Yimutian Inc. (Nasdaq: YMT) announced on October 26, 2026, a significant change to its American depositary shares (ADS) ratio. The company will adjust the ratio from one ADS representing 6,000 Class A ordinary shares to one ADS representing 60,000 Class A ordinary shares, effective on or around November 16, 2026. This change is similar to a 10-for-1 reverse split and aims to enhance the trading dynamics of its ADSs.
The decision to modify the ADS ratio is notable as it reflects Yimutian's strategy to manage its share structure more effectively. The company believes that this adjustment will potentially increase the ADS trading price proportionately, although it cannot assure that the post-change price will be 10 times the pre-change price.
Yimutian Inc. operates in the computer processing and data preparation services sector, as indicated by its SIC classification of 7374. The company is categorized as a non-accelerated filer and an emerging growth company, focusing on enhancing its market presence through strategic adjustments.
According to the filing, the ADS Ratio Change will require existing ADS holders to surrender and exchange every 10 ADSs they hold for one new ADS. JPMorgan Chase Bank, N.A., the depositary bank for Yimutian's ADS program, will manage this exchange. Importantly, no fractional new ADSs will be issued; instead, fractional entitlements will be aggregated and sold, with net proceeds distributed to ADS holders.
This change follows previous adjustments made by Yimutian in May and August 2026, where the ADS-to-Class-A-ordinary-share ratio was modified. The company aims to maintain its trading on the Nasdaq under the ticker symbol 'YMT' while adapting to market conditions.
The filing does not specify what actions will follow this announcement, but it indicates that the company may continue to amend or supplement its prospectus as needed.