NaaS Technology Inc. Received Nasdaq Notification Regarding Minimum Market Value Deficiency

Rhea-AI Summary

NaaS Technology (NAAS), China's first U.S.-listed EV charging service company, received a notification from Nasdaq on June 13, 2025, regarding non-compliance with minimum market value requirements. The company fails to meet the $35 million minimum market value requirement for continued Nasdaq Capital Market listing. NaaS has until December 10, 2025, to regain compliance by maintaining a market value above $35 million for at least 10 consecutive business days. Additionally, the company doesn't meet other listing requirements including maintaining $2.5 million in stockholders' equity and $500,000 in net income from continuing operations. While trading continues under "NAAS", failure to meet requirements by the deadline could result in delisting proceedings.

Positive

• None.

Negative

• Company fails to meet Nasdaq's $35 million minimum market value requirement
• Company does not meet $2.5 million stockholders' equity requirement
• Company fails to meet $500,000 net income requirement
• Risk of potential delisting from Nasdaq if compliance is not achieved by December 10, 2025

Insights

Securities Compliance Expert

NaaS faces potential Nasdaq delisting due to multiple compliance failures, creating significant uncertainty for shareholders despite the remediation period.

NaaS Technology has received a serious notification from Nasdaq indicating non-compliance with three separate listing requirements. The primary issue is failing to maintain the minimum market value of listed securities (MVLS) of $35 million. More concerning is that the company also fails to meet two additional criteria: the $2.5 million stockholders' equity requirement and the $500,000 net income standard.

While the company has until December 10, 2025 to regain compliance with the MVLS requirement by maintaining a market value above $35 million for ten consecutive business days, the multiple compliance failures suggest deeper financial challenges. The notification doesn't immediately delist NaaS's shares, which continue trading under "NAAS" symbol, but it signals significant underlying problems.

These types of deficiency notices typically indicate a company in financial distress. The combination of insufficient market capitalization, inadequate stockholders' equity, and inability to generate required net income presents a concerning pattern. Even if NaaS manages to temporarily boost its market value to meet the MVLS requirement, the company would still need to address the other two deficiencies to maintain its listing long-term.

If compliance isn't achieved by the deadline, NaaS will receive further delisting notifications, though it may qualify for additional time or can appeal through a hearings panel. These proceedings typically create additional uncertainty for shareholders, with potential forced selling by institutional investors restricted from holding non-listed securities.

BEIJING, June 20, 2025 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS" or the "Company"), the first U.S.-listed EV charging service company in China, today announced that it has received written notification (the "MVLS Notice") from the Nasdaq Stock Market LLC ("Nasdaq") dated June 13, 2025, notifying the Company that it is currently not in compliance with the minimum market value of listing securities (the "MVLS") of US$35 million for continued listing of the Company's Class A ordinary shares on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(2) (the "MLVS Requirement"). Nasdaq calculates the MVLS based upon the most recent total shares outstanding multiplied by the closing bid price. The MVLS Notice indicated that the Company has 180 days, or until December 10, 2025 (the "Compliance Deadline"), to regain compliance with the MLVS Requirement by having its MVLS close at US$35 million or more for a minimum of ten consecutive business days. If at any time prior to December 10, 2025, the Company's MVLS closes at US$35 million or more for a minimum of ten consecutive business days, Nasdaq will provide a written confirmation of compliance and the matter regarding the Company's MLVS will be closed. Receipt of the MVLS Notice does not result in the immediate delisting of the Company's Class A ordinary shares and has no immediate effect on the listing or the trading of the Company's Class A ordinary shares on the Nasdaq under the symbol "NAAS." 

The MVLS Notice, however, contained a footnote referencing that the Company currently does not meet the other listing requirements under the Listing Rule 5550(b)(1) and 5550(b)(3), and is not in compliance with the listing standards which are: (i) an equity standard that the Company maintain stockholders' equity of at least US$2.5 million; and (ii) a net income standard regarding the Company's continuing operations of US$500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.

The MVLS Notice will not have any immediate effect on the listing of the Company's Class A ordinary shares, which continue to trade on The Nasdaq Capital Market under the symbol "NAAS". The Company intends to monitor its market value of publicly held shares between now and December 10, 2025 and intends to cure the deficiency within the prescribed grace period. During this time, the Company expects that its Class A ordinary shares will continue to be listed and traded on the Nasdaq Capital Market. If the Company does not regain compliance by the Compliance Deadline, the Company will receive further written notification from Nasdaq that its securities are subject to delisting. At that time, the Company may qualify for additional time or appeal the delisting determination to a hearings panel.

About NaaS Technology Inc.

NaaS Technology Inc. is the first U.S. listed EV charging service company in China. The Company is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. The Company is one of the leading providers of new energy asset operation services. The Company utilizes advanced technology to intelligently match charging supply with demand, offering electric vehicle users a seamless, efficient, and smart charging experience. Furthermore, NaaS empowers charging stations and charging station operators to optimize their operations, driving greater efficiency and enhancing profitability.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. 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: NaaS' goals and strategies; its future business development, financial conditions and results of operations; its ability to continuously develop new technology, services and products and keep up with changes in the industries in which it operates; growth of China's EV charging industry and EV charging service industry and NaaS' future business development; demand for and market acceptance of NaaS' products and services; NaaS' ability to protect and enforce its intellectual property rights; NaaS' ability to attract and retain qualified executives and personnel; the COVID-19 pandemic and the effects of government and other measures that have been or will be taken in connection therewith; U.S.-China trade war and its effect on NaaS' operation, fluctuations of the RMB exchange rate, and NaaS' ability to obtain adequate financing for its planned capital expenditure requirements; NaaS' relationships with end-users, customers, suppliers and other business partners; competition in the industry; relevant government policies and regulations related to the industry; and fluctuations in general economic and business conditions in China and globally. Further information regarding these and other risks is included in NaaS' filings with the SEC.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com 

Media inquiries:
E-mail: pr@enaas.com 

View original content:https://www.prnewswire.com/news-releases/naas-technology-inc-received-nasdaq-notification-regarding-minimum-market-value-deficiency-302487024.html

SOURCE NaaS Technology Inc.

FAQ

What is the deadline for NaaS Technology (NAAS) to regain Nasdaq compliance?

NaaS Technology has until December 10, 2025, to regain compliance by maintaining a market value above $35 million for at least 10 consecutive business days.

Why did NaaS Technology (NAAS) receive a Nasdaq deficiency notice?

NaaS received the notice for failing to meet three requirements: minimum market value of $35 million, stockholders' equity of $2.5 million, and net income of $500,000 from continuing operations.

Will NaaS Technology (NAAS) be immediately delisted from Nasdaq?

No, the notice does not result in immediate delisting. The company continues to trade on Nasdaq under NAAS while working to regain compliance by December 10, 2025.

What happens if NaaS Technology (NAAS) fails to meet Nasdaq requirements by the deadline?

If NaaS fails to meet requirements by December 10, 2025, it will receive a delisting notification but may qualify for additional time or appeal to a hearings panel.

What are the minimum Nasdaq listing requirements that NaaS Technology (NAAS) must meet?

NaaS must maintain a minimum market value of $35 million, stockholders' equity of $2.5 million, and net income of $500,000 from continuing operations.