Zhibao Technology Inc. (NASDAQ: ZBAO) announced the launch of Shanghai Zhibao Yingshi Health Technology Co. Ltd, a joint venture formed in September 2025 with Shanghai Xingtao Network Technology Co. Ltd. The venture is a 51%‑owned subsidiary of Zhibao China, and operations began in November 2025, with the first revenue recorded that month.
The joint‑venture agreement sets a monthly revenue target of RMB 4 million (US $560,000) for the remainder of 2025 and an annual target of RMB 50 million (US $7 million) for 2026, subject to board approval. The partnership combines Zhibao’s embedded‑insurance platform with Yingshi Health’s expertise in mid‑ and high‑end medical product design, positioning the venture to serve the expanding private‑pension and medical‑insurance market in China.
Strategically, the JV expands Zhibao’s product portfolio beyond its core brokerage services and strengthens its Managing General Underwriter (MGU) business. Service fees from Pingan Property and Casualty Insurance Company’s branches will be generated, providing a new revenue stream that complements Zhibao’s existing digital brokerage model and leverages its embedded‑insurance technology.
Zhibao’s recent financial performance shows an 82.66% year‑over‑year revenue growth, yet analysts anticipate a decline in net income for the current year. The company has also faced Nasdaq compliance issues and a delay in filing audited results for the fiscal year ending June 30, 2025. The joint venture is a strategic response to these headwinds, creating diversified revenue sources and mitigating reliance on its brokerage segment.
CEO Botao Ma emphasized that the partnership will accelerate development in the high‑ and mid‑end medical‑insurance market by combining resources and strengths. While the company acknowledges ongoing Nasdaq compliance challenges, it highlights the growing demand for embedded insurance and the private‑pension market as tailwinds that support the venture’s growth prospects.
The joint venture positions Zhibao to capture a larger share of China’s private‑pension and medical‑insurance segments, diversify its revenue mix, and strengthen its MGU business. The new revenue streams and strategic alignment with embedded‑insurance technology are expected to enhance profitability over the medium term, though short‑term earnings may be impacted by the company’s current compliance and reporting challenges.
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