UTime shares plunge 28.70% after-hours following reverse stock split announcement.

UTime Limited’s stock fell 28.70% in after-hours trading following the announcement of a 5-for-1 reverse stock split, effective February 17, 2026. The share consolidation, approved by the board and shareholders, consolidates five Class A ordinary shares into one, increasing the par value from $0.10 to $0.50 per share. While the company emphasized that ownership percentages remain unchanged, the market reacted negatively, interpreting the move as a potential signal of financial distress or an attempt to meet Nasdaq listing requirements. The split, which reduces the share count and raises the per-share price, often raises investor concerns about liquidity and underlying business performance. The decline aligns with typical market reactions to reverse splits, which are frequently associated with companies addressing low share prices rather than organic growth initiatives.