U Power Limited (NASDAQ: UCAR), a leader in EV power solutions, has announced a staggering 595.7% increase in year-over-year revenue for the first half of 2024, reaching RMB13.2 million. This growth is a testament to the company's innovative UOTTA technology and its comprehensive battery-swapping ecosystem services, which have gained traction among both existing and new customers in China's recovering economy.
The company's strategic pivot towards EV battery power solutions has not only enhanced its competitiveness but also significantly diversified its revenue streams. Product sales, which accounted for 93.9% of the total revenue in the first half of 2024, mark a substantial shift from the previous year, highlighting U Power's focus on charging and swapping-related products. Additionally, the deployment of its second battery-swapping station in March 2023 contributed to an increase in battery-swapping services revenue from RMB0.5 million to RMB0.7 million year-over-year.
Under the leadership of CEO and Chairman Jia Li, U Power has successfully transformed its business model, a move that is expected to further expand its revenue growth potential. CFO Bingyi Zhao also emphasized the company's prudent financial management and strategic investments, which have bolstered its cash and cash equivalents to RMB40.5 million by the end of the first half of 2024.
Beyond its financial achievements, U Power is making strides in global expansion through strategic partnerships. A notable collaboration with Velo Labs Technology Ltd. aims to establish a battery infrastructure investment ecosystem in Thailand, leveraging blockchain technology to create a trading platform for battery bank assets. Similarly, the partnership with Pattaya AI Terminal Co., Ltd. focuses on advancing green logistics and EV infrastructure in Thailand, while the alliance with UNEX to serve ANTRAL in Portugal aligns with the EU's decarbonization goals.
These initiatives reflect U Power's commitment to reducing greenhouse gas emissions in the transport sector worldwide. By addressing critical challenges such as charging time and range anxiety through its battery-swapping technology, U Power is well-positioned to influence the future of EV infrastructure and accelerate the global transition to electric mobility.
