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
News Market Reaction – WTO
In the Feb 6 session, WTO declined 38.37%, reflecting a significant negative market reaction. Argus tracked a trough of -7.9% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. Trading volume was elevated at 2.6x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Stock split Reports
| Date | Event | Sentiment | 24h 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. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
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.
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.
Key Terms
par value regulatory
cusip technical
AI-generated analysis. How Rhea-AI works. 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
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
