Core Viewpoint - Univest Securities has successfully closed a registered direct offering of approximately $25 million for UTime Limited, a consumer electronics and mobile device manufacturer specializing in smartphones and related accessories [1][3]. Group 1: Offering Details - UTime Limited has agreed to sell 22,727,275 units to five institutional investors, with each unit consisting of one Class A ordinary share and one Series A warrant, at a purchase price of $1.10 per unit [2]. - The total gross proceeds from the offering were approximately $25 million before deducting fees and expenses [3]. - The offering was conducted under a shelf registration statement previously filed and declared effective by the SEC [4]. Group 2: Company Overview - UTime Limited specializes in the design, development, and manufacture of smartphones, feature phones, and related accessories, providing end-to-end product solutions [7]. - The company's principal business activities include contract manufacturing, in-house development of smart devices, integration of new technologies like IoT and 5G, and supply-chain management services [7]. Group 3: Univest Securities Overview - Univest Securities, LLC is a full-service investment bank and securities broker-dealer, providing a variety of financial services globally [6]. - Since 2019, Univest has raised over $1.5 billion in capital for issuers and completed approximately 100 transactions across various industries [6].

Core Viewpoint - UTime Limited has entered into a definitive securities purchase agreement with five institutional investors for the purchase of 22,727,275 units, which include Class A ordinary shares and Series A warrants, at a price of $1.10 per unit, aiming to raise approximately $25 million in gross proceeds [1][2][3]. Group 1: Offering Details - The offering consists of Class A ordinary shares and Series A warrants, with each warrant having an exercise price of $1.10 per share and expiring six months after issuance [3]. - The transaction is expected to close around October 17, 2025, pending customary closing conditions [3]. - The offering is conducted under a shelf registration statement previously filed and declared effective by the SEC [4]. Group 2: Company Overview - UTime Limited specializes in consumer electronics and mobile communications, focusing on the design, development, and manufacture of smartphones, feature phones, and related accessories [6]. - The company operates through both OEM/ODM services and proprietary brands, providing end-to-end product solutions that include hardware design, software customization, and after-sales support [6]. - UTime's principal business activities include contract manufacturing, in-house development of smart devices, integration of new technologies like IoT and 5G, and supply-chain management services [6].

Financial Performance - Net sales for the first quarter of 2025 decreased by $3.7 million, or 4.1%, compared to the first quarter of 2024, with comparable store sales also declining by 4.0% due to decreased traffic [2][5] - Gross profit decreased by $2.2 million, or 3.7%, but the gross margin rate improved by 20 basis points to 66.0% compared to 65.8% in the prior year, attributed to lower inventory write-offs [6] - Net income for the first quarter of 2025 was $0.2 million, a significant decrease from $1.7 million in the same period of 2024, with adjusted EBITDA falling to $4.6 million from $7.4 million [2][10][27] Operational Insights - The company maintained a gross margin of 66.0% and reported income from operations as a percentage of net sales at 0.2%, down from 2.5% in the previous year [2][28] - Selling, general, and administrative expenses slightly decreased by $0.1 million, primarily due to reductions in depreciation and costs associated with the closure of a distribution center [7] - The company had no debt outstanding and reported cash and cash equivalents of $27.1 million at the end of the quarter, an increase from $21.0 million at the end of 2024 [9][25] Management Strategy - The CEO emphasized the focus on innovation and customer experience, particularly for professional customers, while also addressing cost pressures from recent U.S. trade policy changes, including increased tariffs [3] - The company is evaluating multiple options to manage anticipated cost pressures, including sourcing adjustments and pricing strategies, leveraging a diversified supplier base [3] Market Position - As of March 31, 2025, the company operated 142 stores across 31 states and the District of Columbia, maintaining the same number of stores as the previous year [22] - The company continues to be a specialty retailer of natural stone, man-made, and luxury vinyl tiles, with a commitment to high-quality products and exceptional customer service [22]