Zhibao Technology (ZBAO) H1 2025 earnings summary

Executive summary

• Achieved 73.7% year-over-year revenue growth to RMB 146.4 million ($20.1 million) for the six months ended December 31, 2024, driven by expansion in digital insurance brokerage services.

• Net loss narrowed significantly to RMB 1.5 million ($0.2 million) from RMB 8.5 million in the prior year period; non-GAAP adjusted net income reached RMB 5.0 million ($0.7 million).

• Expanded B channel partnerships from 1,500 to over 2,000 and served more than 20 million end customer users.

Financial highlights

• Insurance brokerage service fees rose to RMB 145.0 million, offsetting a decline in MGU service fees to RMB 1.8 million due to a reinsurance partner's business closure.

• Cost of revenues increased to RMB 103.8 million, in line with revenue growth.

• Selling and marketing expenses decreased to RMB 18.6 million, while general and administrative expenses increased to RMB 14.3 million, mainly due to higher professional service costs post-Nasdaq listing.

• Research and development expenses decreased to RMB 5.9 million due to lower headcount.

• Cash and cash equivalents rose to RMB 28.1 million ($3.9 million) as of December 31, 2024.

Outlook and guidance

• Management expects continued organic growth through investments in sales force and technology, aiming to sustain recent growth rates in the second half of fiscal 2025.

• Focus remains on strategic acquisitions, diversifying revenue, and forming long-term partnerships to drive top and bottom line results.