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Huachen AI Parking Management Technology Holding Co., Ltd Announces 1-for-30 Reverse Stock Split Effective April 13, 2026

(Very Negative)

Huachen AI Parking Management Technology (NASDAQ: HCAI) announced a 1-for-30 reverse stock split of Class A and Class B ordinary shares effective at market open on April 13, 2026, subject to Nasdaq approval. The split will reduce outstanding Class A from ~18,897,500 to ~629,167 and Class B from ~16,000,000 to ~533,333.

The action is intended to increase the per-share trading price to assist in maintaining compliance with Nasdaq's minimum bid price rule; ticker remains HCAI and a new CUSIP G4645R122 will be used.

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Positive

  • Outstanding Class A shares reduced from ~18,897,500 to ~629,167 (≈97% reduction)
  • Outstanding Class B shares reduced from ~16,000,000 to ~533,333 (≈97% reduction)
  • Tactic intended to assist in maintaining Nasdaq minimum bid price compliance

Negative

  • Fractional-share rounding up may cause minimal, unintended ownership changes for some shareholders

News Market Reaction – HCAI

-34.02%
14 alerts
-34.02% Session close to close
+2.9% Peak Tracked
-49.3% Trough Tracked
$13.47M Market Cap
0.5x Rel. Volume

In the Apr 9 session, HCAI declined 34.02%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.9% during that session. Argus tracked a trough of -49.3% 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 -34.0% in the session following this news. A negative reaction despite the reverse...
Analysis

The stock dropped -34.0% in the session following this news. A negative reaction despite the reverse split announcement would fit the pattern of inconsistent responses to HCAI’s prior updates, such as the -21.29% move following the February 2026 U.S. expansion news. The action is framed around Nasdaq minimum bid price compliance by August 3, 2026. Investors would need to weigh structural share changes against underlying business progress highlighted in earlier initiatives.

Key Figures

Reverse split ratio: 1-for-30 Effective date: April 13, 2026 Class A shares pre-split: 18,897,500 shares +5 more
8 metrics
Reverse split ratio 1-for-30 Board-approved share combination for Class A and Class B ordinary shares
Effective date April 13, 2026 Reverse stock split effective at open of business, subject to Nasdaq approval
Class A shares pre-split 18,897,500 shares Approximate outstanding Class A ordinary shares before reverse stock split
Class A shares post-split 629,167 shares Approximate outstanding Class A ordinary shares after reverse stock split
Class B shares pre-split 16,000,000 shares Outstanding Class B ordinary shares before reverse stock split
Class B shares post-split 533,333 shares Outstanding Class B ordinary shares after reverse stock split
Authorized ordinary shares 2,083,333,334 shares Post-split authorization (1,666,666,667 Class A; 416,666,667 Class B)
Nasdaq bid compliance deadline August 3, 2026 Extension deadline to regain $1.00 minimum bid price per 6-K filing

Historical Context

2 past events · Latest: Feb 04 (Positive)
Pattern 2 events
Date Event Sentiment 24h Move Catalyst
Feb 04 U.S. expansion plan Positive -21.3% Announced U.S. expansion of Smart Parking Platform into major Tier‑1 markets.
Feb 02 Energy initiative launch Positive +24.1% Launched 4G Smart Energy Management and Green Power Arbitrage initiative.

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

Pattern Detected

Recent news has drawn mixed reactions: one positive strategic update coincided with a decline, while another coincided with a gain, indicating inconsistent price responses to operational announcements.

Recent Company History

Over recent months, HCAI has focused on strategic expansion and new initiatives. On Feb 2, 2026, it launched a 4G Smart Energy Management and Green Power Arbitrage initiative, with the stock moving +24.1% over the next day. On Feb 4, 2026, it announced a U.S. Smart Parking Platform expansion into Tier‑1 markets, after which shares fell 21.29%. Today’s reverse split and Nasdaq compliance focus follow this mixed market reception to growth news.

Key Terms

reverse stock split, par value, cusip, nasdaq capital market, +1 more
5 terms
reverse stock split financial
"approved a share combination (the “Reverse Stock Split”) of its Class A and Class B"
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.
par value financial
"shares with a par value of US$0.00000125 each will be consolidated into one"
Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.
cusip regulatory
"Class A ordinary shares will begin trading under a new CUSIP number, G4645R122"
A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.
View in glossary
nasdaq capital market regulatory
"Class A ordinary shares will continue to trade on the Nasdaq Capital Market"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
minimum bid price requirement regulatory
"intended to increase the per-share trading price ... to assist in maintaining compliance with Nasdaq’s minimum bid price requirement"
A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.

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

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Pinghu, China, April 08, 2026 (GLOBE NEWSWIRE) -- Huachen AI Parking Management Technology Holding Co., Ltd. (NASDAQ: HCAI, “HCAI” or “the Company”), a China-based smart-parking and equipment-structural-parts provider, today announced that its Board of Directors has approved a share combination (the “Reverse Stock Split”) of its Class A and Class B ordinary shares at a ratio of 1-for-30. The Reverse Stock Split is expected to become effective at the open of business on April 13, 2026 (the “Effective Date”), subject to approval by the Nasdaq Stock Market LLC. The Company’s Class A ordinary shares will continue to trade on the Nasdaq Capital Market under the symbol “HCAI.” The Reverse Stock Split is intended to increase the per-share trading price of the Company’s Class A ordinary shares to assist in maintaining compliance with Nasdaq’s minimum bid price requirement.

The implementation of this Reverse Stock Split follows the authorization granted at the Company’s extraordinary general meeting of shareholders held on December 7, 2025. At that meeting, shareholders approved an ordinary resolution to consolidate Class A and Class B ordinary shares at a ratio ranging from 1-for-2 to 1-for-250, granting the Board of Directors the sole discretion to determine the final ratio and timing within one year of the meeting. On March 24, 2026, the Board officially determined the 1-for-30 ratio.

Upon the effectiveness of the Reverse Stock Split, every thirty (30) Class A ordinary shares with a par value of US$0.00000125 each will be consolidated into one (1) Class A ordinary share with a par value of US$0.0000375. Simultaneously, every thirty (30) Class B ordinary shares with a par value of US$0.00000125 each will be consolidated into one (1) Class B ordinary share with a par value of US$0.0000375.

The Reverse Stock Split will reduce the number of outstanding Class A ordinary shares of the Company from approximately 18,897,500 shares to approximately 629,167 shares, and will reduce the number of outstanding Class B ordinary shares of the Company from approximately 16,000,000 shares to approximately 533,333 shares. Every thirty (30) outstanding Class A ordinary shares will be combined into and automatically become one post-Reverse Stock Split Class A ordinary share. Every thirty (30) outstanding Class B ordinary shares will be combined into and automatically become one post-Reverse Stock Split Class B ordinary share. No fractional shares will be issued in connection with the Reverse Stock Split. Instead, the Company will issue one full post-Reverse Stock Split Class A ordinary share or Class B ordinary share, as applicable, to any shareholder who would have been entitled to receive a fractional share as a result of the process. As a result of the Reverse Stock Split, the par value of the Class A ordinary shares and Class B ordinary shares will be increased to $0.0000375 per share and the number of authorized ordinary shares will be reduced to 2,083,333,334 ordinary shares, comprising of 1,666,666,667 Class A ordinary shares and 416,666,667 Class B ordinary shares.

To ensure a seamless transition for shareholders, any fractional shares resulting from the consolidation will be rounded up to the next whole share. The Reverse Split will affect all shareholders uniformly and will not alter any shareholder's percentage ownership interest in the Company, except for minimal changes that may result from the treatment of fractional shares. No action is required by shareholders holding their shares through a brokerage account.

Concurrently with the Reverse Stock Split, the Company amended its Memorandum of Association to proportionately reduce the number of authorized ordinary for issuance and change the par value of post-reverse stock split ordinary shares to US$0.0000375 per share.

In connection with the Reverse Stock Split, the Company’s Class A ordinary shares will begin trading under a new CUSIP number, G4645R122, starting on the Effective Date. The Company’s ticker symbol will remain “HCAI.”

About Huachen AI Parking Management Technology Holding Co., Ltd.

Huachen AI Parking Management Technology Holding Co., Ltd. is a China-based, one-stop provider of smart-parking systems and precision structural parts. Through our operating subsidiaries, we design, manufacture, install and service space-saving cubic parking garages—tailored to each client’s needs with technologies such as vertical lifting and multi-layer cycling—while also supplying custom steel components and railroad accessories to industrial customers nationwide.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the documents filed with the United States Securities and Exchange Commission (the "SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For further information about Huachen AI Parking Management Technology Holding Co., Ltd, please contact:

Huachen AI Parking Management Technology Holding Co., Ltd

Alan Li

ir@huachenai.com

Mobile: +852-95791074

SOURCE Huachen AI Parking Management Technology Holding Co., Ltd


FAQ

What is the effective date of HCAI's 1-for-30 reverse stock split?

The reverse stock split becomes effective at market open on April 13, 2026. According to the company, the split is subject to Nasdaq approval and will use a new CUSIP starting on the Effective Date.

How many HCAI Class A shares will be outstanding after the reverse split (HCAI)?

After the 1-for-30 consolidation, Class A outstanding shares will be approximately 629,167. According to the company, this reduces prior Class A shares of ~18,897,500 to the new post-split total.

Will HCAI's ticker symbol or CUSIP change after the reverse split (HCAI)?

HCAI's ticker symbol will remain HCAI while the CUSIP will change to G4645R122 on the Effective Date. According to the company, the new CUSIP takes effect concurrently with the reverse split.

Do HCAI shareholders need to take action for the 1-for-30 reverse split?

No shareholder action is required for shares held in brokerage accounts; consolidation happens automatically. According to the company, fractional shares will be rounded up to whole shares to ensure a seamless transition.

How does the reverse stock split affect HCAI shareholder ownership percentages?

The reverse split will not alter each shareholder's percentage ownership, aside from minimal changes from fractional-share rounding. According to the company, all holders are consolidated uniformly under the 1-for-30 ratio.

Why did HCAI implement a 1-for-30 reverse split on April 13, 2026?

The reverse split is intended to raise HCAI's per-share trading price to help maintain Nasdaq's minimum bid price requirement. According to the company, the Board approved the 1-for-30 ratio on March 24, 2026 under prior shareholder authorization.