NOTE 3 — ACCOUNTS RECEIVABLE, NET

SCHEDULE OF ACCOUNTS RECEIVABLE, NET

UTIME LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except share data and per share data, or otherwise noted)

NOTE 3 — ACCOUNTS RECEIVABLE, NET (cont.)

The Company estimates expected credit losses on accounts receivable based on historical loss experience, customer-specific information, subsequent collections, current economic conditions and other relevant factors affecting collectability. The movement in the allowance for credit losses was as follows:

SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

As of March 31, 2025 and 2026, the allowance for credit losses amounted to RMB52.8 million and RMB32.4 million, respectively. The allowance primarily relates to individually assessed receivables from customers experiencing financial difficulties or other circumstances adversely affecting the expected collectability of the related balances. The decrease in the allowance during FY2026 primarily reflects the reduction in gross accounts receivable following collections and write-offs. Management reassessed the remaining receivables as of March 31, 2026 and concluded that the recorded allowance remained appropriate based on the characteristics and expected collectability of the outstanding balances.

Management performs periodic assessments of outstanding receivables, taking into consideration customer-specific information, historical collection experience, subsequent collections and current economic conditions. Based on these assessments, management concluded that the recorded allowance for credit losses was appropriate as of each reporting date.