{"url_path":"/sec/ccgww/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBT**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-04-27","source_url":"https://www.sec.gov/Archives/edgar/data/1965473/0001493152-26-019130-index.html","accession_number":"0001493152-26-019130","cik":"0001965473","ticker":"CCG","issuer_name":"Cheche Group Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1965473/0001493152-26-019130-index.html","primary_entity_key":"0001965473","primary_entity_name":"Cheche Group Inc."},"word_count":28279,"has_tables":true,"body_markdown":"**ITEM\n19. EXHIBT**\n\n \n\n**Exhibit\n\nNumber**\n \n**Description**\n\n \n \n\n1.1\n \n[Amended and Restated Memorandum and Articles of Association of Cheche Group Inc., as currently in effect (incorporated by reference to Exhibit 1.1 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex1-1_chechegroup.htm)\n\n \n \n \n\n2.1\n \n[Description of Securities (incorporated herein by reference to Exhibit 2.1 to the annual report on Form 20-F filed by the Registrant with the Securities and Exchange Commission on April 29, 2024)](https://www.sec.gov/Archives/edgar/data/1965473/000121390024037229/ea020414901ex2-1_cheche.htm)\n\n \n \n \n\n2.2\n \n[Specimen Class A Ordinary Share Certificate of Cheche Group Inc. (incorporated by reference to Exhibit 4.5 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex45.htm)\n\n \n \n \n\n2.3\n \n[Specimen Class B Ordinary Share Certificate of Cheche Group Inc. (incorporated by reference to Exhibit 4.6 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex46.htm)\n\n \n \n \n\n2.4\n \n[Specimen Warrant Certificate of Cheche Group Inc. (incorporated by reference to Exhibit 4.7 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex47.htm)\n\n \n \n \n\n2.5\n \n[Warrant Assignment Agreement dated August 7, 2023 by and among Cheche Group Inc, Prime Impact and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.8 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex48.htm)\n\n \n \n \n\n4.1***\n \n[Agreement and Plan of Merger, dated as of January 29, 2023, by and among Cheche Technology Inc., Cheche Group Inc., Cheche Merger Sub Inc. and Prime Impact Acquisition I. (incorporated by reference to Exhibit 2.1 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799df4.htm#ii450799_100)\n\n \n \n \n\n4.2\n \n[Form of A&R Registration Rights Agreement by and among Cheche Group Inc., Prime Impact Cayman LLC and certain other parties named therein (incorporated by reference to Exhibit 10.13 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex1013.htm)\n\n \n \n \n\n4.3\n \n[Form of Subscription Agreement dated September 11, 2023 by and among Cheche Group Inc., Prime Impact Acquisition I and certain investor named therein (incorporated by reference to Exhibit 4.3 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-3_chechegroup.htm)\n\n \n \n \n\n4.4\n \n[Form of Backstop Agreement dated September 11, 2023 by and among Cheche Group Inc., Prime Impact Acquisition I and certain investor named therein (incorporated by reference to Exhibit 4.4 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-4_chechegroup.htm)\n\n \n \n \n\n4.5\n \n[Form of Sponsor Subscription Agreement dated September 14, 2023, by and among Cheche Group Inc., Prime Impact Acquisition I and Prime Impact Cayman LLC (incorporated by reference to Exhibit 4.5 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-5_chechegroup.htm)\n\n \n \n \n\n4.6\n \n[2023 Equity Incentive Plan(incorporated by reference to Exhibit 10.15 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799df4.htm#ii450799_102)\n\n \n \n \n\n4.7\n \n[English translation of the executed form Spousal Consent granted by the spouse of the individual shareholder of Beijing Cheche Technology Co., Ltd. and a schedule of all executed spousal undertaking adopting the same form. (incorporated by reference to Exhibit 10.6 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex106.htm)\n\n \n \n \n\n4.8\n \n[English translation of Equity Interest Pledge Agreements among Cheche Technology (Ningbo) Co., Ltd., Beijing Cheche Technology Co., Ltd. and shareholders of Beijing Cheche Technology Co., Ltd. dated June 18, 2021 and November 14, 2022, respectively (incorporated by reference to Exhibit 10.7 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex107.htm)\n\n \n \n \n\n4.9\n \n[English translation of the executed form Power of Attorney by shareholders of Beijing Cheche Technology Co., Ltd. and a schedule of all executed power of attorney adopting the same form (incorporated by reference to Exhibit 10.8 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex108.htm)\n\n \n \n \n\n4.10\n \n[English translation of Exclusive Business Cooperation Agreement between Cheche Technology (Ningbo) Co., Ltd. and Beijing Cheche Technology Co., Ltd. dated November 22, 2018. (incorporated by reference to Exhibit 10.9 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex109.htm)\n\n \n\n169\n\n \n\n \n\n4.11\n \n[English translation of Exclusive Option Agreements among Cheche Technology Inc., Cheche Technology (Ningbo) Co., Ltd., Beijing Cheche Technology Co., Ltd. and shareholders of Beijing Cheche Technology Co., Ltd. dated June 18, 2021 and November 14, 2022, respectively (incorporated by reference to Exhibit 10.10 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex1010.htm)\n\n \n \n \n\n4.12\n \n[Form of Shareholder Support Agreement, by and among certain shareholders of Cheche Technology Inc, Cheche Technology Inc., Cheche Group Inc. and Prime Impact Acquisition I (incorporated by reference to Exhibit 10.2 of Prime Impact’s Current Report on Form 8-K filed with the SEC on January 30, 2023).](https://www.sec.gov/Archives/edgar/data/1819175/000119312523018460/d431429dex102.htm)\n\n \n \n \n\n4.13\n \n[Sponsor Support Agreement, dated as of January 29, 2023, by and among certain shareholders of Prime Impact, Cheche Technology Inc, Cheche Group Inc. and Prime Impact Acquisition I (incorporated by reference to Exhibit 10.1 of Prime Impact’s Current Report on Form 8-K filed with the SEC on January 30, 2023).](https://www.sec.gov/Archives/edgar/data/1819175/000119312523018460/d431429dex101.htm)\n\n \n \n \n\n4.14\n \n[Amendment to the Sponsor Support Agreement dated as of September 14, 2023 (incorporated by reference to Exhibit 4.14 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-14_chechegroup.htm)\n\n \n \n \n\n4.15\n \n[Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.14 to the Registration Statement on Form F-4 (Reg. No. 333-273400), initially filed with the SEC on July 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000119312523192374/d450799dex1014.htm)\n\n \n \n \n\n4.16\n \n[Form of Irrevocable Waiver (incorporated by reference to Exhibit 4.16 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-16_chechegroup.htm)\n\n \n \n \n\n4.17\n \n[Letter Agreement dated as of September 13, 2023, by and among Prime Impact Acquisition I, Cheche Technology Inc., and Cheche Group Inc., among others. (incorporated by reference to Exhibit 4.17 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex4-17_chechegroup.htm)\n\n \n \n \n\n8.1\n \n[List of subsidiaries. (incorporated by reference to Exhibit 8.1 to the Shell Company Report on Form 20-F (Reg. No. 001-41801) filed with the SEC on September 27, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023079978/f20f2023ex8-1_chechegroup.htm)\n\n \n \n \n\n10.1\n \n[2023 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-8 (Reg. No. 333-275739), initially filed with the SEC on November 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023089743/ea188903ex10-1_cheche.htm)\n\n \n \n \n\n10.2\n \n[2019 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-8 (Reg. No. 333-275739), initially filed with the SEC on November 24, 2023).](https://www.sec.gov/Archives/edgar/data/1965473/000121390023089743/ea188903ex10-2_cheche.htm)\n\n \n \n \n\n11.1\n \n[Code of Business Conduct and Ethics (incorporated by reference to Exhibit 11.1 to the annual report on Form 20-F filed by the Registrant with the Securities and Exchange Commission on April 29, 2024)](https://www.sec.gov/Archives/edgar/data/1965473/000121390024037229/ea020414901ex11-1_cheche.htm)\n\n \n \n \n\n11.2*\n \n[Statement of Policies Governing Material Non-public Information and the Prevention of Insider Trading of the Registrant](ex11-2.htm)\n\n \n \n \n\n12.1*\n \n[Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex12-1.htm)\n\n \n \n \n\n12.2*\n \n[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex12-2.htm)\n\n \n \n \n\n13.1**\n \n[Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex13-1.htm)\n\n \n \n \n\n13.2**\n \n[Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex13-2.htm)\n\n \n \n \n\n15.1*\n \n[Consent of PricewaterhouseCoopers Zhong Tian LLP](ex15-1.htm)\n\n \n \n \n\n15.2*\n \n[Consent of Marcum Asia CPAs LLP](ex15-2.htm)\n\n \n \n \n\n15.3*\n \n[Consent of Han Kun Law Offices](ex15-3.htm)\n\n \n \n \n\n15.4\n \n[Letter of PricewaterhouseCoopers Zhong Tian LLP to the U.S. Securities and Exchange Commission dated July 18, 2025 (incorporated by reference to Exhibit 16.1 to the Current Report on Form 6-K furnished by the Registrant with the SEC on July 18, 2025).](https://www.sec.gov/Archives/edgar/data/1965473/000164117225020212/ex16-1.htm)\n\n \n \n \n\n97.1\n \n[Cheche Group Inc. Compensation Recovery Policy (incorporated herein by reference to Exhibit 97.1 to the annual report on Form 20-F filed by the Registrant with the Securities and Exchange Commission on April 29, 2024)](https://www.sec.gov/Archives/edgar/data/1965473/000121390024037229/ea020414901ex97-1_cheche.htm)\n\n \n \n \n\n101.INS\n \nInline\nXBRL Instance Document\n\n \n \n \n\n101.SCH\n \nInline\nXBRL Taxonomy Extension Schema Document.\n\n \n \n \n\n101.CAL\n \nInline\nXBRL Taxonomy Extension Calculation Linkbase Document.\n\n \n \n \n\n101.DEF\n \nInline\nXBRL Taxonomy Definition Linkbase Document.\n\n \n \n \n\n101.LAB\n \nInline\nXBRL Taxonomy Extension Label Linkbase Document.\n\n \n \n \n\n101.PRE\n \nInline\nXBRL Taxonomy Extension Presentation Linkbase Document\n\n \n \n \n\n104*\n \nInline\nXBRL for the cover page of this Annual Report on Form 20-F(embedded within the Inline XBRL document)\n\n \n\n*\nFiled\nherewith.\n\n**\nFurnished\nherewith.\n\n***\nAll\nschedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished\nto the SEC upon request.\n\n \n\n170\n\n \n\n \n\n**SIGNATURES**\n\n \n\nThe\nregistrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized\nthe undersigned to sign this annual report on its behalf.\n\n \n\n \n**Cheche\nGroup Inc.**\n\n \n \n \n\nDate:\nApril 27, 2026\nBy:\n*/s/\nLei Zhang*\n\n \nName:\n\nLei\nZhang\n\n \nTitle:\nDirector,\nChief Executive Officer\n\n \n\n171\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**INDEX\nTO THE CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n \n**Page**\n\n[Report of Independent Registered Public Accounting Firm](#fin_001) (PCAOB ID: 5395)\nF-2\n\n[Report of Independent Registered Public Accounting Firm](#fin_002) (PCAOB ID: 1424)\nF-3\n\n[Consolidated Balance Sheets as at December 31, 2024 and 2025](#fin_003)\nF-4\n\n[Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2023, 2024 and 2025](#fin_004)\nF-6\n\n[Consolidated Statements of Changes in Shareholders’ (Deficit)/Equity for the years ended December 31, 2023, 2024 and 2025](#fin_005)\nF-7\n\n[Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2024 and 2025](#fin_006)\nF-8\n\n[Notes to Consolidated Financial Statements](#fin_007)\nF-11\n\n \n\nF-1\n\n \n\n \n\n \n\n \n\n**Report\nof Independent Registered Public Accounting Firm**\n\n \n\nTo\nthe Shareholders and Board of Directors of\n\nCheche\nGroup Inc.\n\n \n\n**Opinion\non the Financial Statements**\n\n \n\nWe have audited the accompanying consolidated balance sheets of Cheche\nGroup Inc. (the “Company”) as of December 31, 2025, the related consolidated statements of operations and comprehensive loss,\nchanges in shareholders’ equity and cash flows for the year ended December 31, 2025, and the related notes (collectively referred\nto as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the\nfinancial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December\n31, 2025, in conformity with accounting principles generally accepted in the United States of America.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal\nsecurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audit in accordance with the standards of the PCAOB.\nThose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free\nof material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit\nof its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control\nover financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control\nover financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audit included performing procedures to assess the risks of material\nmisstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures\nincluded examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included\nevaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation\nof the financial statements. We believe that our audit provides a reasonable basis for our opinion.\n\n \n\n/s/\nMarcum Asia CPAs LLP\n\n \n\nMarcum\nAsia CPAs LLP\n\n \n\nWe\nhave served as the Company’s auditor since 2025.\n\n** **\n\nNew\nYork, New York\n\nApril 27, 2026\n\n \n\nNEW YORK OFFICE ● 7 Penn Plaza ● Suite\n830 ● New York, New York ● 10001\n\nPhone 646.442.4845 ● Fax 646.349.5200 ●\nwww.marcumasia.cn\n\n** **\n\nF-2\n\n \n\n \n\n**Report\nof Independent Registered Public Accounting Firm** \n\n \n\nTo the Board of Directors and Shareholders of Cheche Group Inc.\n\n \n\n**Opinion\non the Financial Statements**\n\n \n\nWe have audited the consolidated balance sheet of  Cheche Group\nInc. and its subsidiaries (the “Company”) as of December 31, 2024, and the related consolidated statements of operations and\ncomprehensive loss, of changes in shareholders’ (deficit)/equity and of cash flows for each of the two years in the period ended\nDecember 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”). In our\nopinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December\n31, 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024 in conformity\nwith accounting principles generally accepted in the United States of America.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese consolidated financial statements are the responsibility of the\nCompany’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our\naudits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are\nrequired to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and\nregulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits of these consolidated\nfinancial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.\n\n \n\nOur audits included performing procedures to assess the risks of material\nmisstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those\nrisks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial\nstatements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as\nevaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for\nour opinion.\n\n \n\n/s/\nPricewaterhouseCoopers Zhong Tian LLP\n\n \n\nBeijing,\nthe People’s Republic of China\n\nApril\n18, 2025\n\n \n\nWe served as the Company’s auditor from 2021 to 2025.\n\n \n\nF-3\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nBALANCE SHEETS**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n  \nNote  \nAs of\nDecember 31,\n2024  \nAs of\nDecember 31,\n2025 \n\n  \n   \n RMB  \n **RMB** \n\nASSETS \n   \n    \n   \n\nCurrent assets: \n   \n    \n   \n\nCash and cash equivalents \n   \n 117,472  \n 144,511 \n\nRestricted cash \n   \n -  \n 5,000 \n\nShort-term investments \n   \n 35,423  \n 226 \n\nAccounts receivable, net \n4  \n 982,479  \n 1,145,752 \n\nPrepayments and other current assets \n5  \n 45,436  \n 60,059 \n\nTotal current assets \n   \n 1,180,810  \n 1,355,548 \n\nNon-current assets: \n   \n    \n   \n\nRestricted cash \n   \n 5,000  \n 21,086 \n\nProperty, equipment and leasehold improvement, net \n6  \n 1,368  \n 831 \n\nIntangible assets, net \n7  \n 5,950  \n 3,850 \n\nRight-of-use assets \n9  \n 5,653  \n 6,453 \n\nGoodwill \n8  \n 84,609  \n 84,609 \n\nOther non-current assets \n   \n 4,530  \n 2,477 \n\nTotal non-current assets \n   \n 107,110  \n 119,306 \n\nTOTAL ASSETS \n   \n 1,287,920  \n 1,474,854 \n\nLIABILITIES \n   \n    \n   \n\nCurrent liabilities \n   \n    \n   \n\nAccounts payable \n   \n 725,815  \n 842,728 \n\nShort-term borrowings \n10  \n 30,000  \n 80,500 \n\nContract liabilities \n2 o) \n 1,781  \n 1,044 \n\nSalary and welfare benefits payable \n   \n 80,377  \n 83,686 \n\nTax payable \n12  \n 12,011  \n 22,657 \n\nAmounts due to related party \n21  \n -  \n 50,626 \n\nAccrued expenses and other current liabilities \n13  \n 25,248  \n 19,206 \n\nShort-term lease liabilities \n9  \n 3,037  \n 4,727 \n\nTotal current liabilities \n   \n 878,269  \n 1,105,174 \n\nNon-current liabilities \n   \n    \n   \n\nDeferred tax liabilities \n11  \n 1,488  \n 963 \n\nLong-term lease liabilities \n9  \n 2,137  \n 801 \n\nLong-term borrowings \n10  \n -  \n 9,800 \n\nAmounts due to related party \n21  \n 45,811  \n - \n\nDeferred revenue \n2 t)  \n 1,432  \n 1,432 \n\nWarrant \n22  \n 3,032  \n 1,512 \n\nTotal non-current liabilities \n   \n 53,900  \n 14,508 \n\nTOTAL LIABILITIES \n   \n 932,169  \n 1,119,682 \n\nCommitments and contingencies (Note 20) \n   \n -  \n - \n\n \n\nF-4\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nBALANCE SHEETS (CONTINUED)**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n \n Note\n \nAs of\nDecember 31,\n2024  \nAs of\nDecember 31,\n2025 \n\n \n  \n \n **RMB**  \n **RMB** \n\n \n \n \n    \n   \n\nSHAREHOLDERS’ EQUITY:\n  \n \n    \n   \n\nOrdinary shares (US$ 0.00001\npar value, 5,000,000,000 and\n5,000,000,000 shares (4,000,000,000\nClass A ordinary shares and 1,000,000,000\nClass B ordinary shares) authorized as of December 31, 2024 and 2025, respectively; 80,321,873\nand 83,020,061 shares (64,423,557\nClass A ordinary shares and 18,596,504\nClass B ordinary shares) issued and outstanding as of December 31, 2024 and 2025, respectively)*\n  \n \n 6  \n 6 \n\nTreasury stock*\n  \n \n (1,025) \n (1,025)\n\nAdditional paid-in capital*\n  \n \n 2,525,741  \n 2,550,197 \n\nAccumulated deficit\n  \n \n (2,175,057) \n (2,192,846)\n\nAccumulated other comprehensive income/(loss)\n  \n \n 6,086  \n (1,160)\n\nTOTAL SHAREHOLDERS’ EQUITY:\n  \n \n 355,751  \n 355,172 \n\nTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY\n  \n \n 1,287,920  \n 1,474,854 \n\n \n\n***\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\n*The\naccompanying notes are an integral part of these consolidated financial statements*\n\n \n\nF-5\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nSTATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n  \n   \nFor the year ended\nDecember 31,  \nFor the year ended\nDecember 31,  \nFor the year ended\nDecember 31, \n\n  \nNote  \n2023  \n2024  \n2025 \n\n  \n   \n **RMB**  \n **RMB**  \n **RMB** \n\nNet revenues \n15  \n 3,301,418  \n 3,473,139  \n 3,009,845 \n\nCost of revenues \n16  \n (3,161,193) \n (3,314,377) \n (2,849,487)\n\n**Gross\nprofit** \n   \n 140,225  \n 158,762  \n 160,358 \n\nOperating expenses: \n   \n    \n    \n   \n\nSelling and marketing expenses \n   \n (111,454) \n (79,501) \n (68,249)\n\nGeneral and administrative expenses \n   \n (139,385) \n (107,857) \n (75,758)\n\nResearch and development expenses \n   \n (57,167) \n (37,947) \n (37,238)\n\nTotal operating expenses \n   \n (308,006) \n (225,305) \n (181,245)\n\nOperating loss \n   \n (167,781) \n (66,543) \n (20,887)\n\nOther expenses: \n   \n    \n    \n   \n\nInterest income \n   \n 5,398  \n 6,037  \n 3,236 \n\nInterest expense \n   \n (1,446) \n (838) \n (2,279)\n\nForeign exchange (losses)/gains \n   \n (2,546) \n (2,810) \n 4,805 \n\nGovernment grants \n   \n 12,371  \n 887  \n 1,879 \n\nChanges in fair value of warrant \n   \n 1,702  \n 2,634  \n 1,476 \n\nChanges in fair value of amounts due to related party \n21  \n (7,524) \n (757) \n (4,461)\n\nOthers, net \n   \n (127) \n (137) \n (1,964)\n\nLoss before income tax \n   \n (159,953) \n (61,527) \n (18,195)\n\nIncome tax benefit \n11  \n 363  \n 291  \n 406 \n\nNet loss \n   \n (159,590) \n (61,236) \n (17,789)\n\nAccretions to preferred shares redemption value \n   \n (762,169) \n -  \n - \n\nNet loss attributable to the Cheche’s ordinary shareholders \n   \n (921,759) \n (61,236) \n (17,789)\n\nNet loss \n   \n (159,590) \n (61,236) \n (17,789)\n\nOther comprehensive income/(loss) \n   \n    \n    \n   \n\nForeign currency translation adjustments, net of nil tax \n   \n 1,621  \n 4,739  \n (6,892)\n\nFair value changes of amounts due to related party due to own credit risk \n21  \n (405) \n 197  \n (354)\n\nTotal other comprehensive income/(loss) \n   \n 1,216  \n 4,936  \n (7,246)\n\nTotal comprehensive loss \n   \n (158,374) \n (56,300) \n (25,035)\n\nAccretions to preferred shares redemption value \n14  \n (762,169) \n -  \n - \n\nComprehensive loss attributable to the Cheche’s ordinary shareholders \n   \n (920,543) \n (56,300) \n (25,035)\n\nNet loss attributable to the Cheche’s ordinary shareholders per share \n19  \n    \n    \n   \n\nBasic \n   \n (20.30) \n (0.78) \n (0.22)\n\nDiluted \n   \n (20.30) \n (0.78) \n (0.22)\n\nWeighted average number of ordinary shares* \n   \n    \n    \n   \n\nBasic \n   \n 45,415,205  \n 78,043,661  \n 82,581,013 \n\nDiluted \n   \n 45,415,205  \n 78,043,661  \n 82,581,013 \n\nShare-based compensation expenses included in \n   \n (109,983) \n (33,869) \n (24,352)\n\nCost of revenues \n   \n (191) \n (12) \n (3)\n\nSelling and marketing expenses \n   \n (30,688) \n (5,690) \n (3,053)\n\nGeneral and administrative expenses \n   \n (67,519) \n (26,272) \n (20,443)\n\nResearch and development expenses \n   \n (11,585) \n (1,895) \n (853)\n\n \n\n*\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\n*The\naccompanying notes are an integral part of these consolidated financial statements.*\n\n \n\nF-6\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nSTATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n \n \nNote \nShares  \n\nAmount\n\n*\n  \nShares  \n\nAmount\n\n*\n  \ncapital*  \n(loss)/income  \ndeficit  \nequity \n\n \n \n  \nOrdinary shares*  \nTreasury stock*  \nAdditional paid-in  \nAccumulated other comprehensive  \nAccumulated  \nTotal shareholders’ \n\n \n \nNote \nShares  \nAmount  \nShares  \nAmount  \ncapital*  \n(loss)/income  \ndeficit  \n(deficit)/equity \n\n \n \n  \n   \nRMB  \n   \nRMB  \nRMB  \nRMB  \nRMB  \nRMB \n\nBalance at January 1, 2023\n \n  \n 31,780,394  \n 2  \n (2,885,826) \n (1,025) \n 25  \n (66) \n (1,259,479) \n (1,260,543)\n\nNet loss\n \n  \n -  \n -  \n -  \n -  \n -  \n -  \n (159,590) \n (159,590)\n\nShare-based compensation\n \n18 a) \n 1,500  \n -  \n -  \n -  \n 109,983  \n -  \n -  \n 109,983 \n\nOrdinary share issuance\n \n14 \n 1,317,874  \n -  \n -  \n -  \n 18,930  \n -  \n (18,930) \n - \n\nPreferred shares redemption value accretion\n \n14 \n -  \n -  \n -  \n -  \n (86,347) \n -  \n (675,822) \n (762,169)\n\nConversion of Preferred Shares to Class A ordinary shares\n \n3 \n 35,190,468  \n 3  \n -  \n -  \n 2,321,047  \n -  \n -  \n 2,321,050 \n\nPIPE financing – Prime Impact Cayman LLC (the “Sponsor”)\n \n3 \n 634,228  \n -  \n -  \n -  \n 8,609  \n -  \n -  \n 8,609 \n\nPIPE financing – World Dynamic Limited\n \n3 \n 1,300,000  \n -  \n -  \n -  \n 93,436  \n -  \n -  \n 93,436 \n\nPIPE financing – Goldrock Holdings Limited\n \n3 \n 500,000  \n -  \n -  \n -  \n 35,863  \n -  \n -  \n 35,863 \n\nCapitalization of PIPE financing costs\n \n3 \n -  \n -  \n -  \n -  \n (4,953) \n -  \n -  \n (4,953)\n\nReverse Recapitalization transaction\n \n3 \n 4,716,245  \n -  \n -  \n -  \n (4,720) \n -  \n -  \n (4,720)\n\nForeign currency translation adjustment\n \n  \n -  \n -  \n -  \n -  \n -  \n 1,621  \n -  \n 1,621 \n\nFair value changes of amounts due to related party due to own credit risk\n \n  \n -  \n -  \n -  \n -  \n -  \n (405) \n -  \n (405)\n\nBalance at December 31, 2023\n \n  \n 75,440,709  \n 5  \n (2,885,826) \n (1,025) \n 2,491,873  \n 1,150  \n (2,113,821) \n 378,182 \n\n \n\n*\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n** **\n\n  \nNote \nShares  \nAmount  \nShares  \nAmount  \ncapital*  \nincome  \ndeficit  \nequity \n\n  \n  \nOrdinary shares  \nTreasury stock  \nAdditional paid-in  \nAccumulated other comprehensive  \nAccumulated  \nTotal shareholders’ \n\n  \nNote \nShares  \nAmount  \nShares  \nAmount  \ncapital*  \nincome  \ndeficit  \nequity \n\n  \n  \n   \nRMB  \n   \nRMB  \nRMB  \nRMB  \nRMB  \nRMB \n\nBalance at January 1, 2024 \n  \n 75,440,709  \n 5  \n (2,885,826) \n (1,025) \n 2,491,873  \n 1,150  \n (2,113,821) \n 378,182 \n\nNet loss \n  \n -  \n -  \n -  \n -  \n -  \n -  \n (61,236) \n (61,236)\n\nShare-based compensation \n18 a) \n 4,881,164  \n 1  \n -  \n -  \n 33,868  \n -  \n -  \n 33,869 \n\nForeign currency translation adjustment \n  \n -  \n -  \n -  \n -  \n -  \n 4,739  \n -  \n 4,739 \n\nFair value changes of amounts due to related party due to own credit risk \n  \n -  \n -  \n -  \n -  \n -  \n 197  \n -  \n 197 \n\nBalance at December 31, 2024 \n  \n 80,321,873  \n 6  \n (2,885,826) \n (1,025) \n 2,525,741  \n 6,086  \n (2,175,057) \n 355,751 \n\n \n\n  \nNote \nShares  \nAmount  \nShares  \nAmount  \ncapital*  \nincome/(loss)  \ndeficit  \nequity \n\n  \n  \nOrdinary shares  \nTreasury stock  \nAdditional paid-in  \nAccumulated other comprehensive  \nAccumulated  \nTotal shareholders’ \n\n  \nNote \nShares  \nAmount  \nShares  \nAmount  \ncapital*  \nincome/(loss)  \ndeficit  \nequity \n\n  \n  \n   \nRMB  \n   \nRMB  \nRMB  \nRMB  \nRMB  \nRMB \n\nBalance at January 1, 2025 \n  \n 80,321,873  \n 6  \n (2,885,826) \n (1,025) \n 2,525,741  \n 6,086  \n (2,175,057) \n 355,751 \n\nBalance \n  \n 80,321,873  \n 6  \n (2,885,826) \n (1,025) \n 2,525,741  \n 6,086  \n (2,175,057) \n 355,751 \n\nNet loss \n  \n -  \n -  \n -  \n -  \n -  \n -  \n (17,789) \n (17,789)\n\nShare-based compensation \n18 a) \n 2,698,188  \n -  \n 515,531  \n -  \n 24,456  \n -  \n -  \n 24,456 \n\nForeign currency translation adjustment \n  \n -  \n -  \n -  \n -  \n -  \n (6,892) \n -  \n (6,892)\n\nFair value changes of amounts due to related party due to own credit risk \n  \n -  \n -  \n -  \n -  \n -  \n (354) \n -  \n (354)\n\nBalance at December 31, 2025 \n  \n 83,020,061  \n 6  \n (2,370,295) \n (1,025) \n 2,550,197  \n (1,160) \n (2,192,846) \n 355,172 \n\nBalance \n  \n 83,020,061  \n 6  \n (2,370,295) \n (1,025) \n 2,550,197  \n (1,160) \n (2,192,846) \n 355,172 \n\n* *\n\n*The\naccompanying notes are an integral part of these consolidated financial statements.*\n\n \n\nF-7\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nSTATEMENTS OF CASH FLOWS**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n  \n   \n   \n  \n\n  \nFor\nthe years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nCash\nflows from operating activities: \n    \n    \n   \n\nNet\nLoss \n (159,590) \n (61,236) \n (17,789)\n\nAdjustments\nto reconcile net loss to net cash used in operating activities: \n    \n    \n   \n\nDepreciation\nof property, equipment and leasehold improvement \n 1,049  \n 1,134  \n 473 \n\nAmortization\nof right-of-use asset \n 8,410  \n 5,260  \n 5,600 \n\nAmortization\nof intangible assets \n 2,100  \n 2,100  \n 2,100 \n\nChanges\nin fair value of warrant \n (1,702) \n (2,634) \n (1,476)\n\nChanges\nin fair value of amounts due to related party \n 7,524  \n 757  \n 4,461 \n\nShare-based\ncompensation expense \n 109,983  \n 33,869  \n 24,352 \n\nProvision/(reversal)\nof allowance for current expected credit losses \n 1,203  \n 3,387  \n (1,218)\n\nForeign\nexchange losses/(gains) \n 2,546  \n 2,810  \n (4,805)\n\nLoss\non disposal of property, equipment and leasehold improvement \n 46  \n 816  \n 90 \n\nDispute\nresolution expenses \n -  \n 2,355  \n - \n\nDeferred\nincome tax \n (525) \n (525) \n (525)\n\nChanges\nin operating assets and liabilities: \n    \n    \n   \n\nAccounts\nreceivable \n (65,602) \n (519,617) \n (162,055)\n\nPrepayments\nand other current assets \n (7,028) \n 2,655  \n (12,795)\n\nAccounts\npayable \n 89,712  \n 408,947  \n 116,913 \n\nContract\nliabilities \n 3,407  \n (2,514) \n (737)\n\nSalary\nand welfare benefits payable \n 10,306  \n 6,768  \n 3,309 \n\nTax\npayable \n (2,128) \n 11,061  \n 10,646 \n\nAccrued\nexpenses and other current liabilities \n (17,680) \n (5,353) \n (1,050)\n\nLease\nliabilities \n (8,981) \n (4,175) \n (6,044)\n\nNet\ncash used in operating activities \n (26,950) \n (114,135) \n (40,550)\n\nCash\nflows from investing activities: \n    \n    \n   \n\nPurchase\nof property, equipment and leasehold improvement \n (549) \n (1,663) \n (75)\n\nProceeds\nfrom disposal of property, equipment and intangible assets \n 22  \n 12  \n 48 \n\nLoan\nprovided to a third party \n -  \n (10,000) \n - \n\nLoan\nrepaid by a third party \n -  \n 10,000  \n - \n\nPlacement\nof short-term investments \n (42,722) \n (186,471) \n (16,778)\n\nCash\nreceived from maturities of short-term investments \n 56,071  \n 172,522  \n 52,202 \n\nNet\ncash generated from/(used in) investing activities \n 12,822  \n (15,600) \n 35,397 \n\n \n\nF-8\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nSTATEMENTS OF CASH FLOWS (CONTINUED)**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nCash flows from financing activities: \n    \n    \n   \n\nCash received from short-term borrowings from bank (Note 10(1)) \n 20,000  \n 30,000  \n 102,500 \n\nCash repayments of short-term borrowings to bank (Note 10(1)) \n -  \n (20,000) \n (52,000)\n\nCash receipt of the debt proceeds (Note 13) \n -  \n 5,000  \n - \n\nCash repayments of short-term borrowings to a third party \n -  \n -  \n (5,000)\n\nCash received from long-term borrowings from bank \n -  \n -  \n 10,000 \n\nCash repayments of long-term borrowings to bank \n -  \n -  \n (200)\n\nCash repayments of amounts due to a related party (Note 21(a)(i)) \n (12,610) \n (10,000) \n - \n\nProceeds from exercise of share-based awards \n    \n    \n 104 \n\nProceeds from PIPE financing – Prime Impact Cayman LLC (Note 3) \n 8,609  \n -  \n - \n\nProceeds from PIPE financing – World Dynamic Limited (Note 3) \n 93,436  \n -  \n - \n\nProceeds from PIPE financing – Goldrock Holdings Limited (Note 3) \n 35,863  \n -  \n - \n\nProceeds from PIPE financing \n 35,863  \n -  \n - \n\nCash payment for PIPE financing cost (Note 3) \n (4,953) \n    \n   \n\nCash payment for settling a dispute with a security holder \n -  \n (3,055) \n - \n\nNet cash generated from financing activities \n 140,345  \n 1,945  \n 55,404 \n\nEffect of foreign exchange rate changes on cash and cash equivalents \n 2,230  \n 1,870  \n (2,126)\n\nNet increase/(decrease) in cash and cash equivalents and restricted cash \n 128,447  \n (125,920) \n 48,125 \n\n \n\nF-9\n\n \n\n \n\n**CHECHE\nGROUP INC.**\n\n**CONSOLIDATED\nSTATEMENTS OF CASH FLOWS (CONTINUED)**\n\n**(All\namounts in thousands, except for share and per share data)**\n\n \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nCash and cash equivalents and restricted cash at beginning of the year \n 119,945  \n 248,392  \n 122,472 \n\nCash and cash equivalents and restricted cash at end of the year \n 248,392  \n 122,472  \n 170,597 \n\nReconciliation to amounts on consolidated balance sheet: \n    \n    \n   \n\nRestricted cash at end of the year \n 5,000  \n 5,000  \n 26,086 \n\nCash and cash equivalents at end of the year \n 243,392  \n 117,472  \n 144,511 \n\nSupplemental disclosures of cash flow information: \n    \n    \n   \n\nCash payments of interest expense \n (898) \n (584) \n (2,017)\n\nCash paid for income tax \n (162) \n (234) \n (119)\n\nSupplemental schedule of non-cash investing and financing activities: \n    \n    \n   \n\nAccretions to preferred shares redemption value \n 762,169  \n -  \n - \n\nConversion of Preferred Shares into Class A ordinary shares \n 2,321,050  \n -  \n - \n\nRight-of-use assets obtained in exchange for obligations \n 5,602  \n 6,843  \n 7,047 \n\nRight-of-use assets released due to termination of lease contracts \n (1,666) \n (6,179) \n (648)\n\n \n\n*The\naccompanying notes are an integral part of these consolidated financial statements.*\n\n \n\nF-10\n\n \n\n \n\n**1.\nOrganization and Principal Activities**\n\n \n\nCheche\nGroup Inc. (the “Company” or “Cheche Group”) was incorporated in the Cayman Islands in January 2023 as an\nexempted company with limited liability. The Company is a holding company and conducts its business mainly through its subsidiaries,\nvariable interest entity (“VIE”) and subsidiaries of VIE (collectively referred to as the “Group”). Cheche\nTechnology Inc. (“CCT”) and Cheche Technology (Canada) Ltd. (“Cheche Canada”) are wholly owned subsidiaries\nof the Company. Cheche Technology (HK) Limited (“Cheche HK”) is a wholly owned subsidiary of CCT. Baodafang Technology\nCo., Ltd. (“Baodafang”) is a wholly owned subsidiary of Cheche HK. Cheche Technology (Ningbo) Co., Ltd. (“Cheche\nNingbo”) is wholly foreign-owned enterprise (the “WFOE”). The Group conducted its business in the People’s\nRepublic of China (the “PRC” or “China”) through a series of contractual agreements entered into by the WFOE\nwith the VIE based in China. The Group is primarily engaged in the operation of providing insurance transaction services,\nSoftware-as-a-Service (“SaaS”) services and other services in China.\n\n \n\nThe\nfollowing sets forth the Company’s consolidated subsidiaries, VIE and subsidiaries of VIE are as follows:\n\n \n\nSchedule\nof Consolidated Subsidiaries,VIE and Subsidiaries of VIE\n\n**Subsidiaries**\n** **\n**Place\nand\nyear of incorporation**\n** **\n**Percentage\nof\ndirect or indirect\neconomic ownership**\n** **\n**Principal\nactivities**\n\nCheche\nTechnology Inc. (“CCT”)\n \nCayman\nIslands,\n\n2018\n \n100%\n \nInvestment\nholding\n\nCheche\nTechnology (Canada) Ltd. (“Cheche Canada”)\n \nCanada,\n\n2025\n \n100%\n \nInvestment\nholding\n\nCheche\nTechnology (HK) Limited (“Cheche HK”)\n \nHong\nKong, China,\n\n2018\n \n100%\n \nInvestment\nholding\n\nCheche\nTechnology (Ningbo) Co., Ltd. (“Cheche Ningbo” or “wholly foreign-owned enterprise” or “WFOE”\nor “primary beneficiary of the VIE”)\n \nNingbo,\nChina,\n\n2018\n \n100%\n \nTechnical\nsupport and consulting services\n\nBaodafang\nTechnology Co., Ltd. (“Baodafang”)\n \nBeijing,\nChina,\n\n2020\n \n100%\n \nTechnology\nservice and SaaS services\n\n \n\n**VIE**\n** **\n**Place\nand\nyear of incorporation**\n** **\n**Percentage\nof\ndirect or indirect\neconomic interest**\n** **\n**Principal\nactivities**\n\nBeijing\nChe Yu Che Technology Co., Ltd.\n\n(“Beijing Cheche”)\n \nBeijing,\nChina,\n\n2014\n \n100%*\n \nTechnology\nservice\n\n \n\n**Subsidiaries\nof VIE**\n** **\n**Place\nand\nyear of incorporation/\nacquisition**\n** **\n**Percentage\nof\ndirect or indirect\neconomic interest**\n** **\n**Principal\nactivities**\n\nCheche\nInsurance Sales & Service Co., Ltd. (“Cheche Insurance”)\n \nGuangzhou,\nChina,\n\n2017\n \n100%*\n \nInsurance\nbrokerage\n\nHuicai\nInsurance Brokerage Co., Ltd.\n \nBeijing,\nChina,\n\n2016\n \n100%*\n \nDormant\n\nCheche\nZhixing (Ningbo) Auto Service Co., Ltd.\n \nNingbo,\nChina,\n\n2019\n \n100%*\n \nDormant\n\n \n\n*\nThe\nWFOE has 100% beneficial interests in the consolidated VIE (including its subsidiaries).\n\n \n\nF-11\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\nOn\nSeptember 14, 2023 (the “Closing Date”), the Company completed the business combination (the “Business Combination”)\nwith Prime Impact Acquisition I (“Prime Impact”). Cheche Group began trading on the Nasdaq Stock Exchange on September 18,\n2023. On the Closing Date, the Company consummated the Business Combination with Prime Impact, pursuant to the Business Combination Agreement\ndated January 29, 2023, by and among Prime Impact, the Company, Cheche Merger Sub Inc. (“Merger Sub”), and CCT. Pursuant\nto the Business Combination Agreement, the Business Combination was effected in two steps. On September 14, 2023, (1) Prime Impact merged\nwith and into the Company (the “Initial Merger”), with the Company surviving the Initial Merger as a publicly traded entity;\nand (2) immediately following the Initial Merger, Merger Sub merged with and into CCT (the “Acquisition Merger” and, together\nwith the Initial Merger, the “Mergers,” and together with all other transactions contemplated by the Business Combination\nAgreement, the “Business Combination”), with CCT surviving the Acquisition Merger as a wholly owned subsidiary of the Company.\n\n \n\nThe\nBusiness Combination was accounted for as a reverse recapitalization (the “Reverse Recapitalization”) in accordance with\nU.S. GAAP. As a result of the Business Combination, CCT was deemed the accounting acquirer. This determination is primarily based on\nthe shareholders of CCT comprising the majority of the voting power of the Company and having the ability to nominate the members of\nthe Company’s Board, CCT’s operations prior to the acquisition comprising the only ongoing operations, and CCT’s senior\nmanagement comprising a majority of the Group’s senior management. Accordingly, for accounting purposes, the financial statements\nof the post-combination company represent a continuation of the financial statements of CCT. Prime Impact was treated as the “acquired”\ncompany for accounting purposes. As Prime Impact does not meet the definition of a “business” for accounting purposes, the\nReverse Recapitalization was treated as the equivalent of CCT issuing shares for the net assets of Prime Impact, accompanied by a recapitalization.\nThe net assets of Prime Impact were stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated\nfinancial statements reflect (i) the historical operating results of CCT prior to the Reverse Recapitalization; (ii) the combined results\nof the Company and CCT following the closing of the Reverse Recapitalization; (iii) the assets and liabilities of CCT at their historical\ncost; and (iv) the Company’s equity structure for all periods presented. Transaction costs related to the Reverse Recapitalization\npaid to Prime Impact as part of the Business Combination Agreement were charged to equity as a reduction of the net proceeds received\nin exchange for the shares issued to the shareholders of Prime Impact.\n\n \n\nIn\naccordance with guidance applicable to these circumstances, the equity structure has been retroactively adjusted in all comparative periods\nup to the Closing Date, to reflect the number of shares of the Company’s ordinary shares issued to CCT’s shareholders in\nconnection with the Reverse Recapitalization transaction. As such, the ordinary shares and corresponding capital amounts and earnings\nper share related to CCT convertible redeemable preferred shares and ordinary shares prior to the Reverse Recapitalization have been\nretroactively restated as shares reflecting the exchange ratio established pursuant to the Business Combination Agreement. In conjunction\nwith the Reverse Recapitalization, the Company’s ordinary shares underwent a 13.6145-for-1 conversion. Note that the consolidated\nfinancial statements give retroactive effect as though the conversion of the Company’s ordinary shares occurred for all periods\npresented, without any change in the par value per share.\n\n \n\n**Contractual\narrangements with VIE**\n\n \n\nPRC\nlaws and regulations place certain restrictions on foreign investment in value-added telecommunication service businesses. To comply\nwith PRC laws and regulations, the Group operates its businesses in the PRC through the VIE and VIE subsidiaries. Most of the Group’s\nrevenues, cost of revenues, expenses and net loss in China were generated directly or indirectly through the VIE and VIE’s subsidiaries.\nThe Company relies on a series of contractual arrangements among its wholly-owned PRC subsidiary Cheche Ningbo, the VIE and their shareholders\nto conduct the business operations of the VIE and VIE subsidiaries.\n\n \n\nF-12\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\n**Contractual\narrangements with VIE (Continued)**\n\n \n\nBelow\nis a summary of the currently effective contractual arrangements by and among the Company’s wholly-owned subsidiary Cheche Ningbo,\nBeijing Cheche and its shareholders (also Nominee Shareholders).\n\n \n\n \n*i)*\n*Equity\nInterest Pledge Agreement*\n\n \n\nPursuant\nto the Equity Interest Pledge Agreement entered into amongst WFOE, the VIE and Nominee Shareholders of the VIE, the Nominee Shareholders\nof the VIE pledged all of their equity interests in the VIE to the WFOE to ensure the Nominee Shareholders fully perform their obligations\nunder the Exclusive Option Agreement, the Exclusive Business Cooperation Agreement and the Power of Attorney. The WFOE shall have the\nright to collect dividends generated by the pledged equity interests during the term of the pledge. If the Nominee Shareholders breach\ntheir respective contractual obligations under the Equity Interest Pledge Agreement, the WFOE, as pledgee, will be entitled to rights,\nincluding but not limited to being paid based on the monetary valuation that such equity interest is converted into or from the proceeds\nfrom the auction or sale of the equity interest. The Nominee Shareholders of the VIE are prohibited from transferring their pledged equity\ninterests, placing or permitting any encumbrance that would prejudice the WFOE’s interests without the WFOE’s prior written\nconsent. The pledge rights were effective upon registration of the pledges with the relevant Administration for Market Regulation (the\n“SAMR”) (formerly known as State Administration for Industry and Commerce), and the Equity Interest Pledge Agreement will\nremain effective until all the obligations have been satisfied in full. The WFOE completed the registration of the pledge of equity interests\nin the VIE with the relevant office of the SAMR in accordance with the PRC Civil Code.\n\n \n\n \n*ii)*\n*Exclusive\nOption Agreement*\n\n \n\nPursuant\nto the Exclusive Option Agreement entered into amongst the CCT, WFOE, VIE and the Nominee Shareholders, the Nominee Shareholders irrevocably\ngranted the WFOE or its designated party, an exclusive option to purchase all or part of the equity interests held by the Nominee Shareholders\nin the VIE at its sole discretion, to the extent permitted under the PRC laws for the cost of the initial contributions to the registered\ncapital or the minimum amount of consideration permitted by applicable PRC law. The WFOE has an option to purchase from VIE at WFOE’s\nsole discretion, any or all of the assets and business of VIE, to the extent permitted under PRC law, and at the lowest purchase price\npermitted by PRC law. The Nominee Shareholders should remit to the WFOE any gain that is paid by WFOE or its designated person(s) in\nconnection with the purchased equity interest or the purchased business asset. The WFOE or its designated person(s) have sole discretion\nto decide when to exercise the option, whether in part or in full. Any and all dividends and other capital distributions made by the\nVIE to its Nominee Shareholders should be repaid to the WFOE in full amount. CCT would provide unlimited financial support to the VIE\nif, in the normal operation of business, the VIE should become in need of any form of reasonable financial support. If the VIE were to\nincur any loss and as a result cannot repay any loans from CCT, CCT should unconditionally forgive any such loans to the VIE given that\nthe VIE provides sufficient proof for its loss and incapacity to repay. This Exclusive Option Agreement remains effective until all equity\ninterests held by Nominee Shareholders in the VIE have been transferred or assigned to the WFOE and/or any other person designated by\nthe WFOE in accordance with this Exclusive Option Agreement.\n\n \n\n \n*iii)*\n*Exclusive\nBusiness Cooperation Agreement*\n\n \n\nPursuant\nto the Exclusive Business Cooperation Agreements entered into amongst WFOE and VIE, the WFOE is engaged by the VIE to exclusively provide\ntechnical and consulting services including but not limited to the licensing of technology and software, design, development, maintenance\nand updating of technologies, business and management consultation, and marketing and promotional services. The WFOE may appoint or designate\nits affiliates or other qualified parties to provide the services covered by the Exclusive Business Cooperation Agreement. In return,\nthe VIE agrees to pay a service fee equal to 100% of the consolidated net profits of the VIE after the VIE turns cumulative profitable\nand after certain expenses. The WFOE has sole discretion in determining the service fee charged to the VIE under this agreement. Without\nthe WFOE’s prior written consent, the VIE shall not, directly and indirectly, obtain the same or similar services as provided under\nthis agreement from any third party. The WFOE can terminate the Exclusive Business Cooperation Agreement at its sole discretion in the\nevent that the VIE breaches the Exclusive Business Cooperation Agreement and fails to take remedial measures within ten days of written\nnotice by the WFOE; however, the VIE cannot terminate the Exclusive Business Cooperation Agreement unless otherwise required by the applicable\nlaws. The agreement will be in effect for an unlimited term, until the term of business of one party expires and extension is denied\nby the relevant approval authorities.\n\n \n\nF-13\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\n**Contractual\narrangements with VIE (Continued)**\n\n \n\n \n*iv)*\n*Power\nof Attorney*\n\n \n\nPursuant\nto the Power of Attorney agreement entered into amongst WFOE, VIE and the Nominee Shareholders, Nominee Shareholders irrevocably appoint\nWFOE as their attorney-in-fact to exercise on each shareholder’s behalf any and all rights that each shareholder has in respect\nof its equity interests in the VIE, including but not limited to executing the voting rights and the right to appoint directors and executive\nofficers of VIE. The agreements will remain effective and irrevocable for as long as the relevant Nominee Shareholder holds any equity\ninterests in VIE.\n\n \n\n \n*v)*\n*Spousal\nConsent Letter*\n\n \n\nEach\nspouse of the married Nominee Shareholders of the VIE entered into a Spousal Consent Letter, which unconditionally and irrevocably agreed\nthat 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\nPledge Agreement and the Power of Attorney. Each spouse agreed not to assert any rights over the equity interests in the VIE held by\ntheir spouse. In addition, in the event that the spouses obtain any equity interests in the VIE held by their spouse for any reason,\nthey agreed to be bound by the contractual arrangements.\n\n \n\nThe\nEquity Interest Pledge Agreement, Exclusive Option Agreement, Exclusive Business Cooperation Agreement, Power of Attorney and Spousal\nConsent Letter to Beijing Cheche were amended to reflect the changes of shareholders’ holding in the VIE entity in their respective\ndates. No other material terms or conditions of these agreements were changed or altered. There was no impact to the Group’s effective\ncontrol over Beijing Cheche and the Group continues to consolidate Beijing Cheche.\n\n \n\n**Risks\nin relation to the VIE structure**\n\n \n\nThe\nGroup’s business is mainly conducted through the VIE and subsidiaries of VIE, of which the Company is the ultimate primary beneficiary.\nThe Company has concluded that (i) the ownership structure of the VIE is not in violation of any applicable PRC laws or regulations currently\nin effect and (ii) each of the VIE contractual agreements is valid, binding, and enforceable in accordance with their terms and applicable\nPRC laws or regulations currently in effect. However, uncertainties in the PRC legal system could cause the relevant regulatory authorities\nto find the current VIE contractual agreements and the legal structure to be in violation of any existing or future PRC laws or regulations.\n\n \n\nOn\nMarch 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which became effective on January\n1, 2020, together with their implementation rules and ancillary regulations. The Foreign Investment Law does not explicitly classify\ncontractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign\ninvestment,” which includes investments made by foreign investors through means stipulated in laws or administrative regulations\nor other methods prescribed by the State Council. It is unclear whether the Group’s corporate structure will be seen as violating\nthe foreign investment rules as the Group is currently leveraging the contractual arrangements to operate certain business in which foreign\ninvestors are prohibited from or restricted to investing. If variable interest entities fall within the definition of foreign investment\nentities, the Group’s ability to use the contractual arrangements with the VIE and the Group’s ability to conduct business\nthrough the VIE could be severely limited.\n\n \n\nIn\naddition, if the Group’s corporate structure and the contractual arrangements with the VIE through which the Group conducts its\nbusiness in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC\nregulatory authorities could:\n\n \n\n \n●\nrevoke\nthe business licenses and/or operating licenses of the Group’s PRC entities;\n\n \n \n \n\n \n●\nimpose\nfines;\n\n \n \n \n\n \n●\nconfiscate\nany income that they deem to be obtained through illegal operations, or impose other requirements with which the Group may not be\nable to comply;\n\n \n \n \n\n \n●\ndiscontinue\nor place restrictions or onerous conditions on the Group’s operations;\n\n \n\nF-14\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\n**Risks\nin relation to the VIE structure (Continued)**\n\n \n\n \n●\nplace\nrestrictions on the right to collect revenues;\n\n \n \n \n\n \n●\nshut\ndown the Group’s servers or block the Group’s websites or mobile apps;\n\n \n \n \n\n \n●\nthe\nGroup to restructure ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering\nthe equity pledges of the VIE, which in turn would affect the ability to consolidate, derive economic interests from the VIE and\ntheir subsidiaries;\n\n \n \n \n\n \n●\nrestrict\nor prohibit the use of the proceeds from financing activities to finance the business and operations of the VIE and their subsidiaries;\nor\n\n \n \n \n\n \n●\ntake\nother regulatory or enforcement actions that could be harmful to the Group’s business.\n\n \n\nThe\nimposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s\nbusinesses. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of\nthe VIE or the right to receive its economic benefits, the Group would no longer be able to consolidate the VIE. The management believes\nthat the likelihood for the Group to lose such ability is remote based on current facts and circumstances. However, the interpretation\nand implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability\nof contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities\nwill take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual\narrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, it may lead to changes in PRC laws, regulations, and\npolicies or in the interpretation and application of existing laws, regulations and policies, which may limit legal protections available\nto the Group to enforce the contractual arrangements should the VIE or the shareholder of the VIE fail to perform their obligations under\nthose arrangements. In addition, shareholder of the VIE is a PRC holding entity beneficially owned by the Founder, chairman of the board\nof directors and chief executive officer of the Company. The enforceability, and therefore the benefits, of the contractual agreements\nbetween the Company and the VIE depend on shareholder enforcing the contracts. There is a risk that shareholder of VIE, who in some cases\nis also shareholder of the Company may have conflict of interests with the Company in the future or fails to perform their contractual\nobligations. Given the significance and importance of the VIE, there would be a significant negative impact to the Company if these contracts\nwere not enforced.\n\n \n\nThe\nGroup’s operations depend on the VIE to honor their contractual agreements with the Group and the enforceability, and therefore\nthe benefits, of the contractual agreements also depends on the authorization by the shareholder of the VIE to exercise voting rights\non all matters requiring shareholder approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s\nvoting power are enforceable against each party thereto in accordance with their terms and applicable PRC laws or regulations currently\nin 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\naforementioned risks and uncertainties is remote.\n\n \n\nIn\naccordance with the contractual agreements, the Company could (1) exercise the shareholder’s rights of the VIE and has power to\ndirect the activities that most significantly affects the economic performance of the VIE and subsidiaries of VIE, (2) absorb substantially\nall of the expected losses and receive substantially expected residual returns of the VIE and subsidiaries of VIE; and (3) has an exclusive\ncall 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\npermitted by PRC law. Accordingly, the Company is considered as the ultimate primary beneficiary of the VIE and has consolidated the\nVIE’s financial results of operations, assets, and liabilities in the Company’s consolidated financial statements. Therefore,\nthe 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\ncapital of the VIE amounting to approximately RMB65.3 million and RMB65.3 million as of December 31, 2024 and 2025, as well as certain\nnon-distributable statutory reserves amounting to approximately nil and nil as of December 31, 2024 and 2025. As the VIE are incorporated\nas a limited liability company under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the\nliabilities of the VIE. As the Group is conducting certain business in the PRC through the VIE, the Company would provide unlimited financial\nsupport to the VIE if, in the normal operation of business, the VIE should become in need of any form of reasonable financial support,\nwhich could expose the Group to a loss.\n\n \n\nF-15\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\n**Risks\nin relation to the VIE structure (Continued)**\n\n \n\nThe\nfollowing consolidated financial information of the VIE after the elimination of inter-company transactions between the VIE and its subsidiaries\nas of December 31, 2024 and 2025 and for the years ended December 31, 2023, 2024 and 2025 was included in the accompanying consolidated\nfinancial statements of the Group as follows:\n\n \n\nSchedule\nof Consolidated Financial Statements\n\n  \n2024  \n2025 \n\n  \nAs of December 31, \n\n  \n2024  \n2025 \n\n  \nRMB  \nRMB \n\nASSETS \n   \n  \n\nCurrent assets: \n    \n   \n\nCash and cash equivalents \n 31,958  \n 54,927 \n\nRestricted cash \n -  \n 5,000 \n\nShort-term investments \n 3,000  \n 226 \n\nAccounts receivable, net \n 781,857  \n 821,560 \n\nPrepayments and other current assets \n 31,575  \n 53,827 \n\nAmounts due from intra-Group companies \n 3,016  \n 2,949 \n\nTotal current assets \n 851,406  \n 938,489 \n\nNon-current assets: \n    \n   \n\nRestricted cash \n 5,000  \n - \n\nProperty, equipment and leasehold improvement, net \n 1,239  \n 777 \n\nIntangible assets, net \n 5,950  \n 3,850 \n\nRight-of-use assets \n 5,653  \n 6,453 \n\nGoodwill \n 84,609  \n 84,609 \n\nOther non-current assets \n 225  \n - \n\nTotal non-current assets \n 102,676  \n 95,689 \n\nTOTAL ASSETS \n 954,082  \n 1,034,178 \n\nLIABILITIES \n    \n   \n\nCurrent liabilities: \n    \n   \n\nAccounts payable \n 551,214  \n 622,496 \n\nShort-term borrowings \n 10,000  \n 39,800 \n\nContract liabilities \n 125  \n 3 \n\nSalary and welfare benefits payable \n 60,838  \n 64,127 \n\nTax payable \n 7,077  \n 12,099 \n\nAmounts due to related party \n -  \n 50,626 \n\nAccrued expenses and other current liabilities \n 17,166  \n 13,028 \n\nShort-term lease liabilities \n 3,037  \n 4,727 \n\nAmounts due to intra-Group companies \n 149,056  \n 196,798 \n\nTotal current liabilities \n 798,513  \n 1,003,704 \n\nNon-current liabilities: \n    \n   \n\nDeferred tax liabilities \n 1,488  \n 963 \n\nLong-term lease liabilities \n 2,137  \n 801 \n\nAmounts due to related party \n 45,811  \n - \n\nDeferred revenue \n 1,432  \n 1,432 \n\nAmounts due to intra-Group companies \n 230,705  \n 225,128 \n\nAmounts due to related party \n 230,705  \n 225,128 \n\nTotal non-current liabilities \n 281,573  \n 228,324 \n\nTOTAL LIABILITIES (without recourse to the primary beneficiary) \n 1,080,086  \n 1,232,028 \n\n \n\nF-16\n\n \n\n \n\n**1.\nOrganization and Principal Activities (Continued)**\n\n \n\n**Risks\nin relation to the VIE structure (Continued)**\n\n \n\nSchedule\nof Operation\n\n  \n2023  \n2024  \n2025 \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nNet revenues \n    \n    \n   \n\n- earned from external parties \n 3,083,306  \n 2,924,578  \n 2,394,433 \n\n- earned from intra-Group companies \n 6,682  \n 9,433  \n 9,434 \n\nTotal revenues \n 3,089,988  \n 2,934,011  \n 2,403,867 \n\nCost of revenues and operating expenses \n    \n    \n   \n\n- arising from external parties transactions \n (3,186,349) \n (2,958,256) \n (2,427,880)\n\n- arising from intra-Group transactions \n (1,651) \n (1,458) \n (69,049)\n\nTotal cost of revenues and operating expenses \n (3,188,000) \n (2,959,714) \n (2,496,929)\n\nNet loss  \n (100,142) \n (29,819) \n (95,799)\n\n \n\n \n\nSchedule of Cash\nFlow\n\n  \n2023  \n2024  \n2025 \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nCash flows from operating activities: \n    \n    \n   \n\nNet cash generated from/(used in) transactions with intra-Group companies \n 35,000  \n 8,455  \n (13,973)\n\nNet cash generated from transactions with external parties \n 108,170  \n 34,824  \n 11,832 \n\nNet cash generated from/(used in) operating activities \n 143,170  \n 43,279  \n (2,141)\n\nNet cash (used in)/generated from transactions with external parties \n (686) \n (4,830) \n 3,767 \n\nNet cash (used in)/generated from investing activities \n (686) \n (4,830) \n 3,767 \n\nNet cash used in transactions with intra-Group companies \n (63,485) \n (87,821) \n (3,457)\n\nNet cash (used in)/generated from transactions with third-parties \n (7,563) \n (5,000) \n 24,800 \n\nNet cash (used in)/generated from financing activities \n (71,048) \n (92,821) \n 21,343 \n\nNet increase/(decrease) in cash and cash equivalents \n 71,436  \n (54,372) \n 22,969 \n\n \n\n**Liquidity**\n\n \n\nThe\nGroup has incurred recurring operating losses since its inception, including net loss of RMB159.6\nmillion, RMB61.2\nmillion, and RMB17.8\nmillion for the years ended December 31, 2023, 2024 and 2025,\nrespectively. Net cash used in operating activities were RMB27.0\nmillion, RMB114.1\nmillion and RMB40.6\nmillion for the years ended December 31, 2023, 2024 and 2025,\nrespectively. Accumulated deficit was RMB2,175.1\nmillion and RMB2,192.8\nmillion as of December 31, 2024 and 2025, respectively. The\nGroup assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments.\n\n \n\nHistorically,\nthe Group has relied principally on both operational sources of cash and non-operational sources of financing from investors to fund\nits operations and business development. The Group’s ability to continue as a going concern is dependent on management’s\nability to successfully execute its business plan, which includes increasing revenues while controlling operating expenses, as well\nas generating operational cash flows and continuing to gain support from outside sources of financing. The Group had a positive\nworking capital (defined as total current assets deducted by total current liabilities) of RMB250.4 million, also the Group had RMB144.5 million, in cash and cash equivalents, as well as the credit line of Bank of Beijing RMB10.2 million (due in May 2027) and\nChina CITIC Bank RMB9.3 million (due in December 2026) has not been used as of December 31, 2025. Moreover, the Group can adjust the\npace of its operation expansion and control the operating expenses of the Group. Based on the above considerations, the Group\nbelieves the cash and cash equivalents and the operating cash flows are sufficient to meet the cash requirements to fund planned\noperations and other commitments for at least the next twelve months from the date of the issuance of the consolidated financial\nstatements. The Group’s consolidated financial statements have been prepared based on the Company continuing as a going\nconcern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.\n\n \n\nF-17\n\n \n\n \n\n**2.\nSignificant Accounting Policies**\n\n \n\n \n**a)**\n**Basis\nof presentation**\n\n \n\nThe\nconsolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the\nUnited States of America (“U.S. GAAP”) and include the accounts of the Company, its subsidiaries, VIE and subsidiaries of\nVIE, after elimination of all intercompany accounts and transactions.\n\n \n\nSignificant\naccounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.\n\n \n\n \n**b)**\n**Principles\nof consolidation**\n\n \n\nThe\nconsolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and subsidiaries of VIE\nfor which the Company is the primary beneficiary.\n\n \n\nSubsidiaries\nare those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint\nor 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,\nor has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or\nequity holders.\n\n \n\nA\nconsolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the\nactivities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally\nassociated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity.\n\n \n\nAll\ntransactions and balances among the Company, its subsidiaries, VIE and subsidiaries of VIE have been eliminated upon consolidation.\n\n \n\n \n**c)**\n**Reclassifications**\n\n \n\nCertain\nreclassifications have been made to the prior years’ consolidated financial statements to conform to the current year’s presentation.\nThese reclassifications had no impact on the consolidated financial statements as previously reported.\n\n \n\n \n**d)**\n**Use\nof estimates**\n\n \n\nThe\npreparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make\nestimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the\nbalance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and\naccompanying notes. Significant accounting estimates include, but are not limited to, provision of current expected credit losses of\nreceivables, the impairment of goodwill, fair value of amounts due to related party and warrant, as well as the valuation and\nrecognition of share-based compensation expenses. Actual results could differ from those estimates, and as such, differences may be\nmaterial to the consolidated financial statements.\n\n \n\n \n**e)**\n**Functional\ncurrency and foreign currency translation**\n\n \n\nThe\nGroup uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries\nwhich incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$”). The functional currency of the Group’s\nPRC entities is RMB.\n\n \n\nIn\nthe consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been\ntranslated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated\nat historical exchange rates, and revenues, and expenses, gains and losses are translated using the average rate for the year. Translation\nadjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive loss in the\nconsolidated statements of operations and comprehensive loss.\n\n \n\nF-18\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**e)**\n**Functional\ncurrency and foreign currency translation (Continued)**\n\n \n\nForeign\ncurrency transactions denominated in currencies other than the functional currency are translated into the functional currency using\nthe exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are\ntranslated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting\nfrom foreign exchange transactions are included in foreign exchange (losses)/gains in the consolidated statements of operations and comprehensive\nloss.\n\n \n\n \n**f)**\n**Fair\nvalue measurements**\n\n \n\nAccounting\nguidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction\nbetween market participants at the measurement date. When determining the fair value measurements for assets and liabilities required\nor permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and\nit considers assumptions that market participants would use when pricing the asset or liability.\n\n \n\nAccounting\nguidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of\nunobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based\nupon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs\nthat may be used to measure fair value:\n\n \n\n \n●\nLevel\n1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities\n\n \n \n \n\n \n●\nLevel\n2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable\nfor the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical\nasset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations\nin which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.\n\n \n \n \n\n \n●\nLevel\n3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the\nmeasurement of the fair value of the assets or liabilities.\n\n \n\nThe\nGroup’s financial instruments include cash and cash equivalents, restricted cash, bank deposits included in short-term investments,\naccounts receivable, other receivables (included in “prepayments and other current assets”), accounts payable, short-term\nborrowings, contract liabilities and other payables (included in “accrued expenses and other current liabilities”), of which\nthe carrying values approximate their fair value. Lease liabilities are measured at amortized cost using discounted rates reflected time\nvalue of money.\n\n \n\n \n**g)**\n**Cash,\ncash equivalents and restricted cash**\n\n \n\nCash\nand cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in China, and highly liquid investments\nthat are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months\nor less. As of December 31, 2024 and 2025, there were cash at bank denominated in US dollars amounting to approximately US$9.6 million\n(RMB69.3 million) and US$9.5 million (RMB66.8 million), respectively, and denominated in RMB amounting to approximately RMB48.2 million\nand RMB77.7 million, respectively.\n\n \n\nAs\nof December 31, 2024 and 2025, the Group had approximately RMB58.1 million and RMB87.6 million, cash and cash equivalents held by its\nPRC subsidiaries and VIE, representing 49.4% and 60.6% of total cash and cash equivalents of the Group, respectively. As of December\n31, 2024 and 2025, the Group had RMB5.0 million and RMB26.1 million restricted cash, respectively. Restricted cash primarily represents\ncash deposits in a regulatory escrow account related to insurance transaction services and a USD 3 million deposit was pledged to Bank\nof Beijing as collateral for a RMB 20 million loan borrowed by Baodafang from the bank. Restricted cash is classified into current and\nnon-current assets based on the maturities of term deposits. The Group had no other lien arrangements for the years ended December 31,\n2023, 2024 and 2025.\n\n \n\nF-19\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**h)**\n**Short-term\ninvestments**\n\n \n\nShort-term\ninvestments represent bank deposits with original maturities of more than three months but within one year and wealth management products.\nIn accordance with Accounting Standards Codification (“ASC”) 825, Financial Instruments, for wealth management products with\ninterest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition\nand re-measured these investments at fair value. Changes in the fair value are reflected in the consolidated statements of operations\nand comprehensive loss as interest income. As of December 31, 2024 and 2025, the Group had approximately RMB32.4 million and RMB0.23\nmillion bank deposits; RMB3.0 million and nil wealth management products, respectively. Interest earned is recorded as interest income,\namounting to RMB0.16 million, RMB0.08 million and RMB0.01 million, in the consolidated statements of operations and comprehensive loss\nfor the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\n \n**i)**\n**Expected\ncredit losses of receivables**\n\n \n\nThe\nGroup’s accounts receivable and other receivables (included in “prepayments and other current assets”) are within the\nscope of ASC 326. To estimate current expected credit losses, the Group has identified the relevant risk characteristics of its customers\nand the related receivables and other receivables which include size, type of the services the Group provides, or a combination of these\ncharacteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past\ncollection experience, any changes in customer collection trends, the credit worthiness of customers, the contractual and customary payment\nterms that generally range from 30 to 180 days, current economic conditions, and expectation of future economic conditions (external\ndata and macroeconomic factors). Accounts receivable balances are written off (i.e., charged-off against the allowance) when they are\ndetermined to be uncollectible after all means of collection have been exhausted and the potential for recovery is considered remote.\n\n \n\nAccounts\nreceivable is recorded at the invoiced amount and do not bear interest. As of December 31, 2024 and 2025, the Group’s accounts\nreceivable consists primarily of receivables from insurance transaction services customers. The Group recorded current expected credit\nloss expense of RMB1.2 million, RMB3.2 million and negative RMB1.2 million for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\n \n**j)**\n**Property,\nequipment and leasehold improvement, net**\n\n \n\nProperty,\nequipment and leasehold improvement are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed\nusing the straight-line method over the following estimated useful lives:\n\n \n\nSchedule\nof Property, Equipment and Leasehold Improvement are Stated at Cost Less Accumulated Depreciation and Impairment\n\nLeasehold\nimprovement\n \nShorter\nof the\n\nlease term or\n\nestimated economic life\n\nFurniture\nand office equipment\n \n3-5\nyears\n\nElectronics\nequipment and others\n \n3-6\nyears\n\n \n\nExpenditures\nfor maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and leasehold improvement\nis the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated\nstatements of operations and comprehensive loss.\n\n \n\n \n**k)**\n**Intangible\nassets, net**\n\n \n\nIntangible\nassets mainly consist of software, licenses, agency agreements and channel relationship. Intangible assets are carried at cost less accumulated\namortization and any recorded impairment. Licenses, agency agreements and channel relationship acquired in a business combination were\nrecognized initially at fair value at the date of acquisition. Identifiable intangible assets are carried at acquisition cost less accumulated\namortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization\nof finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:\n\n \n\nSchedule\nof Amortization of Finite-lived Intangible Assets Using the Straight-line Method Over their Estimated Useful Lives\n\nSoftware\n \n3-5\nyears\n\nLicenses\n \n10\nyears\n\nAgency\nagreements\n \n2\nyears\n\nChannel\nrelationship\n \n2\nyears\n\n \n\nLicenses\ncomprise insurance brokerage licenses, which has an estimated useful life of 10 years (the “Amortization Period”), which\nrepresent the time periods that the Group expects these assets will generate economic benefits to the Group’s business. The licenses\nhave a term of validity of 5 years or longer, and are subject to certain administrative renewal at the relevant government authorities\nupon expiry. The renewal criteria for licenses are the same as the criteria when applying for these licenses. The Group assesses that\nit can continue to meet these criteria throughout the Amortization Period and these licenses will be renewed upon expiry. Agency agreements\ncomprise contractual relationship with referral partners, which have an estimated useful life of 2 years. Channel relationship comprises\ncustomer relationship with insurance carriers, which have an estimated useful life of 2 years.\n\n \n\nF-20\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**l)**\n**Impairment\nof long-lived assets**\n\n \n\nLong-lived\nassets or asset group, including intangible assets with finite lives, are evaluated for impairment whenever events or changes in circumstances\n(such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying\nvalue of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these\nevents occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate\nof future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the\nexpected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based\non 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\nyear presented.\n\n \n\n \n**m)**\n**Goodwill**\n\n \n\nGoodwill\nrepresents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed\nof an acquired business. The Group’s goodwill at December 31, 2024 and 2025 were related to its acquisition of Cheche Insurance\n(previously named “Fanhua Times Sales and Service Co., Ltd.” or “Fanhua Times”) in October 2017 (Note 8). In\naccordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for\nimpairment annually or more frequently if there are indicators of impairment present.\n\n \n\nGoodwill\nis not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date (December\n31 for the Group) and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair\nvalue of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business\nenvironment, legal factors, financial performances, competition, or events affecting the reporting unit. Application of the goodwill\nimpairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting\nunits, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair\nvalue of reporting unit using a discounted cash flow methodology also requires significant judgements, including estimation of future\ncash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business and\ndetermination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting\nunit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially\naffect the determination of fair value and goodwill impairment for the reporting unit.\n\n \n\nManagement\nhas determined that the Group represents the lowest level within the entity at which goodwill is monitored for internal management purposes.\nThe Group has the option to choose whether\nit will apply a qualitative assessment first and then a quantitative assessment, if necessary, or to apply a quantitative assessment\ndirectly. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss,\ncompares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit\nis greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Based\non the impairment assessment, management determined that no impairment loss was recorded for the years ended December 31, 2023, 2024\nand 2025. At December 31, 2024 and 2025, goodwill was RMB84.6 million and RMB84.6 million, respectively.\n\n \n\n \n**n)**\n**Warrant**\n\n \n\nThe\nCompany does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates\nall of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain\nfeatures that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC\n815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as\nequity, is assessed at the end of each reporting period. Accordingly, the Company recognizes the warrant instruments as liabilities at\nfair value and adjusts the warrants instruments to fair value at each reporting period. The liabilities are subject to re-measurement\nat each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements\nof operations and comprehensive loss.\n\n \n\nF-21\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**o)**\n**Revenue\nrecognition**\n\n \n\nRevenue\nis the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the common course\nof the Group’s activities and is recorded net of value-added tax (“VAT”). The services to be accounted for mainly include\ninsurance transaction services, SaaS services and other services.\n\n \n\nThe\ncore principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers\nin an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve\nthat core principle, the Group applies the following steps:\n\n \n\n \n●\nStep\n1: Identify the contract(s) with a customer\n\n \n \n \n\n \n●\nStep\n2: Identify the performance obligations in the contract\n\n \n \n \n\n \n●\nStep\n3: Determine the transaction price\n\n \n \n \n\n \n●\nStep\n4: Allocate the transaction price to the performance obligations in the contract\n\n \n \n \n\n \n●\nStep\n5: Recognize revenue when (or as) the entity satisfies a performance obligation\n\n \n\n*Insurance\nTransaction Services Income*\n\n \n\nThe\nmain source of revenue is insurance transaction services fee directly from (i) insurance carriers who underwrite insurance policies and\n(ii) insurance intermediaries who directly transact with insurance carriers, both determined based on a percentage of premium paid by\nthe insured. The service fee rate paid by the insurance carriers or insurance intermediaries, shall be based on the terms specified in\nthe service contract with the insurance carriers or with the insurance intermediaries for each insurance policy sold through the Group’s\nonline platform and mobile applications in the PRC. The Group determines that the insurance carrier or insurance intermediary are its\ncustomer in these agreements. Insurance transaction services revenue for the commission earned is recognized at a point in time when\nthe Company has fulfilled its performance obligation. This occurs when the signed insurance policy is in place and the premium is collected\nby the insurance carriers from the insured.\n\n \n\nF-22\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**o)**\n**Revenue\nrecognition (Continued)**\n\n \n\n*SaaS\nand technical services income*\n\n \n\nThe\nGroup provides SaaS services to selected insurance carriers or insurance intermediaries. This cloud-based services allow insurance carriers\nor insurance intermediaries to use the Group’s self-developed SaaS management system without taking possession of its software.\nThe Group has determined that the insurance carriers or insurance intermediaries as customers and initially records services fee as contract\nliabilities upon receipt and then recognizes the revenue on a straight-line basis over the service period, which is usually one year.\n\n \n\nThe\nGroup also provides technical services to third-party companies. The Group charges third-party companies service fee for developing software\nfor them. Technical services revenue is recognized based on cost-to-cost input method of measuring progress upon the completion of each\nservice.\n\n \n\n*Other\nServices*\n\n \n\nThe\nGroup provides automotive after-sales service to third-party companies or individual consumers. The Group satisfies its performance obligation\nthrough delivering automotive after-sales service and receives service fee from the third-party companies and individual consumers.\n\n \n\n**Contract\nBalances and Accounts Receivable**\n\n \n\nContract\nliabilities primarily consist of customer advances which relates to the payments received for SaaS and technical services in advance\nof performance under the contract. The increase in contract liabilities over the year presented was a result of the increase in consideration\nreceived from the Group’s customers, which was in line with the growth of revenues in SaaS and technical services. Due to the generally\nshort-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year.\n\n \n\nDuring\nthe years ended December 31, 2023, 2024 and 2025, the Group recognized revenue amounted to RMB0.9 million, RMB4.3 million and RMB1.4\nmillion, respectively that was included in the corresponding opening contract liabilities balance of RMB0.9 million, RMB4.3 million and\nRMB1.8 million at December 31, 2022, 2023 and 2024, respectively. As of December 31, 2025, the aggregate amount of transaction price\nallocated to the unsatisfied performance obligations is RMB1.0 million, which was recorded under contract liabilities and to be recognized\nas revenues in one year.\n\n \n\nDuring\nthe years ended December 31, 2023, 2024 and 2025, the Group did not have any arrangement where the performance obligations has already\nbeen satisfied in the past year but recognized the corresponding revenue in the current year.\n\n \n\nAs\nof December 31, 2024 and 2025, there was no contract assets.\n\n \n\nAccounts\nreceivable mainly represent amounts due from insurance transaction services customers, when the Group has satisfied its performance obligations\nand has the unconditional right to payment. They are carried at net realizable value. As of December 31, 2024 and 2025, the Group’s\naccounts receivables, net were RMB982.5 million and RMB1,145.8 million, respectively. Please see Note 4 for additional information.\n\n \n\nF-23\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**o)**\n**Revenue\nrecognition (Continued)**\n\n \n\n**Practical\nExpedients**\n\n \n\nThe\nGroup has elected to use the following practical expedients as allowed under ASC Topic 606:\n\n \n\n \n(i)\nPayment\nterms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year\nor less. The Group has determined that its contracts generally do not include a significant financing component.\n\n \n \n \n\n \n(ii)\nCosts\nto obtain a contract with a customer were expensed as incurred when the amortization period would have been one year or less.\n\n \n\n \n**p)**\n**Cost\nof revenue**\n\n \n\nAmounts\nrecorded as cost of revenues relate to direct expenses incurred in order to generate revenue, which consists primarily of i) cost of\nreferral partners, ii) service fee paid to third-party payment platforms, iii) salary and welfare benefits, iv) tax and surcharges and\nothers, v) amortization and depreciation expenses, and vi) cloud service fees. These costs are charged to the consolidated statements\nof operations and comprehensive loss as incurred.\n\n \n\n \n**q)**\n**Research\nand development expenses**\n\n \n\nResearch\nand development expenses mainly consist of salary and welfare benefits, subcontracted development expenses incurred for the development\nand enhancement to the Company’s online platform including SaaS platform, and mobile applications.\n\n \n\n \n**r)**\n**Selling\nand marketing expenses**\n\n \n\nSelling\nand marketing expenses consist primarily of salary and welfare benefits, share-based compensation expenses to the Group’s sales\nand marketing personnel, amortization and depreciation expenses. The Group expenses all advertising and promotional expenses as incurred\nand classifies them under selling and marketing expenses.\n\n \n\n \n**s)**\n**General\nand administrative expenses**\n\n \n\nGeneral\nand administrative expenses consist primarily of salary and welfare benefits, share-based compensation expenses, professional service\nfees, amortization expenses and related expenses for employees involved in general corporate functions, including finance, legal and\nhuman resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses.\n\n \n\n \n**t)**\n**Government\ngrants**\n\n \n\nGovernment\ngrants mainly represent subsidies and tax refunds for operating a business in certain jurisdictions and fulfilment of specified tax payment\nobligations. Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions\nwill be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that\nthe related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income\nin equal amounts over the expected useful life of the related asset.\n\n \n\nF-24\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**t)**\n**Government\ngrants (Continued)**\n\n \n\nDeferred\ngovernment grants included RMB1.4 million, RMB1.4 million and RMB1.4 million for the years ended December 31, 2023, 2024 and 2025 being\nthe unamortized portion of a grant of nil, nil and nil the Group received in 2023, 2024 and 2025, respectively, for long-term operation.\nAs of December 31, 2024 and 2025, the Group has not fulfilled the conditions attached to the government grants. As the Group does not\nexpect to fulfill the conditions within one year, the grant is recorded as a non-current deferred revenue.\n\n \n\n \n**u)**\n**Leases**\n\n \n\nThe\nGroup determines if an arrangement is a lease and determines the classification of the lease, as either operating or finance, at commencement.\nThe Group has operating leases for office buildings and has no finance leases as of December 31, 2024 and 2025. Operating lease right-of-use\n(“ROU”) assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease\nterm at commencement date.\n\n \n\nAs\nthe Group’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at\nthe commencement date, to determine the present value of lease payments. The incremental borrowing rate approximates the rate the Group\nwould pay to borrow in the currency of the lease payments for the weighted-average life of the lease.\n\n \n\nThe\noperating lease ROU assets also include any lease payments made prior to lease commencement and exclude lease incentives and initial\ndirect costs incurred if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the\nGroup will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.\n\n \n\nThe\nGroup’s lease agreements contain both lease and non-lease components, which are accounted for separately based on their relative\nstandalone price.\n\n \n\nThe\nCompany elect to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize\noperating lease ROU assets or operating lease liabilities.\n\n \n\nF-25\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**v)**\n**Share-based\ncompensation**\n\n \n\nShare\nbased compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares and restricted\nshares. For share options for the purchase of ordinary shares granted to employee and non-employee determined to be equity classified\nawards, the related share-based compensation expenses are recognized in the consolidated statements of operations and comprehensive loss\nbased on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value\nis affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including\nthe expected volatility of the fair value of ordinary shares, actual and projected employee share option exercise behavior, risk-free\ninterest rate and expected dividends. The fair value of the ordinary shares is assessed using the income approach, with a discount for\nlack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. Share-based compensation\nexpenses are recorded net of actual forfeitures using straight-line method during the service period requirement, such that expenses\nare recorded only for those share-based awards that are expected to ultimately vest.\n\n \n\n \n**w)**\n**Employee\nbenefits**\n\n \n\n*PRC\nContribution Plan*\n\n \n\nFull\ntime employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension\nbenefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require\nthat the PRC subsidiaries, VIE and subsidiaries of VIE of the Group make contributions to the government for these benefits based on\ncertain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal\nobligation for the benefits beyond the contributions made. The total balances of employee welfare benefits, including the accruals for\nestimated underpaid amounts, were approximately RMB63.4 million and RMB70.6 million as of December 31, 2024 and 2025.\n\n \n\n \n**x)**\n**Taxation**\n\n \n\n*Income\ntaxes*\n\n \n\nCurrent\nincome taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which\nare not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred\ntax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial\nstatement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards.\nDeferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those\ntemporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates\nor tax laws is recognized in the consolidated statements of operations and comprehensive loss in the period the change in tax rates or\ntax laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than\nnot that some portion or all of the deferred tax assets will not be realized.\n\n \n\nF-26\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**x)**\n**Taxation\n(Continued)**\n\n \n\n*Uncertain\ntax positions*\n\n \n\nIn\norder to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position\nmeasurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition\nby determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including\nresolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that\nis more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses\nand other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statements of operations\nand comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December\n31, 2024 and 2025, respectively.\n\n \n\nAs\nof December 31, 2025, the tax years ended December 31, 2020 through 2024   for the Group’s subsidiaries in the PRC and\nthe VIE are generally subject to examination by the PRC tax authorities.\n\n \n\n \n**y)**\n**Related\nparties**\n\n \n\nParties\nare considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant\ninfluence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject\nto common control or significant influence, such as a family member or relative, shareholder, or a related corporation.\n\n \n\n \n**z)**\n**Net\nloss per share**\n\n \n\nNet\nloss per share is computed in accordance with ASC 260, Earnings per Share. The two-class method is used for computing earnings per share\nin the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary\nshares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as\nif all the earnings for the reporting period had been distributed. The Company’s preferred shares are participating securities\nbecause they are entitled to receive dividends or distributions on an as converted basis. For the periods presented herein, the computation\nof 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\nto other participating securities because in accordance with their contractual terms they are not obligated to share in the losses.\n\n \n\nBasic\nnet loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per\nshare is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under\ntreasury stock method. Potential ordinary shares include options to purchase ordinary shares and preferred shares, unless they were anti-dilutive.\nThe computation of diluted net loss per share does not assume conversion, exercise, or contingent issuance of securities that would have\nan 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.\n\n \n\nF-27\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**aa)**\n**Statutory\nreserves**\n\n \n\nIn\naccordance with China’s Company Laws, the Company’s VIE and subsidiaries of VIE in the PRC must make appropriations from\ntheir after-tax profit, if any (as determined under the accounting principles generally acceptable in the People’s Republic of\nChina (“PRC GAAP”)), after offsetting accumulated losses from prior years, to non-distributable reserve funds including (i)\nstatutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the\nafter-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50%\nof the registered capital of the respective entity. Appropriation to the discretionary surplus fund is made at the discretion of the\nrespective entity.\n\n \n\nPursuant\nto the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries that are foreign investment\nenterprises in China have to make appropriations from their after-tax profit (as determined under PRC GAAP) to reserve funds including\n(i) general reserve fund, (ii) enterprise expansion fund, and (iii) staff bonus and welfare fund. The appropriation to the general reserve\nfund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general\nreserve fund has reached 50% of the registered capital of the respective entity. Appropriations to the other two reserve funds are at\nthe respective entities’ discretion.\n\n \n\nThe\nGroup has not appropriated any amount to statutory reserves for the years ended December 31, 2023, 2024 and 2025, because the Company’s\nsubsidiary, VIE and subsidiaries of VIE were in the position of accumulated deficit as of December 31, 2024 and 2025.\n\n \n\n \n**bb)**\n**Comprehensive\nloss**\n\n \n\nComprehensive\nloss is defined to include all changes in equity of the Group during a period arising from transactions and other events and circumstances\nexcluding transactions resulting from investments by shareholders and distributions to shareholders. Other comprehensive income/(loss),\nas presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments and fair value changes\nof amounts due to related party due to own credit risk.\n\n \n\n \n**cc)**\n**Segment\nreporting**\n\n \n\nThe\nGroup uses the management approach in determining reportable operating segments. The management approach considers the internal organization\nand reporting used by the Group’s chief operating decision maker (“CODM”) for making operating decisions, allocating\nresources and assessing performance as the source for determining the Group’s reportable segments. Management has determined that\nthe Group operates in one segment, as that term is defined by FASB ASC Topic 280, Segment reporting. See Note 15.\n\n \n\n \n**dd)**\n**Concentration\nand risk**\n\n \n\n*Foreign\ncurrency exchange rate risk*\n\n \n\nThe\nGroup’s operating transactions are mainly denominated in RMB. RMB is not freely convertible into foreign currencies. The value\nof the RMB is subject to changes by the central government policies and to international economic and political developments. In the\nPRC, certain foreign exchange transactions are required by law to be transacted only through authorized financial institutions at exchange\nrates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the\nPRC must be processed through PBOC or other PRC foreign exchange regulatory bodies which require certain supporting documents in order\nto effect the remittances. As of December 31, 2024 and 2025, the Group’s cash and cash equivalents, and restricted cash denominated\nin RMB were RMB53.2 million and RMB82.7 million, accounting for 43.4% and 48.5% of the Group’s total cash, cash equivalents and\nrestricted cash, respectively.\n\n \n\nF-28\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**dd)**\n**Concentration\nand risk (Continued)**\n\n \n\n*Credit\nrisk and concentration risk*\n\n \n\nFinancial\ninstruments that potentially subject the Group to the concentration of credit risk consist of cash and cash equivalents, restricted cash\nand accounts receivable. As of December 31, 2024 and 2025, the Group’s cash and cash equivalents, and restricted cash were typically\nunsecured and highly concentrated in a few major financial institutions located in China, which management consider being of high credit\nquality and continually monitors the creditworthiness of these financial institutions. Accounts receivable is typically unsecured and\nis generally derived from revenue earned from the Company’s insurance transaction services business.\n\n \n\n*Concentration\nof customers and suppliers*   \n\n \n\nThere\nwas nil, nil and nil customer which individually accounted for 10% or more of the Group’s total operating revenue or accounts receivable\nfor the years ended December 31, 2023, 2024 and 2025.\n\n \n\nThere\nwas nil, nil and nil supplier which individually accounted for more than 10% of the Group’s total costs and expenses for the years\nended December 31, 2023, 2024 and 2025.\n\n \n\n \n**ee)**\n**Recently\nissued accounting pronouncements**\n\n \n\nThe\nGroup qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as\namended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such\ndate that a private company is otherwise required to comply with such new or revised accounting standards.\n\n \n\n*Recently\nadopted accounting pronouncements*\n\n \n\nIn\nDecember 2023, the Financial Accounting Standard Board\n(“FASB”)\nissued Accounting Standards Update(“ASU”)\nNo. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” to\nexpand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. The\nGroup adopted this ASU on a prospective basis effective January 1, 2025. Refer to Note 11(a) for the inclusion of new disclosures\nrequired.\n\n \n\nOther\naccounting standards adopted by the Group effective January 1, 2025 did not have a significant impact on its consolidated financial statements.\n\n* *\n\nF-29\n\n \n\n \n\n**2.\nSignificant Accounting Policies (Continued)**\n\n \n\n \n**ee)**\n**Recently\nissued accounting pronouncements (Continued)**\n\n \n\n*Recent accounting pronouncements not\nyet adopted*\n\n \n\nIn\nNovember 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220)—Reporting Comprehensive Income—Expense Disaggregation\nDisclosures (Subtopic 220-40)”. ASU 2024-03 requires publicly-traded business entities to disclose specified information about\nthe components of certain costs and expenses that are currently disclosed in the financial statements. The guidance is effective for\nannual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption\nis permitted. This guidance should be applied either prospectively to financial statements issued for reporting periods after the effective\ndate or retrospectively to any or all prior periods presented in the financial statements. The Group is currently evaluating the potential\nimpact this standard will have on its related disclosures to the consolidated financial statements.\n\n \n\nIn\nJuly 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts\nReceivable and Contract Assets. ASU No. 2025-05 provides a practical expedient that permits an entity to assume that current economic\nconditions as of the balance sheet date do not change for the remaining life of the asset. Further, the ASU allows an entity, other than\na public business entity, that elects the practical expedient to make an accounting policy election to consider collection activity after\nthe balance sheet date when estimating expected credit losses. ASU 2025-05 is effective for the Company for annual periods beginning\nafter December 15, 2025. The ASU is applied prospectively and early adoption is permitted.The Group is currently evaluating the potential\nimpact this standard will have on its consolidated financial statements and related disclosures.\n\n \n\nF-30\n\n \n\n \n\n**3.\nReverse Recapitalization**\n\n \n\nOn\nthe Closing Date, (i) Prime Impact converted (a) its issued and outstanding 375,193 Class A and 4,341,052 Class B ordinary shares into\n4,716,245 Class A ordinary shares of the Company, and (b) its 13,663,325 outstanding warrants with each warrant to purchase a Prime Impact\nClass A ordinary share converted into a warrant to purchase one the Company’s Class A ordinary share, (ii) CCT converted 455,818,627\npreferred shares, issued and outstanding immediately prior to the Acquisition Merger, into 479,099,566 ordinary shares of CCT based on\nCCT’s then effective memorandum and articles of association, and (iii) CCT converted (a) its 676,533,464 issued and outstanding\nordinary shares (including those converted from the preferred shares of CCT, but excluding 253,181,563 CCT ordinary shares held by Mr.\nLei Zhang) into 49,692,232 Class A ordinary shares of the Company based on applicable Per Share Merger Consideration (as defined in the\nBusiness Combination Agreement), (b) 253,181,563 issued and outstanding ordinary shares of CCT held by Mr. Lei Zhang were converted into\n18,596,504 Class B ordinary shares of the Company based on applicable Per Share Merger Consideration, (c) 865,227 outstanding warrants\nwith each warrant to purchase a CCT’s preferred share converted into 63,552 warrants with each warrant to purchase one the Company’s\nClass A ordinary share based on applicable Per Share Merger Consideration, (d) the outstanding options of CCT converted into options\nof the Company based on applicable Per Share Merger Consideration, and (e) the outstanding restricted shares of CCT converted into restricted\nshares of CCG based on applicable Per Share Merger Consideration.\n\n \n\nOn\nSeptember 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global\ninstitutional investors for private investment in public equity (the “PIPE”) in connection with the Business Combination.\nPursuant to such agreements, the Company issued 634,228; 1,300,000; and 500,000 Class A ordinary shares to Prime Impact Cayman LLC (the\n“Sponsor”); World Dynamic Limited; and Goldrock Holdings Limited for the consideration of US$10.00 per share, respectively.\nThe consideration from the Sponsor was related to settlement of the Sponsor’s obligations with respect to the payment of certain\nPrime Impact transaction expenses in connection with the Business Combination. The Company incurred financing costs of RMB5.0 million\nrelated to the above PIPE financing transactions, which were directly associated with and incremental to these transactions.\n\n \n\nThe\nnumber of ordinary shares issued immediately following the consummation of the Reverse Recapitalization were as follows:\n\n \n\nSchedule of Ordinary Shares Issued Immediately Following Consummation of Reverse Recapital\n\n  \nNumber of\nshares \n\nCCT’s ordinary shares outstanding at December 31, 2022 \n 432,673,255 \n\nCCT’s ordinary shares issued to the Preferred Shareholders (Note 14) \n 17,942,206 \n\nCCT’s ordinary shares outstanding prior to the Reverse Recapitalization \n 450,615,461 \n\n  \n   \n\nConversion of CCT’s ordinary shares(1) \n 33,098,268 \n\nConversion of CCT’s convertible redeemable preferred shares(1) \n 35,190,468 \n\nConversion of Prime Impact’s Class A ordinary shares(2) \n 375,193 \n\nConversion of Prime Impact’s Class B ordinary shares(2) \n 4,341,052 \n\nOrdinary shares attributable to conversion \n 73,004,981 \n\nOrdinary shares attributable to Prime Impact Cayman LLC(3) \n 634,228 \n\nOrdinary shares attributable to World Dynamic Limited(3) \n 1,300,000 \n\nOrdinary shares attributable to Goldrock Holdings Limited(3) \n 500,000 \n\nTotal number of ordinary shares as of closing of the Reverse Recapitalization and PIPE transactions \n 75,439,209 \n\n \n\n(1)\nOn\nthe Closing Date, CCT converted its (i) 450,615,461 issued and outstanding ordinary shares; and (ii) 479,099,566 convertible redeemable\npreferred shares, issued and outstanding immediately prior to the Reverse Recapitalization into 33,098,268 and 35,190,468 Class A\nordinary shares of the Company, respectively, based on the conversion ratio of 13.6145:1.\n\n \n \n\n(2)\nOn\nthe Closing Date, Prime Impact converted its issued and outstanding (i) 375,193 Class A ordinary shares; and (ii) 4,341,052 Class\nB ordinary shares into 4,716,245 Class A ordinary shares of the Company.\n\n \n \n\n(3)\n\nOn\nSeptember 11, 2023, Prime Impact, CCT and the Company entered into certain Subscription Agreements and a Backstop Agreement with global\ninstitutional investors in connection with the Business Combination. Pursuant to such agreements, the Company issued 634,228, 1,300,000,\nand 500,000 Class A ordinary shares to the Sponsor, World Dynamic Limited, and Goldrock Holdings Limited for the consideration of US$10.00\nper share, respectively. \n\n \n\n**Supplemental\nschedule about Reverse Recapitalization**\n\n** **\n\nSchedule\nof Supplemental Reverse Recapitalization\n\n  \nFor the year ended\nDecember 31, \n\n  \n2023 \n\n  \n **RMB** \n\nCash held by Prime Impact and cash related to Prime Impact trust account \n 360,745 \n\nLess redemptions \n (331,574)\n\nCash related to trust account, net of redemptions \n 29,171 \n\nCash consideration for the subscription of shares by the Sponsor \n 14,787 \n\nCash available for payment of costs \n 43,958 \n\nLess cash paid associated with transaction costs allocated to Reverse Recapitalization \n (33,031)\n\nLess cash paid on behalf of the Company for professional expenses \n (2,318)\n\nProceeds from PIPE financing – Prime Impact Cayman LLC \n 8,609\n\nProceeds from PIPE financing – World Dynamic Limited \n 93,436 \n\nProceeds from PIPE financing – Goldrock Holdings Limited \n 35,863 \n\nTotal contributions from PIPE financing \n 137,908 \n\nLess cash payment associated with transaction costs allocated to PIPE \n (4,953)\n\nNet contributions from Reverse Recapitalization and PIPE financing \n 132,955 \n\n \n\nF-31\n\n \n\n \n\n**4.\nAccounts receivable, net**\n\n** **\n\nAccounts\nreceivable, net, consisted of the following:\n\n \n\nSchedule of Accounts Receivable, Net\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nAccounts receivable, gross \n 987,913  \n 1,149,968 \n\nLess: allowance for current expected credit losses \n (5,434) \n (4,216)\n\nAccounts receivable, net \n 982,479  \n 1,145,752 \n\n \n\nThe\nfollowing table summarizes the movement of the Group’s allowance for current expected credit losses:\n\n \n\nSchedule of Allowance for Current Expected Credit Losses\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nBalance at the beginning of the year \n (2,230) \n (5,434)\n\nAdditions/(reversal) \n (3,204) \n 1,218 \n\nWrite-offs \n -  \n - \n\nBalance at the end of the year \n (5,434) \n (4,216)\n\n \n\n**5.\nPrepayments and other current assets**\n\n** **\n\nThe\nfollowing is a summary of prepayments and other current assets:\n\n \n\nSchedule of Prepayments and Other Current Assets\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \n **RMB**  \n **RMB** \n\nDeductible Value Added Tax (“VAT”) \n 22,382  \n 23,135 \n\nStaff advances (i) \n -  \n 15,849 \n\nService fees (ii) \n 17,239  \n 14,781 \n\nRental and other deposits \n 2,946  \n 2,580 \n\nOthers \n 2,869  \n 3,714 \n\nBalance at the end of the year \n 45,436  \n 60,059 \n\n \n\n(i)Staff advances\nmainly consist of business expenses advanced to employees.\n\n(ii)Service fees mainly\nconsist of prepayment of cloud server hosting fees, directors and officers’ insurance fees and others.\n\n \n\n**6.\nProperty, equipment and leasehold improvement, net**\n\n \n\nThe\nfollowing is a summary of property, equipment and leasehold improvement, net:\n\n \n\nSchedule of Property, Equipment and Leasehold Improvement, Net\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nLeasehold improvement \n 3,735  \n 3,740 \n\nFurniture and office equipment \n 1,311  \n 1,104 \n\nElectronic equipment and others \n 4,476  \n 3,870 \n\nTotal property, equipment and leasehold improvement \n 9,522  \n 8,714 \n\nLess: accumulated depreciation \n (8,154) \n (7,883)\n\nProperty, equipment and leasehold improvement, net \n 1,368  \n 831 \n\n** **\n\nDepreciation\nexpenses were RMB1.0 million, RMB1.1 million and RMB0.5 million for the years ended December 31, 2023, 2024 and 2025, respectively. No\nimpairment charge was recognized for any of the years presented.\n\n \n\nF-32\n\n \n\n \n\n**7.\nIntangible assets, net**\n\n** **\n\nThe\nfollowing table summarizes the Group’s intangible assets, net:\n\n \n\nSchedule of Intangible Assets, Net\n\n  \n   \n**RMB**  \nRMB  \nRMB \n\n  \nDecember 31, 2024 \n\n  \nWeighted Average Useful Life  \nGross Carrying Amount  \nAccumulated Amortization  \nNet Carrying Value \n\n  \n   \n**RMB**  \nRMB  \nRMB \n\n  \n   \n   \n   \n  \n\nFinite-lived intangible assets: \n   \n    \n    \n   \n\nSoftware \n3 years  \n 916  \n (916) \n - \n\nLicenses \n10 years  \n 21,000  \n (15,050) \n 5,950 \n\nAgency agreements \n2 years  \n 18,000  \n (18,000) \n - \n\nChannel relationship \n2 years  \n 19,000  \n (19,000) \n - \n\nFinite-lived\nintangible assets \n   \n 58,916  \n (52,966) \n 5,950 \n\n \n\n  \n   \n**RMB**  \nRMB  \nRMB \n\n  \nDecember 31, 2025 \n\n  \nWeighted Average Useful Life  \nGross Carrying Amount  \nAccumulated Amortization  \nNet Carrying Value \n\n  \n   \n**RMB**  \nRMB  \nRMB \n\n  \n   \n   \n   \n  \n\nFinite-lived intangible assets: \n   \n    \n    \n   \n\nSoftware \n3 years  \n 916  \n (916) \n - \n\nLicenses \n10 years  \n 21,000  \n (17,150) \n 3,850 \n\nAgency agreements \n2 years  \n 18,000  \n (18,000) \n - \n\nChannel relationship \n2 years  \n 19,000  \n (19,000) \n - \n\nFinite-lived\nintangible assets \n   \n 58,916  \n (55,066) \n 3,850 \n\n \n\nAmortization\nexpense for the years ended December 31, 2023, 2024 and 2025 were RMB2.1 million, RMB2.1 million and RMB2.1 million respectively.\n\n \n\nThe\nestimated amortization expenses for each of the following five years are as follows:\n\n \n\nSchedule of Estimated Amortization Expenses\n\n  \nDecember 31,\n2025 \n\n  \n **RMB** \n\n2026 \n 2,100 \n\n2027 \n 1,750 \n\n2028 \n - \n\n2029 \n - \n\n2030 \n - \n\nTotal \n 3,850 \n\n \n\nF-33\n\n \n\n \n\n**8.\nGoodwill**\n\n \n\nOn\nOctober 26, 2017, Beijing Cheche entered into a share purchase agreement with Fanhua Insurance Sales and Services Group Ltd. (“Fanhua\nGroup”). Under this agreement, Beijing Cheche acquired the equity interests in Cheche Insurance (previously named “Fanhua\nTimes Sales and Service Co., Ltd.” or “Fanhua Times”, which was a subsidiary of Fanhua Group) and its property and\ncasualty (“P&C”) insurance intermediary subsidiaries with a total consideration of approximately RMB225.4 million, including\napproximately RMB95.4 million cash consideration and RMB130.0 million in the form of a convertible loan.\n\n \n\nBeijing\nCheche recognized approximately RMB84.6 million goodwill on acquisition of Cheche Insurance and its subsidiaries, which was determined\nby the excess of the cash consideration and fair value of the convertible loan over the fair value of Cheche Insurance and its subsidiaries,\nat the time of acquisition.\n\n \n\nThe\ngross amount of goodwill and accumulated impairment losses as of December 31, 2024 and 2025 are as follows:\n\n \n\nSChedule of Goodwill and Accumulated\nImpairment Losses\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nGross \n 84,609  \n 84,609 \n\nAccumulated impairment loss \n -  \n - \n\nGoodwill, net \n 84,609  \n 84,609 \n\n \n\nThe\nGroup performed the annual impairment analysis as of the balance sheet date. No impairment loss was recognized in goodwill for the years\nended December 31, 2023, 2024 and 2025.\n\n \n\n**9.\nLeases**\n\n \n\nThe\nGroup’s lease payments for office space leases include fixed rental payments and do not consist of any variable lease payments\nthat depend on an index or a rate. As of December 31, 2024 and 2025, there was no leases that have not yet commenced.\n\n \n\nThe\nfollowing represents the aggregate right-of-use assets and related lease liabilities as of December 31, 2024 and 2025:\n\n Schedule of Aggregate Right of Use Assets and Related Lease Liabilities\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nOperating lease right-of-use assets \n 5,653  \n 6,453 \n\nShort-term operating lease liabilities \n (3,037) \n (4,727)\n\nLong-term operating lease liabilities \n (2,137) \n (801)\n\nTotal operating leased liabilities \n (5,174) \n (5,528)\n\n \n\nThe\nweighted average lease term and weighted average discount rate as of December 31, 2024 and 2025 were as follows:\n\n \n\nWeighted\nAverage Lease Term and Weighted Average Discount Rate \n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nWeighted average lease term: \n    \n   \n\nOperating leases \n 1.96  \n 1.34 \n\nWeighted average discount rate: \n    \n   \n\nOperating leases \n 3.43% \n 2.96%\n\n \n\nThe\ncomponents of lease expenses for the years ended December 31, 2023, 2024 and 2025 were as follows:\n\n \n\nSchedule\nof Lease Expenses\n\n  \n2023  \n2024  \n2025 \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nOperating lease cost \n 8,880  \n 5,599  \n 5,807 \n\nCost of other leases with period less than one year \n 1,194  \n 3,340  \n 1,614 \n\nTotal \n 10,074  \n 8,939  \n 7,421 \n\n \n\nSupplemental\ncash flow information related to leases for the years ended December 31, 2023, 2024 and 2025 were as follows:\n\n \n\nSchedule\nof Supplemental Cash Flow Information Related to Leases\n\n  \n2023  \n2024  \n2025 \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\n**Cash\npaid for amounts included in the measurement of lease liabilities:**\n \n   \n   \n  \n\nOperating cash flows for operating leases \n 8,984  \n 5,138  \n 6,052 \n\nSupplemental noncash information: \n    \n    \n   \n\nRight-of-use assets obtained in exchange for lease obligations \n 5,602  \n 6,843  \n 7,047 \n\nRight-of-use assets released due to termination of lease contracts \n (1,666) \n (6,179) \n (648)\n\n \n\n \n\nF-34\n\n \n\n \n\n**9.\nLeases (Continued)**\n\n \n\nMaturities\nof lease liabilities at December 31, 2025:\n\n \n\nSchedule\nof Maturities of Lease Liabilities\n\n  \nDecember 31,\n2025 \n\n  \nRMB \n\n2026 \n 4,618 \n\n2027 \n 1,017 \n\nTotal remaining undiscounted lease payments \n 5,635 \n\nLess: interest \n (107)\n\nTotal present value of operating lease liabilities \n 5,528 \n\nLess: short-term operating lease liabilities \n (4,727)\n\nLong-term operating lease liabilities \n 801 \n\n \n\n**10.\nShort-term and long-term borrowings**\n\n \n\nThe\nfollowing table summarizes the Group’s outstanding short-term and long-term borrowings as of December 31, 2024 and 2025, respectively:\n\n \n\n Schedule\nof short-term and long-term borrowings\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nShort-term bank borrowing \n 30,000  \n 80,500 \n\nLong-term bank borrowing \n -  \n 9,800 \n\nBank borrowings \n 30,000  \n 90,300 \n\n* *\n\n \n*(1)*\n*Bank\nborrowings*\n\n \n\nSchedule\nof Bank Borrowings\n\n  \nPrincipal \n   \nInterest rate  \nDecember 31, \n\n  \nMaturity date \nAmount  \nPer annum  \n2024  \n2025 \n\nIndustrial Bank (i) \nMay 30, 2025 \n 5,000  \n 3.10% \n 5,000  \n - \n\nBank of Beijing (ii) \nJune 6, 2025 \n 10,000  \n 3.35% \n 10,000  \n - \n\nBank of Beijing (ii) \nDecember 26, 2025 \n 10,000  \n 2.80% \n 10,000  \n - \n\nChina Minsheng Bank (iii) \nDecember 11, 2025 \n 5,000  \n 2.80% \n 5,000  \n - \n\nChina Minsheng Bank (iii) \nJanuary 14, 2026 \n 9,900  \n 2.80% \n -  \n 9,900 \n\nChina Minsheng Bank (iii) \nNovember 3,2026 \n 9,900  \n 2.50% \n -  \n 9,900 \n\nBank of Beijing (iv) \nJune 5, 2026 \n 10,000  \n 2.80% \n -  \n 10,000 \n\nBank of Beijing (iv) \nJune 19, 2026 \n 10,000  \n 2.80% \n -  \n 10,000 \n\nIndustrial Bank (v) \nMay 29, 2026 \n 5,000  \n 2.80% \n -  \n 5,000 \n\nIndustrial and Commercial Bank of China (vi) \nJune 26, 2026 \n 5,000  \n 2.35% \n -  \n 5,000 \n\nIndustrial and Commercial Bank of China (vi) \nJune 26, 2026 \n 5,000  \n 2.35% \n -  \n 5,000 \n\nIndustrial and Commercial Bank of China (vii) \nJune 26, 2026 \n 5,000  \n 2.35% \n -  \n 5,000 \n\nBank of China (viii) \nJune 30, 2026 \n 10,000  \n 2.15% \n -  \n 10,000 \n\nBank of Shanghai (ix) \nSeptember 8, 2026 \n 5,000  \n 2.40% \n -  \n 5,000 \n\nBank of Shanghai (x) \nAugust 28, 2026 \n 5,000  \n 2.40% \n -  \n 5,000 \n\nChina CITIC Bank (xi) \nDecember 30, 2026 \n 700  \n 2.80% \n -  \n 700 \n\nBank of Beijing (xii) \nMay 8, 2027 \n 4,800  \n 2.60% \n -  \n 4,800 \n\nBank of Beijing (xii) \nMay 8, 2027 \n 5,000  \n 2.60% \n    \n 5,000 \n\nTotal Bank borrowings \n  \n    \n    \n 30,000  \n 90,300 \n\n \n\n(i)\nOn\nMay 22, 2024, the Group entered into an RMB10.0 million credit facility with the Industrial Bank Co., Ltd. (“Industrial Bank”)\nthat expired on May 21, 2025 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility,\nthe Group drew down RMB5.0 million on May 31, 2024. The loans of RMB 5.0 million has been repaid on May 30, 2025.\n\n \n\nF-35\n\n \n\n \n\n**10.\nShort-term and long-term borrowings (Continued)**\n\n \n\n(ii)\nOn\nJune 20, 2024, Baodafang entered into an RMB50.0\nmillion (updated to RMB20.0\nmillion on December 25, 2024)\ncredit facility with the Bank of Beijing that will expire on June\n19, 2026 to support its\noperations, which was guaranteed by Beijing Cheche. Under this credit facility, on June 20, 2024, Baodafang entered into a\nsupply chain financing agreement with the Bank of Beijing, whereby the Bank of Beijing would settle Baodafang’s accounts payable\nby providing RMB10.0\nmillion to Baodafang’s\nsupplier, Beijing Cheche, after Beijing Cheche factored its corresponding accounts receivable due from Baodafang to the Bank of Beijing\nthrough a non-recourse factoring agreement. The interest and the principal has been repaid upon maturity on June\n6, 2025. In addition,\nunder this credit facility, the Group drew down RMB10.0\nmillion on December 27, 2024.\nThe loans of RMB10.0\nmillion were repaid on June 17,\n2025. There are no financial covenants for the credit facility.\n\n \n \n\n(iii)\nOn\nNovember 6, 2024, the Group entered into an RMB30.0 million credit facility with the China Minsheng Bank that expired on November\n5, 2025 to support its operations, which was jointly guaranteed by Cheche Insurance and Baodafang. Under this credit facility, the\nGroup drew down RMB5.0 million on December 11, 2024.The loans of RMB 5.0 million has been repaid on October 31, 2025. In addition,\nunder this credit facility, the Group drew down RMB9.9 million on January 14, 2025 and RMB9.9 million on November 3, 2025,respectiely.\nThere are no financial covenants for the credit facility.\n\n \n \n\n(iv)\nOn\nJune 20, 2024, Baodafang entered into an RMB50.0\nmillion (updated to RMB20.0\nmillion on December 25, 2024)\ncredit facility with the Bank of Beijing that will expire on June\n19, 2026 to support its\noperations, which was guaranteed by Beijing Cheche. On June 10, 2025, Beijing Cheche entered into non-recourse factoring agreement with the Bank of Beijing, whereby the Bank of Beijing would settle Baodafang’s accounts\npayable by providing RMB10.0\nmillion to Baodafang’s\nsupplier, Beijing Cheche. The interest was prepaid and the principal will be due upon maturity on June 5, 2026.\nIn addition, under this credit facility, the Group drew down RMB10.0\nmillion on June 19, 2025. There\nare no financial covenants for the credit facility.\n\n \n \n\n(v)\nOn\nMay 30, 2025, the Group entered into a loan contract of RMB5.0 million with the Industrial Bank Co., Ltd. (“Industrial Bank”)\nthat will expire on May 29, 2026 to support its operations, which was guaranteed by Cheche Insurance. There are no financial covenants\nfor the loan.\n\n \n \n\n(vi)\nOn\nOctober 14, 2025, the Group entered into a loan contract of RMB10.0 million with the Industrial and Commercial Bank of China that\nwill expire on June 26, 2026 to support its operations, which was guaranteed by Baodafang and Cheche Insurance. There are no financial\ncovenants for the credit facility.\n\n \n \n\n(vii)\nOn\nJune 27, 2025, the Group entered into a loan contract of RMB5.0 million with the Industrial and Commercial Bank of China that will\nexpire on June 26, 2026 to support its operations, which was guaranteed by Beijing Cheche and Cheche Insurance. There are no financial\ncovenants for the credit facility.\n\n \n \n\n(viii)\nOn\nJune 30, 2025, the Group entered into an RMB10.0 million credit facility with the Bank of China that will expire on June 28, 2026\nto support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, the Group drew down RMB10.0 million\non June 30, 2025. There are no financial covenants for the credit facility.\n\n \n \n\n(ix)\nOn\nDecember 8, 2025, the Group entered into an RMB5.0\nmillion credit facility with the Bank of Shanghai that will expire on August\n24, 2026 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility, the Group drew down\nRMB5.0\nmillion on December 8, 2025. There are no financial covenants for the credit facility.\n\n \n \n\n(x)\nOn\nNovember 28, 2025,  the Group entered into an RMB5.0\nmillion credit facility with the Bank of Shanghai that will expire on August\n26, 2026 to support its operations, which was guaranteed by Cheche Insurance. Under this credit facility,  The\nGroup drew down RMB5.0\nmillion on November 28, 2025. There are no financial covenants for the credit facility.\n\n \n \n\n(xi)\nOn\nDecember 29, 2025, the Group entered into an RMB10.0\nmillion credit facility with the China CITIC Bank that will expire on December\n20, 2026 to support its operations, which was guaranteed by Beijing Cheche. Under this credit facility, The Group\ndrew down RMB0.7\nmillion on December 31, 2025. There are no financial covenants for the credit facility.\n\n \n \n\n(xii)\nOn\nMay 8, 2025, the Group entered into an RMB20.0 million credit facility with the Bank of Beijing  that will expire\non May 8, 2027 to support its operations, which was guaranteed by the deposit pledge of USD 3.0 million. Under\nthis credit facility, the Group drew down RMB5.0 million on June 3, 2025, of which RMB0.2 million in principal was repaid on December\n3, 2025. In addition, the Group drew down another RMB5.0 million on October 22, 2025. There are no financial covenants for the credit\nfacility.\n\n \n\n \n\n**11.\nTaxation**\n\n** **\n\n**a)\nIncome taxes**\n\n** **\n\n**Cayman\nIslands**\n\n \n\nUnder\nthe current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends\nby the Company in the Cayman Islands to its shareholders, no Cayman Islands withholding tax will be imposed.\n\n \n\n**Hong\nKong**\n\n Hong\nKong [Member]\n\nSubsidiary\nincorporated 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\n1, 2018. Starting from the financial year commencing on April 1, 2018, the two-tiered profits tax regime took effect, under which the\ntax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million.\n\n \n\n**PRC**\n\n** **\n\n China\n[Member]\n\nUnder\nthe Enterprise Income Tax (“EIT”) Law of the PRC, the Company’s PRC subsidiaries, VIE and subsidiaries\nof VIE are subject to an income tax of 25%,\nexcept for Beijing Cheche and Baodafang, which Beijing Cheche was entitled a preferential tax rate of 15%\nfrom 2022 to 2024 and from 2025 to 2027 for its High and New Technology Enterprise (“HNTE”) status, and Baodafang was entitled\na preferential tax rate of 15%\nfrom 2023 to 2025 for its HNTE status, subject to annual evaluation and a requirement that they re-apply for HNTE status every three\nyears.\n\n \n\nF-36\n\n \n\n \n\n**11.\nTaxation (Continued)**\n\n** **\n\n**a)\nIncome taxes (Continued)**\n\n \n\nThe\ncomponents of loss before income taxes are as follows (in thousands):\n\n \n\nSchedule of Income Tax Expense\n\n  \n   \n   \n  \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nLoss before income tax expense \n    \n    \n   \n\nLoss from PRC operations \n (149,818) \n (45,582) \n (9,700)\n\nLoss from non-PRC operations \n (10,135) \n (15,945) \n (8,495)\n\nTotal Loss before income tax expense  \n (159,953) \n (61,527) \n (18,195)\n\n \n\n  \n   \n  \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024 \n\n  \nRMB  \nRMB \n\nIncome tax benefit applicable to PRC operations \n    \n   \n\nDeferred income tax benefit \n 525  \n 525 \n\nSubtotal income tax benefit applicable to PRC operations \n 525  \n 525 \n\nNon-PRC withholding tax expense \n (162) \n (234)\n\nTotal income tax benefit \n 363  \n 291 \n\n \n\n  \nFor the year ended\n\nDecember 31, \n\n  \n2025 \n\n  \nRMB \n\nCurrent income tax expense \n   \n\nPRC \n - \n\nNon-PRC \n (119)\n\nTotal current income tax expense \n (119)\n\nDeferred income tax benefit \n   \n\nPRC \n 525 \n\nNon-PRC \n - \n\nTotal deferred income tax benefit \n 525 \n\n  \n   \n\nTotal income tax benefit \n 406\n\n \n\nThe reconciliation of taxes at the PRC\nstatutory rate to our provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 in accordance with the\nguidance prior to the adoption of ASU 2023-09 was as follows:\n\n \n\nSchedule of Rate of Loss Before\nIncome Taxes and Actual Provision\n\n  \n   \n  \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024 \n\n  \nRMB  \nRMB \n\nLoss before income tax \n (159,953) \n (61,527)\n\nTax benefit at EIT tax rate of 25%* \n (39,989) \n (15,382)\n\nEffect of different tax rates applicable to different subsidiaries of the\nGroup \n 18,589  \n 6,579 \n\nEffect of changes in tax rates \n 8,158  \n - \n\nExpired operating loss \n 14,966  \n 31,294 \n\nPermanent differences \n 13,722  \n 1,604 \n\nChanges in deferred tax assets valuation allowance \n (15,809) \n (24,386)\n\nIncome tax benefit \n (363) \n (291)\n\n \n\n*The PRC statutory\nincome tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC for the years\nended December 31, 2023, 2024 and 2025.\n\n \n\nF-37\n\n \n\n \n\nUpon adoption of ASU 2023-09,\nImprovements to Income Tax Disclosures, as described in Note 2, Significant Accounting Policies, the reconciliation of taxes at the PRC\nstatutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2025 was as follows:\n\n \n\n  \n   \n  \n\n  \nFor the year ended December 31, \n\n  \n2025 \n\n  \nRMB  \n％ \n\nLoss before income tax \n (18,195) \n 100.0%\n\nPRC statutory income tax rate \n 25% \n 25%\n\nComputed income tax benefit with PRC statutory income tax rate \n (4,548) \n 25%\n\nDomestic tax effects \n    \n   \n\nPreferential tax rate \n \n(1,123\n) \n 6.2%\n\nAdditional deduction of qualified R&D expenditures \n (4,956) \n 27.2%\n\nNon-deductible accrued share-based compensation \n \n3,759\n  \n \n-20.7\n%\n\nNon-deductible interest expenses \n 672  \n -3.7%\n\nNon-deductible entertainment expense \n 458  \n -2.5%\n\nChanges in valuation allowance \n 1,707  \n -9.4%\n\nExpired operating loss \n 1,134  \n -6.2%\n\nOther \n 240  \n -1.3%\n\nForeign tax effects \n    \n   \n\nHong Kong \n    \n   \n\n-Statutory tax rate difference between Hong Kong and PRC \n (257) \n 1.4%\n\nCayman \n    \n   \n\n-Statutory tax rate difference between Cayman and PRC \n 2,508  \n -13.8%\n\nEffective tax rate \n (406) \n 2.2%\n\n  \n\nUpon\nadoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Significant Accounting Policies, cash paid for\nincome taxes (excluding withholding tax), during the year ended December 31, 2025 was as follows:\n\n \n\nSchedule of Income Taxes Paid\n\n  \n\nFor the year ended\n\nDecember 31,\n \n\n  \n2025 \n\n  \nRMB \n\nPRC \n - \n\nNon-PRC \n - \n\nTotal \n - \n\n** **\n\nF-38\n\n \n\n** **\n\n**11.\nTaxation (Continued)**\n\n** **\n\n**b)\nDeferred tax assets and liabilities**\n\n** **\n\nThe\nfollowing table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities\nas of December 31, 2024 and 2025:\n\n \n\nSchedule of Deferred Tax Assets and Liabilities\n\n  \n**As of**\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nDeferred tax assets： \n    \n   \n\nNet accumulated losses carry forwards \n 98,161  \n 103,182 \n\nAccrued payroll and other expenses \n 10,966  \n 13,017 \n\nAdvertising expenses in excess of deduction limit \n 6,386  \n 812 \n\nFair value changes of amounts due to related party \n 4,350  \n 5,019 \n\nAccrued expenses \n 427  \n 427 \n\nDeferred revenue \n 358  \n 358 \n\nOthers \n 2,390  \n 1,930 \n\nDeferred tax assets \n 123,038  \n 124,745 \n\nLess: valuation allowance \n (123,038) \n (124,745)\n\nDeferred tax assets, net \n -  \n - \n\nDeferred tax liabilities： \n    \n   \n\nIdentifiable intangible assets arising from acquisition of Cheche Insurance (Note 8) \n (1,488) \n (963)\n\nDeferred tax liabilities \n (1,488) \n (963)\n\n \n\nAccording to PRC tax regulations,\nthe PRC enterprise’s net operating loss can be generally carried forward for no longer than five years, and HNTE’s net operating\nlosses can be carried forward for no more than ten years, starting from the year subsequent to the year in which the loss was incurred.\nCarryback of losses is not permitted. The Group will re-apply for the HNTE certificate when the prior certificate expires in the foreseeable\nfuture.\n\n \n\nTotal net operating losses\ncarryforwards of the Group’s subsidiaries in PRC is RMB538.24 million as of December 31, 2025. As of December 31, 2025, the net\noperating loss carryforwards from PRC will expire in calendar years 2026 through 2035, if not utilized.\n\n \n\nThe\nGroup does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets of certain\nentities of the Group is more likely than not to be realized. Consequently, the Group has provided full valuation allowances on the related\ndeferred tax assets. The following table sets forth the movement of valuation allowance for the years presented:\n\n \n\nSchedule of Valuation Allowance\n\n  \nDecember 31,\n2023  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nBalance at the beginning of the year \n (163,233) \n (147,424) \n (123,038)\n\n(Additions)/Reversals \n 15,809  \n 24,386  \n (1,707)\n\nBalance at end of the year \n (147,424) \n (123,038) \n (124,745)\n\n \n\n**c)\nWithholding income tax**\n\n** **\n\nThe\nenterprise income tax (“EIT”) Law also imposes a withholding income tax of 10% on dividends distributed by a foreign-invested\nentity (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident\nenterprise without any establishment or place within China or if the received dividends have no connection with the establishment or\nplace of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has\na tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does\nnot have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance\nof Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company\nin Hong Kong will be subject to withholding tax at a rate of no more than 5% if all the requirements are satisfied.\n\n \n\nF-39\n\n \n\n \n\n**11.\nTaxation (Continued)**\n\n \n\n**c)\nWithholding income tax (Continued)**\n\n \n\nTo\nthe extent that subsidiaries, VIE and subsidiaries of VIE of the Group have undistributed earnings, the Company will accrue appropriate\nexpected withholding tax associated with repatriation of such undistributed earnings. As of December 31, 2024 and 2025, the Company did\nnot record any such withholding tax of its subsidiaries, VIE and subsidiaries of VIE in the PRC as they are still in accumulated deficit\nposition.\n\n \n\n**12.\nTax payable**\n\n** **\n\nThe\nGroup’s subsidiaries, VIE and subsidiaries of VIE incorporated in China are subject to 6% VAT for services rendered.\n\n \n\nThe\nfollowing is a summary of tax payable as of December 31, 2024 and 2025:\n\n** **Schedule\nof Tax Payable\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nVAT payables \n 11,355  \n 22,177 \n\nIndividual income tax payables \n 552  \n 440 \n\nConstruction tax payables \n 40  \n 15 \n\nEducational development payables \n 29  \n 11 \n\nOthers \n 35  \n 14 \n\nTotal \n 12,011  \n 22,657 \n\n** **\n\n**13.\nAccrued expenses and other current liabilities**\n\n \n\nThe\nfollowing is a summary of accrued expenses and other current liabilities as of December 31, 2024 and 2025:\n\n Schedule\nof Accrued Expenses and Other Current Liabilities\n\n  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\n  \nRMB  \nRMB \n\nProfessional service fees \n 8,562  \n 12,022 \n\nRefund liabilities \n 7,792  \n 5,801 \n\nPayables to third-party financial institutions (i) \n 5,000  \n - \n\nAccrued expenses \n 1,586  \n 549 \n\nOthers \n 2,308  \n 834 \n\nTotal \n 25,248  \n 19,206 \n\n \n\n(i)\nOn\nNovember 13, 2024, the Group entered into a factoring agreement with a third-party financial institution, whereby the financial institution\nlent RMB5.0 million after the Group factored its accounts receivable to the financial institution. The interest is payable on a monthly\nbasis and the principal is due upon maturity on April 13, 2025. The Group’s consolidated statements of cash flows has reflected\na financing cash inflow related to this affected payables balance in “Cash receipt of the debt proceeds”. On April 10,\n2025, the Group has entered into a supplemental agreement to extend the maturity of the principal balance of RMB5.0 million to August\n30, 2025. As of December 31, 2025, the Group had repaid all principal and interest in full.\n\n** **\n\nF-40\n\n \n\n** **\n\n**14.\nPreferred shares**\n\n** **\n\nPrior\nto the Reverse Recapitalization, CCT was authorized to issue ordinary shares and preferred shares. Series A, Series B, Series C, Series\nD1, Series D2, Series D3 and Series Pre-A convertible redeemable preferred shares held by Ruiyuan Technology Holdings Limited (“Ruiyuan”)\nafter its re-designation are collectively referred to as the “Preferred Shares”. Series Seed preferred shares, Series Pre-A\npreferred shares held by Cicw Holdings Limited (“Cicw Holdings”), and Series Pre-A preferred shares held by Ruiyuan prior\nto its re-designation are without redemption right, conversion right and liquidation right, hence together referred as “Ordinary\nShares”, in substance. \n\n \n\nThe\nfollowing table summarizes the issuances of Preferred Shares by CCT:\n\n Schedule\nof Issuances of Preferred Shares\n\n  \nAs of December 31, 2022 \n\n  \nShares\nAuthorized*  \nShares\nIssued and\nOutstanding  \nIssue\nPrice per\nShare  \nRedemption Value  \nLiquidation Value \n\n  \n   \n   \n   \nUS$  \nUS$ \n\nSeries Pre-A \n 4,429,111  \n 4,429,111  \n RMB 5.45  \n 19,752  \n 19,965 \n\nSeries A \n 9,181,406  \n 9,181,406  \n RMB 5.45  \n 40,853  \n 40,886 \n\nSeries B \n 8,033,732  \n 8,033,732  \n RMB 21.78  \n 49,709  \n 52,721 \n\nSeries C \n 1,955,000  \n 1,955,000  \n US$ 8.58  \n 17,616  \n 19,916 \n\nSeries D1 \n 399,496  \n 399,496  \n US$ 8.85  \n 3,653  \n 4,071 \n\nSeries D2 \n 765,057  \n 765,057  \n US$ 8.85  \n 6,996  \n 7,795 \n\nSeries D3 \n 10,426,666  \n 10,426,666  \n US$ 8.85  \n 94,523  \n 106,238 \n\n  \n 35,190,468  \n 35,190,468  \n    \n 233,102  \n 251,592 \n\n \n\n***\n*Shares\nauthorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\n*Series\nPre-A financing*\n\n \n\nIn\nJuly 2015, Beijing Cheche issued 146,903 shares to Shenzhen Ruiyuan Investment Enterprise, LLP (“Shenzhen Ruiyuan”) for the\nconsideration of RMB30.0 million. Since then, after a series of transactions among investors of Beijing Cheche, Shenzhen Ruiyuan held\n108,891 shares, immediately before the Reorganization.\n\n \n\nJanuary\n2019, in connection with the Reorganization, CCT issued 5,444,575 ordinary shares to Ruiyuan, designated by Shenzhen Ruiyuan.\n\n \n\nIn\nOctober 2019, 1,015,462 of ordinary shares were transferred from Ruiyuan to Cicw Holdings for the consideration of RMB6.0 million. In\nJune 2021, 4,429,111 of ordinary shares held by Ruiyuan were re-designated into Series Pre-A preferred shares, for nil consideration.\n\n \n\n*Series\nA financing*\n\n \n\nIn\nJuly 2016, Beijing Cheche issued 91,814 and 91,814 shares to Beijing Zhongyun Ronghui Investment Center, LLP (“Zhongyun Ronghui”)\nand Hangzhou Shunying Equity Investment Enterprise, LLP (“Hangzhou Shunying”) for the consideration of RMB25.0 million and\nRMB25.0 million, respectively.\n\n \n\nOn\nNovember 22, 2018, CCT entered into Preferred Share and Warrant Purchase Agreement with Zhongyun Ronghui and Hangzhou Shunying. CCT issued\nwarrants to Zhongyun Ronghui and Hangzhou Shunying in connection with the Reorganization, which entitled them to purchase 4,590,703 and\n4,590,703 shares of Series A convertible redeemable preferred shares, respectively. The warrants were exercised on May 23, 2019.\n\n \n\nOn\nMay 23, 2019, CCT issued 4,590,703 and 4,590,703 Series A preferred shares to Zhongyun Ronghui and Ningbo Shiwei Enterprise Management\nPartnership (L.P.) (“Ningbo Shiwei”) (designated by Hangzhou Shunying) for the consideration of US$ equivalent of RMB0.4\nmillion and RMB0.4 million, respectively.\n\n \n\nF-41\n\n \n\n \n\n**14.\nPreferred shares (Continued)**\n\n \n\n*Series\nB financing*\n\n \n\nIn\nAugust 2017, Beijing Cheche issued 6,886, 6,886, 55,088 and 91,814 shares to Zhongyun Ronghui, Hangzhou Shunying, Huzhou Zhongze Jiameng\nEquity Investment Enterprise, LLP (“Huzhou Zhongze”) and Zhuhai Hengqin Huarong Zhifu Investment Management Co., Ltd. (“Zhuhai\nHengqin”) for the consideration of RMB7.5 million, RMB7.5 million, RMB60.0 million and RMB100.0 million, respectively.\n\n \n\nOn\nNovember 22, 2018, CCT entered into Preferred Share and Warrant Purchase Agreement with Zhongyun Ronghui and Hangzhou Shunying. CCT issued\nwarrants to Zhongyun Ronghui and Hangzhou Shunying in connection with the Reorganization, which entitled them to purchase 344,303 and\n344,303 shares of Series B convertible redeemable preferred shares, respectively. The warrants were exercised on May 23, 2019.\n\n \n\nIn\nJanuary 2019, in connection with the Reorganization, CCT issued 2,754,422 and 4,590,704 Series B preferred shares to Eagle Rover Ltd.\n(“Huzhou Zhongze BVI”), and Lian Jia Enterprise Limited (“Zhuhai Hengqin BVI”), designated by Huzhou Zhongze\nand Zhuhai Hengqin, respectively.\n\n \n\nOn\nMay 23, 2019, CCT issued 344,303 and 344,303 Series B preferred shares to Zhongyun Ronghui and Ningbo Shiwei (designated by Hangzhou\nShunying) for the consideration of US$ equivalent of RMB0.1 million and RMB0.1 million, respectively.\n\n* *\n\n*Series\nC financing*\n\n* *\n\nJanuary\n2019, CCT issued 1,877,135 Series C preferred shares to White Elephant for the consideration of US$17.4 million. In October 2019, CCT\nissued an additional 150,171 Series C preferred shares to White Elephant at par value which was accounted for as deemed dividend from\nCCT to White Elephant.\n\n \n\nIn\nApril 2021, CCT issued 1,955,000 Series C preferred shares to Yonghe CT Limited for the consideration of US$15.0 million. In February\n2022, Yonghe CT Limited transferred its 782,000 Series C preferred shares to Yonghe CarTech Limited with no consideration.\n\n \n\nIn\nJanuary 2022, CCT received a notice of redemption request letter (the “Letter”) from White Elephant, as the Group failed\nto consummate a QIPO (defined as (i) a public offering of ordinary shares of CCT with an implied valuation of US$800,000,000 or more\non the first day of listing the shares of CCT and the public offering of ordinary shares accounting for at least 10% of all the ordinary\nshares on a fully diluted and as-converted basis on the Stock Exchange of Hong Kong Limited or NASDAQ or a securities exchange or inter-dealer\nquotation system recognized by the right holder investors otherwise; or (ii) any public offering agreed by the holders of at least 2/3\nof the then issued and outstanding preferred shares; or (iii) any SPAC transaction agreed by the holders of at least 2/3 of the then\nissued and outstanding preferred shares) by January 18, 2022, defined as a redemption event under an Amended and Restated Memorandum\nand Articles of Association of CCT dated July 26, 2021. In November 2022, in connection with an Amended and Restated Memorandum and Articles\nof Association of CCT dated November 3, 2022 (the “Existing M&A”) Article 19(a)(i), which changed the Redemption Event\n(i) as “CCT fails to consummate a QIPO by January 18, 2024” and the Letter, the Group and White Elephant agreed and entered\ninto a Share Repurchase Agreement, whereby CCT repurchased its 27,600,750 Series C preferred shares from White Elephant for a consideration\nof US$19.7 million. The agreed redemption amount paid for Series C preferred shares to White Elephant was lower than its carrying amount\nof the Series C preferred shares accreted up to the redemption amount as of redemption date in November 2022 in accordance with the original\ncontractual terms. The repurchase of this Series C preferred shares from White Elephant was completed in November 2022.\n\n** **\n\nF-42\n\n \n\n \n\n**14.\nPreferred shares (Continued)**\n\n* *\n\n*Series\nD1 financing*\n\n \n\nIn\nJune 2021, CCT issued 399,496 Series D1 preferred shares to United Gemini Holdings Limited for the consideration of RMB20.0 million.\n\n* *\n\n*Series\nD2 financing*\n\n \n\nIn\nJune 2021, CCT issued 651,667 and 113,390 Series D2 preferred shares to Yonghe CT Limited and Yonghe SI Limited for the consideration\nof US$5.0 million and US$0.9 million, respectively. In February 2022, Yonghe CT Limited transferred its 260,667 shares to Yonghe CarTech\nLimited with no consideration.\n\n \n\n*Series\nD3 financing*\n\n \n\nIn\nJuly 2021, CCT issued 8,341,333 and 2,085,333 Series D3 preferred shares to Image Digital Investment (HK) Limited and TPP Fund II Holding\nF Limited for the consideration of US$64.0 million and US$16.0 million, respectively.\n\n \n\nThe\nkey terms of the Preferred Shares are as follows:\n\n \n\n**Conversion\nright**\n\n \n\nEach\nof Preferred Shares shall automatically be converted into ordinary shares at the then effective conversion price upon the closing of\na QIPO. If the offering does not constitute a QIPO, it is at the option of holders of Preferred Shares to convert. No fractional ordinary\nshare shall be issued upon conversion of the Preferred Shares. In lieu of any fractional ordinary shares to which the holder would otherwise\nbe entitled, CCT shall pay cash equal to such fraction multiplied by the then effective conversion price for any such series of Preferred\nShares.\n\n \n\nThe\nconversion ratio for each of Preferred Share shall be determined by dividing the issue price by the then conversion price, in effect\nat the time of the conversion. The conversion price shall initially be equal to the issue price per ordinary share. No adjustment in\nthe conversion price for any series of Preferred Shares shall be made in respect of the issuance of additional ordinary shares unless\nbelow conditions are met: 1) the consideration per share for an additional ordinary share issued or deemed to be issued by CCT is less\nthan the conversion price for such series in effect on the date of and immediately prior to such issuance; 2) the original issue price\nof each of the Series C, Series D1, Series D2 and Series D3 preferred shares is higher than seventy-five75 percent of the QIPO offering\nprice.\n\n \n\nF-43\n\n \n\n \n\n**14.\nPreferred shares (Continued)**\n\n \n\n**Redemption\nright**\n\n \n\nThe\nPreferred Shares holders shall have redemption rights upon the occurrence of any of the following events: (i) CCT fails to complete QIPO\nby January 18, 2022 (the “QIPO date”); (ii) Share Purchase Agreement, Shareholders Agreement and the Memorandum and Articles\nof Association (“Transaction Document”) fails to obtain necessary corporate proceedings and authorization from the Group\nCompanies, the Founder and the Founder’s Holdco.; (iii) there is a material breach by any Group Companies, the Founder and the\nFounder’s Holdco of any of its, his or her, warranties, covenants, obligations under any Transaction Document , or (iv) there is\na material breach by any Group Companies, the Founder and the Founder’s Holdco of any applicable Laws, which results in a cessation\nof CCT’s main business for a period of no less than three months; (v) any Group Company’s improper operation of its business\nand/or illegal activities, any of which have resulted in substantial losses to any Group Company; (vi) Any of Contractual arrangements\nwith VIE has been terminated, declared void or invalid or otherwise incapable of enabling CCT to consolidate the Domestic Company’s\nfinancial results pursuant to the International Financial Reporting Standards or the United States’ generally accepted accounting\nprinciples; (vii) the Founder having been convicted of a criminal offence; (viii) the Group Companies’ engagement in the business\nother than the current business (each a “Redemption Event”); then each of Preferred Shares shall be redeemable upon the request\nof any preferred shareholder.\n\n \n\nUnder\nthe Amended and Restated Memorandum and Articles of Association of CCT dated November 3, 2022, the Preferred Shareholders agreed to change\nthe QIPO date as part of the Redemption Event (i) to January 18, 2024. On February 23, 2023, the Preferred Shareholders further agreed\nto amend the QIPO date to January 18, 2025. On the same date, the Group entered into share transfer agreements with the existing Preferred\nShareholders and transferred 559,868, 606,524, 606,524, 1,119,736, 1,866,227, 1,522,101, 1,014,735, 388,793, 110,352, 8,117,877 and 2,029,469\nordinary shares of CCT at par value to these existing preferred shareholders before the QIPO including Ruiyuan, Zhongyun Ronghui, Ningbo\nShiwei, Huzhou Zhongze BVI, Zhuhai Hengqin BVI, Yonghe CT Limited, Yonghe CarTech Limited, United Gemini Holdings Limited, Yonghe SI\nLimited, Image Digital Investment (HK) Limited and TPP Fund II Holding F Limited, respectively in connection with the modification of\nthe QIPO date relating to the preferred shares.\n\n \n\nThe\nPreferred Shares’ redemption price shall be equal to the greater of (i) the original investment amount of the capital contribution,\nplus an amount accruing thereon daily at a compound interest rate of ten percent (10%) per annum of the capital contribution from issue\ndate plus any declared but unpaid dividends; or (ii) the original investment amount of the capital contribution, plus the aggregate net\nprofits of the Group incurred from issue date to the redemption date multiplied by average amount of the percentage of the shares held\nby such investor in CCT from issue date to the redemption date; or (iii) the fair market value of the capital contribution to be redeemed\ndetermined by a third party valuer.\n\n \n\n**Dividend\nright**\n\n** **\n\nNo\ndividends or other distributions shall be made or declared, whether in cash, in property, or in any other shares of the Group, unless\nand until dividends have been paid in full on the Preferred Shares.\n\n \n\n**Liquidation\nright**\n\n** **\n\nAfter\nsetting aside or paying in full of the Series D3 preference amount, the Series D2 preference amount, the Series D1 preference amount,\nthe Series C preference amount, the Series B preference amount, the Series A preference amount and the Series Pre-A preference amount,\nthe remaining assets of the Group available for distribution to members, if any, shall be distributed to the holders of the Preferred\nShares 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.\n\n \n\n**Voting\nright**\n\n \n\nEach\nof Preferred Shares confers the right to receive notice of, attend and vote at any general meeting of members.\n\n \n\nF-44\n\n \n\n \n\n**14.\nPreferred shares (Continued)**\n\n \n\n**Accounting\nof Preferred Shares**\n\n** **\n\nThe\nGroup has classified the Preferred Shares in the mezzanine equity of the consolidated balance sheets as they were redeemable at the options\nof the holders any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation event outside\nof CCT’s control. The conversion feature as mentioned above, are initially measured at its fair value, respectively, and the initial\ncarrying value for the Preferred Shares are allocated on a residual basis, net of issuance costs.\n\n \n\nSince\nthe Preferred Shares become redeemable at the option of the holder at any time after a specified date, for each reporting period, CCT\nrecorded accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption dates as set forth\nin the original issuance. While all Preferred Shares are automatically converted upon a QIPO, the effectiveness of a QIPO is not within\nthe control of CCT and is not deemed probable to occur for accounting purposes until the effective date of the QIPO. As such, CCT continued\nto recognize accretion of the Preferred Shares during the years ended December 31, 2021, 2022 and the period from January 1, 2023 to\nSeptember 14, 2023 (the Closing Date of the Business Combination). The accretion of Preferred Shares was negative RMB101.5 million, RMB188.3\nmillion and RMB762.2 million for the years ended December 31, 2021, 2022 and the period from January 1, 2023 to September 14, 2023.\n\n \n\nIn\naddition, the Group records accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption\ndates. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in\ncapital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. Each\nissuance of the Preferred Shares is recognized at the respective fair value at the date of issuance net of issuance costs.\n\n* *\n\nThe\ndeemed liquidation preference provisions of the Preferred Shares were considered contingent redemption provisions that were not solely\nwithin the CCT’s control. As such, prior to the Reverse Recapitalization, the associated balances were presented outside of permanent\nequity in the mezzanine section of the consolidated balance sheets. As part of the Reverse Recapitalization transaction, as described\nwithin Note 3, the Preferred Shares was converted into a certain number of ordinary shares of CCT based on the CCT’s then effective\nmemorandum and articles of association, and then CCT converted the ordinary shares converted from preferred shares into a certain number\nof the Company’s Class A ordinary shares. The Company had no outstanding Preferred Shares as of December 31, 2023.\n\n* *\n\n**Accounting\nof Re-designation from ordinary shares to preferred shares**\n\n** **\n\nThe\nGroup considered that re-designation from ordinary shares to preferred shares mentioned above were, in substance, the same as a contribution\nfrom ordinary shareholders followed by a cancellation of those ordinary shares and simultaneously an issuance of the preferred shares\nfor no consideration. Therefore, the Group recorded the par value of those ordinary shares cancelled into additional paid-in capital,\nand recorded the fair value of the preferred shares as deemed distribution to preferred shareholders, against retained earnings, or in\nthe absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional\npaid-in capital has been exhausted.\n\n \n\nF-45\n\n \n\n** **\n\n**14.\nPreferred shares (Continued)**\n\n \n\nThe\nGroup’s preferred shares activities for the years ended December 31, 2023, 2024, respectively, are summarized below:\n\n Schedule\nof Preferred Shares Activities\n\n  \nBalance as of\nJanuary 1,\n2022  \nAccretions to Preferred\nShares redemption value  \nRedemption of Preferred Shares  \nBalance as of\nDecember 31,\n2022 \n\n  \n   \n   \n   \n  \n\nSeries Pre-A Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 4,429,111  \n -  \n -  \n 4,429,111 \n\nAmount \n 121,121  \n 30,182  \n -  \n 151,303 \n\nSeries A Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 9,181,406  \n -  \n -  \n 9,181,406 \n\nAmount \n 270,877  \n 62,920  \n -  \n 333,797 \n\nSeries B Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 8,033,732  \n -  \n -  \n 8,033,732 \n\nAmount \n 275,750  \n 44,286  \n -  \n 320,036 \n\nSeries C Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 3,982,306  \n -  \n (2,027,306) \n 1,955,000 \n\nAmount \n 259,024  \n (11,139) \n (132,529) \n 115,356 \n\nSeries D1 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 399,496  \n -  \n -  \n 399,496 \n\nAmount \n 20,452  \n 2,187  \n -  \n 22,639 \n\nSeries D2 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 765,057  \n -  \n -  \n 765,057 \n\nAmount \n 34,992  \n 4,152  \n -  \n 39,144 \n\nSeries D3 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 10,426,666  \n -  \n -  \n 10,426,666 \n\nAmount \n 520,923  \n 55,683  \n -  \n 576,606 \n\n**Total Number of shares***** \n 37,217,774  \n -  \n (2,027,306) \n 35,190,468 \n\nTotal amount \n 1,503,139  \n 188,271  \n (132,529) \n 1,558,881 \n\n \n\n***\n*Shares\nauthorized, issued and outstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n* *\n\nF-46\n\n \n\n* *\n\n**14.\nPreferred shares (Continued)**\n\n \n\n  \nBalance as of\nJanuary 1,\n2023  \nAccretions to Preferred\nShares redemption value  \nTransfer Preferred Shares to Ordinary shareholders  \nBalance as of\nDecember 31,\n2023 \n\nSeries Pre-A Preferred shares \n   \n   \n   \n  \n\nNumber of shares \n 4,429,111  \n -  \n (4,429,111) \n - \n\nAmount \n 151,303  \n 149,858  \n (301,161) \n - \n\nSeries A Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 9,181,406  \n -  \n (9,181,406) \n - \n\nAmount \n 333,797  \n 311,290  \n (645,087) \n - \n\nSeries B Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 8,033,732  \n -  \n (8,033,732) \n - \n\nAmount \n 320,036  \n 239,317  \n (559,353) \n - \n\nSeries C Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 1,955,000  \n -  \n (1,955,000) \n - \n\nAmount \n 115,356  \n 9,144  \n (124,500) \n - \n\nSeries D1 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 399,496  \n -  \n (399,496) \n       - \n\nAmount \n 22,639  \n 1,853  \n (24,492) \n - \n\nSeries D2 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 765,057  \n -  \n (765,057) \n - \n\nAmount \n 39,144  \n 3,519  \n (42,663) \n - \n\nSeries D3 Preferred shares \n    \n    \n    \n   \n\nNumber of shares \n 10,426,666  \n -  \n (10,426,666) \n - \n\nAmount \n 576,606  \n 47,188  \n (623,794) \n - \n\nTotal Number of shares \n 35,190,468  \n -  \n (35,190,468) \n - \n\nTotal amount \n 1,558,881  \n 762,169  \n (2,321,050) \n - \n\n \n\nF-47\n\n \n\n \n\n**15.\nSegment Information**\n\n** **\n\nOperating\nsegments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly\nby the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing\nperformance. The Group manages its operations as a single1 segment engaged in providing insurance brokerage and technology services in\nChina. The Company concluded that the Group’s CODM is Mr. Lei Zhang, Chairman of the Board of Directors, and CEO.\n\n \n\nIn\naccordance with ASC 280-10, *Segment Reporting: Overall*, the CODM reviews the consolidated net loss that is reported on the consolidated\nstatements of operations and comprehensive loss when making decisions about allocating resources and assessing performance of the Group\nas a whole. The CODM uses this metric to make key operating decisions such as: approving new services strategy, making significant capital\nexpenditures, approving the design of key commercialization strategies, decisions about key personnel, and approving annual operating\nand capital budgets. Our CODM considers budget-to-actual variances and year over year performance when making decisions supporting capital\nresource allocation. The Group has also evaluated the significant segment expenses incurred by its single segment and regularly\nprovided to the CODM. The significant segment expenses provided to the CODM are consistent with those reported on the consolidated statements\nof operations and comprehensive loss and include cost of revenues, selling and marketing expenses, general and administrative expenses,\nresearch and development expenses, interest expense, and income taxes.\n\n \n\nKey\nrevenues streams are as below:\n\n \n\n**Schedule\nof Key Revenues Streams**\n\n  \n   \n   \n  \n\n  \n\n**For\nthe years ended December 31,**\n \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nInsurance transaction services income \n 3,275,182  \n 3,447,354  \n 2,989,775 \n\nSaaS and technical service income \n 25,051  \n 20,773  \n 14,118 \n\nOthers \n 1,185  \n 5,012  \n 5,952 \n\nTotal \n 3,301,418  \n 3,473,139  \n 3,009,845 \n\n \n\nSubstantially\nall revenues are derived in China where services are provided to customers. In addition, the Group’s long-lived assets are substantially\nall located in China and therefore the Company manages assets on a consolidated basis as reported on the consolidated balance sheet.\nTherefore, no geographical segments are presented.\n\n** **\n\n**16.\nCost of revenues**\n\n \n\nAmounts\nrecorded as cost of revenues relate to direct expenses incurred in order to generate revenue, which consists primarily of cost of referral\npartners, service fee paid to third-party payment platforms, salary and welfare benefits, tax and surcharges and others, amortization\nand depreciation expenses, and cloud service fees. These costs are charged to the consolidated statements of operations and comprehensive\nloss as incurred. The following table presents the Group’s cost of revenues for the years ended December 31, 2023, 2024 and 2025:\n\n \n\nSchedule\nof Cost of Revenues\n\n  \n   \n   \n  \n\n  \n\n**For\nthe years ended December 31,**\n \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nCost of referral partners \n 3,017,871  \n 3,199,118  \n 2,747,988 \n\nService fee paid to third-party payment platforms \n 129,453  \n 101,748  \n 89,110 \n\nSalary and welfare benefits \n 7,790  \n 6,828  \n 3,720 \n\nTax and surcharges and others \n 2,454  \n 3,106  \n 5,750 \n\nAmortization and depreciation \n 2,100  \n 2,100  \n 2,100 \n\nCloud service fees \n 1,525  \n 1,477  \n 819 \n\nTotal \n 3,161,193  \n 3,314,377  \n 2,849,487 \n\n \n\nF-48\n\n \n\n \n\n**17.\nEmployee benefits**\n\n \n\nThe\nCompany’s subsidiaries, VIE and subsidiaries of VIE incorporated in China participate in a government-mandated multi-employer defined\ncontribution plan under which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor\nregulations require the Company’s Chinese subsidiaries, VIE and subsidiaries of VIE to pay to the local labor bureau a monthly\ncontribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau\nis responsible for meeting all retirement benefit obligations; hence, the Group has no further commitments beyond its monthly contribution.\nThe following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2023, 2024 and 2025:\n\n \n\nSchedule\nof Employee Welfare Benefits Expenses\n\n  \n   \n   \n  \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nContributions to medical and pension schemes \n 21,095  \n 18,426  \n 17,320 \n\nOther employee benefits \n 6,726  \n 6,086  \n 5,696 \n\nTotal \n 27,821  \n 24,512  \n 23,016 \n\n** **\n\n**18.\nShare-based compensation**\n\n \n\n**(a)**\n**Description\nof stock option plan**\n\n \n\n2019\nIncentive Plan\n\n \n\nIn\nJanuary 2020, the Company permitted the grant of options and restricted shares to relevant directors, officers, senior management, employees\nand non-employees of the Group (the “2019 Incentive Plan”). Option awards are granted with an exercise price determined by\nthe Board of Directors.\n\n \n\nThe\nstock options granted under the 2019 Incentive Plan have a contractual term of 10 years and will expire the earlier of (i) three months\nafter termination of service with the Group, or (ii) upon the tenth anniversary of the grant date.\n\n \n\nF-49\n\n \n\n \n\n**18.\nShare-based compensation (Continued)**\n\n \n\n**(a)**\n**Description\nof stock option plan (Continued)**\n\n \n\nThe\nstock options granted under the 2019 Incentive Plan could either be granted with terms that (i) immediately vested upon grant; (ii) 50%\nvested on grant date and another 50% vested on anniversary; or (iii) 25% vested on each anniversary for vesting schedule of four years.\n\n \n\nThe\nrestricted shares granted under the 2019 Incentive Plan could either be granted with terms that (i) immediately vested upon grant; (ii)\n25% vested on each anniversary or 6.25% vested on each quarter for vesting schedule of four years; or (iii) 50% vested on each anniversary\nfor vesting schedule of two years.\n\n \n\n2023\nIncentive Plan\n\n \n\nIn\nSeptember 2023, the Company permitted the grant of options, restricted shares or any other type of awards to relevant directors, employees\nand non-employees of the Group (the “2023 Incentive Plan”). Option awards are granted with an exercise price determined by\nthe Board of Directors.\n\n \n\nIn\naccordance with ASC 718 Stock Compensation, the Group recorded share-based compensation expense on the grant date of the equity interests\nto its employees equal to the estimated fair-value of such equity interests at the measurement date. The share-based compensation expense\nwas recorded in cost of revenues, selling and marketing expenses, general and administrative expenses and research and development expenses\non the consolidated statements of operations and comprehensive loss.\n\n \n\nThe\nstock options granted under the 2023 Incentive Plan could either be granted with terms that (i) immediately vested upon grant; (ii)\n50% vested on grant date and another 50% vested on anniversary; or (iii) 25% vested on each anniversary for vesting schedule\nof four years.\n\n \n\nThe\nrestricted shares granted under the 2023 Incentive Plan could either be granted with terms that (i) immediately vested upon grant; (ii)\n25% vested on each quarter for vesting schedule of one year; or (iii) 100% vested on one-year anniversary.\n\n \n\nStock\noption replacement (the “Replacement”)\n\n \n\nOn\nJanuary 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\nshares of CCT, which were converted into restricted shares of the Company upon the completion of the Reverse Recapitalization (Note 3).\nThe restricted shares awards are subject to the original vesting schedule of the replaced share options. The Company concluded the cancellation\nand replacement of awards is a modification, and determined the modification is a probable-to-probable (Type I) modification. The Company\nhas recognized the portion of incremental value of RMB26.2 million and RMB26.3 million as cost of revenues and expenses immediately for\nthose vested options.\n\n \n\n**(b)**\n**Valuation\nassumptions**\n\n \n\nThe\nGroup uses binomial option pricing model and adopted fair value per share of ordinary share to determine fair value of the share-based\nawards. The estimated fair value of each option or each restricted share granted is estimated on the date of grant using the binomial\noption-pricing model or fair value per share of ordinary share with the following assumptions:\n\n \n\nSchedule\nof Option Pricing Model and Adopted Fair Value Per Share\n\n  \nFor the years ended December 31, \n\nOptions \n2023  \n2024  \n2025 \n\nFair value per share (US$) \n6.33-6.37  \n0.79~0.80  \n0.68~1.04 \n\nDiscount rate (after tax) \n Not applicable  \n Not applicable  \n Not applicable \n\nRisk-free interest rate \n 3.88% \n 4.58% \n \n4.11%~4.24%\n\n \n\nExpected volatility \n 64.2% \n 65.7% \n \n59.65%~73.81%\n\n \n\nContractual term (in years) \n 10  \n 10  \n 10 \n\n \n\nF-50\n\n \n\n \n\n**18.\nShare-based compensation (Continued)**\n\n \n\n**(b)**\n**Valuation\nassumptions (Continued)**\n\n \n\n  \nFor the years ended December 31,\n\nRestricted shares \n2023(prior to the Business Combination) \n2024 \n2025\n\nFair value per share (US$) \n4.90-5.45 \nNot applicable \nNot applicable\n\nDiscount rate (after tax) \n15.0%-16.0% \nNot applicable \nNot applicable\n\nDiscount for lack of marketability (“DLOM”) \n5%-10% \nNot applicable \nNot applicable\n\n \n\nThe\nexpected volatility at the grant date and each option valuation date was estimated based on the annualized standard deviation of the\ndaily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the\nterm of the options. The weighted average volatility is the expected volatility at the grant date weighted by number of options. The\nCompany has never declared or paid any cash dividends on its shares, and the Group does not anticipate any dividend payments in the foreseeable\nfuture. The contractual term is the contract life of the options. The Group estimated the risk-free interest rate based on the market\nyield of US Government Bonds with maturities of ten years as of the valuation date.\n\n \n\n**(c)**\n**Stock\noptions activities**\n\n \n\nThe\nfollowing table presents a summary of the Company’s stock options activities for the years ended December 31, 2023, 2024 and 2025.\n\n \n\nSchedule of Stock Options Activities\n\n  \nNumber of Options Outstanding*  \nWeighted\nAverage exercise  \nWeighted average\nremaining\n\ncontractual  \nAggregated \n\n  \nEmployees  \nConsultant  \nTotal  \nprice  \nlife  \nintrinsic value \n\n  \n(in thousands)  \n(in thousands)  \n(in thousands)  \nUS$  \n(in years)  \nRMB in thousands \n\n  \n   \n   \n   \n   \n   \n  \n\nOutstanding at January 1, 2023 \n 7,618  \n 331  \n 7,949  \n 1.7905  \n 4.67  \n 65,572 \n\nReplacement \n (7,545) \n (331) \n (7,876) \n 1.3119  \n -  \n - \n\nGranted \n 528  \n -  \n 528  \n 0.1000  \n -  \n - \n\nForfeited \n (28) \n -  \n (28) \n 8.1954  \n -  \n - \n\nOutstanding at December 31, 2023 \n 573  \n -  \n 573  \n 0.6675  \n 9.73  \n 23,775 \n\nExercisable as of December 31, 2023 \n 295  \n -  \n 295  \n 1.1978  \n 9.48  \n 11,367 \n\n  \n    \n    \n    \n    \n    \n   \n\nOutstanding at January 1, 2024 \n 573  \n -  \n 573  \n 0.6675  \n 9.73  \n 23,775 \n\nReplacement \n (22) \n -  \n (22) \n 7.3437  \n -  \n - \n\nGranted \n 899  \n -  \n 899  \n 0.1000  \n -  \n - \n\nExercised \n (1) \n -  \n (1) \n 0.1000  \n -  \n - \n\nForfeited \n (47) \n -  \n (47) \n 0.9706  \n -  \n - \n\nOutstanding at December 31, 2024 \n 1,402  \n -  \n 1,402  \n 0.1785  \n 9.32  \n 7,990 \n\nExercisable as of December 31, 2024 \n 733  \n -  \n 733  \n 0.2498  \n 9.27  \n 4,147 \n\n  \n    \n    \n    \n    \n    \n   \n\nOutstanding at January 1, 2025 \n 1,402  \n -  \n 1,402  \n 0.1785  \n 9.32  \n 7,990 \n\nGranted \n 323  \n 431  \n 754  \n 0.0486  \n -  \n - \n\nExercised \n (148) \n -  \n (148) \n 0.1000  \n -  \n - \n\nForfeited \n (24) \n -  \n (24) \n 0.1000  \n -  \n - \n\nOutstanding at December 31, 2025 \n 1,553  \n **431**  \n 1,984  \n 0.1358  \n 8.81  \n 10,332 \n\nExercisable as of December 31, 2025 \n 1,076  \n 431  \n 1,507  \n 0.1471  \n 8.86  \n 7,894 \n\n \n\n***\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\nThe\nweighted average grant date fair value of options granted for the years ended December 31, 2023, 2024 and 2025 were RMB42.1761 (US$5.9404),\nRMB15.1110 (US$2.0702) and RMB17.6163 (US$2.5191) per option, respectively.\n\n \n\nF-51\n\n \n\n** **\n\n**18.\nShare-based compensation (Continued)**\n\n \n\n**(d)**\n**Restricted\nshares activities**\n\n \n\nThe\nfollowing table sets forth the summary of restricted share activities for the years ended December 31, 2023, 2024 and 2025:\n\nSchedule of Restricted Share Activities\n\n  \nNumber of Restricted\nShares Granted*  \n\n**Weighted-Average**\n\n**Grant Date**\n\n**Fair Value**\n \n\n  \n(in thousands)  \n(US$) \n\nUnvested as of January 1, 2023 \n 786  \n 4.8435 \n\nReplacement \n 7,876  \n 4.9821 \n\nAwarded \n 703  \n 6.4017 \n\nVested \n (8,938) \n 5.0743 \n\nForfeited \n (97) \n 5.5168 \n\nOutstanding at December 31, 2023 \n 330  \n 5.0233 \n\nUnvested as of January 1, 2024 \n 330  \n 5.0233 \n\nReplacement \n 22  \n 4.2700 \n\nAwarded \n 1,589  \n 1.6553 \n\nVested \n (1,757) \n 1.9938 \n\nForfeited \n (77) \n 4.9078 \n\nOutstanding at December 31, 2024 \n 107  \n 4.6904 \n\nUnvested as of January 1, 2025 \n 107  \n 4.6904 \n\nAwarded \n 1,835  \n 0.9875 \n\nVested \n (1,191) \n 1.3719 \n\nForfeited \n (731) \n 0.8407 \n\nOutstanding at December 31, 2025 \n 20  \n 3.3155 \n\n \n\n***\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\nOn\nMarch 31, 2026, the Group granted 99,000 options to its employees under the 2023 Incentive Plan. The options are granted with an exercise\nprice determined by the Board of Directors, and with terms that immediately vested upon grant.\n\n \n\n**19.\nNet loss per share**\n\n** **\n\nFor\nthe years ended December 31, 2023, 2024 and 2025, the Company had potential ordinary shares, including preferred shares before the QIPO,\nrestricted shares and share options granted. As the Group incurred losses for the years ended December 31, 2023, 2024 and 2025, these\npotential preferred shares, restricted shares and shares options granted were anti-dilutive and excluded from the calculation of diluted\nnet loss per share of the Company.\n\n \n\nConsidering\nthat the holders of preferred shares have no contractual obligation to participate in the Company’s losses, any losses from the\nGroup should not be allocated to preferred shares.\n\n \n\nThe\nfollowing table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2023, 2024 and 2025:\n\n \n\nSchedule\nof Basic and Diluted Net Loss Per Share\n\n  \n   \n   \n  \n\n  \nFor the years ended December 31, \n\n  \n2023  \n2024  \n2025 \n\nNumerator: \n   \n   \n  \n\nNet loss \n (159,590) \n (61,236) \n (17,789)\n\nLess: accretions to preferred shares redemption value \n (762,169) \n -  \n - \n\nNet loss attributable to Cheche’s ordinary shareholders \n (921,759) \n (61,236) \n (17,789)\n\nDenominator: \n    \n    \n   \n\nWeighted average number of ordinary shares outstanding, basic \n 45,415,205  \n 78,043,661  \n 82,581,013 \n\nWeighted average number of ordinary shares outstanding, diluted* \n 45,415,205  \n 78,043,661  \n 82,581,013 \n\nBasic net loss per share attributable to Cheche’s ordinary shareholders \n (20.30) \n (0.78) \n (0.22)\n\nDiluted net loss per share attributable to Cheche’s ordinary shareholders \n (20.30) \n (0.78) \n (0.22)\n\n \n\n*\nFor\nthe years ended December 31, 2023, 2024 and 2025, the Company had potential ordinary shares, including preferred shares, restricted\nshares and share options. On a weighted average basis,24,777,946, nil and nil preferred shares; 523,097, 188,752, and 15,141 restricted\nshares; and 822,952, 944,109 and 1,546,483 share options were excluded from the computation of diluted net loss per ordinary share\nbecause including them would have had an anti-dilutive effect for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\nF-52\n\n \n\n \n\n**20.\nCommitments and Contingencies**\n\n \n\n**(a)**\n**Commitments**\n\n \n\nThe\nGroup leases office space under non-cancelable operating lease agreements, which expire at various dates through December 31, 2025. As\nof December 31, 2024 and 2025, future minimum lease of RMB1.0 million and RMB0.5 million under non-cancelable operating lease agreements\nwere all due within one year.\n\n \n\n**(b)**\n**Litigation**\n\n** **\n\nAs\nof December 31, 2024 and 2025, the Group was not involved in any legal or administrative proceedings that may have a material adverse\nimpact on the Group’s business, financial position results of operations, or cash flows.\n\n \n\n**21.\nRelated Party Balances and Transactions**\n\n** **\n\nThe\ntable below sets major related parties of the Group and their relationships with the Group:\n\n \n\nSchedule\nof Related Parties of the Group and their Relationships\n\n**Entity\nname**\n \n**Relationship with the Group**\n\nFanhua\nGroup\n \nShareholder\nof the Company\n\n \n\n(a)\nThe\nrelated party transactions entered into during the years ended December 31, 2023, 2024 and 2025 were as follows:\n\n \n\nSchedule\nof Related Party Transaction\n\n  \n   \n   \n  \n\n  \nFor the years ended December 31, \n\nSignificant transactions with related party \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nRepayment of borrowings from related party \n   \n   \n  \n\nFanhua Group (i) \n (12,610) \n (10,000) \n - \n\nRepayment of borrowings from related party (i) \n (12,610) \n (10,000) \n - \n\n \n\n(b)\nThe\noutstanding balance due to related parties as of December 31, 2024 and 2025 were as follows:\n\n \n\n  \n   \n  \n\n  \nAs of December 31, \n\nBalances with related party \n2024  \n2025 \n\n  \nRMB  \nRMB \n\nAmounts due to related party \n    \n   \n\nFanhua Group \n 45,811  \n 50,626 \n\nAmounts due to related party \n 45,811  \n 50,626 \n\n \n\n(i)Corporate borrowings\nfrom Fanhua Group\n\n \n\nThe\nGroup issued a convertible loan in the principal amount of RMB130.0 million to Fanhua Group with an annual interest rate of 10% (the\n“Convertible Loan”) on October 26, 2017. The due date of the Convertible Loan is October 26, 2020. Pursuant to the Convertible\nLoan agreement, the entire or any portion of the Convertible Loan can be converted into ordinary shares of the Company. On October 10,\n2019, Fanhua Group converted the RMB80.0 million in the principal amount of the Convertible Loan and its accrued interests of RMB14.1\nmillion into an aggregate of 28,684,255 ordinary shares of the Company, at a conversion price of US$0.4766 per share. On the same date,\nFanhua Group gave up its conversion right for the remaining balance of the Convertible Loan in accordance with a Convertible Loan Payment\nPlan Agreement entered by these two parties (the “Payment Plan Agreement”). Upon the conversion, Fanhua Group held 3.4% equity\ninterest in the Group. In October 2020, the Group entered into a supplemental agreement to the Payment Plan Agreement with Fanhua Group\nto extend the remaining principal balance in the Convertible Loan of RMB50.0 million and corresponding interest of RMB15.0 million as\nadditional principal to October 26, 2022 (the “Corporate borrowings from Fanhua Group”). RMB10 million of the aggregated\nprincipal amount of RMB65 million with an annual interest rate of 10% was due on January 10, 2021 and the remaining of RMB55.0 million\nwas due on October 26, 2022.\n\n \n\nF-53\n\n \n\n** **\n\n**21.\nRelated Party Balances and Transactions (Continued)**\n\n \n\n(i)\nCorporate borrowings from Fanhua Group (Continued)\n\n \n\nIn\n2021, the Group repaid the aggregated principal amount of RMB6.3 million to Fanhua Group. In October 2022, the Group entered into another\nsupplemental agreement to the Payment Plan Agreement with Fanhua Group to extend the remaining balance of the Corporate borrowings from\nFanhua Group to October 26, 2024, which caused the presentation of the borrowing reclassified from current liabilities to non-current\nliabilities. None of the other terms of the Corporate borrowings from Fanhua Group had changed in the supplemental agreement.\n\n \n\nIn\n2023, the Group repaid the aggregated amount of RMB12.6 million to Fanhua Group. As of December 31, 2023, the balance of the Corporate\nborrowings from Fanhua Group was RMB55.3 million, and the remaining balance of the Corporate borrowings from Fanhua Group will be mature\non October 26, 2024, which caused the presentation of the borrowing reclassified from non-current liabilities to current liabilities.\n\n \n\nIn\n2024, the Group repaid the aggregated principal of RMB10.0 million to Fanhua Group. As of December 31, 2024, the balance of the Corporate\nborrowings from Fanhua Group was RMB45.8 million. In August 2024, the Group entered into another supplemental agreement to the Payment\nPlan Agreement with Fanhua Group to extend the remaining balance of the Corporate borrowings from Fanhua Group to October 26, 2026, which\ncaused the presentation of the borrowing reclassified from current liabilities to non-current liabilities. None of the other terms of\nthe Corporate borrowings from Fanhua Group had changed in the supplemental agreement. \n\n \n\nAs\nof December 31, 2025, the balance of the Corporate borrowings from Fanhua Group was RMB50.6 million, and the remaining balance of the\nCorporate borrowings from Fanhua Group will be mature on October 26, 2026, which caused the presentation of the borrowing reclassified\nfrom non-current liabilities to current liabilities.\n\n \n\nThe\nGroup elected fair value option to account for the Convertible Loan and the Corporate borrowings from Fanhua Group, and recognized loss/(gain)\nunder “Changes in fair value of amounts due to related party” and “Fair value changes of amounts due to related party\ndue to own credit risk” in the consolidated statements of operations and comprehensive loss of RMB7.5 million, RMB0.8 million and\nRMB4.5 million and RMB0.4 million, negative RMB0.2 million and RMB0.4 million for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\nThe\nGroup engaged an independent valuation firm to assist the management in its assessment of fair value of the Corporate borrowings at each\nend of reporting periods. The fair value measurements of the Corporate borrowings are based on significant inputs not observable in the\nmarket, and thus represent Level 3 fair value measurements. The Group utilized the following assumptions to estimate the fair value of\nthe Corporate borrowings:\n\n \n\nSchedule\nof Estimate the Fair Value of the Corporate Borrowings\n\n  \nAs of December 31, \n\n  \n2023  \n2024  \n2025 \n\nDiscount rate \n 11.87% \n 9.92% \n 9.20%\n\n \n\nThe\nmovement of Corporate borrowings from Fanhua Group is as follows:\n\nSchedule\nof Corporate Borrowings\n\n  \nCorporate Borrowings \n\n  \nRMB \n\nBalance as of January 1, 2023 \n 59,932 \n\nChange in fair value \n 7,524 \n\nChange in other comprehensive income \n 405 \n\nRepayment of amounts due to related party \n (12,610)\n\nBalance as of December 31, 2023 \n 55,251 \n\nBalance as of January 1, 2024 \n 55,251 \n\nChange in fair value \n 757 \n\nChange in other comprehensive income \n (197)\n\nRepayment of amounts due to related party \n (10,000)\n\nBalance as of December 31, 2024 \n 45,811 \n\nBalance as of January 1, 2025 \n 45,811 \n\nChange in fair value \n 4,461 \n\nChange in other comprehensive income \n 354 \n\nBalance as of December 31, 2025 \n 50,626 \n\n \n\nF-54\n\n \n\n \n\n**22.\nFair Value Measurement**\n\n \n\n*Assets\nand liabilities measured at fair value on a nonrecurring basis*\n\n \n\nAs\nof December 31, 2024 and 2025, the Company had no financial assets or financial liabilities that are measured at fair value on non-recurring\nbasis. The Company measured its non-financial assets, such as its property, equipment and leasehold improvements, intangible assets,\ngoodwill on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable.\n\n \n\n*Assets\nand liabilities measured at fair value on a recurring basis*\n\n \n\nThe\nCompany measured wealth management products, the Corporate borrowings from Fanhua Group and warrant at fair value on a recurring basis.\nAs the Company’s Corporate borrowings from Fanhua Group and warrant are not traded in an active market with readily observable\nprices, the Company uses significant unobservable inputs to measure the fair value of the Corporate borrowings from Fanhua Group and\nwarrant. This instrument is categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall\nfair value measurement. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31,\n2023, 2024 and 2025.\n\n \n\nThe\nfollowing table summarizes the Company’s financial assets and financial liabilities measured and recorded at fair value on recurring\nbasis as of December 31, 2024 and 2025:\n\n**Schedule\nof Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis**\n\n  \nAs of December 31, 2024 \n\n  \nActive Market\n\n(Level 1)  \nObservable Input\n\n(Level 2)  \n\n**Unobservable Input**\n\n**(Level 3)**\n  \nTotal \n\n  \nRMB  \nRMB  \nRMB  \nRMB \n\nAssets: \n   \n   \n   \n  \n\nShort-term investments – wealth management products \n -  \n 3,000  \n -  \n 3,000 \n\n  \n    \n    \n    \n   \n\nLiabilities: \n    \n    \n    \n   \n\nWarrant \n 3,032  \n -  \n -  \n 3,032 \n\nCorporate borrowings from Fanhua Group \n -  \n -  \n 45,811  \n 45,811 \n\n \n\n  \nAs of December 31, 2025 \n\n  \nActive Market\n(Level 1)  \nObservable Input\n(Level 2)  \nUnobservable Input\n(Level 3)  \nTotal \n\n  \nRMB  \nRMB  \nRMB  \nRMB \n\nLiabilities: \n   \n   \n   \n  \n\nWarrant \n 1,512  \n -  \n                -  \n 1,512 \n\nCorporate borrowings from Fanhua Group \n -  \n                -  \n 50,626  \n 50,626 \n\n* *\n\n*Short-term\ninvestments – wealth management products*\n\n* *\n\nThe\nGroup values its financial products investments held in certain bank using quoted prices for securities with similar characteristics\nand other observable inputs, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2.\n\n \n\n*Warrant*\n\n \n\nThe\nfair value of the warrants converted from Prime Impact are measured based on the listed market price of such warrant, a Level 1 measurement.\nThe fair value of the warrants converted from CCT are measured based on Black-Scholes Model, a Level 3 measurement. Management is responsible\nfor determining the fair value and assessing a number of factors. The valuation involves complex and subjective judgements as well as\nthe Company’s best estimates on the valuation date. Key inputs related to the Black-Scholes Model for the valuation of the fair\nvalue of warrants are: expiry date of warrant, fair market value per share as of valuation date, exercise price, risk free rate of interest,\ndividend yield as well as volatility.\n\n \n\n*Corporate\nborrowings from Fanhua Group*\n\n* *\n\nThe\nGroup classified the Corporate borrowings from Fanhua Group as current liability and measured at fair value. The Group classifies the\nvaluation techniques that use fair value of the principle as Level 3 of fair value measurements. Generally, there are no quoted prices\nin active markets and other inputs that are directly or indirectly observable in the marketplace for the Corporate borrowings from Fanhua\nGroup during the period at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method\nas unobservable inputs other than quoted prices in active markets, quoted prices for identical or similar assets or liabilities in inactive\nmarkets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the\nassets or liabilities.\n\n* *\n\nF-55\n\n \n\n* *\n\n**23.\nSubsequent Events**\n\n \n\nThe\nGroup evaluates all events and transactions that occur after December 31, 2025 and up through April 27, 2026, which is the date the audited\nconsolidated financial statements are available to be issued, and concluded that other than the event disclosed, there is no other subsequent\nevent occurred that would require recognition or disclosure in the Group’s consolidated financial statements.\n\n \n\n**24.\nRestricted Net Assets**\n\n** **\n\nRelevant\nPRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance\nwith PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries, VIE and subsidiaries of VIE can only\ndistribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the general reserve\nfund and the statutory surplus fund respectively. The general reserve fund and the statutory surplus fund require that annual appropriations\nof 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\nPRC laws and regulations, the PRC subsidiaries, VIE and subsidiaries of VIE are restricted in their ability to transfer a portion of\ntheir net assets to the Company either in the form of dividends, loans, or advances, which restricted portion amounted to RMB500.6 million\nas of December 31, 2025. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China\nare subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting\nsuch conversion may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign\ncurrency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Even\nthough the Company currently does not require any such dividends, loans, or advances from the PRC subsidiaries, VIE and subsidiaries\nof VIE for working capital and other funding purposes, the Company may in the future require additional cash resources from its PRC subsidiaries,\nVIE and subsidiaries of VIE due to changes in business conditions, to fund future acquisitions and developments, or merely declare and\npay dividends to or distributions to the Company’s shareholders.\n\n \n\nThe\nCompany performed a test on the restricted net assets of its consolidated subsidiaries, VIE and subsidiaries of VIE in accordance with\nSecurities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to the Financial Statements” and concluded\nthat it was applicable for the Company to disclose the condensed financial information for the parent company (Note 25) for the years\nended December 31, 2023, 2024 and 2025. For the purposes of presenting parent only financial information, the Company records its investments\nin its subsidiaries, VIE and subsidiaries of VIE under the equity method of accounting. Such investments are presented on the separate\ncondensed balance sheets of the Company as “Investments in subsidiaries, VIE, and subsidiaries of VIE” and the loss of the\nsubsidiaries, VIE and subsidiaries of VIE is included in “Equity in loss of subsidiaries, VIE and subsidiaries of VIE” in\nthe condensed statements of operations and comprehensive loss.\n\n \n\nF-56\n\n \n\n \n\n**25.\nAdditional Information — Condensed Financial Statements of the Parent Company**\n\n \n\nAs\nmentioned in Note 1, the Company was incorporated in the Cayman Islands in January 2023 and didn’t carry out significant operation\nactivities. CCT is the predecessor of the Company, thus, the Company disclosed combined condensed financial statements of the Company\nand CCT (collectively refer to the “Parent Company” or “Cheche”) as follows:\n\n \n\nThe\ncondensed financial information of the Parent Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04,\nusing the same accounting policies as set out in the Group’s consolidated financial statements, except that the Parent Company\nuses the equity method to account for investments in its subsidiaries, VIE and subsidiaries of VIE.\n\n \n\nThe\nsubsidiaries did not pay any dividend to the Parent Company for the years presented. Certain information and footnote disclosures generally\nincluded in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain\nsupplemental information relating to the operations of the Parent Company, as such, these statements are not the general purpose financial\nstatements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Parent\nCompany.\n\n \n\nThe\nParent Company did not have significant capital and other commitments or guarantees as of December 31, 2024 and 2025.\n\n \n\n**Condensed\nstatements of operations and comprehensive loss:**\n\n**Schedule of Condensed statements of operations and comprehensive loss**\n\n  \n   \n   \n  \n\n  \n\n**For the years ended**\n\n**December 31,**\n \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nOperating expenses: \n    \n    \n   \n\nGeneral and administrative expenses \n (14,272) \n (24,307) \n (15,488)\n\nTotal operating expense \n (14,272) \n (24,307) \n (15,488)\n\nOther expense \n    \n    \n   \n\nInterest income from VIE \n 1,790  \n 2,107  \n 1,815 \n\nShare of loss of subsidiaries, VIE and subsidiaries of VIE \n (149,974) \n (45,658) \n (7,640)\n\nOthers, net \n 3,024  \n 6,856  \n 3,640 \n\nLoss before income tax \n (159,432) \n (61,002) \n (17,673)\n\nIncome tax expense \n (158) \n (234) \n (116)\n\nNet loss \n (159,590) \n (61,236) \n (17,789)\n\nAccretions to preferred shares redemption value \n (762,169) \n -  \n - \n\nNet loss attributable to Cheche’s ordinary shareholders \n (921,759) \n (61,236) \n (17,789)\n\nNet loss \n (159,590) \n (61,236) \n (17,789)\n\nOther comprehensive loss: \n    \n    \n   \n\nForeign currency translation adjustment, net of nil tax \n 1,621  \n 4,739  \n (6,892)\n\nFair value changes of amounts due to related party due to own credit risk \n (405) \n 197  \n (354)\n\nTotal comprehensive loss \n (158,374) \n (56,300) \n (25,035)\n\nAccretions to preferred shares redemption value \n (762,169) \n -  \n - \n\nTotal comprehensive loss to Cheche’s ordinary shareholders \n (920,543) \n (56,300) \n (25,035)\n\n \n\nF-57\n\n \n\n \n\n**25.\nAdditional Information — Condensed Financial Statements of the Parent Company (Continued)**\n\n** **\n\n**Condensed\nbalance sheets:**\n\n**Schedule of Condensed\nBalance Sheets**\n\n  \nAs of December 31,  \nAs of December 31, \n\n  \n2024  \n2025 \n\n  \nRMB  \nRMB \n\nCurrent assets: \n    \n   \n\nCash and cash equivalents \n 58,898  \n 55,394 \n\nShort-term investments \n 32,423  \n - \n\nAmount due from the subsidiaries of the Group \n 879  \n 860 \n\nPrepayments and other current assets \n 4,642  \n 2,912 \n\nTotal current assets \n 96,842  \n 59,166 \n\nNon-current assets: \n    \n   \n\nOther non-current assets \n 4,305  \n 2,477 \n\nAmounts due from the subsidiaries of the Group \n 650,302  \n 659,720 \n\nTotal non-current assets \n 654,607  \n 662,197 \n\nTOTAL ASSETS \n 751,449  \n 721,363 \n\nCurrent liabilities: \n    \n   \n\nAccrued expenses and other current liabilities \n 6,468  \n 4,211 \n\nDeficit in subsidiaries, VIE and subsidiaries of VIE \n 383,182  \n 357,519 \n\nAmounts due to the subsidiaries of the Group \n 3,016  \n 2,949 \n\nTotal current liabilities \n 392,666  \n 364,679 \n\nNon-current liabilities: \n    \n   \n\nWarrant \n 3,032  \n 1,512 \n\nTotal non-current liabilities \n 3,032  \n 1,512 \n\nTotal liabilities \n 395,698  \n 366,191 \n\nShareholders’ equity: \n    \n   \n\nOrdinary shares * \n 6  \n 6 \n\nTreasury stock* \n (1,025) \n (1,025)\n\nAdditional paid-in capital* \n 2,525,741  \n 2,550,197 \n\nAccumulated deficit \n (2,175,057) \n (2,192,846)\n\nAccumulated other comprehensive income/(loss) \n 6,086  \n (1,160)\n\nTotal shareholders’ equity \n 355,751  \n 355,172 \n\nTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY \n 751,449  \n 721,363 \n\n \n\n***\n*Shares\noutstanding for all periods reflect the adjustment for Reverse Recapitalization (Note 3).*\n\n \n\nF-58\n\n \n\n \n\n**25.\nAdditional Information — Condensed Financial Statements of the Parent Company (Continued)**\n\n** **\n\n**Condensed\nstatements of cash flows:**\n\n**Schedule of Condensed statements of cash flows**\n\n  \n   \n   \n  \n\n  \n\n**For the years ended**\n\n**December 31,**\n \n\n  \n2023  \n2024  \n2025 \n\n  \nRMB  \nRMB  \nRMB \n\nNet cash used in operating activities \n (20,885) \n (26,291) \n (33,597)\n\nCash flows from investing activities \n    \n    \n   \n\nCash paid for investments in subsidiaries, VIE and subsidiaries of VIE \n -  \n -  \n - \n\nPlacement of short-term investments \n -  \n (161,739) \n (17,572)\n\nCash received from maturities of short-term investments \n -  \n 129,392  \n 49,202 \n\nNet cash (used in)/generated from investing activities \n -  \n (32,347) \n 31,630 \n\nCash flows from financing activities \n    \n    \n   \n\nProceeds from PIPE financing – Prime Impact Cayman LLC \n 8,609  \n -  \n - \n\nProceeds from PIPE financing – World Dynamic Limited \n 93,436  \n -  \n - \n\nProceeds from PIPE financing – Goldrock Holdings Limited \n 35,863  \n -  \n - \n\nProceeds from exercise of share-based awards \n -  \n -  \n 104 \n\nCash payment for settling a dispute with a security holder \n -  \n (3,055) \n - \n\nNet cash generated from/(used in) financing activities \n 137,908  \n (3,055) \n 104 \n\nEffect of exchange rate changes on cash and cash equivalents and restricted cash \n 1,002  \n 1,558  \n (1,641)\n\nNet increase/(decrease) in cash and cash equivalents and restricted cash \n 118,025  \n (60,135) \n (3,504)\n\nCash and cash equivalents at beginning of the year \n 1,008  \n 119,033  \n 58,898 \n\nCash and cash equivalents and restricted cash at end of the year \n 119,033  \n 58,898  \n 55,394 \n\n* *\n\nThe\nParent Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting\nfor the investments in subsidiaries, VIE and subsidiaries of VIE.\n\n \n\nFor\nthe Parent Company only condensed financial information, the Parent Company records its investments in subsidiaries, VIE and subsidiaries\nof VIE under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments\nare presented on the Condensed balance sheets as “Investments in subsidiaries, VIE and subsidiaries of VIE” and shares in\nthe subsidiaries, VIE and subsidiaries of VIE’s loss are presented as “Equity in loss of subsidiaries, VIE and subsidiaries\nof VIE” on the Condensed statements of operations and comprehensive loss. The Parent Company only condensed financial information\nshould be read in conjunction with the Group’s consolidated financial statements. The Parent Company’s accounting policies\nare the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries, VIE and\nsubsidiaries of VIE.\n\n \n\nF-59"}