HONG KONG, March 23, 2026 (GLOBE NEWSWIRE) -- Garden Stage Limited. (NASDAQ: GSIW) (“Garden Stage” or the “Company”) today announced that it received a notification letter (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) on March 20, 2026 notifying the Company that it has regained compliance with the Nasdaq Capital Market’s minimum bid price requirement and that the matter is now closed. On September 5, 2025, the Company was first notified by Nasdaq of its ...

Core Viewpoint - Garden Stage Limited is consolidating its Class A shares on a 200 for 1 ratio to regain compliance with Nasdaq listing requirements, effective March 6, 2026 [2][3]. Group 1: Share Consolidation Details - The consolidation will convert every 200 Class A Shares into one Class A Share with a par value of US$0.02, without requiring action from shareholders [3]. - Fractional shares resulting from the consolidation will be cancelled and returned to the pool of authorized but unissued shares [3]. - Prior to the consolidation, there are 282,485,623 Class A Shares and 9,250,000 Class B Shares outstanding [4]. Group 2: Post-Consolidation Share Structure - After the consolidation, the total number of issued and outstanding Class A Shares will be approximately 1,412,428, while the number of Class B Shares will remain at 9,250,000 [4]. Group 3: Company Overview - Garden Stage Limited is a financial services provider based in Hong Kong, primarily engaged in placing and underwriting services, securities dealing and brokerage services, and asset management services [1]. - The company operates through two wholly-owned subsidiaries: I Win Securities Limited and I Win Asset Management Limited, both licensed under the Securities and Futures Ordinance in Hong Kong [5].

Core Viewpoint - Garden Stage Limited, a Hong Kong-based financial services provider, announced a share reclassification effective February 12, 2026, on the Nasdaq Capital Market [1]. Group 1: Share Reclassification Details - The authorized share capital will change from US$50,000, consisting of 490,750,000 Class A Shares and 9,250,000 Class B Shares, to a new structure where 9,250,000 Class B Shares will be redesignated as Class B ordinary Shares, and 64,781,655 Ordinary Shares will be redesignated as Class A Ordinary Shares [2]. - Additionally, 425,968,655 authorized but unissued Ordinary Shares will be redesignated as authorized but unissued Class A Ordinary Shares, maintaining all rights and privileges as per the Second Amended and Restated Memorandum of Association [2]. Group 2: Company Operations - Garden Stage Limited operates through two wholly-owned subsidiaries in Hong Kong: I Win Securities Limited, licensed for Type 1 (dealing in securities) activities, and I Win Asset Management Limited, licensed for Type 4 (advising on securities) and Type 9 (asset management) activities under the Securities and Futures Ordinance [4]. - I Win Securities Limited is a participant of the Hong Kong Stock Exchange and holds trading rights, as well as being a participant of the Hong Kong Securities Clearing Company Limited [4].

Group 1 - The core viewpoint of the article highlights the significant increase in the stock price of GSIW, which opened up by 7.69% and reached a trading value of $0.14 per share, with a total market capitalization of $30.54 million as of December 17 [1] - Financial data indicates that as of March 31, 2025, GSIW reported total revenue of $5.4662 million, reflecting a year-on-year growth of 288.1%, while the net profit attributable to shareholders was -$4.3176 million, showing a year-on-year increase of 5.92% [1] - Garden Stage Limited, the parent company registered in the Cayman Islands, operates through its subsidiaries in Hong Kong, providing high-quality brokerage services and establishing long-term partnerships with clients [1] Group 2 - GSIW's brokerage services include opening investment accounts for clients in Hong Kong, facilitating stock trading, assisting with IPO applications, and providing underwriting services for listed companies [1] - The asset management subsidiary, GSIW Asset Management Limited, focuses on high-quality asset management services, including fund management, discretionary portfolio management, and third-party asset management [1]

Group 1 - The core viewpoint of the article highlights the significant increase in the stock price of GSIW, which rose by 5.0% to $0.137 per share, with a total market capitalization of $29.77 million as of December 17 [1] - Financial data indicates that as of March 31, 2025, GSIW reported total revenue of $5.4662 million, reflecting a year-on-year growth of 288.1%, while the net profit attributable to the parent company was -$4.3176 million, showing a year-on-year increase of 5.92% [1] - Garden Stage Limited, the parent company of GSIW, is registered in the Cayman Islands and operates primarily through its subsidiaries in Hong Kong, focusing on providing high-quality brokerage and asset management services [1] Group 2 - GSIW's brokerage services include opening investment securities accounts for clients, facilitating stock trading in Hong Kong, assisting with IPO applications, and providing underwriting services for listed companies [1] - The asset management services offered by GSIW include fund management, discretionary portfolio management, and third-party asset management [1]

Core Insights - I Win Asset Management Limited has entered into a strategic partnership with eBroker Group Limited and Royal Family Office to launch an AI-driven investment fund named "I Win Growth Global Equity (AI-Enabled) Segregated Portfolio" aimed at professional investors [1][2] Group 1: Fund Structure and Management - The fund will be co-managed by I Win Asset Management Limited and Quantsmile (HK) Ltd, structured as a Cayman Islands Segregated Portfolio long/short equity hedge fund [2] - The fund will utilize eBroker Group Limited's proprietary AI system, eBrAIny, to create portfolios focused on low volatility and high Sharpe ratio [2] Group 2: Company Background - Garden Stage Ltd., the parent company of I Win Asset Management, is a Hong Kong-based financial services provider engaged in placing and underwriting services, securities dealing and brokerage services, and asset management services [3]

Group 1 - The top five Chinese concept stocks that experienced the largest declines at closing were: Shangao Life Sciences down 61.73%, Yipin Weike down 31.55%, Yiying Securities down 29.83%, Phoenix Asia down 20.71%, and Mingteng International down 18.1% [1] - Shangao Life Sciences had a latest price of 1.500 with a decline of 2.420 and a trading volume of 154,700 [1] - Yipin Weike's latest price was 0.0753, down 0.0347, with a trading volume of 13,576,300 [1] - Yiying Securities closed at 0.1614, down 0.0686, with a trading volume of 6,469,500 [1] - Phoenix Asia's latest price was 13.320, down 3.480, with a trading volume of 16,680 [1] - Mingteng International had a latest price of 4.480, down 0.990, with a trading volume of 29,100 [1]

Group 1 - The top five Chinese concept stocks that experienced the largest declines in closing prices are ChowChow Cloud Inte, Youjia Insurance, Huize, Yiying Securities, and Mogu [1] - ChowChow Cloud Inte saw a significant drop of 32.59%, closing at 8.500 with a decrease of 4.110 and a trading volume of 2.1174 million [1] - Youjia Insurance declined by 20.65%, closing at 1.960 with a decrease of 0.510 and a trading volume of 0.5839 million [1] - Huize experienced a drop of 20.52%, closing at 3.060 with a decrease of 0.790 and a trading volume of 3.7048 million [1] - Yiying Securities fell by 17.24%, closing at 0.1407 with a decrease of 0.0293 and a trading volume of 0.14904 million [1] - Mogu saw a decline of 16.00%, closing at 4.200 with a decrease of 0.800 and a trading volume of 0.7557 million [1]

Group 1 - The top five gainers among Chinese concept stocks include MOGU with an increase of 84.4%, MSC with 37.39%, GSIW with 36.27%, MGIH with 25.14%, and SXTC with 22.86% [1] - MOGU's latest price is 4.610, with a trading volume of 445 million [1] - MSC's latest price is 4.740, with a trading volume of 3.9594 million [1] - GSIW's latest price is 0.1390, with a trading volume of 4.0412 million [1] - MGIH's latest price is 2.190, with a trading volume of 27.6205 million [1] - SXTC's latest price is 1.720, with a trading volume of 659,900 [1]

Financial Performance - Revenues for the year ended March 31, 2025, were US$5,466,243, a significant increase from US$1,408,469 in 2024 and US$3,259,296 in 2023[552] - The company recorded a net loss of US$4,317,642 for the year ended March 31, 2025, compared to losses of US$4,589,478 in 2024 and US$207,169 in 2023[552] - Total revenues increased by 288.1% from US$1,408,469 for the year ended March 31, 2024 to US$5,466,243 for the year ended March 31, 2025[603] - Net loss for the year ended March 31, 2025 was US$4,317,642, a decrease of 5.9% compared to a net loss of US$4,589,478 for the year ended March 31, 2024[602] - Total revenues decreased significantly by 56.8% from US$3,259,296 for the year ended March 31, 2023 to US$1,408,469 for the year ended March 31, 2024[629] Revenue Sources - Introducing and referral income accounted for 85.6% of total revenues in 2025, up from 18.8% in 2024 and 8.6% in 2023, indicating a strong growth in this segment[576] - Brokerage commissions represented approximately 6.0% of total revenues in 2025, a decrease from 28.3% in 2024 and 27.6% in 2023, reflecting a shift in revenue sources[570] - Due diligence service fees were introduced in 2025, contributing 1.5% to total revenues, while this segment had no contribution in 2024 and 2023[571] - Handling income accounted for 2.3% of total revenues in 2025, down from 9.1% in 2024 and 11.4% in 2023, indicating a decline in this revenue stream[575] - Advisory fees represented only 0.2% of total revenues in 2025, a sharp decline from 29.9% in 2024, highlighting a significant change in the advisory services market[566] - Investment management fee income for 2025 was $60,012, compared to $30,622 in 2023, showing growth in this area despite no revenue in 2024[577] Expenses and Losses - Total expenses for the year ended March 31, 2025, were $9,740,651,000, representing 178.2% of total revenues[588] - Compensation and benefits accounted for 68.0%, 233.3%, and 64.5% of total revenues for the years ended March 31, 2025, 2024, and 2023, respectively[592] - Communications and technology expenses accounted for 33.2%, 31.1%, and 3.6% of total revenues for the years ended March 31, 2025, 2024, and 2023, respectively[591] - Professional fees accounted for 14.1%, 26.8%, and 19.5% of total revenues for the years ended March 31, 2025, 2024, and 2023, respectively[596] - Total expenses increased by 62.8% from US$5,984,588 for the year ended March 31, 2024 to US$9,740,651 for the year ended March 31, 2025[602] Market Conditions - The financial services industry is influenced by economic conditions, trading volume, and regulatory changes, which can materially affect the company's results[553] - The competitive landscape in Hong Kong is intense, with larger competitors posing challenges in brand recognition and service offerings[561] - The ongoing geopolitical tensions, including the Russia-Ukraine conflict and the Israel-Hamas war, have not materially impacted the company's operations as of now[562] - The introduction of tariffs and trade tensions has created uncertainty in international markets, prompting the company to diversify trading strategies[563][564] - The company is focused on monitoring macroeconomic trends and maintaining communication with clients to mitigate potential adverse effects from global trade shifts[564] Compliance and Risk Management - Regulatory compliance is critical, with potential penalties for failing to meet capital requirements, which could adversely affect financial results[558][559] - The allowance for expected credit losses increased from US$7,668 in 2024 to US$105,920 in 2025, indicating a significant rise in anticipated credit risk[672] - The company has not entered into any financial guarantees or derivative contracts that would expose it to additional financial risks[682] Cash and Financing - As of March 31, 2025, the company had US$7,885,624 in cash and restricted cash, with US$7,185,937 held in Hong Kong dollars[655] - Net cash used in operating activities for the year ended March 31, 2024, was US$7,090,770, significantly impacted by advance payments for IT and marketing services[664] - Net cash provided by financing activities for the year ended March 31, 2024 was US$9,693,950, primarily from net proceeds of US$10,133,680 from the IPO, offset by offering costs of US$435,835[667] Customer Concentration - For the year ended March 31, 2025, two counterparties accounted for approximately 54% and 31% of total revenue, indicating significant customer concentration risk[673] - As of March 31, 2025, receivables from three counterparties accounted for approximately 37%, 23%, and 10% of total receivables before allowance for expected credit losses[674]