U Power Limited Announces US$16 Million Private Placement Subscribed by Existing Shareholders

U Power Limited, a provider of AI-integrated energy solutions, has successfully raised $16 million through the sale of 9,756,100 Class A Ordinary Shares at a price of $1.64 per share. The transaction, which closed on August 3, 2026, involved subscription agreements with four existing shareholders and was conducted in reliance upon Regulation S of the Securities Act of 1933. The proceeds from this fundraising initiative are earmarked to support U Power's expansion into hydrogen energy solutions and to bolster its core operations.

Founded with a focus on electric vehicle (EV) battery-swapping technology, U Power has evolved into a comprehensive energy solutions provider. The company is now developing a multi-energy ecosystem that encompasses not only EV infrastructure but also smart energy management and hydrogen power generation. This strategic pivot aligns with global trends toward sustainable energy and the increasing demand for innovative solutions in the transportation and energy sectors.

The funds raised will primarily be allocated to U Power's expansion into hydrogen energy solutions for intelligent data centers in Thailand. This initiative is part of a broader strategy to enhance the company's offerings in the clean energy space. Additionally, the proceeds will support the expansion of U Power's proprietary battery-swapping solutions across various international markets, including projects for heavy trucks in Thailand, electric vans in Southern Europe, and taxi services in Hong Kong SAR. The management retains discretion over the timing and use of the proceeds, which reflects a flexible approach to capital allocation in response to market opportunities.

The transaction underscores a growing interest in hydrogen energy solutions, particularly as industries seek to reduce carbon emissions and transition to cleaner energy sources. U Power's joint venture with Jiangsu GuoFu Hydrogen Energy Equipment Co., Ltd. positions the company to capitalize on this trend, providing intelligent hydrogen-based power solutions that cater to the evolving demands of digital industries and transportation systems.

Looking ahead, the broader market for clean energy solutions is expected to continue expanding, driven by regulatory support and increasing consumer demand for sustainable practices. U Power's strategic investments in hydrogen energy and battery-swapping technology may enhance its competitive positioning in this dynamic sector. As the company navigates this transition, its ability to execute on its growth initiatives will be closely monitored by investors and industry stakeholders alike.