CHENGDU, China - Qilian International Holding Group Limited (NASDAQ: QLI), a pharmaceutical and chemical products manufacturer based in China, has recently announced its return to compliance with NASDAQ's minimum bid price requirement.
The company's Class A ordinary shares maintained a closing bid price of $1.00 or higher over the span of 10 consecutive business days, from June 21, 2024, to July 9, 2024. This achievement has led NASDAQ to close the matter regarding the company's compliance with Listing Rule 5550(a)(2).
Qilian International operates out of Gansu, China, and has a diverse product portfolio that includes licorice and oxytetracycline products, derivatives of traditional Chinese medicine, heparin, sausage casings, and fertilizers. These products have a market presence across more than 20 provinces in China.
The compliance notice from NASDAQ is a positive development for the company, which had previously been under scrutiny for not meeting the exchange's minimum bid price rule. This rule is one of the requirements for continued listing on the NASDAQ stock market and requires that a company's stock maintains a minimum closing bid price of $1.00 per share.
This news article is based on a press release statement issued by Qilian International Holding Group Limited.
InvestingPro Insights
In light of Qilian International Holding Group Limited's (NASDAQ: QLI) recent compliance achievement with NASDAQ's listing rules, a closer examination of the company's financial health and market performance through InvestingPro data and tips offers additional insights. Qilian, with its diverse pharmaceutical and chemical product offerings, is trading at a low Price / Book multiple of 0.71 as of the last twelve months ending Q4 2023. This valuation metric can be appealing to value investors looking for potentially undervalued stocks.
Despite challenges, Qilian has maintained a robust liquidity position. The company holds more cash than debt on its balance sheet, which is a sign of financial stability. Moreover, Qilian's liquid assets exceed its short-term obligations, providing further reassurance about the company's ability to meet its immediate financial liabilities.
InvestingPro data shows that Qilian's market capitalization stands at $30.53 million USD. However, it is essential to note that the company has not been profitable over the last twelve months, with a negative P/E ratio of -3.94, and has experienced a significant revenue decline of -28.35% over the same period. Additionally, the company's gross profit margin is relatively weak at 3.77%.
For investors interested in a more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/QLI. These tips can provide valuable guidance on the stock's trading patterns, such as its high price volatility and the large price uptick over the last six months. Subscribers to InvestingPro can access a total of 12 tips, offering comprehensive insights into Qilian's financial and market performance. To benefit from these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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