Financial Results for the Six Months Ended December 31, 2023

Revenues

Total revenues in the six months ended December 31, 2023 were approximately RMB84.3 million ($11.9 million), compared with approximately RMB91.8 million in the same period of 2022, a decrease of approximately RMB 7.5 million, or 8%, primarily due to decrease of approximately RMB 5.7 million and RMB 1.8 million, respectively, in insurance brokerage service fees and managing general underwriting ("MGU") services. The decrease in insurance brokerage service fees was due to reduced renewal of specific accounts in the six months ended December 31, 2023, while the decrease in MGU service fees was due to abrupt closure of business by a reinsurance partner in the high-end medical sector.

Revenues in the six months ended December 31, 2023 were comprised of insurance brokerage service fees of RMB 71.4 million and MGU service fees of RMB 13.2 million, respectively, partially net off against business taxes and surcharges of approximately RMB 0.3 million. Revenues in the six months ended December 31, 2022 were comprised of insurance brokerage service fees of approximately RMB 77.1 million and MGU service fees of approximately RMB 15.0 million, respectively, partially net off against business taxes and surcharges of approximately RMB 0.3 million.

Loss per Share

Basic and diluted net loss per share in the six months ended December 31, 2023 were RMB 0.28 ($0.04) and RMB 0.28 ($0.04), respectively. Non-GAAP adjusted basic and diluted net loss per share in the six months ended December 31, 2023 were RMB 0.20 ($0.03) and RMB 0.20 ($0.03), respectively.

Business and Financial Outlook

The Company expects the combination of organic growth and strategic M&A opportunities will greatly accelerate the growth of the businesses. Additionally, the combination of these market initiatives with the "Project Amoeba" reorganization of the mid- and back-end office teams since early April 2024 is expected to drive sustained increases in operational efficiency. Management is optimistic about the prospects in the embedded insurance brokerage industry in the near future and believe that the talented and dedicated team, along with the strategic development plan, has positioned Zhibao well to capitalize on growth opportunities within the industry. The Company will continue to focus on pursuing strategic objectives, enhancing operating efficiencies, and exploring avenues for business expansion. The Company seeks to uphold its mission to prioritize clients' interests and leverage the Company's expertise to seize opportunities in China's embedded insurance brokerage industry to expand its client base and grow its business in 2024 and future years.