Lixiang Education Announces Plan to Implement ADS Ratio Change

Lixiang Education (NASDAQ: LXEH) will change its ADS ratio from 1 ADS = 100 ordinary shares to 1 ADS = 1,000 ordinary shares effective April 20, 2026, equivalent to a one-for-ten reverse ADS split for ADS holders.

Rhea-AI Summary

Lixiang Education (NASDAQ: LXEH) will change its ADS ratio from 1 ADS = 100 ordinary shares to 1 ADS = 1,000 ordinary shares effective April 20, 2026, equivalent to a one-for-ten reverse ADS split for ADS holders.

ADSs held in DRS or DTC will be automatically exchanged; no action is required. Fractional ADS entitlements will be aggregated, sold, and net cash distributed by the depositary bank. Ordinary shares are unaffected and no ordinary shares will be issued or cancelled.

Positive

• One-for-ten reverse ADS split effective April 20, 2026
• Automatic exchange for DRS and DTC ADS holders, no action required
• ADSs continue trading under ticker LXEH on Nasdaq

Negative

• Fractional ADS entitlements will be sold, producing cash instead of fractional shares
• Reverse ADS split may reduce ADS liquidity short-term

Key Figures

Current price: $0.18 52-week range: $0.16–$26.50 Price change 24h: -1.91% +5 more

Current price

$0.18

Prior to ADS ratio implementation announcement on Apr 15, 2026

52-week range

$0.16–$26.50

52-week low and high before this news

Price change 24h

-1.91%

Move ahead of Apr 15, 2026 press release

Volume vs average

292,288 vs 1,929,156

Today’s volume vs 20-day average (0.15x)

ADS ratio (old)

1 ADS : 100 ordinary shares

Prior ADS structure before April 20, 2026 Effective Date

ADS ratio (new)

1 ADS : 1,000 ordinary shares

New ADS ratio effective April 20, 2026

Reverse ADS split

1-for-10

Economic effect for ADS holders on Effective Date

Par value

US$0.0001 per share

Par value of the company’s ordinary shares

Historical Context

3 past events · Latest: Apr 01

3 events

1. Apr 01

   ADS ratio change

   24h Move

   -12.0%

   Announced one ADS for 1,000 shares, effectively a one-for-ten reverse ADS split.

2. Feb 11

   Listing deficiency notice

   24h Move

   -15.4%

   Nasdaq notice for failing US$5M Minimum Market Value of Publicly Held Shares rule.

3. Nov 21

   Bid price deficiency

   24h Move

   +0.1%

   Nasdaq notice for closing bid below $1.00 with 180-day compliance period to May 18, 2026.

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

Key Terms

american depositary shares, ads ratio, reverse ads split, direct registration system, +4 more

8 terms

american depositary shares financial

"change of the ratio of its American depositary shares (“ADSs”) to its ordinary"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

ads ratio financial

"change of the ratio of its American depositary shares (“ADSs”) to its ordinary shares (the “ADS Ratio”)"

The ads ratio measures the proportion of a company's revenue that comes from advertising activities compared to other sources. It helps investors understand how much of a company's income depends on advertising efforts, similar to how a restaurant's income might rely heavily on dine-in sales versus takeout. A higher ads ratio indicates a greater dependence on advertising-related revenue, which can signal potential risks or opportunities depending on market trends.

reverse ads split financial

"effect as a one-for-ten reverse ADS split."

A reverse ADS split is a corporate action that combines multiple American Depositary Shares (ADS) into a smaller number of ADS, so each new ADS represents more underlying ordinary shares and the price per ADS rises proportionally. Think of merging several small coins into one bigger coin: your total value stays the same, but the share count and per‑share price change, which can affect trading liquidity, index inclusion, and investor perception of the stock.

direct registration system financial

"holders of ADSs in the Direct Registration System (“DRS”) and in The Depository"

A direct registration system allows investors to register their ownership of securities directly with the issuing company or its transfer agent, rather than holding shares through a broker or intermediary. This setup gives investors more control over their holdings and simplifies the process of buying or selling shares. It is important because it can reduce costs, increase transparency, and provide a clearer record of ownership.

the depository trust company financial

"System (“DRS”) and in The Depository Trust Company (“DTC”) will have their ADSs"

The Depository Trust Company is a large organization that safely manages and keeps electronic records of ownership for stocks, bonds, and other securities. It acts like a digital warehouse, making it easier and faster for investors to buy, sell, and transfer investments without needing physical paper certificates. This helps ensure transactions are secure, accurate, and completed smoothly.

depositary bank financial

"new ADSs being issued by the depositary bank. No fractional new ADSs will be"

A depositary bank is a financial institution that holds and safeguards a company's or investor’s securities, such as stocks or bonds, in a secure account. It acts like a digital safe, ensuring that ownership records are accurate and that transactions are processed smoothly. For investors, it provides confidence that their investments are protected and correctly recorded, making buying, selling, or transferring securities reliable and efficient.

nasdaq global market financial

"The Company’s ADSs will continue to be traded on the Nasdaq Global Market under"

The Nasdaq Global Market is a section of the stock exchange where larger, well-established companies are listed and publicly traded. It functions like a marketplace where investors can buy and sell shares of these companies, providing them with access to capital and opportunities for growth. Its role is important because it helps investors identify and invest in reputable companies with strong financial backgrounds.

forward-looking statements regulatory

"press release contains statements that may constitute “forward-looking” statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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

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LISHUI, China, April 15, 2026 (GLOBE NEWSWIRE) -- Lixiang Education Holding Co., Ltd. (the “Company” or NASDAQ: LXEH), a prestigious private education service provider in China, today announced that it will effectuate its previously announced change of the ratio of its American depositary shares (“ADSs”) to its ordinary shares (the “ADS Ratio”), par value US$0.0001 per share, from the current ADS Ratio of one (1) ADS to one hundred (100) ordinary shares to a new ADS Ratio of one (1) ADS to one thousand (1,000) ordinary shares (the “ADS Ratio Change”) on April 20, 2026 (the “Effective Date”).

For the Company’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-ten reverse ADS split. On the Effective Date, holders of ADSs in the Direct Registration System (“DRS”) and in The Depository Trust Company (“DTC”) will have their ADSs automatically exchanged and need not take any action. The exchange of every ten (10) then-held (existing) ADSs for one (1) new ADS will occur automatically, at the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank.

No fractional new ADSs will be issued in connection with the ADS Ratio Change. 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) will be distributed to the applicable ADS holders by the depositary bank.

The Company’s ADSs will continue to be traded on the Nasdaq Global Market under the symbol “LXEH.” The ADS Ratio Change will have no impact on the Company’s underlying ordinary shares, and no ordinary shares will be issued or cancelled in connection with the ADS Ratio Change.

About Lixiang Education Holding Co., Ltd.

Founded in Lishui City, China, Lixiang Education Holding Co., Ltd. is a prestigious private education service provider in Zhejiang Province. The Company’s education philosophy is to guide the healthy development of students and to establish a solid foundation for their lifelong advancement and happiness. For more information, please visit: www.lixiangeh.com. 

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company 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. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. 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: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; the Company’s ability to maintain and enhance its brand. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Siyi Ye
Tel: +86-578-2267142
Email: irlxeh@lsmxjy.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exactly is the ADS ratio change for Lixiang Education (LXEH) on April 20, 2026?

The ADS ratio will change to 1 ADS = 1,000 ordinary shares, a one-for-ten reverse ADS split for ADS holders. According to the company, the change is effective April 20, 2026 and replaces the prior ratio of 1 ADS to 100 ordinary shares.

Do LXEH ADS holders need to take action for the April 20, 2026 ADS ratio change?

No action is required; ADSs in DRS and DTC will be automatically exchanged on the Effective Date. According to the company, existing ADSs will be cancelled and new ADSs issued by the depositary bank.

How will fractional ADSs be handled after the LXEH ADS ratio change?

No fractional new ADSs will be issued; fractional entitlements will be aggregated and sold for cash. According to the company, net cash proceeds (after fees, taxes, expenses) will be distributed to applicable ADS holders.

Will the ADS ratio change affect Lixiang Education ordinary shares or Nasdaq listing?

No; the ADS Ratio Change does not affect the company’s ordinary shares and no ordinary shares will be issued or cancelled. According to the company, ADSs will continue trading on Nasdaq under the symbol LXEH.

What is the effective date and market impact for LXEH ADS ratio change?

The effective date is April 20, 2026, and the change is equivalent to a one-for-ten reverse ADS split for ADS holders. According to the company, trading continuity under LXEH on Nasdaq will be maintained.

How will DRS and DTC-held LXEH ADSs be exchanged during the ADS ratio change?

ADSs held in DRS and DTC will be automatically exchanged by the depositary bank on the Effective Date. According to the company, holders need not take any action and new ADSs will be issued upon cancellation of existing ADSs.