Jiuzi Holdings, Inc. (JZXN) has approved a 1‑for‑40 reverse stock split that will reduce the number of outstanding shares from 50,231,389 to 1,255,785 and raise the post‑split par value to US$0.078 per share. The split will take effect at 4:01 p.m. ET on Wednesday, December 10 2025, with trading on the split‑adjusted basis beginning Thursday, December 11 2025.
The reverse split is a compliance measure designed to lift the company’s share price above Nasdaq Capital Market’s minimum bid requirement of US$1.00. Jiuzi has previously executed 1‑for‑18 and 1‑for‑13 splits in July 2023 and July 2024, respectively, underscoring a recurring struggle to maintain the minimum bid price and a heightened risk of delisting if the requirement is not met.
Jiuzi’s financial profile highlights the urgency of the split. The company reported operating and net margins of –41,253.06 % and –44,917.35 %, respectively, and generated only US$97,465 in revenue for the most recent 12‑month period. Its Altman Z‑Score of –24.01 places it in the distress zone, and the stock has fallen 86.33 % over the past 52 weeks. These figures illustrate a severe liquidity and profitability crisis that makes the reverse split a critical, rather than routine, action.
Beyond its dealership operations in China’s new‑energy vehicle market, Jiuzi has announced a strategic pivot into cryptocurrency, launching a Bitcoin treasury and partnering on Bitcoin yield products. The move signals an attempt to diversify revenue streams amid the company’s ongoing financial challenges, but it does not alter the immediate need to satisfy Nasdaq’s listing rules.
The reverse split, while preserving the company’s Nasdaq presence, signals to investors that Jiuzi remains in a precarious financial position. The action is a stop‑gap measure to avoid delisting, and it reflects the company’s continued difficulty in generating sustainable earnings and meeting regulatory thresholds. Investors should view the split as an indicator of ongoing distress rather than a sign of operational improvement.
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