U Power signs $113,000 deal with Peru’s Treep Mobility for EV fleet

SHANGHAI - U Power Limited (NASDAQ:UCAR), a $10.8 million market cap company currently trading at $2.06, announced Monday it has signed an initial sales agreement with Peru’s Treep Mobility Group S.A.C. to supply 50 electric two- and three-wheeled vehicles, eight battery-swapping cabinets, and compatible batteries. According to InvestingPro data, the company has demonstrated strong revenue growth of 124% in the last twelve months.

The $113,000 deal follows a successful pilot deployment in Peru earlier this year that demonstrated U Power’s battery-swapping technology. The agreement aims to help Treep Mobility, a leading moto taxi operator in Peru, convert part of its fuel-powered fleet to electric vehicles. While the company’s stock has faced challenges, declining nearly 69% year-to-date, its price-to-book ratio of 0.26 suggests it may be undervalued relative to its assets.

According to the press release, Treep Mobility expects to reduce energy replenishment costs by approximately 30-40% compared to traditional fuel vehicles through this transition.

The agreement includes UNEX-branded vehicles for taxi services and U Power’s proprietary UOTTA battery-swapping technology. Both companies have agreed to gradually expand their partnership through additional procurement agreements for more vehicles in Peru.

Johnny Lee, CEO and Chairman of U Power, stated that the agreement reflects customer satisfaction with their battery-swapping solutions and represents a first step in the company’s expansion into South America.

Peru’s moto taxi market includes over 100,000 registered vehicles, part of what the company describes as a $324 million motorcycle market in the country.

U Power, which began as a distributor of battery-swapping stations, now positions itself as a provider of AI-integrated energy solutions connecting electric vehicles with energy infrastructure.

This article is based on information from a company press release. InvestingPro analysis shows the company maintains a healthy current ratio of 1.85, indicating strong short-term liquidity, though it faces some operational challenges. Subscribers can access 13 additional ProTips and comprehensive financial metrics to better evaluate U Power’s investment potential.

In other recent news, U Power Limited has announced several strategic partnerships and agreements. The company has entered into a memorandum of understanding with Chia Tai Co. and ICBC (Thai) Leasing Co. to develop a drone platform for Thailand’s agricultural sector. This initiative will focus on battery-swapping-compatible drones for various farming operations. Additionally, U Power plans to establish a commercial electric vehicle battery-swapping ecosystem in Hong Kong by building 50 smart battery-swapping stations in collaboration with Shandong Hi-Speed New Energy Group Limited and BOCOM International.

In a move to strengthen its capital structure, U Power has signed a memorandum with IoTex to purchase real-world assets backed by corporate bonds, exploring tokenization solutions with AI technologies. The company is also expanding its reach into the Singapore market through an Electric Service Provider agreement to deploy battery-swapping stations and promote the sale of compatible electric vehicles. Furthermore, U Power has partnered with Beijing Foton to promote battery-swapping compatible electric commercial vehicles in multiple international markets, including Southeast Asia and South America. These developments highlight U Power’s ongoing efforts to expand its technological and geographical footprint in the electric vehicle and related sectors.

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