The revenue and earnings decline, combined with permanent delisting risk, are strongly negative. Monitor the outcome of the appeal to the Listing Council and any further dilution from the private placement shares. The OTC listing will likely continue to limit liquidity and institutional interest.
Price Chart
Executive Summary
Meihua International's FY2025 annual report reveals a 36% revenue decline to $61.79M and a 37% net income drop to $6.78M, with gross margin contracting from 34% to 31%. The company remains delisted from Nasdaq and trades OTC, with a pending appeal that was denied by the Panel and further appealed. The deteriorating fundamentals and continued OTC status signal significant distress.
Key Facts
- Revenue decreased 36% YoY to $61.79 million in FY2025 from $96.91 million in FY2024.
- Net income fell 37% to $6.78 million from $10.84 million.
- Gross margin declined to 31% from 34%.
- Shares were delisted from Nasdaq in December 2025 and now trade OTC; appeal of delisting was denied by Nasdaq Panel in February 2026.
- Internal control over financial reporting was ineffective due to lack of U.S. GAAP and SEC reporting expertise.
- The company raised $16.52 million via private placement in October 2025 and issued a leak-out agreement allowing selling of shares.
Financial Impact
Revenue down $35.1M, net income down $4.06M, gross profit down $14.1M.
Risk Factors
- Nasdaq delisting appeal may fail, keeping shares on OTC with limited liquidity.
- Further revenue erosion due to competition and reduced market demand.
- Potential shareholder litigation or SEC action from the Tai He fraud incident.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 14 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001213900-26-049081 |
| Document: ea028714301ex1-4.htm | 0001213900-26-049081 |
| Document: ea028714301ex4-19.htm | 0001213900-26-049081 |
| Document: ea028714301ex12-2.htm | 0001213900-26-049081 |
| Document: ea028714301ex12-1.htm | 0001213900-26-049081 |
| Document: ea028714301ex99-4.htm | 0001213900-26-049081 |
| Document: ea028714301ex13-2.htm | 0001213900-26-049081 |
| Document: ea028714301ex13-1.htm | 0001213900-26-049081 |
| Document: ea028714301ex8-1.htm | 0001213900-26-049081 |
| Document: ea028714301ex23-1.htm | 0001213900-26-049081 |
| Document: ea028714301ex23-2.htm | 0001213900-26-049081 |
| Document: 0001213900-26-049081-index-headers.html | 0001213900-26-049081 |
| Document: 0001213900-26-049081-index.html | 0001213900-26-049081 |
| Document: 0001213900-26-049081.txt | 0001213900-26-049081 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 26, 2026 17w ago | 6-K | $8.70 $6.62 | ▼ −23.91% | ▼ −26.96% | $6.86 (−21.15%) |
Apr 29, 2026 25w ago | 20-F | $8.88 $8.77 | ▲ +1.24% | ▲ +5.35% | $6.86 (+22.75%) |
Feb 27, 2026 34w ago | EFFECT | $9.00 $7.40 | ▼ −17.78% | ▼ −27.17% | $6.86 (−23.78%) |
US Market Status
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