Impressive growth data for 2025 from Zhibao;
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.
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