U Power Ltd is a vehicle sourcing service provider in China that is transitioning to become an electric vehicle market player focused on its proprietary battery-swapping technology known as UOTTA technology. Since commencing operations in 2013 the company has primarily engaged in brokering vehicle sales between automobile wholesalers and buyers including small and medium-sized enterprise dealers and individual customers in lower-tier Chinese cities. Concurrently U Power Ltd develops and commercializes its UOTTA technology which provides a comprehensive battery power solution for electric vehicles through vehicle-mounted supervisory control units customized vehicle control units a data management platform and battery-swapping stations.

U Power Ltd generates revenue from two primary business segments. The vehicle sourcing business earns revenue through commission-based fees calculated on the purchase price of each vehicle transaction recognized upon delivery to customers. The electric vehicle business derives revenue from sales of UOTTA battery-swapping stations revenue from battery-swapping station operations including service fees and system upgrades and although no revenue has been generated to date planned future sales of UOTTA-powered electric vehicles. The company's customers include automobile wholesalers small and medium-sized enterprise dealers individual vehicle buyers oil and gas station operators transportation businesses ride-hailing service providers and logistics companies primarily located in lower-tier cities in China.

The company operates through the following segments:

• U Power Ltd's vehicle sourcing brokerage segment facilitates vehicle transactions between automobile wholesalers and end-users in lower-tier Chinese cities. The company maintains a network of approximately 30 wholesalers and 100 small and medium-sized enterprise dealers earning commission fees based on vehicle purchase prices upon successful delivery to customers. This business includes sourcing complete vehicles and on occasion facilitating separate transactions for vehicle bodies and batteries when customers request vehicles without batteries.

• U Power Ltd's electric vehicle segment centers on its proprietary UOTTA battery-swapping technology encompassing the development and sale of battery-swapping stations operation of battery-swapping stations and development of UOTTA-powered electric vehicles. The segment currently offers two station models the Titan model for electric heavy trucks and the Chipbox model for ride-hailing passenger vehicles light electric trucks and small logistics vehicles. Revenue is generated from station sales to customers such as oil/gas station operators and transportation businesses as well as from operating battery-swapping stations under service agreements that include battery swapping and system updates. Although UOTTA-powered electric vehicles are under development with manufacturing partners no revenue has been recognized from vehicle sales to date.

U Power Ltd operates in China's competitive vehicle sourcing and emerging electric vehicle battery-swapping markets. In vehicle sourcing the company leverages its established network in lower-tier cities to compete against other service providers. In the battery-swapping sector U Power Ltd faces competition from both electric vehicle manufacturers offering proprietary solutions and independent battery-swapping operators serving multiple brands. The company's competitive advantages include its long-standing vehicle sourcing relationships proprietary UOTTA technology protected by 46 issued patents and 14 pending patent applications in China strategic partnerships with major automakers FAW Jiefang Qingdao Automotive Co., Ltd and HUBEI TRI-RING Motor Co., Ltd and an experienced management team with over two decades of industry expertise. The company targets the growing commercial electric vehicle market which Frost & Sullivan projects will expand at a compound annual growth rate of 18.5% through 2026 driving increased demand for battery-swapping solutions expected to grow at 68.1% annually.

U Power Ltd serves automobile wholesalers small and medium-sized enterprise dealers and individual vehicle buyers through its sourcing business primarily in lower-tier Chinese cities. For its electric vehicle business the company's customers include oil and gas station operators transportation businesses ride-hailing service providers and logistics companies seeking battery-swapping solutions. Specific customer relationships include Quanzhou Xinao for battery-swapping station cooperation and operation Wuxi Aide Electric Technology Co., Ltd for vehicle sourcing and regional dealers Yuncheng Xinfengfei Trading Co., Ltd and Wuhu Huanyu Automobile Co., Ltd for UOTTA-powered electric vehicle distribution.