LinkedInIntroduction
UTime Limited (Nasdaq: WTO), founded in 2008 and headquartered in Shenzhen, China, designs and manufactures mobile devices. The company targets low-income consumers in established markets such as the United States and emerging markets across South Asia and Africa. UTime incorporated smart electric vehicle chargers into its product portfolio in July 2023. As of October 17, 2025, its shares trade on the Nasdaq Capital Market under the ticker “WTO” at $0.0873, down 35.14% on the day, with a trading volume of 11,159,329.
Corporate Structure
UTime Limited operates through several legal entities, including Changsha UTime Business Management Co., Ltd.; WTO New York Inc.; and UT (HK) International Technology Co. Limited. Following a 1-for-10 reverse share split effective March 31, 2025, the company’s Class A ordinary shares carry a par value of $0.001. Management is led by CEO Hengcong Qiu. As of August 2025, UTime reported approximately $6.69 million in pro forma stockholders’ equity, meeting Nasdaq’s $2.5 million minimum requirement.
UTime Limited by Jonathan Kemper
Developments and News
- March 26, 2025: UTime announced a 1-for-10 reverse share split to regain compliance with Nasdaq’s $1.00 minimum bid price rule, which became effective at the opening on March 31, 2025.
- August 12, 2025: The company completed a private placement raising $25 million, which restored its stockholders’ equity.
- October 9, 2025: In a Form 6-K filing, UTime confirmed that two unauthorized filings had been submitted to the SEC, falsely indicating changes in leadership. Management regained control of its EDGAR access codes the same day.
- October 14, 2025: UTime filed another Form 6-K announcing plans to discontinue operations of three subsidiaries to concentrate on core business lines.
- October 17, 2025: The company filed a prospectus (Form 424B5) for an offering of 22,727,275 Units (one Class A share plus one warrant) at $1.10 per Unit, targeting approximately $25 million before expenses.
Financial and Strategic Analysis
UTime’s market capitalization stands at approximately $1.83 million, based on 20.98 million shares outstanding. Key metrics (TTM) include:
- Revenue: $35.24 million
- Gross Margin: 2.82%
- Net Margin: –266.33%
- EPS: –$25.56
- ROE: –568.60%
- Debt-to-Equity: 50.29%
- Beta: 0.68
- Year-to-Date Price Change: –97.42%
The reverse share split reduced outstanding shares from approximately 36 million to 3.6 million. Proceeds from the October 17 offering (expected net proceeds of $20.8 million) will support working capital and compliance with listing standards. The combination of share and warrant Units aims to enhance fundraising flexibility but may dilute existing shareholders if warrants are exercised.
Market Position and Industry Context
UTime competes in the low-end mobile device segment, facing competition from established global brands and regional vendors. Its focus on affordability addresses demand in price-sensitive markets. The addition of EV chargers aligns with trends in energy efficiency and carbon reduction. However, UTime’s share price volatility, limited liquidity (10-day average volume of 4.27 million), and absence of a dividend policy reflect its small-cap status and ongoing need for capital.
tl;dr
UTime’s shares declined on October 17, 2025, with a 35.14% drop to $0.0873. The company implemented a 1-for-10 reverse split on March 31, 2025, and raised $25 million via private placement in August. On October 17, it filed for a $25 million Unit offering (shares plus warrants) to support liquidity and Nasdaq compliance. Its YTD decline of 97.42% and TTM net loss highlight ongoing financial challenges.
