Financial Data and Key Metrics Changes - In the first half of 2025, total written premiums increased by 4% to RMB 11.5 billion (approximately USD 1.6 billion) [15] - Net revenues decreased by 17.7% year over year to RMB 1,348.7 million (approximately USD 188.3 million) [16] - Adjusted net loss improved by 56.9% to RMB 10.5 million (approximately USD 1.5 million) from the prior year [18] - Gross profit increased by 1.7% to RMB 65.8 million (approximately USD 9.2 million) despite lower net revenues [17] Business Line Data and Key Metrics Changes - The number of NAV insurance policies transacted exceeded 810,000, representing a 135% increase from the prior year [7] - Tutu writing premiums reached RMB 2.6 billion, up 150% over the same period [7] - AUV premiums as a percentage of total written premiums increased to 22.5% from 9.3% in the prior year [7] Market Data and Key Metrics Changes - Global AUV sales reached 9.1 million units, with China contributing 6.9 million units, representing a 75% global share [9] - EV accounted for 44% of new car sales in China in the first half of 2025 [9] - Auto insurance premiums in China reached RMB 440 billion, up 4.5% year over year, while AV insurance premiums grew 41% to RMB 66 billion [10] Company Strategy and Development Direction - The company aims to serve 30% to 40% of China's AUV market over the next three to five years [7] - Strategic focus on the EV market, with plans to commercialize AI-driven features and expand globally [8][11] - Launch of two global initiatives: an AI-driven intelligent insurance tool and a fintech solution for automakers [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year adjusted operating profitability in 2025 [8] - The company anticipates that the overseas business will serve as a key growth engine beginning in 2026 [13] - Management highlighted the importance of partnerships with traditional and AV automakers to enhance data access and customer reach [10] Other Important Information - The company revised its full-year net revenue guidance to a range of RMB 3 billion to RMB 3.3 billion [18] - Total operating expenses decreased by 23.9% to RMB 92.8 million (approximately USD 13 million) [17] Q&A Session Summary Question: Recent progress or strategic roadmap for the NEV business - Management highlighted significant growth in NAV policies and partnerships with major manufacturers, focusing on intelligent and connected NAVs [21][23] Question: Current market share in the NEV market - The company currently holds around 10% of the NEV market and aims to reach 30% to 40% in three to five years [26][27] Question: Impact of lower policy rates on net revenues - The lower take rate for EV insurance is due to the preliminary stage of the market, but higher gross margins are expected to improve profitability [32][34] Question: Rollout of new AI products and international expansion - The company is collaborating with local partners in Asia Pacific and other regions to deliver financial insurance services [37] Question: Revenue contribution from new initiatives - Expected revenue from new AI-driven products is projected to be RMB 300 million to RMB 500 million, contributing significantly to profitability [46] Question: Control of operating expenses - The company has maintained good control over headcount and operating expenses, expecting stability in the coming years [51] Question: Initiatives towards autonomous driving - Collaborations with Huawei and Xpeng are underway to develop protections for intelligent autonomous driving scenarios [53] Question: Consumer behavior and regulatory changes - The company sees a growing need for accurate NAV insurance policies globally, with expectations for significant growth in the NEV market [55][56]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $441,900,000, an increase of 21.5% from $363,700,000 in 2023 [28] - Adjusted EBITDA increased by 492% to $9,800,000 for 2024 compared to $1,600,000 in the prior year [32] - Operating costs and expenses rose to $500,300,000 in 2024 from $379,200,000 in 2023 [30] Business Line Data and Key Metrics Changes - Auto insurance revenue increased by 44.4% to $170,500,000 in 2024 from $118,100,000 in 2023, driven by strong partnerships and increased policy sales [29] - Technology services revenue grew by 46.4% to $44,900,000 in 2024, up from $30,700,000 in the previous year [29] - Auto services revenue increased by 5.3% to $226,500,000 in 2024 from $215,000,000 in 2023 [30] Market Data and Key Metrics Changes - The company is focused on digitalizing China's domestic auto insurance and services markets, targeting over 330 million drivers who still purchase insurance offline [6] - The partnership with Tesla expanded to 48 cities from six earlier in the year, indicating significant market penetration [8][20] - The gas vehicle market remains larger than the EV market, presenting a substantial growth opportunity for the company [8][45] Company Strategy and Development Direction - The company aims to leverage AI and cloud technology to enhance operational efficiency and customer experience [26][34] - There is a strong focus on developing customized insurance products and enhancing partnerships with auto manufacturers [20][27] - The company is committed to remaining a technology leader in the market, utilizing AI extensively to improve service efficiency [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the insurance business and the positive impact of AI on operations and profitability [41][42] - The ongoing digitalization trend in China's auto insurance market is seen as a significant opportunity for the company [12][19] - Management highlighted the importance of partnerships with EV manufacturers to enhance customer engagement and service offerings [19][37] Other Important Information - The company has invested approximately $100,000,000 in industry-specific cloud, AI, mobile apps, and data infrastructure [37] - The company has secured a two-year agreement with SAIC Maxis to enhance insurance sales management across its dealership network [21] - The company plans to issue guidance with its first quarter 2025 earnings release, subject to market conditions [48] Q&A Session Summary Question: What impact if any will U.S. Tariffs have on SunCar's business? - Management does not expect U.S. Tariffs to have a material direct impact as the business is focused on China's domestic market [36] Question: Why have so many EV manufacturers been interested in partnering with SunCar? - The company's long-standing market presence and significant investment in technology have created a differentiated solution that meets evolving needs [37] Question: How do you see your Tesla relationship evolving over time? - Tesla is viewed as a strong partner in expanding the portfolio of insurance products and enhancing service delivery [38] Question: What do you attribute the rapid growth of your insurance business to? - Differentiation and the need for manufacturers to monetize customer relationships beyond vehicle sales are key factors [39] Question: How do you view your profitability tracking over the next year? - Continued strong growth in the insurance business is expected to contribute positively to profitability [41] Question: How do you view AI impacting your business in 2025? - AI has been significantly impactful, with plans to integrate it into more features to optimize customer experience [43] Question: How impactful will gas vehicle customers be on your insurance business this year? - The gas vehicle market is larger and is increasingly adopting digital solutions, which is expected to drive significant business [44] Question: What do you see as the future of your Angi AI technology services center? - The center will play a critical role in innovating new insurance products and enhancing collaboration with auto partners [46] Question: What do you see as the most exciting aspect of your services business? - New customer segments such as retail and luxury present exciting growth opportunities [47] Question: Will you be issuing guidance this year? - Guidance is planned to be issued with the first quarter 2025 earnings release [48] Question: Do you expect it will be another large employee stock compensation expense this year? - No, the previous year's expense was a one-time event and not expected to recur [49]