SM4 is widely used in WLAN WAPI resource restricted devices. This paper proposes an 8-bit iteration structure of SM4 at ultra-low cost, which manages key expansion and encryption working alternately with only one S-Box. Furthermore to minimize the area, on-the-fly key expansion mechanism is utilized to reserve the memory for round keys and constants keys are generated by equation dynamically instead of reading from large look-up table. The area results of its ASIC hardware implementation show that the gate count of our design is only 2.51 K, gaining almost 18.0% area reduction compared to the latest works.