SHANGHAI, Oct. 8, 2024 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a vehicle sourcing services provider with a vision to becoming a comprehensive EV battery power solution provider in China, today announced its financial results for the six months ended June 30, 2024.

Mr. Jia Li, Chief Executive Officer and Chairman of the Board of Directors of the Company, commented, "In the first half of fiscal year 2024, our business achieved 595.7% year-over-year revenue growth to reach RMB13.2 million. This growth stemmed from increased orders from both existing clients and new customers for our battery-swapping stations as the economy continued to gradually recover following the COVID-19 pandemic. We've been successful in transforming our vehicle sourcing business to provide EV battery power solutions in China. We believe that this shift has enhanced our competitiveness, and we expect it to expand our future revenue growth potential."

Ms. Bingyi Zhao, Chief Financial Officer of the Company, added, "Our financial results for the first half of fiscal year 2024 demonstrate our commitment to responsible financial management while simultaneously making strategic investments for our future growth. Our R&D expenses decreased as we have successfully completed several key projects, and we remain committed to innovation and have strategically allocated resources to new and high-potential research initiatives. Our improved credit management practices have yielded positive results, as we generated an expected gain on credit of RMB0.5 million in the first half, compared to a loss in the same period last year. We believe we are well-positioned with the necessary working capital and strong foundation to support our growth plans, including the launch of operations in multiple international markets, and we are confident in the current financial state of the business."

First Half of 2024 Financial Results

Revenues

Total revenues increased by 595.7% year over year to RMB13.2 million (US$1.8 million) in the first half of 2024.

  • Product sales revenues were RMB12.4 million (US$1.7 million) in the first half of 2024, compared to nil in the same period of 2023, representing 93.9% of total net revenues. This was a result of the Company's ability to sell more battery stations as the economy gradually recovered from the impact of COVID-19 in 2023.
  • Sourcing services revenues were RMB0.1 million (US$10,000) in the first half of 2024, compared to RMB1.4 million in the same period of 2023, representing 0.6% of total net revenues. The decrease was a result of the company's shift in focus towards charging- and swapping-related products.
  • Battery-swapping services revenues were RMB0.7 million (US$0.1 million) in the first half of 2024, compared to RMB0.5 million in the same period of 2023, representing 5.5% of total net revenues. The increase was primarily driven by the Company's operation of a second battery-swapping station beginning in March 2023, which remained operational through the reporting period.

Cost of revenues, gross profit and margin

Total cost of revenues increased 1,893.6% year over year to RMB11.9 million (US$1.6 million) for the first half of 2024, primarily driven by significant revenue growth and strategic shifts in the supply chain. This increase was primarily due to the increased cost of product sales of battery swapping stations.

Total gross profit decreased 0.8% year over year to RMB1.3 million (US$0.2 million) for the first half of 2024, representing a gross margin of 9.8%.

Operating expenses

Total operating expenses were RMB27.7 million (US$3.8 million) for the first half of 2024, representing an increase of 26.8% from the same period last year.

  • Sales and marketing expenses were RMB1.5 million (US$0.2 million) in the first half of 2024, compared to RMB1.0 million in the same period of last year, representing an increase of 46.5%. This increase is primarily due to the increase in marketing expenses for selling battery swapping stations.
  • General and administrative expenses were RMB26.2 million (US$3.6 million) in the first half of 2024, compared to RMB16.8 million in the same period of last year, representing an increase of 55.8%, primarily driven by an increase in audit costs and other professional service costs.
  • Research and development expenses were RMB0.6 million (US$0.1 million) in the first half of 2024, compared to RMB1.9 million in the same period of last year, representing a decrease of 70.4%, primarily due to the decreased UOTTA technology innovation activities related to research and development programs.
  • Expected gain/loss on credit resulted in a gain of RMB0.5 million (US$70,000) in the first half of 2024, compared to a loss of RMB2.1 million in the same period of last year. The decrease was primarily due to the decreased impact of potential uncollectible amounts for advances to suppliers and other current assets, and reflects improved credit management practices and a stronger collection process.

Net loss

Net loss was RMB26.5 million (US$3.6 million) in the first half of 2024, compared with RMB7.2 million in the same period of last year.

Loss per share

Basic and diluted loss per share were both RMB7.42 (US$1.02) in the first half of 2024, compared with basic and diluted loss per share of RMB6.88 in the same period of last year.

Liquidity

As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of RMB40.5 million (US$5.6 million), compared with RMB36.2 million as of December 31, 2023.

Business Developments

On August 5, 2024, the Company announced that it signed a Memorandum of Understanding with Velo Labs Technology Ltd., a global fintech company, to establish a battery infrastructure investment ecosystem in Thailand. This collaboration aims to accelerate the development of battery bank operations within the UOTTA battery-swapping ecosystem.

On July 3, 2024, the Company announced that it had signed a Memorandum of Understanding ("MoU") with Pattaya AI Terminal Co., Ltd. to jointly drive the strategic development of green logistics and electric vehicle ("EV") infrastructure in Thailand.

On June 5, 2024, the Company announced that its UOTTA technology and battery swapping station model is to be adopted in a strategic collaboration between UNEX EV B.V. ("UNEX") and Associação Nacional dos Transportes Rodoviários em Automóveis Ligeiros ("ANTRAL"). ANTRAL is an association of companies in Portugal, representing public passenger road transport companies operating light vehicles designated as taxis. Through their collaboration, UNEX and ANTRAL aim to significantly reduce greenhouse gas emissions in the transport sector by 2030, in line with the European Union's decarbonization targets and Portugal's regulatory requirements for taxi vehicles.

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 Renminbi to U.S. dollars were made at the rate of RMB7.2672 to US$1.00, the exchange rate on June 30, 2024, 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, 2024. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statements 

This press release may contain "forward-looking statements". Forward-looking statements reflect the Company's 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 statement and other filings with the U.S. Securities and Exchange Commission.

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/.

Contact

U Power Limited
Investor Relations Department
Email: ir@upincar.com

Robin Yang, Partner
ICR, LLC
Email: UPower.IR@icrinc.com
Phone: +1 (212) 475-0415

 

 

U Power Limited









Consolidated Income

Statement






















For the

six

months

ended

Jun 30,


For the

six

months

ended

Jun 30,


For the

six

months

ended

Jun 30,





2023


2024


2024





(unaudited)


(unaudited)


(unaudited)





RMB'000


RMB'000


USD'000


Net revenues









Sourcing services



1,435


75


10


Product sales



-


12,389


1,705


Battery-swapping service



461


726


100


Total net revenues



1,896


13,190


1,815











Cost of revenues



(597)


(11,902)


(1,638)











Gross profit



1,299


1,288


177











Sales and marketing

expenses



(1,012)


(1,483)


(204)


General and administrative

expenses



(16,792)


(26,157)


(3,599)


Research and development

expenses



(1,941)


(575)


(79)


Expected credit losses



(2,086)


531


73


Total operating expenses



(21,831)


(27,684)


(3,809)











Operating loss



(20,532)


(26,396)


(3,632)











Interest income



31


7


1


Interest expenses



(497)


(877)


(121)


Other income



16,145


1,435


197


Other expenses



(981)


(685)


(94)


Loss before income taxes



(5,834)


(26,516)


(3,649)











Income tax expense



(1,344)


-


-











Net loss



(7,178)


(26,516)


(3,649)


Less: Net loss attributable

to non-controlling interests



(3,711)


(2,991)


(412)


Net loss attributable to

the Company's

shareholders and total

comprehensive loss



(3,467)


(23,525)


(3,237)











Loss per share









Ordinary shares-basic and

diluted



(6.88)


(7.42)


(1.02)











Weighted average shares

outstanding used in

calculating basic and

diluted loss per share









Ordinary shares-basic and

diluted



504,167


3,168,544


3,168,544

 

 

U Power Limited







Consolidated Balance Sheet























 Jun 30,2024


 Jun 30,2024


 Dec 31,2023



 (unaudited)


 (unaudited)


(audited)



 RMB'000


 USD'000


 RMB'000

Assets







Current assets







Cash and cash equivalents


39,615


5,451


1,927

Restricted cash


900


124


34,312

Accounts receivable


18,553


2,553


15,748

Inventories


5,990


824


5,439

Advance to suppliers


11,251


1,548


10,816

Other current assets


75,966


10,454


94,813

Amount due from related parties


406


56


142

Total current assets


152,681


21,010


163,197








Non-current assets







Property and equipment, net


9,506


1,308


11,764

Intangible assets, net


167


23


201

Operating lease right-of-use assets, net


18,855


2,595


21,656

Long-term investments


143,912


19,803


123,367

Refundable deposit for investment


58,953


8,112


72,774

Deferred tax assets


-


-


-

Other non-current assets


36,865


5,073


36,029

Total non-current assets


268,258


36,914


265,791

Total assets


420,939


57,924


428,988








Equities and liabilities







Liabilities







Current liabilities







Short-term bank borrowing


5,000


688


5,000

Current portion of long-term borrowing


9,000


1,238


9,500

Accounts payable


18,134


2,495


10,231

Accrued expenses and other liabilities


29,085


4,003


35,231

Income tax payables


5,200


716


5,201

Advances from customers


1,299


179


2,537

Operating lease liabilities-current


1,811


249


1,750

Amount due to related parties


291


40


5,431

Total current liabilities


69,820


9,608


74,881








Non-current liabilities







Operating lease liabilities-non-current


5,054


695


5,980

Total non-current liabilities


5,054


695


5,980

Total liabilities


74,874


10,303


80,861

 

Commitments and contingencies


-


-


3,507

 

Equities







Ordinary shares (US$0.0000001 par value,

500,000,000,000 shares 
authorized; 1,243,140 and 3,168,544 issued

and outstanding as of December 31, 2023 and

June 30, 2024, respectively)


-


-


-

Additional paid-in capital


507,807


69,877


479,400

Translation reserve


-


-


446

Accumulated deficit


(196,701)


(27,067)


(173,176)

Total equities for controlling shareholders


311,106


42,810


306,670

Non-controlling interests


34,959


4,811


37,950

Total equities


346,065


47,621


344,620

Total equities and liabilities


420,939


57,924


428,988

 

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SOURCE U Power Limited

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