Zhibao Technology Inc. (NASDAQ: ZBAO) reported unaudited results for the six months ended December 31 2025, showing revenue of RMB 206 million (US$29.5 million), a 41% year‑over‑year increase driven largely by a RMB 59.1 million jump in digital insurance brokerage revenue. The growth reflects the company’s expanding 2B2C embedded insurance model, which has attracted more B‑channel partners and end customers.
Gross margin rose to 34.8% from 29.1% a year earlier, a lift of 5.7 percentage points. The improvement is attributed to a higher mix of high‑margin brokerage contracts and the acquisition of Zhonglian in September 2025, which added a more profitable business line and helped offset cost pressures.
Selling expenses climbed 123% to RMB 41.4 million, largely because marketing service fees increased by RMB 20.7 million as the company invested heavily in expanding its B‑channel network. General and administrative costs grew 46% to RMB 20.9 million, driven by higher professional‑service and salary expenses. Research and development spending fell 21% to RMB 4.7 million, reflecting a shift toward outsourcing platform development.
Net income turned positive, with a profit of RMB 0.6 million (US$86,000) versus a net loss of RMB 0.6 million a year earlier. The modest profit signals a turnaround, but the company also disclosed substantial doubt about its ability to continue as a going concern, citing a working‑capital deficit, accumulated deficits, and complex financing arrangements that could pressure liquidity in the near term.
Segment data show that digital insurance brokerage revenue contributed the bulk of the growth, while the natural gas insurance segment also performed strongly, with premiums approaching RMB 100 million in 2025. The B‑channel network expanded to over 3,100 partners and served more than 27 million end users, underscoring the company’s scale‑up strategy.
"Our results for the first half of fiscal 2026 are indicative of the sustained rapid growth of our 2B2C digital embedded insurance model," said Mr. Botao Ma, Chairman and Chief Executive Officer of Zhibao. "The 41% revenue increase and our return to profitability reflect the successful execution of our growth strategies. I am pleased to see our investment in sales expenses to accelerate our onboard of new B channels and their end users has begun to show results, with the number of B channels reaching over 3,100 and the number of end users reaching over 27 million."
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