U-BX Technology Ltd.

Analysis for Ticker: UBXG

U Bx Technology Ltd claims to use artificial intelligence to help insurance companies in China, but the business is a machine for destroying public value. The company has bypassed the open market to sell 15 million units to private buyers for only 0,30$ each, a massive discount from the 1,22$ book value they claimed to have just months ago. This math is a disaster for regular investors because every unit includes a warrant with a zero-cost option, letting these private buyers get even more shares for free. By printing these free shares, they have increased the total share count by 87%, which mathematically crushed the value of every existing share from 1,22$ down to 0,82$. The public is being forced to provide the cash for brokers and private funds who can dump millions of free shares into the market while a law firm investigates the company for misleading its investors. This collapse is the result of a mechanism that began years ago. In 03/2022, the company dissolved its ownership structure to move all power into Chinese subsidiaries like Fuzhou Infinite Matrix Technology and Zhejiang Decision Intelligence, where the money is now trapped by government rules. By 2024, the business model proved it could not make a profit, as they spent 29,4$ million on costs for every 29,6$ million they earned, a margin of less than 1%. Most of that money went into advance payments for three tech suppliers who took 55% of all purchases, while the company handed out loans to its own stockholders using public money. To stay on the exchange, they were forced to do a one-for-sixteen reverse stock split after resetting warrant prices for the chief executive officer, Jian Chen, who bought 1,5 million warrants for himself. By late 2025, the company lost 10,18$ million in six months and revenue dropped 33%. To ensure the public could never stop this, Jian Chen and an entity named Superego Pulse Limited traded their stock for special Class B shares that have twenty votes for every one vote the public has. They then voted to increase the total authorized shares to 156,25 billion and changed the name to MindForge Inc. By 04/2026, they used a legal loophole to cancel the voting rights that protect public investors, allowing them to issue unlimited shares and pay themselves bonuses while the stock price was crushed by the new supply.