Core Viewpoint - Zhibao Technology Inc. reported significant financial growth for the fiscal year ended June 30, 2024, achieving a net income of RMB 13.3 million, a turnaround from a net loss of RMB 43.1 million in the previous year, driven by increased revenues and strategic investments in R&D and sales [3][5][23]. Recent Developments - The company closed its initial public offering on April 3, 2024, raising gross proceeds of $6 million by offering 1,500,000 Class A ordinary shares at $4.00 per share [4]. - An additional 23,765 Class A ordinary shares were issued on May 15, 2024, generating further gross proceeds of $95,060 [4]. Financial and Operational Summary - Revenues increased by approximately RMB 41.6 million (US$5.7 million), or 29%, to approximately RMB 183.7 million (US$25.3 million) for the fiscal year ended June 30, 2024, compared to RMB 142.1 million in the previous year [5][16]. - Gross profit rose by approximately RMB 16.1 million (US$2.2 million), or 28%, to approximately RMB 74.8 million (US$10.3 million) [5]. - Income from operations was approximately RMB 10.1 million (US$1.4 million), a significant improvement from a loss of RMB 44.5 million in the same period of 2023 [5][23]. - The company served over 15 million end customers as of June 30, 2024, indicating strong market penetration [6]. Revenue Breakdown - 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) [17]. - MGU service fees decreased by approximately RMB 12.6 million, or 55%, to approximately RMB 10.2 million (US$1.4 million) due to the closure of a reinsurance partner's business [18]. Cost and Expenses - Cost of revenue increased by approximately 30% to RMB 108.9 million (US$15.0 million) [19]. - Selling expenses rose by approximately 40% to RMB 31.6 million (US$4.3 million) due to increased sales staff [20]. - General and administrative expenses decreased by approximately 75% to RMB 18.0 million (US$2.5 million) [21]. - Research and development expenses increased by approximately 56% to RMB 15.1 million (US$2.1 million) [22]. Management Commentary - The CEO expressed satisfaction with the rapid growth in income and the achievement of a GAAP profit despite significant investments in R&D and sales [7]. - The company aims to leverage its first-mover advantage in the digitization of the Chinese insurance brokerage market [10]. Business and Financial Outlook - The company expects continued strong growth driven by organic growth strategies and strategic investments [12]. - Plans include enhancing the digital insurance brokerage platform and integrating acquired companies to access new markets [14].
CORRECTING and REPLACING: Zhibao Technology Inc Announces Financial Results for the Fiscal Year Ended June 30, 2024