The company faces existential near-term risk from Nasdaq delisting. The authorized reverse stock split (10:1 to 200:1) is the primary tool to regain bid price compliance, but the hearing is not until May 19, 2026. Monitor for the split ratio announcement and any subsequent trading dynamics. The fundamental business deterioration (revenue down 3 years straight, gross margin at 10.8%) suggests the stock is a high-risk distressed play regardless of the listing outcome.
Price Chart
Executive Summary
Oriental Rise Holdings' FY2025 20-F reveals a severe deterioration in fundamentals: revenue fell 18.6% YoY to $12.2M, gross profit collapsed 66.6% to $1.3M, and the company swung to an operating loss of $0.9M. Gross margin compressed from 26.2% to 10.8% due to oversupply-driven price declines in white tea. The company also received a Nasdaq delisting notice post-period for non-compliance with the $1.00 bid price rule, and has material internal control weaknesses. A prior 6-K authorized a reverse stock split (10:1 to 200:1), which is now critical for regaining compliance.
Key Facts
- Revenue declined 18.6% YoY to $12.2M (FY2024: $15.0M)
- Gross profit fell 66.6% to $1.3M; gross margin collapsed to 10.8% from 26.2%
- Operating loss of $0.9M vs operating profit of $2.1M in FY2024
- Net profit declined 67.4% to $0.7M (FY2024: $2.1M)
- Average selling price of primarily-processed white tea fell from $23/kg to $20/kg
- Cash used in operations of $0.6M vs cash generated of $3.2M in FY2024
- Received Nasdaq delisting notice on April 15, 2026 for bid price <$1.00; hearing scheduled May 19, 2026
- Material weaknesses in internal control over financial reporting identified
- Prior 6-K (April 7, 2026) authorized board to consolidate shares at 10:1 to 200:1 ratio
- Founder Chun Sun Wong controls 96.47% voting power via Founder Preferred Shares
Financial Impact
Revenue decline of $2.8M (18.6%), gross profit decline of $2.6M (66.6%), net profit decline of $1.4M (67.4%)
Risk Factors
- Imminent Nasdaq delisting risk; hearing on May 19, 2026
- Continued revenue and margin erosion from tea market oversupply and economic slowdown in China
- Negative operating cash flow ($0.6M used) raises liquidity concerns for a $2M market cap company
- Material internal control weaknesses could lead to restatements or SEC action
- Multiple regulatory non-compliances (forest rights, fire safety, labeling, social insurance) expose the company to fines and operational disruption
- Extreme shareholder concentration (96.47% voting control by founder) limits minority shareholder influence
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001213900-26-050088 |
| Document: ea028833701ex12-2.htm | 0001213900-26-050088 |
| Document: ea028833701ex12-1.htm | 0001213900-26-050088 |
| Document: ea028833701ex13-2.htm | 0001213900-26-050088 |
| Document: ea028833701ex13-1.htm | 0001213900-26-050088 |
| Document: 0001213900-26-050088-index-headers.html | 0001213900-26-050088 |
| Document: 0001213900-26-050088-index.html | 0001213900-26-050088 |
| Document: 0001213900-26-050088.txt | 0001213900-26-050088 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 9, 2026 19w ago | 6-K | $0.5234 $0.5610 | ▼ −7.18% | ▼ −4.77% | — |
May 18, 2026 23w ago | 6-K | $0.4100 $0.4600 | ▼ −12.20% | ▼ −10.58% | — |
Apr 30, 2026 25w ago | 20-F | $0.4810 $0.4500 | ▲ +6.44% | ▲ +8.17% | — |
Apr 20, 2026 27w ago | Press Release | $0.4970 $0.4840 | ▲ +2.62% | ▲ +3.70% | — |
Apr 15, 2026 27w ago | 6-K | $2.29 $1.80 | ▼ −21.19% | ▼ −22.80% | — |
Mar 19, 2026 31w ago | EFFECT | $0.5270 $0.8520 | ▲ +61.67% | ▲ +63.88% | — |
Mar 16, 2026 32w ago | F-1/A | $0.4030 $0.7610 | ▼ −88.83% | ▼ −91.49% | — |
Mar 10, 2026 33w ago | F-1 | $0.6800 $0.4030 | ▲ +40.74% | ▲ +39.83% | — |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers