Zhibao Technology Accelerates National Expansion with Strategic Acquisition of Insurance Broker Zhonglian Jinan
Zhibao Technology Acquires Controlling Interest in Zhonglian Jinan, More than Doubling its Branch Network and Strengthening Its Nationwide Insurance Brokerage Capabilities.
Shanghai, China--(Newsfile Corp. - July 2, 2025) - 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 that one of its subsidiaries, Zhibao Technology Co., Ltd. ("Zhibao China"), has entered into a share purchase agreement ("Agreement") with two shareholders ("Sellers") of Zhonglian Jinan Insurance Brokers Co., Ltd. ("Zhonglian Jinan" or "Target"), and the Target, pursuant to which, subject to the terms and conditions set forth in the Agreement, Zhibao China agreed to acquire an aggregate of 51% of the equity interest in Zhonglian Jinan (the "Acquired Assets") for a total purchase price of RMB25.5 million (approximately $3.5 million) ("Purchase Price"), subject to adjustment as provided in the Agreement (the "Acquisition").
Transaction Structure and Terms
Under the Agreement, the Purchase Price is based on an evaluation of RMB 50 million for the 100% of the equity interest in Zhonglian Jinan mutually agreed by Zhibao China and Sellers and shall be paid in four installments. The first three installments, each in the amount of RMB7.65 million (approximately $1.05 million), shall be payable on July 31, 2025, July 31, 2025 and January 31, 2026, respectively. The fourth installment, in the amount of RMB 2.55 million (approximately $0.35 million), is subject to adjustment in the event that the revenue generated by the Target is less than RMB 140 million (approximately $19.18 million) within one year following the full payment of the first instalment of the Purchase Price (the "Delivery Date"). The fourth installment is payable within 30 days following the first anniversary of the Delivery Date. Additionally, Zhibao China also has a right of first refusal to acquire an additional 34% equity interests in Zhonglian Jinan by the end of 2027 (the "Subsequent Acquisition"), contingent upon Jinan achieving ongoing performance goals.
Founded in June 2015 and headquartered in Ningbo, Zhejiang, Zhonglian Jinan is a licensed insurance brokerage with a nationwide footprint comprising 28 province-level and 30 city-level branches.