Zhibao Technology Inc. Reports Unaudited Financial Results for the Six Months Ended December 31, 2025

Rhea-AI Summary

Zhibao Technology (NASDAQ: ZBAO) reported unaudited results for the six months ended December 31, 2025: revenues +41% to RMB 206.0 million ($29.5M), gross profit RMB 71.7M (34.8% margin), and a net income turnaround to RMB 0.6M from a RMB 0.6M loss a year earlier. Expansion included >3,100 B-channels and ~27 million end customers; natural gas premiums exceeded RMB 100M with ~RMB 60M brokerage revenue.

Positive

• Revenue +41% to RMB 206.0 million for H1 FY2026
• Gross margin improved to 34.8% (from 29.1%)
• Net income turnaround to RMB 0.6 million versus loss of RMB 0.6 million
• B-channel network grew to >3,100 and end customers to ~27 million
• Natural gas premiums exceeded RMB 100 million; brokerage revenue ~RMB 60 million

Negative

• Selling expenses rose 123% to RMB 41.4 million
• General & administrative expenses increased 46% to RMB 20.9 million
• Cost of revenue increased 29% to RMB 134.3 million despite margin improvement

Key Figures

Total revenues: RMB 206.0M (US$29.5M) Prior-period revenues: RMB 146.4M Gross profit & margin: RMB 71.7M; 34.8% margin +5 more

8 metrics

Total revenues RMB 206.0M (US$29.5M) Six months ended Dec 31, 2025; up 41% vs same period 2024

Prior-period revenues RMB 146.4M Six months ended Dec 31, 2024 baseline

Gross profit & margin RMB 71.7M; 34.8% margin H1 FY2026 gross margin improved from 29.1% in prior period

Net income RMB 0.6M (US$0.1M) Turnaround from RMB 0.6M net loss in same period 2024

B-channel partners Over 3,100 channels Up from 2,000 B-channels in the same period last year

End customers Over 27M users Up from 20M end customers in the same period last year

Natural gas premiums Over RMB 100M premiums; nearly RMB 60M brokerage Natural gas insurance segment over the past year

Selling expenses RMB 41.4M (US$5.9M) Up 123% from RMB 18.6M in the prior-year period

Market Reality Check

Price: $0.7570 Vol: Volume 90,107 is light at...

low vol

$0.7570 Last Close

Volume Volume 90,107 is light at 0.63x the 20-day average of 143,900 ahead of this earnings release. low

Technical Shares last closed at 0.757, trading below the 200-day MA of 0.97 and well under the 52-week high of 2.14.

Peers on Argus

Pre-news, ZBAO traded below its 200-day MA while key insurance-broker peers like...

1 Down

Pre-news, ZBAO traded below its 200-day MA while key insurance-broker peers like HUIZ (-15.15%), RELI (-9.83%), TIRX (-41.39%) and GOCO (-4.97%) showed broad weakness. Momentum scans flagged peer XHG moving down, with no peers in the same direction as the target, pointing to stock-specific drivers.

Previous Earnings Reports

5 past events · Latest: Jan 13 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	FY2025 results	Neutral	-2.6%	Reported 51% revenue growth but a swing from profit to net loss.
Oct 23	Growth guidance	Positive	+2.0%	Issued FY2025 guidance for 60%–80% revenue growth and profit gains.
May 02	Revised H2 2024	Positive	-0.8%	Restated H2 2024, improving net loss and projecting 70% revenue growth.
Apr 15	H2 2024 results	Positive	+7.9%	Reported 73.7% revenue growth and sharply reduced net loss for H2 2024.
Jan 21	Investor outreach	Positive	-0.7%	Previewed 60% H1 FY2025 revenue growth and new investor events schedule.

Pattern Detected

Earnings and guidance updates have produced mixed reactions, with positive narratives sometimes followed by modest declines.

Recent Company History

Over the past year, Zhibao’s earnings-related news has focused on rapid revenue growth and scaling its 2B2C model. Events included FY2025 guidance for 60%–80% revenue growth, strong H2 2024 revenue gains, and FY2025 results showing 51% revenue growth but a swing to net loss. Some upbeat releases (e.g., H2 2024 results on Apr 15, 2025) saw positive price moves, while others, including revised numbers and FY2025 results, drew muted or negative reactions. Today’s first-half FY2026 profitability update fits into this growth-plus-execution narrative.

Historical Comparison

+1.2% avg move · Earnings-related headlines for ZBAO have historically led to modest average moves of 1.17%, with rea...

earnings

+1.2%

Average Historical Move earnings

Earnings-related headlines for ZBAO have historically led to modest average moves of 1.17%, with reactions split between gains and small pullbacks.

Earnings updates show a path from high-growth H2 2024, through FY2025 guidance and full-year results, to today’s first-half FY2026 return to profitability.

Market Pulse Summary

This announcement highlights rapid top-line growth and an early return to profitability for H1 FY202...

Analysis

This announcement highlights rapid top-line growth and an early return to profitability for H1 FY2026. Revenues rose 41% to RMB 206.0M, gross margin improved to 34.8%, and net income reached RMB 0.6M. At the same time, selling expenses climbed sharply and the share price sat below its 200-day MA and far from the 52-week high. Investors may watch future updates on sales efficiency, margin trends, and B-channel expansion durability.

Key Terms

2b2c, mgu, gwp

3 terms

2b2c technical

"the sustained rapid growth of our 2B2C digital embedded insurance model"

2b2c (also written B2B2C) describes a business model where a company sells products or services to another business, which then delivers them to the end consumer — like a maker supplying goods to a retailer that sells to shoppers. Investors care because this split relationship affects revenue sources, profit margins, customer reach and data access: growth can scale through partners but also depends on those partners’ performance and margin-sharing.

mgu financial

"increase of approximately RMB 0.5 million from our MGU service fees"

A Managing General Underwriter (MGU) is a specialist firm given authority by an insurance company to create, price and issue insurance policies on its behalf. For investors, an MGU can speed growth and improve profit margins by acting like a trusted local franchise that brings underwriting expertise, customer access and efficiency without the insurer adding as much staff or capital, but it also concentrates risk through that third party.

gwp financial

"marketing service fees to gain an increase of GWP , an increase of approximately"

Gross written premium (GWP) is the total amount of insurance premiums an insurer has agreed to collect from policyholders before any deductions, cancellations or reinsurance costs. For investors, GWP is like a store’s total receipts — it shows how much business the company is bringing in and signals growth or market share, but it does not reflect the money actually earned or the profitability after claims and expenses.

AI-generated analysis. Not financial advice.

Shanghai, China--(Newsfile Corp. - March 31, 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 unaudited financial results for the six months ended December 31, 2025 (the first half of fiscal year 2026).

First Half of Fiscal Year 2026 Financial Highlights

• Total Revenues: Increased by 41% to RMB 206.0 million ($29.5 million), up from RMB 146.4 million in the same period of 2024.
• Gross Profit: Rose to RMB 71.7 million ($10.3 million), representing a 34.8% gross margin, a significant improvement compared to 29.1% in the same period of 2024.
• Net Income: Achieved a successful turnaround with net income of RMB 0.6 million ($0.1 million), compared to a net loss of RMB 0.6 million in the same period of 2024.

Operational and Strategic Highlights

• Continued B-Channel Expansion: As of the date of this report, Zhibao has collaborated with more than 3,100 B-channels, compared to 2,000 in the same period last year. These channels have allowed the Company to reach and serve a pool of more than 27 million end customers, compared to 20 million in the same period last year.
• Diversified Portfolio: The Company's digital insurance brokerage platform now supports over 40 proprietary digital insurance solutions addressing sectors including travel, sports, logistics, utilities, and e-commerce.
• Natural Gas Sector Leadership: Leveraging its 2B2C embedded model, the Company's natural gas insurance segment surpassed RMB 100 million in total premiums over the past year, with brokerage revenue reaching nearly RMB 60 million.

Management Commentary

"Our results for the first half of fiscal 2026 are indicative of the sustained rapid growth of our 2B2C digital embedded insurance model," said Mr. Botao Ma, Chairman and Chief Executive Officer of Zhibao. "The 41% revenue increase and our return to profitability reflect the successful execution of our growth strategies. I am pleased to see our investment in sales expenses to accelerate our onboard of new B channels and their end users has begun to show results, with the number of B channels reaching over 3,100 and the number of end users reaching over 27 million."

"The results announced today reflect a growing familiarity and acceptance of our business model," said Yuanwen Xia, Chief Financial Officer of Zhibao. We intend to continue growing our revenues by making targeted and strategic investments in our sales teams. As we continue to scale, this will allow us to make improvements to our gross and net income figures in coming years."

Financial Results for the Six Months Ended December 31, 2025

Revenues

Our revenues increased by approximately RMB 59.6 million (US$8.5 million), or 41% to approximately RMB 206.0 million (US$29.5 million) for the six months ended December 31, 2025 from approximately RMB 146.4 million for the six months ended December 31, 2024. The increase was primarily driven by an increase of approximately RMB 59.1 million from the digital insurance brokerage, with an increase of approximately RMB 0.5 million from our MGU service fees, as more fully discussed below.

Cost of revenues

Our cost of revenue increased by approximately 29% from RMB 103.8 million for the six months ended December 31, 2024 to approximately RMB 134.3 million (US$19.2 million) for the six months ended December 31, 2025. The increase of cost of revenues was in line with the increase of revenues. However the increase rate of cost of revenues was lower than the increase rate of revenue which was primarily because Zhonglian, the newly acquired subsidiary, earned a higher profit margin in insurance brokerage services than our existing subsidiaries.

Gross margin

As a result of foregoing, our gross margin was 29.1% and 34.8%, respectively, for the six months ended December 31, 2024 and 2025, respectively.

Selling expenses

Our selling expenses increased by approximately RMB 22.9 million, or 123% from approximately RMB 18.6 million for the six months ended December 31, 2024 to approximately RMB 41.4 million (US$5.9 million) for the six months ended December 31, 2025. The increase was mainly due to an increase of approximately RMB 20.7 million in marketing service fees to gain an increase of GWP , an increase of approximately RMB 1.4 million in salary and welfare expenses and an increase of approximately RMB 0.5 million in entertainment expenses.

General and administrative expenses

Our general and administrative expenses increased by approximately RMB 6.6 million, or 46% from approximately RMB 14.3 million for the six months ended December 31, 2024 to approximately RMB 20.9 million (US$3.0 million) for the six months ended December 31, 2025. The increase was mainly due to an increase of approximately RMB 7.1 million in professional service expenses and an increase of approximately RMB 3.7 million in salary and welfare expenses.

Research and development expenses

Our research and development expenses decreased by approximately RMB 1.2 million, or 21% from approximately RMB 5.9 million for the six months ended December 31, 2024 to approximately RMB 4.7 million (US$0.7 million) for the six months ended December 31, 2025. The decrease was mainly due to a decrease in outsourcing expenses for the development of our online platform.

Net (loss) income

As a result of the foregoing, we had a net loss of approximately RMB 0.6 million and a net income of approximately RMB 0.6 million for the six months ended December 31, 2024 and 2025, respectively.

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.

Use of Non-GAAP Financial Measure

In addition to consolidated U.S. GAAP financial measures, we consistently evaluate our use of and calculation of the non-GAAP financial measures, "Adjusted EBITDA".

Adjusted EBITDA is a financial measure defined as our EBITDA, adjusted to eliminate the effects of certain non-recurring items, that do not reflect our ongoing strategic business operations. EBITDA is computed as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is EBITDA further adjusted for certain income and expenses, which management believes results in a performance measurement that represents a key indicator of the Company's core business operations of digital insurance brokerage services. The adjustments currently include gain from early termination of leases, loss from settlement of convertible notes, and changes in fair value of derivative liabilities.

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric for historical periods are presented in the table below:

		For the Six Months Ended December 31,
		2024			2025			2025
		RMB			RMB			RMB
Reconciliation of non-GAAP (loss) income from operations:
Net (Loss) Income		(644,605	)		554,515			79,297
Depreciation and amortization expenses		711,355			846,488			121,046
Income tax (benefits) expenses		1,091,247			2,028,478			290,068
Interest expenses		1,605,974			2,073,804			296,550
EBITDA		2,763,971			5,503,285			786,961
Adjustments:
Gain from early termination of right-of-use assets		(53,714	)		-			-
Loss on extinguishment of convertible notes		4,438,430			592,990			84,796
Changes in fair value of derivative liabilities		(722,631	)		(62,938	)		(9,000	)
Changes in fair value of warrant liabilities		(1,430,663	)		1,288,129			184,200
Adjusted EBITDA		4,995,393			7,321,466			1,046,957

 

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Zhibao's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's filings with the SEC. A number of additional factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Zhibao's goal and strategies; Zhibao's expansion plans; Zhibao's future business development, financial condition and results of operations; Zhibao's expectations regarding demand for, and market acceptance of, its solutions and services; Zhibao's expectations regarding keeping and strengthening its relationships with insurance companies, financial institutions, and insured parties; general economic and business conditions; and assumptions underlying or related to any of the foregoing. All information provided in this press release and in the attachments is as of the date of this press release, and Zhibao does not undertake any 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 required under applicable law. Although Zhibao 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 Zhibao 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 statement 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.

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/290633

FAQ

What were Zhibao (ZBAO) revenues for the six months ended December 31, 2025?

Zhibao reported RMB 206.0 million in revenues for the six months ended December 31, 2025. According to the company, this represents a 41% increase from RMB 146.4 million in the same period of 2024, driven mainly by digital insurance brokerage.

How did Zhibao's profitability change in H1 FY2026 for ZBAO?

Zhibao achieved a net income of RMB 0.6 million for the six months ended December 31, 2025. According to the company, this marks a turnaround from a net loss of RMB 0.6 million a year earlier, reflecting higher revenues and margin improvement.

What drove Zhibao's gross margin improvement for ZBAO in H1 FY2026?

Gross margin rose to 34.8% from 29.1% year-over-year for the six months ended December 31, 2025. According to the company, the improvement was partly due to the acquisition of Zhonglian, which earned higher brokerage margins than prior subsidiaries.

How large is Zhibao's distribution reach as of December 31, 2025 (ZBAO)?

Zhibao expanded its B-channel network to over 3,100 channels and reached approximately 27 million end customers as of December 31, 2025. According to the company, channel growth supported revenue gains and customer penetration versus prior year.

What is Zhibao's exposure to the natural gas insurance segment (ZBAO)?

Zhibao's natural gas segment generated over RMB 100 million in total premiums with nearly RMB 60 million in brokerage revenue over the past year. According to the company, this reflects strength in its 2B2C embedded insurance model.

Why did Zhibao's selling and G&A expenses increase for H1 FY2026 (ZBAO)?

Selling expenses rose by 123% to RMB 41.4 million and G&A increased 46% to RMB 20.9 million for the six months ended December 31, 2025. According to the company, higher marketing, professional services, and personnel costs drove these increases.