UTIME LTD TO IMPLEMENT 5:1 REVERSE STOCK SPLIT STARTING FEBRUARY 17, 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
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Should l Buy WTO?
Source: moomoo
Stock Split Announcement: Utime Ltd has announced a 5-for-1 reverse stock split.
Effective Date: The reverse stock split will take effect on February 17, 2026.
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Analyst Views on WTO
About WTO
UTime Ltd is a company principally engaged in the design, development, production, sales, and brand operation of mobile phones, accessories, and related consumer electronics. The Company also provides Electronics Manufacturing Services (EMS), including Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) services. The Company operates through its two in-house brands, UTime and Do, targeting middle-class and price-sensitive consumers in emerging markets. The Company’s products include feature phone, smartphone and mobile phone accessories. The Company's products and solutions are mainly applied in the consumer electronics and health technology sectors. The Company mainly operates in the domestic and overseas markets.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Share Consolidation Details: UTime Limited will implement a 5-for-1 share consolidation on February 17, 2026, increasing the par value from $0.10 to $0.50 per share, aimed at enhancing stock liquidity and market appeal.
- Board Approval: The consolidation plan was approved by the board on January 20, 2026, and received shareholder support at the extraordinary general meeting on January 26, reflecting transparency in corporate governance and shareholder confidence.
- Impact on Shareholders: The consolidation will not affect shareholders' percentage ownership, although minor adjustments will occur due to fractional shares, ensuring protection of shareholder rights and market stability.
- Company Background: UTime Limited engages in the design, development, and sales of mobile devices globally, focusing on providing cost-effective products to expand its customer base in both China and international markets.
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- Share Consolidation Plan: UTime announced a 1-for-5 share consolidation effective February 17, aimed at boosting its stock price to comply with Nasdaq's minimum bid price requirement, despite a 37% drop in shares last Friday.
- Shareholder Approval: Last month, shareholders approved a proposal for the board to implement either a 1-for-5 or 1-for-6 share consolidation, alongside plans to increase authorized share capital and amend the company's governing documents to strengthen its capital structure.
- Frequent Consolidations: This latest share consolidation marks UTime's third reverse split within a year, following a 1-for-10 split in March and a 1-for-100 split in November, indicating ongoing financial pressures faced by the company.
- Business Collaboration Progress: UTime's subsidiary signed an agreement with Shenzhen Yunwei Digital Technology to potentially supply 500,000 smart servers valued at approximately $50 million, showcasing the company's expansion potential in the smart device sector.
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- Share Consolidation Announcement: UTime has announced the consolidation of every five class A ordinary shares with a par value of $0.10 into one class A ordinary share with a par value of $0.50, aiming to enhance liquidity and attract more investor interest.
- Effective Date: The consolidation will take effect at 8:00 a.m. Eastern Time on February 17, 2026, when the company's shares will begin trading on the Nasdaq Capital Market on a post-split basis, which is expected to impact market performance.
- Market Reaction: Following the consolidation announcement, UTime's stock fell 32.71% in premarket trading to $0.68, reflecting a negative market reaction that may affect investor confidence.
- Strategic Implications: Through this consolidation, UTime aims to improve its capital structure; although short-term stock price volatility is significant, it may enhance the company's image and attractiveness in the capital markets over the long term.
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