Zhibao Technology (ZBAO) H2 2025 earnings summary

Executive summary

• Achieved 51% year-over-year revenue growth to RMB 276.9 million (US$38.7 million) for FY2025, driven by digital insurance brokerage expansion and increased B channel partnerships.

• Net loss of RMB 62.0 million (US$8.7 million) compared to net income of RMB 13.3 million in FY2024, primarily due to increased selling expenses and investments in growth.

• Expanded end customer reach to over 24 million users and increased B channel partners to over 2,400, supporting the 2B2C embedded digital insurance model.

• Strategic acquisitions and partnerships, including a 51% stake in Zhonglian and a joint venture with Zhongfang and Ruiling, to deepen risk reduction services and diversify revenue.

Financial highlights

• Digital insurance brokerage revenue rose 57% to RMB 273.8 million, driven by higher gross written premiums (GWP) and increased commission rates.

• MGU service fees declined 66% to RMB 3.5 million due to the abrupt closure of a reinsurance partner in the high-end medical sector.

• Gross margin remained stable at 41.0% (vs. 40.7% in FY2024); gross profit was RMB 113.5 million.

• Cost of revenue increased 50% to RMB 163.4 million, in line with revenue growth.

• Cash and cash equivalents rose to RMB 10.3 million as of June 30, 2025, up from RMB 2.4 million a year earlier.

Outlook and guidance

• Management expects continued revenue growth, driven by investments in sales force and technology platform, and ongoing expansion of B channels and end customer base.

• Anticipates that increased selling expenses will support accelerated GWP growth in coming years.

• Focus remains on organic growth, strategic acquisitions, and leveraging innovative business models for long-term value.