Zhibao Technology Inc. reported fiscal year‑2025 revenue of RMB 276.9 million (US$38.7 million), up 51% from RMB 183.7 million (US$25.2 million) in the prior year. Gross margin held steady at 40.7%, while gross profit rose to RMB 113.6 million (US$15.9 million). The company posted a net loss of RMB 62.0 million (US$8.7 million), a reversal from a net income of RMB 13.3 million (US$1.8 million) in fiscal 2024. Operating loss of RMB 53.5 million (US$7.5 million) followed an operating income of RMB 10.1 million (US$1.4 million) the year before. Cash and cash equivalents increased to RMB 10.3 million (US$1.44 million) at June 30 2025, up from RMB 2.4 million (US$0.34 million) a year earlier.
The 51% revenue jump was driven largely by the company’s 2B2C digital embedded insurance model, which expanded its B‑channel partner network to more than 2,400 outlets and served an estimated 24 million end‑customer users. Revenue from digital insurance brokerage services grew, offsetting a decline in MGU service fees, which fell as the company shifted focus toward higher‑margin brokerage work. The mix shift helped maintain gross margin despite the higher volume of lower‑margin MGU transactions.
The net loss reflects a sharp rise in operating expenses, driven by investments in sales force expansion and technology platform development. Management indicated that these costs were part of a broader strategy to capture additional market share in the digital insurance space. The higher operating expense load, combined with a shift toward lower‑margin MGU work, eroded the operating income that had been positive in 2024.
Revenue growth fell short of the company’s earlier guidance of 60‑80% for the fiscal year, and the transition from a net income to a net loss marks a significant change in profitability. Management noted that while top‑line growth remains strong, the company is prioritizing long‑term scale over short‑term profitability. The company’s cash position improved, providing a buffer for continued investment, but the loss signals a need for tighter cost control to return to profitability.
Investors reacted negatively to the results, citing the loss and the miss on revenue guidance as key concerns. The market’s focus on profitability outweighed the positive revenue momentum, underscoring the importance of cost discipline in the company’s growth strategy.
In addition to the earnings report, Zhibao announced that its subsidiary, Zhibao Labuan Reinsurance Company Limited, received a general reinsurance license in July 2025 and earned a B+ financial strength rating from AM Best in November 2025. The company also continued to build joint ventures, including a partnership with Beijing Zhongfang Hongchuang Technology and Guangzhou Ruiling Intelligent Technology to develop risk‑reduction services, and a 51% stake in Zhonglian Jinan Insurance Brokers Co., Ltd. in September 2025.
Management remains confident about the company’s trajectory, emphasizing continued investment in sales and technology while maintaining a focus on cost discipline. The company signals that it will monitor operating expenses closely and seeks to translate the strong revenue growth into profitability in the coming years.
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