UTime Limited Reaffirms Current Leadership and Board Composition Following Issuance of Unauthorized Press Release
Rhea-AI Summary
UTime Limited (NASDAQ: UTME) has issued an urgent statement addressing unauthorized press releases published on September 11, 2025, which falsely claimed changes in the company's management and board composition. The company confirms that CEO and Chairman Hengcong Qiu and all board members remain in their positions.
The fraudulent releases were allegedly distributed by a former employee who previously managed investor relations. UTime is taking immediate action, including notifying the SEC about fraudulent filings and involving proper authorities to investigate the matter. The company's board continues to consist of Minfei Bao, Hengcong Qiu, Xiaoqian Jia, Hailin Xie, and Yanzhi Wang.
Positive
- Swift response and transparency in addressing the unauthorized press releases
- Management team and Board of Directors remain stable and unchanged
- Company taking immediate legal and regulatory actions to protect shareholders
Negative
- Security breach in company communications revealed vulnerability in PR controls
- Potential reputational damage from fraudulent press releases
- Risk of market confusion and volatility due to false information
Insights
UTime faces serious corporate governance challenge with fraudulent press releases about leadership changes, indicating potential internal control weaknesses.
This unauthorized press release situation represents a significant corporate governance and disclosure control failure for UTime Limited. The company is dealing with a serious breach where a former employee allegedly published fraudulent press releases claiming the entire leadership team had resigned and been replaced. Such incidents can severely undermine investor confidence and market integrity.
The fact that a former employee who previously managed investor relations functions was able to distribute unauthorized communications through official channels suggests potential weaknesses in UTime's internal controls. Proper disclosure controls should prevent unauthorized access to communication channels after employment termination. This incident raises questions about the company's protocols for revoking access credentials and securing communication platforms.
The company's statement that they are "formally notifying the SEC of previous fraudulent filings made by this individual" is particularly concerning as it suggests this may not be an isolated incident. The reference to multiple fraudulent filings indicates a potentially persistent problem that went undetected for some time, which could signal broader oversight deficiencies.
For investors, this incident creates uncertainty about information reliability and raises questions about management's ability to maintain proper controls. The company will need to demonstrate enhanced governance practices, strengthen disclosure controls, and rebuild credibility with stakeholders. The SEC will likely scrutinize this situation carefully, as fraudulent corporate communications can constitute securities fraud under certain circumstances.
SHENZHEN, China, Sept. 11, 2025 (GLOBE NEWSWIRE) -- UTime Limited (the "Company" or “Utime”) (NASDAQ: WTO), a mobile device manufacturer and technology company, today issued a statement regarding misinformation the Company believes is being put into the market by a former employee and to clarify that UTime’s management and board composition remains unchanged following the unauthorized publication of two press releases put out overnight.
On September 11, 2025, two fraudulent press releases were published – one indicating that the Company’s management and board has resigned and been replaced with a new team and one indicating that the Company’s website address has been changed (the “Unauthorized Press Releases”). Each of these Unauthorized Press Releases is false and may not be relied on. The Company is now taking every action to ensure that the individual behind these publications is unable to make any further disruption.
The Company wishes to advise its shareholders, investors, and the public that the Unauthorized Press Releases were not authorized, reviewed, or approved by the Company's leadership. Specifically:
- Mr. Hengcong Qiu remains the Chief Executive Officer, Chief Financial Officer and Chairman of the Board of the Company and has not resigned.
- Mr. Minfei Bao remains a Director and has not resigned.
- No actions have been taken to change the composition of the Company's Board of Directors.
The current management team remains fully in place. The Board of Directors continues to consist of Messrs. Minfei Bao, Hengcong Qiu, Xiaoqian Jia, Hailin Xie and Yanzhi Wang.
The Company believes the Unauthorized Press Releases were put out by a former employee who had previously managed the Company’s investor relations functions. This action appears to be a deliberate attempt to interfere with the Company's business operations and stable management.
The Company is taking immediate and decisive actions to rectify this situation, protect the Company's interests, and ensure the security of its regulatory disclosures. These actions include formally notifying the SEC of previous fraudulent filings made by this individual and notifying the proper authorities to investigate this matter.
The Company is committed to transparency and upholding the highest standards of corporate governance. We appreciate the trust of our shareholders and stakeholders and will provide updates as appropriate.
About UTime Limited
Trading under the NASDAQ ticker WTO, UTime Limited is engaged in the design, development, production, sales and brand operation of mobile devices in China and globally. The company aims to provide cost-effective products and serves a broad customer base. For more information, visit the Company’s website at utimemobile.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. The forward-looking statements discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us, including those described in UTime Limited’s Annual Report on Form 20-F and our other filings made with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.
Contact
Utime Limited
7th Floor, Building 5A
Shenzhen Software Industry Base, Nanshan District
Shenzhen, People’s Republic of China 518061
Tel: (86) 755 86512266
FAQ
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