- Cash and Cash Equivalents of RMB54.9 million (US$8.1 million) as of June 30, 2026; Working Capital of RMB123.3 million (US$18.2 million)
SHANGHAI, Nov. 6, 2026 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of electric vehicle (EV) battery-swapping solutions based on its proprietary UOTTA™ technology, expanding into AI-integrated energy management for transportation systems and energy infrastructure, today announced its interim unaudited financial results for the six months ended June 30, 2026 ("H1 2026").[1]
H1 2026 Financial Snapshot
- Total net revenues were RMB14.8 million (US$2.2 million), a decrease of 16.5% compared with RMB17.7 million in the six months ended June 30, 2025 ("H1 2025").
- Combined net revenues from battery-swapping services, including two-wheeled vehicle battery-swapping services, increased 30.2% to RMB1.3 million (US$0.2 million), compared with RMB1.0 million in H1 2025.
- Gross profit was RMB3.6 million (US$0.5 million), compared with RMB8.4 million in H1 2025. Gross margin was 24.5%.
- Net loss was RMB97.6 million (US$14.4 million), compared with RMB27.4 million in H1 2025.
- Cash and cash equivalents were RMB54.9 million (US$8.1 million) as of June 30, 2026, compared with RMB22.0 million as of December 31, 2025. Working capital was RMB123.3 million (US$18.2 million), compared with RMB65.5 million as of December 31, 2025.
Mr. Jia Li, CEO and Chairman of the Board of Directors of U Power, commented, "In the first half of 2026, we moved our two key battery-swapping projects from planning into execution. In Thailand, our first 30 battery-swapping heavy-duty trucks completed production and testing. In Hong Kong SAR, we commenced foundation works for our first MAXUS MIFA 7 battery-swapping taxi station. Subsequently, in August 2026, the first batch of these vehicles received type approval from the Transport Department, clearing them for sale in Hong Kong SAR.
"Total net revenues declined 16.5% year over year to RMB14.8 million, primarily due to the absence of sourcing services revenue, compared with RMB2.8 million in the first half of 2025, as the Thailand trucks we procured were not delivered to customers until July; and, to a lesser extent, a 3.1% decrease in revenue from sales of battery-swapping stations to RMB13.5 million. Revenue from battery-swapping services increased 30.2% year over year to RMB1.3 million as our two-wheeled vehicle battery-swapping business continued to scale.
"We received RMB207.2 million from the issuance of ordinary shares in the first half and ended the period with cash and cash equivalents of RMB54.9 million and working capital of RMB123.3 million. Our net loss primarily reflected expenses related to our overseas expansion and evaluation of potential investment targets, as well as a provision for expected credit losses and higher interest expenses.
"Our focus for the second half of the year is on converting our project pipeline into deliveries and recurring revenue, including our battery-swapping heavy-duty truck project in Thailand and our battery-swapping taxi project in Hong Kong SAR. Beyond mobility, we are developing AI-driven energy management solutions for intelligent data centers through our joint venture, which we believe can open a new avenue of growth by leveraging our expertise in energy infrastructure. We remain focused on disciplined execution as we work to build U Power into a diversified sustainable mobility and energy solutions provider and create long-term value for our shareholders."
[1] All amounts presented in U.S. dollars (US$) in this news release are based on a conversion rate of RMB6.7851 to US$1.00 for the reporting period ended June 30, 2026 and are provided solely for the convenience of the reader.
H1 2026 Financial Review
Total net revenues were RMB14.8 million (US$2.2 million), a decrease of 16.5% compared with RMB17.7 million in H1 2025, primarily due to the absence of sourcing services revenue, which was RMB2.8 million in H1 2025 and accounted for 15.9% of total net revenues in H1 2025, and, to a lesser extent, lower revenue from sales of battery-swapping stations. No sourcing services revenue was recorded in H1 2026 because the vehicles the Company procured during the period had not yet been sold as of June 30, 2026.
- Net revenues from sales of battery-swapping stations were RMB13.5 million (US$2.0 million), a decrease of 3.1% compared with RMB13.9 million in H1 2025, and accounted for 91.0% of total net revenues.
- Combined net revenues from battery-swapping services, including two-wheeled vehicle battery-swapping services, were RMB1.3 million (US$0.2 million), an increase of 30.2% compared with RMB1.0 million in H1 2025, and accounted for 9.0% of total net revenues. Revenues from two-wheeled vehicle battery-swapping services increased to RMB1.286 million from RMB0.675 million in H1 2025, partially offset by a decrease in revenues from other battery-swapping services to RMB0.039 million from RMB0.343 million in H1 2025.
Gross profit was RMB3.6 million (US$0.5 million), a decrease of 56.8% from RMB8.4 million in H1 2025, primarily due to lower gross profit from product sales, which fell to RMB4.2 million from RMB7.6 million in H1 2025. The decline primarily reflected the absence of sales of high-gross-margin battery-swapping stations by U SWAP, the Company's subsidiary in Thailand, which had occurred in H1 2025, as well as the sale of three additional battery-swapping stations with lower gross margins in H1 2026. Gross margin was 24.5%, compared with 47.3% in H1 2025, primarily due to the aforementioned factors along with higher per-unit procurement costs for the stations sold.
Total operating expenses were RMB83.8 million (US$12.3 million), an increase of 224.1% from RMB25.9 million in H1 2025, primarily reflecting higher general and administrative expenses and a provision for expected credit losses of RMB15.2 million (US$2.2 million), compared with a reversal of RMB3.9 million in H1 2025.
- General and administrative expenses were RMB64.2 million (US$9.5 million), an increase of 161.5% from RMB24.6 million in H1 2025, primarily due to expenditures of approximately RMB11.7 million in identifying potential investment targets, approximately RMB11.2 million of consulting and other fees related to the localization of the Company's business in Thailand, approximately RMB5.1 million of operating and maintenance costs attributable to the Company's new business, and operating and maintenance costs incurred by newly added subsidiaries.
- Research and development expenses were RMB3.3 million (US$0.5 million), a decrease of 4.4% from RMB3.4 million in H1 2025.
- Sales and marketing expenses were RMB1.1 million (US$0.2 million), a decrease of 39.5% from RMB1.8 million in H1 2025, primarily attributable to reduced overseas business activities.
Interest income was RMB1.4 million (US$0.2 million), compared with RMB0.02 million in H1 2025, primarily due to higher interest income from third-party loans. Interest expenses were RMB9.0 million (US$1.3 million), compared with RMB0.2 million in H1 2025, primarily due to increases in loan interest and bank charges.
Net loss was RMB97.6 million (US$14.4 million), compared with a net loss of RMB27.4 million in H1 2025, primarily attributable to expenses related to overseas expansion and evaluation of potential investment targets, as well as a provision for expected credit losses and higher interest expenses. Net loss attributable to the Company's shareholders was RMB75.5 million (US$11.1 million), compared with RMB22.0 million in H1 2025.
Basic and diluted losses per ordinary share were RMB150.11 (US$22.13), compared with RMB1,157.27 in H1 2025, with weighted average ordinary shares outstanding of 502,968 and 19,010, respectively; per-share amounts for both periods have been retrospectively restated for the April 2026 share consolidation (1-for-10, effective April 1, 2026) and the September 2026 share consolidation (1-for-20, effective September 9, 2026).
Cash and cash equivalents were RMB54.9 million (US$8.1 million) as of June 30, 2026, compared with RMB22.0 million as of December 31, 2025, and working capital was RMB123.3 million (US$18.2 million), compared with RMB65.5 million. Total assets were RMB501.6 million (US$73.9 million), total liabilities were RMB104.8 million (US$15.4 million), and total shareholders' equity attributable to the Company's shareholders was RMB401.2 million (US$59.1 million), compared with RMB378.8 million, RMB84.2 million and RMB271.0 million, respectively, as of December 31, 2025.
Year-to-Date 2026 Operational Milestones
- Thailand: Completed comprehensive operational testing and full-stack integration of the battery-swapping system on heavy-duty truck prototypes and completed production of the first batch of 30 trucks for Whale Logistics (Thailand) Co., Ltd., under a strategic partnership signed in December 2025 for the deployment of up to 1,000 battery-swapping electric truck tractors. The first batch arrived in Thailand in June 2026 and was delivered in July 2026. Construction of the first supporting battery-swapping station is under way, and the Company expects to complete its delivery in the second half of 2026.
- Hong Kong SAR: In the first half of 2026, the Company commenced foundation works for the first MAXUS MIFA 7 battery-swapping taxi station at Container Terminal 9, Tsing Yi. The first batch of these vehicles to arrive in Hong Kong SAR received type approval from the Transport Department in August, clearing them for sale in Hong Kong SAR. The Company has been promoting the MIFA 7 battery-swapping taxi and the related battery-swapping operating model to taxi operators in Hong Kong SAR, and has received positive feedback from the industry. The Company expects to commence trial operation of battery-swapping services in Hong Kong SAR and start delivering battery-swap MIFA 7 vehicles to taxi companies by the end of 2026.
- AI-driven intelligent data center (IDC) energy solutions: In April 2026, formed a joint venture with Guofu Hydrogen Energy (Hong Kong) Development Co., Limited (HKSE: 2582) and Cloud Digital Chain Limited to provide AI-driven energy management for IDCs, marking U Power's strategic expansion into the energy management solutions sector. In May 2026, the joint venture entered into an agreement with CEWA Group and Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd. to develop an integrated energy solution for a planned 100MW data center in Rayong, Thailand, beginning with a 3MW pilot project.
- Private placement: In August 2026, after the end of the reporting period, the Company completed a US$16 million private placement of 9,756,100 Class A ordinary shares to four existing shareholders at US$1.64 per share, equivalent to approximately 487,805 Class A ordinary shares at approximately US$32.80 per share after giving effect to the September 2026 share consolidation.
About U Power Limited
U Power is a provider of electric vehicle (EV) battery-swapping solutions based on its proprietary UOTTA™ technology, expanding into AI-integrated energy management for transportation systems and energy infrastructure. The Company has built a scalable network supporting commercial EV operations across multiple international markets.
U Power is now evolving beyond battery-swapping into an AI-driven, multi-energy ecosystem spanning EV infrastructure, smart energy management, and hydrogen power generation. Through a joint venture with a hydrogen technology company, the Company is developing integrated hydrogen-electric solutions for an Artificial Intelligence Data Center (AIDC) and EV charging and battery-swapping infrastructure, providing power support for electric mobility and the global AIDC industry.
For more information, please visit the Company's website: https://www.upower-limited.com/.
Exchange Rate Information
This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") 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 RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, 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, 2026. The Company makes no representation that RMB or U.S. dollar 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. These forward-looking statements include, without limitation, statements regarding the expected delivery of the supporting battery-swapping station in Thailand in the second half of 2026; the expected commencement of trial battery-swapping operations in Hong Kong SAR in the second half of 2026; the conversion of the Company's project pipeline into deliveries and recurring revenue; the development of AI-driven energy management solutions for intelligent data centers, including the planned Rayong data center project and initial 3MW pilot; and the Company's expansion into sustainable mobility and energy solutions and anticipated long-term shareholder value creation. 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
Piacente Financial Communications
Email: ucar@tpg-ir.com
U POWER LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of RMB and US$, except for number of shares)
As of As of As of
December 31, June 30, June 30,
2025 2026 2026
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 21,951 54,868 8,087
Restricted cash 343 347 51
Accounts receivable 22,198 20,825 3,069
Inventories 12,291 10,597 1,562
Advance to suppliers 11,334 42,504 6,264
Contract assets 1,050 1,050 155
Other current assets 17,963 94,967 13,997
Amount due from related parties 60,274 1,552 229
Total current assets 147,404 226,710 33,414
Non-current assets:
Property, plant and equipment, net 8,537 2,599 383
Intangible assets, net 62 29 4
Operating lease right-of-use assets, net 9,873 6,839 1,008
Long-term investments 133,942 134,022 19,752
Refundable deposit for investment 54
Other non-current assets 78,926 131,420 19,369
Total non-current assets 231,394 274,909 40,516
Total assets 378,798 501,619 73,930
LIABILITIES AND EQUITY
Current liabilities:
Bank borrowings 18,972 30,866 4,549
Accounts payable 19,533 20,396 3,006
Accrued expenses and other liabilities 29,915 34,711 5,116
Income tax payables 7,947 7,939 1,170
Advances from customers 3,213 8,409 1,239
Operating lease liabilities - current 1,247 1,070 158
Amount due to related parties 1,037
Total current liabilities 81,864 103,391 15,238
Non-current liabilities:
Operating lease liabilities - non-current 2,362 1,422 210
Total non-current liabilities 2,362 1,422 210
Total liabilities 84,226 104,813 15,448
Commitments and contingencies 5,800
Shareholders' equity:
Ordinary shares * -
Additional paid-in capital 565,069 777,851 114,641
Translation reserve (4,231) (11,374) (1,676)
Accumulated deficit (289,818) (365,321) (53,842)
Total U Power Limited's shareholders' equity 271,020 401,156 59,123
Non-controlling interests 17,752 (4,350) (641)
Total equity 288,772 396,806 58,482
Total liabilities and equity 378,798 501,619 73,930
* On April 1, 2026, the Company effected a 1-for-10 consolidation of its Class A and Class B ordinary shares, and on September 9, 2026, a further 1-for-20 consolidation. Share counts presented reflect the April 2026 consolidation but have not been retrospectively adjusted for the September 2026 consolidation, while per-share amounts have been retrospectively adjusted for both consolidations. Immediately following the April 2026 consolidation, authorized share capital consisted of 500,000,000 ordinary shares of US$0.0001 par value, comprising 399,941,181.2 Class A and 100,058,818.8 Class B ordinary shares; immediately following the September 2026 consolidation, authorized share capital was US$50,000 divided into 19,997,059.06 Class A and 5,002,940.94 Class B ordinary shares of US$0.002 par value each. Ordinary shares issued and outstanding: 497,148 and 25,742,647 as of December 31, 2025 and June 30, 2026, respectively, comprising 438,330 and 25,683,828 Class A ordinary shares and 58,819 and 58,819 Class B ordinary shares.
U POWER LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
For the six months ended June
30,
2025 2026 2026
RMB RMB US$
Net revenues
Product sales 13,899 13,470 1,985
Sourcing services 2,812
Battery-swapping services 1,018 1,325 196
Total net revenues 17,729 14,795 2,181
Cost of revenues (9,338) (11,168) (1,646)
Gross profit 8,391 3,627 535
Operating expenses:
Sales and marketing expenses (1,767) (1,069) (158)
General and administrative expenses (24,571) (64,242) (9,468)
Research and development expenses (3,416) (3,264) (481)
Reversal/(Accrual) of expected credit losses 3,903 (15,220) (2,243)
Total operating expenses (25,851) (83,795) (12,350)
Operating loss (17,460) (80,168) (11,815)
Interest income 16 1,360 200
Interest expenses (248) (9,016) (1,329)
Other income 3,917 1,019 150
Other expenses (13,301) (10,800) (1,592)
Loss before income taxes (27,076) (97,605) (14,386)
Income tax expense (326)
Net loss (27,402) (97,605) (14,386)
Less: Net loss attributable to non-controlling interests (5,402) (22,102) (3,257)
Net loss attributable to the Company's shareholders (22,000) (75,503) (11,129)
Loss per share attributable to ordinary shareholders *
Basic and diluted (1,157.27) (150.11) (22.13)
Weighted average shares used in calculating basic and diluted loss per share *
Basic and diluted 19,010 502,968 502,968
Net loss (27,402) (97,605) (14,386)
Foreign currency translation adjustments - (7,143) (1,053)
Comprehensive loss (27,402) (104,748) (15,439)
* All share and per-share information has been retrospectively restated to reflect the 1-for-10 share consolidation effective April 1, 2026 and the 1-for-20 share consolidation effective September 9, 2026.
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SOURCE U Power Limited
