Recently, Baijia Cloud announced that it has received notification from NASDAQ that the company has not submitted its performance report for the fiscal year ended June 30, 2023 in a timely manner and has not complied with NASDAQ listing rules.
NASDAQ requires Baijia Cloud to submit a plan to restore compliance before January 16, 2024 or within 60 trading days. If NASDAQ accepts the compliance plan, the company's deadline for submitting annual reports can be extended to April 29, 2024. If NASDAQ does not accept the compliance plan, the company can appeal to the hearing panel.
Regarding this letter, Baijia Cloud stated that the company is working hard to submit the annual report for the 2023 fiscal year as soon as possible. It is expected to submit its 2023 annual report or compliance plan within the specified deadline.
Perhaps influenced by this news, Baijia Cloud's stock price plummeted by 11.27% after hours on November 17th, dropping to $2.44, just one step away from the historical low set in November.
In July 2022, Fuwei Film announced that the company had signed a "merger agreement" with Baijiayun, and Baijiayun began to go public through backdoor listing. By December, Baijiayun announced the official completion of its merger and listing with Fuwei Film, and Baijiayun immediately entered the US securities market.
On its first day of listing, Baijia Cloud performed outstandingly. At one point in the session, it rose by over 63% and briefly triggered a circuit breaker. In the end, Baijia Yundang Daily received $9.38, an increase of 13.01% from the opening price of $8.3. However, the stock prices of Baijia Cloud fluctuated and declined all the way, presenting a stock price trend of "going public is the peak".
In the first half of this fiscal year, Baijia Cloud's performance maintained a certain degree of year-on-year growth. In the first half of the 2023 fiscal year, Baijia Cloud's total revenue was 40.9 million US dollars, a year-on-year increase of 32.2%; Net profit of 4.8 million US dollars, turning losses into profits.
However, behind turning losses into profits, Baijia Cloud has significantly reduced its expenses. Baijia Cloud's total operating expenses in the first half of the 2023 fiscal year were $6.78 million, a decrease of nearly 70% from the previous fiscal year's $19 million. Among them, sales and marketing expenses were 2.82 million US dollars, a year-on-year decrease of 43.3%; General and administrative expenses were only $1.2 million, a year-on-year decrease of 74%. Research and development expenses decreased from $10.1 million in the same period of fiscal year 2022 to $2.8 million. Especially for research and development expenses, Baijia Cloud mentioned that the equity compensation expenses for the research and development team have decreased, and the R&D salary expenses for the first half of the 2023 fiscal year have also decreased.
After the release of performance in the first half of the fiscal year, the valuation of Baijia Cloud remains sluggish. In order to boost the stock price, Baijia Cloud is attempting to expand new business, and AIGC is an important driving force. In June of this year, Baijia Cloud announced the launch of its first AIGC product, "MarketingEase". It is reported that this product is the first vertical industry model specifically designed for market promotion and public opinion monitoring in China.
At the same time, Li Gangjiang, Chairman of Baijiayun Group, and Ma Yi, President of Baijiayun Group, announced their commitment to lock in and signed a written lock in agreement. The agreement stipulates that within the next twelve months, Li Gangjiang and Ma Yi will not reduce their holdings of company shares in the secondary market, as proof of their confidence in the long-term value of the company.
In September of this year, Baijia Cloud launched the "Baiwen Big Model", targeting five major scenarios: intelligent big model AI customer service, document writing, personal AI assistant, digital person interactive live streaming, and marketing copywriting assistance.
But this series of actions still failed to boost the stock price. Since July, the stock price of Baijia Cloud has been continuously declining, setting new historical lows. Since the beginning of this year, its stock price has shrunk by over 70%.