Zhibao Technology Inc. (NASDAQ: ZBAO) announced on January 16, 2026 that it had restored compliance with Nasdaq Listing Rule 5250(c)(1) by filing its 2025 Annual Report (Form 20‑F) on January 9, 2026. The company received a compliance notification letter from Nasdaq on January 12, 2026, confirming that the filing had satisfied the regulatory requirement and that the firm could continue to trade on the Nasdaq exchange without risk of delisting.
The 2025 Annual Report disclosed that Zhibao generated total revenue of RMB 276.9 million (US$38.7 million), a 51 % increase from the RMB 183.7 million (US$25.7 million) reported for the year ended June 30, 2024. Despite the revenue growth, the company posted a net loss of RMB 62.0 million (US$8.7 million) for the fiscal year, compared with a net income of RMB 13.3 million (US$1.8 million) in the prior year. Gross margin expanded to 41.0 % from 40.7 % in 2024, reflecting a modest improvement in cost efficiency amid higher sales volume.
In a statement, Chairman and CEO Botao Ma expressed satisfaction with the revenue growth, attributing the 51 % increase to the expanding acceptance of the company’s 2B2C digital insurance platform and growing demand for its data‑driven solutions. He noted that the company remains focused on converting top‑line growth into profitability through disciplined cost management and strategic investments in technology and talent.
Regaining Nasdaq compliance removes the immediate threat of delisting, a significant tailwind that can restore investor confidence and improve liquidity. However, the net loss and negative price‑to‑earnings ratio highlight ongoing profitability challenges. The company’s valuation remains constrained, and investors will likely scrutinize whether the firm can translate its revenue momentum into sustainable earnings in the coming periods.
Market reaction to the compliance announcement was a modest relief rally, driven primarily by the elimination of the binary delisting risk. Investors, however, remained cautious due to the company’s persistent net loss and valuation concerns, indicating that the compliance win is viewed as a procedural correction rather than a fundamental shift in business performance.
Looking ahead, Zhibao must demonstrate a clear path to profitability while maintaining its growth trajectory. Continued focus on cost discipline, expansion of its digital insurance offerings, and execution of joint‑venture initiatives will be critical to sustaining investor confidence and achieving long‑term financial health.
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