Big Tree Cloud Holdings Limited Announces Update Regarding Previously Announced Reverse Share Split

Big Tree Cloud Holdings Limited (NASDAQ: DSY) announced an update on February 11, 2026, regarding its previously disclosed reverse share split. Originally scheduled for February 12, the effective date for this corporate action, which includes changes in par value, reclassification, and a new CUSIP number, will be postponed. The company stated that it would provide a new effective date in a future press release.

Founded in 2020, Big Tree Cloud is an international capital platform focusing on industrial integration and strategic investments in China's personal care industry. The company is currently expanding into the artificial intelligence (AI) sector, aiming to meet rising market demand for AI skills and to enhance its development momentum.

The announcement included forward-looking statements indicating the company's expectations and projections on future events that could impact its financial condition and operational results. These statements carry known and unknown risks, and the company cautioned investors that actual outcomes may differ from anticipated results. Big Tree Cloud urges potential investors to review risk factors outlined in their final prospectus and filings with the U.S. Securities and Exchange Commission before making investment decisions.

The company plans to continue engaging with investors and the public regarding its future direction and operational strategies. Investor relations contact Ting Yan is available for inquiries, emphasizing Big Tree Cloud's commitment to transparent communication about its developments and corporate strategies. As Big Tree Cloud navigates these changes, it will seek to empower industries through effective capital operations and innovation in the evolving technological landscape.

**Market Analysis and Advice on Big Tree Cloud Holdings Limited's Recent Announcement**

Big Tree Cloud Holdings Limited’s recent update regarding the postponement of its previously announced reverse share split introduces several considerations for potential and current investors. The initial plan for the reverse share split, set for February 12, 2026, has been delayed, which can often signal instability or operational challenges within a company. Such delays may lead to speculative trading, triggering fluctuations in stock prices as investors react to uncertainties.

The decision to enact a reverse split often reflects a company's intention to bolster its stock price, enhance listing requirements, or improve its image in the market. For Big Tree Cloud, which is attempting to position itself as a key player in both the personal care and AI sectors, maintaining an attractive share price is crucial for attracting further investments and strategic partnerships. However, the indefinite postponement raises questions about management's execution and overall strategy.

Investors should consider the company’s expansion into AI, recognizing the heightened demand for AI-related technologies and skills. This diversification could offer significant growth opportunities and serve as a catalyst for long-term performance. Nonetheless, investors must weigh this potential against the execution risks and market conditions.

Given the current lack of clarity surrounding the reverse share split timeline, it is advisable for investors to adopt a cautious approach. Those already holding shares may want to monitor market reactions closely and consider setting stop-loss orders to mitigate potential losses. New investors should wait for a clearer indication of the company's strategic direction and operational health before entering positions.

In summary, while there may be promising avenues for growth within Big Tree Cloud's AI initiatives, the current uncertainties necessitate a careful assessment of risk before making investment decisions.