<div id="readability-page-1"><article><div>Advancing Battery-Swapping Solutions in Major International Markets , /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the &#34;Company&#34; or &#34;U Power&#34;), a provider of AI-powered solutions for next-generation energy grids and intelligent transportation systems and, building on its proprietary UOTTATM 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 ExpansionThis 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 DevelopmentWe 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<ul type="disc"><li>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.</li><li>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. </li></ul>South America<ul type="disc"><li>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.</li></ul>Southern Europe <ul type="disc"><li>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.</li><li>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.</li></ul>Looking Ahead to 2026As 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 &amp; CEO Johnny LeeAbout 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 &#34;forward-looking statements&#34;. 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 &#34;may,&#34; &#34;will,&#34; &#34;could,&#34; &#34;expect,&#34; &#34;anticipate,&#34; &#34;aim,&#34; &#34;estimate,&#34; &#34;intend,&#34; &#34;plan,&#34; &#34;believe,&#34; &#34;is/are likely to,&#34; &#34;propose,&#34; &#34;potential,&#34; &#34;continue&#34; 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.comThe Equity Group Lena Cati, Senior Vice President 212-836-9611 / lcati@theequitygroup.com Alice Zhang, Associate 212-836-9610 / azhang@theequitygroup.com SOURCE U Power Limited</div></article></div>

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