Authorities have initiated an investigation, which is currently in the preliminary stage.

Following reports of the high-rebate collapse involving Baibaojun, a company incubated by ZA ONLINE (06060.HK), the insurer clarified on November 12 that its subsidiary, ZhongAn Technology, has transferred all its equity in Baibao (Shanghai) Technology Co., the operator of Baibaojun.

ZA ONLINE stated that Baibao’s legal representative and actual controller is Li Xuefeng. ZhongAn Technology had invested via intangible asset valuation but was not involved in actual operations. Since 2023, Baibao ceased providing operational updates, prompting ZhongAn Technology to decide on exiting in 2024. By May 2025, it signed a share transfer agreement with other shareholders to divest its entire stake.

"Recently, we became aware of the incident through user feedback. Authorities have opened an investigation, which remains ongoing. As fellow victims, we are closely monitoring developments," ZA ONLINE said.

Discussions about "Baibaojun’s collapse" have intensified on social media.

User reports and Baibaojun’s WeChat mini-program reveal its customer acquisition model: offering memberships priced at 89 yuan with promised rebates of 100-yuan JD.com (JD) gift cards and substantial reward points, redeemable for cash or more gift cards. However, these benefits have since become unavailable. Some users estimate losses exceeding 100 million yuan, though this figure remains unverified.

Baibao (Shanghai) Technology was established in April 2021 with a registered capital of 12.16 million yuan (6.92 million paid-in). Li Xuefeng, its legal representative, previously served as CTO of ZhongAn Technology.

Industry analysts suggest the platform initially operated as a traffic-sharing model but later resembled a high-return Ponzi scheme.