The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Aulton New Energy Co., Ltd. 奧動新能源股份有限公司 (the "Company") (A joint stock company incorporated in the People's Republi ...

Core Insights - U Power Limited reported a significant increase in net revenues and gross profit for H1 2025, indicating strong operational execution and strategic progress in the growing demand for sustainable transportation solutions [1][2][5]. Financial Performance - Total net revenues for H1 2025 were RMB 17.7 million (approximately $2.5 million), a 34.4% increase from RMB 13.2 million in H1 2024 [5][6]. - Gross profit surged to RMB 8.4 million (around $1.2 million), reflecting a 551.5% increase from RMB 1.3 million in H1 2024, with a gross margin improvement to 47.3% from 9.8% [6][7]. - Operating expenses decreased by 6.6% to RMB 25.9 million (about $3.6 million) compared to RMB 27.7 million in H1 2024, primarily due to lower general and administrative expenses [7][13]. - The net loss for H1 2025 was RMB 27.4 million (approximately $3.8 million), slightly higher than the net loss of RMB 26.5 million in H1 2024 [7][8]. Cash and Assets - Cash and cash equivalents stood at RMB 22.7 million ($3.2 million) as of June 30, 2025, a decrease from RMB 23.4 million at the end of 2024 [8][9]. - Total assets increased to RMB 396.0 million ($55.3 million) from RMB 385.7 million at the end of 2024, while total liabilities rose to RMB 69.1 million ($9.6 million) from RMB 64.7 million [9][10]. Market Strategy and Growth - The company is focusing on expanding its international customer base, with strategic partnerships established to enhance brand visibility and service offerings in overseas markets since 2023 [2][3]. - U Power is actively deepening its ecosystem through partnerships aimed at deploying battery-swapping compatible vehicles and station networks, leveraging its Energy Service Provider (ESP) model [3][10]. - The company is also engaging in Web3.0 initiatives, including Real-World Asset tokenization, to create new growth opportunities in the EV battery swapping sector [3][4]. Recent Developments - U Power inaugurated Hong Kong's first smart battery-swapping station in June 2025 and plans to build 50 more stations [18]. - The company delivered Southeast Asia's first battery swapping taxi fleet in Thailand and signed agreements to deploy battery-swapping vehicles in various markets, including Singapore and Portugal [18][18].