Zhibao Technology (ZBAO) H2 2024 earnings summary

Executive summary

• Achieved strong revenue growth of 29% year-over-year to RMB 183.7 million (US $25.3 million) for the fiscal year ended June 30, 2024, driven by digital insurance brokerage expansion.

• Returned to profitability with net income of RMB 13.3 million, reversing a net loss of RMB 43.1 million in the prior year.

• Closed an IPO in April 2024, raising $6 million, and issued additional shares in May 2024 for $95,060.

• Expanded B channel partnerships from 1,550 to nearly 1,800 and served over 15 million end users.

Financial highlights

• Gross profit increased 28% to RMB 74.8 million (US $10.3 million) year-over-year.

• Income from operations reached RMB 10.1 million, compared to a loss of RMB 44.5 million last year.

• Basic and diluted EPS were RMB 0.44 ($0.06) for FY2024, up from a loss per share of RMB 1.61 in FY2023.

• Insurance brokerage revenue rose 45% to RMB 174.1 million, while MGU service fees declined 55% to RMB 10.2 million due to a partner's business closure.

• Cost of revenues increased 30% to RMB 108.9 million, in line with revenue growth.

Outlook and guidance

• Management expects continued strong growth through organic expansion, strategic investments, and platform upgrades.

• Plans to accelerate strategic investments in FY2025, targeting boutique players for integration.

• Ongoing optimization of digital insurance solutions aims to improve conversion ratios and expand user base.