Shanghai, China--(Newsfile Corp. - July 25, 2024) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao" 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 it has reached a strategic investment cooperation with Sport Covers to jointly create a new business model of digital sports and insurance brokerage. As the wave of digitalization sweeps the world, technological innovation and digital empowerment have become the engines driving the development of the industry.
Behind this strategic investment is the high consensus between Zhibao Technology and Sport Covers on future development trends and the deep recognition of the value of technological innovation. Zhibao Technology's strong advantages in insurance brokerage and digitalization, allows Sport Covers to become the first sports insurance technology platform under a listed insurance brokerage company in China, and continue to provide digital, scenario-based and convenient sports risk protection services.
Zhibao and Sports Cover teams have already started working together, merging Zhibao's insurance expertise, technology platform, relationship with insurance companies etc. and Sports Cover's position within the sports market to offer enhanced services and solutions to the mutual end customers. The partnership provides Zhibao with deeply established connections with sports-related B-channels, including sports facilities and venues, marathons and other sporting events.
In the eight years since its establishment, Zhibao Technology has joined forces with hundreds of industry partners to provide digital insurance solutions from operations, systems, insurance products to customer service to more than 1,000 Internet platforms, enterprises, governments and offline channels, and jointly provide exclusive insurance brokerage services to many individuals and small and medium-sized enterprise customers.
The Company estimates that the strategic investment cooperation with Sports Cover will result in considerable revenue contributions over the next several years. Zhibao forecasts that the revenue increase for 2024 will be approximately CNY 20M; 2025 about CNY 50M; and an estimate of CNY 80M in 2026.
"I am pleased with the strategic partnership that we have reached with Sport Covers which will provide mutual benefits and allow both of our organizations to grow and diversify our respective customer bases," said Botao Ma, Founder, Chairman, Chief Executive Officer, Zhibao Technology. "The sports insurance market is expected to see substantial growth over the next several years and we are well positioned to realize the revenue, margin, and profitability benefits of being an active player in this dynamic industry."
In the future, the Company will continue to penetrate the sports insurance market. Through close cooperation with Sport Covers, it will provide users with more secure and convenient sports insurance services, jointly promote the development of national fitness and national sports, help more people participate in sports activities with peace of mind, enjoy a healthy life, and achieve a perfect combination of sports and protection.
According to the Industry Research group's report on the "Sports Insurance Market", the global Sports Insurance market size was valued at $3.4million in 2022 and is expected to expand at a CAGR of 6.0% during the forecast period, reaching $4.8 million by 2028.
Zhibao expects to successfully penetrate the sports-related insurance sector and expand its market presence over the next few years. By 2024, the Company expects to have approximately 10% of the market, followed by a greater than 15% share in 2025, and over 20% by 2026.
About Zhibao Technology Inc.
Zhibao Technology Inc. ("Zhibao" or the "Company") is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").
Zhibao has developed more than 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao China Group acquire and analyze customer data, utilize big data and artificial intelligence technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep the Company abreast of the new trends and customer preferences in the market.
For more information, please visit the Company's website at www.zhibao-tech.com.
About Sports Covers
Sport Covers, founded in November 2015, is a leading digital sports health risk management expert in China. With the mission of "making sports healthier and more valuable", it relies on the digital SaaS system and innovatively creates a "special insurance, special sales, special control, and special service" system to help promote national sports.
In the nine years since its establishment, the company has relied on dozens of sports insurance products, the accumulation of big data on sports industry risks, the "Red Vest" offline service system, the "Kuai Ma Claims" claims service system and other targeted protection and professional services to expand its channel business to more than 30 provinces across the country and serve a total of 50 million athletes.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
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