Zhibao Technology (ZBAO) Registration filing summary

Company overview and business model

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

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

• As of the filing, has over 1,800 business channels and more than 15 million end customers, with partnerships with over 100 insurance companies.

• Revenue streams include insurance brokerage commissions (mainly property & casualty, health, and life insurance) and MGU service fees.

• Recently expanded with a licensed reinsurance subsidiary in Malaysia to support brokerage and MGU services.

Financial performance and metrics

• Fiscal year ended June 30, 2024: revenue of RMB 183.7 million (US$25.3 million), up 29% from prior year.

• Net income for FY2024 was RMB 13.3 million (US$1.8 million), compared to a net loss of RMB 43.1 million (US$5.9 million) in FY2023, which included significant one-off share-based compensation expenses.

• Cash and cash equivalents as of June 30, 2024: RMB 2.4 million (US$0.33 million).

• Total assets as of June 30, 2024: RMB 208.8 million (US$28.7 million); total liabilities: RMB 144.8 million (US$19.9 million).

Use of proceeds and capital allocation

• Will not receive proceeds from the resale of shares by the selling shareholder; may receive up to $0.7 million from cash exercise of warrants, intended for working capital and general corporate purposes.

• No plans to pay cash dividends in the foreseeable future; intends to reinvest earnings to finance business expansion.