Smart Powerr Corp. Announces Effective Date of 1-for-10 Reverse Stock Split

XI’AN, China – June 8, 2026 – Smart Powerr Corp. (Nasdaq: CREG), a China-based energy solutions company, has officially announced the effective date of its previously approved 1-for-10 reverse stock split. The corporate action is intended to help the company meet the minimum bid price requirement necessary to maintain its listing on the Nasdaq Capital Market.

Reverse Stock Split Scheduled to Take Effect on June 16, 2026

According to the company's announcement, every ten shares of Smart Powerr Corp.’s outstanding common stock will be consolidated into one share. The reverse stock split will become effective after the close of trading on June 15, 2026, with the company’s common stock beginning to trade on a post-split basis on June 16, 2026 under the existing Nasdaq ticker symbol “CREG”.

The reverse stock split will not alter the par value of the company’s common stock, which remains at $0.001 per share. In addition, the company has obtained a new CUSIP number, 168913507, which will identify the post-split shares.

Purpose of the Reverse Stock Split

Smart Powerr stated that the primary objective of the reverse stock split is to regain compliance with Nasdaq’s continued listing standards, specifically the exchange’s minimum bid price requirement. Companies listed on Nasdaq are required to maintain a minimum share price threshold, and failure to do so may result in potential delisting proceedings.

Management emphasized that while the reverse stock split is designed to improve the market price of the company’s shares, there is no guarantee that the company will successfully regain or maintain compliance with Nasdaq’s listing requirements in the future.

Impact on Outstanding Shares

Following the implementation of the reverse stock split, the total number of Smart Powerr’s issued and outstanding shares is expected to decline significantly.

Before the transaction, the company had approximately 27.5 million shares outstanding. After the 1-for-10 reverse stock split, that number is expected to decrease to approximately 2.75 million shares.

This reduction in share count is purely mathematical and does not, by itself, change the overall value of the company or the proportional ownership interests of shareholders.

Treatment of Fractional Shares

To simplify the process and avoid the issuance of fractional shares, Smart Powerr has elected to round up any fractional shares resulting from the reverse stock split to the next whole share. This means shareholders who would otherwise receive a fraction of a share will instead receive a full share.

This approach is intended to minimize administrative complexity while ensuring that shareholders are treated fairly during the share consolidation process.

Effects on Shareholders and Equity Ownership

The company noted that the reverse stock split will affect all shareholders uniformly. Except for adjustments related to fractional shares, shareholders’ proportional ownership percentages in the company will remain unchanged.

For example, an investor who owned 1% of the company before the reverse stock split will continue to own approximately 1% afterward, assuming no additional share issuances or transactions occur. The action is therefore considered a structural adjustment rather than a dilution of shareholder ownership.

Adjustments to Stock Options and Warrants

In addition to affecting common stock, the reverse stock split will also impact the company’s outstanding stock options and warrants.

The number of shares that may be issued upon exercise of these securities will be proportionally reduced. At the same time, the applicable exercise prices will be adjusted upward to reflect the reverse stock split ratio. These adjustments are designed to preserve the economic value of the securities and maintain consistency across the company’s capital structure.

About Smart Powerr Corp.

Smart Powerr Corp. is headquartered in Xi’an, Shaanxi Province, China. The company initially established itself as a pioneer in waste-energy recycling and energy-efficiency solutions serving energy-intensive industries across China.

The company utilizes a Build-Operate-Transfer (BOT) business model, under which it develops and operates energy-saving and energy-recovery facilities before eventually transferring ownership to customers or partners.

Energy Recovery and Electricity Generation

One of Smart Powerr’s key business areas involves helping industrial customers capture previously wasted forms of energy, including pressure, heat, and industrial gases generated during manufacturing operations. These recovered resources can then be converted into electricity, helping customers reduce energy costs and improve overall efficiency.

Such projects are particularly valuable for industries with high energy consumption, where efficiency improvements can translate into substantial economic and environmental benefits.

Strategic Transformation Toward Energy Storage Solutions

Beyond its traditional energy-recovery operations, Smart Powerr is currently undergoing a strategic transformation aimed at expanding its presence in the rapidly growing energy storage sector.

The company has stated that it is actively positioning itself as an integrated energy storage solutions provider, seeking opportunities in both established and emerging markets.

Target Growth Markets

Management has identified several areas where advanced energy storage technologies may play an important role in future growth, including:

• Industrial and commercial facilities
• Large-scale photovoltaic (solar) power stations
• Wind energy projects
• Remote islands lacking reliable electricity infrastructure
• Smart cities utilizing multi-energy systems

By expanding into these segments, Smart Powerr aims to diversify its business model and capitalize on increasing global demand for energy storage and renewable energy infrastructure.

Industry Context and Market Implications

Reverse stock splits are relatively common among publicly traded companies seeking to maintain compliance with stock exchange listing standards. While such transactions reduce the number of shares outstanding, they generally increase the per-share market price proportionally.

Investors often view reverse stock splits as part of broader corporate strategies aimed at improving market perception, maintaining exchange listings, and attracting institutional investors who may have minimum price requirements for investments.

For Smart Powerr, the move comes at a time when the company is pursuing new opportunities in energy storage technologies and renewable energy-related infrastructure, sectors that continue to experience strong long-term growth potential globally.

Forward-Looking Statements and Risk Factors

The company cautioned investors that certain statements contained in the announcement constitute forward-looking statements under U.S. securities laws. These statements involve expectations regarding future business development, strategic initiatives, market opportunities, and financial performance.

Such forward-looking statements are subject to numerous risks and uncertainties, including changes in market conditions, technological developments, customer demand, competitive pressures, regulatory developments, and the company’s ability to execute its business strategy successfully.

As a result, actual outcomes may differ materially from those projected in the company’s forecasts or expectations. Investors are encouraged to review the company’s filings with the U.S. Securities and Exchange Commission (SEC) for additional information regarding these risks.

Looking Ahead

The implementation of the 1-for-10 reverse stock split represents an important corporate milestone for Smart Powerr Corp. as it works toward restoring compliance with Nasdaq’s listing standards and strengthening its position in public capital markets.

At the same time, the company continues to advance its long-term transformation from a traditional energy-efficiency provider into a broader energy storage and integrated energy solutions company. Investors will likely monitor the effectiveness of the reverse stock split, Nasdaq compliance efforts, and the company’s progress in expanding its presence within the growing clean energy and energy storage sectors in the months ahead.

#SmartPowerr #CREG #Nasdaq #ReverseStockSplit #SlimScan #GrowthStocks #CANSLIM