Zhibao forms joint venture to develop risk reduction services in China

SHANGHAI - Zhibao Technology Inc. (NASDAQ:ZBAO), a $32 million market cap InsurTech company that has seen its stock decline 72% over the past year, announced Tuesday it has signed an agreement to establish a joint venture with Beijing Zhongfang Hongchuang Technology Company Limited and Guangzhou Ruiling Intelligent Technology Co. Ltd. According to InvestingPro data, the company maintains a FAIR financial health score despite recent market challenges.

According to the press release, Zhibao will own 40% of the joint venture, while Zhongfang, a wholly-owned subsidiary of the China Disaster Prevention Association (CDPA), and Ruiling will each hold 30%.

The collaboration aims to develop an "Insurance + Technology + Service" model focused on enhancing risk management across government emergency management, corporate workplace safety, and residential disaster prevention sectors.

The joint venture plans to combine Zhibao’s technology with CDPA’s disaster database to develop customized risk reduction services and a digital service system covering monitoring, risk assessment, insurance coverage, and post-disaster recovery.

Initial focus areas will include geological disasters, urban waterlogging, and production safety, according to the statement.

"We believe our cooperation with CDPA and Ruiling relating to this JV company can be a transformative step in our mission to redefine insurance services through technology," said Botao Ma, Chairman and CEO of Zhibao.

Zhibao Technology describes itself as an InsurTech company providing digital insurance brokerage services in China through its operating entities. The company claims to have pioneered a business-to-business-to-customer digital embedded insurance model in China and launched the country’s first digital insurance brokerage platform in 2020.

The China Disaster Prevention Association, established in 1987, is a national-level organization supervised by the Ministry of Emergency Management that focuses on disaster prevention, mitigation, and relief work.

In other recent news, Zhibao Technology Inc. has entered the drone insurance market in China through a strategic partnership with Sichuan Fanmo Technology Co., Ltd. This collaboration, facilitated by Zhibao’s subsidiary Sunshine Insurance Brokers, marks a significant move into the country’s emerging low-altitude economy insurance sector. The partnership, operational since April 2025, aims to tap into China’s projected RMB 3.5 trillion low-altitude economy by 2035. By offering digital insurance brokerage services, the alliance plans to enhance service capabilities through real-time flight data integration and dynamic risk assessment. This includes online policy customization and automated claims processing, providing a modern approach to insurance in this sector. These developments reflect Zhibao’s efforts to expand its footprint in the evolving insurance landscape.

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