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Quhuo to Implement 1:900 ADS Ratio Change, Effective August 25, 2025.
ByAinvest
Thursday, Aug 21, 2025 2:45 pm ET1min read
Quhuo plans to change its ADS ratio from 1:10 to 1:900, effective August 25, 2025, pending SEC approval. This reverse ADS split will maintain ADS holders' proportional equity interest but will result in fractional ADSs being sold, with net proceeds distributed to holders. The change aims to address potential Nasdaq compliance challenges.
Beijing, China — Quhuo Limited (NASDAQ: QH), a workforce operational solutions platform in China, has announced a significant change in its American Depositary Shares (ADS) ratio. Effective August 25, 2025, pending SEC approval, the company will implement a 1-for-90 reverse ADS split, altering the ratio from one ADS representing ten Class A ordinary shares to one ADS representing 900 Class A ordinary shares [1].This move, which effectively functions as a reverse ADS split, is designed to address potential Nasdaq compliance challenges and stabilize the company's stock performance. Quhuo Limited's stock has experienced significant volatility, declining over 92% in the past six months, and the company aims to mitigate this volatility through the ADS ratio change [1].
The new ADS ratio will maintain ADS holders' proportional equity interest, but it will result in fractional ADSs being sold. The net proceeds from these sales will be distributed to entitled ADS holders after deducting fees, taxes, and expenses. Quhuo has filed a post-effective amendment to its ADS Registration Statement on Form F-6 with the U.S. Securities and Exchange Commission to reflect this change [1].
The company's decision to alter its ADS ratio reflects a strategic move to address shareholder concerns and potentially stabilize its stock performance. The change is subject to regulatory approval and is anticipated to impact the company's share structure significantly [2].
In other recent news, Quhuo Limited announced a strategic partnership with NIU World to establish a chain brand incubation platform focused on fresh beef in China. This partnership is part of Quhuo’s efforts to expand its operations and enhance its market presence. The collaboration aims to create a vertically integrated supply chain ecosystem that spans from slaughterhouses to end-user dining and retail channels [1].
References:
[1] https://za.investing.com/news/company-news/quhuo-to-implement-1for90-ads-ratio-change-93CH-3849342
[2] https://www.ainvest.com/news/quhuo-plunges-37-5-ads-ratio-change-2508/
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