Business
Zhibao Technology Inc. Announces Unaudited Financial Results for the Six Months Ended December 31, 2023
Shanghai, China--(Newsfile Corp. - June 28, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth
About this update from Zhibao Technology Inc.
[{"type":"text","content":"Shanghai, China--(Newsfile Corp. - June 28, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) (\"Zhibao,\" \"we,\" or the \"Company\"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced its unaudited financial results for the six months ended December 31, 2023.\nRecent Developments\nOn 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 $4.00 per share for aggregate gross proceeds of $6,000,000, before deducting underwriting discounts and offering expenses. The Class A ordinary shares began trading on the Nasdaq Capital Market on April 2, 2024 under the symbol \"ZBAO.\"\nOn 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 $4.00 per share, resulting in additional gross proceeds of $95,060.\nFinancial and Operational Summary for the Six Months Ended December 31, 2023\n\n\nTotal revenues in the six months ended December 31, 2023 decreased by approximately 8% to approximately RMB 84.3 million ($11.9 million) from approximately RMB 91.8 million in the same period of 2022.\n\n\nNet loss in the six months ended December 31, 2023 was approximately RMB 8.5 million ($1.2 million), compared to net income of approximately RMB 8.9 million in the same period of 2022. Loss from operations was approximately RMB 8.4 million ($1.2 million) in the six months ended December 31, 2023, compared to operation income of approximately RMB 6.5 million in the same period of 2022.\n\n\nAs of December 31, 2023, the Company had cash and cash equivalents of approximately RMB 5.5 million ($0.8 million), compared to approximately RMB 9.9 million as of June 30, 2023.\n\n\nWe increased our spending on sales and marketing by approximately 66%, and research & development (R&D) by approximately 82% compared to the same period in 2022. We expect this investment to drive returns in the form of increased revenue in the coming quarters.\n\n\nOur development of B Channels showed strong growth. As of December 31, 2023, we grew the number of B channels we work with from approximately 1,000 to nearly 1,500. Our B channels a...