Today, Robo.ai officially announced the implementation of a 1-for-20 reverse stock split of its ordinary shares. As the Chief Executive Officer of the Company, I would like to take this opportunity to share candidly with you the strategic considerations behind this decision and to update you on our recent core business progress.
Strategic Restructuring: Optimizing Capital Structure and Reducing Net Debt This reverse stock split is a key component of the Company's proactive strategy to drive value realization. Currently, the Company's share price performance does not adequately reflect the preliminary results of our artificial intelligence transition and international expansion. Our genuine objective in implementing this reverse stock split is to eliminate compliance-related market noise, enabling the market to refocus on the Company's core fundamentals and business substance. Through this capital structure optimization, Robo.ai aims to enter the screening radar of mainstream global institutional investors and enhance the long-term liquidity and market position of our shares. To maximize the protection of existing shareholders' interests, fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. Furthermore, through recent corporate restructuring and the spin-off of debt-bearing subsidiaries, we are effectively reducing the Company's net debt levels, thereby establishing a solid capital platform for future business expansion and potential merger and acquisition initiatives.
Confronting Challenges: External Volatility Does Not Alter Steady Operational Resilience Although the recent complexities in international geopolitical dynamics and macroeconomic fluctuations have presented unforeseen impacts on the secondary market, Robo.ai's overall operations remain highly stable. Our global team has demonstrated strong operational resilience in navigating counter-cyclical environments, converting external pressures into internal execution momentum. At present, the Company has achieved tangible progress across key business lines, including data services, hardware distribution, and strategic restructuring, preliminarily forming a commercial closed loop to support future development.
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