20-F: Digital Currency X Pivots to Digital Assets, Divests EV Business

Sentiment:

Annual Report 30 April 2026 4:30 PM

📋All filings for Chijet Motor Company, INC

Digital Currency X Technology Inc. has strategically divested its loss-making electric vehicle business to focus entirely on digital asset management and its new DexTrader platform, reporting a net income from continuing operations driven by cryptocurrency gains.

Delay expectedThe DexTrader platform, launched in 2026, is in its early operational phase and has not yet generated any revenues, indicating a delay in achieving commercialization and revenue generation from the new core business.The accrual of staking rewards under the EdgeAI token staking agreement is scheduled to formally commence in April 2026, after the January 2026 staking, indicating a delay in the immediate realization of yield from staked assets.The former automotive subsidiary was unable to meet loan conditions or secure government subsidies to repay loans by July 2022, leading to reclassification as current liabilities for 2024 and 2025 and incurring penalties, indicating significant delays in financial obligations.

Capital raiseOn September 4, 2025, the company issued 11,300 Class A Ordinary Shares in a private placement, raising approximately US$8 million.On October 2, 2025, the company issued 13,333 Class A Ordinary Shares in a private placement, raising approximately US$15 million.On October 6, 2025, the company completed a private placement of units, issuing 111,111 Class A Ordinary Shares for BTC consideration with an aggregate fair value of approximately US$20 million.On November 25, 2025, the company issued 109,321 Class A Ordinary Shares and Pre-Funded Warrants to purchase 7,149,675 Class A Ordinary Shares in a private placement, raising approximately US$11 million.On November 26, 2025, the company raised US$300 million through a private placement of units, each consisting of one restricted ordinary share and three warrants, with 18,832,021 Class A shares issued.

Worse than expectedThe company reported a total net loss of US$30.07 million for 2025, despite a positive net income from continuing operations, due to the substantial losses from the discontinued automotive business.The new core business, DexTrader, has not yet generated any revenues, indicating that the strategic pivot has not yet translated into operational profitability for the new ventures.The auditor's going concern explanatory paragraph highlights significant risks and uncertainties regarding the company's ability to continue operations, which is a serious concern for investors.The sale of the entire legacy EV business for a mere US$1.00 underscores the severe underperformance and financial distress of the former operations, indicating a worse-than-expected outcome for that segment.

Summary

Digital Currency X Technology Inc. (formerly Chijet Motor Company, Inc.) has undergone a fundamental strategic transformation, divesting its legacy electric vehicle (EV) manufacturing business.
The EV business, operated through Chijet Inc. and its subsidiaries, was sold for a nominal consideration of US$1.00 on March 18, 2026, due to intense industry competition, supply chain challenges, and cumulative losses exceeding US$100 million.
The company's new core business focuses on digital asset management, including the DexTrader platform (an on-chain data and information service) and digital asset treasury management, which involves staking activities.
For the fiscal year ended December 31, 2025, the company reported a net income from continuing operations of US$70.66 million, a significant improvement from a US$2.43 million net loss in 2024.
This net income was primarily driven by a US$83.33 million gain on fair value changes of cryptocurrencies, partially offset by a US$4.27 million realized loss on sale/exchange of cryptocurrencies.
The DexTrader platform, launched in 2026, is in its early operational phase, focused on user acquisition and product optimization, and has not yet generated any revenues.
As of December 31, 2025, the company held approximately US$401.96 million in digital assets, consisting entirely of EdgeAI tokens.
In January 2026, the company staked 157,453,325 EdgeAI native tokens for a 12-month lock-up period, anticipating a floating annualized yield of 3.5% to 8% payable in EdgeAI tokens.
The company successfully regained compliance with Nasdaq's minimum market value of listed securities requirement (US$35 million) on January 23, 2026, after previously failing to meet it on December 12, 2025.
Material weaknesses in internal control over financial reporting were identified as of December 31, 2025, related to complex transaction controls and digital asset controls.
The company incurred a net loss of US$30.07 million for the year ended December 31, 2025, which includes a US$100.74 million net loss from discontinued automotive operations.
Multiple share consolidations (reverse stock splits) were implemented, including a 100-for-1 consolidation effective November 3, 2025, and a 12-for-1 consolidation effective January 22, 2026, significantly adjusting the par value and number of outstanding shares.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this filing with cautious optimism. While the strategic pivot away from a deeply unprofitable legacy business is a positive, the new digital asset ventures are unproven, revenue-less, and carry significant inherent risks, compounded by internal control weaknesses and ongoing going concern concerns.

Positives

Achieved a net income from continuing operations of US$70.66 million in 2025, a substantial improvement from a US$2.43 million net loss in 2024.
Realized a significant gain of US$83.33 million from fair value changes of cryptocurrencies in 2025.
Successfully regained compliance with Nasdaq's market value of listed securities requirement on January 23, 2026.
Strategic divestment of the legacy electric vehicle business eliminates a loss-making operation that incurred cumulative losses exceeding US$100 million.
The new business model focuses on high-growth technology and digital asset sectors, potentially offering higher margins and scalability.
Entered into a token staking agreement for 157,453,325 EdgeAI tokens, expecting a floating annualized yield of 3.5% to 8%.

Negatives

Incurred a total net loss of US$30.07 million in 2025, primarily due to a US$100.74 million net loss from discontinued automotive operations.
The DexTrader platform, the company's new core technology initiative, has not yet generated any revenues and is in its early operational phase.
Management team has limited historical experience in blockchain technology, digital asset custody, and cryptocurrency treasury management, posing a risk to the new business strategy.
The balance sheet is highly concentrated in digital assets (US$401.96 million as of December 31, 2025), subjecting the company to extreme price volatility and risk of substantial financial loss.
Participation in decentralized finance (DeFi) ecosystems exposes the company to novel financial and technological risks, including smart contract vulnerabilities and potential loss of assets.
Identified material weaknesses in internal control over financial reporting related to complex transaction controls and digital asset controls.
The company has a history of operating losses and expects to incur significant additional operating losses for the medium term during its transition.
The independent registered public accounting firm included an explanatory paragraph relating to the company's ability to continue as a going concern.
The legacy automotive business was sold for a nominal US$1.00, indicating its distressed value and significant historical losses.
Former automotive subsidiaries were in breach of significant loan agreements, totaling US$99.33 million and US$206.97 million respectively, with assets pledged and court auctions underway, though these liabilities were transferred in the divestiture, residual claims are possible.

Risks

Management team's limited experience in blockchain technology, digital asset custody, and cryptocurrency treasury management may hinder the new business strategy's success.
Potential post-closing liabilities, indemnification claims, or disputes arising from the sale of the legacy automotive business.
High concentration of digital assets (US$401.96 million) on the balance sheet subjects the company to extreme price volatility and substantial financial loss.
Exposure to novel financial and technological risks in decentralized finance (DeFi) ecosystems, including smart contract vulnerabilities, exploits, and flash loan attacks, which could lead to permanent loss of digital assets.
Risk of security breaches or cyberattacks on proprietary custody infrastructure, potentially leading to permanent and uninsured loss of digital asset holdings.
Unproven business model and technologies in a commercial environment, with future financial performance dependent on successful commercialization of DexTrader and positive returns from staking activities.
Expectation of continued operating and net losses for the medium term as new digital asset operations are capitalized.
Going concern uncertainty highlighted by the independent auditor due to recurring operating losses, negative cash flows, and limited operating history in the new business.
Significant risks associated with integrating newly acquired companies and their operations, particularly in the digital asset industry.
Need for additional capital to support business growth, which might not be available on commercially reasonable terms or at all, potentially leading to shareholder dilution.
Challenges in managing growth, including developing and improving management information systems, internal controls, and attracting/retaining skilled personnel.
Exposure to additional regulatory, compliance, technological, and geopolitical risks from international operations in global digital asset ecosystems.
Significant fluctuations in revenue, expenses, and operating results due to digital asset price volatility, DeFi yield variations, and regulatory changes.
Reliance on third-party service providers for secure technological infrastructure and reliable services, with risks of security breaches, network congestion, and limited legal recourse.
Inaccuracy of market opportunity estimates and forecasts of market growth in the nascent digital asset custody and institutional Web3 adoption markets.
Intense competition from unregulated or less regulated companies with greater financial resources and longer operating histories in the crypto industry.
Potential for security breaches and disruptions to IT infrastructure, interfering with operations and exposing the company to liability.
Risks associated with strategic alliances or acquisitions, including sharing proprietary information, non-performance by third parties, and diversion of management attention.
Dependence on strategic partners and technological suppliers, some of which are single-source providers of critical cryptographic infrastructure, leading to potential operational failures or bandwidth shortages.
Inability to accurately estimate supply and demand for digital asset custody solutions and treasury management services, leading to inefficiencies and delays.
Potential significant delays in the design, development, deployment, launch, and financing of digital asset custody solutions and treasury management infrastructure.
Limited operating history in the digital asset and Web3 infrastructure space makes evaluating the business and future prospects difficult.
Inability to adequately control substantial costs associated with operations, including technological infrastructure, sales, and development expenses.
Reliance on complex cryptographic infrastructure and smart contracts for digital asset treasury operations, susceptible to malfunctions, bugs, and cyberattacks, potentially leading to permanent loss of assets.
Risks associated with digital asset staking operations, including smart contract vulnerabilities on the EdgeAI mainnet, floating yield volatility, and potential regulatory restrictions.
Adverse effects from events outside of control, such as natural disasters, wars, health epidemics, macroeconomic shocks, or severe security incidents.
Evolving laws, regulations, standards, policies, and contractual obligations related to data privacy, security, and consumer protection, leading to potential fines and liability.
Changes in China's regulatory landscape regarding digital assets, including extraterritorial enforcement directives, could severely restrict operations and subject the company to penalties.
Complex U.S. state regulatory frameworks (e.g., NYSDFS BitLicense) could disrupt operations and restrict market access.
Potential legal proceedings, regulatory disputes, and governmental inquiries causing significant expenses and diversion of management attention.
Exposure to severe technology liability and fiduciary claims if proprietary custody infrastructure or smart contracts fail, potentially leading to catastrophic loss of digital assets.
Technological suppliers and infrastructure partners may face delays or limitations related to specialized regulatory licenses and environmental scrutiny for data centers.
Potential for the company to be classified as a PRC resident enterprise for tax purposes, resulting in unfavorable tax consequences.
Uncertainties under the EIT Law relating to withholding tax liabilities of legacy PRC subsidiaries and potential non-qualification for treaty benefits.
Enhanced scrutiny over acquisition transactions by PRC tax authorities impacting future acquisitions.
PRC regulations on loans to and direct investment in PRC subsidiaries by offshore holding companies may delay or prevent funding of wind-down operations or repatriation of funds.
Fluctuations in exchange rates could result in foreign currency exchange losses and reduce the value of dividends.
Difficulty for overseas regulators to conduct investigations or collect evidence within mainland China, limiting investor protection.
Potential for the Class A Ordinary Shares to be prohibited from trading in the United States under the HFCAA if the PCAOB is unable to inspect auditors in China.
The Chinese government may intervene in or influence the divestiture process and residual operations in China at any time.
Changes in Chinese policies, regulations, and rules may occur quickly, affecting the ability to complete the strategic pivot and operate profitably.
Litigation and negative publicity surrounding China-based companies listed in the U.S. may result in increased regulatory scrutiny and negatively impact share price.
Future sales of Class A Ordinary Shares by principal shareholders may adversely affect the market price.
Issuance of additional Class A Ordinary Shares or other equity/convertible debt securities without shareholder approval could dilute existing ownership interests.
Anti-takeover provisions in the memorandum and articles of association and Cayman Islands law could impair takeover attempts and entrench management.
Concentration of ownership among executive officers, directors, and affiliates (56.15%) may prevent new investors from influencing significant corporate decisions.
No expectation of declaring dividends in the foreseeable future, requiring investors to rely on share price appreciation for gains.

Future Outlook

The company's future outlook is centered on the successful development, user adoption, and monetization of its DexTrader platform, which is currently in its early operational phase and has not yet generated revenue. It also depends on generating consistent returns from digital asset staking and treasury management activities. The company expects to incur significant operating and net losses for the medium term as it capitalizes its new digital asset operations and aims to achieve sustainable profitability through these technology-driven business lines. The timing and extent of benefits from these initiatives are subject to market conditions and execution risks.

Management Comments

"Divesting Chijet Inc. would allow the Company to eliminate a loss-making operation, improve its financial position, and focus resources on its new core business in technology and digital asset management."
"The Company believes that the Disposal will enhance its ability to achieve sustainable profitability, support the growth of new technology-driven business lines, and facilitate ongoing compliance with Nasdaq listing requirements."
"Our management anticipates that we will have sufficient liquidity to meet our obligations as they come due for at least twelve months from the issuance date [of financial statements]."
"The forecasts indicate that we can sustain operations primarily through our existing cash resources and ongoing cost management, without relying on uncertain inflows such as projected revenues, financing activities, or returns from our digital asset-related operations."
"Management has launched various strategic initiatives to support our long-term operations and financial position, including the development of a digital asset trading platform, the expansion of our digital asset-related services, and access to financing arrangements that could provide additional liquidity if necessary."

Industry Context

StockSavvy.ai notes that Digital Currency X's pivot from traditional electric vehicle manufacturing to digital asset management and decentralized finance (DeFi) data services reflects a broader trend of companies seeking to capitalize on the growth and innovation within the blockchain and cryptocurrency sectors. This shift moves the company from a capital-intensive, highly competitive automotive industry, particularly in China, to a nascent but rapidly evolving technology space. While the EV divestiture addresses historical losses, the new digital asset business introduces exposure to extreme market volatility, complex regulatory environments (e.g., China's crypto ban, US state-level licenses), and novel technological risks like smart contract vulnerabilities, which are characteristic of the crypto industry. The focus on an 'asset-light model' for its new Edge AI-powered visual inspection platform also aligns with modern tech trends emphasizing software and data over heavy physical infrastructure.

Comparison to Industry Standards

The divestment of a legacy, loss-making business for a nominal US$1.00 is a drastic measure, indicating severe underperformance compared to established automotive manufacturers like Tesla, BYD, or even emerging EV players like Nio or Xpeng, which have seen significant capital investment and market growth, albeit with their own challenges.
The new DexTrader platform, positioned as an on-chain data and information service, competes with established crypto data providers such as CoinMarketCap, CoinGecko, or specialized analytics platforms like Nansen or Dune Analytics. Its early operational phase and lack of revenue generation suggest it is far from achieving the market penetration or data sophistication of these industry leaders.
The company's digital asset treasury of US$401.96 million, primarily in EdgeAI tokens, is substantial for a transitioning entity but exposes it to the same volatility faced by major crypto holders like MicroStrategy or even institutional funds, without the diversification or hedging strategies typically employed by more mature players.
The expected floating annualized yield of 3.5% to 8% from staking EdgeAI tokens is within the typical range for DeFi staking protocols, but this yield is highly dependent on network activity and tokenomics, and carries inherent smart contract and market risks, unlike traditional fixed-income investments offered by established financial institutions.
The identified material weaknesses in internal controls, particularly concerning digital asset custody and complex transactions, fall below the robust standards expected of publicly traded companies, especially those operating in highly regulated and high-risk sectors like digital assets, where security and compliance are paramount for institutional trust.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Director	Ying Liu	NA	2025-01-13	Resignation
Director	Huimin Li	NA	2025-01-13	Resignation
Independent Director	NA	Wanli Wang	2025-01-27	Appointment
Independent Director	NA	Na Wang	2025-01-27	Appointment
Independent Director	NA	Jing Zhang	2025-01-27	Appointment
Director	Na Wang	NA	2025-09-10	Resignation
Director	Jing Zhang	NA	2025-09-10	Resignation
Independent Director	NA	Jonathan Zhang	2025-09-10	Appointment
Independent Director	NA	Huijie Gao	2025-09-10	Appointment
Chief Executive Officer and Director	NA	Melissa Chen	2025-09-10	Appointment (Director since Sep 2025, CEO role implied by context of new business)

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Share Capital Structure	Shareholders approved an amended and restated memorandum and articles of association, changing the authorized share capital and introducing a dual-class share structure with Class A (1 vote) and Class B (20 votes) ordinary shares.	2025-01-10	Significantly alters voting power, concentrating control with Class B shareholders and potentially limiting influence of Class A holders on corporate decisions.
Share Capital Increase	Shareholders approved to increase the authorized share capital from US$30 million to US$3 billion, creating additional Class A and Class B ordinary shares.	2025-12-22	Provides significant flexibility for future capital raises and equity issuances, but also enables potential dilution of existing shareholders.
Share Consolidation Authority	Shareholders granted explicit discretionary authority to the board of directors to implement one or more share consolidations over a period of up to two years, with a cumulative ratio not exceeding 3000:1.	2025-12-22	Grants the board significant power to manage share count and par value, which can impact share price and market perception, potentially without immediate shareholder vote on specific ratios.
Clawback Policy Adoption	Board of directors adopted an executive compensation recovery policy (Clawback Policy) providing for recovery of incentive-based compensation in the event of financial statement restatements due to error.	2023-11-29	Enhances corporate governance and accountability for executive officers, aligning with Nasdaq listing standards and potentially improving investor confidence.
Internal Control Deficiencies	Management concluded that internal control over financial reporting was not effective as of December 31, 2025, citing lack of standardized processes for complex transactions and incomplete policies for digital asset custody and security.	2025-12-31	Indicates significant weaknesses in financial reporting and asset security, increasing risks of misstatements, non-compliance, and potential loss of digital assets. Remediation efforts are underway but not assured.
Foreign Private Issuer Exemptions	The company, as a foreign private issuer, follows certain home country (Cayman Islands) corporate governance practices in lieu of some Nasdaq requirements, including those related to shareholder approval for certain issuances, executive sessions, and proxy statements.	Ongoing	May afford less protection to shareholders compared to U.S. domestic issuers, particularly regarding dilution and board oversight.

Legal Proceedings

FAW Jilin is under enforcement for a contractual dispute with Jilin Honghao Renewable Resources Materials Recycling Co., Ltd., and Liu Changhong for US$307,993.96.
FAW Jilin is under enforcement for a contractual dispute with Jiangsu Ante Zhixing New Energy Automobile Sales Co., Ltd. for US$820,964.52.
FAW Jilin is under enforcement for a contractual dispute with FAW Mould Manufacturing Co., LTD for US$40,615,538.87.
FAW Jilin is under enforcement for a contractual dispute with Thyssenkrupp Presta Fawer(Changchun) Co., Ltd. for US$756,564.90.
FAW Jilin is under enforcement for a contractual dispute with FAW Logistics Co. LTD for US$2,850,622.40.
FAW Jilin is under enforcement for a contractual dispute with Changchun FAW International Logistics Co. LTD for US$1,025,723.76.
FAW Jilin is under enforcement for a contractual dispute with FAW Logistics (Changchun Lushun) Storage and Transportation Co., LTD for US$2,872,936.45.
FAW Jilin is under enforcement for a contractual dispute with Changchun Jiya Warehousing Co., Ltd. for US$2,243,428.50.
FAW Jilin is under enforcement for a contractual dispute with Changchun Jinhe Transportation Equipment Co., Ltd. for US$748,337.20.
FAW Jilin is in the trial phase for a contractual dispute with Ningbo Siweier Industrial Co., Ltd. for US$502,191.04.
Shandong Baoya is in the trial phase for a contractual dispute with Jiangsu Zhongqi Boyue Vehicle Technology Co. Ltd. for US$288,856.16.
Shandong Baoya is in the trial phase for a contractual dispute with China Automotive Data (Tianjin) Co., Ltd. for US$636,195.82.
Shandong Baoya is in the trial phase for a contractual dispute with Zhejiang Mould Factory for US$968,746.19.
Shandong Baoya is in the trial phase for a contractual dispute with Xingyu Auto Parts INC. for US$337,682.86.
Shandong Baoya is in the trial phase for a contractual dispute with Changzhou Kaide Auto Parts Co., Ltd. for US$486,193.53.
Shandong Baoya is in the trial phase for a contractual dispute with Jiangxi Dekai Auto Lamp Co., Ltd. for US$1,113,664.76.
Shandong Baoya is in the trial phase for a contractual dispute with Zhengzhou Dexin Automobile Parts Co. Ltd. for US$217,321.36.
Shandong Baoya is in the trial phase for a contractual dispute with Jiangsu Wosu Automobile Parts Co. Ltd. for US$487,909.51.
Shandong Baoya is in the trial phase for a contractual dispute with Qinghe County Xinlian Rubber and Plastic Products Factory for US$208,584.46.
Shandong Baoya is in the trial phase for a contractual dispute with Qingdao Branch of Changzhou Fusen Automobile Parts Co. Ltd. for US$452,445.98.
Dezhou Yarui New Energy Automobile Co., Ltd. is under enforcement for a contractual dispute with Jingtai Investment Co., Ltd., Dezhou Economic and Technological Development Zone for US$5,386,015.26.
Shandong Baoya is under enforcement for a contractual dispute with Yantai Trans for US$105,861,492.04.
Shandong Baoya is in the trial phase for a contractual dispute with Jiangsu Tonghe Intelligent Equipment Co., Ltd. for US$395,111.61.
Shandong Baoya is in the trial phase for a contractual dispute with Yantai Economic and Technological Development Zone Investment Promotion Bureau for US$31,656,912.53.
Xiangyang Yazhi New Energy Automobile Co., Ltd. is in the trial phase for a security interest dispute with Xiangyang High-Tech State-Owned Capital Investment and Operation Group Co., Ltd., Xiangyang High-Tech Technology Co., Ltd. for US$135,236,978.91.
Xiangyang Yazhi New Energy Automobile Co., Ltd. and Shandong Baoya are in the trial phase for a contractual dispute with Xiangyang High-Tech State-Owned Capital Investment and Operation Group Co., Ltd., Xiangyang High-Tech Technology Co., Ltd. for US$135,970,785.09.
Shandong Baoya is in the trial phase for a contractual dispute with Hunan Taide Automobile Air Conditioning Co., Ltd., Shanxi Taide Automobile Air Conditioning Co., Ltd. for US$443,387.48.
Shandong Baoya is in the trial phase for a contractual dispute with Shanghai Youhang Automotive Electronics Co., Ltd., Shenzhen Youjia Innovation Technology Co., Ltd. for US$283,136.23.
Digital Currency X Technology Inc. is in discovery and counterclaim service for contractual disputes with Greentree Financial Group, Inc. for US$1,556,235.95 and 441,549 shares in the United States District Court Southern District of New York.
Digital Currency X Technology Inc. is in discovery for contractual disputes with Safety Shot Inc. f/k/a Jupiter Wellness Inc. for US$559,721.74 and 180,382 shares in the United States District Court Southern District of New York.
Digital Currency X Technology Inc. is in discovery for contractual disputes with L&H, INC. for US$1,697,289.22 and 507,140 shares in the United States District Court Southern District of New York.
Digital Currency X Technology Inc. is in discovery for contractual disputes with Kin Chung Wong for US$2,055,327.97 and 557,849 shares in the Supreme Court of the State of New York.

Related Party Transactions

Independent directors received cash compensation totaling US$180,830 in 2025 and US$156,250 in 2024.
In March 2025, the company issued 1,600,000 Class B Ordinary Shares to two existing shareholders, Chijet Holdings Limited and Euroamer Kaiwan Technology Company Limited, in exchange for 1,624,910 Class A Ordinary Shares.
The loan agreement between Shandong Baoya (a former subsidiary) and Yantai Guofeng Investment Holdings Group Co., LTD (an affiliate of the Company) for RMB1.5 billion (approximately US$205.50 million) with a 6.5% annual interest rate, with US$156.00 million outstanding as of April 30, 2026.

Stakeholder Impact

Shareholders: Experience significant dilution from multiple share consolidations and private placements. The strategic pivot aims for long-term value but introduces high-risk, unproven ventures. Existing shareholders face uncertainty regarding the value of their investment due to the volatile nature of digital assets and the company's history of losses. The dual-class share structure concentrates voting power, limiting influence for Class A holders.
Employees: The strategic shift from EV manufacturing to digital assets likely involves significant workforce restructuring, including potential layoffs in the legacy business and a need to attract highly specialized Web3 talent for the new operations. This could impact employee morale and job security.
Customers (former EV business): The divestiture means former customers of Chijet Inc. and its subsidiaries will no longer be served by Digital Currency X, potentially impacting product support and warranties, though these obligations are transferred to the acquirer.
Customers (new digital asset business): DexTrader is in its early phase, focusing on user acquisition. Future customers will be cryptocurrency traders seeking data and analytical tools, and institutional clients for digital asset custody and treasury management. Their confidence will depend on platform security, reliability, and compliance.
Suppliers (former EV business): The disposal of the EV business means former suppliers will no longer have Digital Currency X as a customer, potentially impacting their business relationships and outstanding receivables.
Creditors: The company's legacy PRC subsidiaries had significant outstanding loan defaults (totaling over US$460 million) which were transferred in the divestiture. While the acquirer has undertaken to indemnify these, there's a residual risk of claims against Digital Currency X. The company's ability to meet future obligations depends on the success of its new, unproven digital asset ventures.

Next Steps

Focus on user acquisition and product optimization for the DexTrader platform to generate revenue.
Capitalize new digital asset operations and work towards achieving sustainable profitability in the medium term.
Remediate identified material weaknesses in internal control over financial reporting, particularly for complex transactions and digital asset controls.
Monitor and manage the floating annualized yield from the EdgeAI token staking agreement, with rewards commencing in April 2026.
Continue negotiations to return the 80% equity interest in Too Express to the original sellers following the forfeiture of shares.
Address and resolve any residual claims or liabilities related to the divested automotive business and its defaulted loan agreements.
Implement and maintain strict compliance with evolving global regulatory requirements for digital assets and decentralized finance.

Key Dates

Date	Description
2023-06-01	Company consummated business combination with Jupiter Wellness Acquisition Corp. (JWAC), becoming a public company.
2023-06-01	Company issued 167 ordinary shares to each independent director under the 2023 Contract.
2023-06-20	Xiangyang Yazhi entered into mortgage guarantee contracts for building, land, and equipment to secure US$99.33 million (RMB 694.60 million) in loans.
2023-12-31	Fiscal year end, reported net loss of US$98.50 million.
2023-12-29	Board approved termination of UHY, LLP as independent registered public accounting firm.
2024-01-28	Engaged Assentsure PAC as independent registered public accounting firm.
2024-07-08	Implemented a 1-for-30 share consolidation (reverse stock split).
2024-12-31	Fiscal year end, reported net loss of US$69.01 million.
2025-01-10	Shareholders approved and adopted an amended and restated memorandum and articles of association, changing authorized share capital and introducing dual-class shares.
2025-01-13	Ying Liu and Huimin Li resigned as independent directors.
2025-01-27	Appointed Wanli Wang, Na Wang, and Jing Zhang as independent directors.
2025-02-10	Yantai Trans filed an application for property preservation, freezing Shandong Baoya's land use rights.
2025-02-21	Entered into a stock purchase agreement to acquire 80% equity interest in Too Express Group Inc.
2025-03-15	Issued 19,380 Class A Ordinary Shares to purchase equity interest in Too Express.
2025-03-16	Entered into a Share Exchange Agreement with Chijet Holdings Limited and Euroamer Kaiwan Technology Company Limited, issuing Class B ordinary shares in exchange for Class A ordinary shares.
2025-03-24	Issued 1,600,000 Class B ordinary shares to two existing shareholders.
2025-04-28	Closed the acquisition of 80% equity interest in Too Express Group Inc.
2025-05-02	Company's securities began trading on the Nasdaq Capital Market after approval of transfer from Nasdaq Global Market.
2025-08-01	23,255,814 Class A Ordinary Shares issued for Too Express acquisition were forfeited, retired, and cancelled due to negative shareholder equity.
2025-09-02	Entered into a placement agency agreement and securities purchase agreement for the offer and sale of 13,560,000 Class A ordinary shares and warrants.
2025-09-04	Issued 11,300 Class A Ordinary Shares in a private placement, raising approximately $8 million.
2025-09-05	Issued 640,850 Class A ordinary shares to holders of contingent value rights (CVRs) due to unachieved earnout milestones for 2024.
2025-09-10	Na Wang and Jing Zhang resigned as independent directors; Jonathan Zhang and Huijie Gao appointed.
2025-09-24	Shareholders approved an up to 100-for-1 share consolidation and name change to Digital Currency X Technology Inc.
2025-10-02	Issued 13,333 Class A Ordinary Shares in a private placement, raising approximately $15 million.
2025-10-06	All pre-funded warrants from October 2, 2025 private placement fully exercised, resulting in 70,000 Class A Ordinary Shares issuance.
2025-10-06	Completed a private placement of units, issuing 111,111 Class A Ordinary Shares for BTC consideration valued at approximately $20 million.
2025-10-15	Notified by Nasdaq of failure to maintain minimum bid price of $1.00.
2025-10-26	Entered into a Securities Purchase Agreement for US$300,000,000 of units, each consisting of one ordinary share and three warrants.
2025-11-03	100-for-1 share consolidation became effective, adjusting par value from US$0.003 to US$0.30.
2025-11-18	Regained compliance with Nasdaq's minimum bid price requirement.
2025-11-25	Entered into a Supplemental Agreement to Securities Purchase Agreement, increasing purchase price per unit to US$1.27 and reducing units to 23,622,047.
2025-11-25	Issued 1,311,855 Class A ordinary shares and Pre-Funded Warrants to purchase 7,149,675 Class A ordinary shares in a private placement.
2025-11-26	Raised $300 million through a private placement of units, issuing 18,832,021 Class A shares.
2025-12-10	Began trading on Nasdaq Capital Market under new name Digital Currency X Technology Inc. and new ticker symbol DCX.
2025-12-12	Received notification from Nasdaq of non-compliance with minimum Market Value of Listed Securities (MVLS) of US$35 million.
2025-12-22	Shareholders approved to increase authorized share capital to US$3,000,000,000.00 and granted discretionary authority for further share consolidations.
2025-12-24	Board approved a 12-for-1 share consolidation, effective January 22, 2026.
2025-12-31	Fiscal year end, reported net income from continuing operations of US$70.66 million and total digital assets of US$401.96 million.
2026-01-06	Entered into a token staking agreement with EdgeAI Foundation for 157,453,325 EdgeAI native tokens.
2026-01-22	12-for-1 share consolidation became effective, adjusting par value from US$0.30 to US$3.60.
2026-01-23	Received notification from Nasdaq of regaining compliance with the market value of listed securities requirement.
2026-03-18	Entered into a share purchase agreement to sell its entire electric vehicle manufacturing business (Chijet Inc.) for US$1.00.
2026-03-20	Completed the disposal of Chijet Inc. and its subsidiaries.
2026-04-21	Fifth Amended and Restated Memorandum and Articles of Association filed.
2026-04-30	Date of filing of this annual report on Form 20-F.

Recommendation

hold

The company is undergoing a radical transformation, divesting a deeply unprofitable legacy business and pivoting to the high-growth but highly speculative digital asset sector. While the move away from the EV business is a necessary step to stop losses, the new ventures (DexTrader platform, digital asset treasury management) are unproven and currently generate no revenue. The significant cryptocurrency holdings introduce extreme volatility, and the identified material weaknesses in internal controls, coupled with the auditor's going concern warning, present substantial risks. The recent capital raises provide some liquidity, but the long-term viability and profitability of the new business model are highly uncertain. A 'hold' recommendation is appropriate for seasoned investors who understand the extreme risks and potential long-term upside of a successful pivot into the digital asset space, but it is not suitable for risk-averse investors. Further clarity on the new business's revenue generation, successful remediation of internal control issues, and sustained Nasdaq compliance are needed before a more definitive stance can be taken.

Keywords

Digital Asset Management, Cryptocurrency, DexTrader, Blockchain, DeFi, Staking, EV Divestment, SEC Filing, Nasdaq Compliance, Financial Technology, On-chain Data, Cayman Islands, China Regulations, Corporate Transformation, Risk Management

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