Autozi Internet Technology (Global) Ltd. saw its stock price skyrocket by more than 400% in early Nasdaq trading on Tuesday, reaching $5.69 after closing the previous session at $1.13. The dramatic move came on heavy volume of approximately 76.5 million shares, with intraday swings between $1.10 and $11.84, highlighting the volatility typical of small-cap stocks.
The surge follows a 10-for-1 reverse stock split implemented in March, which reduced the company's Class A ordinary shares outstanding to about 4.49 million. The consolidation was part of Autozi's strategy to maintain its Nasdaq listing requirements by boosting its per-share price.
Despite the sharp rally, the company's recent financial performance paints a starkly different picture. In a filing exhibit dated May 29, Autozi reported revenue of $29.5 million for the six months ended March 31, a decline of 63.1% compared to the same period last year. Gross profit plunged 82.5% to just $0.24 million, while the net loss attributable to ordinary shareholders widened to $13.8 million from $5.2 million a year earlier.
Management attributed the revenue drop to challenging conditions in the lubricant market and the company's strategic pivot toward the new-energy vehicle sector. Operating expenses surged 64.6%, driven largely by increased financing costs.
Based in Beijing, Autozi positions itself as a lifecycle automotive services and supply-chain technology platform in China, selling products and services through both online and offline channels. Founded in 2010, the company leverages supply-chain cloud and software tools to connect various players in the automotive industry.
Other U.S.-listed Chinese auto stocks showed mixed performance. Jiuzi Holdings jumped 74% to $2.19, while U Power slipped 3% to $1.31, and SunCar Technology edged up 3% to $1.17.
Autozi shares have been highly sensitive to news flow. In March, the company announced that co-investors would begin transferring a $30 million tranche of assets, the first installment of a $110 million equity deal priced at $1.30 per share, following a $7 million injection from its largest shareholder.
However, the risks are substantial. The current surge, fueled by strong order flow, could reverse quickly if anticipated funding, compliance with listing rules, or operational improvements fail to materialize. In its annual report, Autozi acknowledged that it has not achieved profitability, reported negative operating cash flow, and expressed “substantial doubt” about its ability to continue as a going concern, indicating potential cash flow or liquidity challenges.
Traders are closely watching whether Tuesday's volume spike will be sustained. For longer-term investors, the fundamental concerns remain: cash burn, ongoing losses, and the company's ability to leverage funding announcements to build a more stable automotive-services business.
