Meihua International Medical Technologies Co., Ltd. (NASDAQ: MHUA) will carry out a 1‑for‑100 reverse share split of its ordinary shares, effective at the opening of business on Monday, November 24, 2025. The split will reduce the number of outstanding Class A ordinary shares from roughly 56 million to about 0.56 million and raise the par value from $0.0005 to $0.05 per share. The new CUSIP number for the shares will be G5966G116.
The reverse split is a compliance measure to bring the company’s share price above Nasdaq’s minimum bid price of $1.00. Meihua has faced similar compliance challenges in the past, having regained compliance in October 2024 after a non‑compliance notice in April 2024. In June 2025 the company transferred its listing to the Nasdaq Capital Market, which granted an additional 180‑day extension to meet the bid‑price requirement, with a deadline of December 1, 2025. The split is being implemented just before that extended deadline to avoid the risk of delisting.
Financially, Meihua’s most recent annual report shows a modest decline in revenue—$96.91 million for the year ended December 31, 2024 versus $97.10 million in 2023—and a 7 % drop in net income to $10.84 million. The company’s balance sheet remains strong, with low leverage, but its Altman Z‑Score falls into a grey area, indicating some financial stress. The reverse split is therefore part of a broader effort to stabilize the company’s market presence while it works to improve underlying earnings momentum.
The reverse split will also apply to shares issuable upon exercise of outstanding derivative securities and equity incentive plans, with proportional adjustments to exercise prices and share counts. No fractional shares will be issued; any fractional interests will be rounded up to the nearest whole share. The company’s board approved the plan on November 8, 2025, and shareholders holding shares in book‑entry form or brokerage accounts need not take any action. The split is part of the company’s dual‑class share structure, which is intended to provide long‑term governance stability while maintaining compliance with Nasdaq rules.
Investor sentiment has been cautious following the announcement. Many market participants view a reverse split as a signal of financial distress rather than a positive strategic move, reflecting concerns about the company’s ability to organically lift its share price and address the underlying revenue and earnings trends.
The reverse split will bring Meihua’s share price back into compliance with Nasdaq’s minimum bid price requirement, allowing the company to maintain its listing on the Nasdaq Capital Market. While the action addresses the immediate regulatory hurdle, investors will continue to monitor the company’s financial performance and strategic initiatives as it seeks to restore confidence in its long‑term prospects.
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