U Power enters Singapore market with new electric service provider deal

SHANGHAI - U Power Limited (NASDAQ:UCAR), a small-cap EV infrastructure company with a market capitalization of $17.68 million that according to InvestingPro analysis appears undervalued, announced Monday it has signed an Electric Service Provider agreement to deploy its UOTTA battery-swapping stations and facilitate the sale of compatible electric vehicles in Singapore.

The agreement marks U Power’s entry into the Singapore market, following a similar deal in Macau last month. The expansion comes as the company shows impressive revenue growth of 124% in the last twelve months, though InvestingPro data indicates the company is quickly burning through cash. Under the terms, the local partner will promote the sale and maintenance of U Power’s battery-swapping stations and compatible vehicles, including passenger cars and commercial vans.

Over the next three years, the ESP partner plans to purchase approximately 5,000 compatible battery-swapping vehicles for end users. Additionally, the partner will retrofit its existing fleet of 300 MG EP taxis to be compatible with the battery-swapping technology and will operate U Power’s UOTTA stations.

"Following U Power’s official entry into the Macau market, we are excited to announce another milestone in our strategy of expanding our global footprint," said Johnny Lee, CEO and Chairman of U Power, according to the company’s press release.

The vehicles will be provided by U Power and its partner UNEX EV B.V., a Netherlands-based company that works with OEM partners to design battery-swapping vehicles.

U Power describes itself as a provider of comprehensive electric vehicle battery-swapping solutions using its proprietary UOTTA technology. The company manufactures and sells different models of battery-swapping stations for EVs and provides related services.

The announcement comes as U Power aims to establish what it calls a "mature battery-swapping ecosystem" in the Southeast Asia market through its ESP business model. While the company maintains a healthy current ratio of 1.85 and operates with moderate debt levels, investors seeking deeper insights into U Power’s financial health and growth prospects can access additional analysis through InvestingPro, which offers 11 more exclusive ProTips and comprehensive financial metrics.

In other recent news, U Power Limited has announced a series of strategic developments. The company signed a Memorandum of Understanding with Beijing Foton International Trade to advance battery-swapping compatible electric commercial vehicles in several key markets, including Southeast Asia and South America. This collaboration will focus on integrating U Power’s battery-swapping technology into heavy trucks, buses, and vans. Additionally, U Power has entered into its first Electric Service Provider agreement in Macau, aiming to deploy UOTTA battery-swapping stations and facilitate the sale of compatible electric vehicles. The local partner plans to sell approximately 600 four-wheeled and 5,000 two-wheeled vehicles over three years.

In Thailand, U Power delivered its first fleet of battery-swapping taxis in partnership with Auto Drive EV Public Company Limited and Sumitomo Mitsui Auto Leasing & Service. This initiative aligns with Thailand’s EV 3.5 Policy and aims to enhance sustainable transportation. Meanwhile, in Portugal, U Power has launched a new project with ANTRAL to revolutionize the taxi industry using its battery-swapping technology. The initiative will deploy between 150 and 200 electric vehicles supported by rapid-swap stations, with plans to integrate these stations into existing service locations in collaboration with Galp. These developments highlight U Power’s ongoing efforts to expand its global footprint in the electric vehicle market.

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