NaaS Technology Inc. Faces Nasdaq Non-Compliance: A Deep Dive into Market Value Deficiency

BEIJING, June 20, 2025 – NaaS Technology Inc. (Nasdaq: NAAS), recognized as the pioneering U.S.-listed electric vehicle (EV) charging service company in China, today disclosed a significant development concerning its continued listing on the Nasdaq Capital Market. The company announced that it received a written notification, dated June 13, 2025, from the Nasdaq Stock Market LLC (the "MVLS Notice"), indicating non-compliance with Nasdaq's minimum market value of listed securities (MVLS) requirement. This critical threshold, set at US$35 million under Nasdaq Listing Rule 5550(b)(2), is a fundamental criterion for maintaining a listing on the exchange.

Nasdaq's methodology for calculating the MVLS is straightforward: it multiplies the most recent total shares outstanding by the closing bid price. The MVLS Notice signifies that NaaS Technology's current market valuation has fallen below this crucial US$35 million benchmark, triggering a formal notification process from Nasdaq. This development, while not immediately leading to delisting, initiates a period during which NaaS must regain compliance.

Understanding the Nasdaq Listing Rules and Implications

Nasdaq's listing rules are designed to ensure that listed companies maintain a certain level of financial health and market capitalization, protecting investors and upholding the integrity of the market. The MVLS requirement is one such rule, aiming to prevent the listing of companies with insufficient public float or market interest. Upon receiving such a notice, companies are typically granted a compliance period, often 180 calendar days, to rectify the deficiency. During this period, NaaS Technology will need to demonstrate that its market value has met or exceeded the US$35 million threshold for at least 10 consecutive business days.

Failure to regain compliance within the stipulated timeframe could lead to a delisting of the company's Class A ordinary shares from the Nasdaq Capital Market. A delisting can have severe consequences, including reduced liquidity for shares, diminished investor confidence, and potential difficulties in raising future capital. For NaaS, a delisting would also mean losing the prestige and visibility associated with a Nasdaq listing, which is particularly valuable for a company operating in the rapidly evolving EV charging sector.

Market Context and Challenges for NaaS Technology

NaaS Technology operates in the highly competitive and capital-intensive EV charging infrastructure market in China. While the long-term growth prospects for EV adoption and charging services remain robust, the sector has faced various challenges, including intense competition, fluctuating raw material costs, and the need for significant upfront investment in charging station deployment. Furthermore, broader macroeconomic headwinds, including global economic slowdowns and specific regulatory changes within China, can impact investor sentiment towards technology and growth stocks.

For NaaS, a declining market value could be attributed to several factors: a general downturn in the EV sector, company-specific performance issues, or broader market sentiment shifts away from growth stocks towards more stable assets. The company's ability to articulate a clear path to profitability and sustainable growth will be crucial in restoring investor confidence and, consequently, its market valuation.

Investment Insights and Path Forward

For current and prospective investors in NaaS Technology, this Nasdaq notification serves as a critical signal. While the company has a period to regain compliance, the situation warrants close monitoring. Investors should consider the following:

• Financial Health: Scrutinize NaaS's upcoming financial reports for signs of improving revenue, profitability, and cash flow. Strong operational performance is key to a sustainable increase in market value.
• Strategic Initiatives: Evaluate any strategic announcements from NaaS, such as new partnerships, expansion plans, or technological advancements, that could positively impact its market position and valuation.
• Market Conditions: Keep an eye on the broader EV market trends in China and globally. Favorable industry conditions could provide a tailwind for NaaS.
• Compliance Plan: Understand the company's specific plan to address the Nasdaq deficiency. This might involve a reverse stock split, which can increase share price but doesn't fundamentally change market capitalization, or more fundamentally, efforts to improve operational performance and investor relations.

NaaS Technology's management will likely be focused on implementing strategies to boost its share price and market capitalization. This could involve enhancing investor communication, demonstrating clear progress in its business operations, or exploring corporate actions designed to increase shareholder value. The coming months will be pivotal for NaaS as it navigates this compliance challenge and strives to maintain its presence on the Nasdaq Capital Market.