U Power Strengthens Battery Swapping Solutions, Achieves 153.5% Revenue Growth in 2023

SHANGHAI, May 20, 2024 /PRNewswire/ — In the 20-F released by U POWER LIMITED last week, key financial data showed significant growth, with a 153.5% increase in sales revenue and a rise in gross profit margin from 34.1% to 61.6%. This indicates substantial development in the company’s new energy vehicle charging and swapping business, as well as related vehicle sales.

Electric vehicles are poised to become the dominant force in transportation, impacting both traditional automotive powerhouses and emerging markets. Globally, electric vehicle sales exceeded 13 million units in 2023, representing a 35% increase from 2022, with one-third of these vehicles utilized in commercial transportation for passengers and freight. U Power’s UOTTA battery swapping solution specifically targets this market, providing customers with more convenient charging experiences and improved economics through a variety of swapping solutions that are compatible with commercial electric vehicles.

U Power’s UOTTA ecosystem achieved industry-leading full product coverage for commercial vehicles in 2023. This coverage spans a wide range of vehicles from long-haul buses to light passenger vehicles, and container tractors to small trucks. U Power offers customized solutions tailored to specific customer needs.

After achieving sales growth in the Chinese market, U Power is now actively expanding into international markets. The Company has engaged in negotiations regarding collaborations with major freight companies, taxi companies, airports, and other commercial vehicle customers in Europe, North America, and Southeast Asia. The Company will provide customized products and services, utilizing U Power’s UOTTA facilities and compatible electric vehicles for its partners’ transportation operations. Simultaneously, U Power has successfully commercialized its battery swapping solutions, allowing customers to choose swapping modes without concern for performance degradation, environmental impact, or safety issues.

Jia Li, Chairman and CEO of U Power, commented, “I am delighted to report solid financial results for 2023. Strong increases in our revenues and gross margin indicate that the company’s battery swapping solutions for electric transportation hold significant promise and have the potential to generate sustainable profits. In the commercial transportation sector, the most crucial aspect of replacing internal combustion engine vehicles with electric vehicles is the stability and completeness of the supporting infrastructure. The UOTTA charging and swapping ecosystem seamlessly integrates vehicles and charging modes, enabling efficient network management through a cloud platform and delivering tangible benefits to users. Following successful market validation in 2023, I am confident in our future prospects. I firmly believe that our UOTTA charging and swapping ecosystem will capture a larger market share in the rapidly expanding global electric transportation market.”

About U Power Limited

U Power Limited is a vehicle sourcing services provider, with a vision to becoming an EV market player 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 its operation in 2013, the Company has established a vehicle sourcing network in China’s lower-tier cities. The Company has developed two types of battery-swapping stations for compatible EVs and is operating one manufacturing factory in Zibo City, Shandong Province, China. For more information, please visit the Company’s website: http://ir.upincar.com/.


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