20-F: AIOS Tech Completes Strategic Pivot to AI and IT Services

AIOS Tech Inc. has finalized its strategic transformation by divesting its legacy Chinese supply chain financing business to focus on AI-driven IT services in Hong Kong.

Summary

• Completed the divestiture of legacy PRC-based SME financing and supply chain businesses on December 23, 2025.
• Acquired YD Network Technology Company Limited on December 1, 2025, to establish a new AI and IT services segment.
• Reported a net loss of $220.9 million for fiscal year 2025, primarily driven by a $225.3 million loss on the disposal of legacy subsidiaries.
• Revenue from continuing operations for 2025 was $5.1 million, with 41% derived from the new IT services segment.
• Rebranded from Nisun International Enterprise Development Group Co., Ltd. to AIOS Tech Inc. in February 2026.
• Maintains a cash balance of $1.4 million as of December 31, 2025.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk transition. While the divestiture removes legacy regulatory baggage, the company is currently loss-making, has a depleted cash position, and faces intense competition in its new sector.

Positives

• Successful completion of a major strategic pivot away from high-risk legacy businesses in mainland China.
• Established a new operational foundation in Hong Kong, positioning the company as a digital hub for AI and IT services.
• The new IT services segment generated nearly 50% of total revenue in its first month of operation.
• Eliminated the complex and regulatory-heavy variable interest entity (VIE) structure.

Negatives

• Incurred a significant net loss of $220.9 million for the 2025 fiscal year.
• The disposal of legacy assets resulted in a $225.3 million loss.
• Limited operating history in the new AI and IT services sectors.
• Cash and cash equivalents declined from $6.1 million in 2024 to $1.4 million in 2025.

Risks

• High dependency on a small number of customers, with four customers accounting for 14%, 12%, 12%, and 11% of 2025 revenue.
• Intense competition in the AI and IT services market from established local and international providers.
• Regulatory uncertainty regarding cross-border data transfers and cybersecurity in Hong Kong and potential long-arm jurisdiction from mainland China.
• Potential for future operating losses during the transition phase.
• Material weakness in internal control over financial reporting due to a lack of sufficient U.S. GAAP and SEC reporting expertise.

Future Outlook

The company intends to focus on expanding its AI and IT services in Hong Kong and Southeast Asia, leveraging benchmark clients to develop replicable industry cases. It plans to adopt a hybrid model of standardized SaaS subscriptions and customized project-based fees while maintaining a compliance-first risk management strategy.

Management Comments

• Management believes the strategic transformation positions the company to capitalize on high-growth technology sectors.
• The company is committed to building a comprehensive digital transformation service system through AI and technology empowerment.

Industry Context

StockSavvy.ai notes that AIOS Tech is attempting a high-stakes turnaround by exiting the volatile Chinese fintech/supply chain sector to enter the competitive AI/IT services market. This transition mirrors a broader trend of Chinese-origin firms seeking to rebrand and relocate operations to Hong Kong to mitigate geopolitical and regulatory risks associated with mainland China.

Comparison to Industry Standards

• The company's pivot to AI services aligns with regional trends in Hong Kong's digital transformation sector.
• The reliance on a small number of customers is higher than typical industry benchmarks for established IT service firms.
• The company's current lack of registered intellectual property is a significant disadvantage compared to established AI competitors.

Management Changes

Corporate Governance

Legal Proceedings

• None reported as of the date of the filing.

Related Party Transactions

• Due to related party balance of $12,083 owing to independent director Zhao Yun as of December 31, 2025.

Stakeholder Impact

• Shareholders face significant dilution and volatility risks due to the recent private placement and the company's loss-making status.
• Employees are subject to the risks of a company in a major strategic transition.

Next Steps

• Continue integration of YD Network operations.
• Execute expansion strategy into Southeast Asian markets (Indonesia and Philippines).
• Implement remediation measures for identified material weaknesses in internal controls.

Key Dates

Recommendation

The company is in a high-risk turnaround phase. While the exit from legacy Chinese operations is a positive step for long-term regulatory compliance, the current financial losses and the need for significant capital to fund the new AI strategy make the stock highly speculative.

Keywords

AIOS Tech, Artificial Intelligence, IT Services, Digital Transformation, Hong Kong, SME Financing, SEC Filing, 20-F