Autozi Internet Technology AZI shares plunged 10.30% in pre-market trading amid delayed CDIB investment and reverse stock split.

Monday, Dec 29, 2025 4:32 am ET1min read
Aime RobotAime Summary

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(AZI) shares fell 10.3% pre-market amid delayed CDIB investment and reverse stock split impacts.

- A 1-for-50 reverse split reduced float size, while $980M sales MOU lacks revenue visibility and faces execution risks.

- Cross-border platform launch raises doubts about scalability and margins in fragmented automotive services markets.

- With 95% YTD decline, investors scrutinize capital efficiency and China's hyper-fragmented retail sector positioning.

December 29, 2025 -

(AZI) shares plunged 10.2981% in pre-market trading, marking a sharp reversal following recent developments. The decline comes amid mixed signals from the company’s strategic initiatives and capital structure adjustments.

A key catalyst appears to be the delayed impact of CDIB Capital’s proposed $300 million investment at $5 per share, announced on December 17. While the infusion could bolster the company’s liquidity, investors may be recalibrating expectations as the transaction remains unconfirmed. Separately, a $980 million memorandum of intent for vehicle sales signed on December 16 has yet to translate into immediate revenue visibility, raising questions about execution risks.

Compounding market skepticism is the company’s recent 1-for-50 reverse stock split on December 12, which drastically reduced the float and potentially exacerbated volatility. Autozi’s cross-border supply chain platform launch in late December, aimed at accelerating globalization, has also faced scrutiny over operational scalability and margin pressures in its fragmented automotive services market.

With the stock down nearly 95% year-to-date, the sharp pre-market drop reflects ongoing uncertainty around capital allocation efficiency and competitive positioning in China’s hyper-fragmented automotive retail sector. Investors will likely monitor follow-up actions on the CDIB deal and quarterly demand trends to gauge near-term trajectory.

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