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 - In the first half of 2025, the total written premiums increased by 4% to RMB11.5 billion or approximately $1.6 billion [17] - Net revenues decreased by 17.7% year over year to RMB1,348.7 million or $188.3 million, primarily due to a larger proportion of NAV premiums which have lower service fee rates [18] - Adjusted net loss improved by 56.9% to RMB10.5 million or $1.5 million from the prior year period [20] 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, while Tutu writing premiums reached RMB2.6 billion, up 150% [8] - AUV premiums as a percentage of total written premiums increased to 22.5% from 9.3% in the prior year [9] - Gross profit increased by 1.7% to RMB65.8 million or $9.2 million despite lower net revenues, indicating improved business structure and higher gross margins [19] 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 [10] - Auto insurance premiums in China reached RMB440 billion, up 4.5% year over year, while AV insurance premiums grew 41% to RMB66 billion [11] 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, focusing on partnerships with AV makers and expanding insurance operations [8] - Two global initiatives were launched: an AI-driven intelligent insurance tool and a fintech solution for automakers, aimed at enhancing efficiency and supporting international expansion [12][14] - The company is preparing for global expansion, targeting markets in Asia Pacific, Europe, and Latin America, with expectations to validate China's pricing models internationally [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year adjusted operating profitability in 2025, despite the current transition period [9] - The ongoing expansion of the EUV ecosystem is seen as a strong tailwind for the company's next phase of growth [11] - The company anticipates that the overseas business will serve as a key growth engine beginning in 2026 [14] Other Important Information - The company revised its full-year net revenue guidance to a range of RMB3 billion to RMB3.3 billion, down from RMB3.6 billion to RMB3.8 billion [20] - The total operating expenses decreased by 23.9% to RMB92.8 million or $13 million, primarily due to reduced staff costs and share-based compensation [19] Q&A Session Summary Question: Recent significant progress or strategic roadmap for the NEV business - The company highlighted its focus on intelligent AUM interest platform and partnerships with major NAV manufacturers, aiming for a flywheel effect on revenue and margin over the next three to five years [24][25] Question: Current market share in the NEV market - The company currently holds around 10% of the NEV market and is confident in achieving 30% to 40% market share in three to five years [28][30] 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 in the NAV business offset the lower net revenues [34][35] Question: Rollout of new AI products and international expansion - The company is cooperating with major automakers to enhance claims processing accuracy and is targeting the Asia Pacific region for initial rollout [38] Question: Revenue contribution from new initiatives - The company estimates that new AI-driven products could generate RMB300 million to RMB500 million in revenue over the next three to five years [46] Question: Control of operating expenses - The company is confident in maintaining control over operating expenses, expecting profitability and net margins to increase significantly [48] Question: Initiatives towards autonomous driving - The company is collaborating with Huawei and Xpeng to develop protections for intelligent autonomous driving scenarios [53] Question: Consumer behavior and government regulation - The company believes that the demand for accurate ANV insurance policies will grow, and it aims to leverage its experience in global markets [56]