SHENZHEN, China - Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH), also known as Peng’ai in China, is set to be delisted from The Nasdaq Capital Market following a determination letter from the Nasdaq Hearings Panel.
The panel cited the company's non-compliance with continued listing conditions. Trading of the company's securities will be suspended at the opening of business on Tuesday, May 21, 2024.
The Shenzhen-based company, which provides aesthetic medical services in China, stated it will not appeal the panel's decision. After delisting, AIH expects its American Depositary Shares (ADSs) to be quoted on the over-the-counter market operated by OTC Markets Group Inc. However, the company cautions that there is no assurance that brokers will maintain a market in its ADSs or that trading will continue on an OTC market at all.
Despite the delisting, AIH anticipates no significant effect on its operations within mainland China's aesthetic medical industry. The company has expressed a commitment to improving operational management and efficiency, with the goal of driving performance growth.
AIH, with over 20 years of clinical experience, operates treatment centers across major cities in China, particularly in the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtze River Delta area. Its services range from surgical and non-surgical aesthetic treatments to general medical services and other aesthetic services.
The information regarding AIH's delisting and plans is based on a press release statement from the company.
InvestingPro Insights
Aesthetic Medical International Holdings Group Limited (AIH) faces a new chapter as it transitions from Nasdaq to the over-the-counter market. Despite the challenges posed by delisting, InvestingPro data and insights reveal some interesting facets of the company's financial health and stock performance that are worth considering.
InvestingPro data shows that AIH has a market capitalization of 23.85 million USD, reflecting the size and scale of the company in the aesthetic medical industry. Additionally, the company's revenue for the last twelve months as of Q4 2023 stood at 96.17 million USD, with a modest revenue growth of 1.86%. This suggests that while the company is not experiencing explosive growth, it is maintaining a level of sales stability.
Investors looking at the company's recent stock performance will note the significant 27.95% price total return over the last month. This could indicate a potential rebound or a positive market reaction to specific company developments, despite the broader context of delisting. However, the one-year price total return shows a decline of 44.54%, which aligns with the challenges leading to its removal from the Nasdaq.
Among the InvestingPro Tips, analysts anticipate sales growth in the current year, which could signal that the company has strategies in place to improve its financial trajectory despite delisting. Furthermore, the valuation implies a strong free cash flow yield, suggesting that AIH may be generating enough cash to satisfy debt and investment needs, which is a positive sign for investors considering the company's financial resilience.
For investors interested in a deeper analysis of AIH, InvestingPro offers additional tips that could further inform investment decisions. To access these insights, visit https://www.investing.com/pro/AIH and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Note that there are 11 total InvestingPro Tips available for AIH, providing a comprehensive view of the company's financial health and stock performance.
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