After being listed for six months, the stock price dropped by 97%, will the name change of Ping An Biotech (PASW.US) attract attention but fail to increase the stock price?

In 2025, despite the complex and changing external environment, 93 Chinese enterprises successfully landed on the main board of the US stock market through IPOs, SPAC mergers, and OTC transfers, an increase of 7.8% compared to the previous year's 64 companies. By the end of 2025, there were 149 companies that had publicly submitted applications to list in the US, demonstrating the enthusiasm of Chinese companies for US listings. In terms of listing paths, out of the 93 Chinese concept stocks that successfully listed on the US stock market last year, traditional IPOs still dominated, with 84 companies completing their listings through IPOs, accounting for as high as 90.3%; only 1 company transferred from the OTC market to the main board, accounting for a mere 1.1%. Furthermore, 8 Chinese concept stock companies landed on the US stock market through De-SPAC (Special Purpose Acquisition Company merger) mode, accounting for 8.6%. One of them is WeiMei Holdings (MJID.US). It is understood that WeiMei Holdings is the first company to receive a filing notice from the China Securities Regulatory Commission since the new regulations were implemented, but its IPO journey was not smooth. The company had submitted an F-1 filing in April 2023 and had updated its prospectus several times before finally obtaining the ticket to Nasdaq in July 2025. However, less than 2 months after listing on the US stock market, WeiMei Holdings announced a name change to "Ping An Biomedical", changing its ticker symbol from "MJID.US" to "PASW.US". At the same time, the company's main business shifted from clothing supply chain management services to focusing on biomedical research and healthcare core areas, aiming to build a globally competitive biomedical research and development platform. This transformation clearly surprised the market. The name change couldn't save the falling stock price. Since its listing on July 18, WeiMei Holdings (Ping An Biomedical) has been on a downward trend. The stock opened at $5.39 on the first day, a 10.17% decline from its IPO price of $6, indicating a lack of market confidence. After the opening, the stock price continued to drop, hitting a low of $2.55, a 57.5% drop from the IPO price. Thanks to a slight rebound at the end of the day, WeiMei Holdings closed at $3.30, a 45.00% decrease. The $1.23 price difference between the closing price and the intraday low reflects the intense battle between buyers and sellers. It is worth noting that on the first day of trading, WeiMei Holdings' trading volume of 4.82 million shares was 2.35 times its floating share capital (calculated based on 2.5 million shares issued), which means that initial shareholders and new investors completed a large-scale chip exchange, paving the way for the stock price trend. The facts have proven that the sharp drop on the first day was just the beginning of the decline for WeiMei Holdings. After the first day, the stock went on a four-day losing streak, pushing the stock price below $2. In the first 10 trading days after the listing, the company only had one positive trading day and quickly entered a period of low volatility. In the five-month period from August 4 to January 8, the BOLL line of WeiMei Holdings showed a downward trend, guiding the stock price to continue its downward trend. During this period, the stock price mechanically oscillated along the lower and middle BOLL lines, showing a trend of a lackluster market. Despite two attempts to break through the upper BOLL line in September and December, there was no significant increase in trading volume, leading to price fluctuations and low trading volume. Additionally, according to the company's prospectus, WeiMei Holdings was originally a domestic clothing supply chain management service provider. Its main business was to provide overseas customers with customized production services for cashmere knitwear. The company's clients mainly came from European and American markets such as the UK, Italy, and Australia, mainly small to medium-sized clothing brands, e-commerce retailers, and purchasing agents. From a business perspective, the company did not have its own brand or engage in retail, but acted as a typical "foreign trade processing factory," providing a one-stop supply chain service. However, less than two months after listing, WeiMei Holdings, now Ping An Biomedical, announced in September last year that it would change its name and focus its main business on biomedical research and healthcare. The name change seemed to have little impact on the company's value. On October 1, the stock price fell below the lower BOLL line and continued to remain low. On November 24, Ping An Biomedical received a notice from the Nasdaq eligibility department, informing the company that it no longer met the continuous listing requirements of a minimum bid price of $1 per share based on the company's closing price during October 10 to November 20, 2025, putting it at risk of delisting. Having "biomedical" in its name, but without the actual business? As mentioned earlier, before the name change, Ping An Biomedical was a clothing supply chain management service provider. According to the prospectus, its main business was to provide custom production services for cashmere knitwear for overseas customers. The company did not have its own brand and did not engage in retail, but acted as a "foreign trade processing factory" offering one-stop supply chain services. Financial data from the prospectus showed that the company's revenue was 82.5637 million yuan and 87.6224 million yuan, with an increase of 6.2%. The majority of the revenue came from yarn sales, accounting for 95% of the total revenue in 2024. Benefiting from increased customer demand, yarn sales in 2024 increased by 8.1% year-on-year to 83.269 million yuan. However, sales of finished garments declined from 552.4 million yuan in the 2023 fiscal year to 435.34 million yuan in the 2024 fiscal year. Even after changing its name to Ping An Biomedical, the company continued to engage in clothing supply chain management services. In its financial performance for the 2025 fiscal year disclosed on September 30, 2025, the company's core revenue still came from yarn sales, accounting for 92% of the revenue. On January 9, Ping An Biomedical announced a non-binding cash investment plan of $30 million and planned to acquire Future Biotech Company for $60 million. This news led to a significant increase in the company's stock price on January 12, but the hype only lasted for one trading day. On January 13 and 14, Ping An Biomedical's stock price fell by 16.88% and 7.25% respectively, once again pushing the price down to around $0.2, a 96.67% decrease from the initial offering price, further widening the gap between the company and its compliance objectives.