The reverse split is a clear signal of financial distress — the stock was trading at $0.0805, well below the $1.00 minimum bid price for Nasdaq continued listing. Monitor whether the post-split price stabilizes above $1.00 and whether the company can sustain compliance. The next quarterly report (10-Q) will be critical to assess if fundamentals support the higher nominal share price.
Price Chart
Executive Summary
Zhibao Technology Inc. is proceeding with a 1-for-50 reverse share split of its Class A ordinary shares, effective October 12, 2026, after shareholders approved the measure at an EGM on September 29, 2026. The split was triggered because the closing bid price on September 29, 2026 was $0.0805, below the $0.12 threshold. This is a Nasdaq compliance-driven action for a stock trading at sub-dollar levels, indicating the company is at risk of delisting without the split.
Key Facts
- Reverse share split at a 1-for-50 ratio of Class A ordinary shares, effective October 12, 2026.
- Triggered because the closing bid price on September 29, 2026 was $0.0805, below the $0.12 threshold.
- Shareholders approved the reverse split at an extraordinary general meeting on September 29, 2026.
- Par value of Class A ordinary shares will increase from $0.0001 to $0.005 per share.
- Fractional shares will be rounded up to the nearest whole share.
- Proportionate adjustments will be made to outstanding convertible notes, stock options, warrants, and equity plans.
- The stock will continue trading on Nasdaq under the symbol 'ZBAO' with new CUSIP G989MC114.
Financial Impact
The reverse split is a mechanical adjustment with no change to the company's market capitalization or fundamentals. The pre-split stock price of $0.0805 indicates severe distress, and the split is a compliance measure to maintain Nasdaq listing.
Risk Factors
- Post-split stock may still decline if fundamentals do not improve, potentially leading to delisting.
- Reverse splits often signal underlying financial weakness and can deter investors.
- The company may need to raise additional capital, causing further dilution.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-107822 |
| Document: ea0308064-6k_zhibao.htm | 0001213900-26-107822 |
| Document: ea030806401ex99-1.htm | 0001213900-26-107822 |
| Document: 0001213900-26-107822-index-headers.html | 0001213900-26-107822 |
| Document: 0001213900-26-107822-index.html | 0001213900-26-107822 |
| Document: 0001213900-26-107822.txt | 0001213900-26-107822 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 6-K | $0.0586 $0.0190 | ▲ +67.50% | ▲ +67.22% | $0.3270 (−458.02%) |
Sep 28, 2026 29d ago | 6-K | $4.35 $4.45 | ▲ +2.30% | ▲ +1.09% | $0.3270 (−92.48%) |
Sep 17, 2026 5w ago | 6-K | $0.1160 $0.0934 | ▲ +19.48% | ▲ +20.08% | $0.3270 (−181.90%) |
Sep 11, 2026 6w ago | EFFECT | $0.1490 $0.1144 | ▲ +23.22% | ▲ +23.00% | $0.3270 (−119.46%) |
Aug 31, 2026 8w ago | F-1 | $0.1697 $0.1557 | ▲ +8.25% | ▲ +8.11% | $0.3270 (−92.69%) |
Jul 31, 2026 12w ago | 6-K | $0.2001 $0.1881 | ▲ +6.00% | ▲ +9.51% | $0.3270 (−63.42%) |
Jul 22, 2026 13w ago | 6-K | $0.2620 $0.1590 | ▼ −39.31% | ▼ −36.91% | $0.3270 (+24.81%) |
Jul 15, 2026 14w ago | 6-K | $0.2538 $0.2522 | ▲ +0.63% | ▼ −1.04% | $0.3270 (−28.84%) |
Jul 6, 2026 16w ago | 6-K | $0.4210 $0.2895 | ▼ −31.24% | ▼ −30.95% | $0.3270 (−22.33%) |
Jun 5, 2026 20w ago | EFFECT | $0.6668 $0.6260 | ▲ +6.12% | ▲ +6.69% | $0.3270 (+50.96%) |
US Market Status
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