Utime Limited (NASDAQ:WTO) saw its stock slide sharply in premarket trading after announcing a planned 5-for-1 share consolidation that will take effect on February 17, 2026. Trading for the company’s common stock fell 29.6% in premarket hours on the day the consolidation became public.
Under the terms disclosed by the company, each block of five Class A ordinary shares with a par value of $0.10 will be merged into one Class A ordinary share with a par value of $0.50. After the consolidation is completed, the company said it will continue to trade under the existing ticker symbol "WTO," although the securities will carry a new CUSIP number.
The consolidation was approved internally by Utime’s board of directors on January 20, 2026. Shareholders then endorsed the transaction at an extraordinary general meeting held on January 26, 2026, according to the company’s announcement.
Utime emphasized that the reverse split will not change any shareholder’s percentage ownership interest in the company, other than limited rounding differences that may arise from the handling of fractional shares. The company did not provide additional commentary beyond the procedural details of the consolidation.
Utime Limited is a designer, developer, producer, and seller of mobile devices for markets in China and abroad. The company is positioned as a supplier of cost-conscious products for a broad customer base.
The pronounced premarket decline indicates a negative investor response to the upcoming change in share structure. While the company framed the action as neutral with respect to ownership percentages, the market reaction suggests investors registered concern or dissatisfaction tied to the consolidation announcement.
There were no further financial metrics, forward guidance, or balance sheet details provided in the company’s statement about the split. Likewise, no additional corporate actions were disclosed in connection with the consolidation.
Bottom line: Utime will carry out a 5-for-1 share consolidation on February 17, 2026, keeping the WTO ticker but issuing a new CUSIP; the disclosure coincided with a nearly 30% premarket decline in the company’s stock.