U Power Limited Announces Filing of 2024 Annual Report with the U.S. Securities and Exchange Commission

Rhea-AI Summary

U Power Limited (UCAR) has filed its 2024 annual report with the SEC, revealing significant financial developments. The company achieved 124% year-over-year revenue growth to RMB44.29 million (US$6.16 million). Despite improvements, the company continues to operate at a loss, though its net profit margin improved from -248% to -130%. The debt-to-asset ratio decreased from 19.7% to 16.7%.

During 2024, U Power established strategic partnerships in Thailand, Portugal, Hong Kong, Peru, and Mexico to expand its UOTTA™ battery-swapping platform globally. The company, which aims to become a comprehensive EV battery power solution provider in China, maintains its focus on achieving profitability and creating long-term shareholder value through international expansion and financial discipline.

Positive

• Revenue growth of 124% year-over-year to RMB44.29 million (US$6.16 million)
• Net profit margin improvement from -248% to -130%
• Debt-to-asset ratio reduction from 19.7% to 16.7%
• Expansion of international presence through strategic partnerships in five countries

Negative

• Company continues to operate at a significant loss with -130% net profit margin
• Relatively small revenue base of only US$6.16 million despite being a public company

Insights

Financial Analyst

U Power shows strong revenue growth but remains deeply unprofitable despite improvement; path to profitability still uncertain.

U Power's financials reveal a 124% revenue growth to RMB44.29 million ($6.16 million), which appears impressive at first glance. However, this growth comes from an extremely low base, as evident from the absolute revenue figure that remains quite modest for a publicly-traded company.

The improvement in net profit margin from -248% to -130% indicates the company is burning less money per dollar of revenue, but this still represents a deeply concerning level of unprofitability. For every dollar of revenue, U Power is losing $1.30 - a fundamental issue that suggests the business model has not yet reached viable scale.

The reduction in debt-to-asset ratio from 19.7% to 16.7% is nominally positive for financial stability, but this improvement likely stems from equity dilution rather than debt reduction through operating cash flows, given the substantial losses. The company's emphasis on this metric over absolute debt figures or cash burn rate suggests careful framing of financial performance.

While management highlights strategic partnerships in Thailand, Portugal, Hong Kong, Peru, and Mexico, these appear to be early-stage collaborations without disclosed financial terms or near-term revenue impacts. The lack of quantifiable metrics regarding these partnerships – such as committed installations, revenue projections, or capital requirements – suggests they may still be in preliminary stages.

The CEO's statement about "accelerating international rollout" contrasts with the reality that U Power remains deeply unprofitable with modest absolute revenue. The company's "path to profitability" mentioned by the CFO lacks specific timelines, milestones, or financial targets that would make this assertion credible given the current loss levels.

SHANGHAI, May 15, 2025 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), through its operating subsidiaries, is a vehicle sourcing services provider with a vision to becoming a comprehensive electric vehicle (EV) battery power solution provider in China, today announces that, on May 15, 2025, the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 ("Form 20-F"), with the U.S. Securities and Exchange Commission (the "SEC").

2024 Financial Highlights

• The Company achieved revenue growth of 124% year-over-year in fiscal 2024 to RMB44.29 million (US$6.16 million).
• Net profit margin improved from -248% to -130%, reflecting enhanced operational efficiency and progress toward profitability.
• Debt-to-asset ratio decreased from 19.7% to 16.7% as of December 31, 2024, reflecting a reduced reliance on external financing. This improvement strengthens Company's financial stability and enhances flexibility for future strategic initiatives.

"In fiscal year 2024, U Power achieved 124% year-over-year revenue expansion," said Mr. Jia Li, Chairman and Chief Executive Officer of U Power Limited.

"During the year, we forged strategic partnerships in Thailand, Portugal, Hong Kong (China), Peru, and Mexico. We believe these collaborations will catalyze global EV adoption and position U Power as a provider of scalable, reliable battery-swapping solutions. Looking ahead, we expect to accelerate our international rollout of our UOTTA™ battery-swapping platform."

"Supported by our financial discipline and growing international footprint, we remain confident in our path to profitability and long-term value creation for shareholders," added Ms. Bingyi Zhao, Chief Financial Officer of U Power Limited.

Annual Report

U Power's Form 20-F is available on the SEC's website at www.sec.gov or on the Company's investor relations website at https://ir.upincar.com. Shareholders may also request a free hard copy of the Form 20-F, which includes the Company's complete audited financial statements, by contacting the Company at the address provided below.

About U Power Limited

U Power Limited, through its operating subsidiaries in China, is a vehicle sourcing services provider, with a vision to becoming a key player in the EV market, primarily focused on its proprietary battery-swapping technology, or UOTTA technology, which is an intelligent modular battery-swapping technology designed to provide a comprehensive battery power solution for EVs. Since beginning its operations in 2013, the Company has established a vehicle sourcing network in China's lower-tier cities. The Company has developed multiple types of battery-swapping stations for compatible EVs and currently operates one manufacturing factory in Zibo City, Shandong Province, China. For more information, please visit the Company's website: https://www.upower-limited.com/ 

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

Email: ir@upincar.com

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SOURCE U Power Limited

FAQ

What was U Power's (UCAR) revenue growth in 2024?

U Power reported a 124% year-over-year revenue growth in 2024, reaching RMB44.29 million (US$6.16 million).

How did UCAR's net profit margin change in fiscal 2024?

U Power's net profit margin improved from -248% to -130%, showing progress toward profitability despite remaining significantly negative.

What is U Power's (UCAR) international expansion strategy?

U Power formed strategic partnerships in Thailand, Portugal, Hong Kong, Peru, and Mexico to expand its UOTTA™ battery-swapping platform globally.

How did U Power's debt-to-asset ratio change in 2024?

U Power's debt-to-asset ratio decreased from 19.7% to 16.7% as of December 31, 2024, indicating reduced reliance on external financing.

Where can investors access U Power's (UCAR) 2024 annual report?

U Power's 2024 annual report (Form 20-F) is available on the SEC's website at www.sec.gov or the company's investor relations website at https://ir.upincar.com.