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Highlights
• Total acquisition price valued at approximately USD3.5 million in phased payments
• Zhonglian Jinan generated USD26.3 million revenue in fiscal year ending June 2024
• Transaction more than doubles Zhibao’s national branch network

Zhibao Technology Inc. (NASDAQ: ZBAO) has announced the acquisition of a 51 percent controlling interest in Zhonglian Jinan Insurance Brokers Co., Ltd. through its subsidiary, Zhibao Technology Co., Ltd. The share purchase agreement sets the transaction price at approximately USD3.5 million (RMB25.5 million), payable in four installments and subject to performance-based adjustments.

The agreement evaluates 100 percent of Zhonglian Jinan at RMB50 million. The first three installments of RMB7.65 million each (about USD1.05 million) are due by July 2025 and January 2026. A final installment of RMB2.55 million (approximately USD0.35 million) will be paid only if Zhonglian Jinan meets revenue thresholds of RMB140 million (around USD19.18 million) within one year of the initial installment. Zhibao also holds a right of first refusal to acquire up to 34 percent more equity by 2027, contingent on meeting future performance goals.

Founded in 2015 and headquartered in Zhejiang, Zhonglian Jinan operates 28 provincial and 30 city-level branches across China. In the year ending June 30, 2024, the company generated RMB191.7 million in revenue, equivalent to about USD26.3 million.

Following the acquisition, Zhonglian Jinan becomes a PRC subsidiary of Zhibao. The deal expands Zhibao’s branch presence and immediately integrates Zhonglian’s existing licenses, an important move in a regulatory environment where acquiring new insurance brokerage licenses in China can take years. The integration is expected to increase business coverage in areas such as liability, accident, logistics, and property insurance.

This transaction aligns with Zhibao’s strategy of expanding its digital insurance offerings through licensed operating entities. Zhonglian Jinan’s platform and product portfolio are set to enhance Zhibao’s presence in both traditional and digital brokerage spaces.

As of now, Zhibao has not disclosed the projected timeline for realizing full operational integration or any material financial impacts beyond the acquisition value. Further performance disclosures may be expected as the company progresses with the phased acquisition and exercises its right for potential future stake increases.