Zhibao Technology Reports 16% Revenue Growth to RMB 319.9 Million and Narrows Annual Net Loss by 95.3%

Zhibao Technology Inc. (NASDAQ:ZBAO), a China-based digital insurance brokerage provider, reported a 16% increase in revenue to RMB 319.9 million (US$47.1 million) for the fiscal year ended June 30, 2026, compared with RMB 276.9 million in the previous year.

The company, which filed its annual report on Form 20-F with the US Securities and Exchange Commission, said revenue met its previously issued preliminary guidance. Growth was primarily driven by its digital insurance brokerage operations, which generated RMB 316.8 million and accounted for approximately 99% of total revenue.

Zhibao reported operating income of RMB 9.2 million (US$1.36 million), compared with an operating loss of RMB 53.5 million in fiscal 2025.

Operating Expenses Decline as Net Loss Narrows

Total operating expenses decreased to RMB 114.4 million (US$16.8 million), from RMB 167.1 million a year earlier.

Selling and marketing expenses fell 44.6% to RMB 62.1 million, primarily reflecting reduced marketing expenditure following higher spending on business expansion in the previous year.

General and administrative expenses declined 2.5% to RMB 42.9 million, while research and development expenses decreased to RMB 9.6 million from RMB 10.9 million.

The company reported a 95.3% reduction in its annual net loss to RMB 2.9 million (approximately US$0.38 million), compared with RMB 62.0 million in fiscal 2025.

Basic and diluted net loss per share was RMB 3.96 (US$0.58), adjusted retrospectively for the company’s 1-for-50 reverse share split completed in October 2026.

As of June 30, Zhibao had established more than 3,200 business distribution channels and served over 28 million end customers.

$154.7 Million Bitcoin Financing Completed After Year-End

Zhibao also reported the completion of a private placement financing valued at US$154.7 million in August 2026.

The transaction involved the issuance of 442 million units before the company’s reverse share split, with consideration paid through the transfer of 2,380 Bitcoins to Zhibao’s designated digital wallet.

The remaining units under the agreement were delivered on October 30, following shareholder approval.

Separately, the company issued senior secured convertible notes to institutional investor 3i, LP between April and September 2026, with an aggregate principal amount of approximately US$4.9 million in exchange for US$4.4 million in cash consideration.

Zhibao completed a 1-for-50 reverse share split on October 12, 2026, following shareholder approval in September. The transaction was undertaken primarily to address Nasdaq’s minimum bid price requirement.

Malaysian Acquisition and Reinsurance Expansion

On September 28, 2026, Zhibao entered into a definitive agreement to acquire Malaysia-based NEXSYS TECH SDN. BHD.

The proposed acquisition involves an initial cash payment of US$1, together with contingent consideration of up to US$7.5 million in Class A ordinary shares, dependent on future net profit targets through December 31, 2028.

The company said the acquisition is intended to expand its international operations and geographic presence.

Zhibao also highlighted its Malaysian reinsurance subsidiary, Zhibao Labuan Reinsurance Company Limited, which received full regulatory approval and began operations on June 1, 2025.

The business provides underwriting capacity and capital support for the company’s insurance brokerage and managing general underwriter activities.

Liquidity and Going Concern Position

Despite the improvement in operating results, Zhibao reported negative working capital of RMB 6.9 million (US$1.0 million) and an accumulated deficit of RMB 196.5 million (US$29.0 million) as of June 30, 2026.

The company stated that these conditions raised substantial doubt about its ability to continue as a going concern before taking into account financing transactions completed after the reporting period.

Management said it is addressing liquidity requirements through negotiations to extend bank loan maturities, operating cost reductions, workforce adjustments and additional capital raising activities.

The US$154.7 million Bitcoin-funded private placement was completed after the fiscal year-end and therefore was not reflected in the June 30 balance sheet.

Zhibao continues to operate its digital insurance brokerage business across sectors including travel, logistics, utilities, sports and e-commerce, while pursuing international expansion through its reinsurance operations and proposed acquisition.

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