Big Tree Cloud Holdings Limited announced a strategic pivot into artificial‑intelligence on January 2 2026, marking a departure from its long‑standing focus on feminine‑hygiene products. The company also announced the resignation of board member Yumao Huang and the appointment of Xiaoxuan Zhu as a director and Co‑Chief Executive Officer alongside Chairman Wenquan Zhu, a move that signals a decisive leadership overhaul aimed at accelerating the AI transition.
Ms. Zhu, a former intern at Guangdong Dashuyun Investment Holding Group, holds a Bachelor of Laws in Sociology from Peking University and is pursuing a Master’s degree in Management at the University of Chicago Booth School of Business. Her appointment brings a blend of legal, academic, and industry experience to the board and executive team, positioning the company to navigate the complex regulatory and technical landscape of AI. The new Co‑CEO structure is intended to split strategic oversight and operational execution, a rare arrangement in the company’s history.
The AI expansion is supported by a letter of intent with AI expert Canming Wang, a top‑50 Kaggle competitor, and the appointment of Hu Huang as Director of the Technology Department of the AI Ecosystem Division. These hires are designed to build a robust technical foundation and accelerate product development in data‑center and cloud‑based AI services, aligning the company with the broader industry trend of integrating advanced technology into consumer‑goods businesses.
Financially, Big Tree Cloud reported a net loss of $32.5 million for the fiscal year ended June 30 2025 and an operating cash‑flow outflow of $6.5 million. The company also faced Nasdaq compliance notifications regarding its minimum bid‑price requirement, underscoring ongoing liquidity and valuation challenges. The sale of a manufacturing facility in September 2024 preceded a revenue decline, highlighting the need for the AI pivot to restore growth and profitability.
Chairman and Co‑CEO Wenquan Zhu emphasized that the AI strategy is “a long‑term, sustainable value‑creation plan that leverages our existing customer base while opening new high‑growth markets.” He added that disciplined cost management and strategic talent acquisition will be key to achieving the company’s ambitious transformation goals.
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