UTime Limited Announces Reverse Stock Split

Rhea-AI Summary

UTime (Nasdaq: WTO) announced a 5-for-1 reverse stock split of its Class A ordinary shares, effective 8:00 a.m. ET on February 17, 2026.

The Company will trade on the Nasdaq Capital Market post-split under the existing ticker WTO with a new CUSIP G9411M140. The board approved the consolidation on January 20, 2026, shareholders ratified it at the January 26, 2026 extraordinary meeting, and related amendments to authorized share capital and the memorandum and articles were approved.

The consolidation will not change any shareholder’s percentage ownership except for minor adjustments from fractional-share treatment.

Positive

• 5-for-1 reverse split effective 8:00 a.m. ET on February 17, 2026
• Post-split trading continues under ticker WTO on Nasdaq with new CUSIP G9411M140
• Shareholders' percentage ownership unaltered aside from fractional-share adjustments

Negative

• Fractional-share treatment may cause minor adjustments to individual holdings
• Shareholders approved an increase in authorized share capital, enabling potential future share issuance

Key Figures

Reverse split ratio: 5-for-1 Pre-split par value: US$0.10 per share Post-split par value: US$0.50 per share +5 more

8 metrics

Reverse split ratio 5-for-1 Class A ordinary share consolidation approved January 26, 2026

Pre-split par value US$0.10 per share Class A ordinary shares before consolidation

Post-split par value US$0.50 per share Class A ordinary shares after consolidation

Effective time 8:00 a.m. Eastern Time Share consolidation effective on February 17, 2026

Effective date February 17, 2026 Trading on Nasdaq on a post-split basis begins

Board approval date January 20, 2026 Share consolidation approved by board of directors

EGM approval date January 26, 2026 Extraordinary general meeting approved consolidation and capital changes

Price move 38.38% 24h move in WTO shares before this news

Market Reality Check

Price: $0.6225 Vol: Volume 1,860,124 is 2.19x...

high vol

$0.6225 Last Close

Volume Volume 1,860,124 is 2.19x the 20-day average of 850,410, indicating elevated trading interest ahead of the consolidation. high

Technical Shares trade well below the 200-day MA, with price at 1.01 versus a 200-day MA of 75.58, underscoring a deeply depressed longer-term trend.

Peers on Argus

WTO showed a strong positive move of 38.38% while key Consumer Electronics peers...

1 Up

WTO showed a strong positive move of 38.38% while key Consumer Electronics peers like VUZI, UEIC, KOSS, AXIL, and GPRO all declined on the day. Momentum scanning only flagged ZEPP with an upside move, reinforcing that WTO’s action was company-specific to its reverse split news rather than a sector-wide rotation.

Previous Stock split Reports

3 past events · Latest: Nov 12 (Negative)

Same Type Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 12	Reverse stock split	Negative	-5.3%	Announced 1-for-100 reverse split to address Nasdaq minimum bid requirement.
Mar 26	Reverse stock split	Negative	-21.7%	1-for-10 reverse split to regain compliance with $1.00 Nasdaq bid price.
Sep 09	Reverse stock split	Negative	-27.9%	1-for-25 reverse split to lift share price and meet Nasdaq rules.

Pattern Detected

Reverse split announcements for WTO have typically been followed by negative one-day returns, indicating a history of shareholder skepticism toward these capital-structure actions.

Recent Company History

Over the past two years, UTime has repeatedly used reverse share splits to address Nasdaq bid-price compliance. Prior actions included a 1-for-25 split on Sep 11, 2024, a 1-for-10 split effective Mar 31, 2025, and a 1-for-100 split effective Nov 21, 2025, each followed by negative price reactions. Against that backdrop, today’s 5:1 consolidation continues the same capital-structure adjustment theme aimed at maintaining its exchange listing.

Historical Comparison

stock split

-18.3 %

Average Historical Move

Historical Analysis

In the past, WTO’s three reverse split announcements averaged a -18.32% one-day move. Today’s +38.38% reaction to another share consolidation stands out as a sharp upside divergence from that pattern.

Typical Pattern

UTime has implemented successive reverse splits (1-for-25, 1-for-10, 1-for-100) since 2024, all framed as tools to regain or maintain Nasdaq minimum bid compliance, with the new 5:1 consolidation extending this capital-structure adjustment path.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-07-03

UTime has an active Form F-3 shelf registration filed on 2025-07-03, with at least one usage via a 424B5 prospectus on 2025-10-17. The shelf is marked as not yet effective in the provided context, but once effective it would allow the company to issue registered securities as outlined in that filing.

Market Pulse Summary

This announcement detailed a 5-for-1 reverse consolidation of Class A shares, effective February 17,...

Analysis

This announcement detailed a 5-for-1 reverse consolidation of Class A shares, effective February 17, 2026, with par value moving from US$0.10 to US$0.50. It followed shareholder approvals to overhaul UTime’s capital structure and echoes prior 2024–2025 reverse splits aimed at Nasdaq compliance. Investors may watch how post-split liquidity, any future board-authorized consolidations, and use of the existing shelf registration interact with recent growth initiatives in servers and wearables.

Key Terms

share consolidation, par value, cusip, fractional shares

4 terms

share consolidation regulatory

"its share consolidation (“Share Consolidation”) involving the consolidation of every"

Share consolidation is a process where a company reduces the total number of its shares by combining multiple existing shares into a smaller number of higher-value shares. This can make each share more expensive and potentially improve the company’s image. For investors, it often means their ownership remains the same, but the value of each share increases, which can influence how the stock is perceived and traded.

par value regulatory

"shares, with a par value of US$0.10 per share, into one (1) class A ordinary"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

cusip technical

"on a post-split basis, under the existing ticker symbol “WTO,” with a new CUSIP number"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

fractional shares financial

"except for minor adjustments resulting from the treatment of fractional shares."

Fractional shares are portions of a whole share of a stock or fund, allowing investors to own less than one full unit. They make it possible to invest a specific dollar amount rather than buy whole shares, like buying a slice of a pizza instead of the entire pie. For investors this lowers the cost barrier, helps with diversification, and lets you reinvest dividends or purchase expensive stocks in small, precise amounts.

AI-generated analysis. Not financial advice.

SHENZHEN, China, Feb. 06, 2026 (GLOBE NEWSWIRE) -- UTime Limited (Nasdaq: WTO) today announced that its share consolidation (“Share Consolidation”) involving the consolidation of every five (5) Class A ordinary shares, with a par value of US$0.10 per share, into one (1) class A ordinary share with a par value of US$0.50 per share, will take effect at 8:00 a.m. Eastern Time on February 17, 2026. The Company’s Class A Ordinary shares will open for trading on the Nasdaq Capital Market on February 17, 2026, on a post-split basis, under the existing ticker symbol “WTO,” with a new CUSIP number of G9411M140.

Details of the Share Consolidation

The Share Consolidation was approved by the Company’s board of directors on January 20, 2026, was further approved by the Company’s shareholders at the Company’s extraordinary general meeting held on January 26, 2026 (the “Extraordinary Meeting”), with the final 5:1 Share Consolidation ratio set by the board of directors on January 26, 2026. At the Extraordinary Meeting, the shareholders approved the Share Consolidation, along with resolutions to increase the authorized share capital and to amend the memorandum and articles of association, and a potential share consolidation, following the effectiveness of the Share Consolidation.

Impact on Shareholders

The Share Consolidation will not affect any shareholder’s percentage ownership interest in the Company, except for minor adjustments resulting from the treatment of fractional shares.

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.

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. For additional risk factors, please review UTime Limited’s Annual Report on Form 20-F and other SEC filings. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, 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
qhengcong@utimemobile.com

FAQ

What is the reverse stock split ratio and effective date for UTime (WTO)?

The company is implementing a 5-for-1 reverse split effective 8:00 a.m. ET on February 17, 2026. According to the company, this consolidates every five Class A shares into one Class A share and takes effect before market open on that date.

Will UTime shares still trade as WTO after the reverse split?

Yes. According to the company, Class A ordinary shares will trade post-split on the Nasdaq Capital Market under the existing ticker WTO. The company also noted a new CUSIP: G9411M140 for post-split shares.

How does the 5:1 consolidation affect UTime shareholders' ownership percentages?

Shareholders' percentage ownership remains unchanged except for fractional adjustments. According to the company, the consolidation preserves proportional ownership, with only minor rounding effects from fractional-share treatment.

Did UTime approve any changes to authorized shares alongside the reverse split?

Yes. According to the company, shareholders approved an increase to the authorized share capital and amendments to the memorandum and articles at the January 26, 2026 extraordinary meeting, alongside the share consolidation.

What should WTO shareholders expect about fractional shares after the reverse split?

Shareholders may receive cash or other treatment for fractional shares resulting from the consolidation. According to the company, fractional-share treatment will cause only minor adjustments to individual holdings following the 5:1 consolidation.