Core Viewpoint - Zhibao Technology Inc. reported significant financial growth for the fiscal year ended June 30, 2024, with a notable increase in revenues and a shift from operational losses to profits, driven by strategic investments in digital insurance brokerage services and an expanding customer base [2][4][5]. Recent Developments - The company completed its initial public offering on April 3, 2024, raising $6 million by selling 1,500,000 Class A ordinary shares at $4.00 each [3]. - An additional 23,765 Class A ordinary shares were issued on May 15, 2024, generating $95,060 in gross proceeds [3]. Financial and Operational Summary - Revenues increased by approximately RMB 41.6 million (US$5.7 million), or 29%, reaching approximately RMB 183.7 million (US$25.3 million) for the fiscal year ended June 30, 2024, compared to RMB 142.1 million in 2023 [4][14]. - Gross profit rose by approximately RMB 16.1 million (US$2.2 million), or 28%, totaling approximately RMB 74.8 million (US$10.3 million) [4]. - The company reported income from operations of approximately RMB 10.1 million (US$1.4 million) for the fiscal year, a significant improvement from a loss of approximately RMB 44.5 million in the previous year [4][20]. - Selling expenses increased by approximately 40%, and research and development expenses rose by approximately 56% compared to the previous year, reflecting the company's commitment to growth [4][18][19]. Business Model and Market Position - Zhibao operates a 2B2C digital embedded insurance model, which has allowed it to expand its digital insurance brokerage platform across various industries, including sports [6][25]. - The company has developed over 40 proprietary digital insurance solutions, leveraging big data and AI to enhance its offerings [26]. - As of June 30, 2024, Zhibao served over 15 million end customers, indicating strong market penetration and growth potential [4]. Management Commentary - The CEO expressed satisfaction with the company's rapid income growth and the achievement of GAAP profit despite significant investments in R&D and sales [5]. - Management remains optimistic about future growth, focusing on organic growth and strategic investments to maintain a competitive edge in the digital insurance market [10][12]. Financial Results - The digital insurance brokerage segment saw revenues increase by approximately RMB 54.3 million (45%), totaling approximately RMB 174.1 million (US$24.0 million) for the fiscal year [15]. - MGU service fees decreased by approximately RMB 12.6 million (55%) to approximately RMB 10.2 million (US$1.4 million) due to the closure of a reinsurance partner [16]. - Total operating expenses decreased significantly, particularly general and administrative expenses, which fell by approximately 75% [19]. Future Outlook - The company plans to continue its strategic investments in fiscal year 2025, targeting boutique players with similar business models to enhance its market reach [12]. - Zhibao aims to optimize its digital insurance solutions to improve conversion rates and expand its user base across various industry segments [13].
Zhibao Technology Inc Announces Financial Results for the Fiscal Year Ended June 30, 2024