U Power Reports Unaudited Financial Results for the First Half of 2025

- H1 2025 Net Revenues Increased 34.4% to RMB17.7 million

- H1 2025 Gross Profit Increased 551.5% to RMB8.4 million

- Cash and Cash Equivalents of RMB22.7 million as of June 30, 2025

Positioned to Take Advantage of Increasing Demand for Green and Sustainable Transportation Solutions

SHANGHAI, Oct. 13, 2025 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of AI-powered solutions for next-generation energy grids and intelligent transportation systems, building on its proprietary UOTTA TM electric vehicle (EV) battery-swapping technology, today announced its interim unaudited financial results for the six-month period ended June 30, 2025 ("H1 2025"). [1]

Johnny Lee, CEO and Chairman of U Power commented on the H1 2025 results, "Our first-half 2025 financial performance reflects strategic progress and operational execution, marked by a 34.4% year-over-year increase in revenues and improvement in gross profit. These results underscore the growing demand for our innovative solutions and the strength of our business model, as we continue to serve both domestic and international customers.

A key highlight of this period is the increasingly international composition of our customer base. This shift is no coincidence, it is the direct outcome of our strategic blueprint and deliberate efforts to expand globally, enhance brand visibility, and offer value-driven services in overseas markets since 2023. The adoption of our quick, easy, and efficient battery replenishment solutions for commercial vehicles across new geographic regions reflects the acceptance of our technology and supports our long-term vision, which was reinforced by partnerships with international enterprises such as SUSCO, SAIC Motor-CP, and SMAS that share our commitment to advancing sustainable mobility."

Commenting on growth strategy and outlook for 2025 and beyond, Mr. Lee added, "As we look toward the second half of 2025 and beyond, we are energized by the positive momentum driving our transformation into a comprehensive provider of sustainable mobility and energy solutions. Our recent deliveries of next-generation intelligent stations, along with prospective orders in Hong Kong SAR and Thailand, demonstrate how our AI-powered, carbon-reducing technologies may be utilized in urban transportation infrastructure. Hong Kong SAR and Thailand represent two of our high-priority markets, and we are eager to accelerate their long-term development with the anticipated rollout of more stations and compatible vehicles.

In parallel, we are actively deepening our ecosystem through strategic partnerships aimed at expanding the deployment of battery-swapping compatible vehicles and station networks. Our proprietary and replicable Energy Service Provider (ESP) model plays a crucial role in enabling this expansion, supporting both service scalability and geographic reach across our priority markets by combining local sales, operations and financial support. We anticipate that the traction we are getting will contribute to our growth for the remainder of 2025 and 2026.

Beyond mobility, we are also embracing the future through our engagement with Web3.0 initiatives, including Real-World Asset (RWA) tokenization and battery bank solutions. We expect these forward-looking projects to position U Power at the intersection of clean energy and digital innovation, creating new opportunities for growth and market differentiation in pioneering Web3 applications and infrastructure within the EV battery swapping sector.

The global ecosystem we are building is not only scalable, but also resilient and future-ready. We believe that the agreements and partnerships announced to date will begin delivering tangible revenue contributions in the second half of 2025. We remain unwavering in our commitment to driving the global transition to green and sustainable transportation. At U Power, we are not just adapting to change, we are helping to lead it."

[1] All amounts presented in U.S. dollars ($) in this news release are based on a conversion rate of RMB7.1636 to $1.00 for the reporting period ended June 30, 2025.

H1 2025 Financial Review

Total net revenues for H1 2025 were RMB17.7 million (or $2.5 million), representing an increase of 34.4% from RMB13.2 million during the six-month period ended June 30, 2024 ("H1 2024"), primarily due to increased revenues from sales of battery-swapping stations, sourcing services, and battery swapping services. Specifically:

Gross profit for H1 2025 was RMB8.4 million (or $1.2 million), representing a significant increase of 551.5% from RMB1.3 million during H1 2024, mainly due to increased revenues and profits associated with overseas sales of battery swapping stations. Similarly, gross margin significantly improved to 47.3% during H1 2025, compared to 9.8% during H1 2024, mainly due to increased revenues and gross profit.

Total operating expenses for H1 2025 were RMB25.9 million (or $3.6 million), representing a decrease of 6.6% from RMB27.7 million in H1 2024. The decrease was mainly a result of RMB3.9 million recorded allowance for expected credit losses and RMB1.6 million lower general and administrative expenses, partially offset by increased research and development expenses and selling expenses. Specifically, for H1 2025:

Net loss was RMB27.4 million (or $3.8 million), compared to net loss of RMB26.5 million in H1 2024. Basic and diluted losses per common share were RMB5.8 (or $0.81), compared to RMB7.4 during H1 2024.

Cash and cash equivalents were RMB22.7 million ($3.2 million) as of June 30, 2025, compared to RMB23.4 million as of December 31, 2024. Working capital was RMB77.3 million ($10.8 million) as of June 30, 2025, compared to RMB48.2 million as of December 31, 2024.

Total assets were RMB396.0 million ($55.3 million) as of June 30, 2025, compared to RMB385.7 million as of December 31, 2024. Total liabilities were RMB69.1 million ($9.6 million), compared to RMB64.7 million as of December 31, 2024. Total shareholders' equity was RMB302.9 million ($42.3 million), compared to RMB291.5 million as of December 31, 2024.

Year to date Operational Milestones in Regional Markets

U Power continues to form global strategic partnerships to expand its battery-swapping offerings and compatible application scenarios, incorporating UOTTA TM technologies into passenger vehicles, two/three-wheeled vehicles, heavy trucks, buses, and agricultural drones, to address taxis, ride-hailing services, agricultural, logistics use and more.

In addition, the Company has signed multiple memoranda of understanding (MOUs) and letters of intent (LOIs), representing early-stage partnerships that lay the groundwork to strengthen our international partnership base with vehicle manufacturers, energy providers, battery-swapping commercial vehicle operators, transportation solution providers, as well as financial solutions providers, as we endeavor to advance a comprehensive ecosystem that spans vehicle and station design, development, deployment, and delivery to end customers.

Recent developments by market…

About U Power Limited

U Power is a provider of comprehensive AI-integrated energy solutions that connect electric vehicles (EVs) with advanced energy infrastructure, optimizing both mobility and grid performance. Originally a distributor of various battery-swapping station models built on its proprietary modular battery-swapping technology, UOTTA™, U Power has evolved into a provider of AI-integrated solutions for energy grids and transportation systems.

Through investments in next-generation technologies, U Power is building intelligent ecosystems that integrate resilient AI driven solutions able to transform EVs into dynamic energy assets. By incorporating AI algorithms, U Power's comprehensive solutions for smart energy grids are designed to support autonomous EV driving, optimize energy replenishment efficiency, and seamlessly connect EV assets with advanced AI-powered transportation systems, enabling peak and off-peak energy load balancing.

For more information, please visit the Company's website: https://www.upower-limited.com/.

Exchange Rate Information

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to U.S. dollars were made at the rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2025. The Company makes no representation that RMB or U.S. dollars amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statements

This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to review other factors that may affect its future results in the Company's registration statements and other filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. References and links (including QR codes) to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

Contact

U Power Limited

Investor Relations Department

ir@upincar.com

The Equity Group

Lena Cati, Senior Vice President

212-836-9611 / lcati@theequitygroup.com

Alice Zhang, Associate

212-836-9610 / azhang@theequitygroup.com

U POWER LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of RMB and US$, except for number of shares)

As of

December 31,

June 30,

2024

2025

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

23,435

22,697

3,168

Restricted cash

1,239

300

Accounts receivable

10,374

18,356

2,562

Inventories

9,872

12,980

1,812

Advance to suppliers

9,466

9,808

1,369

Other current assets

29,032

31,212

4,357

Amount due from related parties

21,657

45,065

6,291

Total current assets

105,075

140,418

19,601

Non-current assets:

Property, plant and equipment, net

8,656

8,647

1,207

Intangible assets, net

132

Operating lease right-of-use assets, net

16,205

12,003

1,676

Long-term investments

134,114

134,026

18,709

Refundable deposit for investment

39,799

20,621

2,879

Other non-current assets

81,733

80,213

11,196

Total non-current assets

280,639

255,607

35,681

Total assets

385,714

396,025

55,282

LIABILITIES AND EQUITY

Current liabilities:

Short-term bank borrowing

17,972

17,172

2,397

Current portion of long-term borrowing

5,800

810

Accounts payable

14,307

17,229

2,405

Accrued expenses and other liabilities

13,281

12,222

1,706

Income tax payables

5,169

5,496

767

Advances from customers

1,086

1,699

237

Operating lease liabilities – current

1,843

981

137

Amount due to related parties

3,239

2,520

352

Total current liabilities

56,897

63,119

8,811

Non-current liabilities:

Operating lease liabilities – non-current

4,137

2,933

409

Bank borrowings

3,700

Commitments and contingent liabilities

3,000

419

Total non-current liabilities

7,837

5,933

828

Total liabilities

64,734

69,052

9,639

U POWER LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of RMB and US$, except for number of shares) (CONTINUED)

As of

December 31,

June 30,

2024

2025

RMB

US$

Shareholders' equity:

Class A Ordinary Shares, $0.00001 par value, 3,999,411,812 Class A

Ordinary Shares authorized 2,700,00 and 3,831,668 Class A

Ordinary Shares issued and outstanding as of December 31, 2024

and June 30, 2025

Class B Ordinary Shares, $0.00001 par value, 1,000,588,188 Class B

Ordinary Shares authorized 588,188 and 588,188 Class B Ordinary

Shares issued and outstanding as of as of December 31, 2024 and

June 30, 2025

Additional paid-in capital

512,568

545,963

76,213

Accumulated deficit

(221,098)

(243,098)

(33,935)

Total U POWER LIMITED's shareholders' equity

291,470

302,865

42,278

Non-controlling interests

29,510

24,108

3,365

Total equity

320,980

326,973

45,643

Total liabilities and equity

385,714

396,025

55,282

U POWER LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of RMB and US$, except for number of shares and per share data)

For the six months ended June 30,

2024

2025

RMB

US$

Net revenues

Product sales

12,389

13,899

1,940

Sourcing services

2,812

393

Battery-swapping services

726

1,018

142

Total net revenues

13,190

17,729

2,475

Cost of revenues

(11,902)

(9,338)

(1,304)

Gross profit

1,288

8,391

1,171

Operating expenses:

Sales and marketing expenses

(1,483)

(1,767)

(247)

General and administrative expenses

(26,157)

(24,571)

(3,430)

Research and development expenses

(575)

(3,416)

(477)

Allowance for expected credit losses

531

3,903

545

Total operating expenses

(27,684)

(25,851)

(3,609)

Operating loss

(26,396)

(17,460)

(2,438)

Interest income

Interest expenses

(877)

(248)

(35)

Other income

1,435

3,917

547

Other expenses

(685)

(13,301)

(1,857)

Loss before income taxes

(26,516)

(27,076)

(3,781)

Income tax expense

(326)

(46)

Net loss

(26,516)

(27,402)

(3,827)

Less: Net loss attributable to non-controlling interests

(2,991)

(5,402)

(754)

Net loss attributable to the Company's shareholders and total

comprehensive loss

(23,525)

(22,000)

(3,073)

Loss per share attributable to ordinary shareholders of the

Company's shareholders *

Basic and diluted

(7.42)

(5.79)

(0.81)

Weighted average shares used in calculating basic and diluted

loss per share *

Basic and diluted

3,168,544

3,802,047

Net loss

(26,516)

(27,402)

(3,827)

Other comprehensive income, net of tax of nil:

Foreign currency translation adjustments

(446)

Comprehensive loss

(26,962)

(27,402)

(3,827)

SOURCE U Power Limited