Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) announced a 50‑for‑1 reverse stock split that will take effect on the opening of trading on December 12, 2025. The board approved the consolidation on November 12, 2025, and the announcement was made on December 9, 2025. The move will reduce the number of outstanding shares from roughly 161 million to about 3.2 million and raise the par value of each share from $0.000001 to $0.00005.
The consolidation is a direct response to Nasdaq’s minimum bid price rule and market‑value rule. In July 2025, Autozi received a notice that its closing bid price had fallen below the $1.00 minimum and that its market value of listed securities was below the $50 million threshold. A subsequent notice in November 2025 added a $15 million minimum market‑value‑of‑publicly‑held‑shares requirement. By consolidating shares, Autozi expects its share price to rise above $1.00 and its market value to exceed the required thresholds, thereby averting a delisting action that would force the company into over‑the‑counter trading.
Autozi’s financial fundamentals have been deteriorating. The company reported a net loss of $69.67 million for the twelve months ended March 31, 2025, compared with a $32.5 million profit in the same period a year earlier. Revenue for that period was $156.47 million, a decline that reflects weaker demand in its core automotive services and the impact of a negative equity position. Management has highlighted that the reverse split is a technical fix that does not address the underlying liquidity challenges or the loss‑making trajectory.
Following the announcement, the market reacted sharply: the stock fell 25 % in after‑hours trading on December 9, 2025. Investors interpreted the reverse split as a symptom of deeper financial distress rather than a positive development. The steep decline mirrored the company’s history of Nasdaq non‑compliance notices and the consensus “sell” rating from analysts, underscoring the perception that the consolidation is a stop‑gap measure.
In addition to the consolidation, Autozi announced a strategic partnership with Wanshan International Trading to develop a cross‑border supply‑chain cloud platform, targeting $1 billion in overseas sales within three years. Management emphasized that the partnership is part of a broader strategy to diversify revenue streams and improve operational efficiency, but noted that the company remains focused on restoring profitability and meeting regulatory requirements.
The share consolidation is a necessary but limited step. While it may lift the share price above Nasdaq’s minimum bid requirement, it does not resolve the company’s ongoing losses, negative equity, or the risk of delisting if compliance is not achieved. Investors and analysts will continue to monitor Autozi’s ability to generate sustainable earnings and to meet the market‑value thresholds required for continued Nasdaq listing.
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