SHENZHEN - Jayud Global Logistics Limited (NASDAQ:JYD), a prominent supply chain solutions provider in Shenzhen, China, specializing in cross-border logistics, disclosed on Monday that it has been notified by The Nasdaq Stock Market LLC of its non-compliance with the Nasdaq Capital Market's minimum stockholders' equity requirement. According to Nasdaq Listing Rule 5550(b)(1), a company must maintain stockholders' equity of at least $2,500,000.
The notification, dated May 1, 2024, triggers a 45-day period, ending June 17, 2024, for Jayud to submit a plan to regain compliance. The company has expressed its intention to submit this plan within the stipulated timeframe and is currently exploring options to address the deficit and comply with the Nasdaq requirements. If Nasdaq accepts Jayud's plan, the company may receive an extension of up to 180 calendar days from the original notification date to demonstrate compliance.
Despite the warning, there is no immediate effect on the trading of Jayud's ordinary shares, which will continue to be listed and traded on the Nasdaq Capital Market.
Jayud Global Logistics is known for its comprehensive range of services, including freight forwarding, supply chain management, and other value-added services. The company leverages its strategic location in Shenzhen and its global network, with a presence in 12 provinces across China and 16 countries on six continents, to offer customized logistics solutions to its clients.
InvestingPro Insights
Jayud Global Logistics Limited (NASDAQ:JYD) faces a challenging period as it works to meet Nasdaq's stockholders' equity requirement. The situation is reflected in the company's financial metrics and market performance. According to InvestingPro data, Jayud has a market capitalization of just 18.15 million USD, which is indicative of a small-cap company that may experience more volatility and risk compared to larger, more stable companies.
The company's revenue for the last twelve months as of Q4 2023 stands at 70.14 million USD, but it is important to note a significant decline in revenue growth of -23.64% during the same period. This decrease in revenue growth could be a contributing factor to the concerns raised by Nasdaq regarding the company's financial health.
InvestingPro Tips highlight several critical issues that investors should consider. Jayud's stock has experienced a considerable hit over the last week with a -8.29% return, and it has fared poorly over the last month with a -15.74% return. Additionally, the company's short-term obligations exceed its liquid assets, which raises questions about its ability to meet immediate financial liabilities.
For investors looking for more comprehensive analysis, InvestingPro offers additional insights, including a total of 14 InvestingPro Tips for Jayud Global Logistics Limited, which can be accessed at https://www.investing.com/pro/JYD. These tips provide a deeper dive into the company's financial health and market performance. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable context and guidance in these uncertain times for the company.
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