UTime Limited (NASDAQ: WTO) announced that due diligence for its proposed transaction with Feixiaohao Technology Inc. is progressing in an orderly manner. The Shenzhen-based mobile device company disclosed the update regarding its potential strategic transaction with the Web3 data platform.

The companies entered into a non-binding letter of intent for the potential transaction involving Feixiaohao, which operates as a cryptocurrency and blockchain information platform serving millions of users globally. Both parties are working with advisors to evaluate business integration opportunities, technology infrastructure, and market expansion strategies.

"We are pleased with the progress of the ongoing due diligence work and the constructive discussions between both parties," said Hengcong Qiu, Chief Executive Officer of UTime Limited. "We believe this potential transaction represents an important strategic opportunity for UTime as we continue to explore expansion into innovative digital technology and Web3-related infrastructure businesses."

UTime stated the proposed transaction remains subject to completion of due diligence, negotiation of definitive agreements, satisfaction of closing conditions, and regulatory approvals. The company emphasized no assurance exists that a definitive agreement will be executed or that the transaction will be completed.

The mobile device manufacturer currently trades on NASDAQ under ticker WTO and operates in design, development, production, and sales of mobile devices in China and globally. The information was disclosed in a company press release.