Comprehensive 10-K Review: Jingbo Technology, Inc.

In this deep dive into the recently filed 10-K for the fiscal year ended February 28, 2025, we unpack Jornbo Technology, Inc.’s ("Jingbo" or the "Company") corporate structure, business overview, financial performance and key risks. This analysis is intended to give investors a clear picture of Jingbo’s current standing, its operating model in China, and whether its common stock offers potential upside.

Warren.AI 💰 3.5 / 10

---

1. Company Snapshot and Corporate History

• Incorporation & Evolution. Jingbo (formerly SavMobi Technology, Inc.) was founded as a Nevada holding company in March 2015. In mid-2022, it shifted strategy by executing a share-exchange (January 2023) with Intelligence Parking Group Ltd. ("Intelligence"), a Cayman Islands entity whose Chinese operations form the core of Jingbo’s current smart parking business.
• Reverse Stock Split. On February 5, 2024, management implemented a 1-for-200 reverse split, bringing issued shares down to 5.3 million while raising authorized shares to 50 billion.
• Acquisition of Xinghe. In December 2024, the Company issued 550 million new shares to acquire 100% of Xinghe Technology and its parking-software asset subsidiary, Shaoxing Keqiao Zhuyi Technology.

2. Business Model & Operating Structure

2.1 VIE Structure

To comply with Chinese regulations barring direct foreign ownership in certain sectors (e.g., value-added telecom services powering smart parking), Jingbo operates via a series of contractual agreements with these Chinese “variable interest entities” ("VIEs"). Key points:

• WFOEs & VIEs. Jingbo HK holds two Wholly Foreign-Owned Enterprises (WFOEs) in China. Each WFOE signs 5-year service/call-option/power-of-attorney contracts with its VIEs, allowing Jingbo to:

1. Govern operations and board votes;
2. Receive all profits via service fees;
3. Acquire all equity in the VIE if needed.

• Accounting Consolidation. U.S. GAAP requires reflecting the assets/liabilities and P&L of these VIEs in Jingbo’s consolidated statements, even though there’s no legal equity ownership.
• Risks. Contractual enforcement is untested in China’s courts; any clampdown on the VIE model could threaten Jingbo’s control of its operating subsidiaries.

2.2 Smart Parking & Beyond

• Primary Revenue: Smart parking operations via the “Any-E” platform (parking-fee scheduling, license-plate recognition, 24/7 app access). Contracts / joint-ventures / PPP models with local governments and unstaffed lots drive recurring parking-fee income.
• Software & Hardware: System apps, cloud boxes, IoT sensors sold to parking-lot operators (one-time plus maintenance fees).
• Ecosystem & Diversification: E-commerce O2O auto-aftermarket marketplace, “Any-E Shop” with co-sells from parking customers. Recent expansion into winery product sales via the same digital channels.

3. Financial Performance Overview

Below is a digest of Jingbo’s key financials for FY2025 vs. FY2024 (period ended Feb. 28, 2025 vs. Feb. 29, 2024):

Metric	FY2025 (US$)	FY2024 (US$)	% Change
Total Revenue	2.14 million	1.58 million	+35%
—Parking Fees	1.66 million	1.58 million	+5%
—Winery Sales	0.42 million	0	new line
Cost of Goods Sold	(2.54 million)	(2.12 million)	+20%
Gross Profit	(0.40 million)	(0.54 million)	+27%
Operating Expenses	(5.09 million)	(4.57 million)	+12%
Net Loss	(6.02 million)	(5.48 million)	+10%
EPS (Basic & Diluted)	(0.05)	(1.00) *	NA
Cash, End of Period	0.11 million	0.15 million	(25%)
Working Capital Deficit	(6.6 million)	(24.4 million)	improved
Accumulated Deficit	(35.3 million)	(29.3 million)	(21%)

*Note: for FY2024, EPS was restated after a 1-for-200 reverse split.

3.1 Revenue & Cost Dynamics

• Revenue Growth. Parking fees modestly increased +5%. Winery sales introduced in 2025 drove a new $ 420,000 line.
• Rising COGS & Impairments. COGS jumped +20% as the Company added winery inventory and platform-maint costs. Non-cash ceiling impairments of PP&E added $ 433,000 in losses.
• Operating Burn. G&A costs remain high owing to corporate overhead in Nevada/China, professional fees and R&D build-out.

3.2 Cash & Liquidity

• Operating Cash. Burn of $ 1.33 million in FY2025 (improved from $ 1.83 million in FY2024).
• Investing. One-time pro forma uses: payment for the Xinghe acquisition and hardware build out.
• Financing. Net borrowings of $ 0.51 million in FY2025 vs. $ 1.71 million in FY2024, all via related-party & onshore loans.
• Going Concern. Management discloses substantial doubt: burn, negative working capital, and $ 35 million deficit call for repeated financing to continue operations.

4. Liquidity & Capital Resource Needs

Jingbo’s run-rate cash use requires bridging loans, equity infusions or huge uptick in parking/concession revenues. Key catalysts/needs:

1. Access to capital. Related-party & banking lines to fund working capital and catalyst hires.
2. Profitability path. 45%+ gross margin is needed on core parking fees via automation and scale. Winery sales and marketplace add- on revenue must ramp.
3. Cost control. G&A and R&D will need to be right-sized or funded by equity/incentive programs.

Absent fresh funds, Jingbo may face a cash squeeze or consolidation of its portfolio.

5. Key Risks & Accounting Considerations

5.1 VIE & Regulatory Risk

• VIE Model Vulnerability. Unproven in Chinese courts; any government clampdown on VIE structures or adverse interpretations of circulars may force unwinding or partial loss of control over core subsidiaries.
• New Filings. PRC Trial Measures (effective Mar 31, 2023) require filings with CSRC for existing public Chinese companies under OTC. Non-compliance could trigger sanctions. Archives Rules add data-security & secrecy protocols on state-secrets.

5.2 Going Concern & Related-Party Loans

• Burn & Deficit. Recurring net losses and highly negative working capital raise questions on capital sufficiency.
• Related-Party Debt. Approx. $ 21.5 million in PRC related-party tenors secured by Sino-loans; rates deferred until 2028–29, then 3–4% kicking in.

5.3 Accounting Highlights

• Restatements. 2024 EPS & weighted share counts were restated for a 1-for-200 reverse split.
• Impairments. PPE partial write-offs ($ 433,000), VIE intangible/ lease impairments.
• Leases. $ 74,000 annualized operating lease rents on multiple offices, lots.

6. Investment Score & Outlook

Score: 3.5 / 10

Why 3.5?

• Strong technology platform and heavy IoT/IP investment – positive for future scale.
• VIE structure and persistent losses make equity precarious.
• Significant related-party and banking debt loads; going-concern risk until break-even.
• Recent acquisitions diversify revenue but extend cash burn.

Bull Case:

• Smart parking market in China could grow 30%+ p.a.
• Automation + Unattended operations drive 50%+ gross margins.
• Successful integration of Xinghe & winery operations boosts digital wallet adoption.

Bear Case:

• VIE crackdown could force divestitures.
• Capital markets hush on Chinese OTC; future equity raises are dilutive or blocked.
• Park-lot competition from Alibaba/Tencent JV platforms.
• Cash drain forces distressed asset sales.

7. Conclusion

Jingbo Technology offers a compelling technology blueprint for smart parking and O2O auto services. Its footprint across 30+ cities, partnerships with local authorities, emerging marketplace integration and cloud-based IoT stack are bright spots. Yet sustained losses, steep capital needs and a complex VIE model in China create meaningful execution and regulatory risk.

Investors seeking high-risk/high-reward China plays— plus exposure to infrastruc­ture automation—may find auditions in Jingbo attractive. But for risk-averse portfolios or those fearing VIE vulnerabilities, the current balance sheet may be tough to justify.

---

Read our detailed analysis of Jingbos 10-K filing, see our full scorecard, and stay ahead of Chinese tech plays at our blog: [BLOGPOSTURL]

---

Disclaimer: This analysis is based on current public filings and is for informational purposes only. It does not constitute investment advice. Always consult a financial advisor before making investment decisions.