Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) received a $10 million share subscription from its controlling shareholder on January 30, 2026. The proceeds were paid in full and will be used to strengthen the company’s capital base and fund its expansion and product‑innovation plans.
The transaction comes at a time when Autozi has been operating at a net loss—$5.3 million for the six months ended March 31, 2025, and $11.1 million for fiscal 2024—and negative working capital. The capital raise is therefore a critical step in improving the company’s balance sheet, which currently shows negative total shareholder equity. By injecting fresh equity, Autozi can reduce leverage, shore up liquidity, and support its three‑year plan to reach profitability.
Autozi’s strategic focus has shifted toward higher‑margin segments such as auto parts and accessories sales, which drove a 65.9% revenue increase to $79.9 million in the first half of fiscal 2025. The share subscription will help accelerate this shift by providing the resources needed for research and development, market expansion, and scaling of the parts and accessories business. The company’s gross margin improved to 1.7% in the same period, up from 0.2% a year earlier, reflecting the mix shift toward more profitable products.
Founder, Chairman and CEO Dr. Houqi Zhang said the investment “represents the most direct and meaningful support for the Company’s long‑term development.” He added that the company will continue to execute its established strategy, accelerate business expansion and product innovation, and deliver stronger and more stable operating performance to reward shareholders’ trust and support.
The market reacted positively to the news, with analysts noting the premium at which the shares will be issued and the company’s recent resolution of Nasdaq compliance issues. The premium signals strong confidence from the controlling shareholder, while the compliance fix removes a significant regulatory risk, both of which are viewed favorably by investors.
The share subscription positions Autozi to pursue its profitability targets, reduce financial risk, and invest in high‑margin growth areas. If the company can sustain its revenue momentum in the parts and accessories segment and continue to improve margins, the capital infusion could accelerate its path to profitability and strengthen its competitive position in China’s automotive e‑commerce and supply‑chain market.
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