||
Line of Credit Facility, Expiration Date | Jun. 19, 2026 | May 21, 2025 | Jun. 13, 2025 | Jun. 22, 2024 | |||||||||||
Loans Payable | ¥ 4 |
Schedule of Income Tax Expense
Schedule of Income Tax Expense (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Loss before income tax expense | ||
Loss from Chinese mainland operations | ¥ (47,786) | ¥ (65,994) |
Loss from non-Chinese mainland operations | (7,186) | (6,452) |
Loss before income tax | (54,972) | (72,446) |
Income tax benefit applicable to Chinese mainland operations | ||
Deferred tax | 263 | 262 |
Subtotal income tax benefit applicable to Chinese mainland operations | 263 | 262 |
Non-Chinese mainland withholding tax expense | (163) | (4) |
Total income tax benefit from operations | ¥ 100 | ¥ 258 |
Taxation (Details Narrative)
Taxation (Details Narrative) - HKD ($) $ in Millions | 6 Months Ended | |
Apr. 01, 2018 | Jun. 30, 2024 | |
Profit tax rates | 16.50% | 16.50% |
Tax rate | 8.25% | |
Income tax assessable profit | $ 2 | $ 2 |
Preferential tax rate | 15% | |
Withholding income tax rate on dividends | 10% | |
China [Member] | ||
Income tax rate on VIE and subsidiaries | 25% | |
Hong Kong [Member] | ||
Withholding income tax rate on dividends | 5% |
Schedule of Tax Payable (Detail
Schedule of Tax Payable (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
VAT payables | ¥ 98 | ¥ 43 |
Individual income tax payables | 703 | 770 |
Construction tax payables | 37 | 52 |
Educational development payables | 27 | 37 |
Others | 10 | 48 |
Total | ¥ 875 | ¥ 950 |
Tax payable (Details Narrative)
Tax payable (Details Narrative) | Jun. 30, 2024 |
Income Tax Disclosure [Abstract] | |
Value added tax rate | 6% |
Schedule of Accrued Expenses an
Schedule of Accrued Expenses and Other Current Liabilities (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Professional service fees | ¥ 9,812 | ¥ 16,490 |
Refund liability | 7,626 | 7,703 |
Accrued expenses | 2,933 | 789 |
Payables related to other service fees | 2,101 | |
Others | 980 | 777 |
Total | ¥ 23,452 | ¥ 25,759 |
Schedule of Preferred Shares Ac
Schedule of Preferred Shares Activities (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | |||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | [1] | 35,190,468,000 | ||
Accretions to Preferred Shares redemption value, shares | [1] | |||
Number of shares, ending balance | 455,818,627 | 35,190,468,000 | [1] | |
Amount, beginning balance | ¥ 1,558,881 | |||
Accretions to Preferred Shares redemption value | 109,991 | |||
Amount, ending balance | ¥ 1,668,872 | |||
Series Pre A Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 4,429,111,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 4,429,111,000 | |||
Amount, beginning balance | ¥ 151,303 | |||
Accretions to Preferred Shares redemption value | 15,505 | |||
Amount, ending balance | ¥ 166,808 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 9,181,406,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 9,181,406,000 | |||
Amount, beginning balance | ¥ 333,797 | |||
Accretions to Preferred Shares redemption value | 32,040 | |||
Amount, ending balance | ¥ 365,837 | |||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 8,033,732,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 8,033,732,000 | |||
Amount, beginning balance | ¥ 320,036 | |||
Accretions to Preferred Shares redemption value | 22,513 | |||
Amount, ending balance | ¥ 342,549 | |||
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 1,955,000,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 1,955,000,000 | |||
Amount, beginning balance | ¥ 115,356 | |||
Accretions to Preferred Shares redemption value | 5,917 | |||
Amount, ending balance | ¥ 121,273 | |||
Series D1 Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 399,496,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 399,496,000 | |||
Amount, beginning balance | ¥ 22,639 | |||
Accretions to Preferred Shares redemption value | 1,199 | |||
Amount, ending balance | ¥ 23,838 | |||
Series D2 Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 765,057,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 765,057,000 | |||
Amount, beginning balance | ¥ 39,144 | |||
Accretions to Preferred Shares redemption value | 2,277 | |||
Amount, ending balance | ¥ 41,421 | |||
Series D3 Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, beginning balance | 10,426,666,000 | |||
Accretions to Preferred Shares redemption value, shares | ||||
Number of shares, ending balance | 10,426,666,000 | |||
Amount, beginning balance | ¥ 576,606 | |||
Accretions to Preferred Shares redemption value | 30,540 | |||
Amount, ending balance | ¥ 607,146 | |||
[1]Shares authorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Preferred shares (Details Narra
Preferred shares (Details Narrative) | 1 Months Ended | 6 Months Ended | ||||||||||||||
Feb. 23, 2023 shares | May 23, 2019 CNY (¥) shares | Nov. 22, 2018 shares | Jan. 31, 2022 USD ($) shares | Jul. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2021 CNY (¥) shares | Apr. 30, 2021 USD ($) 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 | Jun. 30, 2024 | Jun. 30, 2023 CNY (¥) shares | ||
Class of Stock [Line Items] | ||||||||||||||||
Implied valuation | $ | $ 800,000,000 | |||||||||||||||
Percentage of ordinary shares | 10% | |||||||||||||||
[custom:PercentOfQIPOOfferingPrice] | 75% | |||||||||||||||
Compound interest rate of capital contribution | 10% | |||||||||||||||
Accretion of preferred shares | ¥ | ¥ 110,000,000 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Convertible redeemable preferred shares | [1] | 1,317,874 | ||||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 1,955,000 | 1,877,135 | ||||||||||||||
Consideration | $ | $ 19,700,000 | $ 15,000,000 | $ 17,400,000 | |||||||||||||
Excess stock shares Issued | 782,000 | 150,171 | ||||||||||||||
Shares authorized to be repurchased | 276,007.50 | |||||||||||||||
Series D1 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 399,496 | 399,496 | ||||||||||||||
Consideration | ¥ | ¥ 20,000,000 | |||||||||||||||
Series D2 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Excess stock shares Issued | 260,667 | 260,667 | ||||||||||||||
Shenzhen Ruiyuan Investment Enterprise LLP [Member] | Series PreA Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 146,903 | |||||||||||||||
Consideration | ¥ | ¥ 30,000,000 | |||||||||||||||
Shenzhen Ruiyuan Investment Enterprise, LLP [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 108,891 | |||||||||||||||
Ruiyuan Technology Holdings Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 559,868 | 4,429,111 | 4,429,111 | |||||||||||||
Ruiyuan Technology Holdings Limited [Member] | Series PreA Financing [Member] | Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 5,444,575 | |||||||||||||||
Cicw Holdings Limited [Member] | Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Consideration | ¥ | ¥ 6,000,000 | |||||||||||||||
Number of shares issued in transaction | 1,015,462 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 606,524 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series A Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 91,814 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series A Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Convertible redeemable preferred shares | 4,590,703 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series A Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 4,590,703 | |||||||||||||||
Consideration | ¥ | ¥ 0.4 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series B Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 6,886 | |||||||||||||||
Consideration | ¥ | ¥ 7,500,000 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series B Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Convertible redeemable preferred shares | 344,303 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center, LLP [Member] | Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 344,303 | |||||||||||||||
Consideration | ¥ | ¥ 100,000 | |||||||||||||||
Hangzhou Shunying Equity Investment Enterprise LLP [Member] | Series A Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 91,814 | |||||||||||||||
Consideration | ¥ | ¥ 25,000,000 | |||||||||||||||
Beijing Zhongyun Ronghui Investment Center LLP [Member] | Series A Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Consideration | ¥ | ¥ 25,000,000 | |||||||||||||||
Hangzhou Shunying Equity Investment Enterprise, LLP [Member] | Series A Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Convertible redeemable preferred shares | 4,590,703 | |||||||||||||||
Hangzhou Shunying Equity Investment Enterprise, LLP [Member] | Series B Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 6,886 | |||||||||||||||
Consideration | ¥ | ¥ 7,500,000 | |||||||||||||||
Hangzhou Shunying Equity Investment Enterprise, LLP [Member] | Series B Convertible Redeemable Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Convertible redeemable preferred shares | 344,303 | |||||||||||||||
Ningbo Shiwei Enterprise Management Partnership (L.P.) [Member] | Series A Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 4,590,703 | |||||||||||||||
Consideration | ¥ | ¥ 0.4 | |||||||||||||||
Huzhou Zhongze Jiameng Equity Investment Enterprise LLP [Member] | Series B Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 55,088 | |||||||||||||||
Consideration | ¥ | ¥ 60,000,000 | |||||||||||||||
Zhuhai Hengqin Huarong Zhifu Investment Management Co Ltd [Member] | Series B Financing [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 91,814 | |||||||||||||||
Consideration | ¥ | ¥ 100,000,000 | |||||||||||||||
Eagle Rover Ltd [Member] | Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 2,754,422 | |||||||||||||||
LianJia Enterprise Limited [Member] | Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 4,590,704 | |||||||||||||||
Ningbo Shiwei Enterprise Management Partnership (L.P.) [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 606,524 | |||||||||||||||
Ningbo Shiwei Enterprise Management Partnership (L.P.) [Member] | Series B Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 344,303 | |||||||||||||||
Consideration | ¥ | ¥ 100,000 | |||||||||||||||
Yonghe CT Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 1,522,101 | |||||||||||||||
Yonghe CT Limited [Member] | Series D2 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 651,667 | 651,667 | ||||||||||||||
Consideration | $ | $ 5,000,000 | |||||||||||||||
Yonghe SI Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 110,352 | |||||||||||||||
Yonghe SI Limited [Member] | Series D2 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 113,390 | 113,390 | ||||||||||||||
Consideration | $ | $ 900,000 | |||||||||||||||
Image Digital Investment (HK) Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 8,117,877 | |||||||||||||||
Image Digital Investment (HK) Limited [Member] | Series D3 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 8,341,333 | |||||||||||||||
Consideration | $ | $ 64,000,000 | |||||||||||||||
TPP Fund II Holding F Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 2,029,469 | |||||||||||||||
TPP Fund II Holding F Limited [Member] | Series D3 Preferred Shares [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares issued | 2,085,333 | |||||||||||||||
Consideration | $ | $ 16,000,000 | |||||||||||||||
Huzhou Zhongze BVI [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 1,119,736 | |||||||||||||||
Zhuhai Hengqin BVI [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 1,866,227 | |||||||||||||||
Yonghe CarTech Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 1,014,735 | |||||||||||||||
United Gemini Holdings Limited [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction | 388,793 | |||||||||||||||
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Key Revenues Stream
Schedule of Key Revenues Streams (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Total | ¥ 1,638,986 | ¥ 1,610,371 |
Insurance Transaction Services Income [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 1,626,435 | 1,598,150 |
SaaS and Technical Service Income [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 12,000 | 11,472 |
Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | ¥ 551 | ¥ 749 |
Schedule of Cost of Revenues (D
Schedule of Cost of Revenues (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Cost of referral partners | ¥ 1,519,027 | ¥ 1,482,767 |
Service fee paid to third-party payment platforms | 49,617 | 65,237 |
Salary and welfare benefits | 3,054 | 1,424 |
Amortization and depreciation | 1,050 | 1,197 |
Cloud service fees | 488 | 650 |
Tax and surcharges and others | 1,049 | 704 |
Total | ¥ 1,574,285 | ¥ 1,551,979 |
Schedule of Employee Welfare Be
Schedule of Employee Welfare Benefits Expenses (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Contributions to medical and pension schemes | ¥ 9,910 | ¥ 10,438 |
Other employee benefits | 3,221 | 3,519 |
Total | ¥ 13,131 | 13,957 |
As Previously Reported [Member] | ||
Contributions to medical and pension schemes | 7,117 | |
Other employee benefits | 194 | |
Total | 7,311 | |
Adjustment [Member] | ||
Contributions to medical and pension schemes | 3,321 | |
Other employee benefits | 3,325 | |
Total | 6,646 | |
As Revised [Member] | ||
Contributions to medical and pension schemes | 10,438 | |
Other employee benefits | 3,519 | |
Total | ¥ 13,957 |
Schedule of Option Pricing Mode
Schedule of Option Pricing Model and Adopted Fair Value Per Share (Details) - $ / shares | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Fair value per share (US$) | [1] | |||
Discount rate (after tax) | [1] | |||
Risk-free interest rate | [1] | |||
Expected volatility | [1] | |||
Contractual term (in years) | 10 years | [1] | ||
Discount for lack of marketability ("DLOM") | [1] | |||
Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Fair value per share (US$) | $ 0.36 | |||
Discount rate (after tax) | 1,550% | |||
Discount for lack of marketability ("DLOM") | 10% | |||
Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Fair value per share (US$) | $ 0.73 | |||
Risk-free interest rate | 3.99% | |||
Expected volatility | 64.67% | |||
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Fair value per share (US$) | $ 5.56 | |||
Risk-free interest rate | 4.36% | |||
Expected volatility | 65.68% | |||
[1]There were no grants for options for the six months period ended June 30, 2023. |
Schedule of Stock Options Activ
Schedule of Stock Options Activities (Details) ¥ in Thousands, shares in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 $ / shares | Jun. 30, 2024 CNY (¥) shares | Jun. 30, 2023 $ / shares | Jun. 30, 2023 CNY (¥) shares | Dec. 31, 2023 $ / shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | ||
Number of Options Outstanding, Total, Outstanding, Beginning balance | [1] | 573 | 7,949 | 7,949 | ||||
Weighted Average exercise price, Outstanding, Beginning balance | $ / shares | $ 0.6675 | $ 1.7905 | $ 1.7905 | |||||
Weighted average remaining contractual life, Outstanding, Ending balance | 9 years 7 months 20 days | 4 years 2 months 1 day | 9 years 8 months 23 days | 4 years 8 months 1 day | ||||
Aggregated intrinsic value, Outstanding, Beginning balance | ¥ | ¥ 23,775 | ¥ 65,572 | ¥ 65,572 | |||||
Number of Options Outstanding, Total, Replacement | [1] | (22) | (6,381) | |||||
Weighted Average exercise price, Replacement | $ / shares | 7.4245 | 0.9353 | ||||||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualLifeReplacement] | ||||||||
Aggregated intrinsic value, Replacement | ¥ | ||||||||
Number of Options Outstanding, Total, Granted | [1] | 599 | ||||||
Weighted Average exercise price, Granted | $ / shares | 0.1000 | |||||||
Weighted average remaining contractual life, Granted | ||||||||
Aggregated intrinsic value, Granted | ¥ | ||||||||
Number of Options Outstanding, Total, Forfeited | [1] | (9) | (9) | |||||
Weighted Average exercise price, Forfeited | $ / shares | 5.3707 | 8.1442 | ||||||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualLifeForfeited] | ||||||||
Aggregated intrinsic value, Forfeited | ¥ | ||||||||
Number of Options Outstanding, Total, Outstanding, Ending balance | [1] | 1,141 | 1,559 | 573 | 7,949 | |||
Weighted Average exercise price, Outstanding, Ending balance | $ / shares | 0.1963 | 5.2484 | $ 0.6675 | |||||
Aggregated intrinsic value, Outstanding, Ending balance | ¥ | ¥ 5,979 | ¥ 86 | ¥ 23,775 | ¥ 65,572 | ||||
Number of Options Outstanding,Total, Exercisable, Ending balance | [1] | 519 | 1,559 | |||||
Weighted Average exercise price, Exercisable, Ending balance | $ / shares | $ 0.3076 | $ 5.2484 | ||||||
Weighted average remaining contractual life, Exercisable, Ending balance | 9 years 7 months 6 days | 4 years 2 months 1 day | ||||||
Aggregated intrinsic value, Exercisable, Ending balance | ¥ | ¥ 2,734 | ¥ 86 | ||||||
Employees [Member] | ||||||||
Number of Options Outstanding, Total, Outstanding, Beginning balance | [1] | 573 | 7,618 | 7,618 | ||||
Number of Options Outstanding, Total, Replacement | [1] | (22) | (6,381) | |||||
Number of Options Outstanding, Total, Granted | [1] | 599 | ||||||
Number of Options Outstanding, Total, Forfeited | [1] | (9) | (9) | |||||
Number of Options Outstanding, Total, Outstanding, Ending balance | [1] | 1,141 | 1,228 | 573 | 7,618 | |||
Number of Options Outstanding,Total, Exercisable, Ending balance | [1] | 519 | 1,228 | |||||
Consultant [Member] | ||||||||
Number of Options Outstanding, Total, Outstanding, Beginning balance | [1] | 331 | 331 | |||||
Number of Options Outstanding, Total, Replacement | [1] | |||||||
Number of Options Outstanding, Total, Granted | [1] | |||||||
Number of Options Outstanding, Total, Forfeited | [1] | |||||||
Number of Options Outstanding, Total, Outstanding, Ending balance | [1] | 331 | 331 | |||||
Number of Options Outstanding,Total, Exercisable, Ending balance | [1] | 331 | ||||||
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Schedule of Restricted Share Ac
Schedule of Restricted Share Activities (Details) shares in Thousands | 6 Months Ended | ||||
Jun. 30, 2024 $ / shares shares | Jun. 30, 2024 ¥ / shares shares | Jun. 30, 2023 $ / shares shares | Jun. 30, 2023 ¥ / shares shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Weighted-Average Grant Date Fair Value, Vested | (per share) | $ 4.3704 | ¥ 31.7602 | $ 0.7651 | ¥ 5.2075 | |
Restricted Stock [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Number of Restricted Shares Granted, Unvested, Beginning balance | shares | [1] | 330 | 330 | 786 | 786 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning balance | $ / shares | $ 5.0223 | $ 4.8435 | |||
Number of Restricted Shares Granted, Replacement | shares | [1] | 22 | 22 | ||
Weighted-Average Grant Date Fair Value, Replacement | $ / shares | $ 4.2700 | ||||
Number of Restricted Shares Granted, Awarded | shares | [1] | 1,546 | 1,546 | 6,381 | 6,381 |
Weighted-Average Grant Date Fair Value, Awarded | $ / shares | $ 1.6495 | $ 4.8590 | |||
Number of Restricted Shares Granted, Vested | shares | [1] | (1,651) | (1,651) | (6,527) | (6,527) |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | $ 1.8351 | $ 4.8481 | |||
Number of Restricted Shares Granted, Forfeited | shares | [1] | (88) | (88) | (93) | (93) |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | $ 5.0458 | $ 5.5574 | |||
Number of Restricted Shares Granted, Unvested, Ending balance | shares | [1] | 159 | 159 | 547 | 547 |
Weighted-Average Grant Date Fair Value, Unvested, Ending balance | $ / shares | $ 5.2073 | $ 4.8427 | |||
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3). |
Share-based compensation (Detai
Share-based compensation (Details Narrative) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | |||||
Jul. 01, 2023 CNY (¥) shares | Jan. 01, 2023 CNY (¥) shares | Jun. 30, 2024 $ / shares | Jun. 30, 2024 CNY (¥) ¥ / shares | Jun. 30, 2023 $ / shares | Jun. 30, 2023 CNY (¥) ¥ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Cost of revenues and expenses | ¥ | ¥ 1,574,285 | ¥ 1,551,979 | ||||
Maturities Term | 10 years | |||||
Fair value of options granted | (per share) | $ 4.3704 | ¥ 31.7602 | $ 0.7651 | ¥ 5.2075 | ||
2019 Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [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 Arrangement by Share-Based Payment Award [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 | ¥ | ¥ 26,300 | ¥ 26,200 |
Schedule of Basic and Diluted N
Schedule of Basic and Diluted Net Loss Per Share (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Numerator: | |||
Net loss | ¥ (54,872) | ¥ (72,188) | |
Less: accretions to preferred shares redemption value | (109,991) | ||
Net loss attributable to Cheche’s ordinary shareholders | ¥ (54,872) | ¥ (182,179) | |
Denominator: | |||
Weighted average number of ordinary shares outstanding, basic | [1] | 76,264,603 | 32,705,091 |
Weighted average number of ordinary shares outstanding, diluted | [2] | 76,264,603 | 32,705,091 |
Basic net loss per share attributable to Cheche’s ordinary shareholders | [1] | ¥ (0.72) | ¥ (5.57) |
Diluted net loss per share attributable to Cheche’s ordinary shareholders | [1] | ¥ (0.72) | ¥ (5.57) |
[1]Shares outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).[2]For the six months ended June 30, 2023 and 2024, the Company had potential ordinary shares, including preferred shares, restricted shares and share options. On a weighted average basis, 33,480,380 nil 7,120,212 253,199 1,561,711 766,667 |
Schedule of Basic and Diluted_2
Schedule of Basic and Diluted Net Loss Per Share (Details) (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Net loss attributable to the Cheche’s ordinary shareholders per share | ||
Weighted average basis | 33,480,380 | |
Restricted shares | 253,199 | 7,120,212 |
Anti-dilutive effect | 766,667 | 1,561,711 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - CNY (¥) ¥ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Future minimum lease | ¥ 1.7 | ¥ 1 |
Operating lease agreements due | 1 year |
Schedule of Related Parties of
Schedule of Related Parties of the Group and their Relationships (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Fanhua Group [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Shareholder of the Company |
Schedule of Related Party Trans
Schedule of Related Party Transaction (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Fanhua Group [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | [1] | ¥ 58,801 | ¥ 55,251 |
[1]Corporate borrowings from Fanhua Group |
Schedule of Estimate the Fair V
Schedule of Estimate the Fair Value of the Corporate Borrowings (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Related Party Transactions [Abstract] | ||
Discount rate | 11.17% | 11.87% |
Schedule of Corporate Borrowing
Schedule of Corporate Borrowings (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transactions [Abstract] | ||
Corporate Borrowings, Beginning balance | ¥ 55,251 | ¥ 59,932 |
Change in fair value | 3,286 | 3,836 |
Change in other comprehensive income | 254 | 300 |
Others | 10 | |
Corporate Borrowings, Ending balance | ¥ 58,801 | ¥ 64,068 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details Narrative) | 1 Months Ended | 6 Months Ended | |||||||||||||||
Jun. 20, 2024 CNY (¥) | May 22, 2024 CNY (¥) | Jun. 29, 2023 CNY (¥) | Jun. 14, 2023 CNY (¥) | Jun. 13, 2023 CNY (¥) | Apr. 13, 2023 CNY (¥) | Feb. 13, 2023 CNY (¥) | Jun. 23, 2022 CNY (¥) | Oct. 10, 2019 CNY (¥) shares | Oct. 26, 2017 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2020 CNY (¥) | Jun. 30, 2024 CNY (¥) | Jun. 30, 2023 CNY (¥) | Oct. 31, 2022 CNY (¥) | Oct. 10, 2019 $ / shares | |
Related Party Transaction [Line Items] | |||||||||||||||||
Principal amount convertible debt | ¥ 50,000,000 | ¥ 10,000,000 | ¥ 6,000,000 | ¥ 10,000,000 | ¥ 3,000,000 | ¥ 4,000,000 | ¥ 3,000,000 | ¥ 10,000,000 | ¥ 65,000,000 | ||||||||
Percentage of annual interest rate | 10% | ||||||||||||||||
Percentage of equity interest | 14.24% | ||||||||||||||||
Aggregated principal amount | ¥ 10,000,000 | ||||||||||||||||
Convertible loan | 55,000,000 | ||||||||||||||||
Changes in fair value of amounts due to related party | ¥ 3,286,000 | ¥ 3,836,000 | |||||||||||||||
Fair value changes of amounts due to related party due to own credit risk | 300,000 | ¥ 300,000 | |||||||||||||||
Fanhua Group [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of equity interest | 3.40% | ||||||||||||||||
Fanhua Group [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Principal amount convertible debt | ¥ 80,000,000 | ¥ 130,000,000 | |||||||||||||||
Percentage of annual interest rate | 10% | ||||||||||||||||
Amount of accrued interest | ¥ 14,100,000 | ||||||||||||||||
Shares converted | shares | 28,684,255 | ||||||||||||||||
Conversion price | $ / shares | $ 0.4766 | ||||||||||||||||
Extent principal balance of convertible debt | 50,000,000 | ||||||||||||||||
Amount of corresponding interest | ¥ 15,000,000 | ||||||||||||||||
Aggregated principal amount repaid | ¥ 12,600,000 | ¥ 6,300,000 | |||||||||||||||
Borrowings amount | ¥ 55,300,000 | ¥ 58,800,000 | ¥ 0 | ||||||||||||||
Maturity date | Oct. 26, 2024 |
Schedule of Financial Liabiliti
Schedule of Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | ¥ 2,922 | ¥ 6,269 |
Corporate borrowings from Fanhua Group | 58,801 | 55,251 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | 2,921 | 5,419 |
Corporate borrowings from Fanhua Group | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | ||
Corporate borrowings from Fanhua Group | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant | 1 | 850 |
Corporate borrowings from Fanhua Group | ¥ 58,801 | ¥ 55,251 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - CNY (¥) ¥ in Thousands | 1 Months Ended | |||
Aug. 31, 2024 | Jul. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2021 | |
Fanhua Group [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregated principal repaid | ¥ 12,600 | ¥ 6,300 | ||
Subsequent Event [Member] | Baohe Holdings Limited [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount | ¥ 10,000 | |||
Interest paid | ¥ 30 | |||
Subsequent Event [Member] | Fanhua Group [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregated principal repaid | ¥ 10,000 |
Restricted Net Assets (Details
Restricted Net Assets (Details Narrative) - CNY (¥) ¥ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Statutory surplus annual rate | 10% | |
Restricted portion amounted | ¥ 342.6 | ¥ 328.5 |