Undervalued by the market, why is Che Che Technology a high-quality asset with great potential among Chinese concept stocks?

I've been looking back at some posts from late 2020 recently.

Back then, many Xueqiu users were discussing one thing: Is anyone still looking at Chinese concept stocks?

At that point, Chinese tech stocks had already weathered a regulatory storm, with several leading companies' share prices down 70-80%, and foreign capital accelerating its withdrawal. The market sentiment had only one word: flee.

But right around that time, a group of people were quietly building positions.

Not because they weren't afraid, but because they were looking at something else: Are these companies' businesses still running?

What happened next is known to all. Those who built positions during the most pessimistic period made real money in the subsequent recovery rally.

What I want to say isn't "history repeats itself."

What I want to say is that a pattern has been repeatedly validated in investing:

The best buying point often appears when no one is willing to talk about the topic.

Now, Chinese concept stocks are back at that stage.

Flipping through various financial communities, the volume of discussion related to Chinese concept stocks has dropped by more than an order of magnitude compared to two years ago.

This quietness is actually a signal.

Undervaluation in the market has two sources.

One is deteriorating fundamentals; people see the company getting worse, so they don't buy. This kind of undervaluation is real and not worth chasing.

The other is sentiment-driven; because the entire sector is being abandoned, the good companies within it are sold off along with it. This kind of undervaluation is temporary and is where the opportunity lies.

Many companies among current Chinese concept stocks are in the second situation.

The question is, in this neglected sector, how do you find the one truly worth buying?

I've spent a lot of time recently researching a company called Cheche Technology.

What it does is easily underestimated.

It is a digital infrastructure provider for new energy vehicle (NEV) insurance.

The value of an infrastructure company is reflected in every day after its system is embedded. The more stable the system, the more data accumulates, and the more accurate the models, the more central its position in the industry chain becomes.

Cheche Technology belongs to the latter category.

It embeds its insurance transaction system directly into the underlying app layer of 18 automakers including Tesla, XPeng, Li Auto, and Xiaomi. It's not an external link redirect, but a system-level deep integration.

This means car owners complete insurance purchases, renewals, and claims within the automaker's app—all powered by Cheche Technology's system underneath.

Every policy, every renewal, every claim record adds to its database.

More data fed into the AI pricing model makes the model increasingly accurate.

The more accurate the model, the more insurers rely on it for NEV insurance pricing.

The more insurers rely on it, the less reason automakers have to replace it.

This is a slowly tightening flywheel, not a one-time transaction.

Its current business growth rate looks like this.

For the full year 2025, 2 million new energy vehicle insurance policies, an 85.3% growth rate. Premiums of 6.3 billion yuan, a 91% growth rate. This is the result of three consecutive years of growth exceeding 100%.

Moreover, it achieved full-year profitability in 2025.

This is important.

Many tech companies tell stories, and on the day they become profitable, the story becomes reality, and the valuation logic shifts accordingly.

Before profitability, the market asks, "When will you make money?" After profitability, the market asks, "How much can you make?"

The valuation frameworks corresponding to these two questions are completely different.

Cheche Technology has already crossed this threshold.

When sector sentiment warms up, when financial reports continue to verify profitability, when institutions start re-evaluating it using the framework of "insurance tech infrastructure" rather than "insurance intermediary"—the price will move.

Sometimes, where no one is talking, where no one is paying attention, is where gold might be buried.