Zhibao Technology Inc. Reports Fiscal Year 2025 Financial Results
Rhea-AI Summary
Zhibao Technology (NASDAQ: ZBAO) reported fiscal year 2025 results for the 12 months ended June 30, 2025. Revenues rose 51% to RMB 276.9 million (US$38.7M), driven by digital insurance brokerage growth. Gross profit was RMB 113.6 million (gross margin 41.0%). GWP increased from RMB 1.19 billion to RMB 1.57 billion. The company recorded a net loss of RMB 62.0 million (US$8.7M)/b) versus net income of RMB 13.3 million a year earlier, and
Positive
- Revenue +51% to RMB 276.9 million
- GWP +32% to RMB 1.57 billion
- Gross profit RMB 113.6 million (41.0% margin)
- Cash increased to RMB 10.3 million
Negative
- Net loss RMB 62.0 million vs net income RMB 13.3 million prior year
- Loss from operations RMB 53.5 million
- Selling expenses +255% to RMB 112.2 million
- MGU service fees down 66% to RMB 3.5 million
News Market Reaction – ZBAO
On the day this news was published, ZBAO declined 2.63%, reflecting a moderate negative market reaction. Argus tracked a peak move of +7.0% during that session. Argus tracked a trough of -3.7% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $881K from the company's valuation, bringing the market cap to $33M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ZBAO fell 9.17% while key peers were mixed: HUIZ -3.76%, TIRX -3.81%, RELI -0.87%, but AIFU +1.08% and GOCO +2.56%. This points to a stock-specific reaction to the earnings release rather than a broad insurance-broker move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 12 | JV launch | Positive | +17.9% | Launch of Zhibao Yingshi JV with first revenues and ambitious targets. |
| Dec 05 | Management changes | Positive | +11.9% | Appointment of COO, CMO, and Chief Actuary promoted from China entities. |
| Nov 21 | Compliance notice | Negative | -0.0% | Nasdaq deficiency letter for delayed Form 20-F filing and compliance plan. |
| Nov 18 | Filing delay | Negative | -15.3% | Update on missing 20-F and cancellation of scheduled earnings call. |
| Nov 14 | Credit ratings | Positive | +2.9% | AM Best B+ financial strength and bbb- issuer rating with stable outlook. |
Historical news flow shows price generally moving in the same direction as the apparent tone of announcements, with positive JV/ratings/management news lifting shares and compliance issues weighing on them.
Over the last several months, Zhibao has combined strategic initiatives with regulatory and reporting challenges. A Nasdaq deficiency letter and 20-F filing delay in November 2025 coincided with negative price reactions, while AM Best “Good” ratings for Zhibao Labuan on Nov 14, 2025, new executive appointments on Dec 5, 2025, and the launch of the Zhibao Yingshi JV on Dec 12, 2025 all saw positive moves. Today’s FY2025 results add detailed context to previously issued growth guidance and JV plans.
Market Pulse Summary
This announcement details FY2025 results showing 51% revenue growth to RMB 276.9M and stable gross margin around 41%, alongside a swing to a RMB 62.0M net loss as selling and administrative expenses rose. Operationally, B channels exceeded 2,400 and end users surpassed 24 million. Investors may watch upcoming calls and events for clarity on expense trends, cash generation, and how JV initiatives and reinsurance capabilities translate into future profitability.
Key Terms
gwp financial
mgu technical
AI-generated analysis. Not financial advice.
Shanghai, China--(Newsfile Corp. - January 13, 2026) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced its fiscal year 2025 financial results for the twelve month period ended June 30, 2025.
Recent Developments
Product Offerings and Collaborations
The Company's subsidiary, Zhibao Labuan Reinsurance Company Limited ("Zhibao Labuan") received its general reinsurance license in July 2025 from its regulator, Labuan Financial Services Authority ("LFSA"). Additionally, Zhibao Labuan was assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of "bbb-" (Good) from AM Best on November 6, 2025.
Zhibao signed an agreement to collaborate on establishing a joint venture company ("Zhongfang JV"), to be formed, with Beijing Zhongfang Hongchuang Technology Company Limited ("Zhongfang"), a wholly-owned subsidiary of the China Disaster Prevention Association ("CDPA"), and Guangzhou Ruiling Intelligent Technology Co. Ltd. ("Ruiling"). Through the Zhongfang JV, the Company agreed with the other two parties to establish a long-term, strategic relationship aimed at jointly developing an innovative "Insurance + Technology + Service" model to deepen cooperation in the field of risk reduction services across China.
In July 2025, the Company entered into a share purchase agreement with two shareholders of Zhonglian Jinan Insurance Brokers Co., Ltd. ("Zhonglian") in which Zhibao's subsidiary, Zhibao China, agreed to acquire an aggregate of
51% of the equity interest in Zhonglian for a total purchase price of RMB 25.5 million (approximately US$3.5 million ) and will be paid in four installments. Zhibao has acquired51% equity ownership of Zhonglian in September 2025, subject to adjustment based on the three additional installment.
Financial and Operational Summary for the Year Ended June 30, 2025
Total revenues in the year ended June 30, 2025 increased by
51% to RMB 276.9 million (US$38.7 million ) from RMB 183.7 million in the same period of 2024.Gross margin was
40.7% and41.0% , respectively, for the fiscal year ended June 30, 2024 and 2025, respectively, and gross profit was RMB 113.6 million (US$ 15.9 million ) for the fiscal year ended June 30, 2025 compared to gross profit of RMB 74.8 million in the same period of 2024.Net loss in the year ended June 30, 2025 was RMB 62.0 million (US
$8.7 million ), compared to net income of RMB 13.3 million in the same period of 2024. Net loss per share ended June 30, 2025 was RMB 1.94 (US$0.27) , compared to net income per share of RMB 0.44 in the prior year. Loss from operations was RMB 53.5 million (US$7.5 million ) in the year ended June 30, 2025, compared to operation income of RMB 10.1 million in the same period of 2024.As of June 30, 2025, the Company had cash and cash equivalents of RMB 10.3 million (US
$1.44 million ), compared to RMB 2.4 million as of June 30, 2024.Our development of B channels showed strong gains over the last several months. As of June 30, 2025, the Company increased the number of B channels that it works with to over 2,400. B channels are distributed amongst diverse market segments and a key component to growing the 2B2C embedded digital insurance model.
Through the business channels, Zhibao experienced a large growth in the number of end customer users that the Company serviced. As of June 30, 2025, the Company reached and served over 24 million end customer users, which Zhibao expects will continue to drive revenue in the coming years.
Management Commentary and Financial/Business Outlook
Mr. Botao Ma, Chief Executive Officer of Zhibao Technology, commented, "For the fiscal year of 2025, we continued to make strong progress in our strategy to grow revenues, diversify our revenue base, and develop and enhance strategic relationships. I am very pleased with our top-line revenue results for fiscal 2025, which saw a
As we continue into fiscal year 2026, we plan on continuing our execution on our strategy of driving the organic growth of our company through continued investments in our sales force and technology platform. Additionally, we believe that we can build on the momentum of our growth and business and financial performance as we move through the next several months. Further, we will seek to capitalize on our pillars of strength which include our innovative business model, market leading digital insurance solutions, advanced technology platform, and our experienced management team with extensive experience in the insurance industry and digital technology markets.
The net loss that we experienced in the fiscal year of 2025 was largely attributable to an increased investment into selling expenses. As part of our next ten year plan, as unveiled during our ten year anniversary celebration, the Company has many growth opportunities ahead, and we believe this investment will help us maintain our rapid growth over the next few years.
Our management team remains committed to maximizing shareholder value and gaining higher returns from our investments through strategic acquisitions, high growth initiatives, long term partnerships and diversifying the Company's revenue base to achieve dependable cash flow streams and attractive company valuations."
Financial Results for the Year Ended June 30, 2025
Revenues
Revenues increased by approximately RMB 93.3 million (US
$13.0 million ), or51% to approximately RMB 276.9 million (US$38.7 million ) for the fiscal year ended June 30, 2025 from approximately RMB 183.7 million for the fiscal year ended June 30, 2024. The increase was primarily driven by an increase of approximately RMB 99.7 million from the digital insurance brokerage, partially offset against a decrease of approximately RMB 6.7 million from the MGU service fees.Revenues from Digital Insurance Brokerage services revenue increased by approximately RMB 99.7 million, or
57% , to approximately RMB 273.8 million (US$38.2 million ) for the fiscal year ended June 30, 2025 from approximately RMB 174.1 million for the fiscal year ended June 30, 2024. The increase was mainly attributable to combined effects of an increase of gross written premiums ("GWP") from approximately RMB 1.19 billion for the fiscal year ended June 30, 2024 to approximately RMB 1.57 billion (US$0.22 billion ) for the fiscal year ended June 30, 2025, where the increase in GWP was primarily due to an increase of the number of insurance policies for property and casualty insurance products; and an increase in commission rate from weighted average rate of approximately15.7% for the fiscal year ended June 30, 2024 to approximately17.8% for the fiscal year ended June 30, 2025.MGU Service Fees segment decreased by approximately RMB 6.7 million, or
66% to approximately RMB 3.5 million (US$0.5 million ) for the fiscal year ended June 30, 2025 from approximately RMB 10.2 million for the fiscal year ended June 30, 2024. The decrease was mainly attributable to decrease in GWP for the MGU services which was due to abrupt closure of business by a reinsurance partner in the high-end medical sector. The GWP for the MGU services was approximately RMB 82 million and RMB 36 million (US$5.0 million ) for the fiscal year ended June 30, 2024 and 2025, respectively.
Cost of Revenues
Cost of revenue increased by approximately
Operating Expenses
Selling expenses increased by approximately RMB 80.6 million, or
255% from approximately RMB 31.6 million for the fiscal year ended June 30, 2024 to approximately RMB 112.2 million (US$15.7 million ) for the fiscal year ended June 30, 2025. The increase was mainly due to an increase of approximately RMB 82.0 million in marketing service fees to gain an increase of GWP which was expected to decrease in next years, partially offset by a decrease of approximately RMB 0.8 million in salary and welfare expenses due to resignation of certain salespersons and a decrease of approximately$0.9 million in entertainment expenses.General and administrative expenses increased by approximately RMB 26.1 million, or
145% from approximately RMB 18.0 million for the fiscal year ended June 30, 2024 to approximately RMB 44.0 million (US$6.1 million ) for the fiscal year ended June 30, 2025. The increase was mainly due to an increase of approximately RMB 12.3 million in provision of credit losses against accounts receivable due to increased aging of accounts receivable, an increase of approximately RMB 9.1 million in provision of allowance against prepayments to a related party, and an increase of approximately RMB 5.3 million in professional service expenses for filing of legal proceedings and services to the listed company.Research and development expenses decreased by approximately RMB 4.2 million, or
28% from approximately RMB 15.1 million for the fiscal year ended June 30, 2024 to approximately RMB 10.9 million (US$1.5 million ) for the fiscal year ended June 30, 2025. The decrease was mainly due to a decrease of approximately RMB 3.9 million in service expenses and a decrease of approximately RMB 0.3 million in outsourcing expenses for the development of our online platform, which was completed in the year of 2024.
Income (Loss) from Operations
As a result of the aforementioned results, loss from operations for the year ended June 30, 2025 was RMB 53.5 million (US
Net Income/ Loss
Net loss for the year ended June 30, 2025 was RMB 62.0 million (US
Balance Sheet
As of June 30, 2025, the Company had cash and cash equivalents of RMB 10.3 million (US
Earnings Conference Call
Zhibao Technology's executive management team will conduct an earnings conference call with the investment community on Thursday January 15th 2026 at 10am Eastern Time. Investors, media and the public may use the below call-in details to participate.
Participant Listening: 1-877-423-9813 or 1-201-689-8573
Call me™: https://callme.viavid.com/viavid/?callme=true&passcode=13750000&h=true&info=company&r=true&B=6
- Participants can use Guest dial-in numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event.
- Call me™ link will be made active 15 minutes prior to scheduled start time.
Skyline Signature Series Investor Webinar
Zhibao's executives will be presenting at the Skyline Signature Series event on Tuesday, February 3 at 12:00 p.m. Eastern time. The Company will deliver an update on its recent developments, review the outlook for the coming year, and allow for a questions and answers segment open to the investor audience. If you are interested in attending the event, please register through the following link:
https://meetings.skylineccg.com/meeting/register?sessionId=1086603563&src=570c158ab3ab3210cf640fa62978cc2a56a575de530d580d85294b18c9ae6039
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/280197
FAQ
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