WORK Medical Technology Group Ltd. (NASDAQ: WOK) announced a 1‑for‑100 reverse stock split of its ordinary shares, effective December 29, 2025. The split consolidates each 100 shares into one, leaving the company’s ticker unchanged and issuing a new CUSIP number. Board and shareholder approval was obtained, and the transaction will not alter the overall value of holdings or ownership percentages, aside from rounding up fractional shares.
The reverse split follows a prior 1‑for‑100 split that took effect on October 21, 2025, and is part of the company’s ongoing effort to meet Nasdaq’s minimum bid‑price requirement. After receiving a delisting determination letter in October, the company secured an extension until April 2026, giving it a narrow window to restore compliance. The December split is therefore a routine compliance measure but a material event because it directly addresses the risk of delisting and preserves the company’s listing status.
Financially, WORK reported a net loss of $3.5 million for fiscal year 2024, a reversal from a modest $0.06 million profit in 2023. Revenue fell 15.2% year‑over‑year, driven by a 69.4% decline in mask sales, while sales of other medical devices increased 17.7% to $9.4 million. Gross profit margin contracted from 30.5% in 2023 to 24.9% in 2024, reflecting lower‑margin product mix and pricing pressure. These figures illustrate the company’s ongoing profitability challenges and the need for the reverse split to maintain the required bid price.
The reverse split is designed to raise the per‑share price above Nasdaq’s $1.00 minimum, thereby preventing a delisting action. By consolidating shares, the company can increase the bid price without changing the total market value or ownership stakes. The move is a compliance tool rather than a strategic expansion, but it is material because it alters the equity structure and signals the company’s continued struggle to meet listing standards.
CEO Shuang Wu emphasized that the company is pursuing a strategic transformation, shifting focus from mask production to higher‑margin medical devices and investing in marketing to support that shift. Wu noted that the company’s financial performance is improving modestly, but the reverse split remains a necessary step to maintain Nasdaq compliance while the company works to strengthen its product mix and profitability.
The reverse split underscores the company’s precarious position. While it preserves the listing, the underlying financial distress—declining revenue, shrinking margins, and a heavy reliance on lower‑margin mask sales—remains. Nasdaq’s extension provides temporary relief, but the company must accelerate margin recovery and revenue growth to avoid future compliance risks. Investors should monitor subsequent compliance updates and the company’s progress on its strategic transformation.
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