Zhibao Technology Inc. (NASDAQ: ZBAO) stock witnessed a notable after-market surge on last Friday, reflecting investor optimism following the announcement of a significant new contract. ZBAO shares rose 16.67% after close of the market, bringing the stock price to $3.92.
Zhibao Formed A Strategic Partnership
Zhibao Technology disclosed its successful bid to provide high-end medical Third-Party Administration (TPA) services to the People’s Insurance Company of China Limited (PICC Group), one of China’s largest insurance conglomerates.
This contract designates Zhibao as one of the four exclusive vendors authorized to deliver TPA services across all subsidiaries of the PICC Group, including PICC Property & Casualty (P&C), PICC Health, and PICC Life. The contract, valued at CNY 28 million, will span a three-year period from 2024 to 2027.
Competitive Selection Process
The selection process for this tender was highly competitive, with Zhibao emerging as one of the four providers chosen from a pool of eight candidates. Bidders were evaluated based on several criteria, including operational capability, experience in providing similar services, pricing, and the quality of the proposed service plan.
The assessment was conducted jointly by PICC Group and an independent evaluator, underscoring the rigorous standards Zhibao met to secure this contract.
ZBAO Expanding Market Presence and Enhancing Profitability
This partnership with PICC Group presents Zhibao with a unique opportunity to leverage PICC’s extensive network, which includes over 3,000 branch offices and 36 provincial-level branches across China.
The contract will not only bolster Zhibao’s Managing General Underwriting (MGU) division but also deepen its strategic relationship with PICC. Furthermore, it is expected to enhance Zhibao’s credibility in the insurance sector, create a reliable revenue stream, diversify its business activities, and strengthen its path to long-term profitability.
PICC Group, recognized as the ninth-largest insurance group globally by premiums in 2021 and the second-largest P&C insurer in 2023, provides a solid foundation for Zhibao to further its growth and solidify its position in the high-end medical services market.
