ZBAO · Zhibao Technology Inc. Class A Ordinary Shares

Zhibao Technology Inc. demonstrated strong operational momentum in the first half of fiscal year 2026, with total revenues increasing 41% year-over-year to RMB 206.0 million. This growth was primarily fueled by the company's core digital insurance brokerage services, which contributed an additional RMB 59.1 million in revenue. The company successfully transitioned to profitability at the consolidated level, reporting net income of RMB 0.6 million compared to a net loss in the prior year period. Gross margin expansion to 34.8% from 29.1% reflects improved operational efficiency and the contribution of the newly acquired subsidiary, Zhonglian, which operates at higher profit margins. However, net income attributable to shareholders remained a loss of RMB 4.3 million due to RMB 4.9 million of net income attributable to non-controlling interests from the recent acquisition.

Operationally, the company continues to scale its 2B2C embedded insurance model. B-channel partnerships grew to over 3,100 from 2,000 in the prior year, expanding the end-customer base to over 27 million. This expansion was supported by increased selling expenses, which rose 123% to RMB 41.4 million, primarily for marketing services to drive gross written premiums. The acquisition of a 51% stake in Zhonglian for RMB 25.5 million marks a strategic move to enhance brokerage capabilities, with the transaction partially funded through cash and remaining payments due by October 2026. Despite the revenue growth, operating cash flow turned negative to RMB 12.2 million used, contrasting with positive cash generation in the prior year, while financing activities provided RMB 26.0 million, largely from short-term borrowings and related party loans.