ZW Data Action Technologies Inc. - CNET STOCK NEWS

ZW Data Action Technologies Inc. (Nasdaq: CNET) announced a 1-for-5 reverse stock split aimed at regaining compliance with Nasdaq's $1.00 minimum bid price requirement. This split will reduce the authorized share count from 100 million to 20 million, and outstanding shares will be converted automatically on January 18, 2023. Shareholder ownership percentages remain unchanged, and fractional shares will be rounded up. The shares will start trading at the adjusted rate on January 20, 2023. This action is crucial for the company to maintain its listing on the Nasdaq Capital Market.

ZW Data Action Technologies (CNET) announced a strategic cooperation with Superwin Technology to develop a Web3.0 application service platform. This partnership aims to offer cost-effective computing power and blockchain services to Web3.0 application suppliers. Superwin will provide the infrastructure, while ZW Data will focus on technology and service integration. The initiative is expected to enhance efficiency in computing resource usage, facilitating commercial growth in the Web3.0 sector.

ZW Data Action Technologies (CNET) has announced a strategic partnership with Micro Connect to enhance the development of brick-and-mortar retail in China. This collaboration aims to bridge international capital with local innovation, offering long-term financial support to small and micro businesses. Micro Connect has a proven track record, having invested in over 1,800 stores across 31 provinces. The partnership is expected to accelerate brand growth and capitalize on China's anticipated consumption rebound in 2023, following recent policy adjustments on the pandemic.

ZW Data Action Technologies Inc. (CNET) reported a 39.4% revenue decline to $7.22 million in Q3 2022, down from $11.90 million, primarily due to the impact of COVID-19 on SMEs in China. Operating loss increased to $1.83 million, with a gross loss margin of 0.7%. For the first nine months, revenues fell 37.4% year-over-year to $21.81 million. Notably, the company achieved a gross profit of $0.002 million, a significant improvement from the $0.89 million loss last year. As of September 30, 2022, cash reserves decreased to $2.15 million.

ZW Data Action Technologies (CNET) announced its brand value was assessed at $364 million by Asiabrand Group. The evaluation, based on multiple indicators, highlights the Company's strong market presence and potential for appreciation. As it transitions from an advertising service provider to a data-driven operation company, ZW Data is leveraging technology in blockchain and big data to enhance its services. The report underscores the stability in key financial indicators, with a significant development potential valued at approximately $270 million.

ZW Data Action Technologies (CNET) announced a letter of intent to acquire Henan Baodun Information Technology, a full-service internet marketing firm. The acquisition aims to enhance ZW Data's competitiveness in the short video platform market and expand its eCommerce services. Baodun generated about $50 million in revenue in 2021 and expects double-digit growth this year. Completion of the transaction is anticipated in Q4 2022, and Baodun will operate as a wholly-owned subsidiary. The integration is expected to boost revenue and profitability significantly.

ZW Data Action Technologies (CNET) announced the formation of the Mass Entrepreneurship and Innovation Incubation System with BTF Venture Limited. This initiative aims to connect domestic and international entrepreneurial resources, focusing on financing support for growth enterprises in the Guangdong – Hong Kong – Macao Greater Bay Area, projected to reach a total economic volume of 14.76 trillion yuan in 2022. The collaboration will create a strategic service platform to support various industries and enhance investment opportunities for emerging companies.

ZW Data Action Technologies Inc. (CNET) reported a significant revenue decline of 52.3%, totaling $6.95 million in Q2 2022, attributed to COVID-19 impacts on SME clients in China. Despite a reduced gross loss of $0.08 million, operating expenses were mixed, with a 68.4% drop in general and administrative expenses but a 45.5% rise in sales and marketing costs. The company's net loss narrowed to $1.71 million ($0.05 per share) from $3.65 million in the prior year. For H1 2022, revenues decreased by 36.4% to $14.60 million, while gross profit turned positive at $0.05 million, reflecting improved margins.

ZW Data Action Technologies (CNET) announced a strategic partnership with Nanyue Health to enhance digital medicine services. This collaboration will focus on two phases: Phase One involves expanding the market for Smart Medicine Cabinet Machines and promoting Nanyue's brand, while Phase Two includes technological cooperation via blockchain for online and offline health services. This partnership taps into the growing Chinese health market, which has seen increased demand for 'contactless services' during the pandemic. ZW Data aims to leverage big data technologies to propel mutual growth.