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Huize Holding Limited Announces Plan to Implement ADS Ratio Change

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Huize Holding (NASDAQ: HUIZ) announced plans to change its American Depositary Shares (ADS) ratio from 1:20 to 1:100 Class A ordinary shares, effective around December 9, 2024. This change will function as a one-for-five reverse ADS split, requiring holders to exchange every five existing ADSs for one new ADS. The company will maintain its NASDAQ listing under 'HUIZ'. Fractional ADSs will be sold, with proceeds distributed to holders. The ratio change won't affect underlying Class A ordinary shares, and no shares will be issued or cancelled.

Huize Holding (NASDAQ: HUIZ) ha annunciato piani per modificare il rapporto delle sue American Depositary Shares (ADS) da 1:20 a 1:100 azioni ordinarie di Classe A, con effetto intorno al 9 dicembre 2024. Questa modifica funzionerà come uno split inverso ADS uno per cinque, richiedendo ai possessori di scambiare ogni cinque ADS esistenti per una nuova ADS. L'azienda manterrà la sua quotazione NASDAQ sotto 'HUIZ'. Gli ADS frazionari saranno venduti, con i proventi distribuiti ai possessori. La modifica del rapporto non influenzerà le azioni ordinarie di Classe A sottostanti e nessuna azione sarà emessa o annullata.

Huize Holding (NASDAQ: HUIZ) anunció planes para cambiar la relación de sus American Depositary Shares (ADS) de 1:20 a 1:100 acciones ordinarias Clase A, efectivo alrededor del 9 de diciembre de 2024. Este cambio funcionará como una división inversa de ADS uno por cinco, requiriendo que los titulares intercambien cada cinco ADS existentes por una nueva ADS. La compañía mantendrá su cotización en NASDAQ bajo 'HUIZ'. Los ADS fraccionarios se venderán, y los ingresos se distribuirán a los titulares. El cambio de la relación no afectará las acciones ordinarias Clase A subyacentes, y no se emitirán ni cancelarán acciones.

Huize Holding (NASDAQ: HUIZ)는 자사의 미국 예탁 주식(ADS) 비율을 1:20에서 1:100 보통주 클래스 A로 변경할 계획을 발표하였으며, 이는 2024년 12월 9일경에 시행될 예정입니다. 이 변경은 5주당 1주로 교환하는 역분할로 작용하며, 보유자는 기존 ADS 5주를 새로운 ADS 1주로 교환해야 합니다. 회사는 'HUIZ'라는 이름으로 NASDAQ 상장을 유지할 것입니다. 분할 주식은 판매되며, 수익금은 보유자에게 분배됩니다. 비율 변경은 기본 클래스 A 보통주에 영향을 미치지 않으며, 어떠한 주식도 발행되거나 취소되지 않습니다.

Huize Holding (NASDAQ: HUIZ) a annoncé des projets pour modifier le ratio de ses American Depositary Shares (ADS) de 1:20 à 1:100 actions ordinaires de Classe A, effectif autour du 9 décembre 2024. Ce changement fonctionnera comme un fractionnement inversé d'ADS un pour cinq, nécessitant que les détenteurs échangent chaque cinq ADS existants contre une nouvelle ADS. La société maintiendra sa cotation NASDAQ sous 'HUIZ'. Les ADS fractionnaires seront vendus, avec les bénéfices répartis entre les détenteurs. Le changement de ratio n'affectera pas les actions ordinaires de Classe A sous-jacentes, et aucune action ne sera émise ou annulée.

Huize Holding (NASDAQ: HUIZ) hat Pläne angekündigt, das Verhältnis seiner American Depositary Shares (ADS) von 1:20 auf 1:100 Stammaktien der Klasse A zu ändern, was voraussichtlich am 9. Dezember 2024 wirksam wird. Diese Änderung wird als eine Umkehrung des ADS-Verhältnisses eins zu fünf funktionieren, wobei die Inhaber dazu aufgefordert werden, jede fünf bestehenden ADS gegen eine neue ADS zu tauschen. Das Unternehmen wird seine NASDAQ-Notierung unter 'HUIZ' beibehalten. Bruch-ADS werden verkauft, und die Erlöse werden an die Inhaber verteilt. Die Änderung des Verhältnisses hat keine Auswirkungen auf die zugrunde liegenden Stammaktien der Klasse A, und es werden keine Aktien ausgegeben oder annulliert.

Positive
  • None.
Negative
  • Implementation of reverse ADS split (1:5) could indicate potential share price concerns
  • Potential transaction costs for shareholders due to fractional ADS sales

Insights

This ADS ratio change from 1:20 to 1:100 effectively implements a 1:5 reverse split, reducing the number of outstanding ADSs while maintaining the same underlying value. The move appears aimed at compliance with Nasdaq's minimum bid price requirements, as many small-cap companies face delisting risks when trading below $1 per share for extended periods.

The mechanics of this restructuring are straightforward - shareholders will receive 1 new ADS for every 5 currently held, with fractional shares being sold and cash distributed to holders. While this technical change doesn't affect the company's fundamental value or operations, it could impact trading dynamics through reduced float and potentially higher share price, though historically such moves often see prices drift back down over time.

SHENZHEN, China, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize”, the “Company” or “we”) (NASDAQ: HUIZ), a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced that it will change the ratio of its American depositary shares (“ADSs”) to its Class A ordinary shares (the “ADS Ratio”) from the current ratio of one (1) ADS to twenty (20) Class A ordinary shares to a new ratio of one (1) ADS to one hundred (100) Class A ordinary shares.

For the Company’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-five reverse ADS split. A post-effective amendment to the ADS Registration Statement on Form F-6 will be filed with the SEC to reflect the change in the ADS Ratio. The Company anticipates that the change in the ADS Ratio will be effective on or about December, 9, 2024 (U.S. Eastern Time), subject to the effectiveness of the post-effective amendment to the ADS Registration Statement on Form F-6 on or before that date.

Each ADS holder of record at the close of business on the date when the change in ADS Ratio is effective will be required to surrender and exchange every five (5) existing ADSs then held for one (1) new ADS. ADS holders in The Depository Trust Company and in the Direct Registration System will have their ADSs automatically exchanged and need not take any action. Citibank N.A., as the depositary bank for the Company’s ADS program, will arrange for the exchange of the current ADSs for the new ones. The Company’s ADSs will continue to be traded on the Nasdaq Global Market under the ticker symbol “HUIZ.”

No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the depositary bank and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses, where applicable) will be distributed to the applicable ADS holders by the depositary bank. The change in the ADS Ratio will have no impact on the Company’s underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio.

About Huize Holding Limited

Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service.

For more information, please visit http://ir.huize.com or follow us on social media via LinkedIn (https://www.linkedin.com/company/huize-holding-limited), Twitter (https://twitter.com/huizeholding) and Webull (https://www.webull.com/quote/nasdaq-huiz).

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize’s goals, strategies, and plans; Huize’s expansion plans; Huize’s future business development, financial condition and results of operations; Huize’s expectation regarding the demand for, and market acceptance of, its online insurance products; Huize’s expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing.

Further information regarding these and other risks is included in Huize’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Huize does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Investor Relations
Kenny Lo
Investor Relations Manager
investor@huize.com

Media Relations
mediacenter@huize.com

Christensen
In China
Ms. Dee Wang
Phone: +86-10-5900-1548
Email: dee.wang@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com


FAQ

When will Huize Holding's (HUIZ) ADS ratio change take effect?

The ADS ratio change is expected to take effect on or about December 9, 2024 (U.S. Eastern Time), subject to SEC approval.

What is the new ADS ratio for Huize Holding (HUIZ)?

The new ADS ratio will change from 1:20 to 1:100 Class A ordinary shares, effectively implementing a one-for-five reverse ADS split.

How will HUIZ's ADS ratio change affect shareholders?

Shareholders will need to exchange every five existing ADSs for one new ADS. Holders in The Depository Trust Company and Direct Registration System will have automatic exchanges.

What happens to fractional ADSs in Huize's (HUIZ) ratio change?

Fractional ADSs will be aggregated and sold by the depositary bank, with net proceeds distributed to affected ADS holders after deducting fees and taxes.

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