A Letter to Investors from the CEO of Robo.ai: Optimizing Capital Structure and Advancing Core Businesses with Operational Resilience

Rhea-AI Summary

Robo.ai (NASDAQ:AIIO) announced a 1-for-20 reverse stock split effective April 1, 2026, with fractional shares rounded up to the nearest whole share. The company said restructuring and spin-offs reduced net debt, delivered an initial 30,000-hour AI data order (first batch on Feb 26), and is acquiring a controlling stake in ChinaSky. Robo.ai registered to participate in Jidu pre-restructuring (Dec 19) and convened a creditors' meeting (Jan 12). Auditors are preparing 2025 annual results, with an earnings announcement expected within the next month.

Positive

• 1-for-20 reverse split implemented April 1, 2026
• Fractional shares will be rounded up to whole shares
• 30,000 hours AI data order; initial batch delivered Feb 26
• Acquisition of a controlling stake in ChinaSky to add revenue and cash flow
• Participating in Jidu pre-restructuring (registered Dec 19; creditors meeting Jan 12)

Negative

• Reverse split materially reduces share count and may affect trading liquidity
• Net debt reduction described but no quantified net-debt improvement disclosed

News Market Reaction – AIIO

-15.10%

14 alerts

-15.10% Session close to close

-34.0% Trough in 27 hr 52 min

$39.48M Market Cap

0.1x Rel. Volume

In the Apr 1 session, AIIO declined 15.10%, reflecting a significant negative market reaction. Argus tracked a trough of -34.0% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -15.1% in the session following this news. A negative reaction despite the CEO’s e...

Analysis

The stock dropped -15.1% in the session following this news. A negative reaction despite the CEO’s emphasis on debt reduction, AI data execution, and ChinaSky expansion would fit the pattern of past AI-tagged headlines that often saw selling pressure, with an average move of -8.34%. Prior 424B3 resale registrations underscore overhang risk from registered shares, while the reverse split frames ongoing Nasdaq compliance efforts and capital structure cleanup during a broader strategic transition.

Key Figures

Reverse split ratio: 1-for-20 Data order hours: 30,000 hours ChinaSky stake: 51% +5 more

8 metrics

Reverse split ratio 1-for-20 Announced reverse stock split of ordinary shares

Data order hours 30,000 hours Secured order for AI data services with initial delivery on Feb 26

ChinaSky stake 51% Ongoing acquisition of controlling interest in ChinaSky

Creditors’ meeting date January 12 First creditors’ meeting for Shanghai Jidu pre-restructuring

Application date December 19 Registration to participate in Jidu pre-restructuring

Financial report year 2025 fiscal year Annual report preparation referenced in outlook

Price change pre-news 23.52% 24h price change ahead of publication at <b>0.1052</b> per share

52-week high drawdown 96.26% Price below 52-week high of <b>2.815</b>

Previous AI Reports

5 past events · Latest: Mar 24 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 24	AI data revenue start	Positive	+4.0%	Began Q1 2026 revenue recognition for intelligent data business with capacity targets.
Mar 09	Strategy commentary	Positive	+1.5%	CEO highlighted UAE as launchpad and reiterated embodied AI data backlog and deliveries.
Feb 26	Data delivery milestone	Positive	-5.7%	Completed initial intelligent data deliveries in Middle East, validating commercial model.
Feb 12	Major data contract	Positive	-7.1%	Subsidiary secured 30,000-hour embodied AI robot data order over 12 months.
Dec 19	JIDU pre-restructuring	Positive	-34.4%	Applied to join Shanghai JIDU pre-restructuring to align with robot-car platform.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across recent AI-tagged news, positive operational updates have often been followed by negative price reactions, with more divergence than alignment.

Recent Company History

Over the past few months, Robo.ai has focused AI efforts on embodied data and strategic automotive exposure. The company secured a 30,000-hour embodied AI data order and began revenue recognition in Q1 2026, then completed initial data deliveries in the Middle East. It also moved to participate in Shanghai JIDU’s pre-restructuring to gain a smart EV platform. These AI-driven milestones, while strategically positive, previously produced mixed to negative price reactions, framing today’s reverse split and business update within an ongoing transition story.

Key Terms

reverse stock split, net debt, spin-off, pre-restructuring, +1 more

5 terms

reverse stock split financial

"Robo.ai officially announced the implementation of a 1-for-20 reverse stock split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

net debt financial

"spin-off of debt-bearing subsidiaries, we are effectively reducing the Company's net debt levels"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

View in glossary

spin-off financial

"through recent corporate restructuring and the spin-off of debt-bearing subsidiaries"

A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.

View in glossary

pre-restructuring regulatory

"registered on December 19 of last year to participate in the pre-restructuring of Shanghai Jidu"

Pre-restructuring describes a company’s condition or financial picture before it implements a planned reorganization of operations, debt, or assets. Investors care because it shows the baseline risks, costs and performance that the restructuring aims to change—like looking at a house before renovations to judge whether repairs will add enough value to justify the work and expense.

creditors' meeting regulatory

"its first creditors' meeting was subsequently successfully convened on January 12 of this year"

A creditors' meeting is a formal gathering of people and institutions owed money by a troubled company to review its finances, ask questions, and vote on proposed plans for repayment or restructuring. For investors, it matters because decisions made there can change the order and amount of recoveries, alter ownership or debt terms, and affect whether the company survives or is liquidated—think of neighbors meeting to decide how to share repairs and who pays what.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

DUBAI, UAE, April 1, 2026 /PRNewswire/ -- Dear investors, partners, and friends:

Today, Robo.ai officially announced the implementation of a 1-for-20 reverse stock split of its ordinary shares. As the Chief Executive Officer of the Company, I would like to take this opportunity to share candidly with you the strategic considerations behind this decision and to update you on our recent core business progress.

Strategic Restructuring: Optimizing Capital Structure and Reducing Net Debt This reverse stock split is a key component of the Company's proactive strategy to drive value realization. Currently, the Company's share price performance does not adequately reflect the preliminary results of our artificial intelligence transition and international expansion. Our genuine objective in implementing this reverse stock split is to eliminate compliance-related market noise, enabling the market to refocus on the Company's core fundamentals and business substance. Through this capital structure optimization, Robo.ai aims to enter the screening radar of mainstream global institutional investors and enhance the long-term liquidity and market position of our shares. To maximize the protection of existing shareholders' interests, fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. Furthermore, through recent corporate restructuring and the spin-off of debt-bearing subsidiaries, we are effectively reducing the Company's net debt levels, thereby establishing a solid capital platform for future business expansion and potential merger and acquisition initiatives.

Confronting Challenges: External Volatility Does Not Alter Steady Operational Resilience Although the recent complexities in international geopolitical dynamics and macroeconomic fluctuations have presented unforeseen impacts on the secondary market, Robo.ai's overall operations remain highly stable. Our global team has demonstrated strong operational resilience in navigating counter-cyclical environments, converting external pressures into internal execution momentum. At present, the Company has achieved tangible progress across key business lines, including data services, hardware distribution, and strategic restructuring, preliminarily forming a commercial closed loop to support future development.

Business Highlights: Multi-Threaded Progress and Phased Implementation of Commercial Closed Loop In the foundational artificial intelligence data services sector, our joint venture operations with DaBoss have expanded across multiple regions and established a preliminary business model. Building upon a secured order of 30,000 hours of data, the initial batch of data was officially delivered on February 26. This business currently focuses primarily on providing artificial intelligence training data support and data services related to smart devices and robotics. As a foundational capability within the artificial intelligence industry chain, our data business is continuously advancing cooperation with potential clients to provide solid support for the Company's future multi-business synergies. In terms of physical commercial operations, Robo.ai will expand its sales network coverage and sales revenue through the ongoing acquisition of a controlling stake in ChinaSky. ChinaSky has steadily conducted automobile sales operations in overseas markets and continues to advance its channel and network construction. This segment has generated actual sales and established a stable commercial operational foundation, and is expected to contribute tangible revenue and cash flow to the Company. This not only enhances the Company's counter-cyclical capabilities under the current macroeconomic environment but also provides concrete financial support for overall business expansion. ChinaSky also plans to share its first-quarter performance in the near future.

Investment and Ecosystem: Participating in Jidu Pre-Restructuring to Introduce Smart Vehicle Systems and Deepening Middle East Government-Enterprise Cooperation

Regarding strategic investments and ecosystem partnerships, relevant advancement efforts are proceeding in an orderly manner. The Company previously registered on December 19 of last year to participate in the pre-restructuring of Shanghai Jidu Automobile Co., Ltd., and its first creditors' meeting was subsequently successfully convened on January 12 of this year. The core objective of participating in this restructuring project is to introduce a well-regarded smart electric vehicle product platform, strengthen the Company's capabilities in the smart mobility sector, and promote the deployment of related products in overseas markets. Concurrently, Robo.ai is actively advancing discussions with relevant government entities and partners in the Middle East region, covering areas such as smart mobility, unmanned systems, smart logistics, and city-level applications. Such cooperation aims to translate policy support into specific scenario implementations and potential commercial orders, and is currently progressing steadily according to our established directions.

Future Outlook: Financial Transparency and Continuous Communication At present, our audit and finance teams are fully engaged in preparing the annual financial report for the 2025 fiscal year. We expect to formally issue the relevant earnings announcement within the next month to disclose the Company's financial performance to the market. The phased progress we have achieved across our various business lines will also be communicated to you in accordance with compliance disclosure. Thank you for your continued trust and support for Robo.ai during these complex and dynamic market conditions. We will continue to drive the comprehensive realization of long-term value through steadfast execution and consistent performance.

About Robo.ai Inc.
Robo.ai Inc. (NASDAQ: AIIO) is a technology company dedicated to building a leading global artificial intelligence machine economy platform. Its mission is to integrate "AI Software, Intelligent Hardware, and Smart Assets" to construct a unified AI operating system and an ecosystem empowered by blockchain, pioneering an intelligent future.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated; for further details, please refer to the Company's filings with the U.S. Securities and Exchange Commission.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/a-letter-to-investors-from-the-ceo-of-roboai-optimizing-capital-structure-and-advancing-core-businesses-with-operational-resilience-302731179.html

SOURCE Robo.ai Inc.

FAQ

What exactly did AIIO announce about the reverse stock split on April 1, 2026?

AIIO implemented a 1-for-20 reverse stock split effective April 1, 2026, with fractional shares rounded up. According to the company, this aims to reduce compliance-related market noise and reposition shares for mainstream institutional interest.

How does the 1-for-20 reverse split affect AIIO shareholders and fractional shares?

The reverse split consolidates every 20 shares into one share and rounds fractional shares up to whole shares. According to the company, the rounding protects existing holders while changing share count and per-share price.

What progress did AIIO report on its AI data services and the 30,000-hour order?

AIIO secured a 30,000-hour training-data order and delivered the initial batch on Feb 26. According to the company, the data services JV with DaBoss is operating across regions and supports future AI training and device integrations.

What is AIIO's plan regarding ChinaSky and expected financial impact for shareholders?

AIIO is acquiring a controlling stake in ChinaSky to expand sales networks and overseas automobile sales. According to the company, ChinaSky has generated actual sales and is expected to contribute tangible revenue and cash flow.

When will AIIO release audited 2025 results and what should investors expect?

AIIO expects to issue its audited 2025 earnings announcement within the next month as teams finalize reports. According to the company, financial disclosure and phased business updates will follow in compliance with disclosure rules.