Zhibao Technology (ZBAO) Registration filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with primary business through PRC subsidiaries, focusing on digital insurance brokerage and MGU services in China.

• Pioneered the 2B2C (to-business-to-customer) embedded insurance model, embedding proprietary insurance solutions into business channels to reach end customers.

• Launched the first digital insurance brokerage platform in China in 2020, powered by a proprietary PaaS platform.

• As of the filing, has over 1,500 B channel partners and more than 10 million end customers, with partnerships with over 100 insurance companies.

• Revenue streams include insurance brokerage commissions (mainly 10–35% for property & casualty/health, 50–80% for life) and MGU service fees (average 15% of gross written premium).

Financial performance and metrics

• FY2023 revenue: RMB 142.1 million (US$19.6 million), up 31% from FY2022; net loss of RMB 43.1 million (US$5.9 million) due to RMB 54.7 million (US$7.5 million) in share-based compensation.

• Excluding one-off expenses, adjusted net income for FY2023 would have been RMB 11.6 million (US$1.6 million).

• Six months ended Dec 31, 2023: revenue RMB 84.3 million (US$11.9 million), net loss RMB 8.5 million (US$1.2 million).

• Gross margin stable at 41–44% for FY2022–2023; cash and equivalents as of Dec 31, 2023: RMB 5.5 million (US$0.8 million).

• Accounts receivable turnover increased to 188 days as of Dec 31, 2023.

Use of proceeds and capital allocation

• No proceeds from resale of shares by the selling shareholder; proceeds from any cash exercise of warrants will be used for working capital and general corporate purposes.

• No dividends anticipated in the foreseeable future; earnings to be reinvested in business expansion.