CORRECTING and REPLACING: Zhibao Technology Inc Announces Financial Results for the Fiscal Year Ended June 30, 2024
Zhibao Technology Inc (NASDAQ: ZBAO) announced its financial results for fiscal year ended June 30, 2024. The company reported significant growth with revenues increasing 29% to RMB 183.7 million (US$25.3 million). Notable achievements include:
- Net income of RMB 13.3 million, compared to a net loss of RMB 43.1 million in 2023
- Growth in B channels from 1,550 to nearly 1,800
- Reached over 15 million end customer users
- Successful IPO raising $6 million through 1.5 million Class A ordinary shares at $4.00 per share
The company increased investments in R&D (56%) and selling expenses (40%), while expanding its digital insurance brokerage platform into new business areas. Management expects continued strong growth through organic expansion and strategic investments.
Zhibao Technology Inc (NASDAQ: ZBAO) ha annunciato i risultati finanziari per l'anno fiscale concluso il 30 giugno 2024. L'azienda ha riportato una crescita significativa con un aumento dei ricavi del 29%, raggiungendo 183,7 milioni di RMB (25,3 milioni di dollari USA). Tra i risultati degni di nota ci sono:
- Utile netto di 13,3 milioni di RMB, rispetto a una perdita netta di 43,1 milioni di RMB nel 2023
- Crescita dei canali B da 1.550 a quasi 1.800
- Superati i 15 milioni di utenti finali
- IPO di successo che ha raccolto 6 milioni di dollari attraverso 1,5 milioni di azioni ordinarie di Classe A a 4,00 dollari per azione
L'azienda ha aumentato gli investimenti in R&S (56%) e nelle spese di vendita (40%), mentre espande la sua piattaforma di intermediazione assicurativa digitale in nuove aree di business. La direzione si aspetta una continua forte crescita attraverso l'espansione organica e investimenti strategici.
Zhibao Technology Inc (NASDAQ: ZBAO) anunció sus resultados financieros para el año fiscal que terminó el 30 de junio de 2024. La empresa reportó un crecimiento significativo con un aumento de ingresos del 29%, alcanzando 183,7 millones de RMB (25,3 millones de dólares estadounidenses). Los logros destacados incluyen:
- Ingreso neto de 13,3 millones de RMB, en comparación con una pérdida neta de 43,1 millones de RMB en 2023
- Crecimiento en canales B de 1,550 a casi 1,800
- Más de 15 millones de usuarios finales alcanzados
- Exitosa OPI que recaudó 6 millones de dólares a través de 1.5 millones de acciones ordinarias Clase A a 4,00 dólares por acción
La empresa incrementó las inversiones en I+D (56%) y en gastos de ventas (40%), mientras expande su plataforma de corretaje de seguros digitales a nuevas áreas de negocio. La dirección espera un crecimiento fuerte y continuo a través de la expansión orgánica y las inversiones estratégicas.
지바오 테크놀로지 주식회사 (NASDAQ: ZBAO)는 2024년 6월 30일 종료된 회계 연도의 재무 결과를 발표했습니다. 이 회사는 매출이 29% 증가하여 1억 8,370만 위안(2530만 달러)에 도달하며 상당한 성장을 보고했습니다. 주목할 만한 성과는 다음과 같습니다:
- 순이익 1,330만 위안, 2023년의 순손실 4,310만 위안과 비교
- B채널 성장 1,550개에서 거의 1,800개로 증가
- 1,500만 명 이상의 최종 고객 사용자 도달
- 주당 4.00달러로 150만 주의 A급 보통주를 통해 600만 달러를 모금한 성공적인 IPO
회사는 R&D(56%)와 판매 비용(40%)에 대한 투자를 늘리면서 디지털 보험 중개 플랫폼을 새로운 사업 분야로 확장했습니다. 경영진은 유기적 확장 및 전략적 투자를 통한 지속적인 강력한 성장을 기대하고 있습니다.
Zhibao Technology Inc (NASDAQ: ZBAO) a annoncé ses résultats financiers pour l'exercice clos le 30 juin 2024. L'entreprise a connu une forte croissance avec une augmentation des revenus de 29%, atteignant 183,7 millions de RMB (25,3 millions de dollars américains). Parmi les réalisations notables, on trouve :
- Bénéfice net de 13,3 millions de RMB, comparé à une perte nette de 43,1 millions de RMB en 2023
- Croissance des canaux B de 1 550 à près de 1 800
- Plus de 15 millions d'utilisateurs finaux atteints
- Introduction en bourse réussie ayant levé 6 millions de dollars par le biais de 1,5 million d'actions ordinaires de classe A à 4,00 dollars par action
L'entreprise a augmenté ses investissements dans la R&D (56%) et dans les dépenses de vente (40%), tout en élargissant sa plateforme de courtage d'assurance numérique dans de nouveaux domaines d'activité. La direction s'attend à une croissance continue solide grâce à une expansion organique et à des investissements stratégiques.
Zhibao Technology Inc (NASDAQ: ZBAO) hat seine finanziellen Ergebnisse für das am 30. Juni 2024 endende Geschäftsjahr bekannt gegeben. Das Unternehmen berichtete von einem signifikanten Wachstum mit einem Umsatzanstieg von 29% auf 183,7 Millionen RMB (25,3 Millionen US-Dollar). Zu den bemerkenswerten Erfolgen gehören:
- Nettogewinn von 13,3 Millionen RMB, im Vergleich zu einem Nettverlust von 43,1 Millionen RMB im Jahr 2023
- Wachstum der B-Kanäle von 1.550 auf fast 1.800
- Über 15 Millionen Endkunden erreicht
- Erfolgreicher Börsengang, der 6 Millionen Dollar durch 1,5 Millionen Stammaktien der Klasse A zu je 4,00 Dollar pro Aktie einbrachte
Das Unternehmen erhöhte die Investitionen in Forschung und Entwicklung (56%) sowie in Verkaufsausgaben (40%), während es seine digitale Versicherungsbrokerage-Plattform in neue Geschäftsbereiche ausbaute. Das Management erwartet weiterhin starkes Wachstum durch organische Expansion und strategische Investitionen.
- None.
- None.
Net Income for the fiscal year ended June 30, 2024, should be changed to RMB 13.3 million. In addition, basic and diluted net income per share for the fiscal year ended June 30, 2024 , should be changed to RMB 0.44
The corrected release reads:
Zhibao Technology Inc Announces Financial Results for the Fiscal Year Ended June 30, 2024
Shanghai, China--(Newsfile Corp. - November 1, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao" or the "Company"), a leading and high growth InsurTech company primarily engaged in providing digital insurance brokerage services through its operating entities in China, today announced its financial results for the fiscal year ended June 30, 2024.
Recent Developments
On April 3, 2024, the Company closed its initial public offering ("Offering") of 1,500,000 Class A ordinary shares at a public offering price of
On May 15, 2024, the Company issued an additional 23,765 Class A ordinary shares pursuant to the partial exercise of the underwriters' over-allotment option in connection with the Company's Offering at
Financial and Operational Summary for the Fiscal Year Ended June 30, 2024
- Revenues increased by approximately RMB 41.6 million (US
$5.7 million ), or29% to approximately RMB 183.7 million (US$25.3 million ) for the fiscal year ended June 30, 2024 from approximately RMB 142.1 million for the fiscal year ended June 30, 2023. - Gross profit increased by approximately RMB 16.1 million (US
$2.2 million ), or28% to approximately RMB 74.8 million (US$10.3 million ) for the fiscal year ended June 30, 2024 from approximately RMB 58.6 million for the fiscal year ended June 30, 2023. - Income from operations in the fiscal year ended June 30, 2024 of approximately RMB 10.1 million (
$1.4 million ), compared to a loss from operations of approximately RMB 44.5 million in the same period of 2023. Net income of approximately RMB 13.3 million for the fiscal year ended June 30, 2024 compared to net loss of approximately RMB 43.1 million for the fiscal year ended June 30, 2023. - The Company increased selling expenses by approximately
40% , and research & development (R&D) by approximately56% compared to the same period in 2023. Management expects this investment to drive returns in the form of increased revenue in the coming quarters. - Development of B Channels showed strong growth. As of June 30, 2024, Zhibao grew the number of B channels the Company works with from approximately 1,550 to nearly 1,800. B channels are distributed amongst diverse market segments and is a key component to growing our 2B2C embedded digital insurance model.
- As of June 30, 2024, the Company reached and served in excess of 15 million end customer users, which management expects will continue to drive revenue in the coming years.
Management Commentary
Mr. Botao Ma, Chief Executive Officer of Zhibao, commented, "I am very pleased to report a rapid growth in our income over the past fiscal year. I am especially pleased that we were able to report a GAAP profit and produce substantial growth over fiscal year 2023 despite large investments in R&D and sales expenses.
Over the past year, our digital insurance brokerage platform has expanded to include many new business areas, for example sports. We are pleased to provide industry-leading digital insurance solutions to an ever-increasing number of B-channels and end users across more industry sectors and fields.
Throughout the last six months, our "Project Amoeba" continued to bring us strong returns, markedly increasing the ability and efficiency of our mid- and back-office teams.
The digitization of the Chinese insurance brokerage industry is accelerating. We are thrilled to have entered this market 8 years ago with our 2B2C digital insurance brokerage platform. Our first-mover advantage has allowed us to develop many digital insurance solutions across various industries.
By sustaining our organic growth and strategic investment in other companies, as well as exporting our PaaS and mature operational ability to the market, we intend to utilize our position as China's first digital insurance brokerage company to play a key role in the digitization of the Chinese insurance brokerage market.
We have received conditional approval and are in the process of obtaining final license approval for our reinsurance company in Labuan, Malaysia. By providing selective reinsurance support to business generated by our brokerage and MGU business lines, I believe we can showcase our confidence in the business we provide to the insurance market and accelerate our business growth.
I have every confidence in our business model, growth strategies, and our continued ability to drive growth and profitability in the coming years."
Business and Financial Outlook
The Company expects growth patterns to continue to demonstrate strong growth. By executing on the growth strategies, specifically, by focusing on organic growth, continued strategic investment, and upgrade of the digital insurance brokerage platform, management is optimistic that Zhibao has a long runway ahead, allowing the Company to stay ahead of the competition in the 2B2C digital embedded insurance market space in China.
Over the course of fiscal year 2024, the Company made large investments in developing its own sales ability. This includes investment into the sales staff, and attracting more independent sales partners, which will accelerate the identification and development of more B-channels across different industry sectors.
Complementing the organic growth plan, the Company intends to accelerate its strategic investment in fiscal year 2025. The strategic investment targets remain boutique players with similar business models and deep connections within a specific niche. Zhibao intends to integrate an acquired company's B-channels, sales teams, and operational abilities allowing the Company rapid access to potential new markets and end customers.
Finally, by continually optimizing the digital insurance solutions, the Company intends to improve conversion ratios, leading to more end users across more industry segments.
Through the execution of the aforementioned growth strategies, the Company is confident that its first-mover advantage and industry leading PaaS and digital insurance solutions will continue to deliver strong results in the future.
Financial Results for the Fiscal Year Ended June 30, 2024
Revenues
Revenues increased by approximately RMB 41.6 million (US
- Insurance Brokerage. Revenues from the digital insurance brokerage segment increased by approximately RMB 54.3 million, or
45% , to approximately RMB 174.1 million (US$24.0 million ) for the fiscal year ended June 30, 2024 from approximately RMB 119.8 million for the fiscal year ended June 30, 2023. The increase in the insurance brokerage commissions as a percentage of total revenues for such periods was mainly due to the increase in volume of transactions on our platform, primarily contributed by larger customer base and more selection of production.
- MGU Service Fees. MGU Service Fees decreased by approximately RMB 12.6 million, or
55% to approximately RMB 10.2 million (US$1.4 million ) for the fiscal year ended June 30, 2024 from approximately RMB 22.8 million for the fiscal year ended June 30, 2023. The decrease was mainly attributable to the abrupt closure of business by a reinsurance partner in the high-end medical sector.
Cost of Revenues
Cost of revenue for the fiscal year ending June 20, 2024 increased by approximately
Operating Expenses
- Selling expenses for the fiscal year ended June 20, 2024 increased by approximately RMB 9.1 million, or
40% from approximately RMB 22.5 million for the fiscal year ended June 30, 2023 to approximately RMB 31.6 million (US$4.3 million ) for the fiscal year ended June 30, 2024. The increase was mainly due to an increase of approximately RMB 5.2 million in salary and welfare expenses for our sales team as a result of employment of more salespeople with anticipation to increase the GWP for both of our digital brokerage services and MGU services, and an increase in other expenses of approximately RMB 2.3 million incurred by our sales teams with the increase of headcount.
General and administrative expenses decreased by approximately RMB 53.0 million, or
75% from approximately RMB 71.0 million for the fiscal year ended June 30, 2023 to approximately RMB 18.0 million (US$2.5 million ) for the fiscal year ended June 30, 2024. The decrease was mainly due to a decrease in share-based compensation expenses of approximately RMB 54.7 million as we issued ordinary shares to a related party which is wholly controlled by Mr. Ma, our Chairman of the Board and Chief Executive Officer. The difference of RMB 54.7 million between the consideration we received from the related party and fair value of ordinary shares were deemed as share-based compensation expenses, and a decrease of other expenses of approximately RMB 1.5 million as we adopted cost-saving policy in the Company. This was partially offset by an increase of approximately RMB 2.3 million in provision for credit losses since our adoption of ASU 2016-13 on July 1, 2023, and an increase of approximately RMB 0.9 million in payroll and welfare expenses as a result of employment of more administrative headcount to support our increasing GWP.Research and development expenses increased by approximately RMB 5.4 million, or
56% from approximately RMB 9.7 million for the fiscal year ended June 30, 2023 to approximately RMB 15.1 million (US$2.1 million ) for the fiscal year ended June 30, 2024. The increase was mainly due to an increase of labor cost from our research and development department because we increased headcounts for the development of our platform.
Income (Loss) from Operations
As a result of the foregoing, the Company reported income from operations in the fiscal year ended June 30, 2024 of approximately RMB 10.1 million (
Net Income (Loss)
The Company reported a net loss of approximately RMB 43.1 million for the fiscal year ended June 30, 2023, and a net income of approximately RMB 13.3 million for the fiscal year ended June 30, 2024.
Profit per Share
Basic and diluted net income per share for the fiscal year ended June 30, 2024 were RMB 0.44
Conference Call
The Company will host a conference call on Monday, November 4, 2024, at 11:00 AM ET to discuss the fiscal year ended June 30, 2024 results. To participate in the conference call, please dial:
US toll free: 1-877-423-9813
International: 1-201-689-8573
Conference ID: ZHIBAO TECHNOLOGY
Please dial five to ten minutes prior to the scheduled time
For those unable to participate during the live call, a replay of this call will be available on November 4, 2024 at 2:00 p.m. ET for 7 days. To access the replay, please dial:
US toll free: 1- 844-512-2921
International: 1-412-317-6671
Access ID: 13750000
About Zhibao Technology Inc.
Zhibao Technology Inc. is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").
Zhibao has developed more than 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao China Group acquire and analyze customer data, utilize big data and artificial intelligence technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep the Company abreast of the new trends and customer preferences in the market.
For more information, please visit the Company's website at ir.zhibao-tech.com.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Contact Information:
For Media and Investor Relations
Zhibao Technology Inc.
Investor Relations Office
ir@zhibao-tech.com
Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com
Balance Sheet
ZHIBAO TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Renminbi ("RMB") and U.S. dollars ("US$"), except for share and per share data)
| As of June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD (Note 2) | ||||||||||
| ASSETS | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | 9,873,678 | 2,401,495 | 330,457 | |||||||||
| Restricted cash | 4,999,974 | 38,743,831 | 5,331,329 | |||||||||
| Accounts receivable, net | 77,750,249 | 130,354,429 | 17,937,366 | |||||||||
| Due from related parties | 8,526,012 | 16,566,524 | 2,279,630 | |||||||||
| Deferred offering cost | 4,223,769 | - | - | |||||||||
| Prepaid expenses and other current assets, net | 8,332,330 | 9,485,464 | 1,305,243 | |||||||||
| Total Current Assets | 113,706,012 | 197,551,743 | 27,184,025 | |||||||||
| Property and equipment, net | 2,516 | 233,375 | 32,113 | |||||||||
| Intangible assets, net | 2,183,677 | 2,581,046 | 355,164 | |||||||||
| Operating lease right of use assets | 4,327,705 | 3,313,215 | 455,914 | |||||||||
| Restricted cash, noncurrent | 5,000,000 | 5,000,000 | 688,023 | |||||||||
| Deferred tax assets | 1,604,757 | 57,257 | 7,879 | |||||||||
| Other non-current assets | 1,211,500 | 51,004 | 7,018 | |||||||||
| Total Non-Current Assets | 14,330,155 | 11,235,897 | 1,546,111 | |||||||||
| Total Assets | 128,036,167 | 208,787,640 | 28,730,136 | |||||||||
| LIABILITIES, AND SHAREHOLDERS' EQUITY | ||||||||||||
| Current Liabilities | ||||||||||||
| Short-term borrowings | 27,267,797 | 26,814,237 | 3,689,762 | |||||||||
| Accounts payable | 31,436,527 | 51,252,954 | 7,052,641 | |||||||||
| Insurance premium payable | 3,553,377 | 38,376,850 | 5,280,830 | |||||||||
| Income tax payable | 28,343 | 42,747 | 5,882 | |||||||||
| Due to related parties | 290,200 | 6,166,067 | 848,479 | |||||||||
| Operating lease liabilities, current | 2,009,034 | 2,425,135 | 333,710 | |||||||||
| Accrued expenses and other liabilities | 14,714,898 | 15,990,970 | 2,200,431 | |||||||||
| Subscription fees advanced from one investor | 15,000,000 | - | - | |||||||||
| Total Current Liabilities | 94,300,176 | 141,068,960 | 19,411,735 | |||||||||
| Operating lease liabilities, noncurrent | 2,273,154 | 1,044,068 | 143,669 | |||||||||
| Deferred tax liabilities | 7,698 | 2,683,818 | 369,306 | |||||||||
| Total Non-Current Liabilities | 2,280,852 | 3,727,886 | 512,975 | |||||||||
| Total Liabilities | 96,581,028 | 144,796,846 | 19,924,710 | |||||||||
| Commitments and contingencies | ||||||||||||
| Shareholders' Equity | ||||||||||||
| Class A ordinary shares (par value | 8,820 | 9,922 | 1,470 | |||||||||
| Class B ordinary shares (par value | 12,204 | 12,204 | 1,682 | |||||||||
| Additional paid-in capital | 168,973,780 | 196,038,784 | 26,975,834 | |||||||||
| Accumulated deficit | (137,544,783) | (131,841,244) | (18,142,067) | |||||||||
| Accumulated other comprehensive income (loss) | 5,118 | (228,872) | (31,493) | |||||||||
| Total Shareholders' Equity | 31,455,139 | 63,990,794 | 8,805,426 | |||||||||
| Total Liabilities and Shareholders' Equity | 128,036,167 | 208,787,640 | 28,730,136 | |||||||||
Statement of Operations
ZHIBAO TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in Renminbi ("RMB") and U.S. dollars ("US$"), except for share and per share data)
| For the Year Ended June 30, | ||||||||||||
| 2022 | 2023 | 2024 | 2024 | |||||||||
| RMB | RMB | RMB | USD (Note 2) | |||||||||
| Revenues | 108,224,804 | 142,102,834 | 183,669,326 | 25,273,740 | ||||||||
| Cost of revenues | (61,051,878) | (83,485,203) | (108,908,547) | (14,986,315) | ||||||||
| Gross profit | 47,172,926 | 58,617,631 | 74,760,779 | 10,287,425 | ||||||||
| Operating expenses | ||||||||||||
| Selling and marketing expenses | (12,728,488) | (22,495,891) | (31,606,719) | (4,349,229) | ||||||||
| General and administrative expenses | (14,059,968) | (70,991,876) | (17,954,289) | (2,470,592) | ||||||||
| Research and development expenses | (7,743,121) | (9,682,605) | (15,092,620) | (2,076,814) | ||||||||
| Total operating expenses | (34,531,577) | (103,170,372) | (64,653,628) | (8,896,635) | ||||||||
| Income (loss) from operations | 12,641,349 | (44,552,741) | 10,107,151 | 1,390,790 | ||||||||
| Interest expense, net | (1,165,915) | (912,397) | (848,575) | (116,768) | ||||||||
| Other income, net | 673,337 | 2,907,818 | 507,609 | 69,849 | ||||||||
| Gain on extinguishment of liability (Note 9) | - | - | 8,996,341 | 1,237,938 | ||||||||
| Income (Loss) Before Income Taxes | 12,148,771 | (42,557,320) | 18,762,526 | 2,581,809 | ||||||||
| Income tax benefits (expenses) | 2,110,635 | (541,460) | (5,510,773) | (758,308) | ||||||||
| Net Income (Loss) | 14,259,406 | (43,098,780) | 13,251,753 | 1,823,501 | ||||||||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation adjustments | - | 5,118 | (233,990) | (32,198) | ||||||||
| Comprehensive income (loss) | 14,259,406 | (43,093,662) | 13,017,763 | 1,791,303 | ||||||||
| Weighted average number of ordinary share outstanding | ||||||||||||
| Basic* | 26,338,878 | 26,710,005 | 30,367,806 | 30,367,806 | ||||||||
| Diluted* | 26,338,878 | 26,710,005 | 30,367,806 | 30,367,806 | ||||||||
| Earnings (loss) per share | ||||||||||||
| Basic* | 0.54 | (1.61) | 0.44 | 0.06 | ||||||||
| Diluted* | 0.54 | (1.61) | 0.44 | 0.06 | ||||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228581
FAQ
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