Autozi Founder Zhang Houqi Commits to Share Purchase
Autozi announced that its board of directors has received a Share Increase Commitment Letter from Dr. Zhang Houqi, the company's founder, controlling shareholder, and chairman. According to the letter, Zhang plans to purchase Autozi shares incrementally over the next 12 months at $5 per share, using personal funds totaling between $10M-$30M. This move demonstrates his firm confidence in the company's long-term development and will help accelerate the execution of Autozi's three-year strategic plan. As the only Nasdaq-listed company in China's auto parts industrial internet sector, Autozi has faced multiple challenges in the U.S. capital market since its listing. Its share price once fell to just a few cents, and the company entered Nasdaq's delisting hearing process due to non-compliance with minimum public float and share price requirements-an episode that drew considerable industry attention.
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- Cooperation Deepening: Autozi has progressively deepened its collaboration with Velocar over the past six months, formally establishing a business partnership three months ago, with a shared goal of achieving approximately $500 million in revenue through cross-border automotive supply chain operations.
- Strategic Synergy: Through multiple rounds of business discussions, both parties have developed a deeper understanding of each other's strategic priorities and resource strengths, planning to accelerate business expansion and improve operational efficiency through M&A-driven integration.
- Market Coverage Expansion: This collaboration aims to combine Velocar's strengths in vehicle circulation, distribution networks, and end-market services in Europe with Autozi's capabilities in digital supply chain platforms and capital operations, driving sustained revenue growth.
- Prudent Advancement: Autozi stated it will advance the cooperation in a prudent and compliant manner, steadily implementing subsequent arrangements and further strengthening strategic alignment with Velocar as part of its long-term globalization strategy.
- Strategic Cooperation Deepening: Autozi and Velocar have gradually deepened their partnership over the past six months, formally establishing a business relationship three months ago, aiming to achieve approximately $500 million in revenue through cross-border automotive supply chain operations.
- M&A-Oriented Collaboration: Both parties recognized that M&A-driven integration could accelerate business expansion and improve operational efficiency, leading to a recent memorandum of understanding to facilitate the next phase of collaboration.
- Resource Integration Advantages: This cooperation aims to combine Velocar's strengths in vehicle circulation, distribution networks, and end-market services in Europe with Autozi's capabilities in digital supply chain platforms, industry resource integration, and capital operations, driving market coverage expansion.
- Implementation of Global Strategy: Autozi stated it will continue to advance the cooperation prudently and compliantly, steadily implementing subsequent arrangements and further strengthening strategic alignment with Velocar as part of its long-term globalization strategy.
- Increased Shareholder Confidence: Autozi has formally received $10 million in share subscription proceeds from its controlling shareholder, indicating strong confidence in the company's long-term development strategy and intrinsic value, which is expected to enhance market trust in the company.
- Strengthened Capital Base: The shares will be issued at a 30% premium to the market price, and upon completion of necessary corporate governance procedures, the company's capital base will be further strengthened, supporting future business expansion and product innovation.
- Positive Market Reaction: Market observers generally view the controlling shareholder's participation through share purchases or private placements as a positive signal regarding the company's fundamentals, which may boost investor confidence and improve overall capital market expectations.
- Ongoing Strategic Execution: Autozi reaffirmed its commitment to prudent operations and compliant governance practices, aiming to enhance operational efficiency and profitability to create sustainable long-term value for shareholders, thereby rewarding the trust and support of all stakeholders.
- Shareholder Confidence Boost: Autozi has formally received $10 million in share subscription proceeds from its controlling shareholder, indicating strong confidence in the company's long-term development strategy and intrinsic value, which is expected to enhance market trust in the company.
- Capital Structure Optimization: The shares will be issued at a 30% premium to the market price, which is anticipated to optimize the company's capital structure and balance sheet, thereby enhancing overall financial stability and supporting continued investment and expansion of core businesses.
- Increased R&D Investment: The company plans to leverage the new capital to increase investments in technology research and development, product upgrades, and market channel expansion, enhancing resilience to industry competition and cyclical fluctuations while improving strategic flexibility.
- Sustainable Value Creation: Autozi reaffirms its commitment to prudent operations and compliant corporate governance practices, continuously enhancing operational efficiency and profitability, seizing industry development opportunities, and creating sustainable long-term value for its shareholders.
- Share Purchase Commitment: Founder Zhang Houqi has submitted a commitment letter to Autozi's board, planning to incrementally purchase shares over the next 12 months at $5 per share, with a total investment ranging from $10 million to $30 million, demonstrating confidence in the company's future prospects.
- Stock Price Surge: Following the announcement, Autozi's stock price jumped 13.41% in premarket trading to $2.62, reflecting a positive market reaction to the founder's commitment, which may bolster investor confidence.
- Market Challenges: Autozi has recently received two Nasdaq notices indicating compliance challenges, and the share purchase plan could help stabilize shareholder confidence and improve the company's market image.
- Strategic Partnerships: The company has signed a $980 million MoU with multiple potential buyers, and the share purchase commitment complements this strategic collaboration, potentially laying a foundation for future growth.
- Market Movement: The NASDAQ 100 Pre-Market Indicator fell by 122.7 points to 25,619.25, indicating a weakening market sentiment that could impact investor confidence.
- Trading Volume: Total pre-market volume reached 85,975,386 shares, suggesting a high level of market activity despite the overall decline, with investors remaining active in trading.
- Stock Performance: Alibaba (BABA) rose by $4.49 to $171.50 with a trading volume of 1,366,079 shares, reflecting a positive market response to its 'buy' rating, potentially driving its stock price higher.
- Earnings Forecast: Bank of America (BAC) saw a decline of $1.15 to $53.39, yet it has a projected EPS of $0.98 for Q1 2026, indicating future earnings potential despite current price pressures.









