ZBAO · Zhibao Technology Inc. Class A Ordinary Shares

Zhibao Technology Inc., a leading Chinese InsurTech with its pioneering 2B2C digital embedded insurance model, delivered strong revenue growth of 41% to RMB 206.0 million for the six months ended December 31, 2025, driven primarily by insurance brokerage fees which comprised 99% of total revenues at RMB 204.0 million, up from RMB 145.0 million prior year. This reflects increased transaction volume from a larger customer base and more product selections on their proprietary PaaS platform. Gross profit more than doubled to RMB 71.7 million, with gross margin implicitly improving, while operating income rose modestly to RMB 4.6 million amid elevated selling and marketing expenses (RMB 41.4 million) tied to B channel expansion efforts. The swing to net income of RMB 0.6 million was supported by other income and reduced losses on convertible notes extinguishment, though offset by higher interest expense and warrant liability fair value changes. Non-controlling interests from the recent acquisition captured RMB 4.9 million of net income, resulting in a net loss attributable to shareholders of RMB 4.3 million. Balance sheet expansion to RMB 283 million total assets reflects the Zhonglian acquisition (51% stake for RMB 25.5 million), adding goodwill RMB 24.3 million and non-controlling interests RMB 29.4 million, alongside higher intangibles and receivables. Cash position strengthened to RMB 27.5 million, with financing activities providing RMB 26.0 million net inflows despite negative operating cash flow of RMB 12.2 million. Strategic highlights include partnerships with over 3,100 B channels across industries like travel and e-commerce, serving 27 million end customers, and collaborations with 100+ insurers. The acquisition bolsters brokerage capabilities, while ongoing convertible note settlements via shares (53k Class A shares issued) manage debt to a low carrying amount of RMB 1.4 million principal. Management emphasizes expanding B channels, enhancing 2C conversions via personalized services, and leveraging AI/big data for 40+ proprietary solutions, positioning for sustained growth in China's nascent embedded insurance market.