Micro-cap reseller of used electronics soars 3,600% in a day on AI announcement

Shares of Inno Holdings, which repairs, recycles, and resells used consumer electronics, soared more than 3,600% on Monday, the rally coming despite two reverse stock splits carried out over the last six months to lift the share price above $1 and avoid delisting. The trigger was Inno's announcement that it plans to deploy AI agents to automate sales of used mobile phones.

Shares of Inno Holdings, whose operations are primarily concentrated in Hong Kong, surged 3,661% on the Nasdaq on Monday. It was the largest single-day gain in the company's history, according to Stocktwits.

The rally began after Inno announced that an unnamed Hong Kong-based company would develop an AI-powered used mobile phone sales agent system for $3 million. The project is designed to automate sales, improve customer acquisition, and increase conversion rates, the company explained in the press release. The AI agents will proactively engage customers, improve inventory pricing accuracy, and close transactions faster, CEO Ding Wei said. "The used mobile phone market is at a pivotal turning point where AI-driven automation can create decisive competitive advantages," he said.

The project is currently in its early development stage, and there can be no assurance that it will be successfully implemented, Inno cautioned.

The new agreement is part of Inno's AI strategy, which it launched in April. The initiative is aimed at improving the operational efficiency of its electronic products trading business. The company said it plans to develop AI-powered data analytics tools, as well as product quality inspection and rating systems.

Electronics trading is a relatively new business for Inno. The company initially focused on building technologies, but announced in December 2024 that it would expand into electronic products trading. In the second quarter of 2025, it exited its construction business and shifted its focus to used consumer electronics.

The company purchases, tests, repairs, and resells devices through both wholesale and retail channels. According to its website, it also plans to launch an online trading platform and develop two additional platforms: one focused on supply chain management, and another on AI-powered testing and grading of electronic devices.

In the most recent quarter, ended March 31, Inno's revenue increased around 95% year over year to $391,900, while the net loss fell to less than a third of its year-earlier level, at $1 million.

Year to date, including Monday's rally, Inno shares are up 52%. Even so, the stock remains down almost 94% over the last 12 months.

To boost its share price, the company carried out two reverse stock splits within six months. In December, it completed a 1-for-24 reverse split to avoid delisting, as Nasdaq rules require shares to trade above $1 per share. But the stock subsequently plunged again, prompting Inno to carry out another reverse split in April, combining every 20 shares into one. On Friday, the last session before the rally, the stock was trading only slightly above $1 per share.