VisionSys AI Inc (NASDAQ:VSA) stock dropped 15.4% on Thursday after the company announced plans for a significant reverse stock split that will dramatically reduce its outstanding share count.

The artificial intelligence company revealed it will implement a 1-for-50 reverse share split of its ordinary shares and American Depositary Shares (ADSs), effective at market open on Monday, December 22, 2025. Following the split, VisionSys AI’s ADSs will continue trading on Nasdaq under the same “VSA” symbol but with a new CUSIP number.

The reverse split will reduce the company’s total outstanding ordinary shares from approximately 27.7 billion to 554.4 million. While the ratio of ADSs to Class A Ordinary Shares will remain unchanged at 250 underlying shares per ADS, the total number of ADSs will be reduced proportionately.

VisionSys AI noted that the split is expected to increase its ADS trading price by approximately 50 times its pre-split value, though the company cautioned it cannot guarantee the price will reflect this ratio or remain above pre-split levels.

No fractional shares will be issued in the reverse split process. For ADS holders, fractional entitlements will be aggregated and sold by Citibank, N.A., the depositary bank, with net proceeds distributed to affected shareholders.

The company’s board of directors approved the reverse split on December 12, 2025. Shareholders with holdings in book-entry form or brokerage accounts won’t need to take action regarding the split.