Shareholders OK board’s power to approve a reverse split as large as 8,000-to-1 (HUHU)

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HUHUTECH International Group Inc. (HUHU) won shareholder backing to let its board shrink the share count — by anything from a modest two-for-one to a jaw-dropping eight-thousand-for-one — and the company laid out how that power will be used. In a new disclosure, the company said the vote gives the board two years to pick the exact consolidation ratio and the effective date.

HUHU stock chart

HUHU

Board now empowered to pick the split — and to round up fractions

Put simply: shareholders authorized the board to implement one or more share consolidations (reverse splits) at a ratio not less than two-for-one and not more than eight-thousand-for-one. The board, not investors, will decide the precise ratio and when it takes effect, as long as it acts within two years of the Jan. 29, 2026 approval. The board also has explicit power to round up any fractional shares created by a consolidation to the nearest whole ordinary share, which avoids sending tiny fractions of stock to cash-out procedures.

That authorization came with strong shareholder support. Holders of 21,634,790 ordinary shares — about 89.76% of the 24,103,749 shares outstanding as of the Dec. 30, 2025 record date — attended the meeting in person or by proxy. The primary consolidation resolution passed with 21,235,035 votes in favor and 399,755 against. A second related proposal, to amend and restate the company’s constitutional documents once the first consolidation occurs, passed 21,633,035 to 1,755.

Why the charter tweak was included

Investors also approved language that lets the company amend its memorandum and articles to reflect any consolidation and authorizes officers and representatives to file the updated charter with the Cayman Islands Registrar after the first consolidation. That change is conditional on the board actually implementing a consolidation; in other words, the charter update only kicks in if and when the board completes a reverse split.

Where HUHUTECH stands now and why this matters

HUHUTECH is a Cayman Islands company with operations based in Wuxi, China, that reports its results under U.S. public reporting standards. For a reminder of the company’s recent financial snapshot, see a summary of the recent financial figures, which show the business has reported revenue and losses in recent reporting periods.

On the market side, HUHUTECH’s shares aren’t trading high above moving averages: recent trading shows the stock closed at 6.76 in the most recent session, with a 14-day RSI around 30.6 and the 20-day average near 8.00. Those technicals paint a picture of a stock that has been under pressure and flirting with oversold territory.

Why give the board such a wide range? At the lower end, a two-for-one split is a routine tool to tidy share math. At the upper extreme, an 8,000-for-one consolidation is an aggressive lever that can dramatically lift the share price by slashing the number of outstanding shares. Companies typically pursue reverse splits to regain compliance with listing minimums, improve per-share trading price to attract different investor types, or reduce the administrative burden of a large float. But a very large reverse split also concentrates ownership, can reduce liquidity, and may limit trading by small retail holders.

Another practical point: the board’s authority to round fractional shares to whole shares reduces paperwork and prevents shareholders from receiving tiny cash payments for fractions, but it also slightly increases the total share count for those rounded-up holders — a dilution effect, albeit minimal in most cases.

Investor takeaways and what to watch next

• Board action window: The board can act anytime within two years of the Jan. 29, 2026 shareholder approval — meaning a decision must come by Jan. 29, 2028. If you own the stock, that two-year clock is the timeframe in which the most material change could occur.
• Size matters: Look for clues in any board announcement about the chosen ratio. A small consolidation (2x–10x) mainly tidies the cap table; anything in the hundreds- or thousands-to-one range is a structural change that materially reduces outstanding shares and likely changes liquidity.
• Listing signals: If the company explicitly cites exchange price compliance as the reason for a split, that increases the chance regulators or specified exchanges are influencing the move. Watch for language about minimum bid price or listing standards in any board statement.
• Timing and disclosure: Because the board decides the timing, investors should monitor company statements and the the new disclosure for follow-ups. For the meeting record and vote details, see the meeting minutes and resolutions.

Bottom line: shareholders have handed the board a broad toolset. That doesn’t mean the company will use the maximum ratio — boards often pick much smaller consolidations — but investors should be prepared for a decision within the next two years and watch any announcement for the specific ratio and rationale.