Strategic partnership positions Company to capitalize on China's fast-growing low-altitude insurance market opportunity projected at RMB 3.5 trillion by 2035

Shanghai, China--(Newsfile Corp. - May 27, 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 its wholly owned subsidiary, Sunshine Insurance Brokers ("Sunshine"), has officially launched a strategic partnership with Sichuan Fanmo Technology Co., Ltd. ("F+More"), an innovative Chengdu-based insurance solution provider for China's rapidly expanding low-altitude economy. This partnership marks Zhibao's official entry into China's fast-expanding drone and low-altitude economy insurance market. We believe the strategic partnership positions Company to capitalize on China's fast-growing low-altitude insurance market opportunity in the next decade.

Value Creation and Synergies in China's Drone Insurance Market

Following the signing of the cooperation agreement in February 2025, the strategic partnership became operational in April 2025; Sunshine has commenced delivering digital insurance brokerage services to F+More's initial client base. These services are [beginning to be delivered] across China through the joint distribution networks of both companies, with an goal to cover all provinces and regions in China. This broad geographic reach positions Sunshine to capture market share in the emerging low-altitude insurance segment-a relatively untapped market opportunity with substantial growth potential.

Through this strategic collaboration, Sunshine Insurance contributes its core competencies in digital insurance brokerage, proprietary Platform-as-a-Service (PaaS) technology infrastructure, and robust nationwide sales network. The integration of real-time flight data with dynamic risk assessment and alert mechanisms enables rapid online policy customization and distribution, as well as automated, event-driven claims processing. Through joint development and distribution of customized drone insurance products with F+More, we believe Sunshine is positioned to establish competitive advantages and drive innovation in the low-altitude insurance landscape across China and potentially in international markets.

We believe this technological integration creates differentiated service capabilities that management believes will enable the partnership to capture meaningful market share as the drone insurance sector scales.

Substantial Low-Altitude Economy Market Opportunities

The low-altitude economy, which includes commercial drones, urban air mobility, and drone logistics, is emerging as a strategic growth frontier with significant long-term potential. According to the Civil Aviation Administration of China (CAAC), China's low-altitude airspace economy exceeded RMB 500 billion in 2023 and is projected to reach RMB 3.5 trillion by 2035. Within this expanding ecosystem, the Swiss Re Institute projects the low-altitude insurance market could reach RMB 8-10 billion by 2035, highlighting the substantial growth potential for specialized insurance providers with appropriate capabilities and market positioning.

Recent industry developments have accelerated commercialization momentum in the global low-altitude economy. The successful completion of the world's first public road test flight of a flying car by California-based Alef Aeronautics in February 2025 signals a critical inflection point, with the sector transitioning from conceptual development to commercial deployment. China maintains strategic advantages in drones, low-altitude logistics, and flight control systems, with leading companies such as XPeng HT Aero and EHang positioned to benefit from accelerating commercialization trends.

We believe these market developments create a favorable environment for insurance providers with specialized capabilities and appropriate market positioning to pursue revenue opportunities as such insurance sector matures.

"We believe this partnership reflects our strategic vision to identify and capitalize on high-growth sectors such as the low-altitude economy," said Botao Ma, CEO of Zhibao Technology Inc. "F-More's deep expertise and extensive customer base, combined with Sunshine's digital insurance platform and strong marketing capabilities, create a powerful working synergy. We're confident this collaboration will accelerate access to tailored drone insurance solutions across China and set a new standard for innovation in the sector."

About Zhibao Technology Inc.

Zhibao Technology Inc. (NASDAQ: ZBAO) 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 over 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 acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.

About F+More

Sichuan Fanmo Technology Co., Ltd (F+More), founded in 2015, F+More is steadily advancing with a development strategy of "specialization, standardization, and globalization," committed to leveraging its years of accumulated massive data and algorithmic advantages to deeply address industry pain points, aiming to become a service-leading, objective, fair, and data- & algorithm-driven professional third-party service provider.

‌F+More has provided coverage for over twenty risk scenarios‌, including inspection, security, surveying and mapping, and has established after-sales cooperation with over 500 drone manufacturers.

Its three major products include F+More Feibao, F+More Excellent+, and F+More Cloud E. Among them, F+More Feibao is a drone insurance product that has been continuously operated for over a decade. F+More Excellent+ offers one-stop after-sales solutions for drone insurance to insurance institutions, while F+More Cloud E provides insurance institutions with a precise pricing engine for drone insurance. For more information, please visit: www.fmore.net.

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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