The halo of being the "first personal care stock" on Nasdaq has ultimately failed to illuminate a sustainable path for Big Tree Cloud.
By December 31, the share price of Big Tree Cloud (DSY.US) had plummeted to $0.30 per share, becoming a veritable "penny stock," with an annual decline of approximately 91% and a market capitalization shrinkage of $288 million (equivalent to about 2 billion Chinese Yuan). According to financial report data for the period from July 1, 2024, to June 30, 2025, Big Tree Cloud's revenue plunged 65.08% to $2.557 million, while its net profit swung from profit to a loss of -$32.53 million (equivalent to a loss of approximately 220 million Chinese Yuan). Conversely, its selling expenses skyrocketed 26-fold, surging from $1.279 million to $34.71 million during the same period. This implies that, compounded by Nasdaq's stricter delisting rules effective December 2025, the company, which once ambitiously declared a five-year "double 100 billion" target of "10 billion Yuan in revenue and 10 billion USD in market cap," now faces not only operational pressures but also the looming threat of delusion.
The "Quick-Fix" First Personal Care Stock
In 2020, Zhu Wenquan, who had previously served as the first Party secretary stationed in Ludi Village, Yunyan District, Guiyang City, ventured into entrepreneurship by establishing Big Tree Cloud Investment Holding Co., Ltd. Headquartered in Hong Kong with its mainland operations center in Shenzhen, this enterprise made listing a core objective from its inception. In September 2020, Zhu Wenquan appeared on the Nasdaq promotional screen in New York, boldly proclaiming an expectation to "list on Nasdaq within two years." At that time, the Chinese feminine hygiene products market was demonstrating immense potential: the population of women of childbearing age (15-49 years) was approximately 300-350 million, with annual consumption of sanitary napkins reaching hundreds of billions of units and yearly sales exceeding 100 billion Yuan. Targeting this sector, Big Tree Cloud opted for a "quick-fix" model centered on "KOL seeding + public welfare marketing." In the initial brand promotion phase, Big Tree Cloud built a social marketing network focused on WeChat, Douyin, and Xiaohongshu. It disseminated personal care knowledge content through brand promoters and KOLs, subtly embedding product information. This strategy yielded significant early results: revenue from its sanitary napkin products surged from just $455,200 in fiscal year 2022 to $5.1628 million in fiscal year 2024, becoming the company's largest revenue source, accounting for over 70% of total revenue. Concurrently, total revenue grew from $1.94 million to $7.32 million, and the company achieved break-even net profits in both fiscal years 2023 and 2024. To further capture user mindshare, Big Tree Cloud extended its "seeding" efforts into campus public welfare initiatives. Starting in 2023, the company launched a three-year "Smiling Cloud" public welfare tour, publicly recruiting 100 primary and secondary schools in underdeveloped regions and planning to donate disinfectant-grade sanitary napkins and cash with a total value exceeding 20 million Yuan. However, given that the typical graduation age for primary school students is around 12 years old—generally not yet part of the core sanitary napkin consumer base—this超前 (ahead-of-curve) "public welfare seeding" strategy sparked industry controversy but nonetheless generated significant brand exposure. On the offline channel front, Big Tree Cloud introduced a convenience store franchise model, claiming that for a mere 5,000 Yuan franchise fee, partners could access brand support, logistics distribution, and product marketing services. Promotional materials from 2023 indicated it had "added 20 new stores in Yingkou within one month." The parallel operation of online e-commerce and offline franchising, combined with social platform seeding, enabled Big Tree Cloud to complete its capital market journey from establishment to listing in just four years. In June 2024, Big Tree Cloud successfully listed on the Nasdaq Global Market via a SPAC (Special Purpose Acquisition Company) merger, becoming the first domestic sanitary napkin enterprise to list on Nasdaq. This listing method, characterized by less regulatory scrutiny and shorter procedures, utilized the $35.5 million raised early by the shell company's IPO, helping Big Tree Cloud achieve its "listing within two years" goal. At the listing ceremony, founder Zhu Wenquan, brimming with confidence, announced the company's transformation into "China's first international capital platform enterprise for personal care products."
Core Business Shrinks by Over 80%
Following its listing, Big Tree Cloud swiftly shifted into a dual-drive mode of "capital operations + large-scale marketing." In fiscal year 2025, the company catapulted its selling expenses to $34.71 million, a staggering increase of more than 26 times compared to the previous fiscal year's $1.279 million. This massive expenditure covered distributor equity incentive compensation, advertising fees, market promotion expenses, and logistics distribution costs, with share-based payment expenses alone amounting to a hefty $34.2 million. However, this gamble-like marketing investment failed to deliver the expected returns, instead trapping the company in a vicious cycle of "the more money burned, the greater the losses." In fiscal year 2025, Big Tree Cloud's sanitary napkin business revenue was a mere $954,500, collapsing by 81.51% from the previous year's $5.1628 million—a severe blow to its core operations. Most notably, online channels experienced a comprehensive chill. The Douyin account "大树云消毒级卫生巾" (Big Tree Cloud Disinfectant-Grade Sanitary Napkins) ceased updates in May 2023, related Xiaohongshu accounts gradually went dormant in early 2024, and product links in stores showed as "delisted." On its Taobao official store, the total number of paying customers across 9 products was less than 200, while products sold on the JD.com platform were mostly from third-party distributors, with sales figures often in the single digits. The offline franchising business proved equally ephemeral. The convenience store franchise project launched in early 2023 operated for only about half a year before the WeChat account "大树云经营连锁" (Big Tree Cloud Operation Chain) stopped updating in August of that year, and the "Ten Thousand Stores in a Hundred Cities" plan was effectively abandoned. Some franchisees reported that after paying the 5,000 Yuan franchise fee, they did not receive the promised logistics and marketing support, leading many stores to quietly close down. The core reason for the marketing model's failure lies in the lack of product competitiveness. As of the end of June 2024, Big Tree Cloud had only 2 research and product development personnel. The "national standard negative deviation" trust crisis that erupted in the sanitary napkin industry in 2024 heightened consumer focus on product quality to unprecedented levels, sounding an alarm for personal care brands regarding quality enhancement and R&D innovation. More questionably, Big Tree Cloud's massive selling expenses raised several red flags. The annual report indicated that the $34.2 million in share-based payment fees were primarily paid to distributors. However, the company's SPAC listing announcement showed it had signed a three-year procurement contract worth 52.8 million Yuan with a major distributor, which contributed over half of its revenue. The specific identity of this crucial distributor and potential related-party relationships remained undisclosed by the company. After excluding these substantial share-based payments, Big Tree Cloud's actual expenditure on market promotion in fiscal 2025 was a mere $512,600.
The Disconnected "Double 100 Billion" Target
Post-listing, Big Tree Cloud rapidly unveiled an ambitious capital blueprint. Founder Zhu Wenquan publicly stated that the company would leverage the resources of global capital markets to strategically invest in and acquire high-quality Chinese personal care product enterprises, establish strategic partnerships with international brands, drive business globalization, and ultimately achieve the five-year "double 100 billion" target. To align with this strategy, Big Tree Cloud transitioned to a light-asset model, selling its production factories and proclaiming a focus on R&D and manufacturing of raw materials for sanitary napkin production, with increased investment in new material research. In 2025, Big Tree Cloud further introduced the "Innovation 50" action plan, claiming it would focus on supporting 50 advanced technology projects with industrialization prospects and fostering the overseas listing of more than 5 traditional enterprises. Guangdong Yunjia Innovative Materials Co., Ltd. became the first company under this plan. However, these seemingly promising strategic layouts appeared drastically disconnected from the company's actual situation. In reality, weak R&D capability posed the greatest obstacle to implementing this strategy. As of the end of June 2024, Big Tree Cloud had only 2 R&D personnel. The total number of employees plummeted from 82 in the first half of 2023 to 50, and by June 2025, it had further dwindled to just 20, including only 5 sales staff. Such a skeletal team could neither support technological breakthroughs in new material R&D nor effectively conduct the research, acquisition, and integration of high-quality enterprises. "Expecting 2 R&D personnel to drive a technological revolution in hygiene material industry is nothing short of a fantasy," a market analyst质疑 (queried). Simultaneously, the risk of a broken funding chain loomed. In 2025, Big Tree Cloud completed a new round of strategic capital increase, with Shenzhen Wengu Fazhan Investment Partnership committing to a phased investment of 30 million Yuan, of which 23 million Yuan had been received. However, by the end of June 2025, these funds were nearly depleted, leaving the company with cash and equivalents of only $1.679 million. Furthermore, the company faced significant debt pressure: current liabilities stood at $3.3822 million, with loans due in 2-5 years amounting to $3.0428 million and payments due within one year totaling $626,600. More alarmingly, Big Tree Cloud's capital operation model had long been contentious. In 2020, the company launched the "Surprise Mall," employing a model involving "fixed monthly consumption" and "the entire mall helps sell goods" to develop multi-level distributors, promising merchants they could become "original shareholders." By the end of September 2020, it claimed to have 24,000 such "original shareholder merchants." Subsequently, the "Ten Thousand Stores in a Hundred Cities" convenience store franchise plan ambitiously aimed to "open over 6,000 stores by 2025." Yet, these projects were all abandoned midway: the "Surprise Mall" service account stopped updates in December 2021, the franchise account went dormant in August 2023, leaving tens of thousands of franchisees and so-called "original shareholders" with受损 (impaired) interests, leading to recurring complaints on social platforms.
Delisting Shadows Under New Rules
Indeed, the specter of delisting has persistently haunted this "first personal care stock." Big Tree Cloud faced a delisting crisis merely two months after its IPO: on August 5, 2024, it received a delisting warning notice because its public float market value fell below Nasdaq's minimum requirement of $15 million. The crisis was temporarily averted on September 23 of that year. Now, the delisting threat has returned. In September 2025, Nasdaq introduced new listing rules that further raised the bar. These rules not only maintained the $15 million minimum public float market value requirement but also clarified that already-registered shares for resale would no longer be counted towards the public float calculation, while also expediting the delisting process for companies whose market value falls below $5 million. Based on the December 31 share price of $0.30, Big Tree Cloud's current market value is significantly below the safety threshold. If it fails to boost its share price in the short term, it will trigger the delisting criteria once again. Even more严峻 (severe) is the fact that Big Tree Cloud's share price is caught in a relentless downward spiral. On September 9, 2025, the stock price suddenly surged by 169.61% to $7.33 per share, but this short-term speculation, unsupported by fundamentals, proved unsustainable, and the price subsequently declined steadily. According to Nasdaq rules, a stock price trading below $1 for 30 consecutive days results in a delisting warning, and failure to rectify the situation within 90 days leads to suspension of trading. This places Big Tree Cloud perilously close to the delisting cliff's edge. Concurrently, intensifying industry competition has added to Big Tree Cloud's operational pressures. Although the Chinese sanitary napkin market is vast, competition is exceptionally fierce and market concentration is extremely low—leading brands like Sofy, Space 7, and Whisper hold market shares of only 12%, 10%, and 6% respectively, while thousands of small and medium-sized brands engage in cutthroat competition in the mid-to-low-end market. In recent years, rising raw material costs and escalating marketing expenses have continuously squeezed the生存空间 (survival space) for smaller brands. The 2024 industry-wide "national standard negative deviation" trust crisis caused consumer trust in small and medium brands to plummet to an all-time low. Confronting the crisis, Big Tree Cloud stated in its financial report that it would continue advancing the "Innovation 50" action plan to enhance core competitiveness through technological innovation. However, given the reality of insufficient R&D investment and capital scarcity, this plan appears more like a statement of desperation. One investor commented on a stock forum: "From seeding to capital games, Big Tree Cloud has always been telling stories but never truly solidifying its business operations." From a rapidly listed capital dark horse to a濒临退市 (delisting-imminent) "penny stock" today, Big Tree Cloud reflects issues prevalent among some US-listed Chinese stocks, such as "emphasizing marketing over R&D, prioritizing concepts over实体 (substantive operations), and focusing on capital maneuvers over building core competitiveness." For products like sanitary napkins that directly impact consumer health, quality remains the fundamental basis for survival. Clearly, amidst the ongoing consolidation and upgrade of China's personal care industry, only enterprises that genuinely uphold product quality, prioritize technological innovation, and adhere to standardized management can stand out in the fierce competition. The experience of Big Tree Cloud may serve as a mirror for the industry's development... (This analysis is based on publicly available data and information and does not constitute any investment advice.)
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