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

Rhea-AI Summary

U Power (Nasdaq: UCAR) reported unaudited H1 2025 results for the six months ended June 30, 2025. Net revenues rose 34.4% YoY to RMB17.7 million ($2.5M), led by sales of battery-swapping stations (RMB13.9M, 78.4% of revenues) and higher sourcing and swapping services. Gross profit jumped 551.5% to RMB8.4M and gross margin improved to 47.3%. Total operating expenses fell 6.6% to RMB25.9M. U Power reported a net loss of RMB27.4M (basic/diluted loss per share RMB5.8) and held RMB22.7M cash at June 30, 2025. Working capital increased to RMB77.3M and total shareholders' equity rose to RMB302.9M. The company highlighted international deployments and commercial milestones in Hong Kong, Thailand, Macau, Singapore, Portugal, Mexico and Peru.

Positive

• Net revenues +34.4% YoY to RMB17.7M
• Gross profit +551.5% YoY to RMB8.4M
• Gross margin improved to 47.3%
• Working capital increased to RMB77.3M from RMB48.2M
• Delivered battery-swapping taxi fleet in Phuket and opened regional stations

Negative

• Net loss of RMB27.4M in H1 2025
• Cash and cash equivalents modest at RMB22.7M as of June 30, 2025
• Operating expenses still RMB25.9M despite a 6.6% decrease

Insights

Corporate Financial Analyst

U Power shows revenue growth and much higher gross margin but remains loss-making with modest cash.

U Power grew H1 2025 net revenues by 34.4% to RMB17.7 million ($2.5 million) driven mainly by overseas sales of battery-swapping stations and increased sourcing and service revenues; gross profit rose to RMB8.4 million with gross margin expanding to 47.3%, indicating higher-margin sales mix from international shipments.

The company still reported a net loss of RMB27.4 million ($3.8 million) despite a 6.6% decline in operating expenses and has cash and cash equivalents of RMB22.7 million ($3.2 million); key dependencies include successful conversion of MOUs/LOIs into booked orders and execution of international rollouts where the majority of revenue gains occurred.

Watch for concrete order confirmations and delivery schedules in the second half of 2025 and across 2026, gross-margin sustainability as overseas sales continue, and quarterly cash burn relative to the reported RMB22.7 million cash balance.

-   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:

• Net revenues from sales of battery swapping stations of RMB13.9 million (or $1.9 million) increased 12.2% during H1 2025 as compared to RMB12.4 million in H1 2024 and accounted for 78.4% of total net revenues. The increase was mainly attributable to overseas market expansion during the period.
  
  
• Net revenues from sourcing services of RMB2.8 million (or $0.4 million) substantially increased during H1 2025 as compared to RMB0.08 million in H1 2024 and accounted for 15.9% of total net revenues. The increase was primarily a result of the battery-swapping vehicle fleet delivered to the Thailand market in H1 2025.
  
  
• Net revenues from battery swapping services of RMB1.0 million (or $0.14 million) increased 40.2% during H1 2025 as compared to RMB0.7 million in H1 2024 and accounted for 5.7% of total net revenues. The increase was a result of increased number of battery swapping vehicles in use during the period.

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:

• General and administrative expenses of RMB24.6 million (or $3.4 million) decreased by RMB1.6 million as compared to H1 2024, mainly as a result of streamlined operations in project management during the period.
  
  
• Research and development expenses of RMB3.4 million (or $0.5 million) increased by RMB2.8 million as compared to H1 2024, primarily due to increased research investments to support technological compatibility of EVs during international expansion.
  
  
• Selling expenses of RMB1.8 million (or $0.2 million) increased by RMB0.3 million as compared to H1 2024, primarily due to higher overseas marketing expenses.

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…

• Hong Kong SAR:
  • In June 2025, the Company inaugurated Hong Kong's first smart battery-swapping station, an AI-empowered, intelligent and carbon-reducing station that connects to U Power's battery bank operations and incorporates "Battery Tokens" Web3 blockchain and token-based economy into drivers' battery-swapping activities.
  • In July 2025, the Company announced its plan to build, install and operate a total of 50 smart battery-swapping stations.
  • In August 2025, the Company signed an LOI with a technology company to deploy 300 battery-swapping vehicles.
• Macau SAR:
  • In June 2025, the Company launched the ESP Model, in order to facilitate the deployment of UOTTA battery-swapping stations and sales of compatible EVs (starting with approximately 600 four-wheeled and 5,000 two-wheeled compatible battery-swapping vehicles).
• Thailand:
  • In May 2025, the Company delivered Southeast Asia's first battery swapping taxi fleet in Phuket Island, followed by the July inauguration of the region's first smart battery-swapping station to serve that fleet.
  • In August 2025, the Company announced signing of partnerships to deploy battery-swapping compatible agricultural drones.
• Singapore:
  • In July 2025, the Company signed an agreement with a local ESP, to deploy 5,000 swappable EVs and a corresponding number of UOTTA™ stations, while converting 300 existing MG EP taxis into swappable taxis.
• Portugal:
  • In 2025, the Company developed a strategic partnership and established a joint venture with Associação Nacional dos Transportes Rodoviários em Automóveis Ligeiros ("ANTRAL") to deliver battery swapping stations serving 150-200 electric vehicles for taxi drivers.
• Mexico:
  • In August 2025, the Company established a strategic partnership with an international online ride-hailing service provider to utilize battery-swapping vehicles for ride-hailing services.
• Peru:
  • In January 2025, the Company completed a pilot project of two/three-wheeled vehicles for Treep Mobility Group and in September 2025, the Company signed an sales agreement to deliver 50 two- and three-wheeled vehicles, eight battery-swapping cabinets and a corresponding number of compatible batteries for taxi services.

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$, except for number of shares)
				As of
				December 31,				June 30,				June 30,
				2024				2025				2025
				RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents					23,435				22,697				3,168
Restricted cash					1,239				300				42
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				97				14
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$, except for number of shares) (CONTINUED)
				As of
				December 31,				June 30,				June 30,
				2024				2025				2025
				RMB				RMB				US$
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$, except for number of shares and per share data)
				For the six months ended June 30,
				2024				2025				2025
				RMB				RMB				US$
Net revenues
Product sales					12,389				13,899				1,940
Sourcing services					75				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					7				16				2
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				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)

 

 

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SOURCE U Power Limited

FAQ

What were U Power (UCAR) H1 2025 revenues and growth rate?

U Power reported H1 2025 net revenues of RMB17.7M, a 34.4% increase YoY versus H1 2024.

How did U Power (UCAR) gross profit and margin change in H1 2025?

Gross profit rose to RMB8.4M (a 551.5% increase) and gross margin improved to 47.3%.

What was U Power's (UCAR) net loss and loss per share for H1 2025?

U Power reported a net loss of RMB27.4M and basic/diluted loss per share of RMB5.8 for H1 2025.

How much cash did U Power (UCAR) have at June 30, 2025 and what is working capital?

Cash and cash equivalents were RMB22.7M and working capital was RMB77.3M as of June 30, 2025.

Which international deployments did U Power (UCAR) report in 2025 that may affect growth?

U Power reported deployments and partnerships in Hong Kong, Thailand, Macau, Singapore, Portugal, Mexico, and Peru, including a Phuket taxi fleet and Hong Kong smart station.

Did U Power (UCAR) improve operating efficiency in H1 2025?

Total operating expenses decreased 6.6% to RMB25.9M, driven by lower general and administrative expenses.