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Zhibao Technology Announces Receipt of Nasdaq Deficiency Letter

(Negative)
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Zhibao Technology (NASDAQ: ZBAO) received a Nasdaq deficiency letter stating its Class A ordinary shares failed to meet Nasdaq Rule 5550(a)(2) minimum bid price of $1.00, as the closing bid stayed below this level from May 27, 2026 to July 9, 2026.

The notice does not immediately affect listing or trading. Under Nasdaq Rule 5810(c)(3)(A), Zhibao has 180 days, until January 6, 2027, to regain compliance by maintaining a closing bid of at least $1.00 for 10 consecutive business days, with a potential additional 180-day period if other conditions are met.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

  • Deficiency letter has no immediate impact on ZBAO listing or trading
  • Company has an initial 180-day window, until January 6, 2027, to regain compliance
  • Potential for an additional 180 days if other Nasdaq listing standards are satisfied

Negative

  • Shares traded below $1.00 minimum bid from May 27 to July 9, 2026
  • ZBAO faces potential Nasdaq delisting if compliance is not regained by the allowed period
  • Company states there is no assurance it will regain or maintain compliance

Market Context

Placed against the stock’s roughly -78.58% distance from its 52-week high and a low short-interest p...
Analysis

Placed against the stock’s roughly -78.58% distance from its 52-week high and a low short-interest profile, this Nasdaq notice adds a concrete listing overhang. Prior headlines have triggered sharp, sometimes counterintuitive moves; investors may focus on how management addresses compliance without additional governance disruptions.

Key Figures

Non-compliance period: May 27, 2026 to July 9, 2026 Minimum bid price: $1.00 per share Initial compliance window: 180 calendar days +3 more
6 metrics
Non-compliance period May 27, 2026 to July 9, 2026 Closing bid below minimum bid price requirement
Minimum bid price $1.00 per share Nasdaq Rule 5550(a)(2) threshold
Initial compliance window 180 calendar days Period to regain Nasdaq minimum bid compliance
Compliance deadline January 6, 2027 End of initial compliance period
Required trading duration 10 consecutive business days Days closing bid must meet minimum price
Additional window 180 calendar days Potential second compliance period if criteria met

Historical Context

5 past events · Latest: Jul 08 (Negative)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 08 Commercial partnership Negative -33.0% Announcement of embedded insurance cooperation reaching over 20 million potential users.
May 15 Board/management change Positive +9.3% Appointment of seasoned industry executive as independent director at reinsurance subsidiary.
Apr 07 Event scheduling Negative -2.4% Scheduling of 1H2026 earnings call and multiple investor outreach events.
Mar 31 Earnings report Negative -0.8% Report of strong revenue growth and a swing to modest profitability for 1H FY2026.
Mar 17 Product expansion Negative -4.0% Disclosure of scale metrics for sports insurance platform and partner network expansion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Zhibao headlines have produced mixed one-day reactions, including a sharp selloff after a major cooperation announcement.

Key Terms

minimum bid price requirement, nasdaq capital market, market value of publicly held shares requirement
3 terms
minimum bid price requirement regulatory
"not in compliance with Nasdaq Rule 5550(a)(2) (the "Minimum Bid Price Requirement")"
A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.
nasdaq capital market regulatory
"standards for initial listing on the Nasdaq Capital Market, with the exception"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
market value of publicly held shares requirement regulatory
"provided that ... it meets the applicable market value of publicly held shares requirement"
A regulatory threshold that requires a company to have a minimum market value of shares held by public investors (public float) to qualify for listing or to remain on a stock exchange. It matters to investors because it affects a stock's eligibility for trading venues and indexes and signals liquidity and public ownership levels—similar to a minimum crowd size needed for an event to run smoothly, it influences how easily shares can be bought or sold.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Shanghai, China--(Newsfile Corp. - July 15, 2026) - Zhibao Technology Inc. (NASDAQ: ZBAO) (the "Company"), today announced that it received a written notice (the "Letter") from the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is not in compliance with Nasdaq Rule 5550(a)(2) (the "Minimum Bid Price Requirement"), as the closing bid price for the Company's Class A ordinary shares had been below $1.00 per share for the period from May 27, 2026 to July 9, 2026. The Letter is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Company's Class A ordinary shares.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days to regain compliance, or until January 6, 2027 (the "Compliance Period"), to regain compliance with the Minimum Bid Price Requirement. To regain compliance with the Minimum Bid Price Requirement, the closing bid price of the Company's Class A ordinary shares must be at least $1.00 per share for a minimum of 10 consecutive business days at any time prior to the expiration of Compliance Period. If the Company regains compliance with the Minimum Bid Price Requirement, Nasdaq will provide the Company with written confirmation and will close the matter.

If the Company does not regain compliance with the Minimum Bid Price Requirement during the Compliance Period, the Company may be eligible for an additional 180 calendar day compliance period, provided that on the 180th day of the Compliance Period it meets the applicable market value of publicly held shares requirement for continued listing and all other applicable standards for initial listing on the Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period.

If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the Compliance Period (as may be extended), the Company's Class A ordinary shares will be subject to delisting.

The Company is monitoring the closing bid price of its Class A ordinary shares and evaluating options to regain compliance with the Minimum Bid Price Requirement. However, there can be no assurance that the Company will be able to regain or maintain compliance with the Minimum Bid Price Requirement.

About Zhibao Technology Inc.

Zhibao Technology Inc. (NASDAQ: ZBAO) is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS (Platform as a Service).

Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of our annual reports on Form 20-F (as amended) and registration statements on Form F-1 (as amended) that have been filed or will be filed from time to time with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statements and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

Investor Relations Contact

Zhibao Technology Inc.
Investor Relations
Office Email: ir@zhibao-tech.com

Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305260

FAQ

What Nasdaq rule did Zhibao Technology (NASDAQ: ZBAO) violate in July 2026?

Zhibao Technology was notified it is not in compliance with Nasdaq Rule 5550(a)(2), the Minimum Bid Price Requirement. According to the company, its Class A shares closed below $1.00 from May 27, 2026 to July 9, 2026, triggering the deficiency notice.

Does the Nasdaq deficiency letter mean Zhibao Technology (ZBAO) will be delisted immediately?

No, the deficiency letter does not mean immediate delisting. According to Zhibao Technology, the notice is only a notification of deficiency and has no current effect on the listing or trading of its Class A ordinary shares on Nasdaq.

How long does Zhibao Technology have to regain Nasdaq minimum bid price compliance?

Zhibao Technology has 180 calendar days, until January 6, 2027, to regain compliance. According to the company, it must achieve a closing bid of at least $1.00 for a minimum of 10 consecutive business days within this compliance period.

Can Zhibao Technology (NASDAQ: ZBAO) get more time to fix its Nasdaq bid price deficiency?

Yes, Zhibao Technology may receive an additional 180-day compliance period. According to the company, this depends on meeting Nasdaq’s market value of publicly held shares and all other initial listing standards, except the minimum bid price, and giving written notice of its intent to cure.

What happens if Zhibao Technology fails to meet the Nasdaq minimum bid price requirement?

If Zhibao Technology does not regain compliance by the end of the allowed period, its Class A ordinary shares will be subject to delisting. According to the company, this applies after the initial 180 days and any granted extension have expired without compliance.

What is Zhibao Technology doing to address its Nasdaq minimum bid price issue?

Zhibao Technology is monitoring the closing bid price and evaluating options to regain compliance. According to the company, there can be no assurance it will regain or maintain compliance with the Minimum Bid Price Requirement despite these efforts.