Meihua International Medical Technologies Co., Ltd. (MHUA) received a Nasdaq delisting notice dated December 2, 2025, announced on December 5, 2025, citing non‑compliance with Listing Rule 5550(a)(2) (bid price below $1 for 30 consecutive business days) and Rule 5550(a)(4) (public float below 500,000 shares). Trading of the company’s shares will be suspended on December 9, 2025, and MHUA has until that date to appeal the decision.
The company has a history of compliance challenges. It received a non‑compliance notice on December 3, 2024, and was granted extensions to June 2, 2025, and then to December 1, 2025. In June 2025 it transferred to the Nasdaq Capital Market to gain additional time. A 1:16 reverse stock split executed on November 24, 2025, was intended to lift the share price above $1, but the price failed to stay above the threshold for the required consecutive days.
Financially, Meihua reported fiscal‑year 2024 revenue of $96.91 million, a 0.2% decline from $97.10 million in 2023, and net income of $10.84 million, down 6.1% from $11.59 million in 2023. In the first half of 2024, gross margin fell to 33.5% from 35.6% in the same period of 2023. These modest declines in revenue and margin contributed to the sustained low bid price and reduced public float that triggered the delisting notice.
The delisting signals significant liquidity constraints and a likely shift to over‑the‑counter markets, where bid‑ask spreads widen and institutional interest diminishes. Management has indicated a strategic pivot toward high‑end medical devices, but the current regulatory setback may delay that transition and limit the company’s ability to raise capital through equity markets.
The market reacted strongly, with trading volume 5.9 times the average, indicating heightened selling pressure as investors reassessed the company’s liquidity and compliance status.
The company has until December 9 to appeal. If the appeal is unsuccessful, MHUA will likely move to OTC markets, and its ability to fund the high‑end device strategy will depend on alternative financing or restructuring.
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