BEIJING - Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI), a prominent automotive service provider in China with a market capitalization of $144 million, has announced strategic share transfers by its principal shareholder and CEO, Dr. Houqi Zhang. According to InvestingPro data, the company's stock has experienced significant volatility, falling nearly 48% over the past six months. The transfer involves 2,800,000 shares of Autozi's common stock to two consulting firms, Leisure Stream Limited and CG Summit Inc.
These transactions are part of a strategic move by Dr. Zhang, who aims to explore new opportunities for Autozi's expansion, particularly into the North American market. By engaging with these consulting firms, Autozi seeks to enhance its global presence and capabilities. The company's financial position shows moderate debt levels and revenue growth of 8.6% in the last twelve months, though InvestingPro analysis indicates challenges with profitability and liquidity metrics. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis to better understand Autozi's growth potential.
Leisure Stream Limited will provide financial analysis and market research related to the U.S. market, while CG Summit Inc. will focus on business development and talent acquisition, including introductions to U.S. auto parts supply chain companies and local dealerships. In exchange for their services, Leisure Stream Limited and CG Summit Inc. will receive 2,000,000 and 800,000 shares of Autozi's common stock, respectively.
The share transfers are facilitated by the waiver of a lock-up restriction by Kingswood Capital Partners (WA:CPAP), LLC, the underwriter of Autozi's recent initial public offering. This waiver allows the transfers to proceed on December 3, 2024, with the new shareholders agreeing to a six-month lock-up period from the date of the final prospectus issued on August 27, 2024.
Dr. Zhang expressed that these partnerships reflect a personal commitment to long-term value creation for Autozi's shareholders. The initiative is designed to assess the North American automotive landscape through the expertise of the consulting firms, without impacting Autozi's financial standing.
Autozi, established in 2010, has grown to become a significant player in China's automotive service industry, offering a range of services including new car sales, auto parts and accessories sales, and automotive insurance-related services. The company currently trades at $1.29 per share, with InvestingPro's Fair Value analysis suggesting the stock is overvalued at current levels. Discover more detailed insights and valuation metrics with an InvestingPro subscription.
The information in this article is based on a press release statement from Autozi Internet Technology (Global) Ltd.
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