Visionary Holdings Establishes Three Wholly Owned Subsidiaries in China
Visionary Holdings announced that its wholly owned subsidiary, Visionary Health Technology Group Limited, has established three new regional wholly owned subsidiaries in Qingdao, Wuxi and Wuhu, China. These subsidiaries are primarily dedicated to localized market expansion, institutional partnerships, and frontline sales execution for GV's regenerative medicine, cellular rejuvenation, and aesthetic treatment product portfolio. Xiyong Hou, CEO, commented: "The establishment of wholly owned subsidiaries in Qingdao, Wuxi and Wuhu marks an important step in GV's commercialization journey. We are progressing from strategic positioning to coordinated city-level execution. By building localized teams and strengthening regional partnerships, we aim to enhance sales capability and operational visibility. Commercialization is a gradual process, but this multi-city deployment strengthens our scalability and long-term growth foundation. We remain disciplined in execution and focused on delivering measurable progress for our shareholders."
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- Regional Market Expansion: Visionary Holdings has established three wholly owned subsidiaries in Qingdao, Wuxi, and Wuhu, aimed at enhancing market penetration for its regenerative medicine and aesthetic treatment products through localized market expansion and institutional partnerships, thereby improving overall sales execution efficiency.
- Multi-City Commercial Network: The new subsidiaries complement the company's headquarters in Hangzhou and sales entity in Nanjing, forming a commercialization matrix covering the Shandong Peninsula, Yangtze River Delta, and Anhui region, providing diversified healthcare demand bases and strong institutional resources to optimize market positioning.
- Enhanced Sales Execution Capability: Each subsidiary will focus on building professional sales teams to directly support hospitals and premium wellness institutions while developing strategic partnerships with regional medical providers, ensuring GV's products can smoothly enter the market and achieve sales growth.
- Accelerated Commercialization Process: With the establishment of new subsidiaries, GV has achieved significant milestones over the past year, including global technology licensing and the launch of its anti-aging product portfolio, marking a notable advancement in translating technology assets into structured sales operations.
- Financing Agreement: Visionary Holdings has entered into a securities purchase agreement with an existing institutional investor, issuing a senior secured convertible promissory note worth $500,000 in exchange for gross proceeds of $450,000, demonstrating the company's ability to secure capital in the market.
- Historical Financing Review: Previously, the company issued a senior secured convertible promissory note of $1.5 million to the same investor on October 2, 2024, indicating a sustained trust relationship that may facilitate future financing efforts.
- Stock Price Reaction: Following the press release, GV's stock price rose by 6.09% in after-hours trading to $1.22, reflecting a positive market response to the company's financing activities, which could enhance investor confidence.
- Strategic Implications: This financing not only provides the company with much-needed liquidity but also potentially paves the way for future expansion and investment opportunities, thereby strengthening its competitive position in the industry.

- Financing Agreement: Visionary Holdings entered into a securities purchase agreement in December 2025 with an existing institutional investor, issuing a convertible promissory note worth $500,000 and securing $450,000 in gross proceeds, thereby enhancing the company's liquidity for future growth.
- Updated Interest Structure: The new convertible note carries an interest rate of 9% per annum or higher, increasing to 18% in the event of default, which may raise the company's financial costs but also offers higher potential returns for investors.
- Adjusted Conversion Terms: Compared to the January 2025 note, the new note has a conversion price of $1.44 per share, down from $2.25, reflecting the company's adaptability to market conditions and enhancing its appeal to investors.
- Compliance and Private Placement: The issuance of this note is part of a private placement transaction exempt from registration under the Securities Act of 1933, ensuring the company raises funds without legal violations while laying the groundwork for future capital market activities.
- Compliance Issue Resolved: Visionary Holdings received a compliance notice from Nasdaq on January 27, 2026, due to the delayed filing of its 20-F report for the fiscal year 2025, facing potential delisting; however, the company promptly filed the report on January 28, successfully resolving the compliance issue.
- Reason for Technical Delay: Although the report was finalized and approved before the deadline, technical delays related to internal role accreditation within the EDGAR system caused the submission to be completed two days later than anticipated, triggering the compliance notice.
- Nasdaq Compliance Confirmation: On January 29, 2026, Nasdaq issued a compliance confirmation letter formally acknowledging that the company now meets the listing requirements, marking the closure of the issue and ensuring the company's continued listing status.
- Management Statement: CEO Frank Xiyong Hou emphasized the company's commitment to disclosure responsibilities and the implementation of procedural safeguards to prevent recurrence, while continuing to focus on executing strategic initiatives and maintaining high standards of financial reporting.
- Compliance Restoration: Visionary Holdings Inc. regained compliance with Nasdaq Listing Rule 5250(c)(1) by filing its Annual Report on Form 20-F for the fiscal year ended March 31, 2025, on January 28, 2026, ensuring its legal standing in the capital markets.
- Timely Reporting: The company was notified by Nasdaq on August 5, 2025, of its non-compliance due to the delayed filing of its annual report, which has now been resolved through timely submission, thus avoiding potential penalties.
- Commitment to Transparency: Visionary Holdings reaffirmed its commitment to comply with all applicable Nasdaq listing standards and U.S. securities laws, aiming to provide high levels of transparency and disclosure for shareholders, thereby enhancing investor confidence.
- Global Business Development: As a multinational enterprise focused on innovative education, AI applications, and high-tech healthcare solutions, the restoration of compliance will facilitate Visionary Holdings' expansion in North America and Asia, driving technological advancement and global health transformation.
- Revenue Decline: For FY 2025, Visionary Holdings reported total revenue of $5.04 million, a 46.2% year-over-year decrease primarily due to the contraction of real estate leasing operations and changes in the education policy environment, indicating challenges faced during the transformation process.
- Emerging Business Contribution: Emerging health-related businesses generated $1.06 million in revenue during the reporting period, accounting for 21.1% of total revenue, marking early progress in the company's strategic repositioning despite overall revenue weakness.
- Net Loss Situation: The company reported a net loss of $15.75 million, primarily reflecting one-time transformation-related investments and $4.70 million in asset impairment charges, indicating significant financial pressure during the transition.
- Cash Flow Improvement: Cash flow from investing activities totaled $14.51 million, mainly from asset dispositions, while operating cash outflows decreased to $2.97 million, demonstrating proactive liquidity management efforts by the company.







