HONG KONG - J-Long Group Limited (NASDAQ:JL), a Hong Kong-based distributor of garment trims, has been notified by the Nasdaq Stock Market LLC that it currently does not meet the minimum market value requirement for continued listing on the Nasdaq Global Market. The company was informed on Monday that its market value of publicly held shares (MVPHS) has fallen below the required minimum of US$5,000,000 for 30 consecutive business days, as stipulated by Nasdaq Listing Rules.
To regain compliance with the Nasdaq's MVPHS requirement, J-Long Group must boost its MVPHS to at least $5,000,000 for a minimum of 10 consecutive business days during a 180-day grace period, which ends on March 3, 2025. Failure to achieve this will result in a written notification of the company's shares being subject to delisting. However, the company may appeal any delisting decision or consider transferring its securities to the Nasdaq Capital Market.
The notice of non-compliance does not affect J-Long Group's current listing and its shares will continue to trade on the Nasdaq Global Market. The company's business operations remain unaffected by this notification, and J-Long Group plans to monitor its MVPHS closely and explore available options to regain compliance within the allotted timeframe.
J-Long Group, known for its distribution of both reflective and non-reflective garment trims such as heat transfers, fabrics, and zipper pullers, also offers services including market trend analysis, product design, development, production, and quality control.
This news is based on a press release statement from J-Long Group Limited and does not include any promotional content or endorsement of the company's claims. The information reflects the current status of J-Long Group's compliance with Nasdaq's listing requirements.
InvestingPro Insights
In light of J-Long Group Limited's (NASDAQ:JL) recent challenges with Nasdaq's minimum market value requirement, investors may find the following InvestingPro Insights particularly relevant. According to InvestingPro data, J-Long Group's revenue has seen a decline of 25.89% over the last twelve months as of Q4 2024. This contraction may be a contributing factor to the company's current predicament with the Nasdaq's listing requirements.
Despite the decline in revenue, J-Long Group's price/book ratio stands at 1.36, suggesting that the company's stock might be trading at a relatively reasonable valuation in terms of its net asset value. Additionally, the company has demonstrated a strong return over the last month, with a 19.32% total return, indicating some positive investor sentiment in the short term.
InvestingPro Tips for J-Long Group highlight that the company holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations. These points suggest a level of financial stability that could be reassuring to investors considering the company's ability to navigate current market conditions.
For those seeking a deeper analysis, there are 13 additional InvestingPro Tips available for J-Long Group, which can be accessed through the InvestingPro platform at https://www.investing.com/pro/JL. These tips offer insights that could help investors make more informed decisions regarding J-Long Group's stock.
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