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Lixiang Education Holding Co., Ltd. (LXEH) has announced a significant change in its American Depositary Shares (ADS) ratio, moving from 1:100 to 1:1000. This adjustment, which functions as a 1-for-10 reverse stock split, is scheduled to become effective on April 20, 2026. The primary objective of this ratio change is to increase the per-share trading price of the ADS to maintain compliance with NASDAQ's minimum bid price requirements. While the nominal price per share will increase, the company's fundamental valuation and total market capitalization remain unchanged. Shareholders' positions will be adjusted automatically to reflect the new ratio on the effective date. Such technical adjustments are common among firms seeking to safeguard their listing status on major global exchanges.
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