U Power Provides 2025 Year-End Key Business Updates in CEO's Letter to Shareholders

Rhea-AI Summary

U Power (Nasdaq: UCAR) issued a year-end CEO letter summarizing 2025 progress and international expansion of its UOTTA battery-swapping technology. Key operational achievements include expanded deployments across Asia, South America and Southern Europe, pilot stations in Hong Kong and Thailand, and an initial sales agreement in Peru for two- and three-wheeled taxi vehicles.

Financially, U Power reported a 34.4% year-over-year increase in net revenues in H1 2025 and an improvement in gross profit. The company highlighted product improvements (faster swaps, broader compatibility, cloud monitoring) and set goals such as installing 50 battery-swapping stations in Hong Kong over the next few years while planning further market expansion in 2026.

Positive

• Net revenues +34.4% year-over-year in H1 2025
• Reported gross profit improvement in H1 2025
• Signed an initial sales agreement in Peru for two- and three-wheeled taxi vehicles
• Pilot deployments in Hong Kong and Thailand with first smart stations
• Target to install 50 swapping stations in Hong Kong over the next few years

Negative

• None.

Key Figures

Net revenue growth 34.4% YoY First six months of 2025

Hong Kong station target 50 battery-swapping stations Planned installations in Hong Kong SAR over next few years

Market Reality Check

$1.81 Last Close

Volume Volume 11,219 vs 20-day average 28,922, indicating relatively light trading pre-announcement. low

Technical Price $1.81 is trading below 200-day MA at $2.59, near the 52-week low of $1.74 and well under the $9.4343 high.

Peers on Argus 1 Up 1 Down

Peers showed mixed moves, with names like RMBL up 38.96% and GORV down 34.2%, while UCAR’s pre-news move was modest at -0.55%, pointing to stock-specific factors.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Oct 21	Sales agreement Europe	Positive	+9.4%	First European van and station sale with expansion potential.
Oct 13	H1 2025 earnings	Positive	-3.0%	Strong revenue and margin gains but continued net loss reported.
Sep 29	Web3 partnership	Positive	+4.1%	AI and blockchain-based tokenized RWA battery-swapping initiative.
Sep 22	Peru sales deal	Positive	-1.0%	Initial Peru agreement for 50 vehicles and 8 swapping cabinets.
Aug 18	Heavy-truck partnership	Positive	-4.5%	Strategic deal to deploy thousands of heavy EV trucks in Thailand.

Pattern Detected

Positive commercial and partnership updates have often seen mixed or negative next-day reactions, indicating a tendency for the stock to diverge from upbeat news.

Recent Company History

Over the past few months, U Power announced multiple growth milestones. On Aug 18, 2025, it disclosed a heavy-truck partnership targeting 3,000 tractors and 1,200 port trucks in Thailand. Subsequent deals in Peru and Southern Europe, including a €540,000 van and station sale on Oct 21, 2025, underscored international expansion. H1 2025 results on Oct 13, 2025 showed net revenues up 34.4% and a sharply higher gross profit, but with a net loss. Today’s shareholder letter highlights these same themes of global rollout and financial improvement.

Market Pulse Summary

This announcement outlines U Power’s 2025 milestones and 2026 plans, emphasizing global rollout of its battery-swapping network and a 34.4% year-over-year net revenue increase in the first half of 2025. Management highlights targets such as installing 50 stations in Hong Kong and scaling solutions across Asia, South America, and Southern Europe. Investors may watch how these regional pilots convert into larger, repeat orders and how cost structure, profitability, and any future corporate actions evolve alongside this expansion.

Key Terms

predictive maintenance technical

"supporting predictive maintenance and optimized network operations"

Predictive maintenance involves using data and technology to monitor equipment or machinery in real time, identifying potential problems before they cause failures or breakdowns. By predicting when maintenance is needed, it helps prevent costly repairs and downtime. For investors, it highlights how companies can reduce expenses, improve efficiency, and maintain reliable operations, which can positively impact financial performance.

AI-powered technical

"a provider of AI-powered solutions for next-generation energy grids"

"AI-powered" describes technology that uses artificial intelligence to perform tasks, make decisions, or analyze information automatically. It’s similar to having a highly skilled assistant that can learn from data, recognize patterns, and improve over time, helping to make processes faster and more accurate. For investors, this means better insights and more efficient operations, potentially leading to smarter investment choices.

AI-generated analysis. Not financial advice.

Advancing Battery-Swapping Solutions in Major International Markets 

SHANGHAI, Dec. 9, 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 and, building on its proprietary UOTTA^TM electric vehicle (EV) battery-swapping technology, today issues a CEO's letter to shareholders.

Dear U Power shareholders,

We are excited to issue our first shareholder letter, to recap our 2025 year-end key business updates in major international markets, and to share the progress toward our mission of revolutionizing the electric vehicle (EV) ecosystem through scalable, efficient, and sustainable battery-swapping technologies.

2025 has been a truly transformative year for U Power. What began as a vision to make electric mobility more practical and accessible has grown into a global movement powered by innovation, partnerships, and people who believe in a cleaner, smarter future.

U Power successfully delivered measurable progress across all operational aspects. We have expanded our technology capabilities, optimized our cost structure, and enhanced the performance of our core platforms. Our presence on Nasdaq has further reinforced our commitment to transparency, governance, and sustainable growth. These milestones reflect the dedication of our entire team and the confidence of our shareholders.

Focusing on Global Expansion

This year marked a period of accelerated international growth for U Power. Building on our foundation in China, we successfully expanded our battery-swapping operations into several markets around the globe. We believe that each market brings unique characteristics and opportunities for U Power to demonstrate the flexibility, scalability, and impact of our technology.

Our entry into new regions reflects our commitment to making electric mobility accessible, efficient, and sustainable for all. In each location, we have adapted our solutions to local transportation needs and infrastructure conditions, through collaborations with fleet operators and in partnerships with energy providers.

By introducing our battery-swapping model to markets with growing EV demands, we aim to enable drivers and fleet owners to minimize downtime, lower operational costs, and extend vehicle lifespan, all while supporting the broader transition to clean energy transportation.

Investing in Technology and Product Development

We continued to refine our U Power modular battery-swapping platform, enhancing speed, compatibility, and cloud-based monitoring capabilities. This innovation remains central to our vision of building an open ecosystem that serves multiple EV manufacturers and fleet operators.

In 2025, we focused on improving efficiency and scalability, reducing swap times, broadening compatibility across vehicle types, and integrating smarter data analytics. Our cloud-based system now enables real-time monitoring of station performance and battery health, supporting predictive maintenance and optimized network operations.

We expect these advancements will strengthen U Power's position as an EV infrastructure innovator, as they enable faster, smarter, and more sustainable mobility solutions.

Significant Improvement of Financial Performance in H1 2025

During the first six months of 2025, we reported a 34.4% year-over-year increase in net revenues and an improvement in gross profit. These results were driven by the growing demand for our innovative UOTTA green and sustainable transportation solutions. Through strategic planning and operational execution, our customers are increasingly international, and the momentum and recognition we are gathering in our key markets strengthen our confidence in further improving our financial performance in the second half of 2025 and into 2026.

We expect to continue developing several partnerships to accelerate our market expansion and unlock new revenue channels. We believe that these collaborations—currently in advanced discussion—will position U Power at the forefront of innovation in our sector.

Key business updates and outlook in major international markets include:

Asia

• Hong Kong SAR: We initiated pilot deployments in partnership with local fleet operators, targeting high-utilization vehicles such as taxis and logistics fleets in 2025. Early results demonstrate significant reductions in downtime and improved vehicle efficiency. With the delivery of Hong Kong's first smart battery-swapping station, we anticipate expanding our presence in Hong Kong, with the goal of installing 50 battery-swapping stations in the region in the next few years to take advantage of a shared mission in such market towards accelerating green transportation.
• Thailand: Our collaboration with regional energy providers and EV distributors supports Thailand's national strategy for e-mobility. In 2026, building on the operation of the Southeast Asia's first smart battery-swapping station and leveraging the local partnership network, we expect to focus on expanding our smart battery-swapping solutions for taxi fleets and heavy trucks in the Thailand market.  

South America

• Peru: As part of our entry into Latin America, we established partnerships to adapt our technology for emerging-market conditions in 2025. We believe that the region's growing interest in sustainable transportation positions U Power for long-term impact. In 2025, we signed an initial sales agreement to deliver two- and three-wheeled vehicles for taxi services, and expect to focus on expanding the scope of our two/three-wheeled vehicle solutions, integrating U Power's modular swapping solutions into urban delivery fleets and shared mobility services.

Southern Europe 

• Italy, Spain, Portugal and Albania: We are pioneering battery-swapping electric van solutions in the region, initially with vans and a supporting station to be delivered in Italy and expect to gradually cover the other three countries.
• Our strategic initiatives in Southern Europe focus on integrating U Power's modular swapping solutions into urban delivery fleets and shared mobility services. In 2026, our Southern Europe market growth is centered on expanding its electric van solutions, with vans and a proportionate number of stations in the four main markets.

Looking Ahead to 2026

As we prepare to enter 2026, U Power remains focused on scaling our international footprint, deepening strategic collaborations, and advancing next-generation energy storage technologies. We believe our commitment to innovation and sustainability positions us to play a leading role in the global transition to electric mobility.

Building on the achievements in 2025 and our pipeline for 2026, we believe we are poised for a future filled with expansion, innovation, and sustainable success. 

Chairman & CEO
Johnny Lee

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/.

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  

 

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SOURCE U Power Limited

FAQ

What did U Power (UCAR) report for net revenue in H1 2025?

U Power reported a 34.4% year-over-year increase in net revenues during H1 2025.

What expansion plans did U Power (UCAR) announce for Hong Kong in 2025?

U Power initiated pilots and plans to install up to 50 battery-swapping stations in Hong Kong over the next few years.

Which Latin American contract did U Power (UCAR) disclose in its December 9, 2025 letter?

U Power signed an initial sales agreement in Peru to deliver two- and three-wheeled vehicles for taxi services.

How did U Power (UCAR) improve its battery-swapping technology in 2025?

The company improved swap speed, compatibility across vehicle types and added cloud-based real-time monitoring for battery health.

What markets did U Power (UCAR) target for 2026 growth?

U Power plans to scale in Asia (Hong Kong, Thailand), Southern Europe (Italy, Spain, Portugal, Albania) and Latin America based on 2025 pilots and partnerships.

Does U Power (UCAR) report improved profitability in 2025?

The company reported an improvement in gross profit during H1 2025 alongside revenue growth.