Press Release: U Power Reports Financial Results for Full Year of 2025

Transitioning to a Provider of Sustainable Mobility and Energy Solutions by Expanding into AI-Driven Energy Management Solutions for IDCs

SHANGHAI, May 15, 2026 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of AI-integrated 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 financial results for the full year ended December 31, 2025 ("FY 2025").([1])

FY 2025 Financial Highlights

   -- Total revenue of RMB41.1 million (or $5.9 million), compared to RMB44.3 
      million in the same period of 2024. 
 
   -- Gross profit of RMB14.9 million (or $2.1 million), compared to RMB10.5 
      million in the same period of 2024. Gross margin of 36.3%, compared to 
      23.6% in the same period of 2024. 
 
   -- Net loss of RMB 80.5 million (or $11.4 million), compared to RMB56.3 
      million in the same period of 2024. 
 
   -- Cash and cash equivalents of RMB22.0 million ($3.1 million) as of 
      December 31, 2025, compared to RMB23.4 million as of December 31, 2024. 

FY 2025 Operational Highlights

   -- Thailand: 
 
          -- Delivered Southeast Asia's first battery-swapping taxi fleet in 
             Phuket Island, and the region's first smart battery-swapping 
             station. 
 
          -- Strategic partnership with Whale Logistics Ltd. ("Whale 
             Logistics"), to deploy up to 1,000 battery-swapping electric truck 
             tractors, as part of a broader plan to deliver 4,200 SAIC-Hongyan 
             heavy trucks. 
 
          -- Deployment of battery-swapping agricultural drones through a 
             partnership with Chia Tai Co., Ltd. 
 
   -- Hong Kong SAR: 
 
          -- Inaugurated Hong Kong's first operational smart battery-swapping 
             station and plans to build, install and operate a total of 50 
             stations, and deploy 300 battery-swapping vehicles. 
 
   -- Southern Europe: 
 
          -- Joint venture with ANTRAL to deliver battery-swapping stations 
             serving 150-200 electric vehicles for taxi drivers. 
 
          -- Initial EUR540,000 sales agreement with Polestar Energy S.L. for 
             the deployment of twenty battery-swapping electric vans and a 
             supporting station in Italy; potential expansion across Spain, 
             Portugal, and Albania. 
 
   -- Latin America: 
 
          -- Mexico: Strategic partnership to deploy battery-swapping vehicles 
             for ride-hailing services. 
 
          -- Peru: Pilot project of two/three-wheeled vehicles for Treep 
             Mobility Group S.A.C.; sold and delivered 50 two- and 
             three-wheeled vehicles, eight battery-swapping cabinets and a 
             corresponding number of compatible batteries for taxi services. 
 
([1]) All amounts presented in U.S. dollars ($) in this news release are based 
on a conversion rate of RMB7.0288 to $1.00 for the reporting period ended 
December 31, 2025. 
 

Year-to-Date 2026 Operational Milestones

U Power entered 2026 focused on scaling its UOTTA(TM) battery--swapping platform in international markets while expanding into digital and AI--driven energy solutions. Year--to--date 2026 operational milestones include:

   -- Further expansion in key markets: 
 
          -- Thailand: Passed comprehensive operational testing and full--stack 
             integration for heavy--duty truck prototypes; production of first 
             batch of 30 trucks completed, with shipment to Whale Logistics 
             scheduled for late May 2026 under the 1,000--vehicle plan. 
 
          -- Hong Kong SAR: Completed road testing and compatibility validation 
             of battery-swapping taxi fleet; first batch of 60 taxis and a 
             supporting battery-swapping station expected to be delivered in 
             the second quarter of 2026. 
 
   -- New business initiatives: 
 
          -- Tokenized real--world assets: Launched its first 
             regulatory-compliant tokenized real-world assets ("RWA") on the 
             BNB Chain in January 2026, leveraging UOTTA(TM) technology; 
             initial focus on the Southern Europe market, with planned 
             expansion into other key markets. 
 
          -- AI--driven IDC energy solutions: Entered AI-driven energy 
             management for Intelligent Data Centers ("IDCs") in April 2026 
             through a joint venture with Guofu Hydrogen Energy (Hong Kong) 
             Development Co., Limited and Cloud Digital Chain Limited , marking 
             U Power's strategic expansion into providing AI-driven energy 
             management solutions. 

Mr. Jia Li, CEO and Chairman of the Board of Directors of U Power, commented on the FY 2025 results, "2025 was a transformative year for U Power as we advanced our overseas battery-swapping strategy through international expansion and R&D investment. While revenue declined during the year, gross profit rose 42.6% and gross margin expanded to 36.3% from 23.6%, reflecting our shift toward higher-margin international markets. With RMB22.0 million in cash and cash equivalents, we believe we are well-positioned to support our 2026 growth pipeline. We also made operational progress across key international markets. In Thailand, the world's first commercial battery-swapping taxi fleet is now in service, and in Hong Kong SAR, we deployed the first battery-swapping station under our planned 55-station rollout and continue progressing toward a commercial launch. We also advanced deployments in Peru and Southern Europe across multiple vehicle classes and station applications."

Mr. Li concluded, "U Power is developing an AI-powered intelligent energy and transportation network. We believe our automated battery-swapping stations are not just efficient energy-replenishment facilities for commercial EVs, but critical infrastructure nodes linking cloud-based intelligent dispatch to real-world transportation. We anticipate this industrial-grade technology to deliver a 'near-zero human intervention' replenishment model for future Level 4 autonomous fleets. In parallel, we are endeavoring to advance the integration of AI within our energy storage systems, which we expect will allow us to optimize energy dispatch based on time-of-use pricing, unlocking both cost savings and potential power-market revenue. On the Web3 front, U Power is pursuing the RWA tokenization of its battery-swapping infrastructure, battery assets, and associated revenue streams. This approach aims to transform operational data and energy assets into a scalable digital-asset ecosystem."

"Looking ahead, we are planning to broaden our platform into AI-driven energy solutions for IDCs which may position U Power as a more diversified sustainable mobility and energy solutions provider. We are encouraged by the continued confidence of our shareholders, which reflects a shared belief in U Power's long-term strategic direction and value creation potential. We believe this strategy, combined with disciplined execution and a growing partner ecosystem, can drive meaningful growth in 2026."

FY 2025 Financial Review and Analysis

Total net revenues for FY 2025 were RMB41.1 million (or $5.9 million), representing a decrease of 7.1% from RMB44.3 million during the fiscal year ended December 31, 2024 ("FY 2024"), primarily due to a decrease in revenues from product sales, partially offset by increased revenues from sourcing services and battery-swapping services. Specifically:

   -- Net revenues from product sales of RMB36.6 million (or $5.2 million) 
      decreased 12.4% during FY 2025 as compared to RMB41.8 million in FY 2024 
      and accounted for 89.1% of total net revenues. The decrease was mainly 
      attributable to lower domestic deliveries, partially offset by overseas 
      market expansion during the period. 
 
   -- Net revenues from sourcing services of RMB1.1 million (or $0.2 million) 
      during FY 2025 increased materially as compared to RMB0.06 million in FY 
      2024 and accounted for 2.7% of total net revenues. The increase was 
      primarily a result of the fleet of vehicles equipped with the Company's 
      proprietary UOTTA battery-swapping technology delivered to the Thailand 
      and Hong Kong markets in FY 2025. 
 
   -- Net revenues from battery-swapping services of RMB3.4 million (or $0.49 
      million) increased 41.5% during FY 2025 as compared to RMB2.4 million in 
      FY 2024 and accounted for 8.3% of total net revenues. The increase was a 
      result of an increased number of vehicles utilizing battery-swapping 
      services during the period, especially as more two-wheeled 
      battery-swapping vehicles were delivered to the Peru market. 

Gross profit for FY 2025 was RMB14.9 million (or $2.1 million), representing an increase of 42.6% from RMB10.5 million during FY 2024, mainly due to increased profits associated with overseas sales of battery-swapping stations. Similarly, gross margin improved to 36.3% during FY 2025, compared to 23.6% during FY 2024.

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