Financial Performance - The company reported a net loss of RMB 43,098,780 for the fiscal year ended June 30, 2023, and a net income of RMB 13,251,753 for the fiscal year ended June 30, 2024, followed by a net loss of RMB 62,019,599 for the fiscal year ended June 30, 2025[629]. - Adjusted EBITDA for the fiscal year ended June 30, 2023 was RMB 16,687,974, while for the fiscal year ended June 30, 2024 it was RMB 16,027,851, and for the fiscal year ended June 30, 2025 it was a loss of RMB 53,875,452[629]. Credit Loss Provisions - The company accrued provisions for credit losses of approximately RMB 1.9 million, RMB 4.0 million, and RMB 12.3 million (US$1.7 million) for the fiscal years ended June 30, 2023, 2024, and 2025, respectively[616]. - The allowance for credit losses increased by RMB 8,821,129 upon the adoption of ASU 2016-13 on July 1, 2023[615]. Deferred Tax Assets - As of June 30, 2024 and 2025, the company recorded valuation allowances for deferred tax assets amounting to RMB 10.4 million and RMB 21.2 million (US$3.0 million), respectively[618]. Financing Activities - The company entered into a L1 Securities Purchase Agreement on September 23, 2024, providing for loans up to $8.0 million under three tranches[622]. - The company received net proceeds of approximately RMB 17.5 million (US$2.4 million) from convertible notes for the year ended June 30, 2025[622]. - The company has classified convertible notes as liabilities under ASC 470, estimating the fair value of the derivative liability using the Binomial Tree Model[623]. Tax Benefits - The company has not recognized any interest expense or penalty related to unrecognized tax benefits for the fiscal years ended June 30, 2024 and 2025[621]. Reserve Funds - The company’s PRC subsidiaries are required to set aside at least 10% of their after-tax profits to fund certain reserve funds until the total amount reaches 50% of their registered capital[606].
Zhibao Technology(ZBAO) - 2025 Q4 - Annual Report