U Power Ltd. has released its annual financial results for the fiscal year ending December 31, 2024. The company reported a net loss of approximately RMB7.8 million (US$1.1 million). Alongside this, the net cash used in operating activities was approximately RMB73.2 million (US$10.0 million). The difference between the net loss and the net cash used in operating activities was primarily due to non-cash items, including depreciation and amortization amounting to RMB3.1 million. The company has announced plans to expand its battery swap station sales and network services into new markets, including Hong Kong, Southeast Asia, and South America. This expansion strategy is expected to involve increased investments in research and development and brand marketing, which may lead to short-term cash flow volatility. However, U Power Ltd. projects an improvement in the operating expense-to-revenue ratio due to business scale expansion and enhanced brand recognition, which is anticipated to progressively decline and ameliorate net operating cash outflows.
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