What is the ratio and purpose of LZ Technology’s (LZMH) 2026 reverse share split?

LZ Technology approved a 1-for-20 reverse share split to help meet Nasdaq’s $1.00 minimum bid requirement. According to LZ Technology, twenty existing ordinary shares will automatically combine into one new share.

When does the LZ Technology (LZMH) reverse share split take effect?

The reverse share split becomes effective for trading on May 22, 2026. According to LZ Technology, Class B Ordinary Shares will begin trading on a split-adjusted basis that day under the same Nasdaq ticker, LZMH.

How will the LZMH 1-for-20 reverse share split affect outstanding shares?

The split reduces outstanding Class A shares from 22,500,000 to about 1,125,000 and Class B from 157,070,000 to about 7,853,500. According to LZ Technology, authorized shares will be 160,000,000 Class A and 3,760,000,000 Class B.

Will LZ Technology’s (LZMH) ticker or CUSIP change after the reverse share split?

The Nasdaq ticker will remain LZMH after the reverse split. According to LZ Technology, Class B Ordinary Shares will trade with a new CUSIP, G57Y3D117, and a new par value of US$0.0005 per share.

LZ Technology Holdings Limited Announces 1-for-20 Reverse Share Split

LZ Technology (Nasdaq:LZMH) approved a 1-for-20 reverse share split of its Class A and Class B ordinary shares.

Rhea-AI Impact

(Very High)

Rhea-AI Sentiment

(Very Negative)

Rhea-AI Summary

LZ Technology (Nasdaq:LZMH) approved a 1-for-20 reverse share split of its Class A and Class B ordinary shares. Effective May 22, 2026, Class B shares will trade on a split-adjusted basis with new CUSIP G57Y3D117 and par value US$0.0005 per share.

Every twenty shares will convert into one share, with no fractional shares; any fraction will be rounded up to the nearest whole share. The action aims to raise LZMH’s share price to meet Nasdaq’s $1.00 minimum bid requirement. Outstanding shares will change from 22,500,000 to about 1,125,000 Class A and from 157,070,000 to about 7,853,500 Class B, while authorized shares will be 160,000,000 Class A and 3,760,000,000 Class B.

Argus May 20 session

-22.93% close to close Open Argus

Details

News Market Reaction – LZMH

In the May 20 session, LZMH declined 22.93%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -22.9% in the session following this news. A negative reaction despite the technic...

Analysis

The stock dropped -22.9% in the session following this news. A negative reaction despite the technical nature of a reverse split would fit prior patterns where constructive updates, such as revenue growth and partnerships, were followed by declines of 5.16% and 4.37%. The stock already traded far below its 200-day MA and 99.74% under its 52-week high, so sentiment had been weak. The capital-structure changes reflected in recent meetings may highlight ongoing listing and governance overhangs.

Key Figures

Reverse split ratio: 1-for-20 Effective date: May 22, 2026 New par value: US$0.0005 per share +5 more

Reverse split ratio: 1-for-20; Reverse share split of Class A and Class B ordinary shares
Effective date: May 22, 2026; Class B Ordinary Shares begin trading on split-adjusted basis
New par value: US$0.0005 per share; Par value for split-adjusted shares
Minimum bid requirement: US$1.00; NASDAQ minimum bid price the split is intended to satisfy
Pre-split Class A shares: 22,500,000; Class A Ordinary Shares issued and outstanding before split
Pre-split Class B shares: 157,070,000; Class B Ordinary Shares issued and outstanding before split
Post-split Class A shares: 1,125,000; Class A Ordinary Shares issued and outstanding after split
Post-split Class B shares: 7,853,500; Class B Ordinary Shares issued and outstanding after split

Historical Context

2 past events · Latest: May 06

2 events

May 06
Annual report filing

24h Move

-5.2%

Reported 2025 Form 20-F with strong revenue growth and higher cash.
Dec 05
Strategic partnership

24h Move

-4.4%

Announced UAE family office partnership to drive MENA regional expansion.

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

Key Terms

reverse share split, par value, cusip, transfer agent, +1 more

5 terms

par value financial

"a new par value of US$0.0005 per share."

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 financial

"under the same symbol “LZMH” but with a new CUSIP number, G57Y3D117"

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

transfer agent financial

"instructions from the Company’s transfer agent, Transhare Corporation, regarding"

A transfer agent is a financial service that keeps the official record of who owns a company's shares, handles the buying and selling of those shares on paper or electronically, and issues or cancels stock certificates. Think of it as the company’s records keeper and mailroom combined—investors rely on it to make sure dividends, shareholder mailings, ownership changes, and proxy voting are processed accurately and securely, which protects ownership rights and helps prevent errors or fraud.

minimum bid price requirement financial

"to satisfy the $1.00 minimum bid price requirement for continued listing"

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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05/20/2026 - 08:30 AM

XIAMEN, China, May 20, 2026 (GLOBE NEWSWIRE) -- LZ Technology Holdings Limited (Nasdaq: LZMH, the "Company"), today announced that the shareholders and the board of directors of the Company approved a one-for-twenty reverse share split of the Company’s issued and unissued Class A ordinary shares (the “Class A Ordinary Shares”) and Class B ordinary shares (the “Class B Ordinary Shares”). Beginning May 22, 2026, the Company’s Class B Ordinary Shares will be trading on a split-adjusted basis under the same symbol “LZMH” but with a new CUSIP number, G57Y3D117, and a new par value of US$0.0005 per share.

As a result of the reverse share split, each twenty ordinary shares outstanding will automatically combine and convert to one issued and outstanding ordinary share without any action on the part of shareholders who hold their shares in brokerage accounts or “street name.” Shareholders holding certificates of ordinary shares are expected to receive instructions from the Company’s transfer agent, Transhare Corporation, regarding procedures for exchanging share certificates. No fractional shares will be issued as a result of the reverse share split, and instead, all such fractional shares resulting from the reverse share split will be rounded up to the nearest whole share.

The reverse share split is intended to increase the per share trading price of the Class B Ordinary Shares to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Stock Market. Prior to the reverse share split, the Company has 22,500,000 Class A Ordinary Shares and 157,070,000 Class B Ordinary Shares issued and outstanding. Following the reverse share split, the Company will have approximately 1,125,000 Class A Ordinary Shares and 7,853,500 Class B Ordinary Shares issued and outstanding, and the Company will have 160,000,000 authorized Class A Ordinary Shares and 3,760,000,000 authorized Class B Ordinary Shares.

About LZ Technology Holdings Limited

LZ Technology Holdings Limited is an information technology and advertising company operating through its subsidiaries in China. The Company’s business spans three key verticals: Smart Community, Out-of-Home Advertising, and Local Life. Its Smart Community services provide intelligent access control and safety management systems, installed in thousands of residential communities in China. Its Out-of-Home Advertising division offers multi-channel advertising solutions through a vast network of monitors across approximately 120 cities in China, with ad placements on access control screens, SaaS platforms, and third-party advertising spaces. The Company’s Local Life vertical connects businesses with consumers through online promotions, social media marketing, and retail sales of various products and services. LZ Technology is committed to providing high-quality services to communities and businesses.

Safe Harbor Statement

Certain statements in this release constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “forecast,” “project,” “intend,” “expect,” “plan,” “should,” “would,” and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company’s previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (the “SEC”), copies of which may be obtained from the SEC’s website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release, other than as required by applicable law.

For further information, please contact:

Michael Wu
Investor Relations
LZ Technology Holdings Limited
michael@lzmh.co

FAQ

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

What happens to fractional shares in the LZ Technology (LZMH) reverse split?

No fractional shares will be issued in the reverse split. According to LZ Technology, any fractional share position created by the 1-for-20 conversion will be rounded up to the nearest whole share for affected shareholders.

Do LZ Technology (LZMH) shareholders need to take action for the reverse split?

Shareholders holding in brokerage or street name do not need to act. According to LZ Technology, certificated shareholders will receive instructions from transfer agent Transhare Corporation on exchanging old share certificates for new ones.

LZ Technology Holdings Limited Announces 1-for-20 Reverse Share Split

Rhea-AI Summary

Positive