UTime Limited Provides Update on Due Diligence Progress for Proposed Transaction with Feixiaohao

UTime (NASDAQ: WTO) reported that financial, legal and operational due diligence for its proposed strategic transaction with Feixiaohao Technology is progressing smoothly.

Rhea-AI Summary

UTime (NASDAQ: WTO) reported that financial, legal and operational due diligence for its proposed strategic transaction with Feixiaohao Technology is progressing smoothly. The non-binding letter of intent covers potential business integration, technology infrastructure and market expansion in Web3 data and digital infrastructure, though completion is not assured.

Argus May 11 session

+8.51% close to close Open Argus

Details

News Market Reaction – WTO

On May 11, the day this news came out, WTO closed 8.51% above the previous close.

Data tracked by StockTitan Argus for the May 11 session.

Historical Context

5 past events · Latest: May 01

5 events

1. May 01

   Registered direct offering

   24h Move

   -19.1%

   Dilutive $1.2M registered direct equity financing at $1.20 per share.

2. Mar 13

   Acquisition LOI

   24h Move

   +2.0%

   Nonbinding LOI to acquire Feixiaohao for up to USD 80M.

3. Feb 06

   Reverse stock split

   24h Move

   -38.4%

   5-for-1 reverse split of Class A ordinary shares effective Feb 17, 2026.

4. Feb 03

   Server order agreement

   24h Move

   +83.2%

   Intent agreement for 500,000 GM800 smart servers worth about US$50M.

5. Dec 31

   Wearables mega order

   24h Move

   +61.1%

   Nearly $10M order for 50,000 smart health devices for North America.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

web3, cryptocurrency, blockchain, non-binding letter of intent, +1 more

5 terms

web3 technical

"a widely recognized Web3 data and information platform serving millions"

An approach to the internet that uses decentralized technologies (like blockchains and smart contracts) to give users control over data, identity and digital assets instead of relying on a single company. For investors it matters because it enables new business models—token-based ownership, marketplaces and governance structures—but also brings higher volatility, novel revenue streams and regulatory uncertainty, so investment outcomes can be very different from traditional tech.

cryptocurrency financial

"serving millions of cryptocurrency and blockchain users globally"

Cryptocurrency is a type of digital money that uses special computer codes to secure transactions and control the creation of new units. Unlike traditional cash, it exists only electronically and isn't issued or regulated by any government or bank. For investors, it represents a new form of asset that can be used for transactions or held as an investment, often with the potential for high gains but also significant risks.

View in glossary

blockchain technical

"serving millions of cryptocurrency and blockchain users globally"

A blockchain is a digital record-keeping system that securely stores information across many computers, making it difficult to alter or tamper with. Think of it like a shared, unchangeable ledger that everyone can see and verify, ensuring transparency and trust. For investors, this technology offers a way to securely track transactions and assets without relying on a central authority, potentially reducing costs and increasing security.

View in glossary

non-binding letter of intent financial

"UTime entered into a non-binding letter of intent regarding a potential"

A non-binding letter of intent is a preliminary document that outlines the main terms and expectations of a proposed transaction—such as a merger, acquisition, investment or partnership—without creating a legally enforceable obligation to complete the deal. Think of it as a written handshake or shopping list: it signals serious interest and sets the framework for negotiations and due diligence, which can move markets, but it does not guarantee the transaction will happen until a final, binding agreement is signed.

regulatory approvals regulatory

"subject to the completion of due diligence, negotiation and execution ... and applicable regulatory approvals"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHENZHEN, China, May 11, 2026 (GLOBE NEWSWIRE) -- UTime Limited (NASDAQ: WTO) (“UTime” or the “Company”), a company focused on technology innovation and digital infrastructure development, today announced that its ongoing financial, legal and operational due diligence relating to the proposed transaction with Feixiaohao Technology Inc. (“Feixiaohao”) is progressing smoothly and in an orderly manner.

As previously disclosed, UTime entered into a non-binding letter of intent regarding a potential strategic transaction involving Feixiaohao, a widely recognized Web3 data and information platform serving millions of cryptocurrency and blockchain users globally.

The Company believes that both parties have maintained active communication and coordination throughout the due diligence process. UTime and Feixiaohao are currently working closely with their respective advisors and professional teams to evaluate various aspects of the proposed transaction, including business integration opportunities, technology infrastructure, market expansion strategies and long-term development plans.

Management of UTime believes that the proposed transaction could further strengthen the Company’s strategic positioning in the evolving Web3 and digital data infrastructure sector. The Company also believes that Feixiaohao’s established market presence, user base and industry resources may provide meaningful synergies with UTime’s future business initiatives.

“We are pleased with the progress of the ongoing due diligence work and the constructive discussions between both parties,” said Hengcong Qiu, Chief Executive Officer of UTime Limited. “We believe this potential transaction represents an important strategic opportunity for UTime as we continue to explore expansion into innovative digital technology and Web3-related infrastructure businesses.”

UTime emphasized that the proposed transaction remains subject to the completion of due diligence, negotiation and execution of definitive agreements, satisfaction of customary closing conditions and applicable regulatory approvals. There can be no assurance that any definitive agreement will be executed or that the proposed transaction will ultimately be completed.

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 UTime’s website at utimemobile.com.

Forward-Looking Statements

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 UTime’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking statements in this press release include, without limitation, statements regarding UTime’s proposed acquisition of the data platform “Feixiaohao,” including whether the parties will negotiate and enter into a definitive agreement, whether the acquisition will be completed, and, if acquired, whether the Company will be successfully deploy any post-acquisition plans, integration activities, synergies, expected benefits, or Web3 infrastructure expansion initiatives. These forward-looking statements, 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 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 by 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did UTime (NASDAQ: WTO) announce about due diligence with Feixiaohao on May 11, 2026?

UTime announced that ongoing financial, legal and operational due diligence for its proposed transaction with Feixiaohao is progressing smoothly. According to UTime, both sides are actively coordinating with advisors to assess business integration, technology infrastructure, market expansion strategies and long-term development plans.

What is the proposed transaction between UTime (WTO) and Feixiaohao?

The proposed transaction is a potential strategic deal under a non-binding letter of intent between UTime and Web3 data platform Feixiaohao. According to UTime, it involves evaluating integration opportunities, technology infrastructure alignment, market expansion strategies and long-term digital and Web3 infrastructure development.

How could the Feixiaohao transaction affect UTime (WTO) in the Web3 sector?

UTime believes the proposed Feixiaohao transaction could strengthen its position in Web3 and digital data infrastructure. According to UTime, Feixiaohao’s user base, market presence and industry resources may create synergies with UTime’s future business initiatives, supporting expansion into innovative digital technology and Web3-related infrastructure.

Is the UTime (WTO) and Feixiaohao deal confirmed or still conditional?

The UTime and Feixiaohao deal is not confirmed and remains conditional. According to UTime, completion depends on finishing due diligence, negotiating and executing definitive agreements, satisfying customary closing conditions and receiving required regulatory approvals, with no assurance the transaction will ultimately be completed.

What risks did UTime (WTO) highlight regarding the proposed Feixiaohao transaction?

UTime highlighted that the Feixiaohao transaction may not close because it is still subject to multiple conditions. According to UTime, these include completion of due diligence, final agreements, customary closing conditions and regulatory approvals, and there is no guarantee of execution or completion.