Big Tree Cloud Holdings Limited Unveils New Share Structure and Consolidation Plan

Big Tree Cloud Holdings Limited (NASDAQ: DSY), a fast-growing company in the personal care industry, has announced transformative measures that will significantly impact its capital structure. During an extraordinary general meeting held on January 30, 2026, shareholders approved a 1-for-20 reverse stock split and the establishment of a dual-class share structure. These steps are designed to bolster the company’s market position and facilitate future growth.

Reverse Stock Split Details

The reverse stock split, effective February 12, 2026, involves consolidating every 20 ordinary shares into one ordinary share. This consolidation aims to enhance the market perceptions of Big Tree Cloud's stock and streamline its share structure. All shareholders will see their fractional shares rounded up to the nearest whole number, ensuring that no one loses their investment stake due to the consolidation.

The approval for this move came unanimously from both the shareholders and the company's board, reflecting strong confidence in the direction of the company. A spokesperson from Big Tree Cloud described this consolidation as a vital step towards establishing a more stable and robust capital framework, focusing on long-term strategies aimed at innovation and sustainable growth.

Dual-Class Share Structure Introduction

Following the successful implementation of the reverse stock split, Big Tree Cloud will transition to a dual-class share structure. The company will now be authorized to issue Class A and Class B shares, with the Class A shares representing a larger portion of the total share distribution. The final configuration allows for 20 million Class A shares and 5 million Class B shares, each with a nominal value of $0.002.

Previously issued ordinary shares will be transformed under this new structure, thereby redistributing the rights among shareholders. Importantly, this change is intended to provide management with greater control over the company, ensuring that their strategic vision is realized without undue pressures from external shareholders.

Management's Vision

The changes reflect the management's commitment to strengthening corporate governance and adapting to the evolving market landscape. In a statement, the spokesperson stated, "Today marks a significant milestone, as we implement a refined capital structure designed to support the next phase of growth for Big Tree Cloud. This share consolidation aims to establish a stronger market position for our stock."

Management's strategic focus will be on robust governance and driving innovation, which they identify as crucial for sustaining value for all stakeholders involved with Big Tree Cloud. By amending the memorandum and articles of incorporation, the company reinforces its charter to accommodate the new share structure, thus preparing it for future endeavors.

Future Plans and Market Position

Founded in 2020, Big Tree Cloud is strategically positioning itself within China’s booming personal care sector, with aims to extend its reach into artificial intelligence (AI) markets. This expansion is expected to tap into the growing demand for AI capabilities, injecting fresh energy into the company's operational scope. As the landscape for these industries shifts, Big Tree Cloud is primed for favorable positioning following these structural enhancements.

Forward-looking statements from the company suggest that while these changes foreshadow positive developments, they also highlight the inherent risks stating, "Investors should be aware that actual results may differ materially from expectations."

In conclusion, Big Tree Cloud Holdings Limited's recent announcements regarding the dual-class share structure and reverse stock split have set the stage for an ambitious future. Stakeholders can anticipate significant changes that reflect the company’s ongoing commitment to innovation and sustainable growth in the competitive landscape of personal care and beyond.