• Total Revenues grew 16% year-over-year to RMB 319.9 million (US$ 47.1 million), meeting previously issued preliminary guidance.
• Income from Operations turned positive to RMB 9.2 million (US$ 1.36 million), compared to an operating loss of RMB 53.5 million in fiscal year 2025.
• Net Loss narrowed by 95.3% to RMB 2.9 million (US$ 0.38 million) meeting previously issued preliminary guidance.
• PIPE Financing: Completed a private placement transaction valued at US$ 154.7 million (payable in 2,380 Bitcoins) post-fiscal year end, substantially bolstering liquid assets.
• Strategic M&A: Entered into a definitive merger agreement to acquire NEXSYS TECH SDN. BHD. to expand international capabilities and geographic reach.

Shanghai, China--(Newsfile Corp. - November 13, 2026) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading high-growth InsurTech company and pioneer of the 2B2C digital embedded insurance model in China, today announced its consolidated financial results for the fiscal year ended June 30, 2026, following the filing of its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission.

Fiscal Year 2026 Financial & Operational Highlights

Total revenues for fiscal year 2026 reached RMB 319.9 million (US$ 47.1 million), an increase of 16% from RMB 276.9 million in fiscal year 2025 and meeting previously issued preliminary guidance. This marks nine consecutive quarters of positive revenue growth since the Company's IPO. Growth was primarily driven by the expansion of digital insurance brokerage services across key business channels ("B channels"). Insurance Brokerage Fees accounted for approximately 99% of total revenues (RMB 316.8 million / US$ 46.7 million).

Total operating expenses decreased to RMB 114.4 million (US$ 16.8 million) from RMB 167.1 million in fiscal year 2025:

• Selling and marketing expenses decreased 44.6% to RMB 62.1 million (US$ 9.2 million) from RMB 112.2 million, primarily due to a significant decrease in marketing services fees, which were heavily incurred in the prior fiscal year for business expansion, whereas the Company scaled back such expenditures amid tight cash flow conditions in the current fiscal year
• General and administrative expenses decreased 2.5% to RMB 42.9 million (US$ 6.3 million) from RMB 44.0 million.
• Research and development expenses were RMB 9.6 million (US$ 1.4 million) compared to RMB 10.9 million, primarily through the optimization of IT staff headcount.

Income from operations turned positive to RMB 9.2 million (US$ 1.36 million), compared to an operating loss of RMB 53.5 million in fiscal year 2025.

Net loss narrowed significantly by 95.3% to RMB 2.9 million (US$ 0.38 million) from a net loss of RMB 62.0 million in fiscal year 2025, meeting previously issued preliminary guidance. Net loss per share (basic and diluted) was RMB 3.96 (US$ 0.58). Share and per-share amounts retroactively reflect the 1-for-50 reverse share split (the "Share Consolidation") effected on October 12, 2026.

As of June 30, 2026, the Company had accumulated more than 3,200 business channels and over 28 million end customers.

Operational & Strategic Expansion

• Vertical Market Leadership: Zhibao cemented market leadership across specialized digital insurance verticals, including commercial and consumer drone insurance, home property coverage embedded via natural gas utilities, and accident/liability coverage for sports and public events.
• Reinsurance Operations: Zhibao Labuan Reinsurance Company Limited, a wholly-owned subsidiary in Labuan, Malaysia, received full licensing approval and commenced operations on June 1, 2025, providing capital support and underwriting capacity for the Company's brokerage and MGU services.
• Pending NEXSYS Acquisition: On September 28, 2026, the Company entered into a definitive Merger and Acquisition Agreement to acquire 100% of Malaysia-based NEXSYS TECH SDN. BHD. for US$ 1.00 in cash at closing plus contingent earn-out consideration of up to US$ 7.5 million payable in Class A ordinary shares based on future net profit targets through December 31, 2028.

Capital Structure & Post-Period Developments

• August 2026 PIPE Financing: On August 17, 2026, the Company completed a private placement financing with a syndicate of non-U.S. investors, issuing 442,000,000 PIPE units (or 8,840,000 units following the Share Consolidation) at $0.35 per unit (or $17.50 following the Share Consolidation) for aggregate consideration of US$ 154.7 million in Bitcoin. The consideration was fully satisfied through the contribution of 2,380 Bitcoins to the Company's designated wallet. The remaining 46,321,848 PIPE Units (or 926,437 units following the Share Consolidation) under the agreement were delivered on October 30, 2026 following shareholder approval.
• Convertible Note Financing (3i, LP): Between April 2026 and September 2026, the Company issued senior secured convertible notes to 3i, LP under a securities purchase agreement, including an initial note of US$3.33 million for $3 million in cash consideration and a second note of US$ 566,666 for $500,000 in cash consideration, and a third note of US$1 million for $900,000 in cash consideration.
• Share Consolidation & Nasdaq Compliance: On September 29, 2026, shareholders approved the Share Consolidation, which became effective on October 12, 2026. The consolidation was primarily executed to bring the Company into compliance with Nasdaq's minimum bid price requirement following receipt of a deficiency letter on July 10, 2026.

Liquidity and Going Concern Update

The Company had negative working capital of RMB 6.9 million (US$ 1.0 million) and an accumulated deficit of RMB 196.5 million (US$ 29.0 million) as of June 30, 2026, creating substantial doubt regarding its ability to continue as a going concern prior to considering post-period transactions. Management is actively addressing cash requirements through (i) negotiated extensions of bank loan terms, (ii) strict cost controls, staff streamlining, and operational efficiency improvements, and (iii) capital raisings.

Management Commentary

"Fiscal year 2026 marked a major operational inflection point for Zhibao," said Ms. Jinmei Guo Hellstreom, Chief Executive Officer and Chief Financial Officer of Zhibao. "Through disciplined execution, scaling of our 2B2C embedded model, and strict expense controls, we delivered 15.5% top-line revenue growth, achieved positive operating income of RMB 9.5 million, and brought our net loss down by over 95% to near break-even."

Mr. Botao Ma, Director of Zhibao, added: "With our leadership position established across core verticals in China, the strategic addition of our Labuan reinsurance platform, the pending international acquisition of NEXSYS, and the completion of our landmark US$ 154.7 million PIPE financing, Zhibao enters fiscal 2027 with strong momentum and enhanced structural capabilities to drive international expansion and shareholder value."

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. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao pioneered in China. Zhibao launched the first digital insurance brokerage platform in China in 2020, powered by its proprietary PaaS ("Platform as a Service"). Zhibao has developed over 40 proprietary digital insurance solutions addressing different scenarios in a wide range of industries, including travel, sports, logistics, utilities, and e-commerce. For more information, please visit: ir.zhibao-tech.com.

Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, including preliminary financial guidance and anticipated reporting dates, constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions identify forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, except as required by law. These statements are subject to uncertainties and risks, including market conditions and other risk factors discussed in the "Risk Factors" section of our annual report on Form 20-F for the fiscal year ended June 30, 2026 and other reports filed with the SEC. Actual results may differ materially from those anticipated. Additional factors are discussed in the Company's filings with the SEC, available at www.sec.gov.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323841

Source: Zhibao Technology Inc.