Jiuzi Holdings Faces Challenges Amid Stock Splits and Losses
By ATTN Desk · Editorial oversight: Sean Han
Jiuzi Holdings Inc (NASDAQ: JZXN)
Company Overview
Jiuzi Holdings Inc (“Jiuzi” or the “Company”) is a China-based new energy vehicle (NEV) dealership group operating under the brand name Jiuzi. Founded in 2017 and headquartered in Hangzhou, the Company engages in:
- NEV Sales: Direct retail of electric vehicles
- Franchise Services: Support and management for franchised dealerships
The Company’s American Depositary Shares (ADS) trade on the NASDAQ under the ticker JZXN (CIK: 0001816172). Tao Li serves as Chief Executive Officer.
Corporate Structure
- Headquarters: Hangzhou, China
- Incorporation: Cayman Islands
- Segments: NEV Sales; Franchise Services
- Executive Leadership:
- Tao Li, Chief Executive Officer
- Share Capital Adjustments:
- 1-for-13 reverse split effective July 3, 2024
- 1-for-5 reverse split effective March 18, 2025
- Employees: Not publicly disclosed; workforce likely includes roles in automotive retail, technical support, and franchise management
Recent Developments and News
| Date | Event |
|---|---|
| July 1, 2024 | NASDAQ Alert #2024-320: Notification of the 1-for-13 reverse stock split |
| July 3, 2024 | Effective date of 1-for-13 reverse stock split (par value $0.00195 per share) |
| Nov 22, 2024 | GlobeNewswire: Termination of acquisition negotiations with Shenzhen Maigesong Electric Technology |
| March 5, 2025 | Extraordinary General Meeting called; adjourned to March 18, 2025 for quorum purposes |
| March 18, 2025 | Shareholders approve 1-for-5 stock split; authorized capital set at $9.75 million (25 billion shares) |
| June 3, 2025 | Filing of Form 20-F/A: Amended annual report for fiscal year ending December 31, 2024 |
Financial and Strategic Analysis
Key Trading Metrics (As of June 13, 2025)
| Metric | Value |
|---|---|
| Share Price | USD 1.6994 |
| Daily Change | –41.60% |
| Day’s Range | USD 1.43 – 2.88 |
| 52-Week Range | USD 0.998 – 7.820 |
| Volume | 735,323 |
| Average Volume (3 Mo) | 205,347 |
| Market Capitalization | USD 32.04 million |
| Enterprise Value | USD 32.07 million |
Profitability and Valuation
| Metric | Trailing Twelve Months (TTM) |
|---|---|
| Revenue | USD 1.4 million |
| Net Income | –USD 55.77 million |
| Diluted EPS | –USD 6.23 |
| Price/Sales | 18.61 x |
| Price/Book | 3.81 x |
| Enterprise Value/Revenue | 22.90 x |
| Profit Margin | 0.00% |
| Return on Assets (ROA) | –316.20% |
| Return on Equity (ROE) | –877.17% |
Balance Sheet and Cash Flow
- Total Cash: USD 943,430 (Most Recent Quarter)
- Total Debt/Equity: 2.51% (Most Recent Quarter)
- Levered Free Cash Flow: –USD 27.11 million
Strategic Considerations
- Share Consolidations: Reverse stock splits aim to comply with NASDAQ listing standards and improve share liquidity
- Acquisition Talks: Termination of negotiations with Shenzhen Maigesong Electric Technology may impact expansion efforts in battery production
- Governance Filings: The Form 20-F/A and Form 6-K disclosures in Q1–Q2 2025 outline corporate structure updates but provide limited forward guidance
Market Position and Industry Context
Jiuzi operates within China’s NEV retail sector, facing competition from:
- Established domestic automakers with integrated sales networks
- Multinational original equipment manufacturers (OEMs) expanding electric vehicle offerings
- Franchise and after-sales service models that necessitate capital and operational scale
As a company with a market capitalization of approximately USD 32 million, Jiuzi's capacity to invest in inventory, technology, and network expansion may be limited due to negative cash flow and ongoing net losses. Industry consolidation and regulatory incentives for electric vehicle adoption may create both challenges and opportunities.
TL;DR
- On June 13, 2025, shares of JZXN closed at USD 1.6994, down 41.60%, following a series of reverse stock splits (1-for-13 on July 3, 2024; 1-for-5 on March 18, 2025).
- The Company terminated acquisition negotiations with Shenzhen Maigesong on November 22, 2024.
- Fiscal 2024 results (filed via Form 20-F/A on June 3, 2025) show trailing twelve-month revenue of USD 1.4 million alongside net losses of USD 55.77 million.
- Continuous cash-flow deficits and elevated valuation multiples (EV/Revenue 22.9 x) highlight funding and profitability challenges.
- Future performance is contingent upon capital availability, execution of franchise growth, and potential strategic partnerships.