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BEIJING - Jianzhi Education Technology Group Company Limited (NASDAQ: JZ), currently trading at $0.39 per share with a market capitalization of $7.87 million, announced Thursday plans to change the ratio of its American Depositary Shares (ADSs) from one ADS representing six ordinary shares to one ADS representing sixty ordinary shares. According to InvestingPro analysis, the stock has shown significant volatility in recent months, with additional insights available to subscribers.
The change, effective June 16, 2025, will function as a one-for-ten reverse ADS split, reducing the company’s outstanding ADSs from approximately 7,716,666 to 771,666. Jianzhi’s ADSs will continue trading on the Nasdaq Stock Exchange under the symbol "JZ" but with a new CUSIP number (47737L302). The announcement comes as the company faces challenging market conditions, with revenue declining by 43.52% in the last twelve months.
ADS holders of record on the effective date will need to surrender and exchange every ten existing ADSs for one new ADS. The Bank of New York Mellon, Jianzhi’s depositary bank, will manage the exchange process.
No fractional new ADSs will be issued. Instead, fractional entitlements will be aggregated and sold by the depositary bank, with net cash proceeds distributed to applicable ADS holders after deduction of fees, taxes, and expenses.
The ratio change will not affect Jianzhi’s underlying ordinary shares, and no ordinary shares will be issued or canceled in connection with this change. While the company expects its ADS trading price to increase proportionally, it provided no assurance that the post-change price will equal or exceed ten times the pre-change price.
Jianzhi Education, established in 2011, provides digital educational content in China, primarily serving higher education institutions and individual customers. While InvestingPro data suggests the company is currently undervalued, it faces operational challenges with negative EBITDA of $2.74 million in the last twelve months. The company is scheduled to report its next earnings on June 26, 2025. The information in this article is based on a company press release statement and InvestingPro data.
In other recent news, Jianzhi Education Technology Group Company Limited has highlighted its strategic role in China’s digital education sector. The company, known for its AI-driven platforms, continues to focus on delivering educational solutions across the nation. Jianzhi’s CEO, Mr. Yong Hu, emphasized the company’s commitment to addressing skill gaps and supporting educational stakeholders through its integrated ecosystem. The company has been actively developing professional development training resources to meet the high demand in China. Jianzhi’s digital educational content database offers a wide range of professional development products to both higher education institutions and individual consumers. The firm aims to broaden its influence by improving its AI-generated content and establishing strategic partnerships. These recent developments reflect Jianzhi’s current expectations and projections about future events, with the company having filed related risks with the SEC.
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