Price Surge and NASDAQ Warning Prompt New Century Logistics to Eye Reverse Split

Introduction

New Century Logistics BVI Ltd (NASDAQ: NCEW) is a British Virgin Islands–incorporated holding company that provides freight forwarding and related logistics services through its subsidiaries based in Hong Kong. As of September 9, 2025, its ordinary shares closed at 0.6250 USD, reflecting a 27.92% increase on a trading volume of 116,941 shares on the NASDAQ Stock Market.

Corporate Structure

New Century Logistics operates under a two-tier structure consisting of a BVI parent company and operating subsidiaries headquartered in Hong Kong. Its service portfolio includes air and ocean export and import freight forwarding, warehouse and distribution services, off-airport cargo security screening, palletization, preparation of shipping documentation, arrangements for customs clearance, and cargo handling at ports. The company reports serving over 5,000 corporate clients across more than 140 international routes. Governance is overseen by a seven-member board comprising three executive directors and four independent non-executive directors.

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Developments and News

On July 8, 2025, New Century Logistics replaced ZH CPA, LLC with AOGB CPA Limited as its independent registered public accounting firm, following the acknowledgment of prior material weaknesses in U.S. GAAP compliance. Effective August 1, 2025, executive director Peter Ng Yi To resigned; Henry Shing Kwan Lam and Long Kin Liu were appointed as executive directors, and Ho Kwan Wong joined as an independent non-executive director and chair of the Audit Committee. On August 12, 2025, the company received notification from NASDAQ regarding non-compliance with the minimum bid price requirement, having closed below 1.00 USD for 30 consecutive business days. The company has until February 9, 2026, to regain compliance, and management is evaluating options, including a potential reverse stock split.

Financial and Strategic Analysis

For the fiscal year ended September 30, 2024, consolidated revenue rose 44.64% year-over-year to 52.18 million USD. Net earnings for the period were 220,643 USD, representing a decline of 51.44% compared to the prior year. The revenue increase reflects higher shipment volumes and expanded route coverage, while the decline in earnings was attributed to elevated operating and compliance costs. Management’s strategic focus includes monitoring share price performance, evaluating adjustments to capital structure to meet listing standards, and strengthening financial reporting controls under the new auditor.

Market Position and Industry Context

New Century Logistics operates within the international freight forwarding and logistics sector, which is an integral part of global supply chains. Its service model—from cargo pick-up and security screening to customs clearance and final-mile distribution—positions the company among regional peers in Hong Kong’s logistics hub. The sector is influenced by geopolitical trade dynamics, fuel price fluctuations, and regulatory environments impacting cross-border shipments.

tl;dr

• Share price rose to 0.6250 USD (+27.92%) on September 9, 2025, with a volume of 116,941 shares.
• NASDAQ notified on August 12, 2025, of a minimum bid price deficiency; compliance deadline is February 9, 2026.
• Management is considering a reverse stock split and other strategies to meet listing requirements.
• Board changes effective August 1, 2025, include two new executive directors and a new chair of the Audit Committee.
• Auditor changed on July 8, 2025, to address previously identified material weaknesses in financial reporting.