Big Tree Cloud Holdings Ltd Faces Nasdaq Compliance Challenges
Big Tree Cloud Holdings Limited, a Shenzhen‑based manufacturer of personal care products, has received two formal notifications from Nasdaq regarding its market‑value requirements. The letters, issued on December 29 2025 and December 31 2025, cite deficiencies in the company’s Market Value of Listed Securities (MVLS) and Market Value of Publicly Held Shares (MVPHS), both of which fell below Nasdaq’s minimum thresholds of $50 million and $15 million, respectively.
Under Nasdaq Listing Rule 5810(c)(3)(C), the company has been granted a 180‑day compliance window that ends on June 29 2026. During this period, the company must bring its MVLS to at least $50 million for a minimum of ten consecutive business days in order to regain full compliance. A similar benchmark applies to MVPHS, though the specific recovery target for the latter has not yet been clarified in the notification.
Big Tree Cloud’s current market capitalization stands at approximately $28 million, and its stock closed at $0.295 on January 1, 2026, a significant distance from the required thresholds. The company’s price‑earnings ratio is negative, at –27.01, reflecting the challenges it faces in converting sales into earnings.
The company’s product portfolio includes sanitary napkins, panty liners, and sanitary pants, which are marketed under the BIGTREE CLOUD and YALUOTA brands. Big Tree Cloud sells these items in the United States, Europe, and Africa, and it also offers OEM/ODM services to other manufacturers. The firm is a subsidiary of Ploutos Group Limited and was founded in 2020.
Nasdaq’s notice does not immediately delist the company; however, failure to meet the MVLS and MVPHS requirements within the allotted time could trigger a delisting action. Analysts note that the company’s ability to attract additional equity investment or to increase trading liquidity will be crucial in meeting the 50‑million MVLS target.
While the company has not issued a formal statement outlining its remedial strategy, market observers anticipate that Big Tree Cloud may consider capital‑raising measures, such as a secondary offering or a debt‑to‑equity swap, to boost its market value. Additionally, the firm may look to expand its distribution footprint in emerging markets or secure strategic partnerships to drive revenue growth.
The compliance deadline falls within a period of heightened scrutiny for Chinese‑listed firms on U.S. exchanges, as regulators increasingly focus on market‑value metrics to ensure investor protection. Big Tree Cloud’s situation underscores the importance of maintaining robust liquidity and transparent corporate governance practices for companies operating under Nasdaq’s listing standards.
