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U Power Announces First Half of 2024 Financial Results
UCARU Power (UCAR) Prnewswire·2024-10-08 10:00

Core Viewpoint - U Power Limited reported a significant revenue growth of 595.7% year-over-year, reaching RMB 13.2 million (US1.8million)inthefirsthalfoffiscalyear2024,drivenbyincreasedordersforbattery−swappingstationsastheeconomyrecoversfromtheCOVID−19pandemic[1][2].FinancialPerformance−TotalrevenuesincreasedtoRMB13.2million(US 1.8 million) in the first half of fiscal year 2024, driven by increased orders for battery-swapping stations as the economy recovers from the COVID-19 pandemic [1][2]. Financial Performance - Total revenues increased to RMB 13.2 million (US 1.8 million) in the first half of 2024, a 595.7% increase compared to the same period in 2023 [2]. - Product sales revenues were RMB 12.4 million (US1.7million),accountingfor93.9 1.7 million), accounting for 93.9% of total net revenues, compared to nil in the same period of 2023 [3]. - Sourcing services revenues decreased to RMB 0.1 million (US 10,000), down from RMB 1.4 million in the same period last year, representing 0.6% of total net revenues [3]. - Battery-swapping services revenues increased to RMB 0.7 million (US0.1million),upfromRMB0.5millioninthesameperiodof2023,representing5.5 0.1 million), up from RMB 0.5 million in the same period of 2023, representing 5.5% of total net revenues [3]. Cost and Profitability - Total cost of revenues surged by 1,893.6% year-over-year to RMB 11.9 million (US 1.6 million) due to significant revenue growth and supply chain shifts [4]. - Total gross profit slightly decreased by 0.8% year-over-year to RMB 1.3 million (US0.2million),resultinginagrossmarginof9.8 0.2 million), resulting in a gross margin of 9.8% [4]. Operating Expenses - Total operating expenses rose to RMB 27.7 million (US 3.8 million), an increase of 26.8% from the same period last year [5]. - Sales and marketing expenses increased by 46.5% to RMB 1.5 million (US0.2million)duetohighermarketingcostsforbatteryswappingstations[5].−Generalandadministrativeexpensesincreasedby55.8 0.2 million) due to higher marketing costs for battery swapping stations [5]. - General and administrative expenses increased by 55.8% to RMB 26.2 million (US 3.6 million), primarily due to higher audit and professional service costs [5]. - Research and development expenses decreased by 70.4% to RMB 0.6 million (US0.1million)askeyprojectswerecompleted[6].NetLossandLiquidity−Thenetlossforthefirsthalfof2024wasRMB26.5million(US 0.1 million) as key projects were completed [6]. Net Loss and Liquidity - The net loss for the first half of 2024 was RMB 26.5 million (US 3.6 million), compared to RMB 7.2 million in the same period last year [7]. - Basic and diluted loss per share were both RMB 7.42 (US1.02),comparedtoRMB6.88inthesameperiodlastyear[7].−AsofJune30,2024,thecompanyhadcashandcashequivalentsofRMB40.5million(US 1.02), compared to RMB 6.88 in the same period last year [7]. - As of June 30, 2024, the company had cash and cash equivalents of RMB 40.5 million (US 5.6 million), up from RMB 36.2 million as of December 31, 2023 [7]. Business Developments - On August 5, 2024, the company signed a Memorandum of Understanding with Velo Labs Technology Ltd. to establish a battery infrastructure investment ecosystem in Thailand [8]. - On July 3, 2024, the company signed a Memorandum of Understanding with Pattaya AI Terminal Co., Ltd. to develop green logistics and EV infrastructure in Thailand [8]. - On June 5, 2024, the company announced a strategic collaboration in Portugal to adopt its UOTTA technology and battery swapping station model, aiming to reduce greenhouse gas emissions in the transport sector by 2030 [9].