Nanjing-based Tuniu Corporation, a company specializing in transportation services, has received a notification from the Nasdaq Stock Market regarding the minimum bid price of its shares. The notice, which is a standard communication under Nasdaq rules, was issued because the company's stock has traded below the minimum required bid price for a period of time.
In accordance with Nasdaq Listing Rule 5450(a)(1), companies listed on the exchange must maintain a minimum bid price of $1.00 per share. When a company's shares fail to meet this requirement for 30 consecutive business days, Nasdaq sends a deficiency notice. This notification does not result in the immediate delisting of the company's shares. Instead, Tuniu will have a compliance period of 180 days to regain compliance with the minimum bid price rule.
During this 180-day period, Tuniu's shares will continue to trade on the Nasdaq Stock Market. The company can regain compliance if, at any time before the compliance period expires, the bid price of its stock closes at or above $1.00 per share for a minimum of 10 consecutive business days.
Tuniu's receipt of the notice does not affect its business operations or its SEC reporting requirements. The company will continue to operate as usual and will seek to resolve the issue within the given timeframe. If Tuniu fails to meet the minimum bid price requirement by the end of the compliance period, it may be eligible for an additional 180-day grace period if it meets all other listing standards.
The information regarding Tuniu's receipt of the minimum bid price notice is based on a press release statement issued by the company and filed with the SEC. The notification is a regulatory measure and does not reflect on the company's performance or financial stability. Investors will be watching closely to see how Tuniu addresses this challenge in the coming months.
In other recent news, Tuniu Corporation has posted a record net income in Q2 2024, with a significant year-over-year revenue increase. The company's core business, package tours, surged by 29%, contributing to a net income reaching a record high of RMB 43 million.
This growth was attributed to the expansion of the domestic travel market and an increase in outbound travel. Tuniu's focus on customer needs and product enhancement was also noted, with new tour products seeing a repurchase rate twice that of regular products.
The company's financial controller announced an optimistic revenue forecast for the third quarter of 2024, expecting a 3% to 8% year-over-year increase. However, other revenues saw a decrease by 10% year-over-year due to lower commission fees and financial services revenues.
Despite this, Tuniu anticipates a 3% to 8% increase in net revenues year-over-year for Q3 2024. The company plans to maintain profitability and continue providing high-quality services and diverse products. These are the recent developments for the Tuniu Corporation.
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